How much funding can be received?

The Capital project: Retrofit of existing municipal buildings program provides up to $10 million in combined grants and loans, covering up to 80% of eligible costs, to upgrade municipal buildings for improved energy efficiency and reduced greenhouse gas emissions. Eligible activities include implementing retrofit measures that achieve at least a 50% reduction in emissions within 10 years and meet best practice energy targets over 20 years.

Financing terms and conditions

Combined grant and loan covering up to 80% of eligible project costs.
Maximum total funding (grant + loan) of $10 million per project.
Grant portion up to 20% of the total loan amount; the grant amount is a function of the loan and cannot be separated.
Municipalities with exceptional projects may qualify for a higher funding amount upon direct inquiry.

Eligible projects & activities

Retrofit of existing municipal buildings to improve energy performance and reduce greenhouse gas emissions.
Implementation of phased GHG reduction strategies for single buildings or portfolios of municipal buildings.
Deep energy retrofits and fuel switching to achieve significant emissions reductions over a set timeline.

Examples of admissible projects:

$ 80,000

Solar panels installation for reducing community centre’s energy use

$ 45,000

Launching a composting initiative with smart collection bins

$ 60,000

Implementing accessibility upgrades for a local arts theatre

$ 69,000

Developing a packaging-free grocery delivery service for residents

$ 65,000

Upgrading digital farm equipment to improve crop yields

$ 50,000

Retrofit commercial kitchen with energy-efficient appliances

Eligibility criteria of the Capital project: Retrofit of existing municipal buildings program

The applicant must be a Canadian municipal government (e.g., town, city, region, district, or local board) or a municipal partner, such as a private sector entity, municipally-owned corporation, regional, provincial or territorial organizations delivering municipal services, non-governmental or not-for-profit organization, or research institute.
An Indigenous community is eligible if partnering with a Canadian municipal government on an eligible project or via a shared service agreement related to municipal infrastructure, climate change, or adaptation.
The project must involve retrofitting an existing municipal building or a portfolio of municipal buildings to improve energy performance and reduce greenhouse gas (GHG) emissions.
The project must aim to achieve at least a 50% reduction in GHG emissions from baseline within 10 years and meet best practice energy targets within 20 years.

Who is eligible?

Canadian municipal governments (e.g., towns, cities, regions, districts, local boards)
Municipally-owned corporations
Regional, provincial or territorial organizations delivering municipal services
Private sector entities partnering with a municipality
Non-governmental organizations, not-for-profit organizations, or research institutes partnering with a municipality
Indigenous communities partnering with a Canadian municipal government or through a shared service agreement related to municipal infrastructure, climate change, or adaptation

Eligible expenses

Costs related to capital upgrades and retrofit measures that improve energy performance and reduce greenhouse gas emissions of municipal buildings.
Expenses for energy modeling and feasibility studies supporting retrofit pathways, aligned with National Energy Code of Canada for Buildings (NECB) 2020 requirements.
Purchase and installation of capital equipment and systems required for deep energy retrofits and fuel-switching to non-fossil fuel energy sources.
Expenditures for materials and construction related to envelope improvements and energy conservation measures within the retrofit pathway.
Costs associated with professional services such as engineering, energy consulting, and project management directly tied to the qualifying retrofit project.
Implementation costs for each phase of an approved GHG reduction pathway in municipal buildings, including passive strategies and system upgrades.

Eligible geographic areas

Canadian municipal governments (e.g., towns, cities, regions, districts, and local boards).
Municipal partners and organizations operating in Canada in partnership with a Canadian municipal government.

Eligibility criteria of the Capital project: Retrofit of existing municipal buildings program

Magnitude of greenhouse gas (GHG) emission reductions achieved by the project, especially reductions of at least 50% within 10 years.
Achievement of best practice energy targets (EUI and TEDI) within a 20-year timeline, according to climate zone and building typology.
Integration of equity, inclusion, and reconciliation principles, and the extent to which socio-economic benefits are generated for the community.
Excellence in contributing to additional areas such as water conservation, sustainable materials management, biodiversity, and meaningful stakeholder engagement.
Overall innovation and positive impact of the project on the environment, community, and local economy.

How to apply to the Capital project: Retrofit of existing municipal buildings program

Prepare application materials

Download and review the application guide for a complete overview.
Contact a GMF representative to discuss your project.
Review prerequisites and required supporting documents.
Ensure your project budget and funding sources are secured.

Submit pre-application

Create a client profile on FCM's funding portal.
Submit a pre-application form through the portal.

Eligibility determination

GMF outreach officer reviews the pre-application for eligibility.
Receive a response within 15 business days regarding eligibility.

Submit full application

If eligible, receive access to the full application form.
Complete the Excel project workbook template provided.
Prepare and attach all supporting documents.
Submit the full application and workbook via the FCM funding portal.

Application review

GMF project officer reviews the full application for accuracy and completeness.
Address any questions or clarify outstanding information if requested.

Funding decision

Application undergoes peer and internal review for funding recommendation.
Decision rendered by GMF's managing director, GMF Council, and FCM Board for capital projects.
Notification is provided regarding the funding decision.

MAMH submission (Quebec only)

(For Quebec municipalities) Submit your application to MAMH after completing the internal steps.
Upload required files to the Portail gouvernemental des affaires municipales et rgionales.
Wait for MAMH review and confirmation before transmission to GMF.
Receive notification once GMF receives and reviews your application forwarded by MAMH.

Additional information

Applications are accepted year-round, but funding may close once all funds are allocated.
Preference is given to projects integrating principles of equity, inclusion, reconciliation, and generating significant socio-economic benefits.
Quebec municipalities must submit their application for pre-review to the ministère des Affaires municipales et de l'Habitation before it is forwarded to FCM.
Renewable energy production cannot be deducted when calculating energy targets for project evaluations.