Doubling of Green Municipal Funds

Country	Canada
Year Implemented	2001
Policy Status	In force
Date Effective	2001
Agency	•Federation of Canadian Municipalities (FCM)
Funding	CAD 250 Million
Policy Supersedes	Green Municipal Funds
Policy Type	•Financial   •Funds to Sub-National Governments •Incentives/Subsidies •Public Investment
Policy Target	•Multiple Renewable Energy Sources   •All
Policy Sector	•Multi-sectoral Policy
Description	The Government of Canada doubled its funding (from CAD125 million to CAD 250 million) of the Green Municipal Enabling Fund (GMEF) and the Green Municipal Investment Fund (GMIF) aimed at stimulating investment in innovative municipal infrastructure projects and environmental practices for Canadian municipal governments and their public and private-sector partners. The Government of Canada established two complementary funds (CAD125 million in federal budget 2000) to stimulate investment in innovative municipal infrastructure projects and environmental practices by Canadian municipal governments and their public and private-sector partners. There are two funds: the Green Municipal Enabling Fund (GMEF) with CAD 25 million; and the Green Municipal Investment Fund (GMIF) with CAD100 million. The GMEF provides grants for cost-shared feasibility studies to improve the quality of air, water and soil through greater energy efficiency, the sustainable use of renewable and non-renewable resources and more efficient water, waste and waste water management. The GMIF supports the implementation of innovative environmental projects. Through GMIF, a municipal government can borrow at preferred interest rates of 1.5 per cent below the Bank of Canada bond rate. Partners are also eligible for loans at attractive rates. The Fund also provides grant funding for pilot projects with significant environmental impact and replication on a regional or national basis. As of June 2007, the Government of Canada had endowed the Federation of Canadian Municipalities with CAD 550 million to establish and manage the Green Municipal Fund (GMF). The 2005 federal budget added CAD 300 million to the existing CAD 250 million fund, of which CAD150 is earmarked for brownfield redevelopment.
URL	gmf.fcm.ca/Home/