Green Municipal Fund: Environmental Funding for Canadian Municipalities

Municipal governments play a significant role in protecting Canada’s environment. Across the country, municipalities lead yearly environmental initiatives that improve air, water, and soil quality, while also reducing greenhouse gas emissions. These are the types of projects that improve the long-term sustainability of communities from coast to coast.

The Green Municipal Fund (GMF) offsets up to 50-80% of eligible project costs of up to $10M incurred by municipalities who are completing environmental projects.

Municipal governments can access GMF government grants to offset a portion of environmental project expenses. The environmentally driven funding provides support for all stages of green projects, including planning, feasibility studies, pilot projects, and capital projects.

Green Municipal Fund: Grants for Environmental Projects

For over two decades, the Green Municipal Fund (GMF) has led the way in providing support towards innovative municipal sustainability projects across Canada.

With GMF funding, municipalities and their partners have brought more than 1,310 sustainable projects to life with $862M worth of completed initiatives.

There are currently two general streams of funding support provided through the Green Municipal Fund: Community Efficiency Financing (CEF) and Sustainable Affordable Housing (SAH). Between the two overarching streams, there are eight specific streams of funding.

Community Efficiency Financing (CEF) Stream

GMF is currently offering support for local home energy upgrade financing programs through three streams of study grants: Feasibility study, Design study, and Program evaluation study.

• Amount: Grants of up to $175,000 to cover up to 80% of eligible costs for all three study streams.
• Timeline: Application deadline is October 30, 2020.
• Project Focus: To deliver energy efficient financing programs for low-rise residential properties.

Sustainable Affordable Housing (SAH) Stream

GMF offers support throughout the life cycle of an affordable housing construction project through five funding options: Planning, Studies, Pilot projects, Retrofit capital projects, and New-build capital projects.

• Amount:
  • Planning: Grants of up to $25,000 to cover up to 80% of eligible costs.
  • Studies: Grants of up to $175,000 to cover up to 50% of eligible costs.
  • Pilot Projects: Grants of up to $500,000 to cover up to 80% of eligible costs.
  • Retrofit Capital Projects: 80% of total eligible project costs of up to a maximum combined financing of $10 million; Grants are available for 25–50% of total financing.
  • New-Build Capital Projects: 50% grant and 50% loan of up to a maximum combined financing of $10 million.
• Timeline: Continuous intake.
• Project Focus: Support local affordable housing providers to retrofit existing affordable housing units, or construct energy efficient new builds that emit lower GHG emissions.

Applicant Eligibility

As administered by the Federation of Canadian Municipalities (FCM), Green Municipal Fund grants are available to all Canadian municipal governments and their partners for eligible projects.

Consistent with all existing GMF programs, the following recipients are eligible for funding:

• Canadian municipal governments (e.g., towns, cities, regions, districts, and local boards thereof).
• Municipally owned corporations, such as municipal housing service providers; or Non-profit, mission-driven affordable housing providers, including co-operatives.
• Municipal partners applying in partnership with a municipal government such as: private sector entities, Indigenous communities, municipally owned corporations, a regional, provincial or territorial organization delivering municipal services, non-governmental organizations, not-for-profit organizations, research institutions (e.g. universities).

How to Apply for the Green Municipal Fund

The Green Municipal Fund’s application process varies depending on the type of project and stream being applied for:

• Community Efficiency Financing (CEF) Projects: A two-stage application process with recurring intake deadlines.
• Sustainable Affordable Housing (SAH) Projects: A single-stage application process with continuous intake of applications.

The next intake deadline for Green Municipal Fund CEF Projects is October 30, 2020.

To discuss your eligibility for the Green Municipal Fund and discover how to optimize the funding application process, please contact Mentor Works for government funding support.