Innovative financing models – like Property Assessed Clean Energy (PACE) or utility on-bill financing – can help residents afford the high cost of energy upgrades and contribute to local greenhouse gas (GHG) emissions reductions. 
 
The City of Kingston, ON, has announced Better Homes Kingston – a local financing program that enables homeowners to pay back the cost of home-energy upgrades through a special charge on their property tax bill. The program intends to support upgrades for 20 to 50 percent of Kingston’s pre-1991 single-family homes by 2040, contributing to the city’s carbon-neutral goals. Tools and technical support are also available to guide homeowners through their home-energy retrofit journey. 

To strengthen the program’s design, the city identified which residents and what types of homes could benefit most from a local financing program. They also worked closely with program partners – including local utility providers and NGOs – to help inform the program’s marketing strategy and ensure that residents will be well-supported to make improvements to their homes. 

What you’ll learn from this video:

• High-level steps to implementing a home-energy upgrade financing program using the Local Improvement Charge (LIC) model
• Strategies for designing a program that best supports residents and your local context
• Techniques to help you understand the potential benefits of a program in your municipality

Hear from Julie Salter-Keane, Manager of Climate Leadership at the City of Kingston, as she discusses the City’s program implementation and their approach to designing a strong local program.

Read the transcript

More resources:

• Learn more about funding and training resources from our Community Efficiency Financing initiative
• Watch this introductory video on local home-energy financing programs
• City of Kingston – Better Homes Kingston website 
• News release – Canada and FCM invest in home energy retrofits in Kingston

Is your municipality in the process of developing a climate action plan for deep decarbonization? As an elected official or senior staff member, you may be involved with overseeing and championing your municipal climate action team as they plan and implement decarbonization efforts. As a senior leader, you play a key role in ensuring your municipality has a supportive governance structure to reach its deep emissions reduction targets.

Read this webpage to learn:

• The differences between corporate-level governance and community-wide governance
• The importance of good governance for deep decarbonization
• Key structural governance components for deep decarbonization and priority actions to implement them
• Examples from local governments that are implementing good governance

What is the difference between corporate-level governance and community-wide governance for deep decarbonization?

Corporate-level governance addresses greenhouse gas (GHG) emissions that are within a municipality’s control and can be conducted through municipal efforts alone. Within the municipality, the corporate-level governance structure affects communications, internal collaboration, and decision-making for GHG emissions reduction.

Community-wide governance addresses all GHG emissions within the municipal boundary and cannot be accomplished through municipal efforts alone. Deep decarbonization requires significant community investment and collaboration.

Both corporate-level and community-wide governance structures are critical for decarbonization planning and implementation. And while the same staff might support both, corporate-level governance and community-wide governance should be considered separately to enable independent monitoring, implementation and appropriate stakeholder involvement.

What are the key components of a good governance structure for deep decarbonization?

Corporate-level and community-wide governance structures have similar components. These are:

• Coordination and oversight
• Communication
• Monitoring and reporting
• An integrated approach
• Budgeting and financing

As outlined below, some of these components can be implemented in similar ways into both corporate-level and community-wide governance structures, while others will require different approaches.

Coordination and oversight

Who coordinates the climate action plan for deep decarbonization?

1. Corporate climate action plan: development and implementation is typically done by a climate change staff person or team. In smaller municipalities, it is common for climate change staff to be situated in the chief administrative officer’s office. This means that decisions made by climate change staff will have a direct influence on the entire organization and increases the likelihood that the overall municipal strategy or plan will be aligned with climate action plan.

Larger municipalities tend to have their climate team situated in various departments across the municipality. Each department takes ownership of and plays a key role in implementing the climate action plan. This makes it easier to pursue cross-departmental mandates and collaboration and enables knowledge sharing between policy and service departments. In this setup, the climate change team plays a supportive role in steering and overseeing progress toward deep decarbonization.

2. Community-wide climate action plan: Generally, a municipal-led secretariat or a third-party multi-stakeholder partnership/organization coordinates community-wide GHG emissions planning and reduction efforts. This includes enabling partner engagement and supporting the plan renewal process.

• Municipal-led secretariats should include key representatives from municipal government and external partner organizations.
• Third-party multi-stakeholder partnerships or organizations should include key representatives from utilities; Indigenous organizations; environmental non-governmental organizations; equity-seeking groups; chambers of commerce; and large employers from industry, commerce, institutions and other organizations relevant to the specific municipality. Typically, multi-stakeholder partnerships or organizations receive core funding or staff support from the municipality and reports to the municipal council.

Who oversees implementation of the plan?

