NEW Federal Program Launching Oct. 3, 2023 - The Low Carbon Economy Challenge

The Low Carbon Economy Challenge (or Challenge Fund) leverages Canadian ingenuity to reduce greenhouse gas (GHG) emissions and generate clean growth.

The Challenge Fund supports a wide range of Canadian recipients to implement projects that deploy proven, low-carbon technologies resulting in material GHG emissions reductions across sectors, focusing on its cost-effectiveness objective to maximize GHG emissions reductions.

The program will begin accepting applications starting October 3, 2023 and will close January 12, 2024.

Federal Cost Share

Applicants may request a minimum of $1 million, up to a maximum of $25 million in funding. Federal cost shares will range from 25%-75%, see below for the breakdown:

  • 25% for for-profit businesses and farms
  • 50% for not-for-profit organizations
  • 50% for public sector body or board
  • 50% for provinces and provincial entities
  • 50% for research, academic and educational institutions
  • 50% for regional/local/municipal governments or their entities located in a province
  • 75% for regional/local/municipal governments or their entities located in a territory
  • 75% for territories and/or territorial entities
  • 75% for Indigenous recipients (including Indigenous for-profit organizations)

Example: A for-profit business is eligible for 25% federal cost share. The federal contribution can be no less than $1 million, therefore the total project expenditures must be at least $4 million overall in order to be eligible for funding.

Find more details on this new program, including a self-screening tool to determine eligibility, HERE.