Green Shipping Corridor Program Clean Vessel Demonstration Stream – Contribution Applicant’s Guide

This Application Guide is specifically for the Clean Vessel Demonstration Stream - Contribution. Further details about the application and evaluation process are included in subsequent sections.

Application period

Current Status: Closed.

Deadline: March 11, 2024, at 11:59 pm PACIFIC standard time.

On this page

• Purpose
• Mandatory Eligibility Requirements
• Merit Evaluation Criteria
• Estimation of Greenhouse Gas (GHG) emission reduction
• Application and Evaluation Process
• Terms and conditions related to funding
• Other information requirements
• Content requirements of funding applications
• Eligible and Ineligible Expenditures
• For more information

Purpose

This Applicant’s Guide explains the objectives, requirements, and process for applying to the Green Shipping Corridor Program’s Clean Vessel Demonstration Stream - Contribution, including what is needed in your funding application.

Mandatory Eligibility Requirements

To be eligible for Clean Vessel Demonstration Stream contribution funding, the following criteria must be satisfied.

Eligible Recipients 

Eligible recipients must be vessel owners and/or operators registered in Canada and one of the following:

• Provinces and territories, including provincial- and territorially owned transportation entities
• Municipalities, including municipally owned entities, and local and regional governments 
• Indigenous governments^{Footnote 1}, tribal councils and other forms of regional government, nationally or regionally representative Indigenous organizations, and/or Indigenous development corporations
• Public sector organizations^{Footnote 2}
• For profit or not-for-profit private sector organizations
• Canada Port Authorities

Eligible Activities

Contribution funding from the Clean Vessel Demonstration Stream will be provided to support activities directly required to undertake the demonstration of low carbon and/or zero-emission ship technology and marine fuels on vessels. More precisely, where a new vessel build is being proposed, or a vessel retrofit, the program will only provide contributions to reimburse the incremental costs of switching from a conventional technology to a low carbon or zero emission solution, for example, the installation of batteries or fuel cells. Activities unrelated to technology switching, that is, general vessel construction or repair and/or maintenance, will not be eligible for funding.

The project must target commercial vessels greater than 150 Gross Tons and be either Canadian-flagged or be operated predominately in Canadian waters by a Canadian entity (as defined in the list of eligible recipients).

Low and/or zero-emission ship technology and marine fuels demonstration projects must include one (or more) of the following: 1) low carbon biofuel, 2) battery electric, 3) plug-in hybrid, 4) fuel cell (different types), 5) methanol, 6) ammonia, 7) wind/solar, or any other innovation deemed meritorious by the Minister or delegated authority.

Other Criteria related to Projects and the Eligibility of Projects

Projects that were completed prior to the launch date of the Program or during the application period for this stream will not be considered for funding.

Projects that have started, including those in the early planning phase, may be considered for funding.

All projects must be completed, including the fulfillment of any reporting requirements, by March 29, 2030.

Merit Evaluation Criteria

Once Transport Canada has confirmed that your proposal satisfies the above mandatory eligibility criteria, where the primary objective of the proposal is directly related to the demonstration of viable, low carbon fuels and/or zero emission technologies on vessels, the individual merits of the proposal will be evaluated based on the following:

