Financial overview: Appearance before the Standing Committee – May 3, 2022

Overview of Environment and Climate Change Canada’s 2022-23 Main Estimates

Issue

• Environment and Climate Change Canada’s reference levels for the 2022-23 Main Estimates are presented at $1,968.2 million.

Points to register

• ECCC’s Main Estimates total $1,968.2 million which represents an increase of $269.1 million or 15.8% from the 2021-22 Main Estimates.
• This increase is mostly due to new investments to conserve Canada’s land and freshwater, protect species at risk, advance Indigenous reconciliation and increase Canadians’ access to nature. Notable funding is also provided for the implementation of natural climate solutions in Canada and to help developing countries address the impact of climate change.
• This increase is primarily offset by the decreasing funding profile of the Low Carbon Economy Fund (LCEF). Budget 2022 announced $2.2 billion over seven years, starting in 2022-23, to ECCC to expand and extend the LCEF which is not included in these Estimates.
• With the funding received in these Estimates, ECCC will continue to provide national leadership in reducing Canadian greenhouse gas and short-lived climate pollutant emissions; engage Indigenous people in clean growth and climate change; prevent pollution in ecosystems, water and air; conserve and protect Canada’s wildlife and habitat, recover species at risk; and, provide weather and environmental information to protect the health and safety of Canadians.

2022-23 Main Estimates in comparison to the 2021-22 Main Estimates

• The $269.1 million is composed of:
  • A voted spending authority increase of $95.2 million in operating expenditures (Vote 1);
  • A voted spending authority increase of $16.0 million in capital expenditures (Vote 5);
  • A voted spending authority increase of $146.6 million in grants and contributions expenditures (Vote 10); and
  • A statutory increase of $11.3 million for the contributions to employees benefit plans.
• The increase from 2021-22 Main Estimates to 2022-23 Main Estimates is mainly due to:
  • $236.8 million to conserve Canada’s land and freshwater, protect species, advance Indigenous reconciliation and increase access to nature;
  • $65.2 million to implement natural climate solutions in Canada;
  • $28.3 million to help developing countries address the impact of climate change (Canada’s International Climate Finance Program);
  • $27.3 million related to the Chemicals Management Plan;
  • $14.2 million to reduce greenhouse gas emissions in the transportation and methane waste sectors;
  • $12.6 million related to the carbon pollution pricing proceeds return;
  • $11.3 million related to the Youth Employment and Skills Strategy;
  • $9.8 million to support climate change policy capacity;
  • $8.9 million to address imminent threats to Wood Bison herd; and
  • $7.8 million to establish the Canada Water Agency Transition Office;

Offset by decreases of:

• $136.5 million related to the Low Carbon Economy Fund.

Main Estimates – Explanations of main variances

ECCC 2022-23 Main Estimates reflect a net increase of $269.1 million (including EBP), or 15.8%, compared to previous year’s Main Estimates. Following are brief descriptions of the major items.

