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Horizontal initiatives

Natural Climate Solutions Fund

Name of horizontal initiative Natural Climate Solutions Fund
Lead department Natural Resources Canada
Federal partner organization(s)

Environment and Climate Change Canada

Agriculture and Agri-Food Canada

Start date 2021/2022
End date

2030/2031Footnote 1

Description

Canada’s Natural Climate Solutions Fund (NCSF) is a horizontal initiative established to leverage the inherent ability of natural ecosystems to sequester carbon and reduce atmospheric greenhouse gas (GHG) concentrations. This initiative includes three separate, but related, programs: Natural Resources Canada’s (NRCan) 2 Billion Trees program, Environment and Climate Change Canada’s (ECCC) Nature Smart Climate Solutions Fund, and Agriculture and Agri-Food Canada’s (AAFC) Agricultural Climate Solutions. NRCan is the lead department for the Horizontal Initiative Framework, supported by ECCC and Agriculture AAFC.

Governance structure

The Horizontal Initiative is governed by an ADM Oversight Committee that is chaired by the Assistant Deputy Minister (ADM) of the Canadian Forest Service, NRCan and includes the ADM of the Canadian Wildlife Service, ECCC, and the ADM of Programs Branch, AAFC. The Oversight Committee will be responsible for ensuring that the NCSF is properly managed, ensuring timely and accurate reporting, seeking conflict resolution, liaising with the central agencies and ensuring appropriate operation of an external Advisory Committee.

A Director General Steering Committee chaired by NRCan, with representation from ECCC and AAFC, supports the Oversight Committee to guide effective and efficient implementation of the initiative, ensure coordination across the three departments, and ensure timely and accurate reporting on results and financial information.

Additionally, there are three Director-level working groups, all chaired by NRCan with representation from ECCC and AAFC:

  1. Coordination Working Group – this group oversees approaches to improving coordination across the three departments.
  2. Indigenous Collaboration Working Group – this group ensures coordinated and effective approaches to work with Indigenous peoples in a way that reduces administrative burden and reflects the Government’s commitment to reconciliation, for example through extensive engagement and meaningful consultation with Indigenous peoples.
  3. Horizontal Reporting Working Group – this group ensures coordination on and fulfillment of the requirements of the horizontal reporting framework and results tracking. This working group may establish a sub-group to provide specific oversight on the reporting of GHG emission reductions and removals due to NCSF activities.
Total federal funding allocated from start to end date (dollars)

$ 4,215,484,795Footnote 2

Total federal planned spending to date (dollars)

$385,239,777

Total federal actual spending to date (dollars)

Not Applicable

Date of last renewal of initiative

Not Applicable

Total federal funding allocated at last renewal and source of funding (dollars)

Not Applicable

Additional federal funding received after last renewal (dollars)

Not Applicable

Total planned spending since last renewal

Not Applicable

Total actual spending since last renewal

Not Applicable

Fiscal year of planned completion of next evaluation

FY 2025/2026, led by NRCan with support from ECCC and AAFC.

Planning highlights

2022/23 Planning Highlights

  • The NCSF will continue to engage with partners and stakeholders to negotiate projects and multi-year agreements, including working with Indigenous partners to streamline application and reporting processes and remove barriers to access funding. This will include working with Indigenous partners toward the co-development of an inclusive governance model for the Indigenous funding stream of the 2 Billion Trees program.
  • Administer Grants & Contributions projects through open calls for proposals for the three NCSF programs – the 2 Billion Trees program, (NRCan), Nature Smart Climate Solutions Fund (ECCC) and Agricultural Climate Solutions and On-Farm Climate Action Fund (AAFC).
  • Advance policy and program development with provinces, territories, Indigenous peoples, and partners to reduce rates of ecosystem conversion and encourage restoration, including forest habitat restoration.
  • Work towards improved methodologies in the land sector of the Greenhouse Gas National Inventory Report and expanding and enhancing the wetlands inventory.
Contact information

Anne-Hélène Mathey

Director, Natural Climate Solutions Division, Canadian Forest Service, Natural Resources Canada

580 Booth Street, Ottawa, ON, K1A 0E6

343-292-8466

anne-helene.mathey@nrcan-rncan.gc.ca

Horizontal initiative framework: departmental funding by theme (dollars)Footnote 3

Natural Climate Solutions Fund (NCSF) T1: 2 Billion Trees (2BT) T2: Nature Smart Climate Solutions (NSCS) T3: Agricultural Climate Solutions (ACS) Internal Services
Shared outcome(s)

Reduce GHG emissions in Canada through planting 2 billion incremental trees while achieving environmental and human wellbeing co-benefits

Conserve, restore and manage ecosystems to reduce GHG emissions

Reduce GHG emissions in Canada through climate smart ecosystems.

