Canada’s Climate Change Finance for Developing Countries

Climate change and biodiversity loss are global challenges that do not respect borders. They pose existential threats and can lead to instability, conflict, starvation, and pandemics. The World Health Organization has highlighted that climate change affects human lives and health in various ways. It jeopardizes essential elements of good health such as clean air, safe drinking water, nutritious food supply, and safe shelter. Climate change can undermine decades of progress in global health and has devastating effects on communities and individuals worldwide.

Developing countries are particularly vulnerable to the impacts of climate change, yet they often lack the resources to cope with its consequences. In response to the global call for increased climate ambition, Canada has taken significant steps to reduce the effects of climate change. In 2021, Canada announced a doubling of its international climate finance from $2.65 billion (2015-2021) to $5.3 billion (2021-2026).

To further support developing countries in transitioning to low-carbon, climate-resilient, nature-positive, and inclusive sustainable development, Canada has implemented a new framework for climate finance. This framework includes increasing the proportion of grant funding to 40%, allocating a minimum of 40% of funding to climate adaptation projects, and allocating a minimum of 20% of funding to projects that leverage nature-based climate solutions and contribute to biodiversity co-benefits. Canada also remains committed to supporting women’s leadership and decision-making in climate action, with at least 80% of climate projects integrating gender equality.

Canada’s climate finance framework is the result of extensive consultations with various stakeholders, including over 300 organizations from 20 countries. The framework focuses on four thematic areas: Clean Energy Transition and Coal Phase Out, Nature-based Solutions and Biodiversity, Climate-smart Agriculture and Food Systems, and Climate Governance.

In preparation for the COP26, Canada, together with Germany, co-led the delivery plan for mobilizing at least US$100 billion per year through 2025 to support climate action in developing countries. Canada has also signed the Statement on International Public Support for the Clean Energy Transition and will prioritize support for clean technology while phasing out direct public support for the international unabated fossil fuel sector by the end of 2022.

Canada remains committed to working with domestic and international partners to address climate change and promote sustainable, resilient, and inclusive global economic development. For more information, you can visit the official website

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