The Green Municipal Fund's Sustainable Municipal Buildings program provides combined grant and loan funding to help municipalities retrofit existing municipal buildings and community buildings for improved energy performance and reduced greenhouse gas emissions.

The program supports projects that implement one or more phases of a retrofit pathway — a sequence of measures designed to reduce GHG emissions by at least 50% within 10 years and achieve best practice energy targets within 20 years. Projects may focus on a single building or a portfolio of municipal buildings.

Eligible Building Types:

• City halls, town halls, administrative buildings
• Indoor ice rinks, indoor sports arenas, indoor swimming pools
• Public libraries
• Community and recreation centres (including gyms, halls, curling rinks)
• Arts and culture facilities (theatres, galleries, auditoriums)
• Police stations
• Multi-purpose buildings combining community functions with administrative services
• Fire halls, paramedic centres, public works buildings (eligible for stand-alone retrofits)

Eligible Retrofit Measures:

• HVAC systems and controls
• Iinsulation
• Windows and doors
• Hot water heaters
• LED lighting and lighting controls
• Solar panels and renewable energy systems
• Geothermal heat pumps
• Heat recovery systems (for arenas and pools)

Energy Performance Targets:

Projects must meet best practice Energy Use Intensity (EUI) targets based on building typology and climate zone:

• Typology 1 (offices, libraries, town halls): EUI target of 95 kWh/m²/year for climate zones 4–6; formula-based target for zones 7–8
• Typology 2 (ice rinks, pools, fitness centres, public works buildings): Must achieve at least 25% energy reduction compared to NECB 2020 baseline
• Typology 3 (mixed use): Weighted-average EUI calculation required based on floor area

Fossil Fuel Phase-Out Requirements:

• Climate zones 4–5: Complete fossil fuel phase-out required; backup fossil fuel use not permitted
• Climate zones 6+: Fossil fuel heating permitted only when outdoor temperatures are below -15°C

Project Requirements:

• Projects must be supported by a Green Buildings Pathway feasibility study (or equivalent) demonstrating a pathway to best practice energy targets
• Projects without a pathway study must achieve at least 50% GHG reduction and 25% energy savings, supported by an ASHRAE Level 2 study signed by a qualified professional.

Climate Resilience Requirements:

• Projects with new infrastructure assets over $2 million must complete a climate risk assessment
• Projects with new infrastructure under $2 million require a signed letter of attestation for flood exposure (or engineer's guarantee if located within the 100-year floodplain)

Equity Considerations:

Projects are assessed on their potential to advance anti-racism, equity, inclusion and Reconciliation. Higher evaluation scores are given to projects that apply inclusive community engagement practices, implement social procurement, and generate socio-economic benefits such as improved accessibility and inclusive employment opportunities.