Capital project: Community Energy Systems

What we fund

We offer combined loan and grant funding to support municipalities and their partners in constructing, commissioning and rapidly deploying a successful implementation of a low-carbon community energy system.

Your project should deploy a system that mitigates GHG emissions, creates social benefits, and provides solid financial payback within a targeted timeframe of three years after application approval and should be integrated into your municipality’s asset management register/plan or municipal budget.

What your project needs to achieve

All projects that meet the criteria on this page are eligible. Please note that we consider several factors in making a funding decision. We strive to fund the most innovative and impactful initiatives, so not all eligible projects will be approved for funding.

This project must build on a completed feasibility study that has assessed the technical and financial feasibility of the proposed project, as well as the environmental, social, and economic impacts.

Eligible applicants must also provide records of community support for the project including but not limited to records of approval from local government council, and initiation of the impact assessment process, where applicable.

Further information regarding the offer, including minimum requirements for feasibility studies, can be found in the Community Energy Systems application guide

Requirements for all Community Energy Systems projects

Capital projects must meet the following requirements:

• A minimum of two buildings are required for district energy projects, and renewable electricity systems should be able to power multiple systems and buildings.
• For thermal energy projects: Your initiative must reduce GHG emissions associated with fossil fuel or grid electricity use by at least 40 percent compared to current performance.  You must be able to achieve this target within three years of implementation.

Resilience

Projects must meet minimum requirements related to climate resilience:

• Capital projects that include new infrastructure assets must be built outside the current 100-year floodplain of the most recent floodplain map, unless evidence can be provided of protection to safeguard the asset.
• Projects with new infrastructure assets valued over $2 million must conduct a Climate Risk Assessment (i.e., Infrastructure Canada Climate lens, ISO 14091, PIEVC High Level Screening Guide or equivalent) and address risks identified. A Climate Risk Assessment must be included in study workplans (where relevant) and is submitted as part of the pre-application for relevant capital projects.

Equity considerations

GMF recognizes that many urgent social issues are interrelated, and that climate action and sustainability initiatives need to be designed to ensure fair distribution of benefits and burdens, across all segments of a community and across generations. Projects will be assessed on their potential to result in improved socio-economic outcomes and a more equitable distribution of benefits and burdens among the community, for present and future generations. While projects can be eligible without incorporating these considerations, preference is given to projects that:

• Integrate principles of anti-racism, equity, inclusion and reconciliation.
• Apply inclusive community engagement practices.
• Implement social procurement.
• Generate significant socio-economic benefits, such as increased accessibility, improved outdoor spaces, and inclusive employment and apprenticeship.

As you develop your project approach, consider the following questions:

1. How can you design an engagement approach that would enable you to consider the diverse needs, experiences, and voices of all stakeholders and rights holders in this project?
2. Which equity-deserving groups might benefit the most, and/or be burdened, directly or indirectly, by this project? How are these groups positively or negatively impacted?
3. Are there opportunities to address or mitigate negative impacts?
4. Are there opportunities to rectify existing or potential biases, discrimination, or exclusionary practices in your project planning, design, funding, and implementation?
5. How can you maximize the socio-economic benefits that your project generates?
6. How can you leverage your procurement practices to generate more positive social, economic and environmental outcomes within your community and region?

Multi-solving

GMF seeks to fund the very best examples of municipal initiatives that achieve a multitude of benefits for the environment, communities and local economies. Higher application evaluation scores are given to projects that demonstrate excellence in one or more of the following areas:

• sustainable materials management
• biodiversity
• socio-economic benefits 
• meaningful engagement and collaboration with rights holders and stakeholders.