Merit Criteria	Characteristics of a Strong Proposal:
Criterion 1: Enables use of low carbon and/or zero -emission ship technology and marine fuels (“fuels/technologies”) by other Canadian marine stakeholders
Assessment based on: how the project contributes to the deployment of low carbon and/or zero-emission fuels/technologies in a Canadian operational environment extending beyond the duration of the proposed project)	A strong project will: demonstrate through an implementable strategy how the project directly contributes to the deployment of the technology in a Canadian operational environment provide indicators which measure the success of the deployment of the fuel/technology within the vessel/owner operator's fleet that can be shared with the Canadian marine industry clearly identify the short, medium and long-term operational impacts of the low carbon and/or zero-emission fuel/technology on the Canadian marine industry and how the project will enable their use by other Canadian marine stakeholders beyond the duration of the proposed project
Assessment based on: how the project will evaluate a broad range of technology-performance parameters of the proposed low carbon and/or zero-emission fuels/technologies (for example, fuel consumption, operational and maintenance costs, potential for commercial sustainability), and not just a single factor, such as cost	A strong project will: Through an evaluation plan, facilitate a comprehensive understanding of a broad range of technology performance parameters and their impact related to the proposed low carbon and/or zero-emission fuels/technologies for other Canadian marine stakeholders Multiple relevant parameters should be included in the evaluation (for example, fuel consumption, operational and maintenance costs, potential for wide commercial adoption) and not be limited to a single parameter
Assessment based on: how the project demonstrates that low carbon and/or zero-emission fuels/technologies have the potential to be feasibly adopted broadly by the Canadian marine industry (for example, could be cost feasible, safely operated, etc.)	A strong project will: demonstrate technical and operational feasibility and viability for deploying the low carbon and/or zero-emission fuel/technology more broadly by the Canadian marine industry demonstrate financial viability for deploying the low carbon and/or zero-emission fuel/technology more broadly by the Canadian marine industry demonstrate how the low carbon and/or zero-emission fuel technology will be safely used/operated by the Canadian marine industry
Criterion 2: Enables measurable emission reductions by 2030 Assessment based on: how effectively the project will contribute to a reduction in GHG emissions from the applicant’s marine fleet by 2030 how rigorous the project methodology is to determine emission reductions (including baseline emissions), how the reductions will be measured, and expected emissions Guidance on how to estimate GHG emission reductions is provided below	A strong project will: determine emission reductions, including a baseline and future emission state of the project's vessel(s), using a consistent methodology that allows meaningful comparisons of emissions over time. be guided by a methodology that is credible, appropriate for the project vessel(s), consistent with best practices, and achieves sufficient accuracy to enable decisions to be made with reasonable assurance as to the integrity of the reported information further demonstrate how this project will contribute to the reduction of GHG emissions for the applicant’s marine fleet by 2030
Criterion 3: Engages partners to ensure all parties implicated along the shipping value chain are involved (for example, vessel owners/operators, other ports, harbors and terminal operators, energy suppliers, utilities, civil society organizations, provincial, territorial, local governments) Assessment based on the degree to which the project: defines the respective roles of each party in the shipping value chain, how each party will be implicated in the project, and how their participation is deemed essential for the success of the project with respect to decarbonization and green shipping corridors includes a governance/decision making framework between the recipient and project partners. shares the risks and opportunities as these relate to the implementation of the project, and apportions project costs among the parties, as appropriate. has support from prospective partners (for example, letters of intent).	A strong project will: be supported by partners engaged within a strong governance structure and decision-making framework with the project lead, whose participation contributes to the success of the project ensure risks and opportunities are shared, as appropriate, between all parties related to project implementation and apportionment of project costs are clearly delineated have demonstrable support from partners
Criterion 4: Disseminates results with the broader public to support the adoption of net-zero emission technologies and low-carbon fuels Assessment based on: how robust the strategy is to disseminate results of the proposed project to the public	A strong project will: disseminate results to the public, identifying the target audience, including all vested parties of the proposed project, but also those along the shipping value chain and the broader marine sector attain significant outreach (for example, website users, mail-out material recipients, workshop participants) through a diversity of media and channels to share information ensure accessibility and openness and maintain the integrity of the information promote and encourage collaboration and information sharing, contributing to the objectives of the program
Criterion 5: Generates environmental benefits other than GHG emission reductions, such as reduced underwater noise, reduced air, or water pollution, as applicable Assessment based on: How well the project demonstrates potential to generate environmental co-benefits, including, as examples: reduce air pollution (for example, criteria air contaminants, black carbon, etc.), particularly in highly populated or ecologically sensitive regions reduce underwater radiated noise, particularly in critical marine mammal habitat reduce ambient noise, particularly in highly populated areas or sensitive environmental regions/locations reduce on-board noise/vibrations, thereby contributing to the safety of the crew and the vessel’s structural health	A strong project will: generate environmental co-benefits demonstrate how the identified environmental co-benefits will be achieved be guided by a methodology that clearly demonstrates how environmental benefits have been achieved (for example: via measurement, monitoring, reporting, etc.)
Criterion 6: Encourages inclusion of Indigenous governments and communities in Canada Assessment based on: the extent to which Indigenous governments and/or communities in Canada are included in the implementation of the project (for example: their role(s), responsibilities, contributions, as appropriate)	A strong project will: directly engage Indigenous governments, organizations and/or communities and facilitate their active participation as partners in the design and implementation of the project include a strategy for engaging Indigenous governments and/or communities not directly involved as partners in the design and implementation of the project include evidence of support and/or involvement from Indigenous governments/communities (for example, letters)
Criterion 7: The applicant’s relevant experience and capacity to undertake the proposed project successfully Assessment based on: how well the applicant has demonstrated their experience and capacity to undertake the proposed project within the identified timelines and budget	A strong project will: be supported by the applicant's track record of successful project delivery for similar types of projects (that is, one or more projects successfully completed) be supported by a highly qualified project team with relevant expertise and experience be led by an excellent governance/management/organizational structure; and sufficient financial support to deliver the project
Criterion 8: How clearly the proposal outlines timelines and budget to demonstrate readiness to implement the project as planned	A strong proposal will: provide a realistic and comprehensive project plan including clear deliverables, budget, timelines, and milestones of the project describe any project dependencies, interdependencies to implementing the project include a detailed presentation of the activities, expenditures and cash flow requirements for the project including a breakdown of the items and expenses demonstrate relationships between objectives and expenditures tied to activities
Criterion 9: How well the performance measurement strategy is described, thorough, feasible, and will yield realistic and useful information	A strong project will: identify clear goals and objectives, and expected outputs and outcomes include a performance measurement strategy with details describing the specific methodology the applicant will use to measure the achievement of each objective include a data collection strategy
Criterion 10: How well the proposal considers material risks and provides appropriate mitigation measures	A strong project proposal will articulate and manage risks relevant to the project by: outlining a risk management strategy, including the identification of 2 or 3 potential risks associated with project delivery/completion/results identifying measures to mitigate the impact of the risks demonstrating the organization's capacity to mitigate risks identified

