Strong communities are essential to Canada’s economic future.
Canada will establish an economic advantage on the global stage, grow and compete when communities can succeed. They need strong infrastructure, reliable local energy systems, protection from extreme weather and the right support to deliver.
Municipalities across the country face real pressure. Infrastructure is aging. Costs are rising. Housing is less affordable. Energy reliability is a growing concern. Climate-related disruption is also becoming more frequent and financially catastrophic — between 2015 and 2025 damage due to climate change reduced annual GDP in 2025 by at least $25 billion. These challenges affect daily life. They also affect Canada’s ability to attract investment, support businesses and build long-term prosperity.
The Federation of Canadian Municipalities’ Green Municipal Fund helps communities implement practical solutions at speed and scale. We provide funding, capacity-building and deep sectoral expertise to help municipalities move from planning to delivery. While also reducing project risk, speeding up implementation and attracting more public, private and philanthropic investment.
This matters because GMF does more than fund individual projects. We help make community infrastructure easier to invest in. Through blended finance and capital mobilization, we help prove new models and reduce risk, ultimately bringing more capital into local solutions. These solutions improve affordability, strengthen resilience and support a more competitive Canadian economy.
$5.6B contributed to national GDP
$3.1B in wages and salaries for households
58,954 years of employment for workers
$270M+ private capital mobilized since 2019
GMF investments deliver clear results. Since 2000, GMF-funded projects have contributed $5.6 billion to national GDP. They have added $3.1 billion in wages and salaries for households. They have also created 58,954 years of employment for workers. Since 2019, GMF has helped mobilize more than $270 million in private capital. Over the next three years, we aim to mobilize $600 million in new public, private and philanthropic capital. This is the next stage of GMF’s work. We will help municipalities deliver practical projects and create the conditions for larger-scale investment.
In 2025–2026, we supported Canadian municipalities of all sizes in four key ways
1
Building resilience against climate risk
We helped communities protect homes, public buildings and local infrastructure from extreme weather. Resilient communities can better protect residents, maintain services and support local economic activity. Since the 2024 launch of Local Leadership for Climate Adaptation, more than 17,600 people and 160 public buildings or spaces are anticipated to become better prepared for climate risks.
2
Fostering local prosperity for a competitive economy
We supported projects that create local jobs, reduce energy use and lower costs. These projects help municipalities, community organizations and housing providers. Through building energy-efficiency upgrades, communities are saving an average of $121,000 in the first year after an upgrade. Affordable housing providers are also reducing energy operating costs by 46%. These savings can be reinvested into homes, services and local affordability.
3
Strengthening local energy security and reliability
We invested in community energy systems that do more than reduce emissions. District energy and other local energy solutions can create stable long-term revenue. They can also protect communities from energy price volatility and strengthen local energy security.
4
Supporting strong, affordable communities
We helped communities focus on what matters to Canadians. That includes saving money on energy bills and building more local affordable housing. Through home energy-efficiency upgrades supported by our Community Efficiency Financing initiative, homeowners are saving approximately 30% on their energy bills. In 2025–2026, through our Sustainable Affordable Housing stream, we helped build or retrofit 472 affordable housing units. We also approved another 450 units to be built or retrofitted.
We also helped catalyze broader investment in communities. Since inception, we have provided early-stage support, blended finance and market expertise. This helps municipalities reduce risk and attract more capital. In Markham, for example, early GMF support helped de-risk a district energy system. That system later attracted an additional $270 million in capital. This shows how targeted federal investment can unlock larger local projects.
By the end of the fiscal year, we had received enough high-quality applications to fully allocate the $950 million we received from the Government of Canada in 2019.
This funding supported the Community Efficiency Financing, Sustainable Affordable Housing and Community Buildings Retrofit initiatives. This shows strong municipal demand. It also shows disciplined delivery and GMF’s ability to turn federal policy goals into local results quickly and at scale.
That delivery capacity helped us launch another $821 million in new programming in 2024–2025. Now in their second year, the Local Leadership for Climate Adaptation and Growing Canada’s Community Canopies programs are seeing strong demand. Communities are using these programs to protect residents, reduce risk and move faster.
GMF is also working to make funding easier to access. Smaller, rural, northern, remote and capacity-constrained communities often need more support. They need help moving from planning to implementation. Through our 2026–2029 three-year plan and our Local Leadership for Climate Adaptation initiative’s newly launched Rapid Adaptation Projects, we are strengthening that support. This will help more communities take part in the investments shaping Canada’s economic future.
Canada is stronger when local infrastructure lowers costs, reduces disruption, improves energy reliability and attracts investment. Our sustainable advantage depends on affordable, resilient and well-equipped communities. Creating a future where people and businesses can thrive, and Canada as a whole can prosper.
As we begin our 2026–2029 three-year plan, municipalities will continue to play a leading role. They are helping build an affordable, competitive and resilient Canadian economy. With continued support from our federal partners, GMF will build on this momentum. We will keep funding practical projects. We will keep catalyzing broader investment. And we will keep helping communities of all sizes create the conditions for long-term environmental, economic and social prosperity.
From our leadership
Carole Saab
FCM Chief Executive Officer
Tim Tierney
FCM President
Councillor, City of Ottawa, ON
GHG reductions
Energy savings
Ecosystem management