• An increase of $236.8 million to conserve Canada’s lands and freshwater, protect species, advance Indigenous reconciliation and increase access to nature
  • This funding will conserve up to 1 million square kilometres (km2) of additional land and inland waters to achieve Canada’s target of 25% protected areas by 2025, including through National Wildlife Areas and Indigenous Protected and Conserved Areas. The initiative will also create thousands of jobs in nature conservation and management, accelerate new provincial and territorial protected areas, support Indigenous Guardians, and take action to protect priority species at imminent risk of disappearing, including through partnerships with Indigenous peoples.
  • Budget 2021 provided ECCC a total of $1,376.3 million of new funding over five years, beginning in 2021-22.
• An increase of $65.2 million to implement natural climate solutions in Canada
  • This $4 billion horizontal initiative will operationalize Canada’s commitment to plant two billion trees and restore, better manage, and conserve Canada’s natural and managed ecosystems. This funding will enable ECCC to work with provinces, territories, conservation organizations, federal landowners and Indigenous communities to implement climate smart, natural solutions to reduce greenhouse gas emissions related to ecosystem loss. They aim to deliver 13-17 megatonnes in greenhouse gas emission reductions annually by 2050, while also delivering biodiversity and human well-being co-benefits such as ecosystem restoration and the creation of green jobs.
  • The 2020 Fall Economic Statement provided ECCC $621.6 million in new funding over 10 years starting in 2021-22.
• An increase of $28.3 million for Canada's International Climate Finance Program
  • The Government of Canada has committed $5.3 billion in resources to implement Canada’s International Climate Finance Program. This funding will enable ECCC to support developing countries transition to a low-carbon, climate-resilient, nature positive and inclusive approach to sustainable development. This will be accomplished through the pursuit of innovative approaches and partnerships, including with the public and private sector.
  • An off-cycle funding decision provided ECCC $161.5 million over five years in new funding, beginning in 2021-22.
• An increase of $27.3 million to continue Canadaʼs chemicals management regime
  • The Government of Canada has committed $296 million over three years to protect human health and the environment from harmful chemicals by continuing the Chemicals Management Plan (CMP). This funding will enable ECCC to continue existing activites, address program pressures and support new activities that have not previously been funded under the CMP. The existing and new activities are divided accross the CMP’s seven core functions; risk assessment, risk management, compliance promotion and enforcement, research, monitoring and surveillance, engagement and outreach, and program management, which will help to reduce risks from harmful chemicals to the environment and Canadians.
  • Budget 2021 provided ECCC $82 million in new funding over 3 years, starting in 2021-22.
• An increase of $14.2 million for Reducing Greenhouse Gas Emissions in the Transportation and Waste Sectors
  • This funding will enable ECCC to strengthen and implement greenhouse gas emissions regulations and zero emission requirements for light- and heavy-duty vehicles and implement zero emission requirements for small off-road equipment. It will also develop, implement and enforce federal landfill methane regulations, while undertaking additional actions to support food diversion and energy recovery from biodegradable waste. The waste sector initiative is anticipated to reduce GHG emissions by 11.5 Mt carbon dioxide equivalent by 2030 (from current levels). In addition, the transportation sector initiatives are anticipated to reduce GHG emissions by 8.5 Mt carbon dioxide equivalent by 2030 (compared with business as usual).
  • Budget 2021 provided ECCC $65.4 million over five years in new resources, beginning in 2021-22, and instructed ECCC to allocate $36.9 million from its existing resources over the same period.
• An increase of $12.6 million for Carbon Pollution Pricing Proceeds Return
  • This funding will enable the return of Output-Based Pricing System proceeds to jurisdictions of origin, as required under the Greenhouse Gas Pollution Pricing Act, and support co-development work with Indigenous groups for the return of a portion of fuel charge proceeds. The return of federal carbon pollution proceeds will support climate mitigation actions toward achieving Canada’s Nationally Determined Contribution and net-zero targets, including through reductions in greenhouse gas emissions, expansion of clean energy production, and improvements in energy efficiency.
  • An off-cycle funding decision provided ECCC $53.0 million in new resources over 5 years starting in 2021-22.
• An increase of $11.3 million for Youth Employment and Skills Strategy
  • This funding will support the creation of approximately 356 additional youth internships in 2022-23. Through its science horizons internship programs, ECCC will ensure youth have access to programs that enable them to acquire the skills, learning experiences and opportunities they need to find and maintain employment or return to school.
  • Budget 2021 provided ECCC $11.3 million in new resources over one year in 2022-23.
• An increase of $9.8 million to support climate change policy capacity
  • The funding to support cimate change policy capacity will be used by ECCC to implement measures contained in the Enhanced Climate Plan to sustain and strengthen the department’s domestic climate change policy capacity to drive whole-of-government implementation of Canada’s Strengthened Climate Plan; and sustain and strengthen ECCC’s international climate policy capacity to advance Canada’s international priorities on environment and climate.
  • Budget 2021 provided ECCC $48.9 million in new funding over five years beginning in 2021-22.
• An increase of $8.9 million to address imminent threats to Wood Bison
  • This funding will enable ECCC to address the imminent threats to two wood bison herds, Ronald Lake and Wabasca, in northeastern Alberta and fulfill obligations under the Species at Risk Act. It will be achieved in two key areas: measures to address disease within the wood bison national park (WBNP); and, measures to address imminent threats outside WBNP. Measures will be taken in collaboration with the Government of Alberta and Indigenous peoples.
  • An off-cycle funding decision provided ECCC a total of $39.0 million of new funding over five years, beginning in 2021-22.
• An increase of $7.8 million to establish the Canada Water Agency Transition Office
  • Budget 2021 announced funding to establish a Canada Water Agency Transition Office and initiate related freshwater science and data work. This funding will enable ECCC to achieve the objective of the Transition Office to scope, prepare and stand up a Canada Water Agency (CWA). To this end, the Transition Office will undertake various governance and engagement activities. For example, it will aim to understand partner and stakeholders’ views on the potential mandate of the CWA through engagement with Indigenous partners, Provinces and Territories, industry stakeholders, other federal departments and agencies, and the public.
  • Budget 2021 provided ECCC $16.4 million in new resources over two years beginning in 2021-22.
• A decrease of $136.5 million for the Low Carbon Economy Fund
  • The LCEF program came to an end in 2021-22 but was extended for three years to give recipients more time to conclude their projects. The net impact on LCEF funding for 2022-23 represents a decrease of $136.5 million from 2021-22.
  • Budget 2022 announced $2.2 billion over seven years, starting in 2022-23, to ECCC to expand and extend the LCEF which is not included in these Estimates.

