The GMF story Our legacy in 2023-2024
In 2023-24, the Green Municipal Fund (GMF) completed the first year of a new three-year strategic plan that aims to empower transformation across all our programs and strengthen Canadian municipalities' efforts to address climate change and advance the transition to net zero by 2050.
It’s an ambitious shift in focus that calls on GMF and all our local partners to broaden and scale their efforts to address the intersecting, intensifying challenges Canadians face by:
- Redoubling efforts to adapt to climate change as we strive to quickly reduce greenhouse gas (GHG) emissions
- Addressing housing affordability and energy poverty
- Adopting a multi-solving approach to deliver benefits across several different areas of concern
- Designing and implementing a Reconciliation & Anti Racism, Equity and Inclusion (AREI) lens to help municipalities support good quality of life for all
- Shifting financial flows and funding criteria to support the evolving priorities of Canadian communities
- Providing and supporting front-line learning while also delivering essential financial support for local initiatives and innovation.
GMF’s renewed strategic focus
Our cities are home to more than 80 percent of Canadians and have influence over almost half of the country’s GHG emissions. The combined effort to reduce our climate pollution, prepare for the impacts of local climate disasters and tap into the massive potential gains in the transition off carbon will hinge on successful action in the communities where most of us live, work, learn and gather.
But local governments can’t do it on their own. That's why GMF brings vision, commitment, and innovation to our work with Canadian communities to support, empower and help transform local solutions into impactful climate action. In 2023-24, GMF made significant strides in delivering needed resources to various sectors, forging important new working relationships and, crucially, scaling up proven solutions to maximize results across many sectors.
GMF works to empower transformation in three ways:
1. By delivering a suite of funding options to create the conditions for local initiatives;
2. Building local knowledge and capacity for successful projects that deliver on the full range of climate, energy and social objectives; and
3. Enabling municipalities to demonstrate new concepts that can be quickly scaled locally and replicated elsewhere.
With $1.6 billion already under management, this year we also secured two new funding agreements with the Government of Canada—Local Leadership for Climate Adaptation (LLCA) and Growing Canada’s Community Canopies (GCCC)—totalling more than $820 million in new funding for municipal climate solutions and adaptation.
Since it was established in 2000, GMF has grown into an essential contact point for cities and communities across Canada, helping them convene around the challenges and opportunities for sustainable development and assemble the resources they need to move forward. We deliver practical, tangible solutions with lasting impact in communities that solve multiple challenges and are working to integrate the principles of Reconciliation & Anti Racism, Equity and Inclusion (AREI) in our programs to help ensure all residents experience enhanced quality of life while communities work to achieve the country’s 2030 and 2050 net-zero targets.
That commitment means delivering maximum impact and value in all aspects of GMF operations. This includes supporting local projects, sharing valuable lessons and insights with communities, and providing efficient, effective services by continually making our own operations more inclusive, flexible and agile. GMF succeeds—and helps accelerate the transition to resilient, net-zero communities—by building a critical mass of demand for local climate solutions, and then facilitating hand-offs based on local experience, so that proven solutions scale quickly, widely and effectively.
Economic benefits
Through our loans and grants, we help municipalities get their net-zero and environmental sustainability projects off the ground—and get ahead financially in the process. That includes lowering the operating costs of municipal buildings and infrastructure, creating local jobs, and upgrading aging assets. For the data below, we used the Local Economic Development (LED) model to calculate the economic impact of our investments in plans, studies, pilots and capital projects.
Since inception
Financial leverage
The following are measures of the financial leverage of completed GMF projects across the country for the 1,246 initiatives where our investment represented at least 30 percent of the project’s total value (all numbers include direct and indirect results, but induced effects are not included).
