While Green Communities Canada (GCC) welcomes the confirmation of several commitments in the 2025 Federal Budget, we await crucial details on investments in nature-based solutions, active transportation, and electrifying school buses. The 2025 Budget fails to respond to our pre-budget submissions and advocacy from Efficiency Canada calling for the government to recapitalize the Canada Greener Homes Loan Program, re-instate the Canada Greener Homes Grant, and increase the scale of energy affordability programming.
“We stand with our coalition partners, including Nature Canada, in that we’re encouraged by the identification of nature in the budget as core to Canadian identity, but we’re concerned that we’re not seeing any commitments to funding,” said Brianna Salmon, Executive Director of Green Communities Canada.
“At a time of increasing economic and environmental concern, local communities need funding and market-based supports to ensure stability in the home retrofit industry. The industry supports good jobs and tariff-proof solutions to support communities. Their absence in the budget is concerning,” said Jared Kolb, Managing Director of Green Communities Canada.
Further details:
Canada’s Home Retrofit Industry
What we asked for in our 2025 Pre-Budget Statement:
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- Launch a new grant program for all homeowners with an emphasis on building envelope improvements using the EnerGuide system, including performance incentives for deep energy retrofits that achieve larger savings levels, and the development of a separate stream with a rebate for heat pump-only installations and require heat pump right-sizing practices;
- Expand the Canada Greener Homes Affordability Program budget and ramp up operations over time to reach 40,000 low to median-income Canadian households per year; and,
- Expand the Canada Greener Homes Loan Program as a supplement to the grant program, offering larger zero-interest loans to help motivate deeper energy retrofits.
What we’re seeing in the 2025 Budget:
There is no mention of the Canada Greener Homes Affordability Program, Grant Program or Loan Program. This is a notable gap in Budget 2025 and several missed opportunities to build Canada strong and invest in made-in-Canada solutions that improve our workforce and quality of life.
Active and Sustainable Routes to School
What we asked for in our 2025 Pre-Budget Submission:
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- Support for Canadian Electric School Bus Alliance recommendations, including: $375 million in federal funding by 2026, and an additional $2.5 billion in dedicated funding between 2027 and 2032. To support Canada’s net-zero transition, there’s a substantial need for capital to fund Electric School Bus adoption. Since these buses won’t reach price parity with internal combustion engine buses by 2040, the federal government must allocate additional funds now. To reach 100% adoption by 2040, in line with the federal target for medium and heavy-duty vehicle sales, almost 3,000 diesel models will have to be replaced next year;
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- Support for Canadian Active Transportation Alliance recommendations, including: Make permanent the dedicated Active Transportation Fund that is housed within the Canada Public Transit Fund with annual earmarked funding, and track and publicly report on annual spending. In addition, the National Active Transportation Strategy is set to expire next year, and we recommend its renewal with earmarked funding. Clearly defined goals and targets are vital to increasing active transportation usage in Canada, as is a clear plan and timeline on how we will get there. We also recommend that the Build Canada Strong plan includes design elements that incorporate active transportation into Canadian communities across the country.
What we got:
The previous Canada Public Transit Fund will be streamlined alongside other programs into the Build Communities Strong Fund, putting several different capital investments under the same fund, divided up by Provincial and Territorial Stream, Direct Delivery Stream, and Community Stream. Further details will be shared in the coming months.
Nature-Based Solutions
What we asked for in our pre-budget submission and in subsequent coalition requests, including those led by Nature Canada:
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- We recommend the Federal government continue to fully fund the Nature Smart Climate Solutions Fund and expand opportunities to support urban climate resilience through nature-based solutions;
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- Funding the 2030 Nature Strategy to tackle biodiversity loss, climate change, and pollution.
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- Protecting 30% of Canada’s land, coasts, and waters by 2030, in partnership with Indigenous nations and local communities.
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- Investing in the restoration economy, including a proposed $250M Nature Protection and Restoration Fund (Liberal Platform 2025) to match private and philanthropic dollars.
What we got:
While Nature is identified as a core part of the budget strategy towards further economic resilience and national solidarity, no budget dollars are identified.
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