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Table 10: Conditional Grants (Foundations)

Sustainable Development Technology Canada (SDTC)
Start Date: March 26, 2001 End Date: June 30, 2015 Total Funding: $550 million
Description: The Foundation for Sustainable Development Technology Canada (SDTC) is an arm's length foundation established by an Act of Parliament which received Royal Assent in June 2001. The Foundation is registered as a not-for-profit, non-share-capital-corporation consisting of its Members of Directors under the Canada Business Corporations Act.

The Foundation is accountable to Parliament through the Minister of Natural Resources Canada. The terms and conditions for SDTC's operations are stated in the founding legislation and are further specified in the Funding Agreement #3 (signed by both the Minister of Environment and the Minister of Natural Resources Canada). Treasury Board Secretariat and Privy Council Office are the key central agencies involved in setting the conditions stated in the Funding Agreement. Other federal departments, such Industry Canada, are engaged on issues relevant for them.

The objective of the Foundation is to fund the accelerated development and demonstration of collaborative projects which address the issues of climate change, air quality, clean water and clean soil.
Strategic Outcome:SDTC is part of Outcome Project Plan (OPP) 3a3d – Technology Solutions Advanced. This OPP includes initiatives and activities that support the delivery of Competitiveness and Environmental Sustainability Framework (CESF), sector sustainability tables and Canadian Environmental Protection Act (CEPA), Parts 3, 5 and 7, through the development, evaluation, demonstration, and deployment of environmental technologies that enhance environmental performance, industrial competitiveness nationally and internationally, and address environmental stewardship objectives.
Summary of Annual Plans of Recipient: The main purpose of the SDTC Fund is to develop and demonstrate new Sustainable Development technologies related to climate change, clean air, clean water, and clean soil in order to make progress towards Sustainable Development.

In 2006, SDTC announced 35 projects for funding, with SDTC providing $76 million (30%), private sector participants providing $157 million (62%) and other government programs providing $22 million (8%), for a total project value of $255 million. Since its inception, SDTC has provided $238 million (28%) in technology development and demonstration funding for 107 projects, while the private sector contributed $499 million (59%) and $109 million (13%) came from other government sources, for a total project value of $846 million. These 107 projects are reported by SDTC to have the potential for 12.6 mega-tonnes of CO2 emission reductions annually by 2012.

SDTC has a book value of $523 million, as of December 31, 2006. Accordingly, SDTC's earnings on the investment of the $550 million received from the government have offset the operating costs and the project disbursements to date.

SDTC-funded projects are active in all major Canadian economic sectors, including: energy exploration and production, power generation, energy utilization, transportation, agriculture, forestry and wood products and waste management. Seventy-six percent of the 107 projects funded to date (81 projects) were classified as having a climate change impact, 17% (18 projects) were classified as having a clean air impact, and 7% (8 projects) were classified as Clean water and soil impact.

SDTC holds two rounds of funding each year, in August and January, initially requesting the applicants to send Statements of Interest (SOI) for their projects. Following the submission of the proposals and their evaluation, contract announcements occur within approximately nine months after acceptance of the SOIs. SDTC has established an e-Grant System to allow for on-line electronic processing of the funding application process.
SDTC manages the $550 million portfolio to meet the liquidity requirements of the organization in accordance with the Funding Agreement investment guidelines.
Planned Evaluations: In accordance with section 10.10 of the Funding Agreement Three Pertaining to the Sustainable Development Technology Fund, SDTC completed the 2006 Interim Evaluation, which is the first of two required interim evaluations to be carried out by an independent third party.

As required by the Funding Agreement Three, SDTC had submitted the report to both Environment Canada and Natural Resources Canada prior to the due date of June 30, 2006 and had made it public by posting it on the SDTC website.

The interim evaluation has assessed whether SDTC is meeting its purpose and objectives and, to the extent possible, whether any adjustments can and should be made. The evaluation has focused on three main topics:
  • Rationale – is the rationale for SDTC still valid;
  • SDTC Operations – are SDTC services delivered appropriately; and
  • Short Term Results – do the results to date indicate that SDTC is making progress towards achieving its objectives.

The most important recommendations in the Interim Evaluation were that:

  • SDTC should continue to pay close attention to relationship with government programs and departments;
  • SDTC should continue to examine its contracting process, minimize time lags that are attributable to SDTC, and monitor potential delays; and
  • Based on results to date, the report concluded that SDTC investments are on track to return positive benefits for Canadians.
Planned Audit: No Audits were planned in 2006-2007.
URL to Recipient Site:
The Federation of Canadian Municipalities (FCM) Green Municipal Funds (GMF)*
Start Date: 2000 End Date: In perpetuity Total Funding: $550 million (Environment Canada Funding: $275 million)
Description: The Federation of Canadian Municipalities (FCM), a not-for-profit non-governmental organization, operates the $550 million Green Municipal Fund (GMF) through an arms-length-agreement with Environment Canada and Natural Resources Canada. Created in 2000 with two arms-length funding agreements totalling $125 million, the GMF were doubled in 2002 with an additional $125 million. The latest Funding Agreement (2005) added another $300 million to the funds collapsed the two funds into one fund, the Green Municipal Fund.