Increase land area supporting reduced GHG emissions.

Reduce greenhouse gas (GHG) emissions in the Canadian agriculture sector

 
Natural Resources Canada (NRCan)

$3,199,392,648

   

$10,099,426

Environment and Climate Change Canada (ECCC)  

$ 631,092,147

 

$14,483,861

Agriculture and Agri-foods Canada (AAFC)    

ACS – Living Labs:

$185,000,000 over 10 years (2021-22 to 2030-31),

ACS – OFCAFFootnote 4:

$200,000,000 over three years (2021-22 to 2023-24)

ACS – Living Labs: $6,606,637

ACS – OFCAF: $2,739,185

TOTAL: $9,345,822

Total

$3,199,392,648

$ 631,092,147

$385,000,000

$33,929,109

Planning InformationFootnote 5Footnote 6

Horizontal Initiative Overview
Name of horizontal initiative Total federal funding allocated (dollars) 2022–23 Planned spending (dollars) Horizontal initiative shared outcome(s) Performance indicator(s) Target(s) Date to achieve targetFootnote 7

Natural Climate Solutions Fund

$4,215,392,147

$385,239,777

Reduce GHG emissions in Canada through natural climate solutions

Annual GHG emission reductions through NCSF

Annually increasing emissions reductions, reaching 4-7 megatonnes (Mt) CO2e per year by 2030

Annual starting in 2023; final target in 2030 (reported in 2032)

Projected long-term (2050) GHG emission reductions through NCSF

Projected emission reduction of 13-17 megatonnes (Mt) CO2e per year by 2050

2030 (reported in 2032)

Achieve environmental co-benefits through natural climate solutions

Cumulative total land area restored through NCSF

Annually increasing, with interim target TBD by 2022 and final target of 1.32 Mha restored

Annual starting in 2022; interim target in 2025-26 and final target in 2030-31

Cumulative total land area conserved through NCSF

Annually increasing, with interim target TBD by 2022 and final target of 0.006 Mha conserved

Cumulative total land area under improved management through NCSF

Annually increasing, with interim target TBD by 2022 and final target of 0.14-0.2 Mha under improved management

Achieve human well being co-benefits through natural climate solutions

Number of aggregate direct jobs created through NCSF

2175-2646 people directly employed each year.

Annual, starting in 2024.

Theme 1 DetailsFootnote 8
Name of theme Total federal theme funding allocated (dollars) 2022–23 federal theme planned spending (dollars) Theme outcome(s) Theme performance indicator(s) Theme target(s) Date to achieve theme targetFootnote 9

2 Billion Trees

$3,199,392,648

$213,719,005

Reduce GHG emissions in Canada through planting 2 billion incremental trees

Cumulative total number of incremental trees planted

Annually increasing, reaching cumulative total of 2 billion trees

Annual starting in 2022; final target in 2030-31

Cumulative total area planted with incremental trees.

Annually increasing, reaching cumulative total of 1.1 million hectares

Annual starting in 2022; final target in 2030-31

Annual GHG emission reductions

Annually increasing emission reductions, reaching up to 2 megatonnes (Mt) CO2e per year by 2030

Annual starting in 2023; final target in 2030 (reported in 2032)

Projected long-term (2050) GHG emission reductions

Projected emission reduction of  up to 11-12 megatonnes (Mt) CO2e per year by 2050

2030 (reported in 2032)

Achieve environmental co-benefits through tree planting

Cumulative total area planted that contributes to forest habitat restoration for species at risk and other species of interest

Annually increasing, reaching cumulative total of 70,000-90,000 hectares (target to be confirmed by March 2022)

Annual starting in 2022; final target in 2030-31

Cumulative total area planted that contributes to increased forest resilience to climate change

Annually increasing, with final target to be determined by 2023

Annual starting in 2022; final target in 2030-31

Achieve human wellbeing co-benefits through tree planting

Number of aggregate direct, indirect and induced jobs created

3600-4300 people employed each year due to 2BT, starting in 2024

Annual, starting in 2024

Percent of large and medium organization funding recipients that have Diversity and Inclusion Plans

100% of large and medium organization funding recipients have Diversity and Inclusion Plans

