Canada recognizes that developing countries, particularly the poorest and most vulnerable, are the hardest hit by climate change. Many have limited capacity to prevent and cope with the consequences of climate change—like severe weather, drought, and flooding. Transformational financial investments are required to help communities around the world better address climate change and adapt to its harmful consequences.
To that end, Canada is providing $2.65 billion over five years (2016–2021) in climate finance to help developing countries reduce greenhouse gas emissions, increase resilience, and transition to low-carbon economies. It is Canada’s obligation under the Paris Agreement to provide financial resources to assist developing countries, while aiming to collectively reach the goal of mobilizing from public and private sources US$100 billion a year, by 2020, for climate action in the developing world.
Canada is working with a wide range of partners, including philanthropists and institutional investors, to leverage funding and encourage innovative climate action. To date, Canada has announced over $1.7 billion worth of initiatives, including the following:
- $275 million to the World Bank for the Energy Transition and Coal Phase-Out Program
Canada’s pledge of $275 million helped create this program to assist developing countries in Asia slow coal production, while scaling up energy efficiency and low-carbon energy alternatives. Canada, along with the World Bank and the United Kingdom, is providing financial, technical, and advisory assistance for developing countries that have decided to transition away from coal and accelerate the uptake of cleaner sources of energy. Canada’s commitment will support the deployment of solar and battery storage; geothermal and offshore wind development; coal-plant closure; and improvements in energy efficiency, particularly in buildings and cooling.
- $223.5 million to the Canadian Climate Fund for the Private Sector in the Americas
In partnership with the Inter-American Development Bank and IDB Invest, this initiative will help countries in the Americas and the Caribbean region adapt to and mitigate the effects of climate change. The second phase of the Canadian Climate Fund for the Private Sector in the Americas is expected to leverage up to US$1 billion in private-sector investments for renewable energy, sustainable agriculture, and forestry to help the most vulnerable in the region, especially women and girls, adapt to climate change. This initiative is also expected to reduce greenhouse gas emissions by 25 million tonnes.
- $2 million for the Accelerator for Women Climate Entrepreneurs
This contribution will offer mentorship support in business and financial management and propose solutions to address the key barriers facing women-owned businesses in the delivery of climate-smart goods and services in developing countries.
- $4 million to the National Adaptation Plan Global Network for climate capacity building in developing countries
Through the National Adaptation Plan Global Network, Canada’s support will empower some of the most vulnerable developing countries to produce effective, homegrown solutions to adapt to the effects of climate change, including by building climate change adaptation considerations into their policy, planning, and decision-making.
- $60 million to establish a renewable energy in Small Island Developing States program at the World Bank
These funds will assist the expansion of clean-energy systems and infrastructure, the improvement of energy access for women and girls, and the provision of training and employment opportunities for women in non-traditional, sustainable-technology sectors, in Small Island Developing States.
- $100 million for climate risk insurance
This initiative will support the expansion of climate risk insurance coverage in climate-vulnerable countries, strengthening these countries’ ability to rebuild better and faster following natural disasters like hurricanes or floods.
For more information, visit Canada's international climate finance.
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