The GMF is equally funded by Natural Resources Canada and Environment Canada who co-manages the fund at arms' length, creating a strong partnership between the FCM and the Government of Canada. The FCM Board of Directors, formally designated as the decision making body for the funds, is advised by a 15 member council with five federal appointees. The Council plays a key role, supported by the FCM secretariat and the GMF Peer Review Committee.

This fund supports grants, loans and loan guarantees and is consistent with the purpose and intent of the original agreements. $150 million dollars of this fund is to be used exclusively to provide loans for the remediation and redevelopment of municipal contaminated sites (Brownfields). The new agreement contains some significant revisions which aim to substantially increase the environmental, social, and economic benefits of the GMF by increasing their size, flexibility, and clarity.

The amount of GMF financing available to municipalities is directly related to the environmental benefits and/or innovation of the projects undertaken, with grant or loan combinations of up to 80% of eligible costs available for projects with exceptional environmental benefits.
Strategic Outcomes: The GMF stimulates municipal investment in environmental technologies and infrastructure projects and practices to reduce manage and prevent pollution of Canada's air, water, soil or climate and provide tools to support risk management and Sector Sustainability Tables (SST) decision-makers.

Since 2000, the GMF has supported more than 590 projects and studies resulting in over $318 million in investments in municipal sustainability. FCM estimates that these initiatives will reduce emission of over 1,200 tonnes of nitrogen and sulphur oxides and 1.2 million tonnes of carbon dioxide equivalents.

GMF's goal is to improve air, water and soil quality, protect the climate, and have a positive impact on the health and the quality of life of Canadians by:

