COP27 summary of outcomes

At the 27th United Nations Climate Change Conference (COP27), Canada and nearly 200 other countries reached agreement on the next step forward for climate ambition under the Paris Agreement. Canada also announced several new initiatives to advance greater global ambition on climate change, including on methane emissions and new work on the Prime Minister’s global carbon pricing challenge.

Summary of negotiations

At COP27, Canada fought hard to maintain the global resolve to limit the temperature increase to 1.5°Celsius, to mitigate the worst effects of climate change. As part of this resolve, countries agreed to accelerate efforts toward phasing out of inefficient fossil fuel subsidies and the phase down of unabated coal power—still the single largest sources of carbon dioxide emissions.

Canada was an early advocate for the need for COP27 to make progress on the issue of loss and damage, and to include it on the formal agenda. At COP27, Canada rallied together with developed and developing nations to establish new funding arrangements for assisting developing countries that are particularly vulnerable to the adverse effects of climate change, including to establish a fund for responding to loss and damage. Further work will be undertaken to elaborate these funding arrangements over the coming year.

Climate Finance Delivery Plan Progress Report

Canada was proud to have released the Climate Finance Delivery Plan Progress Report with Germany ahead of COP27. This Report was produced, at the request of COP26 President Alok Sharma, to provide further transparency on developed countries’ commitment toward the goal to jointly mobilize USD$100 billion per year in climate finance. Canada remains steadfast in its commitment, working in partnership with other developed countries, to reach the goal as soon as possible and through 2025. At COP27, the Report was welcomed by many stakeholders, including the COP27 presidency, as an important demonstration of goodwill and commitment to the goal.

$84.25 million to help developing countries fight climate change

At COP27, Canada announced support for developing countries in efforts to both mitigate and adapt to climate change. Through its $5.3 billion climate finance commitment, and through other funding envelopes, Canada announced several initiatives amounting to $84.25 million in funding including:

Clean Energy Transition and Coal Phase-Out

• $5 million for the Southeast Asia Energy Transition Partnership to support coal phase-out in Indonesia, the Philippines, and Vietnam.
• $5 million to the Organisation for Economic Co-operation and Development to support its Clean Energy Finance and Investment Mobilisation programthat helps emerging economies attract private sector investment in clean energy.

Loss and damage

• $7 million for Global Shield Financing Facility that helps provide a coordinated approach to climate risk prevention and response
• $1.25 million in early support to establish the Santiago Network that helps developing countries to avert, minimize, and address loss and damage.

Access to Climate Finance

• $5 million to the Climate Finance Access Network that helps developing countries build their capacity to structure and secure public and private finance for mitigation and adaptation.

Climate governance

• $5 million to support the Initiative for Climate Action Transparency that helps developing countries build capacity to advance their Nationally Determined Contributions (NDC) implementation and achieve their targets under the Paris Agreement.
• $6 million to the United Nations Climate Technology Centre and Network to provide technical assistance and capacity-building support to address climate technology needs in developing countries, with a focus on nature-based solutions and biodiversity.

Gender equality and inclusivity

• $2 million to support inclusivity within the United Nations Framework Convention on Climate Change (UNFCCC) process, by building capacity to enhance the leadership of women climate negotiators in developing countries and support the contributions of Indigenous Peoples to the UNFCCC.

Methane and Small Island Developing States

• $4 million to help Small Island Developing States in the Caribbean reduce methane emissions and to achieve their climate targets under the Paris Agreement. This program will be delivered in Belize, Grenada, Guyana, and Saint Lucia in partnership with the Global Methane Hub and the Center for Clean Air Policy.

Action on carbon pricing and clean energy

• $16 million for the World Bank’s Partnership for Market Implementation, which helps countries design and implement carbon pricing mechanisms aligned with their development priorities. The Partnership is a key initiative to help advance the goals of the Global Carbon Pricing Challenge and to help more countries realize the benefits of carbon pricing policies.
• $28 million to the Energy Access Relief Fund (EARF) to reduce the economic impact of COVID-19 on renewable, off-grid energy companies in Africa and Asia and their clients.

Progress on $1 billion to the Climate Investment Funds – Accelerating Coal Transition Program (CIF-ACT)

At COP26, Canada announced a $1 billion contribution to helping developing countries transition from coal-fired electricity to clean power as quickly as possible. This is part of Canada’s broader strategy on coal diplomacy and coal phase out, and aligned with the objectives of the Powering Past Coal Alliance.

Canada has made progress on the Accelerating Coal Transition program (ACT) under the Climate Investment Funds (CIF). Canada’s contribution, which represents approximately one-third of total current funding, directly supports coal-power retirement plans in India, Indonesia, the Philippines, and South Africa. In South Africa, funds approved in the ACT investment plan will result in the accelerated retirement of three coal-power plants and coal mines. At the same time, Canada’s financing will support community-driven development in the coal region of Mpumalanga, enabling new economic activities and contributing to a socially inclusive and gender equal transition. Canada’s support directly contributes to South Africa’s Just Energy Transition Partnership launched at COP26.

At the same time as COP27, at the G20 Leaders’ Summit in Bali, Canada and G7 partners secured a landmark Just Energy Transition Partnership (JETP) with Indonesia to mobilize an initial US$20 billion in public and private financing toward significant new targets and policies to limit coal power, increase renewables, and reduce energy sector emissions. Canada’s contribution to the CIF-ACT program will directly support this new JETP.

Canada rolled out the Global Carbon Pricing Challenge

Canada continues to advocate for clean energy and is calling for greater ambition toward the adoption of carbon pricing globally. At COP27, Canada and Chile rolled out the Global Carbon Pricing Challenge, which was launched by Prime Minister Justin Trudeau at COP26. New Zealand, Sweden, and the United Kingdom are among countries that are considering, or have already made, carbon pricing key to their approach in fighting climate change.

