Low Carbon Economy Fund: Investing in the Future of Cleantech

The Canadian federal government is committed to achieving net-zero emissions by 2050 and has launched several cleantech funding programs to support this goal. These programs aim to help Canadian Small and Medium Enterprises (SMEs) and provincial/territorial governments adopt clean energy solutions. One such program is the Low Carbon Economy Fund, which leverages Canada's innovation potential to reduce greenhouse gas (GHG) emissions and foster clean growth.

Canada's GHG emissions have decreased by 8.4% between 2005 and 2021, according to estimates (source). The deadline for applying for funding through the Low Carbon Economy Fund is February 8th, 2024. It is recommended to start the application process early as this program receives many applications. For those interested in applying, the Mentor Works team can assist in the application of government grants, loans, or tax credit applications for programs like the Low Carbon Economy Fund.

Key Takeaways

• The Low Carbon Economy Fund is a cleantech funding program that supports Canadian SMEs and provincial/territorial governments in adopting clean energy solutions.
• Canada's GHG emissions have decreased by 8.4% between 2005 and 2021.
• The deadline for applying to the Low Carbon Economy Fund is February 8th, 2024, and it is recommended to start the application process early.

Funding Snapshot: Low Carbon Economy Fund

The Low Carbon Economy Fund provides federal funding to support programs, investments, and opportunities that aim to reduce Canada's greenhouse gas (GHG) emissions, generate clean growth, and create good jobs for Canadians. Eligible expenses may include implementation funding, implementation readiness fund, low carbon economy leadership fund, and smart renewables and electrification pathways program. The amount of funding provided will depend on the type of organization and the eligible project. Indigenous organizations may also be eligible for funding through the Indigenous Leadership Fund, Indigenous Climate and Environmental Funding, and the Northern Reache Program. Additionally, the Greener Homes Initiative and the Low Carbon Economy Challenge provide funding for residential and commercial projects, respectively.

Amount of Funding:

The Low Carbon Economy Fund provides funding for eligible project expenditures ranging from $1M to $25M. The funding is available in the form of a grant, loan, or tax credit. The amount of funding awarded is subject to a cost-share ranging from 25% to 75% depending on the type of organization. For-profit private sector businesses receive a 25% cost-share, while not-for-profit organizations, public sector bodies or boards, provinces and provincial entities, research, academic, and educational institutes, and provincial governments/bodies/boards receive a 50% cost-share. Territorial governments/bodies/boards and Indigenous recipients receive a 75% cost-share.

Eligible Projects:

Project Impacts:

Projects that are eligible for funding from the Low Carbon Economy Fund must result in reductions in greenhouse gas (GHG) emissions in 2030, and align with Canada’s goals for net-zero emissions by 2050. These reductions must be to sources of emissions controlled by the applicant or project partner (direct) and/or grid electricity emissions (acquired). In addition, eligible projects must go beyond what is required by existing regulations, standards, or codes and ongoing work by project proponents. Benefits must be directly and immediately realized, and technologies adopted must have a Technology Readiness Level (TRL) of 8 or above to receive implementation funding. Production of electricity or fuel must be primarily for own use.

Funding applications will be assessed based on the following impacts:

• Annual tonnes of GHG emissions reduced by 2030 per federal dollar invested
• Cumulative GHG emissions reduced over the lifetime (to 2050) of the impact per federal dollar invested
• Project feasibility and risk
• Other co-benefits, such as contributions to Canada’s environmental, economic, and social goals.

Eligible projects should focus on reducing GHG emissions across various sectors, including the industrial, waste, agriculture, transportation, and public sectors. Projects should prioritize the use of low-carbon technologies, energy efficiency, and clean energy production. Indigenous recipients, including First Nations, Inuit, and Métis, are encouraged to apply, as well as Canadian companies, provincial and territorial governments/bodies/boards, educational institutions, and research, academic, and educational institutes. Projects that include carbon capture, utilization, and sequestration technologies, as well as retrofits and grid modernization, will also be considered. The feasibility and cost-effectiveness of the project will be evaluated, as well as its potential to build resilient communities and create good jobs.

