Name of recipient: Green Municipal Fund (GMF) (Statutory)
Start date: March 31, 2000
End date: In perpetuity
Total funding: $275.0 million*
*NRCan’s contribution via the GMF Funding agreement is $275 million. Environment Canada contributes the other $275 million.
Description: The Government of Canada endowed the Federation of Canadian Municipalities (FCM), a non-profit organization, with $550 million to establish the Green Municipal Fund (GMF) to provide long-term, sustainable financing for municipal governments and their partners. The GMF invests in plans, studies and projects that provide the best examples of municipal leadership in sustainable development and that can be replicated in other Canadian communities.
The intent of the GMF is to encourage investment in environmental municipal infrastructure. Specifically, the priorities of the fund are to have a positive impact on the health and quality of life of Canadians by reducing greenhouse gas emissions, improving local air, water and soil quality and promoting renewable energy by supporting environmental studies and projects within the municipal sector. Additional considerations include the potential for economic and/or social benefit.
The amount of GMF financing available to municipalities is directly related to the environmental, economic and social benefits of the projects undertaken. Grants of up to 50% to a maximum of $175,000 are available for plans, studies and field tests. GMF can provide below-market financing for capital projects up to 80% of costs to a maximum of $10 million in loans, combined with up to $1 million in grants (up to a maximum of 20% of the loan amount) per project. Brownfield projects are eligible for below-market loans only, with no funding limit.
Under the GMF agreement, the Government of Canada (represented by NRCan and Environment Canada) participates in the governance of this revolving fund, along with representatives from the public and private sectors, including municipal officials and technical experts, through a Peer Review Committee and an Advisory Council. The FCM Board of Directors approves projects based on the Council’s recommendations.
Strategic outcome(s): 2) Natural Resource Sectors and Consumers are Environmentally Responsible
Summary of results achieved by the recipient: The FCM Board of Directors approves projects in light of the Council’s recommendations. According to the FCM, as of March 31, 2012, the GMF had committed $613 million for more than 934 sustainable community plans, feasibility studies, field tests and capital projects with the potential to leverage over $3.7 billion of economic activity in approximately 460 Canadian communities. The FCM reports that environmental benefits include the annual reduction of an estimated 339,000 tonnes of carbon dioxide from 70 completed capital projects.
Final audited results for fiscal year 2012-13 will be available in the GMF Annual Report 2012-2013, at http://www.fcm.ca/home/searchresults.htm?q=annual+reports.
Comments on variances: No funds appear because the FCM received an endowment from the Government of Canada, so NRCan does not carry planned or actual spending.
Significant evaluation findings by the recipient during the reporting year and future plan: The next independent review of the GMF will be completed in 2014.
Significant audit findings by the recipient during the reporting year and future plan: The next independent review of the GMF will be completed in 2014.
Link to recipient’s website: http://www.fcm.ca/home/programs/green-municipal-fund.htm
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