The federal government and the Federation of Canadian Municipalities (FCM) unveiled an $85.5-million funding boost for energy-efficient and affordable housing as the country champions Green Buildings Week.
The investment, made through the Green Municipal Fund’s (GMF) Sustainable Affordable Housing (SAH) initiative, will be split between $67.9 million for capital projects and pilots and $17.6 million for planning and feasibility studies.
This news comes as buildings continue to be the third-largest source of greenhouse gas emissions in Canada, which presents a critical opportunity in the fight against climate change. Energy-efficient buildings also keep energy bills affordable, improve health and comfort in the face of extreme weather, and increase skilled job opportunities.
“Housing affordability and climate change are two of the biggest challenges facing Canadians in communities big and small across the country,” said Rebbeca Bligh, FCM President. “By supporting energy-efficient retrofits and net-zero construction, we’re addressing both crises by making homes more affordable, cutting down emissions and operational costs.”
The SAH initiative has supported a number of projects. The Sundance Housing Co-operative is the largest retrofit of its kind, using prefabricated wall panels. The original 59 townhouses—built in the late 1970s—have been upgraded with modern insulation, ventilation, and solar power. The retrofit eliminated natural gas use, reduced energy consumption by up to 94 per cent, and is expected to save the co-op as much as $100,000 annually.
“Innovative projects like the Sundance Housing Co-operative retrofit in Edmonton show how affordable and climate resilient housing can go hand in hand,” said Julie Dabrusin, minister of environment and climate change. “This is how we build a cleaner, stronger, and more sustainable Canada.”
Another notable project—Aspen Heights in Saskatoon—features a 56-unit townhouse development that was completed in 2024. The homes are constructed with energy-saving features including triple-pane windows, insulated concrete foundations for increased warmth, extra-thick walls, high-quality insulation, and heat pumps with natural gas backups.
“Canada has a proud track record—and we’re building on it,” FCM stated in a press release. “This is a pivotal moment—and we’re treating it with the urgency it demands. As the world shifts towards clean energy, Canada is moving with purpose to grow a competitive, sustainable economy.”
The SAH initiative was launched in 2020 as a six-year, $300-million program to support not-for-profits, co-ops, and municipalities to retrofit existing housing and construct new, energy-efficient homes. To date, 4,100 homes have been built or retrofitted across the country through the program.
