Mobilizing partners for additional investments in climate action
Canada’s international climate finance goes beyond the $2.65 billion commitment.
Through public and private channels and institutions, Canada collaborates with international partners to leverage investment in climate action.
Along with these 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.
Canada works closely with donor countries to encourage innovative and cost-effective solutions to sustainable development challenges.
Mobilizing private capital for climate action
Public finance alone will not meet the level of investment needed to address climate change. The private sector needs to play a key role in reaching the investment levels required to address climate change and help build low-carbon and climate-resilient communities.
Canada is using public finance and working with multilateral development banks and bilateral partners to help remove barriers to private investment, such as financial and technical risks. By doing so, this helps attract and mobilize climate investments from the private sector towards developing countries.
Canada is using concessional finance to unlock private investments in developing countries. This helps to mobilize new streams of financing for underserved private sector partners.
To make this happen, Canada established Canadian facilities at multilateral development banks. These facilities are designed to catalyze private sector investment that would not otherwise happen due to market barriers.
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Promoting climate action is an important element of Canada’s approach to international development assistance. Environmental sustainability and climate change considerations are increasingly integrated across Canada’s development programs. |
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Canadian provinces and territories support a wide variety of development projects that address climate change and are playing an increasingly important role in sustained and scaled-up climate finance flows. |
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Multilateral development banks (MDBs) help to reach climate finance goals and to transition towards low-carbon sustainable development. Most MDBs have made significant pledges to scale up climate finance and to better integrate climate considerations across their activities. Canada provides core support to MDBs, which supports action on climate change on a global scale. |
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Canada’s development finance institution, FinDev Canada, invests in climate change mitigation and adaptation as one of its three priority sectors. Launched in 2018 with an initial capitalization of $300 million, FinDev Canada supports private investments through the use of loans, guarantees and equity in developing countries where access to capital is limited. |
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Export credit agencies contribute to the global goal to address climate change by spurring investment in climate activities around the world. Export Development Canada has contributed to global efforts to address climate change by investing in developing countries, namely in the renewable energy and energy efficiency sectors. |
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Canada’s climate finance is helping to attract and mobilize climate investments from the private sector and scale up investments in developing countries consistent with a pathway towards low-emission, climate-resilient development. |
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