Low Carbon Economy Challenge

Overview

The Low Carbon Economy Challenge (the Challenge Fund) is aimed at using Canadian creativity to cut greenhouse gas (GHG) emissions and lead to clean growth. The Challenge Fund supports a wide range of projects in Canada that use proven, low-carbon technologies to reduce GHG emissions.

Applicant guide

For more information about the Challenge Fund, please see the Low Carbon Economy Challenge Applicant Guide.

Assessment criteria

What makes a competitive application

The Challenge Fund is a competitive program. We evaluate all projects based on merit. Project merit is based on:

• GHG emissions reductions
• net-zero alignment, and
• co-benefits (environmental, social, or technical)

Considerations that influence project recommendation:

• being evaluated as high risk
• not aligning with net-zero goals
• projects may be recommended for funding to help represent Canada’s regions
• other factors may also impact project recommendations (such as organization type)

Cost-effectiveness

LCEF cost-effectiveness is the ratio of LCEF funding requested, per tonne of carbon dioxide equivalent (CO2 eq) reduced in 2030. Under the Challenge 2023 intake, the project types that were most cost-effective include:

• waste diversion
• biomass retrofits
• industrial retrofits
• anaerobic digesters
• waste heat recovery
• HVAC system retrofits
• carbon capture and utilization
• district energy system upgrades

Related links

• Low Carbon Economy Leadership Fund
• Indigenous Leadership Fund
• Implementation Readiness Fund

Contact

If you have questions about the Challenge Fund, please contact us by email at lcef-fefec@ec.gc.ca.