Estimation of Greenhouse Gas (GHG) emission reductions

To demonstrate how the project enables GHG emission reductions and supports Transport Canada’s assessment of criterion 2 (Enables measurable emissions reductions by 2030), applicants are asked to complete and submit the GHG Workbook referred to below. While guidance is provided to support the completion of the GHG Workbook, it is important to note that applicants are not limited to the material or resources outlined in the “Guide” and “Reference Material”. Applicants may refer to other resources to support the estimation of GHG emission reductions.

Request a copy

Get a copy of the GHG Workbook and the guidance material documents sent to you by email.

1. Clean Technology Adoption GHG Estimation Workbook (“GHG Workbook“): The “GHG Workbook” is designed for applicants to comprehensively document all necessary information for evaluating the anticipated greenhouse gas reductions arising from the proposed projects.

2. Guide to GHG estimation for federal investments in clean technology adoption (“Guide”): This guide offers detailed information on assessing the estimated greenhouse gas reductions related to a proposed project.

3. Reference Material for estimating GHG outcomes from federal investments in clean technology  (“Reference Material”): Designed to direct readers to valuable online resources, this guide aims to assist in estimating greenhouse gas outcomes from a project.

Disclaimer: The GHG Workbook is based on one developed by Innovation, Science and Economic Development Canada for the Strategic Innovation Fund. Transport Canada is not responsible for the content of external links in these documents. 

Please contact gscprogram-programmecmv@tc.gc.ca if you have any questions about these materials.

Application and Evaluation Process

Submitting a funding application

All funding applications must be developed to reflect the Funding Application Template and, once completed, must be signed by an individual who is authorized by the organization to make the representations included in the application.

Missing or incomplete information will slow the review of the application, and/or may result in its rejection.

If a project is selected for funding, the submitted funding application will serve as the source of information to develop the funding agreement between the recipient and Transport Canada, including project description, budget, terms to support the processing of payments, progress reporting, performance measurement as well as how the agreement will be monitored to mitigate risk related to non-compliance with the terms of the agreement. Once the funding agreement is signed, no change to the scope of the project (including budget, timelines, etc.) is possible without the written agreement of Transport Canada.

