Does Your Agri-Food or Agri-Tech Project Qualify as Clean Technology?

Many agri-food and agri-tech projects help farms and processors work better. But not all of them count as clean technology when it comes to government grants. This label matters. Programs like the Agricultural Clean Technology (ACT) Program: Research and Innovation Stream only fund projects that clearly lower greenhouse gas (GHG) emissions or reduce other environmental problems—not just those that make things faster or cheaper.

If you are working on a new farm product, processing tool, or digital ag idea, this guide will help you figure out if your project meets Canada’s clean technology rules and is likely to get funding.

What “Clean Technology” Means in Canadian Agriculture

In Canadian agri-food programs, clean technology is not just a buzzword. It has a clear meaning tied to helping the environment.

Under the Agricultural Clean Technology Program: Research and Innovation Stream, projects must:

Show they can reduce GHG emissions, energy use, or other harm to the environment in a way that can be measured
Help agriculture or food processing grow in a way that is sustainable
Be at the pre-market or early market stage—not products that are already fully commercial and widely sold

Some examples that often fit:

Tools that cut methane or nitrous oxide emissions
Machines or systems that use less energy or give off fewer emissions
New ways to use less synthetic fertilizer or chemicals
On-farm or processing ideas that lower fuel, electricity, or water use

Projects that only save money or boost crop yield, but do not clearly help the environment, usually do not count as clean technology.

How Funders Decide If Your Project Is Clean Tech

Reviewers look at the real-world impact of your project. For the ACT Research and Innovation Stream, your application needs to show three main things.

1. A Clear Environmental Problem

Your proposal should name the exact problem your project will fix, such as:

High GHG emissions from animals or fertilizer
Food processing that uses too much energy
Too much waste, water loss, or runoff

General claims like “better for the planet” are not enough.

2. A New Technology or Approach

Projects must involve developing new technology or making small changes that lead to better results, such as:

Research and development (R&D)
Building and testing a prototype
Running a pilot or demonstration

The ACT R&I Stream is for projects that are not yet widely sold or used. It does not fund routine equipment purchases.

3. Measurable Environmental Results

This is where many applications fall short. Funders want:

Numbers showing GHG reductions (even estimates or models)
Lower use of energy, fuel, or farm inputs compared to how things were before
Proof from tests, pilots, or past research

If you need help matching your project to the right clean technology programs, tools like GrantHub’s eligibility matcher can help you compare options based on your project’s focus and goals.

Key Eligibility Rules Under the ACT Research and Innovation Stream

Here are the main rules from the program guidelines.

Who Can Apply

Eligible applicants include:

For-profit agri-food or agri-tech businesses
Not-for-profit groups and cooperatives
Indigenous organizations

Not eligible:

Schools or universities
Individuals
Federal or provincial government groups

Project Location

All work must be done in Canada

Funding Scope

Covers research, development, demonstration, and early commercialization
R&D activities are usually non-repayable
Some funding for commercialization may need to be paid back
The ACT Program can provide up to $2 million per project depending on the activities and project stage

How Other Clean Ag Programs Compare

The ACT Program is a federal program focused on new technology and research. Some provinces have their own programs to support clean agri-food projects.

For example, Ontario’s Sustainable New Agri-Food Products & Productivity Program – Clean Tech in Agri-Food offers up to $10,000 (covering 50% of project costs) for businesses in northern Ontario that lower their environmental impact or carbon footprint.

The main difference: ACT supports new technology development, while some regional programs help businesses adopt new tools or make small changes that improve the environment.

Common Mistakes to Avoid

Calling basic efficiency gains “clean tech” without proof
Saving time or money is not enough unless you can show it also helps the environment.
Applying with a product that’s already on the market
The ACT Research and Innovation Stream is for projects that are not yet fully commercial.
Not including estimates for emissions or environmental benefits
Even rough numbers are better than none.
Assuming all farm projects are “clean” by default
Reviewers want clear evidence, not just claims.

Frequently Asked Questions

Q: Does precision agriculture software count as clean technology?
It might, if you can show how it reduces things like fertilizer, fuel, or water use, and you have numbers to back it up. Just being more productive is not enough.

Q: Are Indigenous agri-food groups allowed to apply?
Yes. Indigenous organizations that are legal entities and work in Canada can apply for the ACT Research and Innovation Stream.

Q: Is ACT funding repayable?
Money for research and testing is usually non-repayable. Some funding for early sales may need to be paid back, depending on the project.

Q: Can I combine ACT funding with other grants?
Yes, you can “stack” funding, but you must follow the total government funding limits and any program rules.

Q: Do equipment purchases count as clean technology projects?
Only if the equipment is part of a bigger project focused on research, testing, or demonstration, and you can show it helps the environment in a way you can measure.

Next Steps

If your agri-food or agri-tech project can show clear environmental benefits, uses new technology, and has results you can measure, you may be ready for clean technology funding. GrantHub tracks hundreds of current grant programs across Canada—including both federal and regional clean ag funding—so you can quickly see which ones fit your project before you apply.

Does Your Agri-Food or Agri-Tech Project Qualify as Clean Technology?