Audit and Evaluation Branch
Natural Resources Canada and Statistics Canada
April 16, 2026
On this page
Recommendations and management response and action plan
Program description
The CERRC program supports renewable energy and capacity-building projects to reduce diesel use for heat and power in rural and remote communities across Canada. About 200 of these communities rely entirely on diesel for electricity and heat. Currently funded through 2026–27, the program prioritizes Indigenous-led projects with demonstrated community support. It aims to support local renewable energy use and improve energy efficiency, generating environmental, social, and economic benefits, with funding of $383 million from 2017-18 to 2024-25.
CERRC is organized into five components delivered by three sectors of NRCan, each targeting specific outcomes related to the overall program goals:
Canadian Forest Service: The Bioheat stream funds projects that deploy proven bioenergy technologies and support biomass supply chain business development in rural and remote locations.
Energy Systems Sector: The Deployment stream funds new renewable energy capacity in off-grid remote communities and in off-grid industrial operations across Canada. The Capacity Building stream supports local technical expertise and activities needed to build communities’ energy knowledge bases for a successful transition to renewable energy technologies.
Energy Efficiency and Technology Sector: The Demonstration stream funds demonstrations of innovative clean energy solutions to build local capacity and provide models for wider adoption. The Energy Efficiency component aims to provide internal expert support to the four streams through complementary programs led by federal partners.
Governance of the CERRC program has evolved from an NRCan-led structure with intersectoral coordination to a multi-layered structure under Wah-ila-toos, establishing the Indigenous Council, the Governing Board, and the Wah-ila-toos Administrative Unit starting in 2021. The changes aimed at emphasizing federal reconciliation objectives and reducing isolated program delivery within the federal government, and intended to shift some administrative effort from proponents to the departments delivering the federal programs.
CERRC has effectively adapted to a rapidly evolving policy landscape shaped by Canada’s climate commitments and reconciliation priorities. The program advances reconciliation by supporting Indigenous participation and leadership in clean energy projects. It also strengthens collaboration between Indigenous communities and the public sector and ensures Indigenous perspectives are reflected in decision-making through expert review panels and advisory bodies
Evaluation findings
- All streams met or were on track to achieve outputs in signing contributions and grant agreements. As of March 2025, CERRC had signed a total of 240 grant and contribution agreements, with 86% being Indigenous-led or Indigenous-partnered. Another 6% involved Indigenous Peoples as beneficiaries, and overall, these outcomes exceeded established targets.
- Over time, the percentage of funding agreements that focussed on capacity-building activities increased, because capacity limitations remain a major barrier for Indigenous communities. This growing focus on capacity-building activities also may partly reflect unintended consequences of program changes that incentivized the development of lower-cost, early-stage proposals rather than higher-cost, longer-term projects involving multiple funding sources and levels of government.
- CERRC has not yet met targets for renewable energy installations and diesel reductions. By March 2025, completed projects were displacing about 6 million litres of diesel annually, and data suggests that they will continue to fall short of the target of 35 million litres by 2030. Even with pending projects, the program anticipates reaching only 28 million litres by 2027. Correspondingly, GHG reductions will also likely be less than expected.
- The program’s progress towards intermediate and ultimate outcomes is ongoing. Almost all available CERRC funding has been allocated through funding agreements signed as of March 2025, but over time the program has learned that projects in rural and remote communities require longer timeframes due to technical and seasonal challenges. Therefore, a full assessment of outcomes is not yet possible as some key results will only be known closer to the end of current funding (March 2027).
Recommendations and management response and action plan
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Recommendation |
Management response and action plan |
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Recommendation 1: The ADM ESS, ADM EETS and ADM CFS should collaborate with Indigenous partners to review and, if necessary, revise its expected results and ensure that appropriate data collection tools and processes are in place to measure program performance. This could include identifying indicators and targets to more comprehensively assess program performance related to capacity building and better reflect the needs and expectations of Indigenous communities. |
Management agrees. Management agrees that CERRC’s performance framework should be reviewed, in conjunction with confirmation of funding renewal, to ensure the data collection and management tools can adequately track and report on key program performance indicators. As part of this review process, program officials will engage key Indigenous partners, stakeholders and right-holders, to align the performance framework with a reconciliation-focused delivery model. This work is already underway. The Wah-ila-toos Performance Measurement Framework project was launched in early 2025 through an external contractor, that includes a review of existing performance measurement criteria, input from Wah-ila-toos staff and the Indigenous Council, and developing a culturally responsive performance measurement framework tool for programs seeking to capture performance results for capacity building outcomes and community-specific qualitative benefits. Given the current program is sunsetting in March 2027, most of this work will focus on informing future programming and renewal considerations. Position responsible: Director General of Energy Resources Branch, Director General of Office of Energy Research and Development, and Director General of Trade, Economics and Industry. Timing: By end of September 2026: Complete targeted review and document lessons learned and recommend approaches. By December 2026: Integrate findings into renewal or successor program design materials. |
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Recommendation 2: The ADM ESS, ADM EETS and ADM CFS should develop a strategy to improve the sharing of information, lessons learned and best practices observed from CERRC and CERRC-funded projects across program streams and across the Wah-ila-toos Network and, where relevant, with other clean energy and Indigenous-focussed programs. |
Management agrees. Management agrees that there is value in strengthening the systematic sharing of information, lessons learned, and proven practices across the Wah-ila-toos Network, and related clean energy and Indigenous-focused programs. Given the cross-cutting nature of this work, the Wah-ila-toos Administrative Unit will develop a practical, proportionate knowledge-sharing strategy and action plan in coordination with Program streams. This will build on existing coordination mechanisms, with a focus on improving internal learning and supporting future program design rather than creating new reporting requirements for funded communities. Key actions: Develop a knowledge-sharing strategy and action plan, including identification of priority themes (e.g. capacity building, supply chains, operations and maintenance, community readiness, etc.). Report on lessons learned from funded projects and evaluation findings. Disseminate lessons learned and best practices through existing Wah-ila-toos Network platforms at the working- and DG-level and, where appropriate, with external partners. Position responsible: Director General of Energy Systems Branch, Director General of Office of Energy Research and Development, and Director General of Trade, Economics and Industry. Timing: By December 2026: Complete a knowledge-sharing strategy and action plan, including Identification of priority themes and existing sources of lessons learned. By March 2027: Disseminate reporting on lessons learned and proven practices. |
About the evaluation
The evaluation was conducted by NRCan’s Audit and Evaluation Branch to comply with the Financial Administration Act.
This report is a formative evaluation, meaning that it presents a picture of the results attained by CERRC within the timeframe covered by the evaluation period only. The evaluation examined questions of the program’s relevance and performance, from 2017-18 to 2024-25.
Document review. Reviewed approximately 300 program documents.
Data analysis. Analyzed summary financial and performance data for funding agreements signed by March 2025.
Administrative file review. Conducted an in-depth review of administrative files for 65 agreements completed by December 2023.
Key informant interviews. Interviewed 57 key informants (NRCan, Indigenous Council, other federal departments, and funding recipients).
Literature review. Reviewed published literature to identify best practices, lessons learned, and alternative program approaches.