Funding applications must be submitted by email in PDF to GSCprogram-ProgrammeCMV@tc.gc.ca and must be received by Transport Canada before 11:59 pm PACIFIC standard time on March 11, 2024.

Notes:

• We will not accept any funding application submitted in a format that is not PDF and/or received after the above noted time and date
• Applicants may be requested to clarify or provide additional information that Transport Canada deems necessary to assess eligibility and support the evaluation process

The evaluation process

Upon receipt of the funding application, Transport Canada will review the proposal to ensure that all required information has been submitted and to determine whether the proposal satisfies the Mandatory Eligibility Requirements.

• If not complete, Transport Canada will provide the applicant 5 business days to provide the missing information
• If unable to provide the information within 5 business days, the applicant will be advised whether their application will be considered for funding
• Once deemed complete by Transport Canada, a notice confirming that the department has received a complete proposal will be sent to the applicant

If deemed by Transport Canada to satisfy the mandatory eligibility requirements, the proposal will be evaluated to assess the individual merits of the proposal and ranked accordingly using the Merit Evaluation Criteria. Funding recommendations will be formulated by a Transport Canada committee for consideration and final decision by the Minister of Transport and/or delegated representative.

Notification of results of evaluation process and next steps

Following decision by the Minister or delegated authority, notifications will be sent to all applicants to inform whether their application was selected or not selected for funding. Applicants who were selected for funding will receive an approval in principle letter, which will include the amount of funding to be allocated to their project as well as any related funding conditions. It is important to note that Transport Canada is not obligated to provide funding to a recipient for a selected project until a funding agreement is signed by both parties.

Transport Canada will subsequently work with the successful applicant to develop the funding agreement.

If a project is selected for funding, the submitted funding application will serve as the source of information to develop the funding agreement between the recipient and Transport Canada, including project description, budget, terms to support the processing of payments, progress reporting, performance measurement as well as how the agreement will be monitored to mitigate risk related to non-compliance with the terms of the agreement. Once the funding agreement is signed, no change to the scope of the project (including budget, timelines, etc.) is possible without the written agreement of Transport Canada.

Terms and conditions related to funding

Transport Canada will contribute up to a maximum of fifty percent (50%) of total eligible expenditures of the project. The maximum amount payable will not exceed $2,500,000.

Other sources of funding, including from other levels of Canadian government, will be considered by Transport Canada in determining the amount of funding to be awarded.

The maximum level of total Canadian government funding (municipal, provincial, territorial, and federal) must not exceed 100% of total eligible expenditures for any eligible project.

Upon signing of the contribution agreement, contribution payments may be made towards eligible expenditures that, in the opinion of the Minister or their delegated representative, are reasonable, and required to achieve the objectives and results of the approved project. Refer to the List of eligible and ineligible expenditures for the Clean Vessel Demonstration Stream.

Note: Applicants are solely responsible to obtain the required certifications/approvals for their vessel demonstration projects from all appropriate regulatory authorities 

Transport Canada is not responsible and therefore not obligated to fund any cost overruns related to the implementation of the project. Additionally, Transport Canada’s ability to fund any changes to cashflow requirements, deferring funding requirements to a later year, is based on the amount of funding approved by Parliament in each fiscal year. It is therefore highly recommended to ensure that the cashflow requirements identified in the funding application are reasonable and consider potential risks related to the implementation of the project.

Other information requirements

Funding to be further distributed

Applicants and recipients must inform Transport Canada in advance when contribution funding is expected to be further distributed to one or more persons or entities who take responsibility to carry out responsibilities related to the implementation of the project to provide Transport Canada the opportunity to consider the benefits and risks associated with the delivery of a project by an ultimate recipient.

If funding is to be further distributed, the funding agreement will clearly establish that the recipient is fully accountable for satisfying the terms of the agreement, will maintain independence in the choice of the ultimate recipient, and will not act as an agent of the Government of Canada in making distributions.

Intellectual Property Rights

Any intellectual property derived from an eligible project produced by the recipient or third party in carrying out the obligations under the funding agreement will vest in and remain the property of the recipient or third party. A related clause may be included in the funding agreement.

