Capital project: Construction of new sustainable municipal buildings

What we fund

We offer combined loan and grant funding to support new building construction projects for sustainable, municipally-owned buildings. This funding helps Canadian cities and communities of all sizes undertake sustainability projects that reduce emissions, accelerate energy savings and keep energy dollars in the community. 

Eligible municipal buildings, such as municipally-owned community buildings, may include but are not limited to:  

• city halls, town halls  
• administrative buildings, police stations    
• indoor ice rinks, indoor sports arenas, indoor swimming pools    
• public libraries    
• community and recreational centres (e.g., community centres, clubhouses, recreation centres, gyms, halls and curling rinks)    
• arts and culture facilities (e.g., cultural facilities, performing arts facilities, art galleries and auditoriums)    
• multi-purpose buildings, which include one or more of the above community functions, as well as other services/administrative functions  
• Note: Fire halls, paramedic centres, ambulance stations, and public works buildings are eligible for retrofits as stand-alone buildings. For new construction projects, they must be part of a multi-purpose building that includes at least one eligible building type listed above.  

New constructions of municipal buildings must meet best practice energy targets defined in this offer, which include limitations on fossil fuel use. Projects are also required to meet embodied carbon reductions.

Projects are encouraged to incorporate additional environmental benefits (i.e., potable water conservation, sustainable materials management, biodiversity considerations). 

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 should 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. 

Further information regarding the offer can be found in the Sustainable Municipal Buildings application guide.

New information below. Please review before submitting a funding application.

 Best practice energy targets: Mandatory requirements

For the new construction of sustainable municipal buildings, applicants should strive to meet best practice energy targets. These proposed targets are based on: 

• Energy Use Intensity (EUI): Performance requirement for building energy consumed per year, per unit floor area. Normally measured in kWh/m2/y.
• Thermal Energy Demand Intensity (TEDI): Performance requirement for building heating demand per year, per unit floor area. Normally measured in kWh/m2/y.

Targets are to be established based on climate zone and building typology. 

Consult our short guide for more information on how to calculate EUI and TEDI targets for new buildings based on building typology, including key definitions and examples.

 

Typology 1: Office and office-like buildings including libraries and town halls 

Energy Use Intensity (EUI) targets 

EUI targets are established for office and office-like building types by climate zone as shown in the table below. 

Climate zone	EUI target (kWh/m2/y)
4	95
5	95
6	95
7 & 8	.0074 x HDD18 + 74

Table 1: EUI targets for office and office-like buildings by climate zone.

 

Thermal Energy Demand Intensity (TEDI) targets 

TEDI targets are established for office and office-like building types by climate zone as shown in the table below.

Climate zone	TEDI target (kWh/m2/yr)
4	30
5	32
6	34
7	36
8	40

Table 2: TEDI targets for office and office-like buildings by climate zone.

Contact us if you need assistance determining your climate zone.

Important: See list of additional mandatory requirements for all building typologies listed below.

 

Typology 2: Non-office buildings such as indoor ice rinks, pools, fitness centres, indoor soccer fields and public works buildings 

• Your reference (baseline) and proposed energy models must be modeled in accordance with the National Energy Code of Canada for Buildings (NECB) 2020.  
• EUI requirement: Your proposed building’s EUI must be 25% lower than your NECB 2020 baseline energy model.
• TEDI requirement: Your proposed building’s TEDI must be equal to or better than the NECB 2020 baseline building TEDI.  

Important: See list of additional mandatory requirements for all building typologies listed below.  

 

Typology 3: A mix of typologies 1 and 2 

• If 75% or more of your building’s floor area is typology 1, treat the entire building as typology 1, not typology 3.
• If 75% or more of your building’s floor area is typology 2, treat the entire building as typology 2, not typology 3.
• If your building contains a mix of typologies 1 and 2, where neither exceeds 75% floor area, a weighted-average EUI and TEDI must be calculated. Consult our TEDI and EUI guidance document for more information or contact us. 

Important: See list of additional mandatory requirements for all building typologies listed below. 

 

Fossil fuel limitations

Climate zones 4, 5, 6, 7A:

• Buildings must achieve zero operational GHGs (no natural gas or other fossil fuel use).  
• Backup emergency electricity generators are permitted, including those using fossil fuels such as diesel.
• For buildings requiring heating during power outages or emergencies :  
  • Separate emergency heating systems using natural gas or heating oil are permitted only if all other non-emitting options have been ruled out, including using an emergency electricity generator to power heat pumps.
  • If fossil fuel emergency heating is included, a written explanation must be provided in the application.

Climate zones 7B and 8:

• The building must achieve zero operational GHGs (no natural gas or other fossil fuel combustion) when outdoor temperatures are -15 °C and above.  
• Fossil fuel space heating is allowed only when outdoor temperatures are below -15 °C.  
• Backup emergency generators, including those using fossil fuels such as diesel, are permitted.  

 

Additional mandatory requirements: 

1. Renewable energy, such as solar panels, does not count towards energy targets. When calculating EUI, do not deduct renewable energy production from the building’s energy use.
2. Thermal bridging must be taken into account in the EUI and TEDI targets.
3. If your building contains a parkade, the parkade energy use must be included in the EUI and TEDI targets, however, the parkade floor area must be excluded from the EUI and TEDI calculations.
4. The reference (baseline) and proposed energy models must be modeled in accordance with NECB 2020. Other versions of NECB (such as NECB 2015, NECB 2017) are not acceptable. 

Consult our short guide for more information on how to calculate EUI and TEDI targets for new buildings based on building typology, including key definitions and examples.

Embodied carbon reduction requirements

• Projects must achieve at least a 10% reduction in embodied carbon compared to a functionally equivalent baseline and should pursue additional reductions where feasible.  
• Reductions must be demonstrated through an embodied carbon assessment completed in accordance with the National whole-building Life Cycle Analysis (wbLCA) Practitioner’s Guide for life cycle stages A1–A5, B1–B5, and C1–C4.  
• The embodied carbon assessment must be included with the capital project application and completed by a registered architect or professional engineer with a minimum of three years of experience in embodied carbon assessments.  
• The assessment must follow the required scope in the National wbLCA Practitioner’s Guide (Appendix B, Table 4), which limits analysis to the structure and enclosure, including:  
  • Substructure: foundations, subgrade enclosures, slab-on-grade.
  • Shell: superstructure, exterior vertical enclosures, exterior horizontal enclosures.
• Applicants are encouraged, but not required, to assess embodied carbon from additional building systems (such as interior partitions and mechanical or electrical systems), provided these results are reported separately.

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:

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