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You are here: Home / cat / Canada and FCM Commit $85.5 Million to Green Municipal Fund to Drive Sustainable and Affordable Housing Nationwide

Canada and FCM Commit $85.5 Million to Green Municipal Fund to Drive Sustainable and Affordable Housing Nationwide

Dated: September 11, 2025

Canada is taking decisive steps toward building a sustainable and affordable future, recognizing that energy-efficient housing is essential in the fight against climate change. With buildings representing the country’s third-largest source of greenhouse gas emissions, investments in green and resilient housing are central to reducing Canada’s environmental footprint while supporting inclusive communities.

In observance of World Green Building Week, the Honourable Gregor Robertson, Minister of Housing and Infrastructure, the Honourable Julie Dabrusin, Minister of Environment and Climate Change, and Rebecca Bligh, President of the Federation of Canadian Municipalities (FCM), announced an investment of $85.5 million through the Sustainable Affordable Housing (SAH) stream of the Green Municipal Fund (GMF). This funding package includes approximately $67.9 million dedicated to 21 capital and pilot projects, and $17.6 million allocated for planning and feasibility studies. The investment is designed to help municipalities of all sizes implement innovative housing solutions that are not only affordable but also energy efficient and climate-resilient.

Among the notable projects supported by this initiative is a deep energy retrofit of 59 townhouse units at the Sundance Housing Co-operative in Edmonton, Alberta. Utilizing the successful Dutch Energiesprong approach, this pioneering retrofit is expected to reduce total building energy use by up to 94 percent. The retrofit is particularly remarkable because it allows residents to remain in their homes throughout the construction process, representing the first panelized retrofit of its kind for a Canadian co-operative housing provider.

The funding under the Sustainable Affordable Housing stream aims to accelerate Canada’s transition toward low-carbon, resilient housing while simultaneously addressing the pressing need for affordable accommodations. Projects supported by the GMF will not only improve energy efficiency but will also enhance community well-being, create local jobs, and stimulate economic growth. The planning and feasibility studies will provide municipalities with the technical guidance and data needed to replicate successful approaches, ensuring that energy-efficient housing solutions can be scaled across Canada.

By investing in these initiatives, the Government of Canada and FCM underscore their commitment to a future where affordable housing and environmental sustainability go hand in hand. These projects serve as models for how municipalities can reduce greenhouse gas emissions, strengthen community resilience, and ensure that all Canadians have access to safe, affordable, and environmentally responsible homes. The GMF’s continued support reinforces Canada’s leadership in climate action and sustainable urban development, demonstrating that the path to a greener future begins at the community level, one building at a time.

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