Sustainable Communities Challenge Fund
Grants for community projects in Nova Scotia that cut greenhouse gas emissions or prepare for climate impacts, including building upgrades and water resilience.
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The fund supports local climate action from feasibility studies and planning through implementation, monitoring and sharing results. Examples include deep energy retrofits of community buildings, wetland restoration for flood protection and community water supplies. Round 4 prioritised drought and water shortages; its application deadlines have passed.
Grants are non-repayable and range from CAD 75,000 to CAD 1 million per project. The maximum share depends on total eligible project costs: 80% for costs up to CAD 249,999, 70% for CAD 250,000–499,999, and 60% for CAD 500,000 or more. You must cover the remaining share. Partners and other funding sources can contribute; donated labour, materials and equipment can count for up to 10% of eligible project costs. Disclose these contributions in the application budget.
Other government funding can count towards your contribution, but all Nova Scotia provincial funding together must not exceed 80% of total project costs. Disclose requested or approved federal and provincial funding, commercial loans and your own contribution.
Unless the funding agreement sets a different schedule, 75% of the approved grant is paid within 30 days of signing, and the remaining 25% within 60 days after the final Project Impact Report is received and accepted. Late, missing or unsatisfactory reporting, incomplete work, or spending less than the grant can lead to payments being withheld. Projects that are not completed or miss milestones must return funding.
Eligibility
Eligible lead applicants are Nova Scotia municipalities, First Nations bands or tribal councils, post-secondary institutions, and qualifying non-profits. Non-profits must be registered Nova Scotia-based societies or cooperatives in good standing, registered Canadian charities actively operating in Nova Scotia, or federally incorporated non-profits operating in Nova Scotia.
Your project must be based in Nova Scotia, led by and/or benefit communities or groups there, comply with applicable regulations, by-laws and legal requirements at application, and be a community priority. Evidence of consultation and community support, a community plan or a municipal council support letter can demonstrate that priority. It must reduce or remove greenhouse gas emissions or help communities adapt to climate change.
You may submit at most two applications per intake, but receive only one grant per round. Previous recipients can reapply if in good standing with their earlier project.
For Round 4, all work must finish by 30 November 2027. Matching funds and required permits must be in place before signing a funding agreement. Capital upgrades and new infrastructure require completed relevant feasibility and design work. Consider nature-based solutions, such as wetland restoration, before hard infrastructure, such as stone barriers; justify a hard-infrastructure choice and show that it improves resilience without worsening climate risks. New or upgraded assets should use adaptive design: design informed by recent climate projections so they can withstand extreme weather and future climate uncertainties. Where climate risks cannot be avoided, describe plans to manage the asset and reduce those risks. For solar installations on community buildings, the building should be energy efficient and capable of supporting the system. Complete energy assessments to determine energy needs and check that the roof is structurally sound.
Eligible costs normally start after the funding agreement is executed and must end by its project-completion date. An exception covers up to CAD 5,000 of application-preparation consulting costs incurred within 60 days before submission; staff salaries cannot be reimbursed under that exception. Only unrecoverable GST/HST and provincial sales tax are eligible. Other direct and necessary costs outside the listed categories require written approval from fund staff before they are incurred.
The fund excludes existing operating and employment costs, routine maintenance, work required by federal or provincial law, purchases or leases of land or buildings, real-estate fees, financing charges, legal fees and loan interest. Unrelated costs, nonessential furnishings and movable assets, costs of rejected, withdrawn or cancelled projects, and recoverable sales taxes are also excluded. Normal services or work supplied by the recipient are excluded except where expressly eligible.
Applications from organizations of Mi’kmaq people, African Nova Scotians, racialized peoples, immigrants, Acadians, people on low incomes, people with disabilities, older adults, youth, 2SLGBTQ+ people and women are considered favourably. Projects led by or benefiting these groups can request support such as accessible application arrangements, project-scoping help, or tailored financial and reporting arrangements.
How to apply
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- Round 4 is closed. Pre-screening was required by 25 June 2026 at 2pm ADT; full applications were due 23 July 2026 at 2pm ADT.
- Round 4 prioritised drought and water-shortage adaptation. Projects must finish by 30 November 2027.
Round 4 is closed. Check the fund’s official application page for future intake announcements; rules can change between rounds.
For the documented intake, create a Submittable account through the fund website’s Applicant Log-In and submit a pre-screening form with the project idea, timeframe and approximate budget. Fund staff confirm basic eligibility and send eligible applicants the full application link within five business days. Submit the complete application form and project workbook with costs and milestones online; applications by mail or email are not accepted. The Nova Scotia Federation of Municipalities administers the fund.
Recipients must submit quarterly progress reports and a final impact report covering spending and project outcomes. Mitigation projects must supply information for calculating emissions reductions. Exemptions may apply to feasibility studies and plans, public outreach and education, purchases of sustainable low-impact goods and services, active transport, carbon-removal projects such as tree planting, and other projects without readily available calculation methods.