Nature Smart Climate Solutions Fund - Emission Reductions Intake

Overview

The purpose of the Nature Smart Climate Solutions Fund - Emission Reductions Intake is to fund projects that will contribute to Canada’s 2030 Emissions Reduction Plan targets by:

• halting or reducing activities that cause greenhouse gas (GHG) emissions through land use or land cover change
• restoring areas into functional ecosystems that sequester and store carbon

These activities may occur directly as natural climate solutions that target specific sites to halt threats, restore degraded areas, improve the management of ecosystems or through the development and implementation of policies, programs, incentives or other tools that support emission reductions.

Eligible applicants

This intake is open to the following applicants:

• Domestic or international not-for-profit organizations, such as charitable and volunteer organizations, professional associations, and non-governmental organizations
• Domestic or international Indigenous organizations, governments, Individuals, boards, commissions, communities, associations, and authorities including:
  • Indigenous not-for-profit organizations
  • District councils, Chief councils, and Tribal councils
  • Indigenous research, academic, and educational institutions
  • Indigenous for-profit organizations
• Provincial and territorial governments, municipal, and local governments, and their agencies (e.g., Crown corporations)
• Domestic or international research, academic, and educational institutions
• Canadian individuals
• Domestic or international for-profit organizations, such as small businesses with less than 500 employees, companies, corporations, and industry associations
• Local organizations such as community associations and groups, senior and youth groups, and service clubs

Project eligibility

NSCSF funding is available for projects that fall into one or more of the following natural climate solutions:  

Avoided conversion 

These projects will help reduce the area (hectares) of ecosystems being converted to other land uses (e.g. from forest to agricultural, urban or industrial lands) annually by halting the human activities that cause GHG emissions (i.e. threats).  This fund will support projects that reduce the conversion of forest, wetlands, peatlands, and grasslands (native and tame, and perennial croplands).

These projects must demonstrate how they stop or reduce the transition of lands from a carbon-rich to a carbon-poor land use (i.e. threats).   

Priority will be given to projects that focus on areas that have threats with a moderate to high impact to ensure greater GHG benefits.    

Improved management 

These projects will focus on implementing improved management activities where the land cover and land use stay the same (e.g. forest remaining forest), but the area is managed so that there will be additional emission reductions compared to the current or projected management (e.g. reducing the volume of timber harvest). NSCSF will consider supporting targeted improved management natural climate solutions on agricultural lands and in forests only. Please refer to the Applicant Guide for additional information.

Eligible natural climate solutions for improving management of agricultural lands natural include:  

• increasing or stopping the loss of tree cover in the agricultural landscape (e.g. silvopasture, shelterbelts, trees among perennial crops)
• increasing the use of perennial cover in crop rotations

Eligible natural climate solutions for improving forest management include: 

• reducing the volume of timber harvest
• reducing or avoiding the harvest of older trees, older forests, primary forests and/or other high carbon stock areas
• extending the forest harvest rotation length or reducing the harvest frequency

Other improved forest management natural climate solutions may be considered depending on the ability to estimate potential emission reductions and the capacity of the applicant to collect the information needed to report on the GHG emission reduction outcomes. Examples of these practices include: 

• reducing the loss, or promoting the return, of species and structural diversity to enhance carbon sequestration and storage capacity
• reducing tree pest infestations

Restoration 

These projects will increase the area of ecosystems being restored annually to optimize their capacity to sequester and store carbon from now to 2050 (i.e. projects that return lands for the long term from a carbon-poor land use to one that is richer in carbon). NSCSF will only support restoration natural climate solutions that are cost effective and where the potential for emission reductions is supported by science undertaken in Canadian ecosystems.  

Restoration natural climate solutions that NSCSF will consider are:

• Restoring ecological and hydrological functions of wetlands (including tidal marshlands and inland mineral-based wetlands) and peatlands that were drained (or dyked) for agricultural use, harvested for peat, or compressed, drained or otherwise damaged by forest operations
• Restoring annual croplands to perennial crops, native or tame grasslands

Small scale tree planting may be included as part of implementing a restoration natural climate solution but should not be the project’s focus. 

NSCSF will support most projects associated with the natural climate solutions above, with the exceptions of those funded by other programs in the Government of Canada (i.e. Natural Resource Canada’s 2 Billion Trees and Agriculture and Agri-Food Canada’s Agricultural Climate Solutions) and those proven to not be cost effective or too uncertain. Projects can span over multiple ecosystems and enable more than one natural climate solution.

To implement eligible natural climate solutions, applicants are welcome to use any number of strategies to achieve the objectives of their project. Strategies could include, but are not limited to: 

• private land securement
• the creation of protected areas
• restoration program
• changing land use regulations or policies
• changing the financial incentives currently driving land use change
•  changing how people perceive certain actions, etc. 

Key characteristics of GHG emission reduction projects

Applicants will be required to demonstrate in their application that their project will achieve material, additional and permanent (durable) emission reductions or clearly set the foundation for future activities that will result in emission reductions in 2030 and last until at least 2050. To the extent possible, projects should also be designed to reduce the risk of leakage (i.e. that the GHG-causing activity may simply shift elsewhere). 

