Reflections from the Financing Resilient Infrastructure Project: A new approach is needed to finance resilience at the local level
Building the infrastructure we need for a prosperous future
Every corner of Canada has been touched by climate change in some way — by storms, floods, heatwaves, and droughts — damaging infrastructure and, in tragic cases, claiming lives. While climate change is getting costlier to Canadians and our economy, it is also disrupting health and quality of life. The 2023 wildfire season alone broke records with nearly 18.5 million hectares of land burning resulting in mass evacuations.
“This is a new reality and one municipalities need to prepare for now more than ever while simultaneously shifting towards a net-zero future to lessen these impacts and their tragic consequences,” explains Megan Meaney, Executive Director at ICLEI Canada.
Investing in climate-resilience is a must, but it comes with challenges. For one, the impacts of the increasing frequency and severity of climate-related events are set against Canada’s pre-existing infrastructure gap. In fact, the Federation of Canadian Municipalities estimates that adapting infrastructure just at the municipal level to avoid the worst impacts of climate change will require investment of $5.3 billion per year in Canada (that’s right, per year!). However, despite the strong economic case for investing in climate adaptation, public funds are significantly limited. This challenge is particularly acute for municipalities which own and operate 60 percent of Canada’s public infrastructure, have limited capacity and revenue sources to address climate impacts, and are facing a large price tag for infrastructure adaptation.
“While efforts to mitigate climate change are underway and expanding — with governments and businesses setting net-zero targets and ramping up investment to reduce emissions — investment in climate adaptation is lagging woefully behind the projected costs, which are poised to worsen over time,” explains Don Iveson, Executive Advisor of Climate Investing and Community Resilience at Co-operators. “Importantly, even those mitigation investments are at risk if they are not themselves resilient to the changing conditions in the decades ahead. There can be no smooth transition to a net-zero future without enhancing resilience along the way.”
It is clear that resilience must be incorporated into municipal planning and growth, but this must be done in a way that is sustainable and financially viable. Put simply, we need new and innovative financing approaches to build resilience at the local level. Such approaches need to include mechanisms that can be used to acquire, structure, govern, and allocate financial resources towards resilient infrastructure. In addition, financial resources must come from a variety of sources including financial institutions, private investors, and institutional investors to support and complement traditional sources of public funding.
Exploring innovative financing
Over the course of 2023, ten Canadian municipalities worked in partnership with ICLEI Canada, Co-operators, and Co-operator’s asset management arm, Addenda Capital, on the Financing Resilient Infrastructure Project (FRIP) to identify a suite of possible resilient infrastructure projects that private investors could help finance. A core component of FRIP was to connect municipal practitioners with financial experts from both the private and public sectors.
“Outputs from the rich dialogues that occurred through this FRIP will support municipalities as they consider innovative approaches involving private finance, as a complement to public funding, in the spirit of accelerating and scaling the mission-critical work of building communities that are resilient to climate change,” explains Chad Park, Vice President of Sustainability & Citizenship at Co-operators.
The opportunity for project participants and financial experts to exchange insights on topics related to project feasibility and bankability (i.e., cash flows) and explore finance-related questions proved to be immensely valuable in identifying municipal resilient infrastructure projects that could be realized with the help of innovative financing. In addition, the following learnings emerged from this work.
Getting all hands on deck
Thinking about innovative financing requires all hands on deck. Bringing in colleagues from climate divisions, engineering, and finance early in the process is the most likely way to yield success. Each of these professions approach resilient infrastructure from a different perspective and bringing folks together early on when they can ideate and design projects together is a critical success factor.
Considering direct and indirect benefits
When thinking about resilient infrastructure, we must consider who benefits both directly and indirectly from that protection. When the benefits can be targeted, and many co-benefits can be integrated into project design, we create the most opportunities to identify cashflow sources that can either be recouped by municipalities and/or directed back to private investors.
Building a collective language
We need to get onto the same page in the way we talk about funding. In investment terms, this is referred to as the taxonomy. We need to build collective language around risk, risk transfer, financing, private capital, and all such terms. If we want to make progress on innovative financing, we need to be speaking the same language.
Integrating resilience thinking into all aspects of municipal service delivery
In order for resilient infrastructure to become common place, there is a need to integrate resilience thinking into all aspects of municipal service delivery, from road maintenance and building design to capital planning.
Approaching innovative financing with courage and openness
The common adage “hard things are hard” seems appropriate here. While the work accomplished through FRIP was difficult at times, we also learned that it is doable. By bringing the right people together early in a process while also opening our collective minds to doing things differently, innovative financing for resilient infrastructure becomes achievable. It takes courage and it takes an openness to collective learning, but it can be done.
Helping municipalities finance resilient infrastructure projects
Through FRIP, municipal practitioners examined a range of possible projects that could be implemented in their communities and worked to identify possible financial instruments that could be used to finance their implementation. These projects, along with the tools that were used to identify and prepare them for financing, have been compiled into the Getting Ready to Finance Toolkit — a toolkit designed to help municipal practitioners prepare their own resilient infrastructure projects for financing.
