The program provides combined loan and grant funding to support municipalities in constructing low-carbon community energy systems. Projects must deploy systems that mitigate greenhouse gas emissions, create social benefits and integrate into municipal asset management plans.

This funding is specifically for capital projects that build on completed feasibility studies and demonstrate strong community support. The program targets 100% renewable community energy systems with solid financial returns and measurable environmental impact.

Key Program Requirements:

Minimum Project Scale: At least two buildings required for district energy projects; renewable electricity systems must power multiple systems and buildings.

GHG Reduction Target: Thermal energy projects must reduce emissions by at least 40% compared to current performance, achievable within three years of implementation.

Feasibility Study: Must build on a completed GMF-funded feasibility study or equivalent that assessed technical, financial, environmental, social and economic impacts.

Community Support: Required records of local government council approval and initiation of impact assessment process where applicable.

Biomass Restrictions: For grid-connected communities, biomass combustion must be integrated into broader low-carbon district energy systems. Harvested wood is not eligible as fuel source; forest thinning for fire risk mitigation is eligible. Combined heat and power systems with biomass cannot be submitted under this program.

Climate Resilience: New infrastructure assets must be built outside current 100-year floodplains unless protection is demonstrated. Projects over $2 million require Climate Risk Assessments.

Multi-solving Approach: Higher evaluation scores for projects demonstrating excellence in sustainable materials management, biodiversity, socio-economic benefits and meaningful stakeholder engagement.