The Low Carbon Economy Fund


The $2 billion Low Carbon Economy Fund (LCEF) is an important part of the Pan-Canadian Framework on Clean Growth and Climate Change (the Framework).

The Fund supports the Framework by leveraging investments in projects that will:

  • generate clean growth
  • reduce greenhouse gas emissions
  • help meet or exceed Canada's Paris Agreement commitments

The Fund is helping to:

  • create jobs for Canadians for years to come
  • deliver clean, sustained growth
  • support innovation
  • reduce energy bills

The Fund has two parts:

  • Low Carbon Economy Leadership Fund
  • Low Carbon Economy Challenge

Low Carbon Economy Leadership Fund

This Fund is providing up to $1.4 billion to provinces and territories that have adopted the Framework. The funding helps them deliver on their commitments to reduce greenhouse gas emissions.

This funding recognizes the key role provinces and territories play in implementing the Framework and addressing climate change. Provinces and territories are each eligible to receive $30 million plus funding based on population.

Starting in fall 2017, provinces and territories worked with the federal government to agree on which projects to fund. Bilateral funding agreements are finalized with most jurisdictions and many projects are underway.

For the province of Ontario: Energy Savings Rebate Program for Retailers

From a portion of Ontario’s allocation through the Low Carbon Economy Leadership Fund, the Energy Savings Rebate program will allow Ontario retailers to offer rebates on the purchase of approved energy efficient products. This will help Ontarians to reduce energy use, save money and address climate change. For more information, including instructions on how to apply, see the Energy Savings Rebate page.

For more information:

Low Carbon Economy Challenge

The Low Carbon Economy Challenge will provide over $500M. While funding decisions continue to be made, funded projects are leveraging ingenuity across the country to reduce emissions and generate clean growth. For further information, see the Challenge home page.

News releases

2019 news releases
2018 news releases



Lake Ontario is helping keep Toronto cool.

Deep lake water cooling uses cold lake water to cool downtown buildings.

CARLYLE COUTINHO (President and Chief Operating Officer, Enwave Canada): My name is Carlyle Coutinho, and I’m the president and chief operating officer for the Canadian division of Enwave. Canada’s Low Carbon Economy Fund is investing $10 million in Enwave’s deep lake water cooling facility. Enwave plans to use this funding to expand our deep lake water cooling facility and our capacity in the city of Toronto. What that allows for is the greater displacement of electricity use—therefore reducing carbon—displacement of water use, and just general conservation. And we want to take our solutions that might be at scale corporately or in a large downtown sector and be able to apply it to smaller areas like a residential 400-unit-residential-homes district and scale it across North America and the world. So it allows for a made-in-Canada solution that we can push out across the world.

A climate-friendly project from Low Carbon Economy Fund.

