Climate change is significantly impacting communities across Canada. Recognizing that greenhouse gas (GHG) emissions are driving these climate disruptions, municipalities are leading the way in developing ambitious plans to reduce emissions.

Unfortunately, reducing the GHGs emitted from homes is not only difficult and expensive, but also requires the participation of many homeowners to complete energy efficiency retrofit projects. To help municipalities reach emissions reduction targets, Clean Air Partnership, with funding from FCM’s Municipalities for Climate Innovation Program’s Transition 2050 initiative, developed the Local Improvement Charge Financing for Retrofits Toolkit with support from participating municipalities. This toolkit will help municipalities design residential energy efficiency retrofit programs, like local improvement charge (LIC) financing, also known as property-assessed clean energy (PACE) financing.

About the Local Improvement Charge Financing for Retrofits Toolkit

To create the toolkit, CAP hosted monthly webinars and worked with a group of nine municipalities in Ontario:

  • Burlington
  • Guelph
  • Halton Hills
  • London
  • Newmarket
  • Peterborough
  • Toronto
  • Vaughan
  • Whitby

This toolkit focuses on single-family home residential buildings, which includes townhouses, condominiums, and single detached homes. This toolkit aims to help municipalities reach their climate goals though local improvement charge (LIC) financing, also known as property-assessed clean energy (PACE) financing.

"The high upfront cost of home energy efficiency retrofits is often a significant barrier to implementation. With LIC/PACE programs, these costs are covered by the loans and repaid over 5-20 years. This can make whole home retrofits affordable to a larger population of homeowners."

– Vanessa Cipriani, Program Manager, Clean Air Partnership

Reduce GHG emissions in your community

Use the toolkit to:

  • Design residential energy efficiency retrofit programs in your community to achieve deep GHG reductions from homes
  • Learn how retrofits programs can benefit homeowners, the environment and the economy
  • Understand the benefits and potential challenges of these programs
  • Discover key program design elements and internal operational process flows
  • Access templates for LIC bylaws and sample marketing materials for home energy retrofit programs.

Use the toolkit to learn how to get started on creating meaningful residential energy efficiency retrofit programs for your citizens.

Who is this toolkit for?

Municipal practitioners working in your community’s climate change, environment, energy and sustainability departments will find the toolkit most useful.

Measuring the success of an LIC/PACE program

An accompanying monitoring and evaluation framework was created to support municipalities in understanding the success and improving the delivery of their single family home LIC pilot programs. The framework can also aid in reporting results to Council and program funders. 


Vanessa Cipriani
Project Coordinator

Kevin Behan
Deputy Director

Government of Canada logo

This resource was developed by the Municipalities for Climate Innovation Program (2017-2022). This program was delivered by the Federation of Canadian Municipalities and funded by the Government of Canada.

For more information on climate action funding, resources and training, please visit FCM’s Green Municipal Fund. For more information on asset management and climate resilience grants, training and resources please visit FCM’s Municipal Asset Management Program.

© 2022 Federation of Canadian Municipalities