1. Encouraging local environmental action in key sectors including:
  • Energy and energy services;
  • Water;
  • Solid waste management;
  • Sustainable transportation services and technologies;
  • Sustainable community planning; and
  • Integrated community projects.
2.  Leveraging private sector contributions to make cities and towns across Canada more energy efficient, at the same time reducing our greenhouse gas emissions.
3. Improving the environmental efficiency and cost-effectiveness of municipal infrastructure.
Summary of Annual Plans of Recipient:
The FCM issued their 2007-2008 Annual Statement of Plans and Objectives in April 2007 and is available on its website. 1
Planned Evaluation:
GMF was one of the foundation case studies of a recently completed report evaluating the use of foundations as instruments of public policy. This evaluation study was conducted by KPMG LLP on behalf of the Government of Canada as a commitment to the Standing Senate Committee on National Finance and Standing Committee on Public Accounts. The results of the report are available on the Treasury Board site: Evaluation of Foundations: 
No other evaluations were planned or conducted by either Environment Canada or Natural Resources Canada during the past year.
Vrifications prvues : 
The FCM issued the 2006-2007 Annual Financial Audit as part of the Green Municipal Funds 2006-2007 Annual Report and should shortly be available through the GMF website.2
Neither EC nor NRCan currently have plans for an audit at this time, but may do so at any time, based on the terms of the Funding Agreement with FCM.
URL to Recipient Site:
*Environment Canada and Natural Resources Canada contributed $275 million each.
Clayoquot Biosphere Trust (CBT)*
Start Date: 2000 End Date: Ongoing Total Funding: $12 Million (Environment Canada funding in-kind)
Description: The CBT grant created an endowment fund for the CBT-the cornerstone of the Clayoquot Sound United Nations Educational, Scientific and Cultural Organization (UNESCO) Biosphere Reserve. The CBT uses the income from the endowment fund to support local research, education and training in the Biosphere Reserve region.
Strategic Outcomes:
  • Strengthening CBT's role as the organization responsible for upholding the spirit and intent of the Biosphere Reserve;
  • Enhancing the CBT Trust Fund;
  • Enhancing the CBT Advisory Committees;
  • Leading and Facilitating an Indicator Monitoring Program;
  • Improving Outreach and Pursuing Targeted Initiatives and Partnerships; and
  • Strengthen CBT's role as a leader in the national and international UNESCO World Network of Biosphere Reserves Network.
Summary of Results Achieved by the Recipient:
In 2006-2007, the allocation of funds for community-based research, education, training, capacity building and cultural projects resulted in 25 projects:
  • Tofino Botanical Gardens - Youth and the Biosphere Program;
  • Ucluelet Secondary School - Outdoor Leadership Program; 'Portrait of Ahousaht' film project;
  • Raincoast Education Society - Young Naturalists Program;
  • Ucluelet Aquarium Society, Raincoast Education Society, Pacific Rim National Park - Intertidal Education Materials;
  • Wickaninish Community School – Community Action Life Skills and Leadership (CALL) Program 2006;
  • Ucluelet Chamber of Commerce - Outdoor Recreation and Sports Tourism;
  • Tofino Business Association - Baseline Economic Data and Indicators;
  • British Columbia Environmental Youth Alliance – l'tude de faisabilit Fish Mort and Offal to Biofuel ;
  • Hesquiaht First Nation – First Nation Cultural Digitizing Project;
  • Central Region Nuu-chah-nulth Language Group - Nuu-chah-nulth Language Centre;
  • Nism'a Project Society - Outdoor Education for Youth;
  • West Coast Bear Aware Committee - Bear Aware Developers Package; Bear Aware Signage for the Wild Pacific Trail;
  • University of Victoria - Canopy Study - Arboreal Biodiversity Across Spatial Scales; Department of Geography Ucluelet Harbour student projects;
  • Pacific Rim National Park Reserve - Steller Sea Lion Study;
  • Pacific Wildlife Foundation - Community participation in Whale Studies;
  • Pacific Rim Hospice Society - Grief Support in Itatsoo; Training for Volunteers and Service Providers;
  • Ucluelet Disaster Relief Society - Disaster Relief Training;
  • Tofino Hospital Foundation - Coastal Health Care Committee;
  • First Nation Environment Network - Atlantic Salmon Study;
  • Tofino Streamkeepers - Streamkeeper Education Material; and
  • Raincoast Education Society - Root Garden Project.
Comments on Variances: Fund is administered by the Foundation.
Significant Evaluation Findings and URL to Last Evaluation:
* Environment Canada does not report on the financial activities of this Trust.
Canadian Foundation for Climate and Atmospheric Sciences (CFCAS)*
Start Date: February 2000 End Date: 2010 Total Funding: $110 million
Description: The Canadian Foundation for Climate and Atmospheric Sciences (CFCAS) is the main funding body for university-based research on climate and on atmospheric and related oceanic work in Canada. CFCAS provides research grants through a competitive (peer-reviewed) process from a total budget of $110 million. Its mandate extends to March 2011.
Strategic Outcomes: To increase Canada's intellectual resources in climate and atmospheric sciences through the training and retention of researchers, helping to generate and disseminate relevant new knowledge, increasing the transfer of scientific findings to stakeholders, and raising Canada's scientific profile internationally. Benefits include improved information to support policy development, operational forecasting, adaptation to climate changes and more effective management of climate-related risks.
Summary of Results Achieved by the Recipient: During 2006-2007, CFCAS committed over $15 million to five major new research networks and six additional projects, bringing the total investment to date to over $109 million in university-based research related to climate, extreme weather, air quality, and marine environmental prediction. Over half of CFCAS's commitments have been in the climate sector. Several of the networks are linked to international research programs, and all of these programs involve multiple partners. Complementary (leveraged) support for networks has doubled the resources available to them. As of 31 March 2007, four of the 24 CFCAS- funded major collaborative networks and 75 of the 131 projects had completed their activities.

The Foundation has also hosted or co-hosted a number of workshops and symposia, including a February 2007 briefing on the Working Group One report of the Intergovernmental Panel on Climate Change (IPCC) dealing with the Physical Science Basis of Climate Change; CFCAS has also provided partial support to two international project offices in Canada.

International Polar Year has provided an excellent opportunity to focus world attention on, and to learn more about, the vast and vital polar regions. Over the last few years, CFCAS has focused approximately $28 million, or over a quarter of its total research investment, on supporting projects and major research networks related to the north and/or the cryosphere.

CFCAS has signed a partnership agreement with the National Research Council of Canada to serve as the Canadian National Committee for the World Climate Research Program (WCRP); this arrangement will serve to stimulate Canadian involvement in WCRP initiatives, ensure Canadian interests are represented and report on Canadian involvement.

Results of CFCAS funded research are relevant to policy and operations in areas such as climate change, weather and environmental prediction, public security, human health, and natural resource management. A few of the many accomplishments in 2006-2007 were as follows:

Air Quality

  • A research project on the production of toxic compounds in the atmosphere has provided new insights into the compounds, nature and effects of particulate air pollution. It has stimulated collaboration between atmospheric chemists at Simon Fraser University and medical researchers at St. Paul's Hospital at the University of British Columbia. The collaboration is generating new information on how atmospheric chemistry affects respiratory and cardiovascular disease processes. The work is shedding light on what particle types cause the most injury to human lung cells. This information will be extremely helpful in development and application of controls to restrict the emission of the particles that cause the most damage to human health.
  • The size of particles (aerosols) in the air affects the optical properties and scattering of solar radiation. AERONET (Aerosol Robotic Network), managed by NASA, is a global network of sun photometers measuring this radiation. A CFCAS-funded project on aerosols produced an algorithm (numerical approach) that has now been integrated into the standard AERONET procedure. Through AERONET, the Canadian work is also contributing an important element to General Circulation Models, which are key tools in predicting future climate.