Annual, starting in 2022

Percent of under-represented groups in the tree planting and related activity workforce of large and medium organization funding recipients

Annually increasing; final targets of:

45% women, 9% immigrants, 6% visible minorities, 3% Indigenous women in tree planting and related activity workforce supported by 2BT

Annual, starting in 2022; final target 2030-31

Theme 1 Horizontal Initiative ActivitiesFootnote 10
Departments Link to department’s Program Inventory Horizontal initiative activity (activities) Total federal funding allocated to each horizontal initiative activity (dollars) 2022–23 planned spending for each horizontal initiative activity (dollars) 2022-23 horizontal initiative activity expected result(s) 2022–23 horizontal initiative activity performance indicator(s) 2022–23 horizontal initiative activity target(s) Date to achieve horizontal initiative activity targetFootnote 11

NRCan

Forest Climate Change Program

2BT Activity 1: Provinces /  territories (PT) stream

$1,350,000,000

$87,906,977

PTs increase incremental tree planting

Cumulative total number of incremental trees planted through PT stream

Annually increasing; interim target TBD by 2022; final target of 1.16 - 1.19 billion trees

Annual starting in 2022; interim target by 2025-26; final target by 2030-31

NRCan

Forest Climate Change Program

2BT Activity 1: Private Land stream

$660,000,000

$42,976,744

Incremental tree planting on private lands is increased

Cumulative total number of incremental trees planted on private lands through stream

Annually increasing; interim target TBD by 2022; final target more then 500 million trees

Annual starting in 2022; interim target by 2025-26; final target by 2030-31

Number of landowners supported through Private Land stream

Interim and final targets TBD by 2022

Annual starting in 2022; interim target by 2025-26; final target by 2030-31

NRCan

Forest Climate Change Program

2BT Activity 1: Urban Land stream

$500,000,000

$32,558,140

Community-led initiatives for urban tree planting and management across Canada are increased

Cumulative total number of incremental trees planted in urban environments through stream

Annually increasing; interim target TBD by 2022; final target 5-7 million trees

Annual starting in 2022;  interim target by 2025-26; final target by 2030-31

Number of communities supported through Urban Land stream

Interim and final targets TBD by 2022

Annual starting in 2022; Interim target by 2025-26; final target by 2030-31

NRCan

Forest Climate Change Program

2BT Activity 1: Indigenous  stream

$500,000,000

$32,558,140

Indigenous-led initiatives for tree planting across Canada are increased

Cumulative total number of incremental trees planted through Indigenous stream

Annually increasing; final target 180 million trees

Annual starting in 2022; final target 2030-31

Number of Indigenous organizations supported through stream

Interim and final targets TBD by 2022

Annual starting in 2022; interim target by 2025-26; final target by 2030-31

NRCan

Forest Climate Change Program

2BT Activity 1: Federal Land stream

$50,000,000

$1,960,710

Federal departments and agencies increase incremental tree planting

Cumulative total number of incremental trees planted through Federal Land stream

Annually increasing; interim and final targets TBD by 2022

Annual starting in 2022; interim target by 2025-26; final target by 2030-31

NRCan

Forest Climate Change Program

2BT Activity 2: Estimate and report on GHG impacts - new

$25,000,000

$2,943,727

GCF reports on annual GHG impacts

Production of estimates of GCF- supported emission reductions for Canada’s GHG National Inventory Report

Estimates produced annually

Annual, starting in 2023-24

2BT Activity 2: Estimate and report on GHG impacts - existing

$19,884,439

$1,986,006

NRCan

Forest Climate Change Program

2BT Activity 3: NRCan research to improve 2BT outcomes -  new

$7,200,000

$891,393

NRCan research related to tree planting and carbon sequestration and monitoring is enhanced

Cumulative total number of scientific/ technical articles and reports published by NRCan supported through the stream

Annually increasing; interim and final target TBD by 2023

Annual starting in 2022; interim target by 2025-26; final target by 2030-31

2BT Activity 3: NRCan research to improve 2BT outcomes - existing

$11,961,506

$1,197,444

Theme 1 Other Administrative CostsFootnote 12
Departments Link to department’s Program Inventory Horizontal initiative activity (activities) Total federal funding allocated to each horizontal initiative activity (dollars) 2022–23 planned spending for each horizontal initiative activity (dollars)

NRCan

Forest Climate Change Program

2BT Other Costs – Support for Activity #1

$50,447,990

$5,329,230

2BT Other 2BT Costs – Capital

$4,300,000

$1,170,000

2BT Other Costs – Other

$19,697,518

$2,150,410

2BT Other Costs – Other Existing

$901,195

$90,084

Theme 2 DetailsFootnote 13
Name of theme Total federal theme funding allocated (dollars) –23 Federal theme planned spending (dollars) Theme outcome(s) Theme performance indicator(s) Theme target(s) Date to achieve theme targetFootnote 14

Nature Smart Climate Solutions

$631,092,147

$66,188,530

Reduce GHG emissions in Canada through NSCS.