“Building resilient infrastructure at the pace and scale needed to address the climate challenge requires innovation, agility, and new ways of thinking”, explains Ewa Jackson, Managing Director at ICLEI Canada. “It is our hope that by sharing the work we accomplished and the tools we developed through FRIP, we will inspire others to explore innovative ways to finance and implement resilient infrastructure projects in communities across the country.”
The Getting Ready to Finance Toolkit will be available Tuesday, March 5, 2024. A free webinar event will take place from 2:00 to 3:30 pm ET to launch the Toolkit and further discuss how municipal practitioners and financial experts can work together to finance resilient infrastructure projects. Participants will also have the opportunity to ask questions in a Q&A session.
Building Tomorrow: Getting Resilient Infrastructure Projects Ready for Financing Webinar
Watch this webinar replay from March 5th, 2024 to hear from municipal and financial experts involved in the creation of the Getting Ready to Finance Toolkit. Learn about the resources included in the Toolkit, how to use these to prepare projects for financing, and listen in on a Q&A session.
Be sure to sign-up to ICLEI Canada’s email list to be the first to know about future events, new resources, and other opportunities.
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Q&A with the Team Behind Climate Insight
Discover how others are using the platform, how it has evolved since 2024, and what new features we are working on.
Climate Insight is a free, online platform that empowers communities across Canada with the data and information needed to build low-carbon, resilient housing and infrastructure. Its functionality, features, and content are continuously updated to better serve communities as they confront the growing challenges of climate change.
In light of Climate Insight’s most recent update, which launched on April 29, 2026, ICLEI Canada’s Managing, Engineering, and Project Directors share their thoughts on Climate Insight, its features and its future.
Sheri and Josh, you have both worked for municipal governments. If you had access to Climate Insight while you were in those roles, what features would you have used most?
Sheri Young, Project Director, Climate Insight (SY): Most often? The Solutions Finder. I would run every permit request through the Solutions Finder and attach the results to every application. I would actually also do that with the Rapid Risk Assessment (RRA) tool. Both of these tools can initiate discussions and provide background support for any project at any stage, whether it’s prioritizing projects, building a business case, or looking for ways to add resilience to existing infrastructure.
Joshua Kelly, Engineering Director, Climate Insight (JK): For me, it would be the map and the RRA tool. I used to work to integrate climate considerations into the community’s asset management systems. The climate and social vulnerability data available on Climate Insight’s map provide valuable tools to inform and support asset-related decisions. To take this one step further, our asset management systems were also increasingly considering risk, and I would have used the RRA as a low-barrier access point to complete climate risk assessments for community infrastructure internally, without the need to allocate resources to bring in external consultants.
“If I were still working at the Town of Okotoks, I would use Climate Insight to run every permit request through the Solutions Finder, and attach the results to every application.”
— Sheri Young, Project Director
Nearly two years into Climate Insight, how are communities using the platform?
Ewa Jackson, Managing Director, ICLEI Canada (EJ): We built Climate Insight to help fill capacity gaps so that all Canadian communities can realize their ambitions. The good news is that we’re seeing that this is already happening.
For example, the Town of New Glasgow, NS used the Climate Insight map to layer climate, infrastructure, and social vulnerability data to help choose sites for new Resilience Hubs. The map makes it possible to look at complex systems without having to tap a huge number of experts.
The RRA tool is another great example of this. It takes a few hours to complete, and produces a more detailed assessment than other free tools, without requiring months of work and resources. It can be filled in by anyone who is knowledgeable about their community—not just engineers or technical experts. The City of Winnipeg, MB had staff across departments use the RRA to help move through planning more efficiently, identify where to focus resources, and to spark discussions around climate early in project processes.
One more example: a municipal practitioner in Quebec told us they use Climate Insight both to validate their work and to demonstrate proof of concept. They use the Solutions Finder, for example, to get ranked options, and use that ranking to let their Council know which solutions are worth investing in.
“We built Climate Insight to help fill capacity gaps so that all Canadian communities can realize their ambitions, and we’re seeing that this is already happening.”
— Ewa Jackson, Managing Director
Protecting new and existing critical infrastructure from the impact of climate change is a priority for communities across Canada. What is a Climate Insight tool or feature that can be used to do this?
JK: If I had to pick one tool, I would say the Solutions Finder. The Solutions Finder can help move from identifying critical infrastructure and planning for climate impacts to actually finding solutions tailored to a specific project and set of requirements.
Beyond a single feature, I’d also recommend using Climate Insight as a starting point as you begin identifying climate risks to your critical infrastructure and planning for those risks. You can start with the map and Community Profiles to get a snapshot of local socio-economic, infrastructure and climate data, and of the likelihood of experiencing different climate hazards in your community. Then, complete a risk assessment for your infrastructure project using the RRA tool. You will end up with valuable information that can support decision-making and help you find solid infrastructure options through the Solutions Finder.
