Study: New construction of municipal buildings

What we fund

We fund feasibility studies that assess in detail the approaches needed to implement a new construction of an energy-efficient municipal building. 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.

Your feasibility study should demonstrate and validate the project’s environmental, social and economic benefits, in line with GMF’s thresholds for capital projects. 

The study must also account for the following:

• Meeting best practice energy and TEDI targets, respective of climate zone, as listed below.
• Meeting the fossil fuel restriction requirements as described in the Best Practice Energy Targets section below
• Completion of a whole building lifecycle analysis (wbLCA) subject to conditions noted below.
• A reduction in embodied carbon as described below.
• Reduction of indoor potable water consumption by more than 20% compared to a baseline.
• Climate risk assessment (required for projects studying new infrastructure valued over $2 million; optional for other projects).
• An equity assessment by answering, at minimum, the following questions:
  • Which equity-deserving groups might benefit the most from the project, and/or be burdened, directly or indirectly, by the project or decision? How are these groups positively or negatively impacted by the project or decision?
  • What strategies can be used to address barriers or mitigate negative impacts?
  • What data sources, reports, or mapping resources can help illuminate equity issues in your local context? What your project needs to achieve?

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.

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 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 and 7A :

• Buildings must achieve zero operational GHG emissions (no natural gas or fossil fuel use).
• The feasibility study may include additional scenarios with emergency backup systems, if needed.

Climate zones 7B and 8:  

• Buildings must achieve zero operational GHG emissions (no natural gas or fossil fuel use) when outdoor temperatures are −15°C and above.
• Fossil fuel heating is allowed only when temperatures fall below −15°C. 

 

Emergency backup systems

Some buildings may need emergency backup systems during power outages. If so, the feasibility study must:

• Analyze a scenario using a backup electricity generator (typically diesel-powered) to power the building's electrical systems, including electric heating systems (typically electric heat pumps).
• If analysis shows this is insufficient, the study may also include a scenario using backup fossil fuel heating (natural gas or heating oil). In this case, the study must:
  • Still include the all-electric backup scenario, and
  • Explain why the all-electric backup alone cannot meet emergency heating needs.

GMF-funded new buildings typically use electric heating and cooling systems (such as air-source or ground-source heat pumps), which may operate on a backup electricity generator during outages. These buildings are better equipped to maintain safe indoor conditions during extreme weather and power outages—for example, by providing cooling during a heat wave even if grid power is lost. 

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

 

Additional mandatory requirements: 

1. Renewable energy, such as from solar panels, does not count towards the 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 analysis

An embodied carbon assessment must be included within the scope of the feasibility study as a deliverable and must meet the following requirements:

• The assessment must follow the National whole-building Life Cycle Analysis (wbLCA) Practitioner’s Guide and calculate the embodied carbon in kilograms of carbon dioxide equivalent (kg CO2e) and per square metre of floor area (kg CO2e/m²) for the life cycle stages A1-A5, B1-B5, and C1-C4.

• The embodied carbon assessment must demonstrate at least a 10% reduction in embodied carbon compared to a functionally equivalent baseline and should pursue additional reductions where feasible.  

   

Additional mandatory requirements: 

1. For a Sustainable Municipal Buildings feasibility study, an early-stage assessment is acceptable, as most projects will not be at a Detailed Design or Construction Documents stage.
2. Applicants must follow the National wbLCA Practitioner’s Guide (Appendix B, Table 4), which limits analysis to the building’s structure and enclosure, including foundations, below-grade elements, structural frame, and exterior walls, roofs and floors. Applicants are encouraged, but not required, to also assess embodied carbon from other building systems (such as interior partitions and mechanical or electrical systems), provided these results are reported separately.
3. The embodied carbon analysis must be completed by a registered architect or professional engineer with a minimum of three years of experience in embodied carbon assessments. 

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