Canada’s Green Municipal Fund to Advance Sustainable Affordable Housing Across Canada with $85.5M Investment

September 15, 2025

Gregor Robertson, Minister of Housing and Infrastructure, Julie Dabrusin, Minister of Environment and Climate Change, and the Federation of Canadian Municipalities (FCM) President Rebecca Bligh announced $85.5 million in funding under the Sustainable Affordable Housing (SAH) stream of the Green Municipal Fund (GMF). This investment includes approximately $67.9 million for 21 capital and pilot projects and $17.6 million for planning and feasibility studies that will help communities of all sizes develop and scale innovative housing solutions that are affordable, energy efficient and climate-resilient.

Canada is taking action to build a clean, affordable future — one house and building at a time. With buildings accounting for the country’s third-largest source of greenhouse gas emissions, energy-efficient housing is central to Canada’s fight against climate change.

One of the capital projects is a deep energy retrofit of 59 townhouse units that has been completed at the Sundance Housing Co-operative in Edmonton, Alberta. This pioneering project — based on the successful Dutch Energiesprong approach — will reduce total building energy use by up to 94 percent while allowing residents to remain in their homes during construction. It is the first panelized retrofit of its kind for a Canadian co-operative housing provider.

These projects highlight Canada’s progress in creating energy-efficient, climate-resilient and affordable buildings that benefit communities, the economy and the environment.

Quick Facts

• Buildings, including homes, are Canada’s third-largest source of greenhouse gas emissions. Greening our buildings is key to lowering emissions and achieving our country’s net-zero commitments by 2050.
• Across Canada, over 96 percent of direct building emissions come from space and water heating. Replacing fossil-fuel heating systems with low-carbon options, like electric ground-source heat pumps, will make a real difference in reducing greenhouse gas emissions and reducing monthly heating costs.

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