Government of Canada and FCM Invest $85.5 Million Through Green Municipal Fund to Advance Sustainable Affordable Housing Across Canada
September 19, 2025
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.
This World Green Building Week, the Honourable Gregor Robertson, Minister of Housing and Infrastructure, the Honourable 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.
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.
Quotes
“Making our homes and buildings more energy-efficient is one of the smartest ways we can cut emissions and lower energy bills. Through this $85.5-million investment, we are helping communities across Canada retrofit affordable housing and build new, climate-resilient units. Projects like the Sundance Housing Co-operative retrofit in Edmonton show how innovation in energy efficiency can make life more affordable for families while strengthening Canada’s clean energy future.”
The Honourable Tim Hodgson
Minister of Energy and Natural Resources
“Our government is committed to ensuring every Canadian has a safe, affordable place to call home. Today’s investment will help build and retrofit housing that meets the needs of families today while preparing for the challenges of tomorrow. By expanding access to affordable housing that is also efficient and resilient, we are making life more affordable and secure for Canadians.”
The Honourable Gregor Robertson
Minister of Housing and Infrastructure
“Greener homes mean healthier communities and lower costs for families. By investing $85.5 million through the Green Municipal Fund’s Sustainable Affordable Housing stream, we’re helping communities across the country cut emissions, improve resilience, and deliver real climate solutions. Innovative projects like the Sundance Housing Co-operative retrofit in Edmonton show how affordable and climate resilient housing can go hand in hand. This is how we build a cleaner, stronger, and more sustainable Canada.”
The Honourable Julie Dabrusin
Minister of Environment and Climate Change
“Edmonton is showing real leadership on housing. The retrofit at Sundance Housing Co-op is the largest of its kind in Canada, and it proves that we can cut emissions and keep housing affordable for families. As an Edmontonian, I’m proud to see our city at the forefront of housing innovation that lowers costs for families and strengthens communities.”
The Honourable Eleanor Olszewski
Minister of Emergency Management and Community Resilience and Prairies Economic Development Canada
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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