As part of its pledge to achieve net-zero emissions by 2050, the Canadian federal government is launching various cleantech funding programs to support Canadian Small and Medium Enterprises (SMEs) and provincial/territorial governments in adopting clean energy solutions. The Low Carbon Economy Fund is one such program that harnesses Canada’s innovation potential to lower Greenhouse Gas (GHG) emissions and foster clean growth.
It is estimated that Canada’s GHG emissions of Canada have decreased by 8.4% between 2005 and 2021 (source).
The deadline to apply for funding through the Low Carbon Economy Fund is February 8th, 2024. We strongly recommend starting your application early as this program can receive many applications. The Mentor Works team can assist in the application of government grant, loan, or tax credit applications for programs like the Low Carbon Economy Fund. Speak with a grant consultant to discuss your eligibility for this funding programs.
Funding Snapshot: Low Carbon Economy Fund
This funding program provides grants towards eligible expenses that aim to lower the GHG emissions of an organization. The amount of funding provided will depend on the type of organization, as well as the eligible project you have in mind.
Amount of Funding:
Applicants can request between $1M and $25M in funding for eligible project expenditures, with cost-share ranging from 25% to 75% as follows:
- 25% for for-profit private sector businesses
- 50% for not-for-profit organizations
- 50% for public sector body or board
- 50% for provinces and provincial entities
- 50% for research, academic and educational institutes
- 50% for provincial governments/bodies/boards
- 75% for territorial governments/ bodies/boards
- 75% for Indigenous recipients
Eligible projects must result in reductions in GHG emissions in 2030 and align with Canada’s goals for net-zero emissions by 2050. These reductions must be:
- To sources of emissions controlled by the applicant or project partner (direct) and/or grid electricity emissions (acquired);
- Beyond what is required by existing regulations, standards, or codes and ongoing work by project proponents;
- Benefits must be directly and immediately realized;
- Technologies adopted must have a Technology Readiness Level (TRL) of 8 or above to receive implementation funding; and
- Production of electricity or fuel must be primarily for own use.
Funding applications will be assessed based on the following impacts:
- Annual tonnes of GHG emissions reduced by 2030 per federal dollar invested;
- Cumulative GHG emissions reduced over the lifetime (to 2050) of the impact per federal dollar invested;
- Project feasibility and risk; and
- Other co-benefits, such as contributions to Canada’s environmental, economic, and social goals.
Organizations that meet the eligibility criteria, have a project that aligns with Canada’s emission goals and impacts, can receive funding covering a percentage of the following costs:
- Equipment and capital investment costs;
- Staff salaries;
- Project management and professional service costs;
- Materials and supplies;
- Vehicle rental and operation; and
- Contractor fees.
Apply for the Low Carbon Economy Fund:
The deadline to apply for the Low Carbon Economy Fund is February 8th, 2024. We strongly recommend starting your applications sooner than later, as this is a highly competitive funding program. The government grant writers at Mentor Works, a Ryan Company is Canada’s leading government funding application writing agency, and we can assess your business on its potential to receive funding through the Low Carbon Economy Fund, as well as write and submit the application for this program on behalf of your organization. Speak with a member of our government funding application writing team today.
Get to learn more about how to apply for Canadian government funding programs by downloading our free Business Funding Guide that was recently updated. This guide provides an overview of how Canadian businesses can keep track of funding programs before they’re announced, so they can be among the first to apply.