Annual GHG emission reductions (Mt)

Annually increasing emission reductions, reaching 2-4 megatonnes (Mt) CO2e per year

Annual starting in 2023; final target in 2030 (reported in 2032)

Projected long-term (2050) GHG emission reductions

Projected emission reduction of 2-4 megatonnes (Mt) CO2e per year by 2050

2030 (reported in 2032)

Land area supporting reduced GHG emissions is increased.

Cumulative total area restored

Annually increasing, reaching cumulative total of 0.22 to Mha of area restored.

Annual starting in 2023; final targets in 2030-31

Cumulative total area conserved

Annually increasing, reaching cumulative total of 0.006 Mha of area conserved

Annual starting in 2023; final targets in 2030-31

Achieve human wellbeing  co-benefits through climate smart activities

Number of direct jobs

41 direct jobs in year 1,

55 in year 2, 10 year target of 746 to 1,459 jobs; 75 to 146 people directly employed each year, starting in 2023 [TBC in 2023-24]

Annual, starting in 2023

Theme 2 Horizontal Initiative ActivitiesFootnote 15
Departments Link to department’s Program Inventory Horizontal initiative activity (activities) Total federal funding allocated to each horizontal initiative activity (dollars) 2022–23 planned spending for each horizontal initiative activity (dollars) 2022–23 horizontal initiative activity expected result(s) 2022–23 horizontal initiative activity performance indicator(s) 2022–23 horizontal initiative activity target(s) Date to achieve horizontal initiative activity targetFootnote 16

ECCC

Clean Growth and Climate Change Mitigation

NSCS Activity 1: Science for Initiative Delivery and Accountability

$50,068,622

$6,301,594

Improved methodologies in the land sector of the GHG National Inventory Report (NIR)

Number of  methodological improvements for the land sector implemented in each annual edition of the NIR

8 methodological improvements over 10 years

Annual, starting in 2023, final target by 2030-31

ECCC

Habitat Conservation and Protection

NSCS Activity 2: Place-based Actions

$462,035,899

$49,462,592

Partners carry out place-based climate smart ecosystem activities

Total area stewarded for GHG mitigation

2,200 km2 

Annual, starting in 2023, final target by 2030-31

Total area secured for GHG mitigation

63 km2

Annual, starting in 2023, final target by 2032

ECCC

Habitat Conservation and Protection

NSCS Activity 2: Place-based Actions

$40,877,470

$5,163,965

Indigenous partners are engaged in climate smart ecosystems

Number of indigenous-led projects supported

TBD by 2022-23

Annual, starting in 2022, interim target by 2025-26, final target by

2030-31

ECCC

Habitat Conservation and Protection

NSCS Activity 3: Sector-based Policy

$78,110,156

$5,260,379

Sector-based approaches influence partners to minimize land conversion (Sectors include: agriculture, forest, urban development, mining, oil and gas)

Net change in policies driving ecosystem conversion relative to the land-base 

Positive trend in “policy-hectares”

Interim target by 2025-26; final target by 2030-31. Reported at least twice during the initiative.

Theme 3 DetailsFootnote 17
Name of theme Total federal theme funding allocated(dollars) 2022–23 federal theme planned spending (dollars) Theme outcome(s) Theme performance indicator(s) Theme target(s) Date to achieve theme targetFootnote 18

Agriculture Climate SolutionsFootnote 19

$185,000,000

$14,073,775

Reduce GHG emissions in Canada through climate smart ecosystems

Annual GHG emission reductions in 2030 (Mt)

Annually increasing emission reductions, reaching 0.2-1.78 megatonnes (Mt) CO2e per year

Annual starting in 2023; final target in 2030 (reported in 2032)

Projected long-term (2050) GHG emission reductions

Projected emission reduction of 0.2-1.78 megatonnes (Mt) CO2e per year by 2050

2030 (reported in 2032)

Land area supporting reduced GHG emissions is increased.