Table of projects
Program name Project name Project description Ultimate recipient name Program contribution Estimated total project cost Province / Territory Announcement Date Rank
Low Carbon Economy Fund Residential Retail Products - Energy Efficiency Improvements Energy Efficiency Alberta (EEA) will introduce a second wave of its Residential Retail Products program, supporting additional products and emphasizing rural communities. Builds on partnerships with retailers who deliver instant rebates campaign. Includes: LED bulbs and fixtures, water savings devices, smart power bars, dimmers and motion sensors, and programmable thermostats. Supported by consumer education. Individuals, Business $25,000,000 $50,000,000 Alberta Apr 5 2018 2
Low Carbon Economy Fund Alberta Indigenous Solar and Energy Efficiency Retrofit Programming Expands existing Alberta Indigenous Solar Program and Alberta Indigenous Energy Efficiency (Retrofit) Program for 2018/19 and 2019/20. Would allow an increased number of Indigenous communities to participate in the solar program and allow a larger number of retrofits. Indigenous Communities, Organizations and Governments $7,000,000 $15,200,000 Alberta June 25 2018 2
Low Carbon Economy Fund On-Farm Energy Management Program Offers cost-sharing incentives on the purchase of equipment that will improve energy efficiency to Alberta producers. Expands existing program and allows larger producers to propose large projects than current limits. Example equipment includes ag-specific applications for heating, ventilation and air conditioning (HVAC), lighting and electrical, controls, motors, process heat system, building envelope, refrigeration, compressed air or steam and plug loads. Farmers, Processors $14,000,000 $68,333,000 Alberta Jan 29 2018 2
Low Carbon Economy Fund Affordable Housing - Exterior Energy Savings Program Will enable retrofits in government owned and supported affordable housing units, prioritizing units requiring retrofits identified through energy efficiency audits. Eligible building retrofits include: - exterior doors and windows; - attic, exterior wall and basement insulation; and - heating, cooling, water and lighting systems. Province (Alberta Seniors and Housing) $9,000,000 $25,000,000 Alberta May 4 2018 2
Low Carbon Economy Fund Industrial Energy Efficiency Facility and Equipment Upgrades Program Program will provide support to industry to accelerate adoption of processes, systems, and technologies to increase energy efficiency and decrease greenhouse gas emissions. It will provide technical assistance, financial support, and project management services and will fund energy management information systems, embedded energy managers, capital projects, and behind the meter combined heat-and-power electricity generation. Industries $43,000,000 $176,800,000 Alberta May 10 2018 2
Low Carbon Economy Fund Residential Energy Efficiency Program NB Power seeks to expand its suite of current programming for residential customers: residential retrofit; energy efficient product rebate; low-income energy savings; home energy report; and enablement and market transformation. Individual $23,747,494 $92,224,492 New Brunswick May 18 2018 2
Low Carbon Economy Fund Commercial Energy Efficiency Program NB Power seeks to expand its suite of current programming for commercial customers: commercial buildings retrofit; small business lighting; and enablement and market transformation. Commercial $6 553 059 $33,371,059 New Brunswick May 18 2018 2
Low Carbon Economy Fund Integrated Low Carbon Homes Expansion and integration of in-home efficiency and clean energy activities to both electric and oil/non-electric-heated homes. This includes: expanding delivery of programs to oil-heated homes; and further incentives to all homes for GHG-reducing measures. Measures will be created as needed to serve low-income, rental housing and/or First Nations. Individuals $56,000,000 $528,000,000 Nova Scotia July 10 2018 2
Low Carbon Economy Fund Building Energy Retrofit Partnership The Building Energy Retrofit Partnership will be an integrated offer of information, services and financial incentives to accelerate retrofits that maximize greenhouse gas (GHG) reductions and transform the market for future high efficiency codes and standards. It will cover energy efficient gas equipment, fuel switching to clean electricity, and envelope improvements. Individuals, Businesses $12,000,000 $24,000,000 British Columbia Sept 28 2018 2
Low Carbon Economy Fund Government Greenhouse Gas Fund Application based grant program to fund greenhouse gas (GHG) reduction projects for Governments in the Northwest Territories, including the Government of the Northwest Territories, community and Indigenous governments. Eligible projects include fuel switching, building energy retrofits, district heating and vehicle retrofits. Territory, Municipal &
Indigenous Governments
$7,329,312 $9,772,417 Northwest Territories Oct 11 2018 2
Low Carbon Economy Fund Enhance Arctic Energy Alliance Programs and Services This proposal seeks to expand energy programming delivered by the not-for-profit Arctic Energy Alliance (AEA). AEA delivers public facing energy efficiency, conservation, and renewable and alternative energy programs for residents, business and communities. The new proposed programs range from rebate programs, energy auditing services, and provision of technical support to clients. Individuals, business $7,096,250 $20,725,000 Northwest Territories Oct 11 2018 2
