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Low Carbon Economy Challenge

Program Category: Clean Energy
Program Sub-Category: Energy Efficiency (Housing / Buildings)
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Status: Closed

Funder

Environment and Climate Change Canada

Deadline Details

Deadline to submit applications was February 8, 2024, 8:00 pm Eastern Standard Time (EST).

Funder Organization Type

  • Federal Government

Launched in 2017, the Government of Canada’s Low Carbon Economy Fund (LCEF) leverages Canadian ingenuity to reduce Canada’s GHG emissions, generate clean growth, build resilient communities, and help create jobs for Canadians. The LCEF supports the Government of Canada’s plans to achieve GHG emissions reductions in 2030 and goals for net-zero emissions by 2050.
In 2022, the Government of Canada released the first 2030 Emissions Reduction Plan (ERP) issued under the Canadian Net-Zero Emissions Accountability Act. The 2030 ERP includes a recapitalization of the LCEF starting in 2022-23.
The Challenge Fund provides funding to a wide range of applicants to support the deployment of proven, low-carbon technologies that will result in material GHG emissions across sectors. There is now only one stream under the Challenge Fund. There will no longer be multiple streams (e.g., Champions and Partnerships).

Eligible Community

  • Regional entities delivering municipal type services, local or regional municipal governments established by or under provincial statute or territorial statute, or regional municipal organizations
  • First Nations, Métis and Inuit communities; First Nations, Métis and Inuit development corporations; Indigenous organizations; modern land claim organizations; band or tribal councils; modern treaty signatories; and self-governing First Nations
    • Please note that an Indigenous organization is defined as an Indigenous governing body or any other entity that represents the interests of an Indigenous group and its members

Funding Stacking Restrictions

Yes

See the Applicant Guide for stacking limits. 

Other Eligible Applicants

Indigenous Economic Agencies
Indigenous Organizations
Non-governmental Organizations / Not-for-Profits
Academic Institutions


  • Canadian public or private institutions dedicated to education and/or research, which may include:
    • Colleges, universities, or other post-secondary educational institutions
    • Research institutes
  • Canadian not-for-profit non-governmental organizations, such as provincial and territorial municipal associations, professional and industry associations

Range of Funding Available per Project

  • Over $1 000 000

Description of Funding

Every project must request a minimum of $1,000,000 in federal funding through this intake.

Eligible Costs

Example eligible project types are:
 
Energy Efficiency
  • Stationary or mobile equipment retrofits for energy efficiency
  • Building envelope upgrades
  • Heat recovery
Fuel Switching
  • Stationary or mobile equipment retrofits for fuel switching
Energy Production
  • Clean electricity production for own use
  • Low-carbon fuel production for own use
  • Cogeneration or combined heat and power production
  • District energy and/or heating
Non Energy Related
  • Organics diversion
  • Landfill gas capture
  • Industrial process emissions changes
  • Industrial product use changes
Carbon Capture
  • Carbon capture and storage
  • Carbon capture and utilization
Please see the Applicant Guide for a full list of eligible activities.

Ineligible Costs

Several project activities are ineligible for funding. These are:
  • LED (light-emitting diode) lighting retrofits
  • Fuel transportation infrastructure
  • Electricity transmission and distribution infrastructure
  • Public transit infrastructure and vehicles
  • Zero-emission vehicle (ZEV) infrastructure
  • Purchase of on-road zero-emission vehicles (ZEVs)
  • Active transport (e.g., cycling or pedestrian infrastructure)
  • Carbon capture utilization for enhanced oil recovery
  • New fossil-fuel combustion equipment, including new cogeneration/combined heat and power production
  • Enhancing carbon sinks (e.g., tree-planting, carbon soil sequestration)
  • Activities where GHG reductions are based solely on goods and services sold by the applicant for market consumption (i.e., where GHG reductions can only be realized upon purchase, installation and/or use of the product by a third party who is a customer rather than a required partner of the project). This includes the production of electricity or low-carbon fuel that is not for own use.
 
Please see the Applicant Guide for a description of ineligible activities.