With climate finance front and centre at COP27, Canada helping to respond to priorities of developing countries

SHARM EL-SHEIKH, Egypt, Nov. 9, 2022 /CNW/ - Climate change is a global crisis that affects us all, but not all equally. Developing countries are issuing urgent calls for help in combating the worst impacts for which they are the least prepared. Helping the poorest and most vulnerable countries is a top priority for Canada and the Egyptian COP27 presidency. 

Today, the Honourable Steven Guilbeault, Minister of Environment and Climate Change, on behalf of the Honourable Harjit S. Sajjan, Minister of International Development and Minister responsible for the Pacific Economic Development Agency of Canada, announced a number of practical initiatives totaling $24 million that respond directly to the needs and priorities of developing countries. The projects, funded through Canada's $5.3 billion International Climate Finance Commitment, directly respond to the needs and priorities of developing countries in three critical areas: loss and damage, access to climate finance, and climate governance:

Loss and damage

• $7 million to the Global Shield Financing Facility will help make climate-vulnerable countries more resilient and protect the lives and livelihoods of the most vulnerable, including women and girls. This investment supports the Global Shield against Climate Risk to strengthen the Global Climate Risk Finance and Insurance Architecture. An additional $1.25 million will provide early support to establish the Santiago Network, designed to help developing countries access technical assistance to avert, minimize and address loss and damage.
• The Global Shield is an initiative guided by the G7 and the Vulnerable Twenty (V20) Group that aims to provide a coordinated approach to climate risk and prevention. This was identified as a priority for developing countries who are calling for the protection gap against climate-related losses and damages to be closed.

Access to climate finance

• $5 million to the Climate Finance Access Network will expand its work with climate-vulnerable countries. The Climate Finance Access Network has made great strides in building developing countries' capacity to structure and securing public and private finance for priority climate mitigation and adaptation investments. This builds on Canada's previous contribution of $9.5 million to launch the Climate Finance Access Network in 2020.
• The Climate Finance Delivery Plan Progress Report identified access to climate finance as a key area of focus. It found that while more needs to be done, most developed countries are committed to working further with multilateral development banks and climate funds to make progress on increasing harmonization and reducing barriers to access.

Climate governance

• $5 million will support the Initiative for Climate Action Transparency by building real, institutional capacity for developing countries in advancing their Nationally Determined Contribution implementation and transparency. A renewed contribution of $6 million to the Climate Technology Centre and Network will promote the accelerated development and transfer of climate technologies for energy-efficient, low-carbon, and climate resilient development.

In 2021, Canada doubled its climate finance commitment to $5.3 billion over five years (2021–2026). This commitment more than doubles the provision of funding toward adaptation to a minimum of forty percent, which is in line with the objectives set by the Glasgow Pact.

Last month, at the behest of the international community, Canada and Germany released the Climate Finance Delivery Plan Progress Report, highlighting what developed countries have been doing this year to deliver on the collective US$100 billion goal. The report reaffirmed a commitment to transparency, and clearly detailed where more work is needed. Canada remains steadfast in its commitment to work with others to reach the US$100 billion goal as soon as possible and through 2025.

Across its climate finance contributions, Canada continues to help developing countries better address climate change and adapt to its impacts. Over the next five years, Canada will focus its international climate finance on four main thematic areas: clean energy transition and coal phase-out, climate-smart agriculture and food systems, nature-based solutions and biodiversity, and climate governance.

Quotes

"Climate change is a global crisis that requires a global response. Canada's climate investments are helping vulnerable countries adapt to harmful climate impacts already underway. We've supported hundreds of climate projects around the world, but recognize that more needs to be done, including ensuring access to climate finance for developing countries. Here at COP27, we're focused on delivering support to those who need it most."
– The Honourable Steven Guilbeault, Minister of Environment and Climate Change

"It is critically important for climate-vulnerable countries to be able to trust that the global community will make good on its commitment to fight climate change. Canada continues to work collaboratively with our allies for the achievement of the international US$100 billion climate financing goal, as demonstrated by Canada's co-leadership with Germany in developing the Climate Finance Delivery Plan Progress Report. Canada has doubled its climate finance commitment, and while more work needs to be done, today's announcement underlines that Canada will continue to be a constructive partner in the global fight against climate change and biodiversity loss."
– The Honourable Jonathan Wilkinson, Minister of Natural Resources

"Canada stands by developing countries, which are most affected by climate change, helping mitigate and adapt to its effects. By working hand-in-hand with our delivery partners, we can help developing countries transition to low-carbon, climate-resilient, nature-positive and inclusive sustainable development. Together, we can build a better planet and future for generations to come."
– The Honourable Harjit S. Sajjan, Minister of International Development and Minister responsible for the Pacific Economic Development Agency of Canada

Quick facts

• Canada's $5.3 billion climate finance commitment increases the proportion of grants to forty percent, up from thirty percent previously, and increases its provision of funding toward adaptation to a minimum of forty percent. A minimum of twenty percent of the funding will be allocated to projects that leverage nature-based climate solutions and projects with biodiversity co-benefits. Canada will ensure that eighty percent of projects integrate gender equality consideration, in line with Canada's Feminist International Assistance Policy.
• Canada's previous $2.65 billion climate finance commitment (2015–2021) is expected to reduce or avoid over 228 megatonnes of greenhouse gases and increase the resilience of 6.6 million people to the effects of climate change, as of 2022.

Associated links

• Climate Finance Delivery Plan Progress Report
  
  
• Climate Finance Delivery Plan: Meeting the US$100 Billion Goal
  
  
• Support to the Climate Finance Access Network (CFAN) – Climate Financing
  
  
• Canada's International Climate Finance

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SOURCE Environment and Climate Change Canada

Kaitlin Power, Press Secretary, Office of the Minister of Environment and Climate Change, 819-230-1557, [email protected]; Media Relations, Environment and Climate Change Canada, 819-938-3338 or 1-844-836-7799 (toll-free), [email protected]