Canada launches applications for $200 million fund to support pollution-cutting projects through the Low Carbon Economy Fund

News release

Apply now! Low Carbon Economy Fund. Person installing solar panels.
The Government of Canada supports new emissions reduction projects through the Low Carbon Economy Fund.

January 27, 2022 – Gatineau, Quebec

Across the country, Canadians are calling for ambitious climate action that keeps our air clean while building a strong economy for today and tomorrow alike. That is exactly what the Government of Canada is investing to deliver.

Through initiatives like the Low Carbon Economy Fund, the Government of Canada continues to work with partners across the country to cut pollution and build strong, resilient communities, while creating good jobs and growing a sustainable, clean economy.

Today, the Minister of Environment and Climate Change, the Honourable Steven Guilbeault, announced that the second round of applications is open for $200 million through the Low Carbon Economy Fund’s Champions stream, which supports a wide range of local pollution‑cutting initiatives in communities across Canada.

Champions stream investments support municipalities, businesses, not-for-profit organizations, and Indigenous communities to develop and implement transformational projects that significantly reduce their greenhouse gas emissions, create good jobs, and contribute to Canada’s 2030 emissions reduction target.

This second round of applications will build on the results for communities that the Fund has already delivered. Minister Guilbeault was joined today by New Brunswick Member of Parliament Wayne Long, as well as representatives of recipients selected during the first round of funding, including:

  • The City of Saint John, New Brunswick, which is installing a renewable heating and cooling system in a main commercial complex and undertaking energy retrofits in up to fifty municipal buildings throughout the city.
  • The City of Peterborough, Ontario, which is developing a centralized composting centre to divert food, leaf, and yard waste from landfills.
  • The Cowessess First Nation in Saskatchewan, which is installing solar arrays on five community-owned buildings.
  • The Centre de Traitement de la Biomasse de la Montérégie, which is installing new equipment to convert organic and food waste into renewable energy and hygienic dried biofertilizer.

Projects like these, funded under the Champions stream, are necessary for Canada to achieve its climate goals by reaching a cumulative reduction of over 24.5 megatonnes of greenhouse gas emissions, equivalent to cutting a year’s worth of energy emissions from approximately 5.7 million homes. While reducing carbon pollution, these projects will create good, middle‑class jobs and build community resilience to climate change.

The department is accepting expressions of interest for the new Champions stream until March 25, 2022. Applicants can visit the Low Carbon Economy Challenge website to find more information on whether their projects might be eligible, and how to apply.

Investments in climate action initiatives like this reaffirm the Government of Canada’s commitment to delivering a cleaner, safer environment while building a stronger economy.


“Since launching this program, we have seen an incredible response from communities that want to cut their pollution and be more energy efficient. The Low Carbon Economy Fund is helping communities across Canada to step up with projects that are significantly reducing greenhouse gases at a local level. Every one of these projects gets us closer to reaching our national emission reduction goals while contributing to a healthy, sustainable Canadian economy.”

– The Honourable Steven Guilbeault, Minister of Environment and Climate Change

“The Low Carbon Economy Fund has made a big difference in Saint John. The renewable heating and cooling systems and energy retrofits being installed will reduce our city’s carbon footprint by a quarter million tonnes of greenhouse gas emissions, which is like removing 76,000 cars off the road for a year. This smart partnership-based program is yet another step our Government is taking to build a cleaner, greener Canadian economy.”

– Wayne Long, Member of Parliament, Saint John–Rothesay, New Brunswick

“The City of Saint John is deeply committed to comprehensive climate action. As a coastal city, we’re very aware of the impacts of rising sea levels, flooding, and unpredictable weather. The Government of Canada, through the Low Carbon Economy Fund, was an important investor in the first phase of our city’s District Energy System Project, which will reduce the energy costs, greenhouse gas emissions, and fossil fuel dependency of buildings in our uptown core. This project is an excellent example of the innovative work our city staff are doing on the climate change file. We’re excited to hear that the fund will be helping even more jurisdictions.”

– Donna Noade Reardon, Mayor, City of Saint John

“The Government of Canada’s Low Carbon Economy Fund is an exciting opportunity for communities to take action on climate change locally, based on their own needs. The City of Peterborough is thankful to be a previous recipient of Low Carbon Economy Fund support with up to $6.1 million toward its $15.3 million project to create a City-wide household organic waste collection and composting program. The project is a major component of the City’s efforts to reduce greenhouse gas emissions by 45 percent by 2030 and achieve net zero by 2050.”

– Diane Therrien, Mayor, City of Peterborough

“Cowessess First Nation takes its stewardship responsibility seriously by striving to be green in as many areas as possible. Like many First Nation Communities, Cowessess seeks financial assistance from federal government transfers to invest in infrastructure, education, health care, social programs, and more. With current underfunding, balancing our green initiative goal and welcoming clean technology take a back seat to managing poverty. However, it is through the support of programs such as the Low Carbon Economy Fund, which allows us to implement clean energy sources, that we will in time reduce operating costs. This will help our Nation to meet our sustainability goals and stewardship responsibility. Renewable energy speaks to our traditional values of land stewardship and environmental sustainability and allows us to think of and plan for our children today and our children yet unborn.”

– Cadmus Delorme, Chief of Cowessess First Nation

“Reducing our carbon footprint is the number one priority of our generation and that of our children. Thanks to the $3 million in strategic financial support received from the federal Low Carbon Economy Challenge program, the CTBM has developed a technological showcase that will contribute to this national effort. More than four million cubic metres of renewable natural gas and 11,000 tonnes of certified organic fertilizer will be produced from agri-food waste. These value-added products will result in nearly 12,000 tonnes of greenhouse gases being removed from our environment annually. Through its Qarbonex subsidiary, CTBM is planning to develop other similar projects in Canada to provide innovative solutions for managing organic waste.”

– Benoit Paré, President of the Centre de Traitement de la Biomasse de la Montérégie Inc.

Quick facts

  • The Low Carbon Economy Fund supports energy-efficiency projects across Canada, helping Canadians and businesses reduce greenhouse gas emissions and save money by lowering energy bills.

  • The Champions stream of the Low Carbon Economy Fund was launched in 2018 with up to $450 million available for eligible applicants. Of that amount, over $200 million is available for a second round of applications for greenhouse gas emission–reducing projects, starting today.

  • Since its launch in 2018, the Low Carbon Economy Challenge (including the Champions and Partnerships streams) has supported approximately ninety projects with an investment of nearly $275 million.

  • The Fund leverages Canadian ingenuity by encouraging the implementation of clean technologies to reduce greenhouse gas emissions in support of Canada’s clean growth and climate action plans.

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Kaitlin Power
Press Secretary
Office of the Minister of Environment and Climate Change

Media Relations
Environment and Climate Change Canada
819-938-3338 or 1-844-836-7799 (toll-free)

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