Issue/Source: Funding program to facilitate the establishment of green shipping corridors in Canada
Location: National
Date: February 2026
Suggested Responses
- Budget 2023 established the Green Shipping Corridor Program, which aims to fund Canadian ports, shippers, vessel owners, operators and other marine stakeholders through partnerships and ambitious projects to decarbonize operations and reduce the impact of marine shipping on surrounding communities and ecosystems.
- The Program includes the Clean Ports Stream, which will provide up to $127.2 million in funding to promote the adoption of commercially available clean technology at ports and terminals and to help ports establish and augment incentive programs to help attract clean vessels.
- The Program also includes the Clean Vessel Demonstration Stream, which will provide up to $22.5 million in funding to support Canadian-led projects that aim to study, test and encourage the adoption of zero-emission, and near zero-emission technologies for the largest emitting vessels operating in Canadian waters.
Background Information
Reducing emissions from marine transportation is a priority for Canada. Transportation accounts for about a quarter of our greenhouse gas emissions. While marine transportation’s emissions are low compared to road transport, action is needed now for the sector to contribute to Canada’s 2030 and 2050 emission targets, and targets set at the International Maritime Organization.
Green shipping corridors are maritime routes between two or more ports where zero-emission fuels and vessel technologies are used. These corridors are an important tool to reduce marine emissions by facilitating partnerships, focusing efforts on defined routes, and accelerating the testing of new technology. In June 2023, G7 Transport Ministers pledged to support the establishment of at least 14 green shipping corridors involving G7 members by the middle of this decade, an increase from the Clydebank Declaration’s target of six corridors globally.
The launch of this program will help fulfill Canada’s commitment under the Clydebank Declaration, signed at COP26 in 2021, when Canada pledged to support the establishment of at least six green shipping corridors globally by the mid-2020s. It also builds on the Canadian Green Shipping Corridors Framework, announced at COP27. The calls for proposals for contribution funding, beginning in 2024-25, under the Clean Vessel Demonstration Stream and the Clean Ports Stream closed on March 11, 2024.
Clean Ports stream
The Clean Ports stream will make investments at ports where there is major marine activity, specifically the Great Lakes and St. Lawrence Seaway as well as ports on the east and west coasts. The program has a funding envelope of
$127.2 million. Successful projects must demonstrate the viability and scalability of net-zero emission technologies and/or low carbon fuels in the context of a green shipping corridor, enable measurable greenhouse gas emission reductions by 2030, and engage partners including fuel suppliers, infrastructure owners and vessel owners/operators.
Transport Canada received 43 project applications requesting a total of $329 million in funding. In September 2024, 12 eligible projects were approved, committing approximately $135.8 million starting in 2024-25. Successful applicants were notified on October 25, 2024. Projects were announced through a series of announcements between October 2024 and February 2025. Of the 12 approved projects, three subsequently withdrew.
Clean Vessel Demonstration stream
The Clean Vessel Demonstration stream will target the largest vessel emitters in the Canadian domestic fleet. Specifically, commercial vessels over 150 gross tons account for the majority of total emissions from the Canadian domestic fleet.
Transport Canada received 19 applications requesting $19.1 million in funding. In August 2024, four eligible projects were approved, committing approximately $8.9 million beginning in 2024-25. All applicants were notified whether their application was eligible for funding or not. Of the four approved projects, one has since withdrawn.