Cumulative total area under improved management

Annually increasing, reaching cumulative total of 0.14-0.2 Mha under improved management

Annual starting in 2023; final targets in 2030-31

Theme 3 Horizontal Initiative Activities
Departments Link to department’s Program Inventory Horizontal initiative activity (activities) Total federal funding allocated to each horizontal initiative activity (dollars) 2022–23 planned spending for each horizontal initiative activity (dollars) 2022–23 horizontal initiative activity expected result(s) 2022–23 horizontal initiative activity performance indicator(s) 2022–23 horizontal initiative activity target(s) Date to achieve horizontal initiative activity target

AAFC

Environment and Climate Change Programs

Establishment of a pan-Canadian wide network of Living Labs

$185,000,000

$14,073,775

Develop partnerships with key stakeholders to encourage diversity in engagement and participation in co-developing

Number of partnerships established with various stakeholders, including breakdown for under-represented groups

TBD by 2022-23

Annual, starting in 2023. Final by 2030-31

Producers are adopting carbon-sequestering BMPs

Percentage of farms adopting carbon-sequestering BMPs in priority locations

Target will be set by 2022-23

Annual, starting in 2024. Final by 2030-31

Sequestration of GHGs on Canadian agricultural lands is increased

Increase in annual Land Sector GHG sink due to ACS by 2030-31 (end of NCSF).

0.2-1.78 MtCO2e

Annual, starting in 2024. Final by 2030-31

AAFC

Environment and Climate Change Programs

Data strategy allowing for reporting of carbon sequestration and environmental co-benefits

Incorporation of targeted farm practices into Canada’s GHG National Inventory Report (NIR)

Number of additional farm practices that are included in Canada’s NIR

Incorporate the following by 2024 NIR: Conservation Tillage, Summer Fallow and Perennial/ Annual Crop Mix

Incorporate the following by 2026 NIR: Cover Cropping, Crop Rotations, Fertilizer Use, and Small Scale Features (shelterbelts, etc.)

Annual, starting in 2024. Final by 2030-31

AAFC

Environment and Climate Change Programs

On-Farm Climate Action FundFootnote 20

$200,000,000

$91,258,467

Increased adoption of beneficial management practices (fertilizer and nitrogen management, cover cropping, and rotational grazing).

Cumulative total land area under improved management

Preliminary analysis suggests that the program could lead to up to 792,000 hectares of land under improved management.

The target will be finalized based on this preliminary analysis and the first year of performance reporting.

Annually, starting in 2023.

Greenhouse gas (GHG) emissions are reduced in the Canadian agriculture sector.

Projected carbon sequestered in agricultural soils to 2030 due to adoption of BMPs in two areas:

  • through adoption of cover crop BMPs
  • through adoption of rotational grazing BMPs

GHG emissions reduction projected to 2030 due to adoption of BMPs in two areas:

  • through adoption of improved fertilizer/nitrogen management BMPs
  • through adoption of cover crop BMPs

Preliminary analysis suggests that the Fund could lead to a cumulative total of up to 2 Megatonnes (Mts) of carbon dioxide equivalent (CO2e) of GHG emissions reduction, with a continuation of 1 Mt CO2e per year with the persistence of the adopted practices.

Annually, starting in 2023.

Internal Services (IS)
Theme (Federal Organization) Total federal funding allocated (dollars) 2022–23 total federal planned spending (dollars)

2 Billion Trees (NRCan)

$10,099,426

$1,086,098

Nature Smart Climate Solutions (ECCC)

$14,483,861

$1,773,095

Agricultural Climate Solutions (AAFC)

ACS – Living Labs: $6,606,637

ACS – OFCAF: $2,739,185

TOTAL: $9,345,822

ACS – Living Labs: $660,663

ACS – OFCAF: $913,061,67

TOTAL: $1,573,725

Total

$33,929,109

$4,432,918

Total Spending, All Themes
Theme Total federal funding allocated (dollars) 2022–23 total federal planned spending (dollars)

2 Billion Trees

$3,199,392,648

$213,719,005

Nature Smart Climate Solutions

$631,092,147

$66,188,530

Agricultural Climate Solutions

ACS – Living Labs: $185,000,000

ACS – OFCAF: $200,000,000

TOTAL: $385,000,000

ACS – Living Labs:  $14,073,775

ACS – OFCAF: $91,258,467

TOTAL:  $105,332,242 

Total

$4,215,392,147

$385,239,777

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