Featured initiatives

Canada provided support to a number of initiatives and programs that contribute to efforts that address climate change in developing countries. A few key initiatives are highlighted below:

Building climate resilience

Canada’s climate finance supports climate change adaptation, focusing primarily on the needs of the poorest and most vulnerable countries.

For example, Canada provided $10.4 million over two years (2013–2014 and 2014–15) to support increasing agricultural productivity for smallholder farmers in 18 vulnerable districts in Ethiopia. Despite having relatively reliable rainfall and high potential for agricultural growth, the supported districts are increasingly affected by land degradation and climate change. This has an impact on small-scale farmers’ resilience to climate-related shocks and puts them at increased risk of food insecurity. In order to address this vulnerability, the project supports the Government of Ethiopia’s national Sustainable Land Management Program that works with communities and local officials to develop and implement resilience-building plans.

To date this project has resulted in getting a total of 86,790 hectares of land under sustainable land management practices. This work has increased agricultural productivity for selected crops such as wheat production, which increased by 71%, contributing to building food security in these regions and has benefitted more than 250,000 people.

Innovative financing for adaptation

Through its climate finance, Canada is also exploring opportunities to for the mobilization of private-sector investment in projects associated with adapting to climate change vulnerabilities.

For example, Canada provided $12 million through the Canada Fund for the Private Sector in the Americas at the Inter-American Development Bank to support small- and medium-sized Central American coffee farmers in sustainably renovating their plantations with trees that are resistant to coffee rust (Roya disease). The rust plague has spread dramatically throughout Central America in recent years, a phenomenon that is partly attributed to climate change. Farmers will replant with rust-resistant coffee varieties and will be provided technical assistance for best practices farm management. Through this this project, approximately 16,800 hectares of plantations are expected to be renovated over a period of four to five years in Nicaragua, Honduras, Costa Rica, Mexico and Peru. The first phase of the project in Nicaragua is expected to finance approximately 500 farmers.

Deploying clean technology and mobilizing private-sector investment in climate change

Through its climate finance, Canada works collaboratively with a number of multilateral organizations to scale up the mobilization of private sector investment in climate-friendly sectors in developing countries by addressing technical and financial risks.

For example, Canada provided $10 million through the International Finance Corporation -Canada Climate Change Program to support the first private sector wind project in Jamaica. Jamaica has potential for renewable energy; however it still relies on imported fossil fuels for most of its electricity. This project supports Jamaica’s urgent need for diversification of energy sources and demonstrates the bankability of wind farms in Jamaica for future investments. With support from Canada, this project is expected to lead to a reduction of 66,000 tons of CO2 per year and leverage US $79.6 million from other sources, including the private sector.

In addition, Canada provided $20 million through the Canadian Climate Fund for the Private Sector in Asia at the Asian Development Bank to support the construction of a 320.8 megawatt geothermal power facility in Indonesia. Overall power demand in Indonesia is projected to grow by more than 8% per annum until 2029. As such, the Government of Indonesia recognizes the economic imperative of sustainable growth and aims to increase the share of renewable energy in Indonesia’s primary energy supply from 5% in 2010 to 25% by 2025. With more than 29,000 megawatts of geothermal resources located in Indonesia it is expected that geothermal power will account for the vast majority of the new sustainable power generation. The project is expected to be completed in 2018 and will help demonstrate that geothermal energy is a viable and reliable energy source. Once completed, it is expected to be the largest geothermal power project in the world, and will avoid 1.3 million tons of CO2 emissions per year.

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