$1.24B
contributed to national GDP
13,129
person-years of employment
$692M
of national wages and salaries paid to households
GMF’s impact across Canada: By the numbers
From coast to coast to coast, GMF has helped communities of all sizes adopt sustainability solutions. To reach Canada’s goal of net-zero carbon emissions by 2050, we know that each and every municipality must be able transition to a low-carbon emissions future and address its unique challenges and needs, be it flooding, wildfires, water shortages or access to affordable heating and cooling. Building resilient infrastructure as well as adapting systems and processes to withstand the already tangible impacts of climate change is imperative.
With this goal in mind, GMF is committed to equitable allocation of its funding and capacity building initiatives to municipalities, in line with each region’s national population percentage. Further, we also strive for equitable allocation between rural and urban areas while helping to ensure minorities and vulnerable people and communities are represented.
Below is information about the sectors in which we work and how our funding breaks down in terms of regions and urban-rural distribution.
Distribution by sector and priority initiatives
Our work in five sectors is accelerating the transition to more sustainable solutions for Canadian municipalities:
Regional distribution of GMF funding
We tracked the regional distribution of loans and grants for planning, feasibility studies, pilot projects and capital projects in 2023-24.
2023-2024
% of population6.5%
Total grant ($)
11,892,295
Total loan ($)
17,973,911
% of total (grants & loans)
15.4%
Total net approved since inception*
Total $ (grants & loans)$244,664,456
% of total $
15%
*The grant and loan values for FY 2023-24 include positive scope changes for 4 projects, a grant/loan rebalance for 1 project and negative scope changes for 4 projects approved in previous fiscal years.
2023-2024
% of population13.5%
Total grant ($)
7,144,534
Total loan ($)
$15,000,016
% of total (grants & loans)
11.4%
Total net approved since inception*
Total $ (grants & loans)$270,966,445
% of total $
16.6%
* The grant and loan values for FY 2023-24 include positive scope changes for 4 projects, a grant/loan rebalance for 1 project and negative scope changes for 4 projects approved in previous fiscal years.
2023-2024
% of population0.3
Total grant ($)
$16,010
Total loan ($)
0
% of total (grants & loans)
0.01%
Total net approved since inception*
Total $ (grants & loans)$10,721,408
% of total $
0.7%
* The grant and loan values for FY 2023-24 include positive scope changes for 4 projects, a grant/loan rebalance for 1 project and negative scope changes for 4 projects approved in previous fiscal years.
2023-2024
% of population38.5%
Total grant ($)
$23,966,284
Total loan ($)
$34,678,303
% of total (grants & loans)
30.2%
Total net approved since inception*
Total $ (grants & loans)$604,355,685
% of total $
37.1%
* The grant and loan values for FY 2023-24 include positive scope changes for 4 projects, a grant/loan rebalance for 1 project and negative scope changes for 4 projects approved in previous fiscal years.
2023-2024
% of population18.2%
Total grant ($)
$16,678,932
Total loan ($)
$27,774,100
% of total (grants & loans)
22.9%
Total net approved since inception*
Total $ (grants & loans)$289,604,811
% of total $
17.8%
* The grant and loan values for FY 2023-24 include positive scope changes for 4 projects, a grant/loan rebalance for 1 project and negative scope changes for 4 projects approved in previous fiscal years.
2023-2024
% of population23%
Total grant ($)
$8,842,892
Total loan ($)
30,074,307
% of total (grants & loans)
20.1%
Total net approved since inception*
Total $ (grants & loans)$209,115,693
% of total $
12.8%
* The grant and loan values for FY 2023-24 include positive scope changes for 4 projects, a grant/loan rebalance for 1 project and negative scope changes for 4 projects approved in previous fiscal years.
Breakdown by province/territory
All numbers include direct and indirect results, but induced effects are not included.