Ideally, a diverse committee of internal actors from different departments would oversee the implementation of the corporate climate action plan. Depending on the municipality, these actors may include staff or managers from corporate services, finance, transportation, planning, or other relevant departments. FCM’s Municipal Climate Change Staff Guide can be used as a resource to identify potential internal actors and the type of support they may be able to offer to the internal oversight committee. This committee would likely also oversee the renewal process when it is time to update the corporate climate action plan. Oversight of the implementation of the community-wide climate action plan should be led by a multi-stakeholder entity (e.g., multi-stakeholder committee or board). However, ultimate oversight for all corporate plans rest with the municipal council.

Priority actions to implement effective coordination and oversight for deep decarbonization

Corporate-level governance

Community-wide governance

Situate the climate staff position(s) into the appropriate department(s) to influence change within the municipality and offer the necessary coordination. Identify an interdepartmental governing committee and internal technical group. Identify the responsibilities and mandate of the oversight committee (e.g., maintaining continuous momentum on decarbonization; aligning priorities, resources and funding to advance decarbonization efforts). Institute formal reporting to council.

Establish an entity (e.g., a municipal-led secretariat, a third-party organization) to coordinate community-wide GHG emissions planning and reduction efforts. Conduct a stakeholder assessment to ensure diverse representation on key committees. Identify a core leadership team of cross-sectoral representatives from key municipal and partner organizations to oversee the implementation of the community-wide plan. Identify the responsibilities of the oversight entity (e.g., maintain continuous momentum by partner organizations, align community-wide actions with targets, attract funding and investment to advance decarbonization efforts).

Examples of effective coordination and oversight for deep decarbonization

Corporate-level governance

• In the Town of Bauline, NL (population 475), climate change staff are part of the town manager’s office, enabling them to work directly with the chief administrative officer/town manager to implement the plan to decarbonize the electricity supply to 100 percent renewable energy. 
• The City of Vancouver, BC (population 631,486) has partially decentralized its decarbonization efforts by embedding responsibilities into various departments. The sustainability department steers the direction of the Greenest City Action Plan while each departmental team is responsible for implementing relevant climate action and strategies.

Community-wide governance

• ClimateActionWR is an organization funded by the Regional Municipality of Waterloo along with the cities of Waterloo, Kitchener and Cambridge (regional population 583,500) to implement climate change mitigation initiatives in the region. ClimateActionWR leads the creation and implementation of the community-wide climate action plan. The four municipal governments and two lead organizations (REEP Green Solutions and Sustainable Waterloo Region) form the management committee.

• In partnership with Sheridan College and the Region of Peel, the City of Brampton, ON (population 656,900) is setting up a Centre for Community Energy Transformation. This non-profit organization, at arm’s length from the city, will work with community residents, institutions, and local businesses to achieve Brampton’s GHG emissions reduction targets.

Communications

Communication is a key component of planning and implementing decarbonization action at the corporate level. Establishing formal and regular communication channels between various departments can build trust and transparency.

At the community-wide level, establishing formal communication channels enables information and knowledge exchange between all stakeholders and partners.

Ideas to improve communication include creating a website to encourage partner or public engagement, recognizing significant achievements, providing progress updates through e-newsletters and/or social media, offering training sessions, and arranging public or sector-specific information campaigns.

Priority actions to implement effective communication for deep decarbonization

Corporate-level governance

Community-wide governance

Establish a regular communication channel for information and knowledge exchange between departments. Establish a public consultation and information-sharing process and structure. Conduct staff training and profile success stories.

Establish regular communication channels to disseminate information and enable knowledge exchange among all stakeholders. Identify communication strategies to attract new partners who will commit to supporting decarbonization in their organizations. Offer training opportunities for capacity building (e.g., lunch and learn). Recognize significant undertakings or achievements (e.g., through awards or galas).

Example of effective communication for deep decarbonization

• The City of Montreal, QC (population 1,704,694) hosts mandatory online training on the carbon-neutral transition for its municipal staff and plans to create an expertise hub to promote knowledge-sharing for the municipality and local stakeholders. The city has also launched initiatives to recognize the efforts of municipal staff and highlight successes.

Monitoring and reporting

Monitoring and reporting can be implemented in similar ways in both corporate-level and community-wide governance structures. For example, a supportive governance structure for deep decarbonization would always include regular reports to council and a formal monitoring and reporting system to track progress, ensure accountability and enable adjustments as needed to meet 2050 climate targets.

Who monitors the corporate and community-wide climate action plans?

To varying degrees, monitoring of the corporate or community-wide climate action plan is done by the respective coordination team and oversight body. In larger municipalities that have multiple departments working on decarbonization, monitoring generally occurs in the individual departments and is reported to the oversight committee for consolidation.

How is progress on corporate-level and community-wide targets reported?

The municipality and its partners determine the frequency of reporting and adopt standardized performance indicators to report on progress toward corporate-level and community-wide targets. Progress on specific decarbonization initiatives, both within the local government and in partner organizations, is also reported.

