The Capital project: Net-Zero Transformation program provides combined loan and grant funding to support municipalities in constructing innovative infrastructure that has significant potential to contribute to net-zero goals. Projects must demonstrate breakthrough innovation through new technologies, business models, or transformative applications of existing solutions.

This program targets capital projects that are physical assets following generally accepted accounting principles (GAAP). Projects must show significant greenhouse gas reduction potential either directly through implementation or indirectly by creating enabling conditions for broader emissions reductions.

Key requirements:

• Projects must be innovative, targeting significant performance improvements over best practice
• Must have completed an assessment of GHG reduction potential using verifiable evaluation processes
• Must meet climate resilience requirements (outside 100-year floodplain or with protective measures)
• Projects with new infrastructure over $2 million require climate risk assessment
• Strong replication potential and clear performance benefits preferred

Innovation criteria: Projects must demonstrate development/application of new knowledge, policy, practice, business model, or advanced technology; OR new/emerging application of existing technology in a manner representing substantive change to current operations.

Required supporting documents:

• Completed feasibility study (or equivalent)
• Environmental assessment executive summary
• Climate-resilience documentation
• Audited financial statements (non-municipal applicants)
• Evidence of municipal support (e.g., council resolution)

Equity considerations: Preference given to projects integrating anti-racism, equity, inclusion and reconciliation principles, inclusive engagement practices and social procurement.