Helping Municipalities Take Action

Federation of Canadian Municipalities (FCM)

The Federation of Canadian Municipalities (FCM) has been the national voice of municipal governments since 1937. FCM comprises more than 850 municipal governments which represent 75 percent of Canada's population. In addition, all provincial and territorial associations of municipalities are members. FCM also counts more than 100 corporate partners drawn from the private sector - companies that deliver goods and services to the municipal sector.

FCM and the Environment

Municipalities have the primary responsibility for providing a number of basic services to Canadians, including water treatment and distribution, waste water treatment, transportation, including public transit, waste collection and disposal. They also operate many business, cultural and recreational facilities. The infrastructure that supports these services and facilities represents a substantial investment and is in constant need of upkeep, upgrading and replacement. Large amounts of energy are consumed to operate municipal facilities and public transit, generating considerable greenhouse gas (GHG) and air pollutant emissions. In addition, significant emissions and discharges of GHGs, toxics and air pollutants result from processes to clean water and manager waste. Both municipal energy use and management of water/wastewater/waste systems affect the quality of the air, water and soil. Both Natural Resources Canada and Environment Canada have a long history of working in cooperation with the FCM to achieve environmental objectives.

Municipalities are key partners in efforts to reduce GHG emissions and to improve air, water and soil quality. More than 60 communities representing approximately 40 per cent of the Canadian population have joined the Partners for Climate Protection Program, a joint initiative of the Federation of Canadian Municipalities and the International Council for Local Environmental Initiatives, and have made a commitment to reduce GHG emissions in their operations and their communities.

The Funds

The Government of Canada is providing a $125-million endowment to the Federation of Canadian Municipalities to create two complementary funds to help municipalities improve the eco-efficiency of their operations. The funds will leverage investments from municipal, provincial and territorial governments, and will increase public/private partnerships. Both funds will start operations in 2000-01.

The Green Municipal Enabling Fund ($25M) is a five-year fund that will provide cost-shared grants (up to half of eligible costs) for energy audits and feasibility studies on proposed projects designed to improve air, water and soil quality through greater energy efficiency, the sustainable use of renewable and non-renewable resources and more efficient water and waste management.

The Green Municipal Investment Fund ($100M) is a revolving fund that will provide interest-bearing loans as well as loan guarantees (for up to 15 per cent of eligible costs and, in exceptional cases, up to 25 per cent) to enable recipients to carry out energy and environmental projects in municipal operations. (Projects with expected paybacks of less than four years will be excluded since they should be able to attract financing elsewhere.) It would also provide grants and long-term loans for pilot projects that demonstrate innovative technologies and/or processes that have an expected investment payback of more than ten years.

In addition to reducing GHG emissions and improving air, water and soil quality, these projects could help reduce the operating costs of municipal facilities and defer capital investment by extending the life of, and by modernizing, existing facilities.

Initiatives under these funds are expected to focus on the following:

• energy-efficiency retrofits of buildings,
• district energy systems,
• deployment of renewable energy technologies,
• public transportation services,
• waste management services,
• water service delivery, and
• waste water treatment services.

Review Committees and Management Councils

The Federation of Canadian Municipalities will set up peer review committees to review project proposals, and councils to manage the funds. Representatives from municipalities, provincial governments, the private sector, environmental groups and the Government of Canada will have the opportunity to participate in the work of the councils and peer review committees.

Impact

The Green Municipal Enabling Fund and the Green Municipal Investment Fund represent an important step in addressing environmental concerns. By contributing funding to feasibility studies and municipal environmental projects, and increasing access to innovative and cost-effective energy services, such as district energy systems, renewable energy and energy efficiency in buildings, these Funds will improve air, water and soil quality, protect the climate, and have a positive impact on the health and the quality of life of Canadians.