The Low Carbon Economy Fund - Low Carbon Economy Challenge

• Completed application form
• Work Breakdown Structure and Budget Workbook
• Greenhouse Gas Workbook

Who is eligible?

• Canadian provinces and territories and their entities
• Regional, local, and municipal governments and their entities
• Indigenous recipients, including Indigenous for-profit organizations
• Public sector bodies or boards
• Canadian for-profit businesses, non-profits, and research or educational institutions

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

• Contractor costs and other direct project labour
• Equipment, capital assets, and leasing related to project implementation
• Construction, rehabilitation, and improvement costs for eligible assets
• Travel, hospitality, venue, and conference costs tied to the project
• Engineering, design, training, and project administration costs

Ineligible Costs and Activities

• LED lighting retrofits
• Public transit infrastructure, zero-emission vehicle infrastructure, and on-road zero-emission vehicle purchases
• New fossil-fuel combustion equipment and carbon capture for enhanced oil recovery
• Activities required for regulatory compliance, routine maintenance, or pre-existing commitments
• Projects already underway or based only on goods sold to third parties

Eligible geographic areas

• Canada
• Projects with activities in more than one province or territory must be submitted separately
• Project activities must be located within a single province or territory

• Applications are first screened for eligibility.
• Eligible projects are assessed on merit, including GHG reductions, net-zero alignment, and co-benefits.
• ECCC may contact applicants for clarifications or additional information during the review.
• Applicants receive a funding decision notice, and selected applicants receive an approval-in-principle letter.
• A funding agreement must be signed before project implementation begins.

• 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.