A federally funded $1.6 billion program meant to support projects with “social benefits” failed to define the term, making it unclear whether taxpayers received value for money, according to a Department of Natural Resources audit.
The Interdepartmental Evaluation Of The Green Municipal Fund Program found that while the fund was created 25 years ago to subsidize local initiatives like recycling and conservation, it never established measurable indicators for “social benefits.”
Blacklock's Reporter says auditors noted that the program’s definition relied on vague language about promoting “vibrant and healthy communities with inclusive infrastructure and benefits for all.”
Data was self-reported by funding recipients after project completion, with no standardized measurement system.
“The Fund exists to enhance the quality of life for people in Canada by accelerating a transformation to resilient net zero communities,” the report stated. “It does this by providing grants, loans, innovative financing, leveraged spending, capacity building, and strategic support.”
However, after 25 years, auditors said the program still lacked a comprehensive method to track how funded projects delivered tangible results.
Concerns over unclear spending on environmental programs are longstanding.
A 2019 Treasury Board memo obtained through Access to Information warned that billions were being spent on “green” initiatives across multiple federal programs without clear accountability.
The Horizontal Review Of Business Innovation And Clean Technology Programs identified 45 separate initiatives across 11 departments and agencies, calling the system a disorganized mix of subsidies with weak oversight.
“Outcomes, target setting, and reporting are weak,” the memo stated, adding that “there is no clear guidance to support decisions by programs.” It noted that hundreds of spending decisions were made with no overarching strategy, making it impossible to track the cumulative impact of federal clean technology investments.
The Treasury Board did not disclose the total amount paid in grants, loans, and guarantees across government departments but acknowledged it had no way to determine if taxpayers received value for money.
