March 1, 2021

Ottawa —The Government of Canada and the Federation of Canadian Municipalities (FCM) launched today the next step in their shared mission to support local programs that help Canadians retrofit their homes to higher energy standards—driving cost-saving energy efficiency and renewable energy in communities across Canada.

The Honourable Seamus O’Regan Jr., Canada’s Minister of Natural Resources and FCM President Garth Frizzell announced that municipalities and their partners can access funding through the latest call for applications under the Green Municipal Fund’s Community Efficiency Financing (CEF) initiative. This initiative will help communities of all sizes implement innovative local financing programs to directly help homeowners cut their greenhouse gas (GHG) emissions, make their homes more comfortable and affordable while helping keep the local economy moving.

Energy use in homes accounts for about 13 per cent of GHG emissions in Canada, and up to a quarter of a community’s local emissions. This is why local action is indispensable to achieve Canada’s climate change goals. CEF enables municipalities to help residents repay the cost of an upgrade through an annual charge on the property tax bill, commonly described as Property Assessed Clean Energy (PACE) financing where enabling provincial or territorial legislation exists. Municipalities can also work with local utility companies to offer on-bill financing programs or partner with a community-minded credit union to offer loans for upgrades.

This call for applications expands upon the CEF initiative’s first two funding offers that aimed to fund the re‑capitalization or scaling-up of existing energy efficiency financing programs across Canada, providing financial support for early-stage design and feasibility assessments. The CEF initiative supports cities and communities throughout all phases of project development as they design and implement local home upgrade financing programs.

Toronto, Saskatoon, Rocky Mountain House and Colchester County are among the nine municipalities approved for funding in the first two calls for applications. Details of the funded projects are included in the linked backgrounder.

The $300-million Community Efficiency Financing initiative is funded by the Government of Canada as part of its $950-million investment in FCM’s Green Municipal Fund (GMF).


“Improvements in energy efficiency will get us a third of the way to our Paris targets. With today’s announcement, we’re creating opportunities for Canadians to lower emissions and creating good, middle-class jobs.”

– The Honourable Seamus O’Regan Jr., Canada’s Minister of Natural Resources

“A home that uses less energy saves families money and it reduces emissions. That is why the Government of Canada is proud to be working with the Federation of Canadian Municipalities to help Canadians cover the cost of retrofitting their homes to higher energy standards. Investments like this, made possible through the Green Municipal Fund, will help create good jobs and build cleaner, healthier, and more resilient communities.”

– The Honourable Catherine McKenna, Minister of Infrastructure and Communities

“The Community Efficiency Financing initiative is a great way to cut pollution in our communities, help Canadians save on energy costs and create good local jobs. That’s why upgrading our homes and buildings is such an important part of Canada’s plan to create a cleaner, healthier future for our children and grandchildren.”

– The Honourable Jonathan Wilkinson, Minister of Environment and Climate Change

"Canadians want new ways to make their homes energy efficient and affordable. Through this expanded funding offer, FCM’s Green Municipal Fund is enabling more local action that can help achieve Canada’s climate change goals. GMF has the frontline expertise to empower municipalities, big and small, to get results on the ground. Today’s announcement with our federal partners helps communities of all sizes build better lives for Canadians with more energy-efficient homes.”

– Garth Frizzell, President, Federation of Canadian Municipalities

Quick facts

  • Through its unique mix of training, resources and funding, the Green Municipal Fund (GMF) builds communities’ capacity to design and implement sustainability initiatives.
  • Since 2000, GMF has helped bring over 1,360 projects to life—making life better for millions of Canadians.
  • GMF-funded projects have cut 2.7 million tonnes of GHG emissions—the equivalent of taking 608,000 cars off the road. GMF supports local innovation that can be replicated and scaled up across the country to tackle Canada’s climate challenges.
  • GMF has created over 11,657 jobs across the country.
  • GMF is a $1 billion program, delivered by the Federation of Canadian Municipalities and funded by the Government of Canada.
  • The average Canadian single-family home uses approximately 20 per cent more energy than new homes built to the latest standard for an ENERGY STAR® certified home —costing residents an extra $300 per year on their utility bills.

Related products

Backgrounder: Home energy retrofit financing initiative expanded to drive cost-savings across Canada

Associated links

Green Municipal Fund
Community Efficiency Financing initiative
March 24 GMF Webinar: Accessing Community Efficiency Financing
Investing in Canada: Canada's Long-Term Infrastructure Plan
Investing in Canada plan project map


Ian Cameron
Press Secretary
Office of the Minister of Natural Resources

FCM Media Relations

Media Relations
Natural Resources Canada

Green Municipal Fund
Municipal finance
© 2021 Federation of Canadian Municipalities