Eligible Costs:

Organizations that meet the eligibility criteria can receive funding covering a percentage of eligible project expenditures, including equipment and capital investment costs, staff salaries, project management and professional service costs, materials and supplies, vehicle rental and operation, and contractor fees. Both for-profit and not-for-profit organizations can apply for funding.

Apply for the Low Carbon Economy Fund:

To apply for the Low Carbon Economy Fund, interested parties must submit their proposals by February 8th, 2024. The program is highly competitive, and it is recommended that applicants start their applications as soon as possible.

Businesses can seek assistance from the government grant writers at Mentor Works, a Ryan Company, to assess their eligibility for funding and to help them write and submit their Low Carbon Economy Fund application.

To learn more about applying for Canadian government funding programs, businesses can download the free Business Funding Guide, which provides an overview of funding programs and how to keep track of them before they are announced.

It is important to note that successful applicants must comply with the program's eligibility criteria and branding guidelines. For more information on these requirements, interested parties can visit the Low Carbon Economy Fund website.

Overall, businesses seeking funding recognition for their low-carbon projects can benefit from the Low Carbon Economy Fund, but it is important to ensure that their proposals align with the program's goals and requirements.

Frequently Asked Questions

How does the Low Carbon Economy Fund support environmental initiatives in Canada?

The Low Carbon Economy Fund (LCEF) supports environmental initiatives in Canada by providing funding for projects that reduce greenhouse gas (GHG) emissions, generate clean growth, build resilient communities, and create jobs for Canadians. The LCEF is a $3 billion fund that invests in projects across Canada that help to reduce GHG emissions and create a low-carbon economy.

What criteria must projects meet to receive funding from the Merit-based Low Carbon Economy Fund?

Projects that receive funding from the merit-based Low Carbon Economy Fund (LCEF) must meet certain criteria. These include reducing greenhouse gas (GHG) emissions, generating clean growth, building resilient communities, and creating jobs for Canadians. Projects must also be innovative, scalable, and have the potential to be replicated in other communities. The LCEF is designed to support a wide range of projects, including those related to energy efficiency, renewable energy, and clean technology.

In what ways does the Low Carbon Innovation Fund drive technological advancements in cleantech?

The Low Carbon Innovation Fund (LCIF) drives technological advancements in cleantech by providing funding for innovative projects that reduce greenhouse gas (GHG) emissions and support the transition to a low-carbon economy. The LCIF supports research and development of new technologies, as well as the commercialization of existing technologies. The LCIF is designed to support a wide range of projects, including those related to energy efficiency, renewable energy, and clean technology.

What role does Indigenous leadership play in the Low Carbon Economy Fund?

Indigenous leadership plays an important role in the Low Carbon Economy Fund (LCEF) by ensuring that Indigenous communities are included in the transition to a low-carbon economy. The LCEF provides funding for projects that are led by Indigenous communities and organizations, and that support Indigenous knowledge and practices. The LCEF also encourages partnerships between Indigenous and non-Indigenous organizations to promote collaboration and knowledge-sharing.

How do cleantech companies benefit from the Strategic Innovation Fund?

Cleantech companies can benefit from the Strategic Innovation Fund (SIF) by receiving funding for research and development of new technologies that reduce greenhouse gas (GHG) emissions. The SIF provides funding for projects that are innovative, scalable, and have the potential to be replicated in other communities. The SIF also supports partnerships between industry, academia, and government to promote collaboration and knowledge-sharing.

What are the objectives of the Green Municipal Fund in promoting low carbon solutions?

The Green Municipal Fund (GMF) promotes low carbon solutions by providing funding for municipal projects that reduce greenhouse gas (GHG) emissions and support the transition to a low-carbon economy. The GMF supports a wide range of projects, including those related to energy efficiency, renewable energy, and clean technology. The GMF also encourages partnerships between municipalities and other organizations to promote collaboration and knowledge-sharing.