Climate Change Minister Aileen McLeod has confirmed the £10 million Climate Challenge is to continue for another year.
It is understood the funding was allocated in the Scottish Government's Draft Budget 2016/17.
Community groups across Scotland are now being invited to apply for a share of the £10m fund to take action against climate change.
Dr McLeod said: "Scotland is already three quarters of the way towards achieving our world-leading target of a 42 per cent reduction in greenhouse gas emissions by 2020. But further action is needed by all of us - not just the Government – to achieve further reductions.
"I welcome the efforts being made by hundreds of communities the length and breadth of Scotland to tackle the local impacts of a changing climate. I am pleased to confirm Scottish Government support for this action will continue with a further £10.3 million investment in the Climate Challenge Fund over the next year."
Derek Robertson, Chief Executive at Keep Scotland Beautiful, which manages the fund on behalf of the Scottish Government, added: "We welcome the new funding made available through the Climate Challenge Fund for community groups across Scotland to tackle climate change at a grass roots level, and urge potential applicants to apply quickly."
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