Low Carbon Economy Fund Active Carbon Sequestration in Forestry This is a program to support active forest regeneration in Northwest Territories (NWT) to sequester carbon. The Government of the Northwest Territories (GNWT) will support a) tree planting (120 ha), in previously forested areas in NWT that are not recovering properly after harvesting or fire activity; and b) tree thinning (60 ha) in high density pine areas to maximize growth. Specific sites have not yet been identified but will be selected based on considerations that include climate change adaptation considerations such as assisted migration (planting in areas where climate change is moving faster than natural tree migration). Forestry $999,750 $1,333,000 Northwest Territories Oct 11 2018 2
Low Carbon Economy Fund Energy Efficiency Upgrades for Public Housing This proposal will support energy efficiency and heating fuel substitution in Government of the Northwest Territories (GNWT)-owned public housing. It includes energy retrofits as well as energy enhancements for buildings. For example, GNWT is proposing installation of a biomass-based heating system (with propane backup) in addition to energy efficiency measures such as air sealing, LED light replacement, and thermostat replacements, as well as some insulation and window upgrades. Low income families and individuals $4,000,000 $5,333,333 Northwest Territories Oct 11 2018 2
Low Carbon Economy Fund Energy Efficiency Upgrades to Government of the Northwest Territories Marine Vessels The Government of the Northwest Territories (GNWT) will undertake energy upgrades to two ferries and one Marine Services tugboat in its fleet. Upgrades will include repowering vessels with more efficient engines and hydrodynamic upgrades. Northwest Territories Marine Transportation $3,799,688 $5,066,250 Northwest Territories Oct 11 2018 2
Low Carbon Economy Fund Installation of two new District Heating Systems (DHS) in Sanikiluaq and Taloyoak The objective of this project is to install a new district heating system in each of the two communities in order to capture residual heat from diesel fuel generators that are providing electricity to the communities. The residual heat will be used to provide space heating and hot water to nearby commercial and institutional buildings (including schools, a pool and garages). The emission reductions are based on the reduction of on-site fossil fuels used for heating and hot water in the connected buildings. Commercial and Public Buildings $5,551,087 $7,401,450 Nunavut Sept 10 2018 2
Low Carbon Economy Fund Accelerated Modernization and Improvement Project for Public Housing The Nunavut Housing Corporation (NHC) is proposing accelerated replacements and retrofits program for public housing to achieve energy efficiency improvements and reduction of emissions across the territory. The program will target: Building Envelope Upgrades (Insulation / Weather Stripping / Venting Barrier/ Ventilation /Windows/Doors); Hot Water Tank Upgrades; and Furnace/Boiler upgrades. Low income families and individuals $6,000,000 $8,000,000 Nunavut Sept 10 2018 2
Low Carbon Economy Fund ZooShare Biogas Plant ZooShare Biogas Co-operative Inc. is proposing to add new digester technology to their existing biogas plant in Toronto, expand processing capacity by 15,000 tonnes and improving their ability to manage material. The location of the biogas plant is owned by the Toronto and Region Conservation Authority, leased to the Toronto Zoo and then subleased with approval from TRCA to ZooShare for the biogas project. This initiative will economically separate organic material and contaminants, responsibly apply the digestate for agricultural purposes, and leverage economies of scale. The proposed project includes installing self-cleaning digester technology that can remove contaminants on an ongoing basis rather than requiring costly shut downs every few years. This equipment also allows the biogas plant to process additional materials that otherwise are directed to the landfill, like packaged organics. ZooShare will also work together with nearby farms to offer digestate to displace industrial fertilizer, and establish best practices therein. This could establish an accepted market value for digestate as a fertilizer/soil amendment and thus accelerate realized value for biogas plants and end markets. The applicant has stated that receiving value from the farms for the nutrients provided is essential to success. ZooShare Biogas Co-operative Inc. $2,660,000 $6,650,000 Ontario March 11 2019 2
Low Carbon Economy Fund McGill University – Energy Conversion Portfolio This proposal consists of the conversion of fossil fuel based heating equipment to electricity at two separate sites belonging to McGill University. The first project will convert one of four natural gas-fired steam boilers to electricity, as well as the installation of a new, upgraded boiler at McGill's Downtown campus, which will lead to 5 million meters cubed of natural gas reductions. The second project will convert heating oil-based equipment to electricity at McGill's Gault Nature Reserve, which will lead to annual reductions of 20,000 L of #2 heating oil. Electricity in both cases will be provided from Hydro-Quebec's grid. McGill University $1,056,280 $5,577,088 Quebec Feb 22 2019 2
Low Carbon Economy Fund Landfill Gas Collection System Expansion The City of Regina proposes to expand the landfill gas collection system at Regina’s landfill with new gas wells, flare and associated infrastructure to increase the collection and combustion of methane/landfill gas. The scope of this project includes two main activities: installation of 30 new gas collection wells and one new flare, with associated infrastructure for both. Expansion of the landfill gas collection is estimated to reduce GHG emissions up to 30%. City of Regina $1,295,200 $3,238,000 Saskatchewan Feb 12 2019 2
