Question Period Note: International Climate Finance Commitments

International Climate Finance Commitments

• Climate change is a global challenge that requires a global solution.

• As part of Canada’s commitment to the Paris Agreement, the Government of Canada is delivering $2.65 billion over five years in climate finance to help developing countries—particularly the poorest and most vulnerable—mitigate and adapt to the adverse effects of climate change and transition to low-carbon, sustainable, resilient economies.

• Canada’s commitment is mobilizing private investments, strengthening cooperative approaches, and positioning our country as a leader in multilateral institutions.

• Canada is proud to be supporting initiatives that deliver concrete results, such as the Green Climate Fund—the world’s largest fund dedicated to climate action—as well as many other bilateral and multilateral initiatives.

Climate change poses a fundamental threat to the planet and to communities around the world. The impacts of climate change are being increasingly felt around the globe, particularly in developing countries who are most severely hit and least equipped to respond to the consequences. Climate change has inextricable links to poverty reduction, global security, financial stability and humanitarian issues. The World Bank estimates, that, without action, climate change impact could push an additional 100 million people into poverty by 2030.

As part of the 2009 Copenhagen Accord under the United Nations Framework Convention on Climate Change (UNFCCC), developed countries committed to jointly mobilize US $100 billion annually, from public and private sources, by 2020 to support climate action in developing countries. This commitment is reaffirmed in the Paris Agreement, which also commits Parties to set a new collective quantifiable goal from a floor of US $100 billion per year by 2025.

CURRENT STATE OF PLAY

In 2015, Canada announced that it will provide $2.65 billion (2015-2021) to help developing countries transition to low-carbon, sustainable and resilient economies. This pledge is fulfilling Canada’s climate finance commitment under the Paris Agreement and is a key area of international leadership. It also builds on Canada’s previous commitment under Fast-Start Finance, where Canada provided $1.2 billion over 2010-2013.

To date, over $1.7 billion has been announced for specific initiatives and programs that aim to reduce greenhouse gas emissions, support adaptation action, particularly for the poorest and most vulnerable countries, and mobilize new private sector capital for global climate action.

Canada’s funding is supporting a wide range of climate initiatives to help developing countries, in particular the poorest and most vulnerable, including Small Island Developing States (SIDS) and coastal communities. Canada’s support is delivered through a variety of multilateral and bilateral channels, including the Green Climate Fund (GCF), the centrepiece mechanism for climate finance under the UNFCCC. Canada’s support is targeting sectors such as clean technology and renewable energy, climate-smart agriculture and forest management, and risk insurance and capacity building.

Canada’s approach includes partnering with Multilateral Development Banks to leverage private sector financing by removing barriers to private investment in developing countries. This includes using targeted amounts of concessional finance (i.e. below market rate) to demonstrate the commercial viability of projects and unlock future private investments in similar initiatives.

Canada’s climate finance commitment aligns with Canada’s Feminist International Assistance Policy (FIAP), which guides Canada’ overall approach on international assistance. Environment and climate action is a core action area of the FIAP.

Question Period notes as provided by the Department to the Minister’s Office