Reporting on progress is often public and done at regular intervals. The focus of reporting is usually on GHG inventories and progress toward 2050 and interim climate targets, but it may also talk about decarbonization actions that have been taken; environmental, social or economic co-benefits that have been achieved; and indicator data such as citizen groups consulted. Integrating reports on climate mitigation into broader sustainability performance measurement can further show the interconnections between climate actions and other municipal goals.

Priority actions to implement effective monitoring and reporting for deep decarbonization

Corporate-level governance	Community-wide governance
Establish a formal internal reporting structure to track progress among various municipal departments. Use input and feedback from stakeholders to the improve monitoring and decision-making processes.	Adopt a standardized assessment framework and reporting structure to track emissions over time. Create a monitoring and reporting process to track community-wide actions and outcomes related to partner commitments.

Example of effective monitoring and reporting for deep decarbonization

• The City of Guelph, ON (population 131,794) is working to comply with ISO 50001 and use the ISO standard to optimize energy management system practices and ensure credibility and compliance. Community-scale GHG inventories will be updated annually. Our Energy Guelph reports quarterly to the city council on community-wide progress; three of the updates report on qualitative progress while the fourth provides updates on quantitative metrics. Progress toward the 2050 climate targets is reported and updated annually.

An integrated approach

To achieve deep emissions reductions at the corporate and community-wide levels, decarbonization efforts should be integrated into all municipal planning, services and operations. This can be referred to as embedding a “climate lens” throughout the organization.

At the community-wide level, municipalities and other stakeholders can work collaboratively to align organizational initiatives with community-wide climate targets. Community stakeholders and potential partners can also identify areas where they can take action in their organizations. Sector-specific multi-stakeholder working groups and/or joint projects are a common approach to identify sector-specific emissions reduction opportunities.

In addition to incorporating a climate lens, inclusivity and equity should also be embedded into municipal plans. Aligning social and environmental goals with corporate and community-wide decarbonization efforts and plans can help address potential equity deficits.

Priority actions to integrate deep decarbonization efforts into governance structures

Corporate-level governance

Community-wide governance

Establish cross-departmental implementation in the organization. Strategically align decarbonization efforts with the municipal strategy and plan. Adopt a climate lens for decision-making in all municipal departments and integrate other priorities with climate actions. Integrate asset management and the decarbonization plan. Develop a carbon budget. Identify areas where strategies and initiatives can be implemented in each department.

Identify stakeholders and potential partners who can take action in their organizations. Launch sector-specific, multi-stakeholder working groups. Establish a collaborative process to undertake joint decarbonization actions.

Examples of an integrated approach to deep decarbonization

Corporate-level governance

• The City of Guelph, ON (population 131,794) continues to work on integrating a climate lens in all city departments for decision-making through the “Sustaining our Future” pillar of its corporate strategic plan. 
• The City of Toronto, ON (population 2,956,024) is developing a climate lens that evaluates the climate impact of all major decisions, including financial decisions, made by the city.
• The City of Montreal, QC (population 1,704,694) has adopted a climate test strategy, similar to the climate lens, to minimize GHG emissions and maximize climate adaptation in all city decisions.
• The Town of Whitby, ON (population 128,377) hired the Sustainability Solutions Group to develop a carbon budget and carbon management framework. Titled Zero Carbon Whitby, the framework will help the town reach its corporate carbon goal of net-zero by 2045.

Community-wide governance

• Our Energy Guelph, in Guelph, ON (population 131,794), implemented a collaborative governance structure for community-wide implementation, where each action is implemented by a task force that has representation from community organizations, businesses and the municipality.
• The City of Victoriaville, QC (population 47,796) collaborated with the Chamber of Commerce, Economic Development Corporation, Cégep de Victoriaville, the University of Quebec and other community organizations to advance climate-related projects.
• The City of Saskatoon, SK (population 245,181) engaged the public and other stakeholders to design a Home Energy Loan Program (HELP). Through the Retrofit Roundtable, a collaboration with the Saskatoon & Region Home Builders' Association, the city engaged the building industry, mechanical trades and the realtors' association to identify how these stakeholders could inform and use the program.
• 

Budgeting and financing

Implementing a deep decarbonization plan requires internal and external funding. Along with tax revenue and provincial and federal funding, other options include revolving funds, public/private investments and green bonds. In addition, decarbonization initiatives should be planned ahead of the budgeting cycle and resources and funding aligned with current and future climate objectives.

Corporate-level governance

Community-wide governance

Align with the budgeting cycle to fund initiatives and projects. Establish a revolving fund for capital projects. Adopt lifespan costing and commit to projects with a longer timeframe. Consider innovative funding options such as public/private partnerships and green bonds.

Identify opportunities for private sector investment (e.g., electric vehicle charging stations). Encourage partners to fund internal initiatives that further community-wide goals (e.g., greening their fleet). Encourage corporate partnerships (e.g., solar installation by one company on another company’s roof; electric vehicle charging stations by one company on another company’s property). Provide core funding for multi-stakeholder entities.

Municipal examples of effective budgeting and financing for deep decarbonization

• Since 2011, the City of Markham, ON (population 353,000) has had strategies to reinvest financial savings from emissions reductions directly into upcoming energy conservation and climate mitigation projects.
• The City of Toronto, ON (population 2,956,024) established a green debenture program to finance or refinance new and existing capital projects that contribute to environmental sustainability.
• The Town of Bauline, NL (population 475) re-allocated some of its budget and invested provincial and federal funding in renewable energy infrastructure.

Assess your current governance structure

The questions below can help you and other members of your municipal climate action team reflect on and assess your governance structure for deep decarbonization

• How are you involved in the decarbonization planning process? How do you intend to be involved in decarbonization governance of your municipality?
• Are you involved in municipal climate action networks for local leaders (e.g., Climate Caucus)? If you are already a member, have you shared your learnings with other senior leaders and members of your municipal climate action team? Does your corporate-level or community-wide governance structure address the five governance components, namely coordination and oversight, communication, monitoring and reporting, integrated approach to decarbonization, and budgeting and financing?
• Where are climate staff situated in your municipal structure? Is this the ideal location to support coordination, communication, monitoring and action?
• If you are in a medium to large size municipality, is there a cross-departmental group overseeing the progress and implementation of the corporate climate action plan?
• What barriers do you face in implementing your plan? Is your community-wide governance structure set up to address these barriers? Does it include a diverse range of stakeholders?
• Does your governance structure allow for continuous improvement if adjustments are needed to achieve your targets?

Key terms

Climate lens: A perspective that adds consideration of climate impacts into planning and approval processes. Using a carbon budget is one tool to bring a climate lens to municipal decision-making.

Corporate climate action plan: A plan that focuses on reducing GHG emissions that are directly controlled by the local government (e.g., municipal operations and fleets).

Community-wide climate action plan: A plan that focuses on reducing GHG emissions within the boundaries of the community, requiring commitment and effort from many actors in the community.

Deep decarbonization: The process of reducing carbon dioxide and other GHG emissions at a rate that ensures net-zero emissions at the community level by the year 2050 and significant reductions by 2030.

Deep decarbonization plan: A corporate or community-wide climate action plan that aims for at least 80 percent reduction of GHG emissions by 2050. (Note: Although the word carbon (in the sense of carbon dioxide equivalent) is often used, all GHGs are considered as part of deep decarbonization plans and carbon neutrality goals.

Stakeholders: Persons or groups who are directly or indirectly affected by a project. They may also have interests in the project or influence positive or negative) on the project outcome.

Equity-seeking groups: Communities that experience significant systemic barriers to participating in society; these are often barriers to equal access to opportunities and resources due to systemic discrimination. The barrier may be due to factors such as age, ethnicity, race, nationality, disability, gender, sexual orientation, nationality, or economic status. It is important that communities include diverse groups in their decision-making to make meaningful and just decisions about their governance approach.

Municipal carbon budgeting: A tool that tracks GHG emissions with municipal finances, where municipalities create a carbon budget within which their GHG emissions must fit. A carbon allocation is added to each proposed project and ongoing operational cost to assess its climate mitigation potential against the municipality’s remaining carbon budget. This approach holds municipalities accountable for their long-term climate targets and allows for transparent and accurate monitoring of decarbonization efforts.

About this factsheet

This factsheet was created through a partnership between FCM’s Municipalities for Climate Innovation Program (MCIP) and the University of Waterloo’s Dr. Amelia Clarke and Ying Zhou. The information is based on literature reviews and interviews with 11 partner organizations and 51 local governments that were part of MCIP’s Transition 2050 (T2050) initiative. T2050 provided grants to regions of all sizes in Canada to help them reach significant carbon emissions reduction targets.

The factsheet also draws on Deep Decarbonization in Cities: Pathways, Strategies, Governance Mechanisms and Actors for Transformative Climate Action, by Samantha Hall Linton.

Has your municipality identified decarbonization pathways (sectors and solutions) for your community? Are you looking for effective policies, programs and approaches to support your approach? As an elected official or senior staff member, you will need a suite of tools to help your community achieve its goals. This factsheet can help you understand the strategies that are available.

Read this webpage to learn:

• Governance strategies (policies, programs and processes) to support sector-specific climate targets
• The difference between a consultative and a collaborative governance approach, and which one you may want to choose for each decarbonization sector
• Examples from local governments that have implemented various governance strategies for deep decarbonization

About this factsheet

This factsheet was created through a partnership between FCM’s Municipalities for Climate Innovation Program (MCIP) and the University of Waterloo’s Dr. Amelia Clarke and Ying Zhou. The information is based on literature reviews and interviews with 11 partner organizations and 51 local governments that were part of MCIP’s Transition 2050 (T2050) initiative. T2050 provided grants to regions of all sizes in Canada to help them reach significant carbon emissions reduction targets.

The factsheet also draws on Deep Decarbonization in Cities: Pathways, Strategies, Governance Mechanisms and Actors for Transformative Climate Action, by Samantha Hall Linton.

Are you an elected official or senior staff member who wants to help your municipality significantly reduce its greenhouse gas (GHG) emissions? Are you intrigued by the idea pursuing net-zero emissions by 2050? If your community has taken steps to reduce emissions but still needs a climate action plan that takes a decarbonization approach, this factsheet can help.

Read this webpage to learn how local governments can influence their community’s transition to deep decarbonization. You’ll discover:

• Priority pathways for deep emissions reductions
• How municipalities can influence GHG emissions reductions
• How Canadian municipalities are reducing GHG emissions
• Success factors to reach municipal climate targets

Key terms to understand the deep decarbonization process

Net-zero emissions (or carbon neutrality): Are achieved when human-caused (or anthropogenic) GHG emissions are balanced by an equivalent removal of GHG emissions from the atmosphere over a specific period. Achieving a net-zero balance requires significant reductions in GHG emissions, while the last small percentage can be achieved through carbon sinks (e.g., forests, wetlands, oceans, soil) that absorb more carbon than they emit.

Corporate climate action plan: A plan that focuses on reducing GHG emissions that are directly controlled by the local government (e.g., municipal operations and fleets).

Community-wide climate action plan: A plan that focuses on reducing GHG emissions within the boundaries of the community, requiring commitment and effort from many actors in the community.

Deep decarbonization: The process of reducing carbon dioxide and other GHG emissions at a rate that ensures net-zero emissions at the community level by the year 2050 and significant reductions by 2030.

Deep decarbonization pathways: The electricity, building, transportation, waste, land use and agricultural sectors are priority pathways for establishing policies and other solutions to advance climate action. The relative contribution of each sector toward community-wide emissions can vary significantly depending on the municipality’s economic base, urban form, density, wealth and sources of electricity in the grid.

Deep decarbonization plan: A corporate or community-wide climate action plan that aims for at least 80 percent reduction of GHG emissions by 2050. (Note: Although the word carbon (in the sense of carbon dioxide equivalent) is often used, all GHGs are considered as part of deep decarbonization plans and carbon neutrality goals.)

Embodied carbon: GHG emissions of a material released from the extraction of raw resources to its end-life. In an infrastructure project, embodied carbon includes emissions from raw material extraction, manufacturing, transportation, and emissions associated with construction and demolition practices. Embodied carbon does not include carbon emissions from use and operations.

Backcasting: An approach that focuses on defining a desired carbon neutral future for a community and then working backwards to identify all the necessary actions to achieve this vision.

Municipal carbon budgeting: A tool that tracks GHG emissions with municipal finances, where municipalities create a carbon budget within which their GHG emissions must fit. A carbon allocation is added to each proposed project and ongoing operational cost to assess its climate mitigation potential against the municipality’s remaining carbon budget. This approach holds municipalities accountable for their long-term climate targets and allows for transparent and accurate monitoring of decarbonization efforts.

Climate lens: A perspective that adds consideration of climate impacts into planning and approval processes. Using a carbon budget is one tool to bring a climate lens to municipal decision-making.

What are the priority pathways to achieve deep decarbonization?

Electricity

Consuming renewable energy produced by the electricity sector is an essential alternative to fossil fuels. More electrification and fuel shifts for heating buildings and in transportation can stimulate investment in renewable energy.

Buildings

Decarbonization solutions for the building sector include reducing carbon emissions over the life cycle of the asset. This can be done by, for example, increasing building efficiency through good design, decarbonizing heating systems through retrofits of old buildings and ensuring new buildings have low or zero carbon emissions.

Transportation

Shifting toward active (e.g., walking, cycling) and public transportation, and moving to electric vehicles or other zero-emission vehicles can significantly reduce transportation-related GHG emissions.

Waste

Transformations in the waste sector include reducing waste to landfills and investing in technologies to capture emissions from waste treatment processes.

Nature-based solutions

Nature-based solutions include increasing carbon sinks through urban forests and wetlands, and adopting sustainable agriculture. As municipalities continue to adopt ambitious emissions reduction targets, many are using local carbon sinks and carbon offsets to achieve decarbonization goals. Effective land use planning for green space and protection of ecological services is a consideration for urban carbon sinks.

• Sustainable agriculture
  
  Sustainable land use in agriculture can increase the carbon sink capacity of agricultural land. This includes improving soil management through soil conservation and carbon sequestration practices, implementing crop rotations, decreasing bare fallow and establishing agroforestry systems.
  
  In addition, using ecological farming practices such as reducing fertilizer inputs, adjusting livestock feed to reduce emissions from digestive systems and capturing methane emissions from manure can significantly reduce GHG emissions.
  
  Food choices also play a role. Policies and strategies to promote sustainable and local food choices can decrease emissions from waste and transportation sectors and help create equitable access to sustainable food options for low-income citizens.

How can municipalities influence deep decarbonization?

Many municipalities in Canada have developed both corporate and community-wide climate action plans in response to climate change.

• Corporate climate action plans focus on reducing emissions from activities that are within the control and direct influence of the local government (i.e., the "corporation").
• Community-wide climate action plans focus on reducing GHG emissions, including industrial and residential emissions, within the municipal boundaries.

The primary focus for most municipalities is on reducing corporate emissions and furthering community-wide deep decarbonization efforts, especially when federal and provincial initiatives are not achieving sufficient reductions on their own. Knowing what they control directly helps municipalities determine how to structure their corporate climate action plan and their community plan. Federal/provincial policies and initiatives as well as business products and services have a direct impact on helping municipalities and local stakeholders achieve corporate and community-wide emissions targets.

This graphic shows municipal spheres of influence over different sources of GHG emissions. It can be adapted to each local context.

Municipal spheres of influence over different sources of GHG emissions

Which sources of GHG emissions are included in deep decarbonization plans?

When it comes to measuring and reporting GHG emissions, most deep decarbonization plans in Canada focus on two categories of GHG emissions:

1. Direct GHG emissions generated from within the municipality
2. Indirect emissions associated with the purchase of grid-supplied energy

The Greenhouse Gas Protocol (GHG Protocol) identifies these as Scope 1 and Scope 2 emissions respectively. Increasingly, Scope 3 emissions are also being considered. This third category includes all other indirect GHG emissions that occur outside the municipal boundary due to consumption or investment by people within the municipality. The three scopes can be used in corporate and community-wide climate action plans to categorize sources of GHG emissions.

Sources and boundaries of municipal GHG emissions

Leading edge deep decarbonization plans are also starting to consider embodied carbon, which is the total GHG emissions associated with a material over the product’s lifecycle. For example, embodied carbon in an infrastructure project includes emissions from the extraction, manufacturing and transportation of building materials, as well as emissions associated with construction and demolition. Embodied carbon is separate from operational carbon, which is GHG emissions resulting from the use and operation of built infrastructure.

What commitments are Canadian municipalities making to decarbonize?

In 2018, the Intergovernmental Panel on Climate Change (IPCC) determined that a 45 percent reduction in global GHG emissions is required by 2030 (based on 2010 levels) and carbon neutrality is required by 2050, to limit global warming to 1.5 degrees Celsius. The IPCC report, released in August 2021, reinforces the urgent need to rapidly reduce global GHG emissions on a large scale. In Canada, the federal government has pledged to carbon neutrality (or net-zero) by 2050, and a 40 to 45 percent reduction in GHG emissions below 2005 levels by 2030. Across Canada, approximately 500 municipalities have declared a climate emergency, and many have adopted the federal GHG emissions reduction targets (see Random Acts of Green) .

Nearly 500 Canadian municipalities have committed to the Partners for Climate Protection (PCP) program developed jointly by ICLEI–Local Governments for Sustainability Canada (ICLEI Canada) and FCM. The PCP program’s five-step milestone framework guides municipalities as they take action to reduce GHG emissions. Additionally, over 50 municipalities are members of the Global Covenant of Mayors for Climate & Energy in Canada (GCoM), a collaboration between FCM, ICLEI Canada, the GCoM Secretariat, and the European Union. Like the PCP program, GCoM signatories commit to taking specific action to combat climate change.

PCP member municipalities are required to set locally relevant emissions reductions targets, and many have revised their targets to at least an 80 percent reduction in GHG emissions by 2050, with varying baseline years. Recently, some have set an even more ambitious goal of carbon neutrality by 2050.
 

What steps can Canadian municipalities take to decarbonize?

To achieve deep decarbonization, we suggest municipalities use the PCP framework and pursue additional steps. This table provides an overview of suggested actions that Canadian municipalities can implement and the current state in Canada as of 2020. Information in the current state in Canada column was partly derived from interviews with 11 partner organizations and 51 local governments engaged in MCIPS’s Transition 2050 (T2050) initiative.

PCP framework (applies to corporate and community-wide climate action planning)	Suggested steps for deep decarbonization	Current state in Canada (as of 2020)
Sign up to be a PCP member	Recognize the urgent need to address climate change and declare a climate emergency.	More than 500 municipalities in Canada have declared a climate emergency. All municipalities that were interviewed recognize climate change as one of the pressing issues in their community.
Milestone 1: Complete a GHG emissions inventory and business-as-usual emissions forecast for the next 10 years	Use the GHG Protocol to calculate scope 1 and scope 2 emissions. Identify 2050 community-wide climate targets and work backwards to determine the remaining carbon budget (back-casting approach).	While most municipalities that were interviewed have conducted a corporate GHG inventory, a community-wide GHG inventory, or both, only some have adopted a back-casting approach to determine the allowable amount of additional emissions for the community.
Milestone 2: Set emissions reduction target	Set ambitious short- and long-term climate targets, in line with the latest science (i.e., carbon neutrality by 2050, and 45% reduction from 2010 levels by 2030).	Most municipalities that were interviewed have adopted ambitious corporate and community-wide GHG emissions reduction targets and interim targets. Most are aiming for an 80% reduction in GHG emissions by 2050, with varying baseline years, or for carbon neutrality.
Milestone 3: Develop a local action plan	Identify priority areas and sectors, and significant GHG emissions reduction opportunities. Adopt a back-casting approach using climate scenario modelling to identify GHG reduction trajectories that will lead to carbon neutrality. Align climate action plans with other departmental plans. Engage the appropriate stakeholders and partners during the planning phase.	All municipalities that were interviewed have recently completed or are in the process of developing climate action plans that often include both a corporate and a community-wide plan. Most still need to consider how to align their decarbonization plans and actions with municipal services and operations, budgeting, strategic priorities and direction, and the identified GHG reductions trajectory of the community.
Milestone 4: Implement the local action plan(s)	Dedicate a climate change staff person or team to support implementation of the plan. Establish an appropriate governance structure to implement the plan.	Only a few of the municipalities that were interviewed have begun to implement their plans, and most lack a clear implementation plan and have yet to develop appropriate governance structures for the implementation stage.
Milestone 5: Monitor progress and report results	Support a cross-departmental entity to oversee corporate efforts and a cross-sector entity to oversee community-wide efforts. Establish a consistent, long-term reporting structure for progress on community-wide decarbonization.	Most of the municipalities that were interviewed need to increase their efforts to formally monitor and report on progress of their community-wide decarbonization efforts.
Ensure continuous improvement	Recognize that deep decarbonization requires a cyclical management system that includes updating the plan and interim targets approximately every five years.	The deep decarbonization plans and planning cycles for many of the municipalities that were interviewed build on their earlier commitments and initiatives, putting them in a cycle of continuous improvement.

What are key success factors for deep decarbonization?

Canadian municipalities often encounter multiple barriers as they work to meet their corporate and community-wide GHG emissions reduction commitments. The table below shows key success factors for municipalities in reaching climate targets, as identified by T2050 initiative participants, along with suggested actions to help climate action teams work toward decarbonization. Depending on the municipality, members of the climate action team might include elected officials, senior management and community leaders.

Key success factors	Suggested actions for municipal climate action teams
Gather support from senior management and council	Encourage participation in networks such as the GCoM, PCP, Climate Caucus, and those of other national, provincial and/or local non-governmental organizations. Share resources and training from FCM, Canadian Institute for Climate Choices, QUEST, and other similar organizations. Identify and support a climate champion on council to encourage climate action. Ensure access to data to monitor progress on the achievement of interim targets.
Build community support	Collaborate with climate champions (e.g., elected officials, academics, community activists, business leaders) in the community to promote climate and decarbonization initiatives Ensure equity, diversity, inclusion and meaningful participation of equity-seeking groups in all decision-making processes. Craft messages to convey the co-benefits of decarbonization and the cost of inaction. Support community groups working on climate action.
Understand and communicate the comparative cost of fossil fuel vs renewable energy sources	Use scenario forecasting and climate budgeting to estimate long-term cost options, including maintenance and an increasing price on carbon. Calculate the return on investment and savings from potential investments in renewable resources. Calculate the true cost of using fossil fuels, including the health impacts.
Align resources and finances with climate objectives	Explore financing mechanisms such as green bonds. Collaborate with neighbouring municipalities to jointly apply for funding and investment. Strategically align climate initiatives with municipal operations and services. Join international or regional networks working on climate change capacity building. Budget for decarbonization actions in upcoming budget cycles to ensure continuity of climate actions and decarbonization efforts. Reduce redundancy in climate-related programs. Adopt a long-term perspective to budgeting and resource allocation, and consider long-term costs for non-action versus immediate acquisition cost.
Align corporate operations with climate objectives	Adopt change management strategies and promote change within the corporate culture. Establish a clear mandate to work on climate change. Ensure decision-making considers climate change and aligns with climate targets and actions. Increase cross-departmental collaboration by establishing an internal working group. Use climate action staff or teams as facilitators to bring a climate lens into other departments.  Introduce a climate budget as part of the accounting and auditing processes.
Gather support from other orders of government	Increase advocacy efforts to all orders of government and political sectors.

