Expanded opportunities for investment in local sustainability

Investment in local sustainability

The Federation of Canadian Municipalities’ Green Municipal Fund (FCM’s GMF) is one of Canada’s leading funders and investors in local sustainability and climate action. GMF facilitates investors’ access to risk-adjusted investment opportunities and connects them with fast-growing borrower markets across Canada.

GMF unlocks strong return potential from scalable investments in high-quality assets, helping communities and capital markets build for a climate-resilient future.

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$1.9 billion

invested in Canadian communities

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2,700+

sustainability projects

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$1.53 B

contributed to national GDP

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16K+

person-years of national employment

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$853 million

of national wages and salaries paid to households

A robust pipeline of high-impact, bankable projects

High-impact sustainable investments

With over $1.9 billion invested in more than 2,700 sustainability projects across Canada since 2000, GMF connects private investors with municipalities and their partners to scale climate and sustainability solutions. 

GMF provides bankable, risk-adjusted investment opportunities that generate strong returns, drive local economic growth, and build more resilient communities — delivering long-term financial, social, and environmental benefits. 

Partner with GMF to access a national pipeline of scalable, investment-ready projects with strong return potential and measurable impact.

Investing in resilience

Investment in local sustainability
Essential, high-impact opportunities with strong value potential

Investing in resilience projects that protect assets is a smart, future-ready investment in opportunities that mitigate risk and provide stable financial returns while supporting thriving, sustainable communities.

Partner with GMF to access a national pipeline of structured, high-impact resilience projects.

Innovative investment partnerships : Access proven solutions led by sustainability funders and invest in local projects creating business opportunities and community impact.

Blended finance model : GMF uses catalytic capital to mobilize private investment for high-impact municipal projects, providing innovative financing tools and patient capital with efficient transaction costs.

Scalable projects : GMF connects investors to sustainability and resilience projects that generate strong returns, with every dollar invested delivering $13–15 in total benefits.

Structured, risk-adjusted opportunities : Programs like Property Assessed Clean Energy (PACE) offer reliable performance and measurable financial, social, and environmental returns.

Portfolio diversification : Integrating resilience investments strengthens long-term performance and aligns with sustainability goals.

Explore successful GMF-powered investments

Community Efficiency Financing

Investment in local sustainability

$263M approved to date: CEF is Canada’s only national program supporting municipalities and their partners to invest in home energy-efficiency retrofits for residents.

Risk-adjusted investment opportunities through high-quality models like Property Assessed Clean Energy (PACE), establishing scalable and enduring financing solutions across the country.

Measurable impact with strong investment potential: PACE adoption has attracted $70M+ in private follow-on investment and continues to expand across Canada.

Unlocking broader private capital through regional partnerships, providing secure, scalable opportunities for investors.

Background

The Region of Waterloo in southern Ontario treats its wastewater at a number of plants including the three largest: Waterloo, Kitchener and Galt.  These three plants produce 13,000 to 22,200 cubic metres of methane-rich biogas per day (equivalent to the carbon footprint of 2,700 people) as a byproduct of processing. They use some of this biogas to produce heat for their own use, while flaring off excess biogas and purchasing electricity from the grid for their energy needs. 

As the Region’s population grows, the amount of wastewater is expected to increase, leading to higher electricity consumption and emissions created from flaring biogas—both of which are contrary to the Region’s mandate to improve air quality, reduce greenhouse gas emissions and produce and use renewable energy. Electricity costs in Ontario are also expected to rise, increasing municipal costs. The Region saw these projections as an opportunity to upgrade facility infrastructure to better align with climate change–related goals and help in the transition toward net zero. 

Project goals

The Region planned to lower electricity costs and eliminate biogas flaring by installing dual-fuel (biogas and natural gas) cogeneration facilities at all three wastewater treatment plants. These facilities would utilize 100 percent of their biogas and reduce emissions.

Approach

The planning phases for the project involved projecting population growth (and the corresponding increase in wastewater quantities) and determining how that would affect the plants’ capacities and electricity and heat requirements. Modelling suggested that while the cogeneration facilities would initially use natural gas as a supplement, the proportion of natural gas needed would decrease as additional wastewater and therefore biogas became available.

One key idea was to coordinate facility capacity with population growth over the equipment’s estimated 20-year lifespan to maximize biogas usage and reduce emissions, rather than matching their capacity to current biogas availability.

