DAIR Green Fund 2026
Funding for Ontario SMEs developing technologies that reduce the environmental footprint of the aerospace sector — 75% of eligible project costs, up to $75,000, for 12-month projects.
The DAIR Green Fund (GF) is a program designed to support research, development and commercialization projects led by SMEs across Ontario, helping them develop products and technologies that can contribute to a decrease of the industry's emissions as well as enhance the economic prosperity of the industry.
Green Fund results & past cohorts Impact report, success stories and previous recipients on dairhub.com (opens in a new tab)About the Green Fund
Objective
The objective of the Green Fund ("GF") is to provide financial support for small- and medium-sized enterprises (SMEs) to help advance their technology readiness level through projects that can ultimately help reduce the environmental footprint of the aerospace sector. The intent is to help projects that will support the industry and its priorities for reducing the environmental impact of aviation.
Who this program is for
The Green Fund is for established Ontario companies developing technology that makes aviation greener. You can apply if all four of these describe your company:
An Ontario small or medium-sized business
- Your company has a place of business in Ontario
- It has at least 2 full-time employees and fewer than 500 employees
- It is not a U.S.-based business (headquartered in the U.S. with fewer than 250 full-time employees in Ontario)
Developing green aerospace technology
- The technology fits one of four themes: Energy / Propulsion, Aircraft Configuration & Systems, Operations, or Advanced Materials
- It helps reduce the environmental impact of aviation, for example reduced emissions, decreased noise levels, and waste reduction
Past the early research stage (TRL 4+)
- Technology Readiness Level (TRL) rates how mature a technology is, from 1 (basic research) to 9 (proven in real-world use)
- Your technology should be at TRL 4 or higher, meaning its components have been validated in a lab, with a plan to bring it to market
Able to fund your share
- DAIR covers up to 75% of eligible costs ($75,000 maximum), with the applicant and partners covering the remaining costs
- Working with partners (other companies, colleges, universities or research centres) is strongly encouraged and prioritized
Full eligibility requirements
Don't meet every requirement? You can still contact the DAIR Director of Innovation to discuss your project.
Funding at a glance
Each approved and contracted project will need to have a project timeline of 12 months in length and will receive 75% project cost support (up to $75,000 CDN) from DAIR. Every company should complete their proposed project before the corresponding duration ends.
Example: for a $100,000 project, DAIR contributes $75,000 and your company and partners contribute $25,000. Above $100,000, DAIR's contribution stays at $75,000, so your share grows — on a $150,000 project you contribute $75,000. More examples
Payments: DAIR pays in three installments (initial, mid-project and upon project completion).
If you're approved
Following this call for proposals, submitted projects will be evaluated by a review committee. Approved applicants will be required to:
- Funding contractEnter into a contract with DAIR for the funding
- Network membershipBecome a DAIR Innovation Network member
- Deliver & reportComplete the funded activities and report back to DAIR by the project deadline.
Acknowledging your funders
Due to support of the Government of Ontario, approved SMEs under the Green Fund will be required to acknowledge the support received from DAIR and the Government of Ontario for the project in any communications, including websites, news releases, social media, success stories and announcements. All media and content must have DAIR and Government of Ontario approval before publishing to the public.
Context
Ontario's aerospace sector
Aerospace is a research-intensive and export-focused industry employing thousands of highly qualified people across Canada. A majority of the companies that make up the sector are small- and medium-sized enterprises (SMEs), vital to the success of the aerospace and aerospace-adjacent sectors. Ontario companies are part of the global supply chain for the majority of commercial aircraft worldwide, in addition to key work on defense platforms, and they work closely with colleges and universities to develop, test and ultimately commercialize new products and technologies.
Toward net zero by 2050
The aerospace industry within Ontario and Canada is a key component to an environmental shift towards a greener and more sustainable future. The discussion and plans put in place today are vital to its long-term success in this regard and to reach the global target of net zero-carbon emissions by 2050. To meet this aggressive goal, the industry will need to advance projects across multiple pillars including Sustainable Aviation Fuels (SAF), advanced materials, new aircraft designs, enhanced operations and manufacturing excellence. DAIR will continue to work with governments and Ontario aerospace stakeholders of all sizes to contribute to this transformation.
- Sustainable Aviation Fuels (SAF)
- Advanced materials
- New aircraft designs
- Enhanced operations
- Manufacturing excellence
This call for proposals
The DAIR Green Fund is a program designed to support research, development and commercialization projects led by SMEs across Ontario, helping them develop products and technologies that can contribute to a decrease of the industry's emissions as well as enhance the economic prosperity of the industry.
Building on the success of previous rounds of the program, DAIR will be supporting a new portfolio of projects through another call for proposals, with support from the Government of Ontario. Projects must have a 12 month timeline and DAIR will support 75% of a project's total eligible costs (up to $75,000 CDN).
