Funding supports homeowners and affordable housing providers in reducing energy costs and improving quality of life, while adding jobs to communities coast-to-coast
AJAX, ON, Oct. 2, 2026 /CNW/ -- The Government of Canada and the Federation of Canadian Municipalities (FCM) today announced that $66.3 million in funding has been approved for 162 energy efficiency projects across the country. The investments were made through the Green Municipal Fund's (GMF) Community Efficiency Financing (CEF) and Sustainable Affordable Housing (SAH) initiatives and include capital projects, program design studies, and feasibility studies.
The announcement was made jointly by FCM's GMF Chair Berry Vrbanovic and the Honourable Julie Dabrusin, Minister of the Environment, Climate Change and Nature, from a Regional Municipality of Durham multi-unit rent-geared to income building currently undergoing retrofits to increase energy efficiency while enhancing comfort and air quality for senior residents. Announced in 2025, the four-building retrofit project has received a $4.8 million grant and $5.2 million loan through the Sustainable Affordable Housing initiative.
Energy-efficient buildings are essential to Canada's national prosperity and resilience. They are key to keeping energy bills affordable, to reducing GHG emissions, to improving health and comfort in the face of extreme weather, and to increasing skilled job opportunities and driving new investment.
By working together with supportive policies and investments, governments, industry, building sector organizations and other partners are increasing Canadians' access to the benefits of home energy efficiency and boosting the sustainability and economic resiliency of communities across the country.
Community Efficiency Financing
Included in this announcement is $34.6 million for 21 projects through GMF's Community Efficiency Financing initiative. This initiative is empowering municipalities and their partners to provide financing options for homeowners to reduce costs through energy efficiency home upgrades. On average, homeowners save 30% in energy costs following CEF-funded upgrades.
The financing programs are designed and administered by municipalities, utility providers, and third-party partners, and are built to remove the financial barriers that have historically kept energy upgrades out of reach for many Canadian homeowners.
Energy retrofits are increasingly recognized as a smart long-term investment – one that pays off in lower utility bills, improved living conditions, and increased property value, while putting more money back in the pockets of Canadian families.
Since launching in 2020, CEF-funded retrofit programs have been established in 47 municipalities across eight provinces, with over 16,000 homeowners anticipated to access home energy retrofits as a result. Today's announcement represents 21 programs of that portfolio, spanning communities from Atlantic Canada to British Columbia.
Sustainable Affordable Housing
Today's announcement includes $31.6 million for 141 projects through GMF's Sustainable Affordable Housing initiative (SAH). The SAH initiative launched in 2020 as a six-year, $300-million program to support not-for-profits, co-ops, and municipalities to retrofit existing housing and construct new, energy-efficient homes. To date, the program has supported more than 3,700 units across the country reducing emissions, lowering operating costs and improving housing quality. These projects are empowering rural, urban, and remote communities to address urgent housing shortages, build economic resilience, and enhance the quality of life for families, seniors, and individuals in need.
Regional breakdown of funded projects:
Region: |
CEF Projects |
SAH Projects |
Funding (Grants & Loans) |
Atlantic |
2 |
10 |
$1,887,637.00 |
QC |
1 |
35 |
$4,213,970.00 |
ON |
7 |
32 |
$36,235,143.00 |
Prairies |
6 |
30 |
$15,201,640.00 |
Territories |
0 |
1 |
$238,400.00 |
BC |
5 |
33 |
$8,501,971.00 |
For more information about the funded projects, please see the Community Efficiency Financing (CEF) and Sustainable Affordable Housing (SAH) backgrounders.
Quotes:
"Energy efficiency is an affordability solution. Together with the Government of Canada, FCM's Green Municipal Fund is helping Canadians lower their energy bills, improve their homes and build greater resilience to rising costs and a changing climate. This $66.3 million investment shows what strong federal-municipal partnership can deliver: practical solutions that improve people's lives and can be scaled in communities across the country."
-- Carole Saab, FCM CEO
"Through today's $66.3 million investment, affordable housing providers and homeowners in communities across Canada have access to the tools and support they need to reduce energy costs, while improving home comfort and providing greater protection from price shocks. These are real results that will impact the lives of thousands of Canadians, and FCM is proud to work alongside the Government of Canada as we continue this critical work."
-- Tim Tierney, FCM President
"Making homes more energy efficient is one of the most effective ways to reduce energy costs, improve comfort and cut emissions. Through support for Community Efficiency Financing and Sustainable Affordable Housing projects, we are helping communities across Canada make energy-saving upgrades, advance affordable housing solutions and build a cleaner, more sustainable future for Canadians."
-- The Honourable Julie Dabrusin, Minister of Environment, Climate Change and Nature
"Affordable housing and climate resilience are two of the most pressing challenges facing our communities. This investment is about improving the everyday lives of residents. By making affordable seniors' housing more energy efficient and resilient, we're creating more comfortable homes today while building stronger communities for the future. I thank the Government of Canada and the Federation of Canadian Municipalities for their partnership in making this possible."
-- John Henry, Regional Chair and Chief Executive Officer for The Regional Municipality of Durham
About FCM's Green Municipal Fund
FCM's Green Municipal Fund (GMF) is a globally unique organization providing funding and education to municipalities to help them both reach net-zero and build resilient communities, while also delivering economic and social benefits such as jobs, housing and infrastructure. Since inception in 2000, it has helped reduce greenhouse gas emissions by 3.02 million tonnes, funded nearly 60,000 person-years of employment and contributed $5.6 billion to the national GDP via the more than 2,850 approved projects. GMF manages approximately $2.4 billion in programs funded by the Government of Canada.
SOURCE Federation of Canadian Municipalities (FCM)
FCM Media Relations: [email protected], 613-907-6395
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