ESSOR Volet 3 — Green Technology and Environmental Footprint Reduction

Insider Tip

Contact an Investissement Québec account manager or call 1-844-474-6367 before applying to validate project scope and expected documentation. This is the only ESSOR stream explicitly targeting environmental outcomes; projects where clean tech is a secondary benefit (e.g., equipment bought primarily for productivity that also reduces GHGs) belong in Volet 2 — and a project that qualifies under volet 2 cannot claim volet 3. Renewable energy and green hydrogen projects qualify for an elevated 75% government aid ceiling, but a stand-alone energy-efficiency project is not eligible under that limb. Budget for the real cost of the money: management fees of at least 0.5% of the aid granted plus annual guarantee fees of at least 0.5% of the guaranteed amount are payable by the business. You also need at least 20% of total project cost from private sources — and usefully, BDC, FAC and FADQ financing counts as PRIVATE for that cumulation test. Check the francisation file early if you have 25+ employees in Quebec, and confirm neither you nor your subcontractors appear on the RENA registry. All documentation must be submitted in French.

Rejection Pitfalls 11

• Project is in an excluded sector (agriculture mainstream, mining, construction other than footprint-reduction projects, real estate, hospitality, broadcasting, management of companies and enterprises, other services)
• Business operates in a prohibited domain (weapons, fossil fuels outside low-carbon transition activities, gambling, violent games or combat sports, sexual exploitation, tobacco or drugs)
• Environmental footprint reduction is a secondary objective rather than the primary driver, or the project qualifies under volet 2

Success Profile

A Quebec manufacturing, food-processing, or industrial SME investing $500K+ in capital equipment to switch from fossil fuels to electrification, install renewable energy generation, implement carbon capture, or transition to circular-economy production methods. The ideal applicant already has revenue exceeding $1M, stable operations, and a documented environmental impact study showing meaningful GHG or resource-use reduction.

Evaluation Criteria

Investissement Québec assesses the magnitude and permanence of environmental footprint reduction, the commercial and financial viability of the applicant, project feasibility and timeline realism, alignment with Quebec's clean growth and GHG reduction priorities, and the quality of supporting documentation. Projects where environmental impact is secondary to productivity gain are redirected to Volet 2. No competitive scoring panel — evaluated on individual merit by an IQ regional director.

Application Steps

Required Documents 7

Eligible Expenses 8

• Capital expenditures for buildings and facilities supporting the environmental project
• Equipment, machinery, and technology systems for clean tech adoption
• Software licenses and digital tools integral to the environmental project
• Engineering, architecture, and professional fees directly related to the project
• Measurement and verification tools for environmental impact tracking
• Working capital (up to 20% of total eligible expenses, under specific conditions)
• Carbon capture, pollution reduction, or circular-economy infrastructure
• Renewable energy generation equipment (solar, wind, green hydrogen systems)

Ineligible Expenses 7

• Environmental compliance work without productivity or footprint-reduction innovation
• Energy-efficiency projects under the renewable-energy limb — the framework's footnote to the volet 3 eligible-project definition states "Les projets d'efficacité énergétique ne sont pas admissibles" for supply, production, storage, distribution and consumption of renewable electricity, bioenergy or renewable heat
• Projects in excluded sectors (agriculture mainstream, mining, construction other than footprint-reduction projects, real estate, hospitality, broadcasting, management of companies and enterprises, other services)
• Projects in prohibited business domains (weapons, fossil-fuel exploration/extraction/production/refining other than low-carbon transition activities, gambling, violent games and combat sports, sexual exploitation, tobacco and drugs)
• Working capital exceeding 20% of total eligible costs
• Projects already started before Investissement Québec authorization
• General operational costs not tied to the clean tech project

Deadline Notes

Rolling intake under the 2025-2027 normative framework. Program ends March 31, 2027 or when budget exhausted. Investissement Québec may suspend new applications without notice. Projects must begin within 6 months of authorization and complete within 5 years (3 years preferred).

Ineligible Organizations

• Agricultural businesses (except greenhouse cultivation, forestry operations, and packaging)
• Mining and extraction companies
• Real estate service companies
• Construction companies, except for projects aimed at reducing the environmental footprint of their activities
• Utilities and public services
• Healthcare and education institutions
• Finance and insurance companies
• Telecommunications companies
• Broadcasting companies
• Management of companies and enterprises
• Other services (except public administration)
• Hospitality businesses (except tourism-linked accommodation)
• Arts, entertainment, and recreation businesses
• Public administration bodies
• Crown corporations and companies controlled directly or indirectly by a municipal, provincial or federal government
• Businesses listed on the Registre des entreprises non admissibles aux contrats publics (RENA), including their project subcontractors
• Businesses under the protection of the Companies' Creditors Arrangement Act or the Bankruptcy and Insolvency Act
• Businesses in prohibited domains: weapons, fossil-fuel exploration/extraction/production/refining (other than low-carbon transition activities), gambling, violent games and combat sports, sexual exploitation, tobacco and drugs

Compatible Programs

Clawback Risk

If the project does not achieve the committed environmental footprint reduction outcomes, Investissement Québec may require partial or full repayment of non-repayable components. Standard loan guarantee obligations apply if the underlying loan defaults. Businesses must remain operational in Quebec throughout the project period.