Nature Smart Climate Solutions Fund

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Embracing the power of nature to support healthier families and more resilient communities is one of the five pillars of Canada’s Strengthened Climate Plan.

Climate change and the loss of biodiversity are connected and nature-based solutions are required to tackle these crises. Canada is committed to nature-based solutions to build resilience and help Canada meet its 2030 and 2050 climate change objectives.

Nature-based solutions are actions to conserve, sustainably manage, and restore ecosystems. 

Natural Climate Solutions Fund

To address climate change and biodiversity loss, the Government of Canada is establishing the Natural Climate Solutions Fund which will invest $4 billion over the next ten years: 

Nature Smart Climate Solutions Fund

The Nature Smart Climate Solutions Fund (NSCSF) is a $631 million, ten year fund to support projects that restore and enhance wetlands, peatlands, and grasslands to store and capture carbon.

NSCSF activities will focus on three main program objectives to effectively sequester carbon: restoring degraded ecosystems; improving land management practices, especially in agriculture, forestry, and urban development sectors; and conserving carbon-rich ecosystems at high risk of conversion to other uses that would release their stored carbon. Funds will also support monitoring and reporting of greenhouse gas emission reductions.

In the fall of 2021, ECCC will launch an application-based process for those projects that will be starting in 2022-2023. Given there will be multiple application-based funding opportunities over the ten year life of this initiative, the information below is subject to change.

While the primary objective of the NSCSF initiative is to reduce Canada’s net GHG emissions, projects supported under all streams must also provide benefits for biodiversity and should support benefits for human well-being.

Note

Projects that are required by law, regulation or policy (e.g., mitigation requirement of a development/project approval) are not eligible for funding under the NSCSF Initiative.

Expected results

Projects under this initiative will contribute to the following departmental results:

Eligible recipients

Provinces, territories, Indigenous organizations, governments and groups, municipal and local governments, academic institutions, individuals, for-profit organizations, including industry associations, and non-governmental organizations.

Eligible projects

Funding will be made available under 3 streams of work:

Indigenous partnerships

The NSCSF initiative will support Indigenous organizations and communities to undertake Indigenous-led, on-the-ground projects for ecological restoration, as well as improved management and conservation of wetlands, grasslands, agricultural lands and forests that result in reduced and captured GHG emissions. ECCC will make funding available to Indigenous partners to deliver projects to build capacity and advance Indigenous efforts on natural climate solutions, using a blended approach that includes directed and application-based funding through existing mechanisms such as Indigenous Guardians.

Place-based actions

This stream will support on-the-ground ecosystem restoration and enhanced land management activities to increase carbon sequestration and the conservation of ecosystems to increase carbon sequestration. In addition, projects for the conservation of ecosystems that store significant amounts of carbon but are at high risk of degradation or loss from conversion to other land uses, or which have been degraded, but could sequester and store significant carbon following restoration.

Sector-based policy

This stream will engage regulators and representatives of the forestry, agriculture, urban development, mining, and oil and gas sectors. These projects will update, develop and/or implement policies, programs and tools to reduce emissions from ecosystem conversion and over the long term, enhance land management to reduce GHG emissions and optimize carbon sequestration and storage through NBS practices.

Application instructions

Details on eligibility, evaluation, selection criteria and application instructions will be available once the open call for applications is released in the fall of 2021.

Contact us

For questions related to the implementation of the Indigenous component of NSCSF, please contact ec.gardiensautochtones-indigenousguardians.ec@canada.ca.

For all other questions, please contact us at ec.fscan-nscsf.ec@canada.ca.

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