With climate finance front and centre at COP27, Canada helping to respond to priorities of developing countries

November 9, 2022 – Sharm El-Sheikh, Egypt

Climate change is a global crisis that affects us all, but not all equally. Developing countries are issuing urgent calls for help in combating the worst impacts for which they are the least prepared. Helping the poorest and most vulnerable countries is a top priority for Canada and the Egyptian COP27 presidency.

Today, the Honourable Steven Guilbeault, Minister of Environment and Climate Change, on behalf of the Honourable Harjit S. Sajjan, Minister of International Development and Minister responsible for the Pacific Economic Development Agency of Canada, announced a number of practical initiatives totaling $24 million that respond directly to the needs and priorities of developing countries. The projects, funded through Canada’s $5.3 billion International Climate Finance Commitment, directly respond to the needs and priorities of developing countries in three critical areas: loss and damage, access to climate finance, and climate governance:

Loss and damage

• $7 million to the Global Shield Financing Facility will help make climate-vulnerable countries more resilient and protect the lives and livelihoods of the most vulnerable, including women and girls. This investment supports the Global Shield against Climate Risk to strengthen the Global Climate Risk Finance and Insurance Architecture. An additional $1.25 million will provide early support to establish the Santiago Network, designed to help developing countries access technical assistance to avert, minimize and address loss and damage.
• The Global Shield is an initiative guided by the G7 and the Vulnerable Twenty (V20) Group that aims to provide a coordinated approach to climate risk and prevention. This was identified as a priority for developing countries who are calling for the protection gap against climate-related losses and damages to be closed.

Access to climate finance

• $5 million to the Climate Finance Access Network will expand its work with climate-vulnerable countries. The Climate Finance Access Network has made great strides in building developing countries’ capacity to structure and securing public and private finance for priority climate mitigation and adaptation investments. This builds on Canada’s previous contribution of $9.5 million to launch the Climate Finance Access Network in 2020.
• The Climate Finance Delivery Plan Progress Report identified access to climate finance as a key area of focus. It found that while more needs to be done, most developed countries are committed to working further with multilateral development banks and climate funds to make progress on increasing harmonization and reducing barriers to access.

Climate governance

• $5 million will support the Initiative for Climate Action Transparency by building real, institutional capacity for developing countries in advancing their Nationally Determined Contribution implementation and transparency. A renewed contribution of $6 million to the Climate Technology Centre and Network will promote the accelerated development and transfer of climate technologies for energy-efficient, low-carbon, and climate resilient development.

In 2021, Canada doubled its climate finance commitment to $5.3 billion over five years (2021–2026). This commitment more than doubles the provision of funding toward adaptation to a minimum of forty percent, which is in line with the objectives set by the Glasgow Pact.

Last month, at the behest of the international community, Canada and Germany released the Climate Finance Delivery Plan Progress Report, highlighting what developed countries have been doing this year to deliver on the collective US$100 billion goal. The report reaffirmed a commitment to transparency, and clearly detailed where more work is needed. Canada remains steadfast in its commitment to work with others to reach the US$100 billion goal as soon as possible and through 2025.

Across its climate finance contributions, Canada continues to help developing countries better address climate change and adapt to its impacts. Over the next five years, Canada will focus its international climate finance on four main thematic areas: clean energy transition and coal phase-out, climate-smart agriculture and food systems, nature-based solutions and biodiversity, and climate governance.