After consulting with community members and other stakeholders, the Region designed and constructed the project. They completed and brought the cogeneration facilities online in 2022.

Results

Upon project completion, the Region began monitoring and optimizing performance. They diverted all biogas into the new system, eliminating that source of emissions while also creating electricity and heat, providing an annual savings of $1.5 million and approximately 1,900 tons of carbon dioxide equivalent (tCO2e). Over the 20-year lifespan of the facilities, the Region forecasts overall net savings of more than $16 million and 38,000 tCO2e.

The project won a 2022 Award of Excellence at the Canadian Consulting Engineering Awards.

Lessons learned

This project was highly complex both technically and contractually. The Region found it helpful to have a single contractor responsible for all three facility installations to find efficiencies and learnings throughout the development process. For instance, they redirected workers from site to site as needed to minimize downtime.

Working with multiple facilities also meant working with multiple electricity distribution companies. Fully understanding the differences between various local connection requirements and approval processes from the outset would have helped avoid delays.

Better understanding how the gas conditioning and cogeneration systems interface with each other would made it easier for operations staff to troubleshoot issues and seek technical support.  Entering a long-term service agreement with the gas conditioning supplier, like the one with the cogeneration supplier, may also have been beneficial.

A certain amount of technical troubleshooting related to with thermal efficiencies was required at system launch, which could have been avoided with a clearer understanding in advance of how the hot water loop systems were set up.

Next steps

The facilities are now in operation and ready to utilize current biogas levels as well as increased levels in the future as the population grows. As the amount of available biogas increases, the need for natural gas required will decrease—until eventually, there might be minimal to no need for it at all.
 

Outdoor view of three tall metal tanks mounted to concrete, with ladders for access.

Want to explore all GMF-funded projects? Check out the Projects Database for a complete overview of funded projects and get inspired by municipalities of all sizes, across Canada.

Visit the projects database

Available funding

We support projects at various stages of development through grants and loans. Funding amounts are based on total eligible costs. Further details on eligible costs are provided on individual funding pages.

Business case: Organic Waste-to-Energy

Funding to assess viable waste-to-energy systems and business models

Read more

Study: Organic Waste-to-Energy

Funding to outline the design of new organic waste-to-energy plants and systems

Read more

Capital project: Organic Waste-to-Energy

Funding to construct, commission and begin operation of an organic waste-to-energy system

Read more

Innovation in construction: ENBIX's role in advancing emissions-neutral buildings

Launched in December 2023, the Emissions-Neutral Buildings Information Exchange (ENBIX) brings together partners to reduce greenhouse gas emissions in the construction, renovation and operation of buildings. Hosted by the Alberta Ecotrust Foundation and their local LC3 Centre the Climate Innovation Fund, this initiative is accelerating the transition to an emissions-neutral built environment for new and existing buildings across Alberta.  

The new initiative promotes sharing of innovative ideas, solutions, best practices and lessons among interested parties in the building and construction ecosystem, providing information on industry training opportunities, bringing together peer groups and zeroing in key topics like embodied carbon. It is industry-governed, with foundational support from the City of Calgary, the Calgary Construction Association, the City of Edmonton and its Emissions-Neutral Building Industry Advisory Group, and the Smart Sustainable Resilient Infrastructure Association.   

ENBIX is based on similar models including British Columbia’s Zero Emissions Building Exchange (ZEBx) hosted by ZEIC, the Metro Vancouver region’s LC3 Centre. During the development of ENBIX, ZEBx provided lessons learned from their early years of operations including information about the relationship between ZEBx and industry partners in BC.  

Meanwhile, the Halifax LC3 Centre, the Halifax Climate Investment, Innovation and Impact Fund (HCi3) has provided $80,000 in funding for another multi-party building exchange program that is preparing Nova Scotia’s building sector for a net-zero future. The Building to Zero Exchange (BTZx) is now live, growing capacity to scale up the creation of high-performance buildings.  

With three advanced energy performance building exchanges now launched, we have critical building industry experience being actively facilitated locally and across the LC3 Network  

Want to explore all GMF-funded projects? Check out the Projects Database for a complete overview of funded projects and get inspired by municipalities of all sizes, across Canada.

Visit the projects database

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