Small-and medium-sized businesses in Guelph can now apply for funding for energy-saving projects

July 19, 2019

Climate Action SMECanadians are fighting climate change because they know a healthy environment and a strong economy go hand in hand. Climate action presents a global economic opportunity representing $26 trillion and 65 million jobs. Energy efficiency reduces energy costs and helps people save money. Likewise, small business owners across the country want to do their part in the national effort to fight climate change.

The Minister of Environment and Climate Change, Catherine McKenna, announced that small-and medium-sized businesses in the four provinces where the federal government carbon-pollution pricing currently applies can now apply to the SME Project stream of the Climate Action Incentive Fund. Small and medium-sized businesses in these provinces will be eligible to receive funding of up to 25 percent of the cost of projects that will make their businesses more productive and competitive as they reduce energy use, save money, and cut greenhouse gas pollution.

Mckenna                                                                                                   MP Longfield and Minister of Environment Hon. Catherine Mckenna

A wide range of projects are eligible, including building retrofits, improved industrial processes, fuel switching, and the production of renewable energy for the use of applicants.

Over the next five years, small and medium-sized businesses in these provinces will have access to $1.45 billion to support actions such as increasing the energy efficiency of their operations.

This funding comes from a portion of the fuel-charge revenue from the four provinces where the federal price on carbon pollution is in effect.


“In communities across Canada, small and medium-sized businesses are proving that taking action on climate change is good for business. To build on their leadership and ensure more small-and medium-sized businesses have the means to take action, we are helping business owners invest in new equipment and retrofits to be more energy efficient, cut pollution, and save money.”

Catherine McKenna, Minister of Environment and Climate Change

“Small-and medium-sized businesses want to do their part to fight climate change, and helping them invest in energy-efficient equipment will not only cut their pollution but also increase their productivity. The environment and the economy go hand in hand—from the neighbourhood hardware store to the contractors performing the retrofits—and we’re proud to help small business owners be part of the climate change solution every step of the way.”

Mary Ng, Minister of Small Business and Export Promotion

Dealing with the Climate Emergency means taking concrete steps toward reducing Greenhouse Gas emissions.  Industry contributes 40% of current GHG’s, so it is important to provide tools for this sector to do their part in the battle.  Our children and grandchildren depend on us getting this right.

Lloyd Longfield, Member of Parliament for Guelph

Quick facts

  • Small-and medium-sized businesses in various sectors in Ontario, New Brunswick, Manitoba, and Saskatchewan can apply to the Fund starting today, July 17, 2019. The application period will be open until funding is exhausted or for a maximum of 90 days.

  • Proposals will be selected on a first-come, first-served basis, and regional considerations and prioritization for the most impacted small-and medium sized businesses will be taken into account.

  • Applicants can consult the applicant guide to prepare their proposal and submit it through the online application tool. Applicants will be notified of the decision after approximately 25 business days upon receipt of their application.

  • Businesses in Ontario, New Brunswick, Manitoba, and Saskatchewan could be eligible to receive funding of up to 25 percent of eligible costs for energy-efficient retrofits and other projects to improve energy efficiency, reduce their energy use, and save money—to a maximum of $250,000 per applicant per eligible province. The minimum amount of federal funding per application is $20,000.

  • Funds available for the Climate Action Incentive Fund SME Project stream in 2019–20 are $72.4 million in Ontario, $3.7 million in New Brunswick, $9.3 million in Manitoba, and $21.3 million in Saskatchewan. Updates on additional rounds of funding will be provided as they become available.

  • Under the Climate Action Incentive Fund, small-and medium-sized businesses are defined as businesses with fewer than 500 employees.

  • The Government of Canada implemented changes to accelerated capital costs that allow businesses to immediately write off the full cost of machinery and equipment used for the manufacturing and processing of goods or immediately write off the full cost of specified clean-energy equipment. Investments eligible for Climate Action Incentive Fund may also be eligible for the accelerated capital cost allowance.

  • The Government will soon launch a new call for proposals for smaller projects from small businesses across the country, under the Low Carbon Economy Fund Partnerships stream. Approximately $10 million will be available to help those businesses make investments to improve energy efficiency, reduce pollution, and save money.

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