The Climate Action Innovation Fund Assists SME's Invest in Green Initiatives

The Climate Action Incentive Fund (CAIF) is a new Environment and Climate Change Canada program, delivering up to $218M in its first year (2019-2020). The program is funded from the proceeds of the federal carbon pollution pricing system. Programming for small to medium-sized enterprises is available in provinces that have not committed to their own carbon pollution pricing systems, which includes: Saskatchewan, Manitoba, Ontario, and New Brunswick. Eligible recipients will benefit from funding for projects that decrease energy usage, save money, and reduce carbon pollution and greenhouse gas (GHG) emissions.


If your project has been approved and continues to meet all the requirements for funding, ECCC is committed to fund up to a maximum amount of 25% of the total eligible project costs to a maximum of $250,000 per applicant per eligible province. The applicant’s portion can also be comprised of other sources of funding, including those from:

  • Other federal government departments
  • Provincial/territorial governments
  • Municipal governments
  • Industry and/or partners such as:
    • Industry associations and networks
    • Businesses
    • Academia


Examples of Eligible Activities Include:

  • Agricultural retrofits
  • Building retrofits
  • Electricity, energy or fuel production
  • Industrial process improvements
  • Transportation retrofits
  • Waste management


Eligibility Requirements

SME's in Ontario, Saskatchewan, Manitoba and New Brunswick must meet the following criteria:

  • Request more than $20,000 and up to a maximum of $250,000 of the eligible costs per project.
  • Have no more than 500 employees.
  • Propose a project that:
    • Is implemented no earlier than the date of the approval-in-principle notification sent by Environment and Climate Change Canada (ECCC) and no later than March 31, 2021.
    • Has a confirmed project site in one of the eligible provinces.
    • Helps your enterprise reduce energy use, costs, and/or GHG emissions associated with its operations.
    • Does not result in your enterprise emitting more GHG emissions from its operations and leads to long-term cost-savings.
    • Aligns with eligible project categories, activities and expenditures.



The SME project stream will remain open for 90 days

after July 17, 2019 or until the funding for this round has been exhausted.


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