British Columbia
- 289 projects completed
- $268.0M GDP
- 2,790 person-years of national employment
Alberta
- 136 projects completed
- $93.3M GDP
- 881 person-years of national employment
Saskatchewan
- 59 projects completed
- $19.6M GDP
- 199 person-years of national employment
Manitoba
- 65 projects completed
- $33.7M GDP
- 342 person-years of national employment
Ontario
- 538 projects completed
- $425.0M GDP
- 4,408 person-years of national employment
Quebec
- 289 projects completed
- $205.6M GDP
- 2,286 person-years of national employment
Atlantic (NB, NL, NS, PEI)
- 183 projects completed
- $165.5M GDP
- 1,984 person-years of national employment
Territories (YT, NU, NWT)
- 27 projects completed
- $32.2M GDP
- 239 person-years of national employment
British Columbia
- 289 projects completed
- $268.0M GDP
- 2,790 person-years of national employment
Alberta
- 136 projects completed
- $93.3M GDP
- 881 person-years of national employment
Saskatchewan
- 59 projects completed
- $19.6M GDP
- 199 person-years of national employment
Manitoba
- 65 projects completed
- $33.7M GDP
- 342 person-years of national employment
Ontario
- 538 projects completed
- $425.0M GDP
- 4,408 person-years of national employment
Quebec
- 289 projects completed
- $205.6M GDP
- 2,286 person-years of national employment
Atlantic (NB, NL, NS, PEI)
- 183 projects completed
- $165.5M GDP
- 1,984 person-years of national employment
Territories (YT, NU, NWT)
- 27 projects completed
- $32.2M GDP
- 239 person-years of national employment
Urban-rural balance of all approved initiatives
Below is the urban-rural distribution of loans and grants for planning, feasibility studies, pilot projects and capital projects in 2023-24.
% of population
- 17.8%Small, rural and remote municipalities
- 82.2%Towns and cities
2023-2024 funding breakdown
Total grants & loans ($)
- $44,784,108 Small, rural and remote communities
- $149,257,476 Towns and cities
% of total $
- 23.1% Small, rural and remote communities
- 76.9%Towns and cities
Total net approved since inception*
Total grants & loans ($)
- $259,755,464Small, rural and remote communities
- $1,369,673,035Towns and cities
% of total $
- 15.9% Small, rural and remote communities
- 84.1% Towns and cities
GMF’s priority areas in 2023-24
- Accelerating private investment opportunities
-
Decarbonization is a challenge that spans every part of society and the economy and isn’t something the public sector can address on its own. The needs at the municipal level far exceed what local governments can deliver unassisted.
That’s why it’s a priority for GMF to accelerate financing from partners in the investment and financial sector. In 2023-24, a key objective was to begin to recapitalize and expand local initiatives under the Community Efficiency Financing (CEF) initiative through follow-on financing from local credit unions, impact investors, traditional banking institutions, private developers, utilities, non-profits and housing cooperatives.
- Refreshed its CEF funding offer with two distinct options: a seed funding stream for underserved jurisdictions and underrepresented program financing models, and a growth stream to replicate and scale all other project types
- Completed a client needs assessment and programs profile that confirmed the scale of investment municipalities require and identified key capacity needs
- Developed an investor engagement plan
- Assembled a clear business case for Property Assessed Clean Energy (PACE) investing and initiated a jurisdictional scan of existing PACE legislation and financing models
- Developed a pilot for a capacity-building program for CEF, aimed at helping municipalities address key factors (streamlined processes, upgraded systems, new delivery models, and follow-on private investment) that will enable them to expand their CEF programming. The program is scheduled to launch later this year.
- Embracing multi-solving and Reconciliation & Anti Racism, Equity and Inclusion (AREI)
-
Climate change does not impact all communities equally; it disproportionately affects historically marginalized and underserved groups. These communities often face systemic barriers that restrict their access to resources and limit their involvement in decision-making processes. Consequently, they are more likely to live in areas vulnerable to environmental hazards and have less ability to relocate away from these risks. The combination of these factors makes these groups more vulnerable to health and economic challenges when disasters strike.
