Net Zero Transformation (NZT)

Overview of the Net Zero Transformation (NZT) program:

The Pilot for Net-Zero Transformation is a funding stream under FCM’s Green Municipal Fund (GMF), aimed at helping municipalities test and evaluate high-potential climate solutions that support a transition to net-zero greenhouse gas (GHG) emissions. This program supports pilot projects that take proven technologies or strategies and apply them in a real-world, small-scale municipal setting, where results can inform broader implementation. Municipalities and their partners can use the funding to test emerging or innovative solutions in energy efficiency, building retrofits, renewable energy, sustainable mobility, waste reduction, and more. The focus is on solutions that are replicable, scalable, and capable of delivering measurable reductions in GHG emissions. Pilots should aim to reduce emissions in sectors such as transportation, buildings, land use, or energy systems and must incorporate monitoring and performance evaluation. Projects may involve municipal departments, utilities, Indigenous communities, or non-profit delivery agents working in collaboration with local governments. A unique feature of the program is that it encourages risk-tolerant experimentation and gives municipalities the opportunity to explore bold approaches that may not be feasible under conventional funding programs. It supports municipalities in building internal capacity, demonstrating leadership, and laying the groundwork for large-scale decarbonization.

Benefits of the Net Zero Transformation (NZT) program:

• Up to $1 million in funding for pilot testing of net-zero transformation solutions
• Encourages bold, innovative, and risk-tolerant projects
• Supports climate leadership and capacity-building in municipalities
• Reduces GHG emissions across sectors (buildings, transport, energy, land use)
• Fosters collaboration between municipal governments, Indigenous communities, utilities, and partners
• Builds a knowledge base for replicability and scale-up
• Promotes real-world data collection, monitoring, and evaluation
• Helps municipalities demonstrate feasibility before committing to larger-scale investments
• Aligns with Canadas 2050 net-zero targets

Eligibility criteria of the Net Zero Transformation (NZT) program:

• Eligible Applicants:
• Municipal governments
• Indigenous communities
• Municipally owned corporations (e.g., utilities, housing providers)
• Non-profit organizations (in partnership with municipalities)
• Research institutions (as collaborators)
• Project Requirements:
• Must be a pilot project (i.e., a small-scale, time-limited demonstration)
• Must have potential to contribute significantly to net-zero emissions
• Must include:
• A performance monitoring plan
• Stakeholder or community engagement
• An evaluation framework to assess scalability and replicability
• Projects must align with one or more of the following focus areas:
• Low-carbon or zero-emissions buildings
• Renewable or district energy systems
• Sustainable transportation and mobility
• Waste diversion and circular economy
• Green infrastructure and nature-based solutions
• Land use planning that supports emissions reduction