Marine Environmental Prediction

  • Researchers with the Lunenburg Bay Coastal Observatory have set up an instrument network and analysis center — much like a weather forecasting system on land — that has allowed them to perform advanced science right in Lunenburg. The Marine Environmental Prediction System (MEPS-Bay) Observatory, which uses advanced instrumentation to measure environmental conditions in the ocean and atmosphere, is giving a near-real time picture of conditions in the Bay, on line. The data is incorporated into models that are providing the most accurate, reliable ocean forecasts possible today.

Weather, Climate and Climate Modelling

  • A Quebec researcher has succeeded in obtaining a nine-metre sediment core from the bottom of a pristine lake in an ancient meteorite crater in Nunavik in Northern Quebec. The core will provide information regarding climate change dating to the last interglacial period 120,000 years ago. It will provide new information to complement clues about the Earth's past climate, from ice cores or the ocean floor. The meteorite crater is 1.3 million years-old and constitutes a unique natural archive of climatic and environmental history.
  • Manitoba Hydro is working closely with researchers in the Drought Research Initiative. The collaboration will help extend work under the network to provide Manitoba Hydro with better baseline data. This data will help the company plan new hydro facilities and understand drought factors in the drainage area most important for its power generation.
  • The Canadian Meteorological Centre of Environment Canada is now issuing weather forecasts based on a protocol developed in, and models tested by, the Canadian Climate Variability (CLIVAR) Network. The work of CLIVAR has helped Environment Canada's Canadian Centre for Climate Modeling and Analysis (CCCma) to provide a 'next generation' model for seasonal forecasting. The research not only benefits Canada, but represents a Canadian contribution to a major international initiative on climate variability.
  • A CFCAS-funded study is using satellites to study climate variability in sub-Arctic and boreal regions. It has resulted in development of a new method for estimating the length of the growing season in northern areas. The study has also improved mapping of large ecosystems and monitoring of different types of vegetation over time and space. A new method of retrieving information on summer ground surface temperatures has been produced, as well as new databases on snow cover and water surfaces. These are valuable tools for validation of climate models and for analyses of climate change.
  • Work on ENSO (El Nio Southern Oscillation) conditions is now providing more accurate ENSO predictions. These are particularly important to British Columbia. The value of the salmon fishery in the Fraser River is $600 million annually: changing fish routes at times of above-normal sea surface temperatures has serious economic impacts on the fishery. In British Columbia forests, warmer El Nio conditions have favoured mountain pine beetle epidemics and increased fire risk. The more accurate ENSO predictions that are being developed will help in the management of Canada's natural resources, provide guidelines for decisions on the management of water resources, agriculture, forestry, fisheries, power utilities and other climate sensitive-sectors of the economy, and allow improved planning of emergency responses to severe weather events.
  • The CFCAS-funded network on Quantitative Precipitation Forecasting has resulted in significant collaboration between university scientists and Environment Canada. Faster numerical algorithms developed in the network have led to optimizations that are now used in the operations of the Canadian Meteorological Centre. Better resolution in the regional operational weather model has resulted in more accurate forecasts, to the benefit of Canadians.

Greenhouse Gases

  • Startling results have emerged from a CFCAS-funded study on the impact of a major input of carbon on the atmosphere. Analysis using two climate models has revealed that approximately 75% of atmospheric carbon dioxide emissions will stay in the atmosphere for an average of 1,800 years; a good part of the emissions will last over 5,000 years. The results of the simulations - that higher levels of carbon dioxide than previously estimated will remain in the atmosphere - have important implications for climate policy.
Comments on Variances: Not Applicable
Significant Evaluation Findings and URL to Last Evaluation: CFCAS conducted its second interim evaluation in 2006-2007. The evaluation, which assessed the CFCAS management accountability framework and procedures, and the CFCAS program outputs, was completed in February 2007. The evaluation concludes that the current management structure of CFCAS is effective, and that CFCAS research has been conducted in a cost effective manner. Key recommendations include the following: dedicate additional resources to ensure communications are effective; disseminate research results in a format suitable to policy makers, as well as educate policy makers as to the policy implications of the research; systematically collect information on results and impacts for use in the subsequent evaluation (in 2010). A URL is not available.
URL to Foundation's Website: 
URL to Foundation's Annual Report: 

*The financial contributions to this Foundation will not be reported for 2004-2007 as the most recent payment of $50 million from the Government of Canada to the CFCAS was made in 2003-2004.


  1. Annual Statement of Plans and Objectives: Green Municipal Fund:
  2. Green Municipal Annual Reports: