Government of Canada and the Federation of Canadian Municipalities champion Green Buildings Week with $85.5 million investments on sustainable housing projects

EDMONTON, AB, Sept. 10, 2025 /CNW/ - As Canada marks Green Buildings Week, we are taking action to create a clean, affordable future. As the third-largest source of greenhouse gas emissions, Canada's buildings are a critical opportunity in our fight against climate change. That is why the Government of Canada and the Federation of Canadian Municipalities (FCM) are stepping up with practical, affordable solutions that deliver tangible results for Canadians.

Today, the Honourable Gregor Robertson, Minister of Housing and Infrastructure, on behalf of the Honourable Tim Hodgson, Minister of Energy and Natural Resources, the Honourable Julie Dabrusin, Minister of Environment and Climate Change, and Rebecca Bligh, FCM President, unveiled an $85.5 million investment to support energy-efficient and affordable housing across Canada. The investment, made through the Green Municipal Fund's (GMF) Sustainable Affordable Housing (SAH) initiative, provides $67.9 million for capital projects and pilots and $17.6 million for planning and feasibility studies.

The SAH initiative was 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, 4,100 homes have been built or retrofitted across the country through the program. 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.   

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.

One of the projects supported through this funding is the Sundance Housing Co-operative Deep Energy Retrofit in Edmonton, Alberta. Established in 1978, the not-for-profit provides affordable housing for young families, singles, and seniors. With this support, its original 59 townhouses—built in the late 1970s—have been upgraded with modern insulation, ventilation, and solar power. The retrofit has eliminated natural gas use, reduced energy consumption by up to 94 percent, and is expected to save the Co-Operative as much as $100,000 annually, keeping housing costs low while improving comfort and long-term sustainability for residents. It also stands as the largest retrofit of its kind in Canada using prefabricated wall panels, setting an example for other housing providers across the country.

Other notable projects include:

• Aspen Heights Affordable Energy-Efficient Townhouse Development in Saskatoon: With funding support from GMF's SAH program, Aspen Heights is a 56-unit townhouse development that was completed in 2024. It provides a fresh approach to affordable housing, where comfort, sustainability, and community truly come together. The homes are constructed with energy-saving features including triple-pane windows, insulated concrete foundations for increased warmth, extra-thick walls, high-quality insulation, and heat pumps with natural gas backups. Combined, these features work together to lower utility bills for residents and reduce greenhouse gas emissions.

Canada has a proud track record—and we're building on it.  We're driving ongoing progress   through strong partnerships with provinces, territories, municipalities, Indigenous partners and local delivery agents to scale up impact.

This is a pivotal moment—and we're treating it with the urgency it demands. As the world shifts towards clean energy, Canada is moving with purpose to grow a competitive, sustainable economy. That means accelerating solutions—like green buildings—that lower emissions and improve affordability at the same time.

Quotes

"This investment is about building affordable homes that are also sustainable and resilient. By supporting projects like the Sundance Housing Co-operative retrofit, we're ensuring Canadians have access to housing that reduces costs for families while strengthening communities for the future

— The Honourable Tim Hodgson, Minister of Energy and Natural Resources

"Our government is committed to ensuring every Canadian has a safe, affordable place to call home. Today's investment will help build and retrofit housing that meets the needs of families today while preparing for the challenges of tomorrow. By expanding access to affordable housing that is also efficient and resilient, we are making life more affordable and secure for Canadians."

— The Honourable Gregor Robertson, Minister of Housing and Infrastructure

"Greener homes mean healthier communities and lower costs for families. By investing $85.5 million through the Green Municipal Fund's Sustainable Affordable Housing stream, we're helping communities across the country cut emissions, improve resilience, and deliver real climate solutions. Innovative projects like the Sundance Housing Co-operative retrofit in Edmonton show how affordable and climate resilient housing can go hand in hand. This is how we build a cleaner, stronger, and more sustainable Canada."

 — The Honourable Julie Dabrusin,  Minister of Environment and Climate Change

"Housing affordability and climate change are two of the biggest challenges facing Canadians in communities big and small across the country. By supporting energy-efficient retrofits and net-zero construction, we're addressing both crises by making homes more affordable, cutting down emissions and operational costs. Projects such as the Sundance Housing Co-operative in Edmonton show how smart investments can create safe and stable housing while boosting local economies. These retrofits also protect and extend the life of older buildings, keeping valuable community housing in place for years to come."

—  Rebbeca Bligh, FCM President

Quick Facts

Since 2020, SAH has:

• Funded 385 projects, supporting more than 4,100 affordable units
• Enabled planning and study work on more than 31,000 additional units
• Achieved average GHG reductions of 70% and energy savings of 47% per project
• Delivered up to $200/month in utility savings for some tenants
• Supported small providers; more than 75% of approved projects came from organizations with portfolios under 100 units

For details about the Sustainable Affordable Housing grant recipients included in today's announcement, please see the backgrounder. 

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 2.98 million tonnes, funded more than 16,000 person-years of employment, enabled 31,000 sustainable affordable housing units, and contributed $1.53 billion to the national GDP via the more than 2,736 approved projects. GMF manages approximately $2.4 billion in programs funded by the Government of Canada.

Associated links

Federation of Canadian Municipalities

Green Municipal Fund

Sustainable Affordable Housing

SOURCE Federation of Canadian Municipalities (FCM)

Contacts: FCM Media Relations, 613-907-6395, [email protected]; Natural Resources Canada, Media Relations, 343-292-6100, [email protected]