Funding the Low Carbon Economy Challenge

Key findings from the strategic environmental assessment conducted for the Low Carbon Economy Challenge.

The purpose of the Low Carbon Economy Fund (LCEF) is to reduce greenhouse gas (GHG) emissions under the Pan-Canadian Framework on Clean Growth and Climate Change (PCF). The PCF supports Canada’s commitment under the Paris Agreement and helps facilitate Canada’s long-term transition to clean growth through energy savings and jobs creation.

The LCEF is expected to have three primary outcomes:

  • GHG reductions
  • energy savings
  • job creation

The LCEF also supports the implementation of the PCF. As these outcomes are tied to implementing programs and projects designed specifically to mitigate climate change, the LCEF is expected to positively affect the environment. Specifically, the LCEF will support the 2016 to 2019 Federal Sustainable Development Strategy (FSDS) goal of effective action on climate change by:

  • supporting a transition to a low-carbon economy that contributes to limiting global average temperature rise to well below 2 degrees Celsius
  • supporting efforts to limit the increase to 1.5 degrees Celsius

The LCEF is split into two parts, the Low Carbon Economy Leadership Fund and the Low Carbon Economy Challenge.

  • The Leadership Fund recognizes the key role that provinces and territories are playing in implementing the PCF and addressing climate change
  • The Challenge recognizes the key role Canadians are playing and will support further efforts to reduce emissions, innovate, save money, and create jobs and healthier communities

Reporting on the progress of this initiative is a challenge due to the long-term nature of both climate change and the targeted outcomes. Impacts of actions taken today may only result in observable emissions reductions and enhanced climate resilience at points in the future. Still, the Government of Canada will review annual progress reports submitted by provinces and territories and other funding recipients to monitor and assess proposal-specific outcomes. Federal reporting on the LCEF overall will be included in the following:

  • FSDS reports
  • Mandate Letter Tracker: Delivering results for Canadians
  • Horizontal Management Framework for Clean Growth and Climate Change
  • Annual synthesis reports on the Pan-Canadian Framework provided to First Ministers


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