The Sustainable Communities Challenge Fund is a provincial grant program that supports community-led climate action across Nova Scotia. The Fund supports projects that reduce or remove greenhouse gas emissions, and/or helps communities prepare for and respond to climate change impacts. The Nova Scotia Federation of Municipalities administers the program on behalf of the NS Department of Environment and Climate Change.

The Fund supports adaptation and mitigation projects ranging from renewable energy installations and deep energy retrofits to coastal restoration, forest and wildfire vulnerability assessments, and flood mitigation initiatives.

Projects are funded through two distinct streams: Mitigation and Adaptation. The Mitigation Stream focuses on reducing greenhouse gas emissions and removing carbon from the atmosphere, while the Adaptation Stream helps communities build capacity to respond to climate change impacts. Some projects may incorporate elements of both streams.

The fund was established under the Environmental Goals and Climate Change Reduction Act and launched in November 2022 with $15 million in funding. The program received an additional $15.4 million in September 2023 and has been extended through 2028.

Funding Streams:

Mitigation Stream

Projects in the Mitigation Stream seek to slow the rate of climate change by avoiding and reducing greenhouse gas emissions or by removing carbon from the atmosphere. Focus areas include:

• Buildings (e.g., deep energy retrofits, energy-efficient construction)
• Transportation (e.g., low-carbon transportation initiatives, electric vehicle infrastructure)
• Energy generation and storage (e.g., renewable energy installations, battery storage)
• Waste management and circular economy (e.g., waste reduction, composting programs)
• Carbon storage and sequestration (e.g., tree planting, wetland restoration)

Adaptation Stream

Projects in the Adaptation Stream help communities improve their capacity to adapt to climate change, with the goal of reducing vulnerability and exposure of human and natural systems. Focus areas include:

• Climate-ready infrastructure (e.g., flood-resistant infrastructure, heat mitigation)
• Ecosystems and nature-based solutions (e.g., coastal restoration, green infrastructure)
• Community coordination and planning (e.g., climate adaptation plans, vulnerability assessments)

Project Requirements

To be eligible, projects must:

• Be based in Nova Scotia
• Meet at least one of the two core objectives (mitigation or adaptation)
• Be led by one of the eligible applicant groups: Nova Scotia municipalities, First Nations bands and tribal councils, post-secondary institutions, registered non-profit organizations active in Nova Scotia

Eligible Project Stages

The fund supports projects at various stages of the project development cycle:

• Ideation and assessment
• Feasibility studies
• Planning and design
• Implementation
• Monitoring and evaluation
• Knowledge mobilization and sharing