A net decrease of $16.6 million for a number of initiatives:

Description	Amount
Wildfire and Flood Resilience	$4.8 million
Net-Zero Advisory Body and Net-Zero Challenge	$4.8 million
Marine Conservation Targets	$4.6 million
Climate Lens Implementation and Centre of Expertise	$4.1 million
Wood Buffalo National Park World Heritage Site	$3.4 million
Reprofiles	$2.5 million
Address Canadian Data Receiving Infrastructure	$1.7 million
A tripartite partnership for the future of the Montreal Biosphere	$1.5 million
Renew and Advance Clean Technology Enabling Measures	$1.2 million
Sustainable Finance Action Council	$0.7 million
Strengthening the capacity and transparency of the pesticide review process	$0.4 million
Census of the Environment	$0.4 million
Transfers with other government departments	($4.2 million)
Technical adjustments	($9.8 million)
A net decrease for a number of initiatives with changes in the approved funding levels and sunsetters	($32.7 million)
Total	($16.6 million)

Main estimates – Variances by vote

Vote 1 Operating expenditures: an increase of $95.2 million compared to 2021-22 Main Estimates

• The increase in Vote 1 is mainly related to additional funding provided for Canada’s land and freshwater, protect species, advance Indigenous reconciliation and increase access to nature, Chemicals Management Plan, natural climate solutions in Canada and Carbon Pollution Pricing Proceeds Return.

Vote 5 capital expenditures: an increase of $16.0 million compared to 2021-22 Main Estimates

• The increase in Vote 5 is mainly related to additional funding for Canada’s land and freshwater, protect species, advance Indigenous reconciliation and increase access to nature, to reduce greenhouse gas emissions in the transportation and methane and to funding profile changes for the retrofit of the Global Atmosphere Watch Observatory in Alert, Nunavut and for the Strong Artic and Northern Communities.

Vote 10 Grants and Contributions expenditures: an increase of $146.6 million compared to 2021-22 Main Estimates

• The increase in Vote 10 is mainly related to additional funding for Canada’s land and freshwater, protect species, advance Indigenous reconciliation and increase access to nature, natural climate solutions in Canada, Canada’s International Climate Finance Program and Youth Employment and Skills Strategy.

Grants and contributions

Environment and Climate Change Canada’s 2022-23 Main Estimates include $770.3 million in voted grants and contributions composed of $21.3 million in grants and $749.0 million in contributions.

1. Voted Grants - Total $21.3 million including:

• Grants in support of Canada's International Climate Finance Program: $10.3 million
  • The purpose of these grants is to promote change towards addressing climate change and policies in developing countries. The overall objective of the Program is to help developing countries transition to low-carbon, climate-resilient, nature positive and inclusive sustainable development.
• Grants in support of Taking Action on Clean Growth and Climate Change: $4.2 million
  • These grants enable engagement with municipalities, provinces, territories, Indigenous peoples, other stakeholders to support and coordinate the implementation of the PCF on Clean Growth and Climate Change; support actions that reduce Canadian greenhouse gas (GHG) emissions; develop regulatory instruments; support businesses and Canadians to adapt and become more resilient to climate change; increase awareness as well as youth, student and Indigenous participation in climate change initiatives; and contribute to international climate change actions to increase global benefits.
• Grant for the Implementation of the Montreal Protocol on Substances that Deplete the Ozone Layer: $3.5 million
  • The Montreal Protocol on Substances that Deplete the Ozone Layer is an international treaty designed to protect the ozone layer by phasing out the production of numerous substances that are responsible for ozone depletion. This grant enables Canada to meet up to 20 per cent of its annual obligation to the Multilateral Fund for the Implementation of the Montreal Protocol to support projects that assist developing countries comply with their commitments under the Montreal Protocol.
• Grants in support of the Low Carbon Economy Fund: $2.5 million
  • These grants support incremental actions to current plans that materially reduce greenhouse gas (GHG) emissions and achieve significant reductions within the period of Canada’s first Nationally Determined Contribution under the Paris Agreement. The LCEF will also support the implementation of new technologies and Canada’s long-term transition towards cleaner growth through the decarbonisation of the economy.
• Grant under the Innovative Solutions Canada program: $0.7 million
  • This grant supports the Innovative Solutions Canada program dedicated to supporting the scale up and growth of Canada’s innovators and entrepreneurs by having the federal government act as a first customer. The Program allows participating departments/agencies to support the scale up of Canadian small businesses through early-stage, pre-commercial R&D. The Program helps to develop a domestic market for early-stage, pre-commercial innovations; provides a mechanism for government to partner with innovative small businesses on the creation of unique IP and novel solutions; and facilitates the subsequent testing and validation of prototypes, as well as prepares a pathway to commercialization and purchase of novel new products by government and non-government customers.
• Grants in support of Weather and Environmental Services for Canadians: $0.04 million
  • This grant supports the continued research and the development of highly qualified experts in the scientific areas related to Environment and Climate Change Canada’s mandate, such as atmospheric study and climate change.

