Capital project: Retrofit of existing municipal buildings

What we fund

We offer combined loan and grant funding to support municipalities in implementing one or more phases of a selected GHG reduction pathway. Eligible projects may focus on a single building or a portfolio of municipal buildings. 

Your capital project should consist of one or more phases in a sequence of retrofit measures (pathway) to reduce emissions from your municipal building by at least 50 percent within 10 years and achieve best practice energy targets within 20 years. Applications are encouraged to demonstrate a pathway that reduces the most amount of GHGs in the near term (ie., in the next 10 years), through the pursuit of a deep energy retrofit and fuel-switch.

You are strongly encouraged to consider a portfolio of municipal buildings and consider parallel interventions in those buildings.

An application is also recommended to follow all elements identified in the GHG reduction pathway retrofit feasibility study guidance document.

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.

Retrofits are eligible if they consist of one or more phases of a GMF-funded GHG reduction pathway retrofit feasibility study, if they meet the best practice energy targets defined in this offer respective of climate zone or if they consist of one or more phases supported by equivalent feasibility work.

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

Best practice energy targets

For the retrofit of non-community 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 area (square metre) for a new building (with adjustments for buildings that do not fit office typologies).
• Thermal Energy Demand Intensity (TEDI): Performance targets for the heating demand per year per unit area (square metre) for a new build (with adjustments for buildings that do not fit office typologies).

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

Energy Use Intensity target

EUI targets are established for administrative building types by climate zone as shown in the figure below. In the municipal context, administrative buildings would be equivalent to the office typology target.

Climate zone	Office (EUI)
4	100
5	100
6	100
7 & 8	.0078 x HDD18 + 78

Table 1: EUI targets for office and multi-unit residential buildings by Canadian climate zone, adapted from the CaGBC Zero Carbon Building Standard.

Climate zone adjustment of TEDI targets

The following TEDI thresholds are based on Canadian climate zones:

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

Table 2: Canadian climate zone TEDI targets adapted from the CaGBC Zero Carbon Building Standard.

Contact us if you need assistance determining climate zone.

Retrofit pathways

Your capital project should see you implement one or more phases of your selected GHG reduction pathway. Eligible projects may focus on single building or a portfolio of municipal buildings. 

What is a retrofit pathway?

A sequence of GHG reduction measures that allow municipal buildings to achieve significant emissions reduction in phases over time.

Example of a pathway to retrofit that strategizes the replacement of equipment when it reaches the end of its useful life:
Phase 1 – Introductory energy conservation   Timeline: 0-10 years  Passive strategies, minor envelope improvements and energy demand conservation measures.
Phase 2 - Partial fuel-switch to achieve 50% reduction in GHGs from baseline Timeline: No longer than 10 years   Capital equipment replacement and fuel-switching while maintaining backup fossil-fuel systems. Possible addition of renewable energy.
Phase 3 - Deep energy retrofit and full fuel-switch   Timeline: 10-20 years Complete conversion to non-fossil fuel energy sources and alignment with EUI and TEDI targets.

For additional information please see GHG reduction pathway retrofit feasibility study guidance document.

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