Canada's international climate finance

Supporting ambitious climate action abroad

Climate change is a global challenge that requires global solutions. Developing countries, particularly the poorest and most vulnerable, are the hardest hit by climate change. Many face capacity constraints to mitigate and cope with the consequences of climate change, like severe weather, drought and flooding. Transformational financial investments are needed to help communities around the world better address climate change and adapt to its harmful consequences. International climate finance plays a key role in achieving this.

Developed countries made a commitment to collectively mobilize US$100 billion each year in international climate finance to developing countries. At the 2021 G7 Leaders’ Summit, Canada announced a doubling of its international climate finance commitment, to $5.3 billion to support developing countries to combat climate change, while striving to address biodiversity loss around the world. This commitment builds on the successes of Canada’s $2.65 billion commitment (2015-2021).

Important milestones

2010

2015

2021

2022

2023

Canada’s approach to international climate finance

Canada's $5.3 billion international climate finance commitment focuses on four main areas:

This aims to help low and middle-income countries already affected by climate change to transition to sustainable, low-carbon, climate-resilient, nature-positive and inclusive development. Learn more about Canada's approach to international climate finance.

Long description for targets and thematic areas

The three targets are:

  • 40% towards adaptation
  • 80% of projects integrate gender equality
  • 20% for nature-based solutions and biodiversity co-benefits

The four thematic areas are:

  • Clean energy transition and coal phase-out
  • Climate-smart agriculture and food systems
  • Nature-based solutions and biodiversity
  • Climate Governance

Impact of Canada's climate finance under the $2.65 billion commitment

Canada measures the impact of our climate finance support against the following indicators: amount of private finance mobilized through public sector investments; greenhouse gas (GHG) emission reductions resulting from our funding to international initiatives; and number of people in developing countries who benefited from Canada’s adaptation finance. Below are the most recent cumulative results generated through Canada’s climate finance support.

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Long description for Impact of Canada's climate finance

A graphic showing that Canada’s $2.65B climate finance commitment has reduced or avoided over 223.7 megatonnes of GHG emissions, provided 8.04 million people with increased resilience to climate change, and established 155 projects supporting developing countries to mitigate and adapt to climate change.

Success stories

Canada’s climate finance has already been successful in developing countries. Read more success stories from Canada’s climate financing.

Climate Risk Early Warning Systems (CREWS)

Multi-hazard early warning systems protect lives and livelihoods, particularly in the face of extreme weather events. By supporting the Climate Risk and Early Warning Systems (CREWS) initiative, Canada is helping to bridge the early warning capacity gap in least developed countries (LDCs) and small-island developing states (SIDS), to strengthen the resilience of the most vulnerable.

Read more on Climate Risk Early Warning Systems (CREWS).

Two young children walking along a body of water.

Canada’s climate finance commitment and funding beyond the commitment for 2015-2021

Canada’s international climate finance to developing countries goes much further than its core public commitment. From 2015 to 2021, Canada has contributed over $6.8 billion in international climate finance to developing countries from a variety of sources.

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Long description for Canada’s climate finance commitment and funding beyond the commitment for 2015–2021

A bar graph displaying Canada’s climate finance commitment funding alongside all other sources of funding from 2015–2021. From 2015–2021, Canada has provided $2.65 billion to date from its public climate finance commitment. From 2015–2021, Canada has provided $4.2 billion from all other sources of funding. In total, Canada has provided over $6.8 billion in climate finance from 2015–2021 from all sources.

Canada's climate finance by source

Canada’s doubling of its climate finance commitment will help to scale up our total climate finance, but we are making effort across the government to scale up action towards low-carbon, climate-resilient development through all Canadian sources of climate finance. Canada’s climate finance includes support from sub-national governments, private finance mobilized through public finance, core contributions to multilateral development banks, climate relevant financing by Export Development Canada (EDC) and Canada's Development Finance Institute (FinDev Canada), and other international assistance with a climate component. Learn more about Canada’s mobilizing partners for investments in climate action.

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Long description for Canada's climate finance by source

A bar graph showing that Canada’s climate finance provided from 2015 to 2021 by each contribution source: private finance mobilized, climate relevant support through FinDev Canada, climate share of core contributions to multilateral development banks, climate relevant support through Export Development Canada, international assistance with a climate component (including provincial and municipal support) and public climate finance commitment. In 2015: $192 million; in 2016: $657 million; in 2017: $1.16 billion; in 2018: $1 billion; in 2019: $957 million; in 2020: $1,37 billion; in 2021: $1,53 billion.

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