Low Carbon Economy Fund Waterloo Landfill West Gas Header The Region of Waterloo proposes three activities to increase gas collection efficiency at the Waterloo Landfill, reducing GHG emissions. This three activities include the installation of the West Gas Header including additional piping and associated valve chambers for connection to vertical and horizontal gas collection well infrastructure, the installation of incrementally additional horizontal landfill gas trenches on the west portion of the site, and upgrades to existing vertical original chamber wellheads to flexible above-grade wellhead assemblies which will increase gas flow. Region of Waterloo $1,456,783 $3,641,958 Ontario March 12 2019 2
Low Carbon Economy Fund The City of Calgary, Waste & Recycling Services (WRS) landfill gas (LFG) collection system expansion The City of Calgary’s Waste and Recycling Services (WRS) is intending expand its landfill gas collection systems across 3 different project sites. The East Calgary Waste Management Facility will install new vertical landfill gas collection wells and associated well distribution piping, mechanical and electrical upgrades to expand the volume of landfill gas collected. It is expected that GHG emissions will be reduced by more than 630,000 tonnes of CO2e by collecting and flaring landfill-generated methane. Calgary’s WRS will also design and construct approximately 15 new vertical landfill gas collection wells in the Phase 1 and 2 project sites at the Spyhill Waste Management Facility, which will reduce GHG by converting methane into carbon dioxide. City of Calgary $5,884,326 $14,700,751 Alberta Mar 11 2019 2
Low Carbon Economy Fund Deep Lake Water Cooling Fourth Intake - Toronto Enwave will add a 4th Intake to their Deep Lake Water Cooling district energy system, providing additional low-carbon cooling to Toronto and reducing supplemental cooling from electricity, gas and fuel oil during peak periods. It will increase capacity by 30,000 gallons per minute (GPM), add 18,000 tons of peak cooling (50 million ton-hours annually), increase cooling use from 65% to 83%, provide service to an additional 1.9 million m2 of floor space, and reduce GHG emissions by 714,000 t CO2e over its lifetime. Enwave Enegy Corporation $10,000,000 $82,508,753 Ontario Jan 10 2019 2
Low Carbon Economy Fund Optimizing Energy Efficiency in University of Saskatchewan Buildings The University of Saskatchewan (UofS) proposal focuses on GHG emission reductions through reducing electricity, natural gas and cooling water consumption in campus buildings. A utility analysis of 26 buildings will be conducted. An initial retro-commissioning (RCx) of the buildings will be undertaken with a consultant. This brief examination will identify systems, verify equipment and identify any low cost measures that can immediately generate GHG emission reductions. It will also identify areas of concern. A final RCx will follow, focusing on the areas identified in the initial RCx. This final RCX will also identify changes to the design intent of the buildings that would result in reduced energy consumption. Using these results, the consultant will develop reports on the efficiency measures, identifying the costs of each and quantifying the GHG reductions. Any measures deemed to be economically viable that will produce sufficient GHG reductions will be implemented by external contractors. The UofS has implemented an energy management information system (EMIS) utilizing software called Kaizen. Where possible, the EMIS will be utilized to measure the GHG reductions. On buildings where this has not been implemented, reductions will be calculated using manual measurements and data loggers. University of Saskatchewan $1,509,375 $3,018,750 Saskatchewan March 13 2019 2
Low Carbon Economy Fund Reducing Methane/GHG Emissions from Oil Sands Tailings and Ponds Titanium Corporation’s CVW™ process is a suite of tailings remediation technologies designed to intercept oil sands froth treatment tailings (FTT), and recover solvent, diluted bitumen, and valuable minerals. The recovery of hydrocarbons enables fugitive methane emissions avoidance from tailings ponds and more efficient tailings remediation. Solvent extraction is essential to the GHG emissions reductions claimed by the applicant. When solvents such as naphtha gas (used in the processing of bitumen by the mine) remain in the tailings, methanogenic bacteria break down the solvent to produce substantial amounts of methane, resulting in large fugitive methane emissions from such tailings ponds. These emissions are estimated to be hundreds of kilotonnes of carbon dioxide equivalent across a large mining operation. By removing up to 80% of the remaining solvent, these fugitive methane emissions should be correspondingly reduced. This proposal involves the engineering and construction of CVW™ with Canadian Natural Resources Ltd at their Horizon mine in Alberta by 2022. Up to 10% of fugitive methane emissions can be avoided site-wide. Further, zircon and titanium minerals will also be recovered in a new diversified export industry for Canada. Titanium Corporation Inc., Canadian Natural Resources Ltd. $40,000,000 $313,252,800 Alberta March 14 , 2019 2


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