• Material GHG emission reductions: applicants are required to demonstrate that the project’s GHG emissions reductions are measurable and will contribute towards Canada’s GHG reduction targets
• Additional GHG emission reductions: applicants are required to demonstrate that the project will achieve GHG emission reductions beyond what would have occurred without the project
• Permanent and durable GHG emission reductions: applicants are required to demonstrate that the project’s emission reductions will last over time (i.e. long-lasting) and at least until 2050 and in perpetuity for area-based conservation type of projects (e.g. private land securement, protected areas, etc.)
• Minimizing activity shifting leakage: Activity shifting leakage can occur when GHG-causing activities that would have occurred on the project site simply move to another location outside of the project boundaries. While it is challenging to address leakage at the project level (and thus not mandatory), for policy/incentives/program projects, applicants will be asked to describe the risk of leakage and whether and how leakage was taken into consideration in the project design

Co-benefits

In addition to GHG emission reductions, the NSCSF will support projects that will provide co-benefits. Co-benefits are additional positive outcomes that would result from the project. Co-benefits include, but are not limited to: 

• Biodiversity benefits: Implementing natural climate solutions that would have a demonstrable biodiversity benefit, such as reducing the conversion of habitat for species at risk or migratory birds, or implementing management practices that would reduce threats to biodiversity, etc. 
• Contribution to area-based conservation targets: Implementing natural climate solutions that would contribute to Canada’s commitment under the new Kunming-Montreal Global Biodiversity Framework to conserve 30 percent of terrestrial lands and inland waters by 2030 (i.e. Target 3)
• Indigenous reconciliation: Implementing natural climate solutions in a way that would have a demonstrable benefit for reconciliation with Indigenous Peoples. These benefits must be defined by implicated Indigenous Peoples
• Human well-being: Implementing natural climate solutions that would have a demonstrable human well-being benefit such as adaptation to climate change, increased access to nature, provision of jobs, etc. 
• Support for underrepresented Canadians: Implementing natural climate solutions in a way that would support underrepresented Canadians. This could include creation of new jobs and ensuring that human well-being benefits are equitable

Note: Projects are not expected to provide all potential co-benefits.

Geographic location

Projects must be located within Canadian provinces and territories.  

Important funding information 

Funding will be allocated through contribution agreements for projects starting in fiscal year 2025-2026 (April 1, 2025 to March 31, 2026) with project length varying between 1 to 5 years. 

• The minimum funding for this intake is $75,000 per project 
• The maximum funding available for a single project for this intake is $50 million allocated over a minimum period of 3 years (or $15 million per fiscal year)
• For-profit organizations are limited to a maximum of $200,000 per fiscal year for a total of $1 million per project

NSCSF has a match funding objective of 1:1. 

For non-Indigenous applicants,1:1 matching contribution (from non-federal sources) is sought ($1 confirmed match for $1 NSCSF funding). Preference will be given to projects with contributions that are equal or more than 1:1. Match funding can be cash or in-kind for the full amount and must be directly related to the delivery of the project. Evaluation of the project will consider match funding.

Indigenous applicants are encouraged to describe any match funding they have contributed or obtained, but match funding will not be part of the evaluation of the project.  

Application Process

Using the contact information below, please contact your Canadian Wildlife Service (CWS) regional office to get access to the application documents. Interested applicants must fill out the Application Form and Supplemental Information Workbook and submit it to their regional CWS Office along with relevant supporting documentation. Only complete applications containing all the required documents will be reviewed. 

There is no deadline to apply. The intake will be open until all the funding for fiscal year 2025-26 is allocated. Applications will be assessed on a first-come, first-served basis with funding allocations proportionate to the GHG emission reductions potential and type of projects.

NSCSF will put a notice on its webpage once the intake is closed.

Project Evaluation

All applications will be evaluated on the following: 

• team expertise and capacity to lead the project
• clear and detailed project description, work plan and budget
• reasonable project timeline and budget
• support from key relevant partners
• likelihood of the project to generate material, additional and permanent/durable emission reductions in 2030 and until at least 2050 that are cost effective

If the project submitted does not meet the eligibility criteria or requires additional information to be further reviewed, the applicant will be notified. Applicants will then have the option to work on their project further and resubmit. 

The application review is expected to occur over a period of 4 to 6 weeks. For the first-come first-served allocation, applications will be dated only when they are deemed complete following the review. If the application is returned to the applicant, the review process would restart upon receipt of the new application. 

If the project is recommended for approval, the approval process can take up to 3 months, excluding statutory holidays.

Contact Us

Please contact the representative in your region for further information, to discuss any project ideas, or to obtain the application documents.

CWS regional offices

Northern: Nord.FSCAN-NSCSF.Northern@ec.gc.ca
Pacific: Pacifique.FSCAN-NSCSF.Pacific@ec.gc.ca 
Prairies: Prairies.FSCAN-NSCSF.Prairies@ec.gc.ca 
Ontario: Ontario.FSCAN-NSCSF.Ontario@ec.gc.ca 
Quebec: Quebec.FSCAN-NSCSF.Quebec@ec.gc.ca 
Atlantic: Atlantique.FSCAN-NSCSF.Atlantic@ec.gc.ca

For more generic questions, you may also reach out to ec.fscan-nscsf.ec@ec.gc.ca.