2. Voted Contributions - Total of $749.0 million including:

• Contributions in support of the Low Carbon Economy Fund: $291.0 million
  • These contributions support incremental actions to current plans that materially reduce greenhouse gas (GHG) emissions and achieve significant reductions within the period of Canada’s first Nationally Determined Contribution under the Paris Agreement. The LCEF will also support the implementation of new technologies and Canada’s long-term transition towards cleaner growth through the decarbonisation of the economy.
• Contributions in support of the Canada Nature Fund: $288.7 million
  • The Canada Nature Fund will support recipients to conserve, establish and/or expand protected areas, secure private land, support provincial and territorial species protection efforts and help build Indigenous capacity to conserve land and species. It will support and enable others to undertake actions that conserve wildlife and protect and improve their habitat.
• Contributions in support of Conserving Nature: $75.8 million
  • The purpose of these contributions is to advance conservation of biodiversity and sustainable development by supporting projects that enable conservation, protection and recover of Canada’s wildlife including; species at risk and their habitat (including critical habitat) and healthy populations of migratory birds. These contributions will also support Canada’s biodiversity strategy and related domestic and international partnership interests, including the establishment and management of protected areas, Indigenous protected and conserved areas and Indigenous people’s capacity and participation in conservation.
• Contributions in support of Preventing and Managing Pollution: $27.5 million
  • These contributions support the collaboration with provinces, territories, Indigenous peoples and others to develop and administer environmental standards, guidelines, regulations and other risk management instruments to reduce releases and monitor levels of contaminants in air, water and soil; promote and enforce compliance with environmental laws and regulations; and administer on the ground projects that have positive impact on the environment.
• Contributions in support of Taking Action on Clean Growth and Climate Change: $21.5 million
  • These contributions support engagement with municipalities, provinces, territories, Indigenous peoples and other stakeholders to assist and coordinate the implementation of the PCF on Clean Growth and Climate Change; support actions that reduce Canadian greenhouse gas (GHG) emissions; develop regulatory instruments; support businesses and Canadians to adapt and become more resilient to climate change; increase awareness as well as youth, student and Indigenous participation in climate change initiatives; and contribute to international climate change actions to increase global benefits.
• Contributions in support of Canada's International Climate Finance Program: $16.0 million
  • The purpose of these contributions is to promote change towards addressing climate change and policies in developing countries. The overall objective of the Program is to help developing countries transition to low-carbon, climate-resilient, nature positive and inclusive sustainable development.
• Contributions in support of the Youth Employment and Skills Strategy: $14.1 million
  • Environment and Climate Change Canada’s Science Horizons Youth Internship Program (Science Horizons) falls under the Youth Employment and Skills Program led by Employment and Social Development Canada. The objective of Science Horizons is to develop opportunities for youth with post-secondary education by providing eligible employers with wage subsidies to hire youth with a post-secondary education who are eligible to work in science, technology, engineering or math (STEM) linked to the green economy.
• Contributions in support of Predicting Weather and Environmental Conditions: $4.9 million
  • This contribution encourages and supports international capacity building activities to enable access, understanding and use information on changing weather, water, air quality and climate conditions.
• Assessed contribution to the Commission for Environmental Cooperation (CEC): $3.5 million
  • This contribution supports Canada’s membership to The Commission for Environmental Cooperation (CEC), established by Canada, the United States and Mexico, under the terms of the North American Agreement for Environmental Cooperation. It addresses environmental concerns in North America, helps prevent potential trade and environmental conflicts among the NAFTA partners, and promotes the effective enforcement of domestic environmental laws in the three countries.
• Contributions in support of the Impact Assessment and Regulatory System: $3.0 million
  • The purpose of these contributions is to support the “Cumulative Effects, Open Science and Evidence” approach which includes the development of an open science and data platform; supporting regional assessments; conducting strategic assessments, including ones on climate change and biodiversity; and coordinating departmental, federal and inter-jurisdictional efforts to implement the proposed approach to addressing the cumulative effects of natural resource development.
• Assessed contribution to the World Meteorological Organization (WMO): $2.2 million
  • This contribution supports Canada’s membership to the World Meteorological Organization (WMO), a specialized agency of the United Nations and the UN system's authoritative voice on the state and behavior of the Earth's atmosphere, its interaction with the oceans, the climate it produces and the resulting distribution of water resources. As one of the most weather-sensitive countries in the world, Canada plays a major role in shaping the world’s weather and climate. This membership allows Canada to selectively participate in areas of the WMO agenda where mutual benefits are derived.
• Assessed contribution to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES): $0.2 million
  • This contribution supports Canada’s membership to CITES which is an international agreement between governments since 1975 with the aim to ensure that international trade in specimens of wild animals and plants does not threaten their survival. The CITES core programming, as agreed by the Conference of the Parties, contributes to protection and conservation of biodiversity.
• Assessed contribution to the Convention on Wetlands of International Importance (Ramsar Convention): $0.2 million
  • This contribution supports Canada’s membership to the Convention on Wetlands, known more widely as the Ramsar Convention. The Convention is an intergovernmental treaty that embodies the commitments of its member countries to maintain the ecological character of their Wetlands of International Importance and to plan for the sustainable use of all of the wetlands in their territories.
• Assessed contribution to the Minamata Convention on Mercury: $0.2 million
  • This contribution supports Canada’s membership to the Minamata Convention on Mercury, a multi-lateral environmental treaty under the United Nations Environmental Programme with the objective of protecting human health and the environment from the adverse effects of mercury.
• Assessed contribution to the Organization for Economic Co-operation and Development (OECD): $0.1 million
  • This contribution supports Canada’s membership to the Convention on the Organization for Economic Co-operation and Development, an international agreement between governments with the aim to act as a forum for countries committed to democracy and the market economy providing a setting to compare policy experiences, seek answers to common problems, identify good practices, and co-ordinate domestic and international policies. ECCC is the lead agency responsible for implementing OECD’s Special Programme on the Control of Chemicals.
• Assessed contribution to the International Network for Bamboo and Rattan (INBAR): $0.03 million
  • This contribution supports Canada’s membership to the INBAR which is an intergovernmental organization dedicated to improving the social, economic, and environmental benefits afforded to producers and users of bamboo and rattan. INBAR connects a global network of partners from the government, private, and not-for-profit sectors in over 50 countries to define and implement a global agenda for sustainable development through bamboo and rattan.

