The Green Shipping Corridor Program (Program) launched on December 1, 2023. The Program funds projects that support green shipping corridors and efforts to cut carbon emissions in the marine sector along the Great Lakes, the St. Lawrence Seaway and Canada’s east and west coasts by:
- removing barriers to using equipment and infrastructure that reduce emissions;
- encouraging industry partnerships and investments to speed-up the use of technologies and infrastructure that reduce emissions;
- reducing risks for investments in low-carbon and zero-emission ship technology and marine fuels for Canadian ships; and,
- helping Canadian vessel owners/operators plan and use new low carbon and zero-emission ship technologies and marine fuels.
The Program uses two streams to assign funding.
The Clean Ports Stream is providing up to $127.2M in contribution funding over 4 years from 2024 to 2028 for projects that focus on:
- improving onshore equipment and infrastructure at ports and terminals (for example shore power); and,
- helping ports create or improve incentive programs to help attract clean vessels.
The Clean Vessel Demonstration Stream is providing up to $22.5M in grant and contribution funding over 5 years from 2023 to 2028 for projects that focus on:
- advancing the real-world use of low- and zero-emission vessel technologies;
- addressing barriers that could prevent clean vessel innovation from being adopted in Canada; and,
- building the Canadian industry's ability to use technologies that reduce emissions on their vessels.
Summary
As required by the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, a strategic environmental assessment was done to evaluate the environmental effects of the Green Shipping Corridor Program. The assessment considered the environmental goals and targets of the Federal Sustainable Development Strategy.
The strategic environmental assessment found that the Program will likely have a positive effect on the environment. This impact is mostly through reducing greenhouse gas emissions by replacing conventional marine technology with sustainable options. This aligns with the Federal Sustainable Development Strategy’s goals. Negative impacts on the environment will be limited to those related to building or launching equipment.
Environmental effects
We expect the Program will have positive effect on the environment. It will reduce emissions by helping recipients speed-up their investments in clean vessel and port technology. For example, the funding could help a port replace fossil-fuel powered equipment with electric equipment—which supports Canada’s emissions-reductions goals and fight against climate change. The Program’s investments will have other positive impacts on the environment, like improving air quality in port communities and reducing pollution’s impacts on marine ecosystems.
We have not assessed the exact emissions reductions yet because they depend on the types and number of projects we approve.
Ties to the Federal Sustainable Development Strategy
The Green Shipping Corridor Program will support 3 goals under the Federal Sustainable Development Strategy. It will:
- encourage inclusive and sustainable economic growth in Canada (Goal 8) by helping deploy new, clean technology in Canada’s marine sector;
- foster innovation and green infrastructure in Canada (Goal 9) by funding projects that research new green technology and deploy new sustainable and resilient equipment at Canadian ports; and,
- take action on climate change and its impacts (Goal 13) by funding projects that cut emissions compared to conventional technology.
Enhancement and mitigation measures
We identified a number of steps that could reduce the potential negative environmental impacts of building marine infrastructure. For example, the effects of construction could be minimized by following regulations and using specific measures for each project. The positive environmental impacts could also be improved by working with other federal environmental programs and following industry best practices.
Follow-up and monitoring
Applicants who receive funding for projects under the Green Shipping Corridor Program will need to report on the progress of their project. They will also need to meet other reporting requirements as part of their grant or contribution agreement.