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Municipalities for Climate Innovation Program

Energy: Climate mitigation studies funding

We provide grants for climate change mitigation studies that assess the feasibility of energy projects that could lead to greenhouse gas (GHG) reductions for municipal corporate assets and operations or through community-based initiatives. We fund two types of studies:

  • Feasibility studies
  • Operational studies 

On this page, find information about the types of initiatives that are eligible for funding and requirements, who can apply, available funding, eligible and ineligible costs, deadlines, as well as the application form and supporting documents.

Eligible initiatives

Feasibility studies

A feasibility study assesses the technical and financial feasibility of a specific project to reduce or avoid GHG emissions. It uses a verifiable evaluation process that leads to a recommended course of action.

Examples of eligible feasibility studies

  • Retrofitting district energy systems.
  • Upgrading lighting and insulation in municipal facilities, such as community centres, arenas, libraries or other municipal buildings.
  • Converting fuel sources from fossil fuels to a less polluting source of energy.
  • Creating an energy recovery loop to channel waste energy to heat.
  • Generating gas from digested solids from a wastewater treatment plant to produce electricity and heat.
  • Using a landfill gas capture process to gather, process and treat methane gas from landfill sites to produce energy.
  • Analyzing the impact of using local energy sources in a district energy system.

If you intend to apply for funding for a capital project through FCM's Green Municipal Fund (GMF) once your study is complete, make sure that your study includes the requirements for GMF capital projects related to energy efficiency and recovery initiatives.

Targets for feasibility studies related to municipal corporate assets

Feasibility studies focused on a municipality's corporate assets should be designed to reach the target of 50 per cent reduction in GHG emissions from an existing baseline.

  • For buildings, two-thirds of the reduction in GHGs must come from efficiency measures and up to one-third may come from the use of renewable energy.
  • For landfill gas capture projects, the target is a 60 per cent capture of all emissions at the site.

Guidelines for feasibility studies related to community-based initiatives

There are no minimum targets for community-based initiatives, however your initiative should:

  • Maximize the available local GHG reduction opportunities.
  • Improve the uptake of renewable energy.
  • Promote new financial options to facilitate energy efficiency.
  • Consider efficiency measures before renewable options.
  • Develop methods and actions that complement municipal initiatives.  

If your feasibility study is not designed to reach one of these targets or guidelines, it may still be eligible for funding. Please contact an FCM advisor to discuss the funding opportunities available for your study.

Operational studies

An operational study 1) assesses the actual or potential benefit of changing the way a municipal service, such as building operations, is delivered and managed or 2) enables research to support such a change.

Examples of eligible operational studies

  • Conducting research to design a program or policy change that reduces GHG emissions in the operation of municipal buildings (e.g. changing the maintenance of heating and ventilation systems).
  • Analyzing the impact of a policy change requiring all new municipal buildings and facilities to be built to a certain standard (e.g. carbon neutral building, LEED Gold).
  • Enacting policy changes that could result in energy conservation (e.g. no idling policy).


There are no targets required for operational studies.

Don't see your study listed here? Contact us!

Do you have another type of project with the potential to reduce GHG emissions in your municipality? We will consider a range of projects and approaches that accomplish this goal. Contact a FCM advisor to discuss your project and find out if it is eligible for funding.

Who can apply         

Feasibility studies

  • Municipal governments (except applicants from Quebec*)
  • Municipal partners working in partnership with a municipal government**, which include:

    • Certain indigenous communities that have a shared service agreement with a municipal government related to infrastructure, climate change mitigation or climate change adaptation.
    • Regional, provincial or territorial organizations delivering municipal services.
    • Not-for-profit organizations.

Note: Private sector entities are not eligible as municipal partners.

Operational studies

Only municipal governments can apply for operational studies.

Funding available

  • Grants of up to $175,000
  • Funding for up to 80 per cent of eligible costs

Application deadline

Applications are accepted year-round. The last date to submit an application is January 31, 2020.

Note: All eligible expenses must be incurred, and all reporting, including request for disbursements, must be submitted to FCM by February 28, 2021.

Contact us before you apply

We encourage all applicants to contact an FCM advisor to ensure that your project is eligible for funding. Our advisors can answer questions regarding eligibility, funding or the application process. 

  • Email us
  • Call us toll-free: 1-877-997-9926
  • In the Ottawa-Gatineau region: 613-907-6208

How to apply

  1. Review eligible and ineligible costs
    Learn about the eligible and ineligible costs that can be included in the budget of your application. 

    Note: Costs associated with preparing an application for this grant are not eligible for reimbursement.
  2. Review the project scorecard with evaluation criteria for self-assessment
    We recommend that you download the project scorecard to review the evaluation criteria and refer to it as you fill out your application. This will help strengthen your responses to each question.
  3. Complete the budget and workplan template
    Review and complete the budget and workplan template to include in your application. You will be directed to upload this Excel document as you complete the application form.
  4. Complete the application form
    Download the application form for this grant: Climate change mitigation studies and climate change adaptation studies

Review the system requirements and instructions for using FCM's application forms, including details on how to submit your application.

Application review timeline and approval process

Learn more about the application review process, including timelines for approvals and funding decisions.

* Quebec municipalities are currently not permitted to receive funding from FCM's Municipalities for Climate Innovation Program (MCIP).

FCM is working with the province of Quebec's Ministère des Affaires municipales et de l'Occupation du territoire (MAMOT) to find a solution that will provide Quebec municipalities access to MCIP funding as soon as possible.

** Not-for-profit, non-governmental organizations and indigenous communities in Quebec can still access funding from the two programs if they meet the necessary eligibility criteria.

Please contact an FCM advisor should you have additional questions about FCM or to learn if your project would be eligible for funding through other FCM programs such as the Green Municipal Fund.

Should you have further questions about MAMOT's decision and programs available to Quebec municipalities please contact MAMOT.

The Municipalities for Climate Innovation Program is a new five-year, $75-million program designed to encourage Canadian municipalities to better prepare for and adapt to the new realities of climate change as well as reduce greenhouse gas emissions. The program is delivered by the Federation of Canadian Municipalities and funded by the Government of Canada.
Page Updated: 21/08/2017