Funding Snapshot

Maximum Award:
  • Combined grant and loan for up to 80% of eligible costs
  • Combined grant and loan to a maximum of $10M
  • Grant up to 15%** of the total loan amount
  • Additional 5% grant available if the project involves the remediation of a brownfield site

Note: The grant contribution is determined as a function of the loan and cannot be separated

Open To:

The following organizations are eligible for GMF funding.

Canadian municipal governments (e.g., towns, cities, regions, districts, and local boards).

Municipal partners, which include:

  • Private sector entities
  • Municipally-owned corporations
  • Regional, provincial or territorial organizations delivering municipal services
  • Non-governmental organizations
  • Not-for-profit organizations
  • Research institutes (e.g., universities)
  • An Indigenous community is an eligible lead applicant if they are partnering with a Canadian municipal government on an eligible project, or if they have a shared service agreement with a Canadian municipal government related to municipal infrastructure, climate change or adaptation
Expected Output:

A capital project that has the potential to result in a significant contribution to net-zero.

Application Deadline:

Applications are accepted year-round, though this offer may close when all funding has been allocated.

Eligible Costs:

** Municipalities with exceptional projects may qualify for a higher loan and grant amount. Contact us to find out if your municipality is eligible.

Contact us to learn more

What we fund

We provide combined loan and grant funding to support municipalities in constructing innovative infrastructure that has the potential to result in a significant contribution to net-zero. GMF capital projects are usually composed of physical assets. These are defined by following generally accepted accounting principles (GAAP).

To be eligible, you must have completed an assessment of the GHG reduction potential of your project using verifiable evaluation processes.

What your project needs to achieve

Only 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.

There are no pre-set environmental targets or thresholds for this funding offer.

Further information regarding the offer can be found in the Net-Zero Transformation application guide 

Innovation

To be eligible, your project must be considered innovative. It must target a significant improvement in performance over best practice through:

  • The development and/or application of new knowledge, policy, practice, business model, or advanced technology; or,
  • A new or emerging application of an existing technology or practice (e.g., in a new context) in a manner that represents a substantive change to current operating conditions or performance.
Significant GHG reduction potential 

To be eligible for funding, your project must have the potential to generate or enable significant reductions in GHG emissions in the long-term either:

  • Directly from project implementation (e.g., through increased energy efficiency and energy recovery); or,
  • Indirectly by creating the required enabling conditions (e.g., through net-zero design guidelines).

Direct GHG reductions must be quantifiable, while indirect reductions must be supported by a strong rationale and clear assumptions for how the project unlocks GHG reductions in the short, medium and/or long term. 

GMF will assess whether your project has the potential to lead to significant GHG reductions. This assessment will be based on:

  • The scale of the project’s GHG reductions (direct or indirect); and,
  • The project’s replication potential.

A project is considered to have a high potential for replication when:

  • It has clear performance benefits, which can be demonstrated through commonly understood metrics and measures
  • The solution addresses a key challenge for many municipalities (need-to-have, not nice-to-have).
  • There are strong drivers for the adoption of solution (e.g., a strong financial business case due to cost savings over status quo or financial returns).
Resilience

Projects must meet minimum requirements related to climate resilience:

  • All pilot and 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 pilot and 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
  • other environmental benefits
  • socio-economic benefits 
  • meaningful engagement and collaboration with rights holders and stakeholders

Need help to see if this is the right funding for you?

Contact our Outreach team who can answer any questions you have relating to this funding opportunity.

See all Net-Zero Transformation funding

Develop and demonstrate new, innovative solutions to support the municipal transition to net-zero