Ambitious mitigation action

To limit a temperature increase and prevent catastrophic climate change effects, it is critical that countries accelerate mitigation action. Developing countries share some common challenges and vulnerabilities that prevent them from investing in their energy transition to foster resilient and low-carbon economies.

Canada has supported developing countries to reduce their GHG emissions by investing in mitigation projects that advance the transition to clean, renewable energy, including by providing bilateral technical assistance to leapfrog to clean energy and technology.

Key mitigation projects under Canada’s $2.65 Billion Climate Finance Commitment

Energy Transition and Coal Phase-Out Program: In line with our leadership through the Powering Past Coal Alliance (PPCA), Canada provided $275 million to the World Bank to create the Energy Transition Program. This program assists developing countries, particularly in Southeast Asia, to phase out their dependence on traditional coal-fired electricity generation, while supporting energy-efficient and renewable-energy alternatives to power their fast-growing economies. The program also seeks to mobilize private sector capital for climate action and provide training and employment opportunities for women in clean-energy sectors.

Renewable Energy in SIDS: Canada provided $60 million to establish the Renewable Energy in Small Island Developing State (SIDS) Program, which supports the planning and construction of renewable energy infrastructure, energy efficiency and battery storage solutions. This includes $10 million to the World Bank to create the “Gender equality in the renewable energy sector in SIDS” initiative to increase employment opportunities for women and the productive use of energy for women’s enterprises and livelihood.

Climate and Clean Air Coalition (CCAC): Canada provided $10 million to the CCAC, an international initiative aimed at advancing efforts to reduce short-lived climate pollutants (SLCPs). SLCPs such as methane, hydrofluorocarbons (HFC), black carbon and tropospheric ozone cause significant near-term climate change. Canada is a CCAC founding partner and active participant in working-level initiatives to reduce SLCPs from the agriculture, transportation, cooling, and municipal solid waste sectors. These initiatives protect the environment and public health, promote food and energy security and address near-term climate change.

Multilateral Fund for the Implementation of the Montreal Protocol: In addition to its long-term institutional support to the Fund, Canada provided $7.58 million from its $2.65 billion commitment for the phase down of HFCs in developing countries. HFCs are potent greenhouse gases, some of which are 4,000 times more potent than carbon dioxide. The Multilateral Fund promotes reduction in the consumption and production of ozone-depleting substances in developing countries.

Support for the Implementation of Nationally Determined Contributions (NDCs)

Many developing countries lack the domestic technical and financial capacity to implement their NDCs and contribute to the long-term global goals of the Paris Agreement.

Since 2015, Canada has supported bilateral mitigation projects that reduce global GHG emissions and help developing countries to transition to low-carbon economies, consistent with the needs identified in their NDCs.

For example, Canada provided $17.19 million in bilateral support to Mexico, Chile, Côte d’Ivoire, Senegal and Vietnam, as well as for projects with the Pacific Alliance and West Africa, to help them implement their NDCs and put in place robust Measurement, Reporting and Verification (MRV) systems to track and report emission reductions. Support has included policy discussions, pilot and feasibility studies and finally larger targeted implementation projects to help ensure developing countries are equipped to develop and implement their NDCs. Strong MRV is key to reducing emissions and the implementation of country-driven climate priority actions that support the goals of the Paris Agreement.

Support for Market-Based Mechanisms

Carbon pricing is known to be a powerful tool to tackle climate change and is already a key pillar of Canada’s own domestic efforts to fight climate change. However, only 21.7% of global GHG emissions are covered by a carbon price and less than 4% of those are currently priced at levels consistent with reaching the temperature goals of the Paris Agreement. Canada supports the efforts of developing countries seeking to implement carbon-pricing mechanisms.

Partnership for Market Implementation (PMI): In partnership with the World Bank, Canada’s contribution of $5 million to the PMI assists developing countries in designing, piloting, and implementing domestic carbon pricing.

Transformative Carbon Asset Facility (TCAF): Canada provided $3 million for the TCAF at the World Bank. This initiative focuses on clean-energy projects and on lessons learned from carbon trading mechanisms to help developing countries find new ways to reduce their emissions.

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