Canada’s climate finance for developing countries

Global Affairs Canada

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Canada is committed to providing climate finance to developing countries, recognizing that climate change poses a significant threat to health and wellbeing. It is estimated that climate-related factors could lead to an additional 250,000 deaths annually from malnutrition, malaria, diarrhea, and heat stress.


To support global efforts in addressing climate change, Canada has pledged to double its international climate finance to $5.3 billion by 2021. This increased funding will prioritize grants and contributions, with 40% allocated to climate adaptation projects. Moreover, Canada aims to integrate gender equality into at least 80% of climate initiatives.


Canada's climate finance will target four main areas: clean energy transition, nature-based solutions and biodiversity, climate-smart agriculture and food systems, and climate governance. Through these focus areas, Canada aims to facilitate the transition to low-carbon economies in developing countries and build resilience in the face of climate change impacts.


In addition to financial commitments, Canada is actively involved in partnerships and collaborations to combat climate change. It co-led the delivery plan for climate action in developing countries and signed the Statement on International Public Support for the Clean Energy Transition. Canada will continue to work closely with domestic and international partners to address climate change comprehensively.


Canada has a feminist approach to environment and climate action, recognizing the transformative power of women and girls in driving climate action. The country's climate finance commitment of $5.3 billion aims to support the poorest and most vulnerable communities by leveraging the expertise and knowledge of all stakeholders, including Indigenous Peoples, grassroots organizations, women's rights organizations, and local communities.


To ensure environmental sustainability, Canada's climate finance undergoes an environmental integration process to avoid harm to the environment and protect development gains. The commitment to applying a nature-positive screen to all project proposals underscores Canada's commitment to biodiversity conservation and enhancement.


The funding mechanisms for Canada's international climate finance commitment consist of 40% grants and contributions, while the remaining 60% is designated as Unconditionally Repayable Contributions (URCs). URCs act as an innovative finance instrument, encouraging private sector investments in low-carbon activities, primarily in middle-income and lower-middle-income countries.


Projects seeking funding must demonstrate their alignment with climate change adaptation or mitigation as the principal objective, integrate gender equality, and adhere to defined coding requirements. Biodiversity promotion and protection, as well as climate-smart agriculture and food systems, are key considerations for project eligibility.


Canada's international climate finance program is guided by the goal of advancing feminist climate action, positioning Canada as a leader in global climate action, mobilizing private sector finance, leveraging expertise and innovative solutions, and fostering diverse partnerships to address climate change.

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