Canadian cities and towns, which are facing a tough battle to fend off the impacts of climate change, will share over half a billion dollars from a new federal adaptation fund, but the funds represent only a small fraction of the bills that Canadian municipalities face regarding floods, wildfires, and other severe weather.

A 2020 analysis commissioned by the Federation of Canadian Municipalities and the Canadian Institute of Actuaries found that local governments need $5.3 billion annually to adapt to climate change.

Environment Minister Steven Guilbeault announced on Monday that Ottawa will provide $530 million over the next eight years for the new Municipal Climate Adaptation Leadership Program.

Under this initiative, local governments can apply for up to $1 million to help cover the costs of adaptation projects and up to $70,000 for risk assessments and feasibility studies.

Guilbeault said, "In a world of floods, violent storms, wildfires, and other climate impacts, making our communities more livable means planning for the future and building greater resilience in critical local infrastructure."

The program was announced in November 2022, but only received funding in the recent federal budget in April.

Guilbeault announced the program on the banks of the Ottawa River west of Parliament Hill.

The river has experienced one-in-100-year floods twice in the past seven years, bringing tens of millions of dollars in additional bills for Ottawa and other municipalities along the waterway.

Tim Tierney, an Ottawa City Councillor and third vice-president of the Federation of Canadian Municipalities, welcomed the new adaptation funds even as he acknowledged it was just a drop in the bucket of what is actually needed.

He said, "We'll take whatever we can get," adding, "We're happy to finally have some sort of structure."

He mentioned that Ottawa may consider applying for funding for projects to support riverfront areas in the city that have already experienced repeated flooding, or for money to bury hydro lines.

Since 2018, the city has experienced three major power outages lasting days, if not weeks – due to a hurricane and a major windstorm known as a derecho, as well as an ice storm.

The program will be administered by the Federation of Canadian Municipalities through its Green Municipal Fund.

Chris Bouvier, the fund's executive director, said the $1 million limit per project may seem small for major cities, but for the majority of small and medium-sized communities, it will be a significant help.

Dustin Cary, who helped design the Green Municipal Fund as a lead for climate adaptation, listed more examples of what could receive funding under the program.

Eligible projects could include building artificial wetlands, restoring riverbanks, installing shade structures to address heat issues, planting trees, or even helping to establish community centers or libraries or other buildings in the city to serve as cooling centers during heatwaves.