Question Period Note: Natural Infrastructure Fund

Current status of the Natural Infrastructure Fund

• Budget 2021 announced $200 million over three years toward the Natural Infrastructure Fund (NIF), a program to fund natural and hybrid infrastructure projects that are primarily for public use or benefit in communities across Canada.

• This program, the first of its kind at the federal level, also promises to build awareness and increase the use of natural and hybrid infrastructure that delivers multiple community services and benefits.

• Projects funded through the NIF will create, expand, or enhance communities’ access to nature, furthering resilience to climate change, improving environmental quality, and protecting biodiversity.

• Select major cities with innovative natural infrastructure strategies were invited to apply for up to $20 million in funding under the Large Projects Stream. The launch of the Small Projects Stream, for projects with eligible costs between $30,000 and $3 million, is currently open for applications up until September 27, 2022.

• This program complements other federal efforts to deliver on the Government of Canada’s conservation targets through investments at the local level to enhance and expand natural infrastructure in and around communities, and increase opportunities for Canadians to connect with nature, and benefit from access to healthy natural spaces.
• Natural infrastructure is defined as the use of preserved, restored or enhanced ecosystem features and materials (e.g., water, native species of vegetation, sand and stone) to deliver targeted community services and infrastructure outcomes, namely climate resilience services, environmental quality services, access to nature services, carbon sequestration benefits, and biodiversity benefits. Natural infrastructure can be naturally occurring or engineered using exclusively ecosystem features and materials.
• Examples of eligible activities and projects under NIF include:
  o Planting and restoring greenspace (e.g. parks, urban forests, green roofs);
  o Construction or restoration of naturalized water retention or detention systems (e.g. naturalized stormwater ponds, wetlands, coastal or shoreline);
  o Restoration, naturalized water diversion and infiltration (e.g. living dykes, bioswales, rain gardens);
  o Natural or hybrid infrastructure supporting biodiversity and connectivity (e.g. natural wildlife crossings); and,
  o Design elements enhancing access to green space or natural water bodies, if connected to a broader natural or hybrid infrastructure project (e.g. trails, benches, signage).
• The program includes a large and small project stream. Targeted invitations for the large projects stream have been sent to five large cities (Toronto, Vancouver, Halifax, Saskatoon and Winnipeg). The City of Montréal received an information letter and will also be invited once a program delivery approach has been agreed upon between INFC and the Province of Québec, in light of M30 requirements.
  o Under the NIF Large Projects Stream, projects with total eligible costs over $3 million can be funded via contributions with a maximum contribution of $20 million.
  o Under the Small Projects Stream, projects with total eligible costs between $30,000 and $3 million can be funded via grants up to $250,000 or contributions up to $1 million.
  o A minimum of 10% ($20 million) of the total program envelope will be allocated to Indigenous-led projects.

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