ECCC’s 2022-2023 Main Estimates

Main Estimates – 2022-2023: Department of the Environment

Overview of Impact Assessment Agency of Canada’s 2022-2023 Main Estimates

Issue

IAAC’s reference levels for the 2022–2023 Main Estimates are presented at $80 million.

Points to register

• Impact Assessment Agency of Canada’s Main Estimates total funding is $80 million, which represents an increase of $1.0 million or 1.3% in total funding from the 2021–2022 Main Estimates.
• There is a net increase over 2021–2022 levels of approximately $1.0 million primarily due to an increase in operating funds ($1.6 million), a small increase in a statutory vote or employee benefits program ($0.1 million) and a small reduction in grants and contributions funds ($0.7 million).
• These authorities include potential revenues up to a maximum of $8 million. Under cost recovery regulations, IAAC has the authority to recover certain costs from proponents directly related to the exercise of IAAC’s responsibilities during assessments by review panels.
• By Vote: $80 million
  • $52.6 million of IAAC’s authorities are allotted from Vote 1: Operating expenditures to conduct assessments;
  • $21.4 million are allotted from Vote 5: Grants and contributions to support public and Indigenous participation in assessments; and
  • The remainder (approx. $6.0 million) is from a statutory vote for the employee benefit program.
• By Purpose: $80 million
  • $70 million is devoted to Impact Assessments. This figure includes the Agency’s $8.0 million in vote netted revenue, which is recoverable from proponents; and
  • $10 million is devoted to Internal Services.
• With the funding received in Main Estimates, the Impact Assessment Agency of Canada will continue to deliver high-quality assessments in support of government decisions about major projects under both the new Impact Assessment Act, which came into force in August 2019, and the previous Canadian Environmental Assessment Act, 2012.

Grants and contributions

• Impact Assessment Agency of Canada’s 2022–2023 Main Estimates include $21.4 million for grants and contributions.
• The Agency’s grants and contributions programs provide funding support to individuals, non-profits, and Indigenous groups to improve scientific information and Indigenous knowledge; enhance public participation; contribute to Indigenous reconciliation and build Indigenous capacity; and promote transparency, efficiency and timeliness.
• The funding is divided among the following programs:
• Contributions: $17.4 million
  • Indigenous Capacity Support Program ($8.9 million): supports the development of local and regional Indigenous knowledge and capacity to effectively participate in, or undertake project impact assessments, regional assessments, policy engagement, impact assessment monitoring and follow-up activities, and Impact Assessment Act-related activities.
  • Policy Dialogue Program ($3.6 million): supports the provision of external advice and participation in the development of policies, methodologies, tools and practices related to impact assessment, regional assessments and strategic assessments.
  • Participant Funding Program ($4.5 million): to help recipients prepare for and participate in key stages of impact assessments undertaken, as well as regional and strategic assessments.
  • Contribution to the Province of Quebec – James Bay and Northern Quebec Agreement ($0.4 million): to maintain and provide funding for the secretariats supporting the James Bay Advisory Committee on the Environment and the Kativik Environmental Advisory Committee.
• Grants: $4.0 million
  • Participant Funding Program ($3.6 million): to help recipients prepare for and participate in key stages of impact assessments undertaken, as well as regional and strategic assessments.
  • Research Program ($0.4 million): supports impact assessment-related research.

