Canada’s $2.65 Billion International Climate Finance Commitment
Over 2015-2021, the Government of Canada delivered $2.65 billion in international climate finance to developing countries. Canada’s climate finance commitment prioritized climate change adaptation and mitigation efforts, the mobilization of private sector capital for climate action, and the provision of support to the United Nations Framework Convention on Climate Change (UNFCCC) institutions and mechanisms.
Measuring Canada’s Impact
Over 228 megatonnes
of greenhouse gas (GHG) emissions reduced or avoided
6.6 million people
with increased resilience to the effects of climate change
supporting developing countries to mitigate and adapt to climate change
Adaptation and Mitigation
Canada’s $2.65 billion climate finance commitment allocated 59% of funds to mitigation, 24% to adaptation, and 17% to crosscutting programming. Crosscutting programming advances both mitigation and adaptation efforts simultaneously. For example, the Green Climate Fund (GCF) is considered crosscutting because the programming consists of interventions for both climate change adaptation and mitigation.
A pie chart showing Canada’s international climate finance was allocated 59% to mitigation, 24% to adaptation, and 17% to crosscutting programming.
Over 2015-2021, Canada provided important international climate finance support to the poorest and most vulnerable countries. Sub-Saharan Africa, Latin America and the Caribbean, and Asia-Pacific each received approximately one third of funding.
A pie chart showing Canada’s international climate finance geographic distribution, with 35% going to Sub-Saharan Africa, 31% to the Americas, 29% to Asia-Pacific, 4% to Europe and 1% to global initiatives.
Programming by Sector
Canada supported developing countries’ transition to low-carbon and climate-resilient economies. This support includes funding for clean and renewable energy systems, environmental policy and economic instruments, environmental training and research, climate-smart agriculture, sustainable forestry, and disaster risk management.
A pie chart showing Canada’s international climate finance delivery channels, with 47% going to Energy, 26% going to general environment protection, 15% going to Agriculture, 6% going to Forestry, 2% going to Water and Sanitation and 4% going to other multisector aid.
Canada delivered its climate finance commitment through a mix of bilateral and multilateral partnership to help address the unique needs of developing countries. Bilateral partners are often well positioned to support community-level climate action. Multilateral development organizations are trusted partners because of their reach and scope. They can mobilize additional public and private resources by reducing the risks of investing. Over 2015-2021, Canadian facilities at multilateral development banks (MDBs) have been established to catalyze important private sector investments in developing countries.
A pie chart showing Canada’s international climate finance programming sectors, with multilateral development banks (MDBs) and Canadian climate funds at MDBs representing 54%, Multilateral Trust Funds representing 19%, United Nations agencies representing 17%, Canadian civil society organisations representing 4% and other channels representing 7%.
Beyond Canada’s $2.65 Billion Climate Finance Commitment
Along with partners, Canada plays an important role in providing sustained and scaled-up climate finance, working to make all financial flows consistent with the objectives of the Paris Agreement.
To this end, Canada is committed to doing its part in advancing the Paris Agreement’s collective goal for developed countries to jointly mobilize US$100 billion annually from a wide variety of sources.
From 2015 to 2019Footnote 1 , Canada provided approximately $4 billion to developing countries for climate action. This support includes:
- $1.28 billion from the Government of Canada’s $2.65 billion climate finance commitment;
- $549.12 million from regular international assistance projects with a climate change component, including Canadian provincial and municipal government support;
- $821.9 million from the climate share of core contributions to multilateral development banks;
- $882.4 million of climate relevant export credits from Export Development Canada (EDC); and,
- $91.94 million of climate relevant transactions by FinDev, Canada’s development finance institution, for climate-related investments.
The remaining $1.37 billion from the $2.65 billion was provided in 2020-2021. Canada’ climate finance includes $394.79 million mobilized in private climate finance from 2017 to 2019 through Canada’s public investments in developing countries.
Using public sector contributions to leverage private sector investment is key to reaching international climate goals. Canada is working collaboratively with a number of multilateral organizations to provide innovative financing aimed at removing investment risks to the private sector. Specifically, Canadian climate finance facilities in the MDBs were designed to generate additional private sector investments for climate action.
A pie chart showing Canada’s total $4.02 billion contribution for climate action in developing countries from 2015 to 2019;
- The $2.65 billion public finance commitment representing 32%
- Climate relevant support through Export Development Canada representing 22%
- Climate share of core contributions to multilateral development banks representing 20%
- International assistance with a climate component representing 14%
- Private finance mobilized representing 10%
- Climate relevant support through FinDev Canada representing 2%
Canada’s $2.65 billion commitment to climate finance prioritized three key areas to help advance the goals of the Paris Agreement and pursue ambitious climate action abroad. The examples below illustrate these key areas. A complete list of Canada’s supported initiatives is also available.
Adaptation support for the poorest and most vulnerable
Canada’s support for adaptation action increases the resilience of the poorest and most vulnerable countries.
Ambitious mitigation action
Canada’s support for mitigation action supports developing countries to reduce their emissions and transition to clean, renewable energy.
Increasing Private Sector Mobilization for Climate Action
Canada’s climate finance is mobilizing private-sector capital for climate action.
Canada’s climate finance is fostering real changes in communities around the world. Its $2.65 billion investment over 2015-2021 highlights Canada’s dedication to ambitious climate action and reaching the goals of the Paris Agreement. Through its climate finance, Canada is driving real-life on-the-ground results that are changing the lives of millions of people in developing countries.
Canada’s Feminist International Assistance Policy
Canada’s international climate finance investments are in-line with our international development goals, such as promoting gender equality and empowering all women and girls. Discover how Canada integrates gender considerations in its climate-related planning, policy-making, and financing.
With its $2.65 billion international climate finance envelope, Canada has proven to be a trusted partner that supports ambitious climate action to reduce global greenhouse emissions and help developing countries transition to low-carbon economies, while also helping the poorest and most vulnerable communities build resilience to the effects of climate change. Canada has shown that prioritizing climate action and gender equality efforts produces a ripple effect, supporting the most urgent Sustainable Development Goals as well as the commitments made in the Paris Agreement.
While the need to slow emissions to keep temperature increases stable in the long term is still critically important, developing countries are increasingly experiencing the effects of climate change now. Canada’s openness to feedback from its partners and international civil society demonstrates leadership and dedication to addressing these evolving priorities of climate action.
Canada remains committed to meeting the international goal of mobilizing US$100 billion to support climate action in developing countries.
In June 2021, the Government of Canada doubled its previous commitment to international climate finance to $5.3 billion over the next five years (2021-22 to 2025-26). At COP26, Canada announced its support for a number of promising climate initiatives in developing countries.
Canada’s increased commitment to climate finance recognizes that urgent action is needed to address the interconnected crises of climate change and biodiversity loss, which disproportionally affect the poorest and most vulnerable. Learn more about Canada’s approach to implement its $5.3 billion international climate finance envelope.
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