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Municipalities for Climate Innovation Program

Energy: Climate mitigation capital project grants

We provide grants for energy-focused capital projects that lead to greenhouse gas (GHG) emission reductions for municipal corporate operations and existing assets such as buildings and treatment plants or through community-based initiatives.

On this page, find information about the types of initiatives eligible for funding, who can apply, available funding, eligible and ineligible costs, and deadlines. You will also find links to the application form and supporting documents.

Eligible initiatives

Eligible capital projects will address corporate or community GHG emissions at a site, or in a neighbourhood or region. These projects are designed to enable the adoption of a technology or solution that has the potential to reduce GHG emissions.

Examples of eligible capital projects

The following are examples of features that could be included in an eligible capital project:

  • Retrofitting district energy systems to a less poluting source of energy
  • Upgrading lighting and insulation in municipal facilities such as community centres, arenas, libraries or other municipal buildings
  • Changing a fuel source from fossil fuels to a less polluting source of energy
  • Creating an energy recovery loop to channel waste energy to heat
  • Using digested solids from a wastewater treatment plant to generate gas for electricity or heat
  • Capturing, processing and treating methane gas from landfill sites to produce energy


Capital projects focused on a municipality's corporate assets should be designed to reduce GHG emissions by 50 per cent from an existing baseline. In addition:

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

Don't see your capital project listed here? Contact us!

Do you have another type of project with the potential to reduce GHG emissions in your municipality? If your capital project is different than the examples above or is not designed to reach any of the above targets or guidelines, it may still be eligible for funding. We will consider a range of projects and approaches. Contact an FCM advisor to discuss your project and find out if it is eligible for funding.

Who can apply

  • 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.

Funding available

  • Grants of up to $1,000,000
  • Larger grants may be available — contact FCM for more information
  • 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 requests 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 and 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, which outlines criteria you can use to assess your project
    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 fill out the application form.

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: 08/01/2018