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Since 2016, Canada has adopted several climate plans to reduce greenhouse gas (GHG) emissions and meet its commitments under the Paris Agreement. To begin with, the first major initiative was the Pan-Canadian Framework on Clean Growth and Climate Change, developed in collaboration with provinces, territories, and Indigenous peoples.
Subsequently, in December 2020, the government strengthened its commitments with the A Healthy Environment and a Healthy Economy plan, aimed at further reducing pollution while fostering green economic growth. Then, in March 2022, the 2030 Emissions Reduction Plan was launched, targeting a 40 to 45% reduction in emissions from 2005 levels by 2030. Importantly, this plan builds on previous measures and outlines a path toward net-zero emissions by 2050.
In parallel, clean technologies—including innovations that improve energy efficiency, reduce pollution, and promote renewable energy—are central to this transition. To this end, federal and provincial governments have implemented various funding programs to support this strategic sector.
Against this backdrop, this article provides an overview of the main initiatives in place as of 2025.
The Canadian federal government offers a variety of funding programs to support the transition to a low-carbon economy. In fact, these programs, managed by several departments and agencies, aim to support innovation, decarbonization, and the adoption of clean technologies through grants, tax credits, and repayable contributions.
The Clean Investment Tax Credit (CITC) is a federal program for businesses investing in projects that support the transition to net-zero. It is a refundable tax credit available for specific types of investments made in Canada, including:
The Energy Innovation Program (EIP) provides financial support for the research, development, and demonstration of clean energy technologies. Its primary goal is to accelerate the transition to a low-carbon economy by funding projects with measurable environmental potential. Furthermore, grants vary depending on the nature and scale of the project and are awarded to businesses, utilities, industry associations, or legally incorporated research organizations in Canada.
In addition, the Green Freight Program offers grants covering up to 50% of eligible costs to help transportation companies reduce fuel consumption and GHG emissions. Specifically, eligible projects include energy assessments, mechanical upgrades, training, and the acquisition of low-emission vehicles.
The Net Zero Accelerator provides grants and loans covering up to 50% of eligible costs for large-scale industrial decarbonization projects. Actually, this program targets large companies in high-emission sectors and focuses on transformative projects capable of delivering significant short-term emission reductions.
The Low Carbon Economy Fund supports projects that reduce GHG emissions while promoting clean growth and community resilience. It includes two components: the Low Carbon Economy Challenge and the Leadership Fund. Grants vary based on project scale and are awarded to businesses, municipalities, and organizations, with rigorous evaluation of avoided emissions.
The Incentives for Medium- and Heavy-Duty Zero-Emission Vehicles (iMHZEV) Program offers rebates of up to $200,000 per vehicle for the purchase or lease of zero-emission vehicles. Indeed, the program aims to accelerate the adoption of clean transportation technologies in commercial and municipal sectors, focusing on vehicles manufactured in Canada or in countries with a free trade agreement with Canada.
The AgriInnovate Program offers repayable contributions of up to $5 million to support the commercialization, demonstration, and adoption of innovative technologies in the agri-food sector. The program aims to enhance competitiveness.
The Quebec Economic Development Program (QEDP) provides grants and loans covering up to 50% of costs for SMEs and up to 90% for non-profits. In fact, it supports projects that promote entrepreneurship, business performance, and regional investment, including a specific component for clean technology adoption.
The Wah-ila-toos Program funds clean energy projects in Indigenous, rural, and remote communities. Therefore, it supports the installation of renewable energy systems and improvements in energy efficiency, aiming to reduce diesel use and promote energy autonomy. Grants are adjusted based on the scope and impact of the project.
In addition to federal measures, Canadian provinces also offer a range of support programs tailored to their specific economic, environmental, and industrial contexts. These provincial initiatives aim to strengthen the impact of climate policies by addressing territory-specific needs while promoting local innovation and energy transition.
This program supports Quebec-based businesses in energy efficiency and greenhouse gas (GHG) reduction projects. It offers grants covering up to 75% of eligible costs for initiatives such as process optimization, heat recovery, or building envelope improvements. The goal is to reduce fossil fuel consumption and improve companies’ environmental performance. It primarily targets the industrial, commercial, and institutional sectors.
Technoclimat supports innovative projects aimed at reducing GHG emissions in Quebec. It can provide up to $3 million per project to support the development, demonstration, or implementation of clean technologies. The program targets businesses, institutions, and organizations looking to test innovative solutions in renewable energy, energy efficiency, or GHG reduction. It fosters the emergence and commercialization of promising technologies.
This program encourages energy conversion to residual forest biomass. It supports projects that replace fossil fuels with bioenergy, particularly in the industrial, institutional, and agricultural sectors. Financial assistance covers studies, equipment, and biomass heating system installations. The goal is to leverage local resources, reduce GHG emissions, and stimulate regional economies.
Stream 3 of the ESSOR program supports investments in clean technologies. It offers loans, loan guarantees, and grants to help businesses adopt greener processes. The program aims to enhance business competitiveness while reducing environmental impact. It is open to companies of all sizes seeking to modernize facilities or develop sustainable innovations.
