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Municipal GHG Challenge Fund


The Municipal GHG Challenge Fund is a program funded by the proceeds from Ontario’s carbon market that aims to support community-led action on climate change.

The competitive application-based program will fund up to 100% of the eligible costs for greenhouse gas emissions reduction projects proposed by municipalities.

Municipalities may request up to $2 million per project and may submit applications for up to 2 projects.

The Municipal GHG Challenge Fund is part of Ontario’s Climate Change Action Plan to fight climate change, reduce greenhouse gas emissions and transition to a low-carbon economy. The action plan and cap and trade program form the backbone of Ontario's strategy to cut greenhouse gas emissions to 15 per cent below 1990 levels by 2020, 37 per cent by 2030 and 80 per cent by 2050.

What’s new for this round:

- Funding request can be up to $2 million per project

- Municipalities may submit two applications, both of which may be successful

- Projects must commence by July 2019 and must be complete by July 2022

- Projects are not eligible if they are intended to be registered as an offset initiative under the Climate Change and Low-carbon Economy Act, 2016, or used as the basis for offsetting or displacing GHG emissions

- Projects currently underway are only eligible if they have not begun construction or installation at the time of the application deadline


Deadline to apply is July 13, 2018.

Eligibility Requirements

Any Ontario municipality is eligible to apply.

Municipal projects that are eligible for funding would aim to reduce greenhouse gas emissions in any sector, including in buildings, energy supply, water, transportation, waste and organics. Projects that are currently underway are only eligible if they have not begun construction or installation at the time of the application deadline.

A higher score will be given to municipalities that have a completed community-wide GHG emissions inventory, targets, and plan, and to projects that align with the municipality’s GHG emissions planning. A higher score will also be given to applicants that will be leveraging funding for up to 50% of eligible costs from the municipality and/or other sources.

If a municipality has a population of less than 10,000, it will have the option to not be scored on the community-wide GHG emissions inventory, targets, and plan section.

Municipalities are encouraged to partner with community organizations and other municipalities to implement their project.

For more information, read the Municipal GHG Challenge Fund Program Guide.

How to apply

Step 1: all applications must be submitted electronically through Grants Ontario. Applicants must have a Grants Ontario account in order to apply.

Step 2: follow the guide and complete the application form through Grants Ontario.

Step 3: provide supporting documents. The following documents must be submitted with your application:

• Budget/Work Plan (see template below)

• Additional GHG Reduction Estimates Spreadsheet

• Copies or links to community-wide GHG emissions inventory, reduction targets, and reduction plan or equivalent (if applicable)

• Letter of commitment from any other funders (if applicable)

It is expected that the selected projects will be notified in December 2018.

Webinar details

The Ministry of Environment and Climate Change will be hosting three webinars on the Municipal GHG Challenge Fund in April and May. We encourage municipalities who may be interested in applying to the program to attend one of the webinars for a better understanding of the program and its requirements.

Webinars will be held on the following dates:

• 24 April 2018, 10:00 AM – 11:00 AM

• 25 April 2018, 10:00 AM – 11:00 AM

• 03 May 2018, 2:00 PM – 3:00 PM

Please register here https://www.eventbrite.ca/e/municipal-ghg-challenge-fund-round-two-webinar-registration-44807749184

Program Guidelines

Additional Resources



Last updated: May 3, 2018