Climate Action Incentive Fund: Small- and Medium-sized Enterprises Project stream

The Climate Action Incentive Fund (CAIF) SME Project stream provides support to small- and medium-sized enterprises (SMEs) for retrofit projects in sectors such as Building, Transportation, Industry, Waste, Agriculture, and more.

The CAIF program is available to applicants operating in the provinces of Saskatchewan, Manitoba, Ontario, and New Brunswick.

Application period

The application period closed on November 22, 2019. Selection process is under way. We thank all applicants for their participation.

Eligible recipients

  • Small-sized incorporated enterprises of 1-99 employees
  • Medium-sized incorporated enterprises of 100-499 employees

(Note: Participants in the Output-Based Pricing System are not eligible.)

Eligible rebate amount

  • Up to 25% of project’s total eligible costs
  • No less than $20,000 CAD and no more than $250,000 CAD per project and per recipient
  • A $250,000 CAD funding cap will apply to the group of applicant franchisees who operate under the same franchise trade name in each eligible province

Eligible project categories (non-exhaustive) and sample activities

Agricultural retrofits

  • Changes to agricultural processes to improve energy efficiency
  • Fuel switching to lower emitting energy sources in agricultural operations
  • Other energy efficiency measures in the agricultural sector

Building retrofits

  • Enhancements to building envelope (with direct energy savings), including energy efficient windows/doors/skylights, increased insulation, weatherproofing, and glazing
  • Energy efficient lighting system
  • Heating, ventilation, and air conditioning (HVAC) equipment/systems/controls
  • Water heating retrofits, including high efficiency condensing water heating
  • High-efficiency motors and controls
  • Energy management controls, including building automation systems
  • Fuel switching to lower emitting energy sources in existing buildings

Electricity, energy or fuel production

  • District energy (heating and/or cooling)
  • Combined heat and power for own use
  • Renewable energy systems (e.g. solar photovoltaic, wind energy, micro-hydro, stand-alone storage systems) on-site and for own-use
  • Low-emission fuel production for own-use

Industrial process improvements

  • Retrofitting and upgrading of existing equipment used for industrial processes
  • Fuel switching to lower emitting energy sources
  • Process changes
  • Waste-heat recovery

Transportation retrofits

  • Heavy-duty vehicle retrofits, including energy efficiency and/or fuel switching to lower emitting sources
  • Marine vehicle retrofits, including energy efficiency and/or fuel switching to lower emitting sources


  • Energy efficiency measures in waste management

How to apply for funding

The application period has now closed. We thank all applicants for their participation.

Application guide: Preview the applicant guide.

Important: The act of submitting an application form and application certification does not guarantee selection nor provision of funding under the Climate Action Incentive Fund SMEs project stream.

Preview the Funding agreement (PDF – 228 kB) template.

Frequently asked questions

Contact us

To help ensure transparency and fairness and given our limited capacity to answer all requests for information, ECCC will refrain from individually assisting applicants with their applications.

For general information only regarding eligibility criteria and program parameters you may contact 1 800 O-Canada (1-800-622-6232).

For detailed enquiries, you can refer to our Frequently asked questions and our Application Guide. You are also encouraged to look for updates to the Frequently asked questions, as more answers will be added in this section on a regular basis.

For any technical issues related to website functionality and access (e.g., GCKey and Single Window Information Manager), please contact Under normal circumstances, you can expect to hear back from us within five (5) business days.

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