Canada is contributing a total of $2.65 billion to climate finance initiatives and programs in developing countries. The goal is to ensure sustainable growth and use of natural and environmental resources around the world. The federal government works with institutional investors and philanthropists to ensure that states can adequately address climate change and pollution.
Canada supports climate initiatives in countries such as Bosnia and Herzegovina, Armenia, Albania, Serbia, and Georgia. In Albania, for example, the IFC-Canada Climate Change program extended a line of credit to a financial institution committed to offering sustainable energy financing. The goal is to offer energy efficiency funding to medium-sized, small, and corporate customers. In Serbia, the authorities of the City of Belgrade implemented a public-private partnership project to build waste treatment facilities.
Caribbean and Latin America
Canada is involved in climate finance initiatives in a number of countries, including Brazil, Bolivia, Chile, Mexico, Colombia, and Costa Rica. A program to adapt community-based water supply and respond to changing climate has been implemented in Nicaragua, Guatemala, and Costa Rica. The project examined the impact of climate change on water supply and availability in the three countries. The emphasis was on best practices and ways in which community-based organizations can contribute to water security in peri-urban and rural areas. Following a severe earthquake in Haiti in 2010, Canada, as part of the World Meteorological Organization provided assistance to rebuild Haiti’s hydrological and meteorological capabilities. The focus was on infrastructure development, conservation and management of natural resources, agriculture, and risk management. Canada also contributed $4.9 to assist efforts at reducing the impact of natural disasters through water conservation, management of forestry and agriculture resources, and protection of watersheds.
The Canadian government supports projects across Africa and in Egypt, Congo, Central African Republic, and Sudan to name a few. Canada offered support to the Congo Basin Forest Fund in an effort to mitigate climate change and reduce poverty through slowing and reversing deforestation in the area of the Congo Basin. Canada also provided $2 million to the Congo Basin Forest Fund to facilitate conversation efforts and the implementation of forest management projects.
In Cameroon, the government offered support for the Eco Agricultural Business for Changes in Climate initiative. The goal is to ensure improved availability and access to safe and nutritious food and support food producers Eastern and Southern Cameroon. The initiative aims to ensure that businesses are sustainable and profitable and targets aboriginal communities, youth, women, and other vulnerable groups.
In Rwanda, Canada extended $23.2 million to ensure access to safe, nutritious, and sufficient food in communities that are vulnerable to climate change, especially those in returnee and refugee areas in the Kayonza and Gatsibo districts. Finally, in Uganda, Canada provided support and advisory for the timely structuring and deployment of a hydropower facility to be constructed and operated under a public-private partnership agreement.
Funding Channels – Smart Borrowing
Financing is mostly available through government aid agencies and multilateral and bilateral financial institutions, with both private and public entities raising and distributing funds. Bilateral projects are financed by Global Affairs Canada and Environment and Climate Change Canada. Examples of multilateral funds are the Global Environmental Facility (GEF) and the Green Climate Fund. GEF offers funding and support to multiple partners, including research institutions, private sector companies, civil society organizations, and government agencies. The funds are channeled to both countries in transition and developing economies to meet their obligations under international agreements and conventions. The World Bank acts as a trustee that monitors implementation, prepared financial reports, and distributes funds. There are also multilateral development banks such as the Inter-American, Asian Development, and World Bank. The main types of delivery instruments are market-rate and concessional loans and grants. Public and private/public investments are also channeled to projects in developing countries.