The Low Carbon Economy Fund - Low Carbon Economy Challenge
Canada
The Low Carbon Economy Challenge Fund catalyzes Canadian innovation to achieve significant GHG emissions reductions and foster clean growth.
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|fromMinToMax
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|openingDateJanuary 01, 2023
- grant_single|closingDateFebruary 08, 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
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grant_card_status|closed
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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|projects
This grant is open to applicants across various regions in Canada, focusing on reducing greenhouse gas emissions. Eligible geographical areas include any regions where applicants and their project partners can control GHG emissions for impactful reductions.
- Territories and territorial entities.
- Provinces and municipalities across Canada.
- Regions where indigenous recipients are present.
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
The grant covers expenses that are directly associated with the implementation and success of the project in achieving GHG emissions reductions.
- Expenses related to the deployment of low-carbon technologies that result in direct GHG emissions reductions.
- Costs associated with purchasing and installing equipment necessary for project execution.
- Operational expenses directly linked to project implementation.
- Consulting or contractor fees for expertise required in executing the project.
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|register
Here are the steps to submit an application for this grant:
- Step 1: Review Eligibility Criteria and Guidelines
- Read the Low Carbon Economy Challenge Applicant Guide thoroughly to understand eligibility criteria and assessment process.
- Ensure your project aligns with the objectives of reducing GHG emissions and complies with all eligibility requirements.
- Step 2: Prepare Application Documents
- Prepare a detailed project proposal that includes the project description, expected GHG reductions, and cost-effectiveness analysis.
- Compile necessary documents like financial statements, project timelines, and evidence of technological capability.
- Step 3: Submit Application
- Access the application portal on the Low Carbon Economy Fund website.
- Complete the application form with accurate information and upload all required supporting documents.
- Submit the finalized application before the deadline on February 8, 2024.
- Step 4: Acknowledgment of Submission
- Receive a confirmation email acknowledging receipt of your application.
- Retain this confirmation for future reference and follow-up.
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
Driving Clean Growth and Emissions Reduction
The Low Carbon Economy Challenge Fund supports Canadian entities aiming to deploy proven low-carbon technologies that result in significant greenhouse gas (GHG) emissions reductions, in alignment with Canada's net-zero emissions goals by 2050. This competitive funding opportunity seeks projects that offer cost-effective solutions across various sectors, prioritizing high-impact, feasible applications.
In-Depth Insights into the Low Carbon Economy Challenge Fund
The Low Carbon Economy Challenge Fund is a pivotal initiative by Environment and Climate Change Canada (ECCC) designed to catalyze Canada's journey towards a low-carbon, sustainable future. The fund’s primary objective is to harness Canadian innovation to significantly cut GHG emissions while fostering economic growth through clean technology deployment. A broad spectrum of sectors is targeted, making it inclusive for diverse project proposals that align with the national climate objectives.
With applications evaluated rigorously, the Challenge Fund’s assessment process ensures only the most effective and impactful projects receive backing. Following the closure of applications in early February, the evaluation process is conducted in stages, starting with an eligibility screening and advancing to a thorough merit evaluation. This phase assesses projects on their cost-effectiveness, with the primary measure being the cost per tonne of CO2 equivalent reduced by 2030, ensuring high-value climate benefits. Eligible projects must showcase their potential to reduce emissions beyond current regulatory requirements, using commercially available technology.
A crucial component of the Challenge Fund is its financial framework, which varies significantly based on the applicant type. For-profit businesses, for instance, can access up to 25% of project costs, whereas Indigenous recipients and territories stand eligible for a 75% cost share. This tiered support ensures equitable access to funding, enabling a wide range of applicants to contribute to Canada’s climate goals, from for-profit companies to Indigenous organizations.
Project timeline and milestones are meticulously outlined, from initial eligibility reviews to ministerial approval. Successful projects typically receive notification by mid-year, with final funding decisions concluded by August. This structured timeline ensures project implementations are efficiently managed and adhere to completion by the stipulated March 2028 deadline. Such a comprehensive planning and approval process fosters transparency and accountability across all project phases.
Beyond just funding, the Challenge Fund acts as a critical stimulus for clean technology adoption across Canada. It encourages recipients to elevate their climate strategies, pushing for innovations that offer immediate and tangible environmental benefits. These funded projects, by reducing operational emissions, play a pivotal role in helping Canada achieve its ambitious emissions targets. Strategic projects in areas such as waste diversion, biomass and industrial retrofits, or HVAC system upgrades exemplify the transformative potential supported by the fund.
The robust framework of the Low Carbon Economy Challenge Fund effectively aligns with Canada's broader environmental strategies, providing a conduit for sustainable development and climate resilience. By financially empowering technologically advanced and effective climate solutions, the Challenge Fund not only advances national emissions objectives but also inspires further innovation and competitive advantages within the green technology sector.
This fund is a testament to Canada’s commitment to environmental stewardship and economic sustainability, offering a launchpad for projects that balance ecological responsibility with economic viability. Through targeted support, it stimulates the growth of new industries, encourages cross-sector collaboration, and positions Canada as a leader in climate action and sustainable technology advancements, thereby significantly contributing to global environmental preservation efforts.