Funding renewal

• Budget 2018 announced new funding for the Agency of $258.6 million over five years, starting in 2018–2019, to implement the new impact assessment regime. This funding sunsets on March 31, 2023, which explains the decrease in planned spending starting in 2023–2024.
• IAAC is leading a process to renew funding for the implementation of the impact assessment regime under the Impact Assessment Act (IAA) in collaboration with 13 partner departments/agencies also seeking renewed or new funding pertaining to responsibilities under the IAA.
• Budget 2022 identified that the “federal government will consider the funding requirements for the Impact Assessment Agency of Canada and other relevant departments in the context of the fall 2022 economic and fiscal update.” (p. 69)

Background/current status

• The new Impact Assessment Act came into force on August 28, 2019, repealing the Canadian Environmental Assessment Act, 2012 and transforming the Canadian Environmental Assessment Agency into the Impact Assessment Agency of Canada.
• Under this new Act, IAAC’s mandate and responsibilities have been expanded, making IAAC the single federal organization responsible for impact assessments and the Crown coordinator for consultations with Indigenous peoples on designated projects and for regional and strategic assessments.
• In leading these assessments, IAAC’s scope of assessment has expanded from negative environmental effects to positive and negative environmental, economic, social, health and gender effects of designated projects. With the funding received in Main Estimates, the Impact Assessment Agency of Canada will continue to deliver high-quality impact assessments in support of government decisions about major projects.
• See 2022–2023 Main Estimates attached page.

IAAC’s 2022-2023 Main Estimates

Main Estimates – 2022-2023: Impact Assessment Agency of Canada

Overview of Parks Canada Agency’s 2022-2023 Main Estimates

Issue

• The Agency’s reference levels for the 2022-23 Main Estimates are presented at $988.6 million.

Points to register

• Approximately $988.6 million in total funding is anticipated through the 2022-23 Main Estimates, which is composed of:
  • A voted spending authority amount of $781.5 million (79%) which consists of
    • $622.1 million in Operating expenditures, grants and contributions (Vote 1);
    • $138.1 million in Capital expenditures (Vote 5); and
    • $21.3 million for the New Parks and Historic Sites Account (Vote 10).
  • A statutory amount of $207.1 million (21%) which consists of:
    • $57.1 million for the Employee Benefit Plan; and
    • $150 million for expenditures equivalent to revenues.
• This represents a net decrease of $140.5 million, or 12%, compared to the 2021-22 Main Estimates. The major changes include:
  • a decrease of $308.8 million due to the time-limited funding for infrastructure investments;
  • an increase of $96.6 million for an Enhanced Nature Legacy;
  • an increase of $15.8 million for the implementation of the Wood Buffalo National Park World Heritage Site Action Plan;
  • an increase of $13.6 million for the wildfire and flood resilience;
  • an increase of $9.4 million for Canada’s New Marine Conservation Targets; and
  • a net increase of $32.8 million for a number of initiatives with changes in the approved funding levels.
• With the funding received in Main Estimates, Parks Canada will continue to protect, present, and manage Canada’s existing national historic sites, national parks, heritage canals, national marine conservation areas and one national urban park for the benefit and enjoyment of Canadians. It will also support Parks Canada to work with partners to consider the creation or enhancement of new national parks, national marine conservation areas and cultural landscapes as well as the creation or enhancement of urban parks and ecological corridors.

Change to the vote structure

• Starting with 2022-23, Parks Canada Agency has a separate vote for capital expenditures.
• Capital expenditures are not new to the Agency; however, in the past, spending was reflected under one vote entitled program expenditures.
• The Agency is a major assets holder and incurs significant capital expenditures as part of its normal business. The change towards a separate vote aligns the Agency’s vote structure with other organizations who are also major assets holders with substantial capital expenditures.

Main Estimates – Explanations of main variances

The Agency’s 2022-23 Main Estimates reflect a net decrease of $140.5 million, or 12%, compared to previous year’s Main Estimates. Following are brief descriptions of the major items:

• A decrease of $308.8 million related to infrastructure investment
  • This decrease is primarily due to the time-limited funding for infrastructure investments as it nears completion. An amount of $4.2 billion was provided to the Agency over the period of 2015-2023 to support the delivery of 995 high priority projects to improve the condition of its capital assets in national parks and national historic sites. The Agency is developing a long-term plan to seek funding renewal for the management and sustainability of its infrastructure.
• An increase of $96.6 million for an Enhanced Nature Legacy
  • This funding will allow for the renewal and/or expansion of critical elements of the original Nature Legacy 2018 initiative to meet the more ambitious conservation goals. Funding will help respond to the biodiversity crisis and pressures for sustainable recovery and well-being of Canadians by protecting 25% of Canada's lands and freshwater by 2025, strengthening protection and recovery of species at risk and their habitats, advancing reconciliation through Indigenous leadership in conservation and supporting healthy natural infrastructure and increased access to nature.
• An increase of $15.8 million for the implementation of the Wood Buffalo National Park World Heritage Site Action Plan
  • Funding will be used to strengthen management of the Wood Buffalo National Park (WBNP) in collaboration with Indigenous partners, enhance research, monitoring and management of the Peace-Athabasca Delta as well as establish mechanisms and take action to support improved water management in the Peace-Athabasca Delta. This initiative will contribute to improved outcomes for ecological integrity of WBNP.
• An increase of $13.6 million for the wildfire and flood resilience
  • This funding will support the Enhancing Wildfire Resilience of Parks Canada's Protected Areas program focused on prevention and response measures for wildfires that originate in, traverse through, or otherwise threaten Parks Canada administered lands and adjacent communities. It is part of a program that will collectively help Canada better understand, be resilient to, and protected from, natural hazards by improving availability and access to crucial data and mapping, as well as increasing operational capacity to prevent and respond to wildfires. Parks Canada will use the incremental funding to enhance capacity and expand its existing National Fire Management program. Activities will focus on strengthening the wildfire resilience of Parks Canada’s protected areas, including the safety of visitors and the protection of built facilities, natural and cultural assets, ecosystems and wildlife, for which the Agency has responsibility.
• An increase of $9.4 million for Canada’s New Marine Conservation Targets
  • This funding will support the new marine conservation targets initiative which aims to protect 25% of Canada's oceans by 2025. Funding will be used to support feasibility assessments and negotiation for 11 new national marine conservation areas throughout Canada’s oceans. This funding will also provide Parks Canada with the capacity to negotiate impact and benefit agreements and participate in marine spatial planning in the Western Arctic.
• A net increase of $32.8 million for a number of initiatives with changes in the approved funding levels

