The city council and the North Edinburgh Trust had made an application for 150,000 of funding from the Climate Change Fund.
It had been hoped that the money could be secured in order to help create "warm zones" - which are an attempt to identify households in fuel poverty and take action.
Mark Turley, director of the city council's services for communities department, said: "An alternative source of funding is yet to be identified. Current efforts are focused on identifying an alternative approach, working with a wider range of partners as a means of supporting the ongoing work of NET."
A survey of households in north Edinburgh is being carried out by the council and NET.