The three pillars of sustainable development connect most clearly and naturally at the local level, where municipalities can effectively integrate these principles into their policies and initiatives. However, it is also at this level that the limitations of these principles in addressing deep, structural issues of social and economic inequality become most apparent. In response, GMF launched its broader Reconciliation & Anti Racism, Equity and Inclusion (AREI) framework, committing to support municipalities, stakeholders, and citizens as projects are designed and implemented through a Reconciliation and AREI lens.
To address this inequality, it's essential to integrate these considerations into our climate planning. Doing so not only ensures that our strategies are holistic and equitable but also fosters more resilient, sustainable communities. Once completed, this approach will support societal cohesion by encouraging participation and inclusivity, increasing the effectiveness of environmental initiatives, and ensuring no one is left out of our collective efforts against climate change.
GMF has introduced a measurement framework for Reconciliation and AREI. This framework, which sets annual targets for staff, governance and programming, aligns GMF's activities with the strategic objectives of the Federation of Canadian Municipalities (FCM), and with global best practices in diversity and inclusion. While progress has been made to integrate the principles of Reconciliation and AREI into our work, we recognize the this is an ongoing journey and there is significant importance to continuing to have meaningful dialogue to learn and integrate best practices.
In 2023-24, GMF:
- Established a biodiversity working group, defined a set of objectives for biodiversity and nature-based solutions through a Reconciliation and AREI lens, and began work on a corresponding set of measurement frameworks
- Approved a new socio-economic benefits framework to document Reconciliation and AREI outcomes, including social procurement, local economic development, and inclusive community engagement
- Hosted a successful webinar on integrating Reconciliation and AREI principles in GMF programming
The Low Carbon Cities Canada (LC3) network developed an “equity rubric,” to ensure Equity, Diversity and Inclusion (EDI) considerations in all grant and investment decisions. The rubric was applied to 63 projects, with 40 identified as having significant potential to promote equity in diverse community initiatives.
Multi-solving at GMF:Addressing multiple sustainability and inclusivity outcomes through a single solution
GMF initiatives embed multi-solving principles in project evaluation, selection, and performance monitoring. These range from nature conservation and achieving international biodiversity commitments, to circular economy strategies, to managing waste and materials, all while ensuring the most vulnerable in society benefit equally from investments in climate action. While the terminology has only become mainstream in recent years, GMF has practiced multi-solving since its inception in 2000. We were set up to support local governments in their efforts to push boundaries, deliver tangible results and make life better for local citizens. From the very beginning, our efforts have been guided by a comprehensive understanding of sustainability aiming to integrate environmental, economic and social factors.
- Championing sustainable financial management
-
GMF walks the talk on corporate sustainability, aiming to entrench bedrock principles of sustainable development in every aspect of its operations. GMF’s commitment to sustainability begins with its organizational values, from financial stewardship to its approach and environmentally-conscious operations. Our unique funding model, endowed by the Government of Canada, enables us to support these principles through a two-part investment strategy for near- and long-term growth: In the near-term, we’re focused on providing even more concessional funding to communities through larger grant envelops from our more recent programs, allowing municipalities to take more risks in demonstrating a net-zero pathway across their assets and operations. Over the long term, we are dedicated to diversifying the investment strategy for our endowed funds. Our focus is on investments that align with our statement of investment beliefs, which prioritize climate mitigation, resilience, and broader sustainability goals. This strategy has successfully generated higher returns, enabling us to offer more funding to our target clients, which include municipalities and their partners. As a result, we can provide lower interest rates, longer repayment terms, and fund more projects in the future.
In 2023-24, GMF:
- Evaluated and reprofiled our investment portfolio to adhere to Environmental, Social, and Governance (ESG) principles
- Adopted a risk appetite statement that aligns with all aspects of GMF’s mandate ensuring sustainable cash flow for operations, managing risk and volatility, and considering operational and credit risks in lending activities. It also addresses long-terms risks by adhering to ESG principles.
- Established sustainable investment principles to guide our organization's financial decisions, promoting long-term environmental stewardship and social responsibility
- Became a signatory to the United Nations Principles for Responsible Investment (UNPRI) and received our first performance report which shows above-average results compared to peer organizations and affirms our commitment and approach to responsible investing.