Description	Amount
Implementation of Rights and Reconciliation Agreements in Atlantic Canada	6,807,543
Youth Employment and Skills Strategy	6,765,876
Wood Bison	5,071,659
HMS Erebus and HMS Terror Inuit Impact and Benefit Agreement	7,932,427
HMS Erebus and HMS Terror Archaeology and Conservation	5,341,311
Advertising Initiatives	3,000,000
Federal Contaminated Sites Action Plan Phase IV	2,899,956
Other minor changes	2,483,829
Trans Canada Trail Contribution *	(7,500,000)
Total	32,802,601

* Budget 2022 proposed a renewed funding for the Trans Canada Trail at a higher level.

Main Estimates – Variances by vote

Vote 1 Operating expenditures, grants and contributions: an increase of $159.5 million compared to 2021-22 Main Estimates

• The increase in Vote 1 are mainly related to additional funding provided for: an Enhanced Nature Legacy; the implementation of the WBNP World Heritage Site Action Plan; the wildfire and flood resilience; the New Marine Conservation Targets.

Vote 5 Capital expenditures: a decrease of $316.2 million compared to 2021-22 Main Estimates

• The decrease in Vote 5 are mainly related to the reduction in time-limited funding for infrastructure investment. An amount of $4.2 billion was provided to the Agency over the period of 2015-2023 to support the delivery of 995 high priority projects to improve the condition of its capital assets in national parks and national historic sites. This decrease is offset by new capital investments for the Enhanced Nature Legacy; the implementation of the Wood Buffalo National Park World Heritage Site Action Plan; and the wildfire and flood resilience.

Vote 10 Payments to the New Parks and Historic Sites Account: an increase of $13.9 million compared to 2021-22 Main Estimates

• The New Parks and Historic Sites account is a special purpose account into which the Agency can deposit capital funds to set them aside for the specific purpose of creating or expanding national historic sites, national parks, national marine conservation areas or other protected heritage areas.
• The amounts shown in the Estimates documents are deposits into the account and vary from year to year depending on the funding plans and approvals for site establishment or expansion.
• The increase of $13.9 million relates to the following:
  • Lake Superior National Marine Conservation Area;
  • Qausuittuq National Park, Talluruptiup Imanga National Marine Conservation Area, Wrecks of HMS Erebus & HMS Terror National Historic Site;
  • Naats’ihch’oh National Park Reserve, Thaidene Nëné National Park Reserve;
  • Akami-Uapishkᵁ-KakKasuak-Mealy Mountains National Park Reserve;
  • Land acquisitions to expand and complete existing National Parks; and
  • offset by a decrease related to Rouge National Urban Park.

Grants and contributions

Parks Canada Agency’s 2022-23 Main Estimates include a total of $105,590,370 in transfer payments for grants and contributions. Grants and contributions have increased by $67.2 million compared to 2021-22 Main Estimates. This increase is mainly due to the new funding related to the Enhanced Nature Legacy.

