The Low Carbon Economy Fund - Low Carbon Economy Challenge

Who is eligible?

• Provincial governments and provincial agencies
• Territorial governments and territorial agencies
• Regional, local, or municipal administrations and their entities (regardless of population size)
• Indigenous communities and organizations (including First Nations, Métis, Inuit, and Indigenous for-profit organizations)
• Public sector organizations or boards (e.g., school boards, health authorities)
• Educational and research institutions (public or private colleges, universities, and research institutes)
• Canadian non-profit organizations (such as municipal/provincial/territorial associations, professional or sector organizations)
• Canadian for-profit businesses (small, medium, and large enterprises established in Canada)

Who is not eligible

In the current grant context for the Low Carbon Economy Challenge, the guidelines do not explicitly list specific types of companies or industries that are ineligible based on their status or main activity. The restrictions are more focused on the nature of the projects being proposed rather than the industry status of the applicants.

Eligible expenses

• Fees for contractors performing project activities.
• Purchase or leasing of equipment or capital assets directly required for the project.
• Construction, refurbishment, or improvement of project-related assets.
• Expenses for materials and supplies necessary for project implementation.
• External professional and management services (e.g., accounting, communications, translation, audits, technical and environmental reviews, measurement and reporting).
• Project-related travel, accommodation, and meeting expenses (subject to federal guidelines and caps).
• Hospitality costs linked to Indigenous ceremonial offerings (meals, refreshments, traditional items).
• Monetary honoraria to Indigenous Elders or Knowledge Keepers participating in the project.
• Indirect administrative or overhead costs, including licenses, utilities, insurance, IT maintenance, and office support (capped at 20% of the federal contribution and must be project-related and pre-approved).
• Planning and evaluation costs, such as engineering, surveying, supervision, and testing (capped at 5% of the federal contribution and subject to approval).
• Printing, production, and distribution costs for joint federal communications and project signage.
• Incremental salaries and benefits for technical or project-focused employees (capped at 2% of the federal contribution and subject to certain conditions and pre-approval).
• Training expenses for employees on new technologies, equipment, software, or project-specific systems.
• Provincial Sales Tax (PST), Goods and Services Tax (GST), or Harmonized Sales Tax (HST) not eligible for reimbursement or credits.

Eligible geographic areas

• All provinces and territories in Canada
• Projects must be located within Canada

• Approval of funding is not guaranteed until a formal funding agreement is signed, even after receiving approval in principle.
• Applicants must provide clear, complete, and detailed information as applications will be evaluated as submitted; only critical clarifications may be requested.
• Regular reporting is mandatory throughout the project lifecycle, including semi-annual progress and a final report upon project completion.
• Environmental, Indigenous, and diversity impacts of the project will be reviewed as part of the assessment process.