DAIR Innovation Network
What the Network offers
The DAIR Innovation Network brings together aerospace and defence companies, post-secondary institutions and ecosystem partners to foster collaboration, accelerate innovation and strengthen Canada's aerospace and defence ecosystem. Through the Network, members gain access to exclusive networking events, workshops, thought leadership activities, collaborative opportunities, strategic introductions, and connections with industry, academia and government. Members also receive ongoing opportunities to showcase their capabilities, identify potential customers and partners and participate in initiatives that support business growth, innovation and competitiveness.
Value beyond the program
While the Green Fund provides targeted support for research, development and commercialization projects led by SMEs across Ontario, membership in the Innovation Network extends that value well beyond the life of the program by creating opportunities for long-term collaboration, new business relationships and continued engagement within Ontario's aerospace and defence community. For many SMEs, Innovation Network membership delivers a strong return on investment through the connections, visibility and collaborative opportunities it provides.
Applicants are encouraged to contact DAIR to learn more about the Innovation Network, its membership benefits and the applicable annual membership fee.
Technology themes
Projects must develop technology in one of these four themes.
Timeline
Key dates for this call for proposals, from launch to the start of funded projects.
- Oct 29, 2026Launch of the Call for Proposals
- Nov 30, 2026Deadline for submission of completed proposals to DAIR (6:00 PM ET)
- Jan 24, 2027Notification to applicants regarding the decision of application
- End of January 2027Deadline for the signature of the Funding Agreement by DAIR and the approved SME
- Feb 1, 2027Project initiation
- Up to 12 monthsProject duration, with mid-term and final reports
All projects are expected to be completed by February 2028. Note that the granting of financial assistance for the project is subject to the signing of a Funding Agreement with DAIR.
How to apply
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Check eligibility
Answer 7 quick yes/no questions to confirm your company qualifies. Read the details.
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Prepare your information
Have your company details, partners, project description, a 12-month work plan, budget, and quantified environmental and economic benefits ready.
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Gather attachments
Collect letters of support from each partner, your current environmental metric measurement, and in-kind expense details if applicable. What to attach.
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Apply online
Complete the 9-step form. Save your progress at any point — we'll email you a secure link to continue later.
Frequently asked questions
Do I need to be a DAIR Innovation Network member to apply?
No. Membership is only required if you are selected — you join when the Funding Agreement is signed. Membership is subject to the annual fee and is renewable each year.
How much funding can I receive?
A non-refundable grant covering 75% of total eligible project costs, up to $75,000. Your company and partners contribute the rest — at least 25% — from funds beyond the scope of regular operations.
Which expenses are eligible — and which are not?
Eligible: salaries; materials, consumables and supplies; equipment purchases or rental (including software); IP management fees; consultant/contractor fees; knowledge dissemination; and platform costs. Not eligible include travel, hospitality, marketing, ongoing operating expenses, land or building purchases, the cost of preparing the application, and costs incurred in the U.S. Read more in the guide
Who receives the funds?
Only the applicant SME. DAIR does not transfer funds to partners — the applicant handles all contractual and financial matters with its partners.
Do I need partners?
Partners are strongly encouraged and DAIR prioritizes partnered projects. A partner can be another SME, a large company, a research centre, college or university, from any location, contributing in cash and/or in kind. DAIR can help you find partners.
What technology readiness level does my project need?
Supported projects should currently be at TRL 4 or higher, with a plan to advance towards commercialization. Read more in the guide
How are proposals evaluated?
A Review Committee of at least five industry and academic experts scores each proposal on environmental benefits (40%), economic impact in Ontario (30%), collaboration (20%), and project planning and management (10%), then makes recommendations to DAIR's Board of Directors. Read more in the guide
When do costs become eligible?
From the date you submit your application. Costs you incur before a decision are at your own risk if the project is not approved.
Can I include in-kind expenses?
Yes, if their value is reasonably assessed and supported by auditable documents. Discuss them with the DAIR Director of Innovation first and attach the details to your application.
How is funding paid out?
Initial, mid-project and upon project completion. Exact dates and amounts are described within the DAIR Funding Agreement. Read more in the guide
What are the reporting requirements?
Regular check-ins with the DAIR Director of Innovation, a mid-term project report, and a final report no later than one month after the project ends. Read more in the guide
Who owns the intellectual property?
You do — DAIR takes no ownership of IP from Green Fund projects. IP must be owned by the applicant, its partners or a Canadian entity, and exploited in Canada, for the duration of the Funding Agreement plus six years. Read more in the guide
Is my application kept confidential?
Yes. Information shared with DAIR is held in confidence and in secure storage, and every Review Committee member signs a non-disclosure agreement.
What if my company doesn't meet every requirement?
Contact the DAIR Director of Innovation to discuss whether an application is possible.
More detail on eligibility, expenses, evaluation and reporting is in the Applicants guide.