2022-2023 Departmental Results Report: Up-front multi-year funding

2022-2023 Departmental Results Report
Up-front multi-year funding

From: Environment and Climate Change Canada

General information on up-front multi-year funding to Green Municipal Fund (GMF)

Recipient information: Green Municipal Fund (GMF). For more information, please visit the Green Municipal Fund site.

Start date: February 2000

End date: In perpetuity

Link to department’s program inventory: Clean Growth and Climate Change Mitigation

Purpose and objectives of transfer payment: Between 2000 and 2018, the Government of Canada endowed the Federation of Canadian Municipalities (FCM) with $675 million in funding to administer a revolving fund for grants, loans, and loan guarantees to encourage investment in municipal environmental projects. As per Budget 2019, the Government of Canada transferred an additional $950 million to the FCM for the GMF. As of January 1, 2023, the total amount transferred from the Government of Canada for the GMF amounts to $1.625 billion.

In 2024, the Government of Canada is expected to provide an additional $530 million to the GMF, bringing the total invested to $2.155 billion. This funding is related to Canada’s National Adaptation Strategy. Programs under this additional investment will consist of Climate-Ready Plans and Processes ($130 million), Adaptation through Action ($227 million), and Financing Adaptation ($173 million).

The GMF was established to have a positive impact on the health and the quality of life of Canadians by reducing greenhouse gas emissions and tackling the effects of climate change, improving local air, water, and soil quality, and promoting renewable energy and energy efficiency by supporting feasibility studies, pilot projects and capital projects within the municipal sector. The GMF also undertakes capacity building activities and programs.

The amount of GMF financing available to municipalities is directly related to the environmental benefits and/or innovation of the projects undertaken, with grant/loan combinations of up to 80% of eligible costs available for capital projects with exceptional environmental benefits.

As stipulated in the GMF Funding Agreement between the FCM and the Government of Canada, the FCM has created two advisory bodies: the Green Municipal Fund Council (GMF Council) and the Peer Review Committee. The GMF Council’s role is to assist the FCM Board of Directors—the GMF decision-making body—in approving projects proposed by municipalities. The 18-member GMF Council includes six federal members: two from Environment and Climate Change Canada (ECCC), two from Natural Resources Canada (NRCan), one from Infrastructure Canada, and one from the Canada Mortgage and Housing Corporation. All ECCC members are appointed by the FCM Board of Directors based on recommendations from the Minister of Environment and Climate Change.

The GMF Peer Review Committee comprises 75 members, of which 20 are Government of Canada representatives (10 from ECCC; 10 from NRCan).

There are no repayable contributions.

Audit findings by the recipient during the reporting year, and future plan: The FCM is currently preparing the GMF’s Annual Report for 2022-23. Although a draft has been shared with the GMF Council, it has not yet been published. The Annual Report is expected to be finalized in September 2023.

Evaluation findings by the recipient during the reporting year, and future plan: n/a -No evaluation undertaken in 2022-2023. However, a Horizontal evaluation is currently underway. This evaluation is conducted in collaboration with NRCan who lead the project. The results of the evaluation are expected by the end of December 2023.

Summary of results achieved by the recipient: TBD pending official release of the annual report for 2022-23.

Total funding approved (dollars): $950,176,537 (Loan) and $326,880,598 (Grant) (since inception and as of FY 2021-22).

Total funding received (dollars): $1,625,000,000 (as of January 1, 2023)

Financial information (dollars)

Planned spending in 2022–23

$139,000,000 (Loans)

$90,800,000 (Grants)

229,800,000 (Total)

Total authorities available for use in 2022–23 Maintain Fund assets of at least $1,012,000,000
Actual spending (authorities used) in 2022–23 TBD -pending the Annual Report for 2022-23
Variance (2022–23 actual minus 2022–23 planned) TBD -pending the Annual Report for 2022-23
Explanation of variance n/a

General information on up-front multi-year funding to Clayoquot Biosphere Trust (CBT)

Recipient information: Clayoquot Biosphere Trust (CBT). For more information, please visit the Clayoquot Biosphere Trust site.

Start date: February 2000

End date: In perpetuity

Link to department’s program inventory: Water Quality and Ecosystems Partnerships

Purpose and objectives of transfer payment: Creation of an endowment fund for the CBT, which is the cornerstone of the Clayoquot Sound United Nations Educational, Scientific and Cultural Organization (UNESCO) Biosphere Reserve. The CBT will use the income from the endowment fund to support local research, education, and training in the Biosphere Reserve region. There are no repayable contributions.

Audit findings by the recipient during the reporting year, and future plan: An independent financial audit of CBT is completed annually and was completed in May 2023 for the 2022 calendar year. No concerns were identified.

Evaluation findings by the recipient during the reporting year, and future plan: Per paragraph 10 in the Annex of the Canada Fund Agreement, at each annual general meeting, the Executive Director will report on program accomplishments for the reporting year and expected outcomes for the upcoming year.

Program accomplishments are detailed in the next section, “Summary results achieved by the recipient.”

With respect to future plans, the CBT will focus on the following objectives and deliverables for 2023-24:

Summary of results achieved by the recipient:

Total funding approved (dollars): $12 million

Total funding received (dollars): $12 million (in 2000)

Financial information (dollars)

Planned spending in 2022–23 $0
Total authorities available for use in 2022–23 $0
Actual spending (authorities used) in 2022–23 $0
Variance (2022–23 actual minus 2022–23 planned) $0
Explanation of variance n/a

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2023-11-09