Where Transport Canada considers it desirable, Transport Canada may seek a restricted license to any intellectual property rights developed by the recipient or third party where Transport Canada considers it necessary for the public good.

Content Requirements of Funding Applications

The following information must be provided by an applicant in their application for funding to allow Transport Canada to assess eligibility as well as evaluate the individual merits of the proposal:

Applicant information:

• Applicant identification
• Organizational profile (legal status and mandate)
• Disclosure of lobbyist involvement
• Disclosure of former public servants or public office holders
• Consent regarding intellectual property, if applicable 

Project Description including:

• project summary, duration, and objectives
• activities, timelines/milestones
• performance measurement strategy
• risks and mitigation strategies
• project management: staff, partners, and collaborators, as appropriate
• explanation of ongoing results beyond the end of the project period

Financial information including:

• proposed project budget and cash flow projection
• evidence of all sources of secured funding (for example, in-kind and third party) sufficient to complete the proposal. Letters from third parties providing funding (including in-kind)

Eligible and Ineligible Expenditures

Eligible expenditures

Eligible expenditures must be directly related to the project, and be both reasonable and required, as determined by the Minister or delegate to achieve the objectives and results for which the project was approved, including: 

• staff salaries and benefits (such as wages; employer’s portion of: Employment Insurance, Canada Pension Plan/Quebec Pension Plan, and disability insurance; private insurance; and benefits paid to staff working on the project)
• professional fees for contracted services (for example: accounting, audit, communications services, feasibility studies)
• storage and warehousing fees
• communication and translation costs
• expenditures related to data analysis, monitoring, collection as well as data validation services
• expenditures related to design, development, preparation, construction, installation, deployment, demonstration, and testing (for example, refueling/charging infrastructure, and port equipment)
• discounted harbour dues or other financial incentives for ships that reduce their emissions or other environmental impacts
• purchase of low carbon intensity fuels
• training costs (e.g., related to new technologies, equipment, software)
• licenses and permits
• rents, leases, leasehold improvements, and related insurance costs
• administrative expenditures (including general administration expenditures, rent, insurance, office equipment rental, and membership fees (no more than 15% of Transport Canada's total contribution for the project)
• travel expenditures (including the costs of accommodations, vehicle rental and kilometric rates, bus, train, airplane or taxi fares, allowances for meals and incidentals-in accordance on the rates and allowances of the Travel Directive of the National Joint Council)
• expenditures for Indigenous consultations, specifically project-related consultation activities pursuant to the Crown’s legal duty to consult, which may include expenditures associated with meetings, travel costs, expenditures related to the preparation of consultation materials, professional fees, communication and translation costs, and administrative expenditures (travel expenditures to be in accordance with the Travel Directive of the National Joint Council)
• other expenditures not included in the categories above, as identified in the application for funding approved by the Minister or their delegated representative, that are directly related to the project and required to achieve the objectives and results of the Program

The above eligible expenditures may, in certain circumstances, include cash-equivalent expenditures associated with in-kind contributions. These expenditures may take the form of:

• goods, services, or assets consumed by the recipient for which costs are incurred and no cash is exchanged
• donations of goods, services, or assets to the recipient, for which no costs are incurred, and no cash is exchanged. While donations are eligible cash-equivalent expenditures that may form a portion of the total project cost, they will not be eligible for reimbursement as the recipient incurs no cost to obtain the good, service or asset. However, donations may form part of the recipient’s share of the total eligible expenditures for a project

In-Kind contributions shall be measured/appraised at fair market value, must be approved in advance by Canada and reflected in the contribution agreement.

Costs incurred after project approval date and before project completion date are eligible.

Ineligible Expenditures

The following are examples of funding that are not eligible for funding:

• expenditures for Provincial Sales Tax and Goods and Services Tax, or the Harmonized Sales Tax, where applicable, for which the recipient is eligible for a rebate, and any other costs eligible for rebates
• the cost of purchasing land and/or buildings, including associated real estate and other fees
• financing charges and interest payments on loans
• expenditures which have been reimbursed under other federal statutes or programs

For more information

Questions to inquiries by applicants are being responded to by way of email. If you would like to be added to the distribution list for this program, please email gscprogram-programmecmv@tc.gc.ca.

Related links

• Funding Application Template