The Sustainable Communities Challenge Fund was created in 2022 to help Nova Scotia meet its greenhouse gas reduction targets of 53 percent below 2005 levels by 2030, and net-zero by 2050. It is funded by the Government of Nova Scotia, and administered by the Nova Scotia Federation of Municipalities.

Funding opportunities under the adaptation stream focus on climate-ready infrastructure, nature-based approaches, and community coordination and planning.

The fund is open to Nova Scotian municipalities, first nations bands and tribal councils, post-secondary institutions, and non-profit organizations.

In September 2023 there was a $15.4 million top up to this fund