1. Grants

1. Grant for the Implementation of Rights and Reconciliation Agreements in Atlantic Canada - $10.9 million
   • This grant will support the Rights and Reconciliation Agreements signed by Parks Canada and the Indigenous Nations included in the Historic Peace and Friendship Treaties in Atlantic Canada (the Mi’kmaq, Maliseet and Peskotomuhkati Nations), build capacity in Indigenous communities to participate with Parks Canada as co-managers of national historic sites and national parks, foster re-connection with the lands through traditional stewardship practices and protect Mi’kmaq, Maliseet and Peskotomuhkati culture and heritage.
   • This is an ongoing grant that ranges from $3 to 4 million annually, however, the 2022-23 amount is higher because Parks Canada is just finishing the negotiations and this amount includes an amount from the previous years.
2. Grant to implement the Impact and Benefit Agreements for Nahanni National Park Reserve - $7.5 million
   • This grant provides funding to the Dehcho First Nations and the Nahanni Butte Dene Band to support the completion of the Impact and Benefit Agreement for the Nahanni National Park Reserve to expand Canada’s national park and national marine conservation area systems and to support Canada’s biodiversity by protecting species and spaces.
   • This is an ongoing grant and it is part of a larger approval of over $10 million.
3. Grant for the implementation of Inuit Benefits related to the establishment and operation of the Wrecks of HMS Erebus and HMS Terror National Historic Site of Canada - $6.9 million
   • This grant is to fulfill commitments made in the Wrecks of HMS Erebus and HMS Terror National Historic Site of Canada Inuit Impact and Benefit Agreement regarding Inuit benefits and Inuit economic opportunities stemming from the establishment, management and operation of the national historic site in Nunavut. The sole eligible recipient of the grant is the Kitikmeot Inuit Association (the ‘recipient’), the Designated Inuit Organization designated by Nunavut Tunngavik Inc. to negotiate the Inuit Impact and Benefit Agreement for the national historic site under the Nunavut Agreement.
   • This is a new grant and it is a one-time grant.
4. Grants in support of activities or projects related to national parks, national marine conservation areas, national historic sites and historic canals – $5.6 million
   • These new grants are intended to assist recipients in conducting activities and delivering projects that will support the Agency in fulfilling its mandate.
   • Funding is mainly related to the Enhanced Nature Legacy initiative. This funding will be provided to partners, such as provincial governments, municipalities, established NGOs as well as Indigenous communities and Indigenous organizations, to support the following activities:
     • feasibility assessments and negotiations for 10 new national parks, up to 4 freshwater national marine conservation areas and 2 cultural landscapes, which could add up to 303,000 km² (3%) to Canada’s network of conserved areas;
     • creation or enhancement of new or existing urban parks as well as new corridors and/or recognition of existing ones in accordance with the Canadian criteria for Ecological Corridors;
     • establishment of 30 to 35 new Indigenous Guardians programs and develop capacity for new Guardians programs at Parks Canada places;
     • recovery of Priority Species (Southern Mountain Caribou).
   • These are new and ongoing grants with funding levels that vary from year to year based on anticipated requirements.
5. Tallurutiup Imanga Inuit Stewardship Program Seed Fund – $3.6 million
   • This grant provides funding for the start-up, management and operation costs for an Inuit Stewardship program in the five communities associated with Tallurutiup Imanga National Marine Conservation Area (TINMCA) to support Inuit involvement in conservation economy and collaborative management of Canada’s natural and cultural heritage. The purpose of this grant is not directly related to the operation and management of TINMCA.
   • This is a continued grant and it is part of a larger approval of over $17.8 million over 7 years.
6. Grant to the International Peace Garden - $22.7 thousands
   • The International Peace Garden commemorates the peaceful co-existence of Canada and the United States. The Garden straddles the Manitoba/North Dakota Border and is operated by a non-profit organization which receives funding from the State of North Dakota, the Province of Manitoba as well as the American and Canadian Federal Governments.
   • This is an ongoing grant with $22.7 thousand annually.

2. Contributions

1. Contributions in support of activities or projects related to national historic sites, national parks, national marine conservation areas and historic canals - $70.1 million
   • These are contributions to assist recipients in conducting activities and delivering projects that will support the Agency’s in fulfilling its mandate.
   • For example, there are contributions to the Qikiqtani Inuit Association for Cooperative Management Board capacity, Inuit Stewardship Program operating and infrastructure (environmental research/monitoring, impact assessments of climate change, search and rescue, harvesting, enforcement of zoning restrictions and youth programming) and contributions related to Nature Legacy.
   • Funding increases significantly in 2022-23, which is mainly related to the Enhanced Nature Legacy initiative. This funding will be provided to partners, such as provincial governments, municipalities, established NGOs as well as Indigenous communities and Indigenous organizations, to support the following activities:
     • feasibility assessments and negotiations for 10 new national parks, up to 4 freshwater national marine conservation areas and 2 cultural landscapes, which could add up to 303,000 km2 (3%) to Canada’s network of conserved areas;
     • creation or enhancement of new or existing urban parks as well as new corridors and/or recognition of existing ones in accordance with the Canadian criteria for Ecological Corridors;
     • establishment of 30 to 35 new Indigenous Guardians programs and develop capacity for new Guardians programs at Parks Canada places;
     • recovery of Priority Species (Southern Mountain Caribou).
   • These are ongoing contributions with funding levels that vary from year to year based on anticipated requirements.
2. Contributions in support of the National Cost-Sharing Program for Heritage Places - $1 million
   • Parks Canada’s National Cost-Sharing Program for Heritage Places (“the Program”) helps ensure the protection of heritage places that have been formally recognized by the Government of Canada, but that it does not administer. The Program supports the Parks Canada Agency's mandate of protecting and presenting places of national historic significance, and fostering the public's understanding, appreciation and enjoyment of these places in ways that ensure their commemorative integrity for present and future generations.
   • In addition to the on-going amount identified in the Main Estimates, the Agency will be reallocating another $1 million in 2022-23 to this program bringing the total funding available to $2 million.

PCA’s 2022-2023 Main Estimates

Main Estimates – 2022-2023: Parks Canada Agency