New initiatives and partnerships

Canada led and joined several strategic initiatives and partnerships to advance climate action:

Least Developed Countries Initiative for Effective Adaptation and Resilience

Canada joined the United States, Norway, Italy, the United Kingdom, Sweden, Ireland, Germany, Finland, Denmark, and Austria in the Partnership Compact for the Least Developed Countries (LDC) 2050 Vision, in support of the LDC Initiative for Effective Adaptation and Resilience. This initiative will put people and communities at the center of climate adaptation efforts; locally based and gender balanced initiatives such as this are at the core of Canada's approach to climate finance.

Ocean Conservation Pledge

Canada joined the Ocean Conservation Pledge, pledging to conserve or protect 30 percent of ocean water under Canadian jurisdiction by 2030.

Collaboration and global support to reduce oil and gas emissions

Canada and the United States agreed to continue to collaborate to further reduce methane emissions from their respective oil and gas operations. Significant opportunities exist to eliminate routine venting and flaring, enhance leak detection and repair, and address problems such as blow-downs and other potentially large releases. This work was welcomed by the International Energy Agency which commended Canada’s leadership on methane.

Canada signed on to a Joint Declaration on reducing greenhouse gas emissions from fossil fuels with the United States, the European Union, Japan, Norway, Singapore, and the United Kingdom in a commitment to taking rapid action to address the dual climate and energy security crises that the world faces. Canada supports efforts to accelerate global transitions to clean energy, as reliance on unabated fossil fuels leaves countries vulnerable to market volatility and geopolitical challenges.

In support of further emission reductions, Canada published a proposed framework outlining the main elements of the new oil and gas methane regulations. The Government of Canada reaffirmed its target to reduce the country’s oil and gas industry’s methane emissions by at least 75 percent by 2030 and committed to working with the sector to identify pathways to achieving net-zero emissions by 2050.

Net Zero Government Initiative

Canada joined the global Net-Zero Government Initiative, committing to achieve net-zero emissions from national government operations by no later than 2050. By using cleaner energy sources, moving to zero-emission vehicles (ZEVs), and pursuing green and resilient buildings and infrastructure, Canada is leveraging purchasing power to seize opportunities for both innovation and sustainable choices within its government operations.

Zero-Emission Shipping Mission Transport Canada greening initiatives

Canada announced the creation of a Canadian Green Shipping Corridors Framework. Through this initiative, Canada is building on the commitment made when signing on to the Clydebank Declaration at COP26, signaling its plan to support the establishment of green shipping corridors through zero-emission maritime routes between two or more ports.

Forest and Climate Leaders’ Partnership

Canada joined the Forest and Climate Leaders’ Partnership to prioritize the role of forests and land use in addressing climate change while building a healthy future for the planet. The Partnership delivers on a commitment made by over 140 world leaders at COP26 to halt and reverse forest loss and land degradation by 2030, while delivering sustainable development and promoting an inclusive rural transformation.

Egyptian COP27 presidency-led initiatives

Canada also supported three Egyptian COP27 presidency-led initiatives:

Initiative on Climate Action and Nutrition

Canada supported a new Climate Action and Nutrition initiative brought forward by Egypt (through the COP27 presidency) and the World Health Organization. This initiative aims to foster collaboration to accelerate transformative action to address the critical linkages between climate change and nutrition.

African Women’s Climate Adaptive Priorities

Canada supported the African Women’s Climate Adaptive Priorities to:

• Strengthen women’s participation in environmental governance by creating a connection that includes women ministers and relevant environment ministers.
• Increase opportunities for women in the just transition to a green economy, and promote gender-sensitive perspectives in adaptation and mitigation.
• Strengthen commitments for investing in women by increasing investments in capacity-building programs to support women in different fields.
• Enhance women’s access to financial support and build their capacities to prepare investable climate projects.
• Facilitate the exchange of experiences, enhance knowledge, and increase the provision of climate information technologies, along with data generation and research on women and climate change.

Nature-Based Solutions for Climate Biodiversity Transformation

Canada will partner with the Enhancing Nature-based Solutions for an Accelerated Climate Transformation (ENACT) initiative. ENACT was launched as part of the COP Presidency's official programme to foster international understanding and action on nature-based solutions. This initiative will coordinate global efforts to address climate change, land and ecosystem degradation, and biodiversity loss through nature-based solutions. This initiative will produce an annual State of Nature-Based Solutions Report to update COP28 and subsequent meetings on progress in implementing commitments.

Canada supports Climate and Environment Charter for Humanitarian Organizations

Canada signed as a supporter of the Climate and Environment Charter for Humanitarian Organizations. As a supporter, Canada is committed to working with its humanitarian partners to implement the Charter commitments including, responding to the humanitarian impacts of climate and environmental crises, and reducing the environmental impact of humanitarian action.

Bilateral meetings and ministerial engagements

Minister Guilbeault held bilateral meetings with a variety of Ministers and partners, including:

• Bilateral meetings with Ministers from the United Arab Emirates; South Korea; United States; European Commission, United Kingdom; China; Chile, Senegal, Australia, Palau; and Ukraine;
• A Canada-Japan Ministerial Dialogue;
• Bilateral meetings with counterparts from Multilateral Development Banks, including Kristalina Georgieva (International Monetary Fund) and Mafalda Duarte (Climate Investment Fund);
• Meetings with civil society leaders, including the Bezos Nature Fund philanthropies, Katherine Hayhoe and Laurence Tubiana;
• Bilateral meetings with provincial counterparts from Alberta and British Columbia; and
• Bilateral meetings with National Indigenous Organizations, youth and parliamentarians.