- Delivering a full suite of high-impact programming
-
GMF’s guiding purpose has always been to work with municipalities on innovative, scalable solutions in infrastructure and technology, financing, municipal processes and practices, and policy. In 2023-24, we worked to streamline and improve existing programs while developing and deploying new ones, all with the goal of helping communities get ahead of a multi-faceted climate emergency and accelerate their efforts on the road to net-zero operations.
- Advanced net-zero integration by setting and achieving GHG reduction targets and developing an approach to reducing fossil fuel use in each of its funding streams, including scoping activities for its Community Efficiency Financing (CEF) and Sustainable Affordable Housing (SAH) programs and integrating a net-zero target in our renewed Net Zero Acceleration (NZA) funding offer
- Approved CEF, SAH and Community Buildings Retrofit (CBR) initiative projects for this fiscal year that are anticipated to reduce GHG emission by approximately 7 kilotonnes per year of carbon dioxide equivalent (kt/y CO2e). This brings the total reductions for these programs to approximately 31 kt/y CO2e, achieving 62% of the overall target of 50 kt/y CO2e by 2026
- Developed and designed two new initiatives, Local Leadership for Climate Adaptation (LLCA) and Growing Canada’s Community Canopies (GCCC), both launched in Spring, 2024
- Developed and delivered more than 130 knowledge and training activities to 4,242 participants across all programs, reaching more than 15,000 users via digital content.
Our 10-year ultimate goals
Under our new 2023-2026 Three-year Plan, GMF has established ultimate goals as a set of guiding principles in our work to transform the sector over the next decade:
1. Municipalities can access innovative, technically, and economically viable solutions to their climate change mitigation, adaptation and sustainability challenges.
2. Municipalities have climate change mitigation and adaptation plans, and they and their partners have the capacity, knowledge, decision-making tools and support to scale-up the implementation of sustainable, resilient, net-zero solutions.
3. Municipalities can access the capital they need to invest in or fund sustainable, resilient, net-zero solutions.
4. GMF has the means, resources, and partner support to lead the transition to sustainable, resilient, net-zero Canadian communities.
Environmental benefits
2.9 million tonnes of GHG emissions avoided
Economic benefits
GMF supported contents that have generated $692M in national wages and salaries paid to households
Social benefits
43 initiatives with specific social impact targets
2,336 sustainability projects approved since 2000
The future we envision is one where Canadian municipalities are vibrant, resilient, and at the forefront of the global transition to net-zero emissions. We see communities that have successfully integrated sustainable practices into every aspect of their operations, from energy-efficient buildings and renewable energy sources to inclusive social policies and robust climate adaptation strategies. Our goal is to create a Canada where all communities, regardless of size or location, have the resources, knowledge, and capacity to address the challenges of climate change and environmental sustainability.
In this future, collaboration is key. Municipalities, the private sector, and community stakeholders work together seamlessly, leveraging innovative financing solutions and sharing best practices to scale up successful initiatives. GMF remains a central pillar in this effort, continuously evolving to meet the needs of Canadian communities. By fostering innovation, promoting equity, and driving impactful climate action, we aim to create a prosperous and sustainable future for all Canadians, ensuring that no community is left behind in the journey towards a healthier planet.
Social benefits
Our multi-solving approach aims to inspire projects that promote and support vibrant and healthy communities with inclusive infrastructure and benefits for all. GMF makes a decided effort to broaden the social impact with innovative projects that aim to help vulnerable youth, people struggling with mental health and addiction, low-income seniors, women and single parents, Indigenous people and recent immigrants.
Community centres, cultural centres and libraries
capital projects completed
invested
Social benefits reported:
Affordable housing (new builds and retrofits of existing units)
capital projects completed
affordable unit projects supported
invested
Social benefits reported:
Recreation centres, pools and ice rinks
capital projects completed
invested
Social benefits reported: