| Recipient information | Green Municipal Fund (GMF) |
|---|---|
| Start date | March 31, 2000 |
| End date | Ongoing |
| Link to departmental results |
Clean technologies and energy efficiencies enhance economic performance |
| Link to department’s Program Inventory | Energy Efficiency |
| Purpose and objectives of transfer payment program |
The GMF is a revolving fund administered by the Federation of Canadian Municipalities (FCM). It provides municipalities and municipal partners with grants, loans, and loan guarantees to encourage innovative environmental municipal projects. The Government of Canada provided the FCM with a total of $2,155 millionFootnote 1 for this initiative through a series of budget decisions beginning in 2000 through to 2024. Each investment was provided as an up-front multi-year payment, with a portion of funds provided as concessional for granting and operating expenses. FCM is responsible for maintaining a nominal value of at least $1,087.5 million for the GMF endowment. The GMF was established to enhance Canadians’ quality of life, while delivering economic and social benefits to communities. Eligible projects may take the form of plans, feasibility studies, pilot projects, and capital projects. The GMF Core Offer was renewed in 2024 to provide targeted support to municipalities for sustainable municipal buildings, community energy systems, fleet electrification, and organic waste-to-energy projects. The Budget 2019 investment targeted energy efficiency through three new streams: Sustainable Affordable Housing, Community Efficiency Financing, and Community Buildings Retrofit. The GMF also houses the National Office for the Low Carbon Cities Canada (LC3) Network. FCM provided grants to seven climate centres in major cities across Canada, for each centre to establish its own endowment from a total envelope of $177 million. The Funding Agreement commits GMF to provide grants for between $12 and $60 million dollars and loans for between $50 and $170 million for municipal projects each year. Since 2025-26 GMF is providing between $20 and $70 million in grants up to a total of $355 million to support the Local Leadership for Climate Adaptation (LLCA) initiative. Funding supports projects with environmental benefits or innovation, while considering economic and social impacts. For eligible studies, assessments, plans, and pilots: grants cover up to 80% of eligible costs. For exceptional eligible projects: grants, loans (fixed rates up to 30 years at least 2% below the equivalent Government of Canada bond rate), and/or loan guarantees may be provided. In such cases, grants may not exceed 50% of eligible costs. The FCM’s two advisory bodies are the GMF Advisory Council and the Peer Review Committee. The GMF Council advises the FCM Board on municipal project approvals and includes 16 members, including five federal representatives (two from NRCan and two from ECCC, and one from HICC). The Peer Review Committee, including up to ten NRCan representatives, provides financial and technical reviews to support Council recommendations. Federal members are appointed upon responsible Ministers’ recommendations. |
| Total funding approved (dollars) | Since 2000, the GMF has been approved for $1,287.5 million in funding from NRCan. |
| Total funding received (dollars) | Since 2000, FCM has received $1,287.5 million from NRCan for the GMF, with the most recent payment being made in July 2019. |
| Planned funding in 2026−27 (dollars) | $0 |
| Planned funding in 2027−28 (dollars) | $0 |
| Planned funding in 2028−29 (dollars) | $0 |
| Summary of recipient’s annual plans |
FCM will provide an Annual Statement of Plans and Objectives (ASPO) to NRCan, ECCC and HICC Ministers by April 2026. ASPO will outline planned activities supporting the delivery of key objectives, and financial targets for 2026-27. The 2023-2026 Three-Year Plan reflects the GMF’s purpose, vision and strategic objectives:
ASPO’s planned activities advance four objectives, with GMF revising its delivery and funding approach in core sectors. |
NRCan 2026-27 Departmental Plan