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Green Municipal Fund (GMF): Net-Zero Transformation

Program Category: Clean Energy, Climate Adaptation, Built Environment, Climate Mitigation, Environment, Community Infrastructure
Program Sub-Category: Energy Efficiency (Housing / Buildings), Renewable Energy, Innovation, Waste Reduction and Circular Economy
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Status: Open

Funder

Federation of Canadian Municipalities (FCM)

Deadline Details

Applications are accepted year-round, though this offer may close when all funding has been allocated.

Funder Organization Type

  • Other

About the Green Municipal Fund:

  • Canadian municipalities can apply for funding through the Federation of Canadian Municipalities’ (FCM) Green Municipal Fund (GMF) for municipal sustainable projects in the following sectors: Land Use, Transportation, Waste, Forestry, Water and Energy (including in Affordable Housing).
  • Grants are available for planning, studies, and pilot projects. Loans are also available for capital projects, and most recipients receive an additional grant of up to 15% of their loan amount.
  • FCM’s Green Municipal Fund can also help local governments switch to sustainable practices faster with its resources, peer learning and training activities including webinars, case studies and toolkits.
  • Green Municipal Fund (GMF) Website
  • GMF Funding Opportunities Website

The Green Municipal Fund (GMF) Net-Zero Transformation offer develops and demonstrates new solutions to support the municipal transition to net-zero* greenhouse gas (GHG) emissions. It aims to help Canadian municipalities of all sizes, and their partners, undertake innovative and replicable initiatives that have significant GHG reduction benefits, and that are not eligible under other GMF funding offers. GMF funds plans, feasibility studies, pilots and capital projects that support outstanding projects by all Canadian municipalities in various areas of innovation.

*Net-zero is defined as eliminating operational and embodied GHG emissions wherever possible and re-absorbing the equivalent of any remaining emissions.

Examples of what GMF funds include, but are not limited to:

  • Retrofit techniques that significantly reduce costs and shorten payback periods.
  • Funding mechanisms or incentives to accelerate zero-carbon new builds and retrofits.
  • Regenerative buildings that contribute net-positive environmental benefits.
  • Microgrids and battery storage that help meet peak electricity demand and add resilience to local grids.
  • Integrated modal shift and transportation demand management (TDM) strategies that address potential rebound effects.
  • Resilient, net-zero, inclusive and complete neighbourhoods.
  • Net-zero and net-positive water and wastewater systems.
  • Local circular economy initiatives for apparel textiles or construction / demolition materials that currently go to landfill.
  • Bio-covers or bio-filters for landfill gas mitigation for small or inactive landfills.
  • Brownfield initiatives that apply in-situ remediation approaches, employ renewable energy, reuse soil and demolition materials, and restore the site’s ecological features.

Net-Zero Transformation initiatives do not have pre-set environmental targets/thresholds because the projects are unique and evaluated on a case-by-case basis. Project scopes can be:

  • geographical (e.g., a neighbourhood, city or region)
  • sectoral (e.g., transportation sector)
  • organizational (e.g., the municipal government)
  • at an asset level (e.g., related to the life-cycle emissions of a building)
  • at a component level (e.g., related to a specific material or technology)

Eligible Community

The following organizations are eligible for GMF funding:
  • Canadian municipal governments (e.g., towns, cities, regions, districts, and local boards).
Municipal partners, which include:
  • Private sector entities
  • Municipally-owned corporations
  • Regional, provincial or territorial organizations delivering municipal services
  • Non-governmental organizations
  • Not-for-profit organizations
  • Research institutes (e.g., universities)
  • An Indigenous community (includes Metis and Modern Treaty Nations) is an eligible lead applicant if they are partnering with a Canadian municipal government on an eligible project, or if they have a shared service agreement with a Canadian municipal government related to municipal infrastructure, climate change or adaptation

Funding Stacking Restrictions

Yes
GMF does not fund projects that are eligible under another GMF funding offer.

Specific Eligibility Requirements

IMPORTANT: If your organization is not a municipal government, your initiative must be delivered in partnership with one. You will be required to provide the name of the main project contact for your lead municipality on the project team. You will also be required to submit a municipal council resolution stating municipal partnership. Please refer to the GMF Funding Application Guide for more details.

Type of Funding

  • Grant
  • Loan

Range of Funding Available per Project

  • Under $100 000
  • From $100 000 to $1 000 000
  • Over $1 000 000

Description of Funding

  • For plans to conduct integrated planning exercises to support the municipal transition to net-zero, grants are available for up to 50% of eligible costs to a max of $200,000.  

  • For capital projects to deploy a full scale best-in-class GHG reduction solution:

    • Combined grant and loan for up to 80% of eligible costs

    • Combined grant and loan to a maximum of $10 million

    • Grant up to 15%** of the total loan amount (**municipalities with exceptional projects may qualify for a higher loan and grant amount. Contact GMF to find out if your municipality is eligible.)

    • Additional 5% grant available if the project involves the remediation of a brownfield site

    • Note: the grant contribution is determined as a function of the loan and cannot be separated

  • For pilot projects to evaluate innovative GHG reduction solutions in real-world conditions, grants are available for up to 50% of eligible costs to a max of $500,000. 

  • For studies to assess new approaches and solutions to bring your community closer to net-zero, grants are available for up to 50% of eligible costs to a max of $200,000

  • For plans, pilot projects, and studies: some applicants may qualify for a grant of up to 80% of eligible project costs. Please see individual funding pages (hyperlinked above) for more details.

Eligible Costs

Design
Planning
Capital Costs
Community Engagement
Equipment/Material Purchase
Staff Costs
Administration Fees
Awareness and Education
Research and Development

Ineligible Costs

Building Purchase Costs
Land Acquisition

What we do not fund:

  • Projects that are eligible under another GMF funding offer.

  • Projects that do not involve one of the following:

    • The development and/or application of new knowledge, policy, practice, business model, or advanced technology.

    • A new or emerging application of an existing technology or practice (e.g., in a new context) in a manner that represents a substantive change to current operating conditions or performance.

Reporting Requirements

Progress reports and final reports