LOCATION: National
ISSUE/SOURCE: Funding program that facilitates the establishment of green shipping corridors in Canada
DATE: September 2024
SUGGESTED RESPONSES
- Reducing emissions from marine transportation is a priority for Canada.
- Budget 2023 included funding over 5 years to establish a Green Shipping Corridor Program to reduce the impact of marine shipping on surrounding communities and ecosystems.
- The Program, launched on December 1, 2023, includes two streams:
- the Clean Ports Stream, which will provide up to $127.2M in funding for infrastructure at ports and terminals contributing towards the adoption of commercially available clean technology, as well as funding to ports to establish and augment incentive programs to help attract clean vessels; and
- the Clean Vessel Demonstration Stream, which will provide up to $22.5M 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.
- Recipients will be notified of funding outcomes in late spring or early summer.
SUPPLEMENTARY RESPONSES
On Domestic and International Engagement
- As a signatory to the Clydebank Declaration, Canada is committed to supporting the establishment of green shipping corridors. Canada has found value in collaborating with global partners to help to advance our shared goals to decarbonize the marine sector.
- At COP27 in November 2022, Canada announced the Canadian Green Shipping Corridors Framework. To ensure consistent implementation of green shipping corridors, the Framework provides guidance to empower all parties to work together to eliminate greenhouse gas emissions and address the climate crisis. The Canadian Framework is aligned with the U.S. Green Shipping Corridors Framework released in April 2022.
- Also, at COP27, Canada and the U.S. announced the Great Lakes – St. Lawrence Seaway Green Shipping Corridor Network Initiative. Through this initiative, we have worked with our counterparts in the U.S. to convene stakeholders from both sides of the border to solicit voluntary support to establish green shipping corridors throughout this critical region.
- 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 6 corridors globally.
- At COP 28 in December 2023, Canada announced the Global Memorandum of Understanding on Multi-Port Multi-Jurisdiction Green Shipping Corridors’. This Memorandum extending from Canada’s west coast, aims to facilitate the establishment of a multi-port green shipping corridor to key ports in Asia and the Middle East. This Memorandum enables the formation of strategic partnerships and opens the dialogue on developing a green shipping corridor. The announcement also demonstrates the importance Canada places on the economic and environmental benefits that a green shipping corridor can bring – domestically and beyond our borders.
On support for ports and harbours of all sizes
- 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.
- 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.
On support for vessels greater than 150 gross tonnes
- 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 has made other research funding opportunities available to support the demonstration of clean technologies for smaller vessels, outside of the Green Shipping Corridor Program.
On which fuels and technologies are eligible for funding under the program
- Eligible technologies and fuels include the following: low carbon biofuel, battery electric technologies, plug-in hybrid, fuel cell, hydrogen, methanol, ammonia, wind/solar. Liquified natural gas is not eligible.
BACKGROUND INFORMATION
- Reducing emissions from marine transportation is a priority for Canada. Transportation accounts for about a quarter of our greenhouse gas emissions – and 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.
- As part of our efforts to reduce emissions and support innovation in the marine sector, we launched the new Green Shipping Corridor Program. This new program will fund Canadian ports, shippers, vessel owners and operators, and other marine stakeholders, to encourage partnerships and advance ambitious projects to decarbonize operations.
- 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.
- The launch of this program will help fulfill Canada’s commitment under the Clydebank Declaration, signed at COP26 in 2021, when we 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.
- On January 22, 2024, the call for proposals for grant funding, amounting to $2.5M in 2023-24, under the Clean Vessel Demonstration Stream closed. Transport Canada received 19 applications amounting to $2.3M in funding. Fourteen (14) of the applications, amounting to $1.7M, were deemed eligible and approved. All applicants were notified whether or not their application was eligible and selected for funding and payments have been issued to successful applicants.
- The call 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.