Transportation and fuel efficiency funding
We provide funding for transportation capital projects related to sustainability and that reduce greenhouse gas emissions (GHG).
On this page, learn about the types of transportation projects that are eligible for grants and loans through FCM's Green Municipal Fund (GMF), as well as who can apply, funding available, deadlines and how to apply.
Types of eligible initiatives
The following types of transportation capital projects are eligible for funding through GMF.
Modal shift: Capital projects
Modal shift is the change in travel patterns from one type or mode to more sustainable one (e.g. a change in the number of people using public transit instead of cars).
Eligible projects must demonstrate the potential to reduce vehicle kilometres travelled in single occupancy vehicles by encouraging alternative modes of travel.
- intelligent transportation systems, such as real-time travel information and transit signal priority
- active transportation infrastructure near transit nodes, such as sidewalks, pedestrian crossings, links to park-and-ride facilities, and walking and cycling networks that promote accessibility and safety
Fleet fossil fuel and GHG emissions reduction: Capital projects
Your project must demonstrate the potential to increase fuel efficiency by at least 20 per cent (reduction in litres of fuel consumed per 100 kilometers travelled) — or reduce life-cycle GHG emissions by at least 20 per cent — for a municipal fleet or a portion of a municipal fleet.
- hybrid vehicle purchase and retrofits
- purchasing properly sized vehicles for various uses
- fuel switching
Changes to funding for transportation feasibility studies
Funding for feasibility studies for transportation projects is now offered through FCM's Municipalities for Climate Innovation Program.
- See Transportation and fleet: Climate mitigation studies for information and to download the application form.
Who can apply
- All Canadian municipal governments.
- Municipally owned corporations working in partnership with a municipal government.
Learn more about eligibility.
- We offer low-interest loans, with competitive lending rates, usually in combination with grants.
- Funding is provided for up to 80 per cent of eligible project costs.
- The loan maximum is $5 million, and the grant amount is 15 per cent of the loan.
Applicants with high-ranking projects may be eligible for a loan of up to $10 million, combined with a grant for 15 per cent of the loan amount, to a maximum of $1.5 million.
Learn more about financing for capital projects.
Capital projects for transportation initiatives are subject to deadlines. Learn more.
You will need to meet key prerequisites before you apply.