Next steps for municipal climate leaders

Here are some suggestions on how you can get started on the path to deep decarbonization.

• Sign up to be a member of the Partners for Climate Protection (PCP) program.
• Review your local GHG reduction targets for alignment with science-based targets.
• Consult with community members and senior municipal leaders on the decarbonization pathways that are right for your municipality.
• Use GMF’s Municipal Energy Roadmap to identify targeted solutions to achieve significant GHG emissions reductions in municipal and community buildings.
• Join municipal climate action networks like Climate Caucus.

Resources for decarbonization planning

Examples of corporate and community-wide plans with ambitious 2050 climate targets:

• City of Bridgewater: Community Energy Investment Plan
• City of Guelph: Community Energy Initiative
• City of Halifax: HalifACT
• City of Montreal: Climate Plan 2020 – 2030
• City of Toronto: TransformTO
• City of Vancouver: Greenest City Action Plan; Climate Emergency Action Plan
• Region of Durham: Durham Community Energy Plan 

Examples of PCP compliant climate action plans across Canada

Tools, reports and programs:

• Infrastructure Canada: General guidance on adopting a climate lens
• C40 Knowledge Hub: Climate budget approach
• C40 Climate Action Planning Resource Centre: Consumption-based GHG emissions
• University of Waterloo: Amelia Clarke’s research on climate mitigation and decarbonization
• Carbon Leadership Forum: Embodied Carbon in Construction Calculator (EC3) tool
• GHG Protocol: Global Protocol for Community-Scale Greenhouse Gas Emission Inventories
• QUEST: Smart Energy Communities Benchmark
• Samantha Linton, Amelia Clarke and Laura Tozer: Strategies and Governance for Implementing Deep Decarbonization Plans at the Local Level
• Smart Prosperity Institute: Sustainability Alignment Manual: Using market-based instruments to accelerate sustainability progress at the local level
• CUSP: Energy Poverty and Equity Explorer tool

Climate networks and organizations:

• C40 Network
• Canadian Institute for Climate Choices
• Canadian Urban Sustainability Practitioners
• Carbon Neutral Cities Alliance
• Clean Air Partnership
• Climate Caucus
• Farmers and Climate Solutions
• Global Covenant of Mayors in Canada
• Partners for Climate Protection (ICLEI Canada and FCM)
• QUEST
• Smart Prosperity Institute
• The Natural Step Canada
• Vivre en Ville

About this factsheet

This factsheet was created through a partnership between FCM’s Municipalities for Climate Innovation Program (MCIP) and the University of Waterloo’s Dr. Amelia Clarke and Ying Zhou. The information is based on literature reviews and interviews with 11 partner organizations and 51 local governments that were part of MCIP’s Transition 2050 (T2050) initiative. T2050 provided grants to regions of all sizes in Canada to help them reach significant carbon emissions reduction targets.

The factsheet also draws on Deep Decarbonization in Cities: Pathways, Strategies, Governance Mechanisms and Actors for Transformative Climate Action, by Samantha Hall Linton.

Is your municipality looking to drive climate action by reducing greenhouse gas emissions in municipally-owned buildings, but is unsure how to maximize time and impact, secure funding and partnerships, or how to get started?

FCM’s Climate Action Accelerator for Community Buildings will help up to 20 small and mid-sized municipalities take climate action within their building portfolios. Municipalities will advance a community building retrofit project idea or portfolio of projects—from concept ideation to planning—for project readiness and launch. This exciting three-day series will be led by the Climate and Cities team from MaRS Discovery District.

When is the Climate Action Accelerator?

This virtual workshop will run from 12-4 p.m. ET over three days, on the following dates:

• Wednesday, February 2, 2022
• Monday, February 7, 2022
• Wednesday, February 9, 2022

What you’ll get by participating

• Valuable tips and tools on how to get your project through the conception hurdles to be launch-and-pitch ready.
• 12 hours of project coaching and peer input through tried, tested and successful methodology for project ideation and development;
• Content across the three days will focus on:
  • Day 1 - Discussing municipal climate goals, retrofit project challenges and ideation
  • Day 2 - Identifying innovative opportunities to overcome barriers and get started
  • Day 3 - Creating pathways and partnerships - from ideation to action and implementation
• A team-created portfolio of building retrofit projects for your municipality with identified goals, barriers and enablers that support moving the projects forward; and
• A team-created community building retrofit Project Concept and Brief, ready to move forward to be funded and executed, either through FCM or via other funding opportunities.

Got questions? Please contact Sharon Levitsky, Project Coordinator, Capacity Development, Green Municipal Fund (GMF)