The Low Carbon Economy Fund - Low Carbon Economy Challenge
grant_single|update March 15, 2025
Canada
Supports projects reducing GHG emissions using low-carbon technologies
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|minCount
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|openingDate January 1, 2023
- grant_single|closingDate February 8, 2024
grant_single|financingType
Grant and Funding
grant_single|eligibleIndustries
- Manufacturing
- Administrative and support, waste management and remediation services
grant_single|grantors
- Government of Canada
grant_single|status
grant_card_status|closed
grant_single_labels|preview
The Low Carbon Economy Challenge Fund leverages Canadian innovation to reduce greenhouse gas emissions and foster clean growth. It supports projects that deploy proven low-carbon technologies resulting in significant GHG reductions. Eligible activities must lead to direct and immediate emissions reductions that go beyond existing regulations and must be primarily for the applicant's or their partner's own use.
grant_single_labels|terms_and_conditions
This grant provides flexible funding options designed to encourage the adoption of low-carbon technologies and practices across diverse sectors in Canada. Funding is structured to align with the specific needs of different applicant types and the nature of their eligible projects.
- Funding requests can range from $1 million to $25 million for eligible project expenditures.
- Federal cost sharing varies by recipient type, with a range from 25% to 75% of total eligible project expenditures.
- For-profit businesses may receive up to 25% federal cost share.
- Not-for-profit organizations, public sector bodies, provinces, research institutions, and municipal governments located in a province may receive up to 50% federal cost share.
- Municipal governments in territories, as well as territorial and Indigenous recipients, may receive up to 75% federal cost share.
grant_single_labels|projects
The Low Carbon Economy Challenge supports projects designed to significantly reduce greenhouse gas emissions by deploying proven, low-carbon technologies. Eligible projects must demonstrate the capacity to meet Canada's net-zero emissions goals by 2050.
- Deployment of commercially available technologies leading to direct GHG emissions reductions.
- Implementation of projects that go beyond existing regulations and standards in reducing GHG emissions.
- Projects focused on the direct and immediate reduction of GHG emissions as a result of funding.
- Utilization of low-carbon technologies for electricity or fuel production primarily for internal operations, except in rural or remote communities or specific energy projects.
grant_single_labels|admissibility
Eligibility for this grant is determined by specific requirements related to the types of projects and their expected outcomes.
- Projects must result in reductions of GHG emissions in 2030 and align with Canada’s net-zero emissions goals by 2050.
- Reductions must be from sources of GHG emissions controlled by the applicant or project partner (direct) and/or grid electricity emissions (acquired).
- Projects must deliver reductions beyond existing regulations, standards, or codes and ongoing work by project proponents (incremental).
- Immediate and direct results from activities funded by the program are necessary.
- Projects require the capacity to use commercially available technology.
- Confirmation of the project location is necessary.
- Production of electricity or fuel must be primarily for the applicant’s or identified partner’s own use, except in rural or remote communities, or for district energy or industrial combined heat-and-power projects.
grant_eligibility_criteria|who_can_apply
This grant is designed for Canadian organizations committed to reducing greenhouse gas emissions through low-carbon technologies. Eligible organizations must be involved in sectors that can significantly impact emissions reductions by implementing proven technologies.
- For-profit businesses eligible for a 25% federal cost share, with minimum eligible project expenditures of $4 million.
- Not-for-profit organizations, public sector bodies, provincial entities, research institutions, and regional/local/municipal governments located in a province, eligible for a 50% federal cost share.
- Regional/local/municipal governments and territorial entities located in a territory, as well as Indigenous recipients including for-profit organizations, eligible for a 75% federal cost share.
grant_eligibility_criteria|who_cannot_apply
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.
grant_eligibility_criteria|eligible_expenses
This grant supports projects that focus on reducing greenhouse gas (GHG) emissions by deploying proven low-carbon technologies. Eligible activities must result in significant GHG emissions reductions and align with Canada's long-term environmental goals.
- Deployment of waste diversion technologies.
- Implementation of biomass retrofits in industrial settings.
- Upgrading industrial systems with retrofits for enhanced energy efficiency.
- Installation of anaerobic digesters for organic waste processing.
- Utilization of waste heat recovery systems in various industrial processes.
- Retrofitting HVAC systems to improve energy efficiency in buildings.
- Development and integration of carbon capture and utilization technologies.
- Upgrades to district energy systems for better energy management and efficiency.
grant_eligibility_criteria|zone
This grant is available to Canadian companies, with specific provisions for those located in territories and municipalities. Indigenous recipients also have a special eligibility under this grant.
- For-profit businesses in Canada.
- Not-for-profit organizations.
- Public sector bodies or boards.
- Provinces and provincial entities.
- Regional/local/municipal governments or their entities located in a province or territory.
- Indigenous recipients including Indigenous for-profit organizations.
- Territorial governments and territorial entities.
grant_single_labels|criteria
The evaluation and selection of projects under the Low Carbon Economy Challenge are driven by a merit-based framework, which ranks projects according to specific criteria to maximize GHG emissions reductions effectively.
- Cost-effectiveness: Defined as the federal funding requested per tonne of CO2 equivalent reduced by 2030. High-scoring projects typically include waste diversion, biomass retrofits, and HVAC system retrofits.
grant_single_labels|apply
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grant_single_labels|otherInfo
The grant offers additional channels for funding opportunities and provides specific guidelines on visual image requirements for funded projects.
- Ineligible projects or those not selected for funding may consider other funding opportunities through the following portals: Our environment, Clean Growth Hub, and Innovation Canada.
- For visual image guidelines related to the Low Carbon Economy Fund, reference specific guidelines provided in the related links section.
grant_single_labels|contact
lcef-fefec@ec.gc.ca
Apply to this program
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