“Climate Insight can be used as a starting point if you are beginning the process of identifying climate risks to critical infrastructure, assessing those risks, and finding solutions.”
— Josh Kelly, Engineering Director
For users specifically interested in using Climate Insight to support housing projects, where is a good place to start?
JK: Short answer, anywhere. There is data and information throughout Climate Insight to support housing projects regardless of whether you are starting from a place of climate action, development, or supporting infrastructure.
EJ: That’s right—there are so many great housing resources on the platform. I’d say that homeowners, developers, and organizations supporting them can start with the Climate-Smart Home Explorer. Municipalities might want to begin with the library’s housing filter to find housing-supportive infrastructure options, case studies, tools, as well as codes, standards and guidelines. And the Solutions Finder is a good first stop for anyone. My biggest advice is to check back often because we are constantly adding and updating all of these housing resources.
Climate Insight is constantly evolving to meet its users’ needs. Since it launched in the fall of 2024, new features have been added every six months, and new content is updated monthly. Why do you think these updates are so important?
SY: Local governments are dealing with aging infrastructure and changing populations—not to mention limited budgets—which means doing more with less in an ever-changing landscape. Climate Insight’s regular updates and enhancements ensure you can always access the most up-to-date resources and tools to increase the resilience and reduce emissions of the infrastructure your communities depend on. Plus, local leaders and practitioners are speaking to us as they use the platform. This means that we can be responsive in our updates, reflecting your ideas and needs in the platform as it evolves.
“Local leaders and practitioners are speaking to us as they use the platform. This means that we can be responsive in our updates, reflecting their ideas and needs in the platform as it evolves.”
— Sheri Young, Project Director
What is an upcoming feature you are particularly excited about?
EJ: It’s really exciting to work on a platform that constantly evolves. It means we can publish tools as soon as they’re helpful to you, and then can keep updating and adding to them over time to make them better and better.
We’ve got a great new costing tool that we’re about to release alongside the Climate-Smart Home Explorer, which compares home improvement options’ costs at build with occupant savings or avoided costs. In other words, the Climate-Smart Home Explorer will soon become even more useable! I’m also looking forward to a map update, which will add more layers and new analytical capabilities that include things like per capita and benchmarking information.
JK: Being an engineer and having worked with map-based data tools, I am most excited about upcoming enhancements to the map, as well as the Community Profiles. We started Climate Insight with a relatively simplistic map interface, which has put some constraints on our bolder ideas for mapping spatial and community-related data. We are working on exciting new enhancements to the map that will allow us to support more data, more analyses, and make Climate Insight’s place-based tools even more useful.
SY: I am very excited about expanding our content on equity across the platform. I don’t want to give away too much, as we are still very much in the planning stages. But, I can say that we are looking into developing a very cool new feature that will make it easier to identify how and when equity considerations can be integrated into your infrastructure projects, to ensure a low-carbon, resilient future for all. And in the meantime, I also can’t wait to play with a new land use planning tool coming in September to compare the impacts of different types of neighbourhood density and home types.
Q&A with the Team Behind Climate Insight
Discover how others are using the platform, how it has evolved since 2024, and what new features we are working on.
Climate Insight is a free, online platform that empowers communities across Canada with the data and information needed to build low-carbon, resilient housing and infrastructure. Its functionality, features, and content are continuously updated to better serve communities as they confront the growing challenges of climate change.
In light of Climate Insight’s most recent update, which launched on April 29, 2026, ICLEI Canada’s Managing, Engineering, and Project Directors share their thoughts on Climate Insight, its features and its future.
Sheri and Josh, you have both worked for municipal governments. If you had access to Climate Insight while you were in those roles, what features would you have used most?
Sheri Young, Project Director, Climate Insight (SY): Most often? The Solutions Finder. I would run every permit request through the Solutions Finder and attach the results to every application. I would actually also do that with the Rapid Risk Assessment (RRA) tool. Both of these tools can initiate discussions and provide background support for any project at any stage, whether it’s prioritizing projects, building a business case, or looking for ways to add resilience to existing infrastructure.
Joshua Kelly, Engineering Director, Climate Insight (JK): For me, it would be the map and the RRA tool. I used to work to integrate climate considerations into the community’s asset management systems. The climate and social vulnerability data available on Climate Insight’s map provide valuable tools to inform and support asset-related decisions. To take this one step further, our asset management systems were also increasingly considering risk, and I would have used the RRA as a low-barrier access point to complete climate risk assessments for community infrastructure internally, without the need to allocate resources to bring in external consultants.
“If I were still working at the Town of Okotoks, I would use Climate Insight to run every permit request through the Solutions Finder, and attach the results to every application.”
— Sheri Young, Project Director
Nearly two years into Climate Insight, how are communities using the platform?
Ewa Jackson, Managing Director, ICLEI Canada (EJ): We built Climate Insight to help fill capacity gaps so that all Canadian communities can realize their ambitions. The good news is that we’re seeing that this is already happening.