25 Years of Green Municipal Progress At Risk, Housing Minister Warns Cities

Canada’s quarter-century of progress on local climate and sustainability initiatives is under threat as the country approaches a high-stakes federal election, Housing and Infrastructure Minister Nathaniel Erskine-Smith warned Wednesday. Speaking at the Sustainable Communities Conference in Fredericton, hosted by the Federation of Canadian Municipalities (FCM), Erskine-Smith emphasized the fragility of the progress made over the past 25 years and the potential for it to be undone by a single election.

“Elections matter,” Erskine-Smith said during his appearance. “We saw one election south of the border, and we go from being a longstanding friend, the greatest relationship in the history of the world between two countries, and it’s now chaos and combative.” He added, “I don’t want to be too partisan, but we’re putting all of this work in to get the communities we deserve. One election. That’s all it takes, and it disappears.”

The Legacy of the Green Municipal Fund

Much of the progress Erskine-Smith referred to has been driven by the Green Municipal Fund (GMF), established in 2000 by the FCM with an endowment from the federal government. Over the past 25 years, the GMF has invested C$1.6 billion in 2,336 approved projects across Canada. These projects have collectively avoided 2.9 million tonnes of climate pollution, saved 990,000 gigajoules of energy, and treated 282 million cubic metres of water annually.

The fund’s most recent boost came in June 2024, when it received a $530-million investment from the federal Climate Adaptation Action Plan. This infusion of funds has allowed the GMF to continue supporting municipalities in their efforts to build sustainable, resilient communities. However, Erskine-Smith cautioned that the future of these initiatives is far from secure.

The Need for Density and Transit-Oriented Development.

Erskine-Smith highlighted the importance of integrating housing development with sustainable infrastructure to achieve broader goals like affordability, clean air, and safety. “We need the density, we need transit connected to housing,” he told The Energy Mix. He warned that without continued support for programs like the GMF, the progress made over the past 25 years could be jeopardized.

“All the programs they’ve put in place to collaborate with municipalities and drive sustainability…all of that is at risk,” he said. His comments underscore the critical role that federal funding and policy play in enabling municipalities to tackle complex challenges like climate change, housing affordability, and infrastructure development.

FCM’s Confidence in the Green Municipal Fund.

Despite Erskine-Smith’s warnings, the FCM remains optimistic about the future of the Green Municipal Fund. Julie Smithers, FCM’s Director of Marketing and Communications, emphasized that the fund’s endowment is secure and that many of its programs are already under contract.

“We can’t comment on speculation,” Smithers said, “but we’ve had strong relationships with all political parties for our 125-year history, and we continue to to this day.” She added, “The reality is that we have a strong, secure endowment that funds the majority of the programs we operate. A lot of that funding is already contracted, those agreements are in place. So we’re confident the fund will continue to operate for a very long time.”

Smithers pointed to the discussions at the Sustainable Communities Conference as evidence of the fund’s enduring value. “What we see here today, and what we know through the projects we’ve funded, is that municipalities use this funding to deliver critical support to their constituents—whether it’s for housing, or for community centres like arenas and pools that offer essential services,” she said. “The value to local communities and to constituents is immeasurable.”

The Broader Implications for Canadian Communities.

The Green Municipal Fund has been instrumental in helping municipalities across Canada implement innovative solutions to pressing environmental and social challenges. From energy-efficient retrofits of public buildings to the development of affordable housing projects, the GMF has enabled local governments to take meaningful action on sustainability.

However, Erskine-Smith’s warning serves as a reminder that these achievements are not guaranteed to continue. The outcome of the upcoming federal election could have significant implications for the future of the GMF and the programs it supports. A change in government could result in shifts in funding priorities, potentially undermining the progress made over the past two decades.

A Call to Action.

Erskine-Smith’s remarks at the Sustainable Communities Conference were a call to action for Canadians to recognize the importance of federal leadership in driving local climate and sustainability initiatives. He urged voters to consider the long-term impact of their choices at the ballot box, emphasizing that the stakes extend far beyond partisan politics.

“We’re putting all of this work in to get the communities we deserve,” he said. “One election. That’s all it takes, and it disappears.” His message underscores the need for continued investment in programs like the GMF to ensure that Canada’s municipalities can build sustainable, resilient communities for future generations.

Conclusion.

As Canada approaches a pivotal federal election, the future of the Green Municipal Fund and the progress it has enabled hang in the balance. For 25 years, the GMF has been a cornerstone of local climate and sustainability initiatives, helping municipalities across the country tackle pressing environmental and social challenges. However, as Housing Minister Nathaniel Erskine-Smith warned, this progress is not immune to the political winds of change.

The upcoming election will be a critical test of Canada’s commitment to sustainability and climate action. The choices made by voters will determine whether the country continues to build on the legacy of the Green Municipal Fund or risks losing a quarter-century of hard-won progress. For the sake of future generations, the stakes could not be higher.

This story was originally reported by The Energy Mix and highlights the ongoing debate over the future of Canada’s green municipal initiatives as the country prepares for a high-stakes federal election.