The Grand V program provides term loans to finance sustainable innovation projects. It targets businesses investing in clean technologies, energy-efficient processes, or low-impact products. Funding is tailored to project needs and aims to accelerate the transition to a green economy. It supports transformative initiatives that contribute to climate change mitigation.
The Écoleader Fund helps businesses integrate eco-responsible practices and clean technologies. It offers personalized support and financial aid for specialized consulting services. The program aims to strengthen companies’ sustainability skills and support their ecological transition. It is available to SMEs across all sectors in Quebec.
Énergir offers grants to businesses that reduce GHG emissions or improve energy efficiency. Assistance is calculated based on avoided CO₂ emissions or energy savings. Eligible projects include process optimization, energy conversion, and installation of high-performance equipment. The program supports Énergir clients in their energy transition.
Hydro-Québec provides grants for energy efficiency and technology demonstration projects. The Efficient Solutions program targets commercial, institutional, and industrial buildings, while Innovative Projects supports emerging technologies. The goal is to reduce electricity consumption and promote energy innovation. Funding can cover studies, equipment, and construction work.
The Écoemballage+ program supports initiatives aimed at reducing pollution and adopting eco-friendly packaging. It helps businesses transition to sustainable packaging solutions. Grants cover studies, testing, and implementation of concrete solutions. The program is open to businesses, municipalities, and organizations.
These programs support the adoption of clean technologies in agriculture. Prime-Vert offers grants for agri-environmental practices, while the Agricultural Investment Fund provides loans for structuring projects. Eligible initiatives include fertilizer management, pesticide reduction, energy efficiency, and waste valorization. The goal is to make agriculture more sustainable and resilient.
This $400 million, four-year fund aims to attract private investment in Ontario’s key sectors: manufacturing, life sciences, and technology. It supports economic growth and job creation through loans or grants, with no maximum funding limit. Funding is provided as a mix of loans and grants.
This program offers up to $150,000 in order to support collaborative projects between academia and industry that aim to solve sector-specific problems and accelerate the commercialization of intellectual property. Moreover, it supports efforts to bring research results to market within three years of project completion.
This program offers loans ranging from $150,000 to $500,000 to innovative SMEs in Southern Ontario to support their growth. Funding covers commercialization, product development, market expansion, or adoption of new technologies. Loans are repayable without penalty.
This program aims to overcome growth barriers in the zero-emission vehicle (ZEV) sector. ARC supports British Columbia-based companies by investing in product development and commercialization activities through long-term pilot projects.
The Ignite Program provides up to $300,000 in funding for applied research projects in natural resources, science, and engineering. Projects must secure external funding equal to twice the amount requested. Only organizations based in British Columbia are eligible.
CICE is an independent, non-profit organization that funds the development and scaling of clean energy solutions. It periodically launches targeted calls for proposals, such as a recent one focused on wildfire mitigation technologies.
InBC Investment Corp is a Crown corporation managing a $500 million fund that invests in high-growth potential businesses in British Columbia. The goal is to stimulate the economy by attracting public and private investment to support the expansion of local companies.
This fund supports British Columbia’s energy and environmental priorities by financing clean technology and energy efficiency projects. Since 2008, over $114 million has been invested in pre-commercial projects. A new application intake is scheduled for spring 2025.
This program supports Alberta-based companies in developing technologies that convert CO₂ into high-value commercial products. It aims to reduce environmental impact, support the energy transition, create clean tech jobs, and engage industry stakeholders. Each project can receive up to $2 million, covering 25–50% of costs, with required co-funding in cash or in-kind. Projects must demonstrate clear value for Alberta, even if applicants are not based in the province. Collaboration with industry, researchers, and communities is encouraged.
ERA supports innovative and sustainable technology projects that reduce GHG emissions. It focuses on key areas such as carbon sequestration, next-generation fuels, energy efficiency, industrial transformation, and the circular economy. ERA offers two types of financial support: (i) technology development funding and (ii) energy savings-focused funding for businesses.
This program aims to accelerate the deployment of carbon capture, utilization, and storage (CCUS) technologies by offering a grant equal to 12% of eligible capital costs. Operators and developers of storage sites can apply for pre-approval. Projects must include CO₂ capture, preparation, compression, transport, storage, or utilization. Grants are disbursed in three annual installments starting from the first year of operation.
This program supports the development of projects aligned with Alberta’s Hydrogen Roadmap. It aims to integrate clean hydrogen into the provincial energy system, including mobility, heating, power generation and storage, and industrial applications. The goal is also to position Alberta as a global leader in clean energy exports.
Canada is positioning itself as a committed player in the energy transition by offering an impressive array of funding programs at the federal, provincial, and even municipal levels. In this context, the initiatives presented in this article represent only a snapshot of the many opportunities available to businesses seeking to reduce their carbon footprint and adopt more sustainable technologies.
Nevertheless, navigating this complex ecosystem of grants can be challenging without guidance. For this reason, our innovation funding experts offer tailored support—from mapping available funding to preparing complete grant applications. By leveraging this expertise, businesses can maximize their chances of securing the financial resources needed to bring their energy transition projects to life.
