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Up-front Multi-year funding – Green Municipal Fund

Name of recipient Green Municipal Fund (GMF)
Start date March 31, 2000
End date Ongoing
Strategic Outcome 2. Natural resource Sectors and Consumers are Environmentally Responsible
Link to the department’s Program Alignment Architecture 2.1 – Energy–Efficient Practices and Lower-Carbon Energy Sources
2.1.4 – Energy Efficiency

The 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.  Budget 2016 announced $125 million in funding to the FCM to enhance the GMF, including for projects that reduce greenhouse gas emissions. Previously, 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 reduction plans, feasibility studies, pilot projects and capital projects. At least 30% ($150 million) 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 field tests, 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 $5 million or $10 million for high-ranking projects, typically combined with a grant amount for 15% of the loan amount, to a maximum of $750,000 or $1.5 million for high-ranking projects. 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 Advisory 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 Environment and Climate Change Canada (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 Budget 2016 announced an additional $125 million endowment transferred to the FCM GMF in 2017-2018, out of which NRCan’s contribution is $62.5 million.
Significant audit findings by the recipient during the reporting year, and future plan There was no audit carried out in 2017-18. The next five-year review and performance audit will take place in 2019.
Significant evaluation findings by the recipient during the reporting year, and future plan An evaluation of the GMF was not conducted in 2017-18. The next evaluation is planned for 2019.
Summary of results achieved by the recipient The 2017-18 GMF Annual Report will be available on the FCM website.
Performance information (dollars)
2015–16 Actual
2016–17 Actual
2017–18 Planned
Total authorities available for use
2017–18 Actual
spending (authorities used)
Variance (2017–18 actual minus 2017–18 planned)
0 0 0 62,500,000 62,500,000 62,500,000

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