Green Municipal Fund (Statutory)

General Information

Strategic Outcome 2 – Natural Resource Sectors and Consumers are Environmentally Responsible
Link to department’s Program Alignment Architecture 2.1 – Energy–Efficient Practices and Lower-Carbon Energy Sources and 2.1.4 – Energy Efficiency
Name of recipient Green Municipal Fund (Statutory)
Start date March 31, 2000
End date Ongoing
Description The Green Municipal Fund (GMF) is a revolving fund administered by the Federation of Canadian Municipalities (FCM). The GMF supports grants, loans and loan guarantees to encourage investment in environmental municipal projects. The Government of Canada endowed the FCM with a total of $550 million for this initiative through a series of Budget decisions from 2000 to 2005.

The GMF was established to enhance Canadians’ quality of life by improving air, water and soil quality and protecting the climate. Eligible projects may fall into one or more of the following categories: brownfields, energy, transportation, waste and water, in the form of sustainable neighbourhood action plans, community brownfield action plans, greenhouse gas (GHG) reduction plans, feasibility studies, pilot projects and capital projects. At least 30% of the value of the Fund Assets is dedicated exclusively to supporting brownfield remediation and redevelopment.

The amount of GMF financing available for municipal projects is directly related to the environmental benefits or innovativeness of the project, while taking into account economic and social considerations. Grants of up to 50% of eligible costs are available for plans, studies and pilot projects, to a maximum of $175,000. Low-interest loans of up to 80% of eligible costs are available for capital projects, to a maximum of $10 million, typically combined with a grant amount for 15% of the loan amount, to a maximum of $1.5 million. Brownfield projects are eligible for below-market loans only, with no specified funding limit.

As stipulated in the GMF Funding Agreement between the FCM and the Government of Canada, the FCM has created two advisory bodies: the GMF Council and the Peer Review Committee. The GMF Council’s role is to assist the FCM Board of Directors, the decision-making body for the GMF, in approving projects proposed by municipalities. The 15-member GMF Council includes five federal members: two from ECCC, two from NRCan and one from Infrastructure Canada (INFC). All federal members are appointed by the FCM Board of Directors based on recommendations from the Minister of the Environment and Climate Change or the Minister of Natural Resources.
Comments on variances GMF funding transfer completed in 2005. Budget 2016 also announced an additional $125 million endowment to the FCM GMF, to be transferred in 2017-2018.
Significant audit findings by the recipient during the reporting year, and future plan There are no audit findings for 2015–16. The Commissioner of the Environment and Sustainable Development is to table the audit findings in 2016-2017. This audit Federal Support for Sustainable Municipal Infrastructure will include NRCan and ECCC’s participations in supporting GMF.
Significant evaluation findings by the recipient during the reporting year, and future plan There has been no evaluation of the GMF in 2015-16. The next one is expected in 2019.
Summary of results achieved by the recipient The 2015-16 GMF Annual Report will be available on the FCM website.

According to the 2014-15 GMF Annual Report, the FCM has committed to provide $755 million to support 1,088 environmental initiatives in communities across Canada since the inception of the GMF in 2000. Of the initiatives funded to date, 188 have been capital projects. The 119 capital projects that have been completed and reported on since inception have:
  • Reduced GHG emissions by 371,000 tonnes per year
  • Made 74 hectares of previously contaminated land available for use
  • Reduced air contaminant emissions by more than 453,000 kilograms per year
  • Improved the quality of more than 56,000 cubic metres of soil
  • Treated 159,000,000 cubic metres of wastewater per year
  • Diverted 151,000 tonnes of waste from landfill per year
  • Reduced water consumption by almost 325,000 cubic metres per year
Through GMF, FCM invested $50.63 million in 12 capital projects and $5.1 million in 47 plans, studies and tests during the 2015-16 fiscal year.

Performance Information (dollars)

2013–14 Actual spending 2014–15 Actual spending 2015–16 Planned spending 2015–16 Total authorities available for use 2015–16 Actual spending (authorities used) Variance (2015–16  actual minus 2015–16  planned)
0 0 0 0 0 0

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