Horizontal initiatives

Natural Climate Solutions Fund (NCSF) – Overview

General Information
Name of horizontal initiative	Natural Climate Solutions Fund (NCSF)
Lead department	Natural Resources Canada (NRCan)
Federal partner organization(s)	Environment and Climate Change Canada (ECCC) Agriculture and Agri-Food Canada (AAFC)
Start date	2021/2022
End date	2030/2031^{Footnote 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 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: Coordination Working Group – this group oversees approaches to improving coordination across the three departments. 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. 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)	$4,266,739,294.89^{Footnote 2}
Total federal planned spending to date (dollars)	$649,178,010.00
Total federal actual spending to date (dollars)	$104,393,173.00
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	2023-24 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. Specific planning highlights for NCSF include: Administer Grants & Contributions projects through directed and 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), focusing on multi-year contribution agreements. Manage contribution agreements, engage partners and stakeholders on natural climate solutions, and track and report results. Implement the co-developed governance model to deliver the Indigenous Funding Stream for 2 Billion Trees to support the full participation of Indigenous peoples in natural climate solutions. Launch new Living Labs in the 4 provinces (MB, ON, QC, PE) not currently represented under the Agricultural Climate Solutions (ACS) – Living Labs program, thus establishing a pan-Canadian network of ACS living labs, with at least one living lab in each province. Continue to co-develop, test, and evaluate carbon-sequestering and GHG emission reducing Best Management Practices (BMPs) with producers, researchers, and other collaborators in existing 9 living labs. The living labs will engage in knowledge-exchange activities to help refine the innovative BMPs and encourage their broader adoption beyond the living lab. Measure and model sequestration of carbon on Canadian agricultural lands as Living Labs participants co-develop, test, and evaluate BMPs. Continue work to incorporate targeted land management practices into Canada’s National GHG Inventory Report.
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}

Horizontal initiative: Natural Climate Solutions Fund (NCSF)

Shared outcomes: 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.

Horizontal initiative framework: departmental funding by theme (dollars)
Name of theme	T1: 2 Billion Trees (2BT)	T2: Nature Smart Climate Solutions (NSCS)	T3: Agricultural Climate Solutions (ACS)	Internal Services
Theme 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)	$3,199,392,648.00			$10,099,426.00
Environment and Climate Change Canada (ECCC)		$631,092,147.00		$14,483,861.00
Agriculture and Agri-foods Canada (AAFC)			$436,254,500.00 ACS – Living Labs: $185,000,000.00 ACS – OFCAF: $251,254,500.00	$12,682,361.00 ACS – Living Labs: $6,284,033.00 ACS – OFCAF: $6,398,328.00
Total	$3,199,392,648.00	$631,092,147.00	$436,254,500.00	$37,265,648.00

Planning Information^{Footnote 4}

Horizontal Initiative Overview
Name of horizontal initiative	Total federal funding allocated (dollars)	2023-24 Planned spending (dollars)	Horizontal initiative shared outcome(s)	Performance indicator(s)	Target(s)	Date to achieve target^{Footnote 5}
Natural Climate Solutions Fund	$4,266,739,295	$515,870,968	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	March 31, 2031 (final results to be reported in 2032-33 Departmental Results Report)
				Projected long-term (2050) GHG emission reductions through NCSF	Projected emission reduction of 13-17 megatonnes (Mt) CO₂e per year by 2050	March 31, 2031 (final results to be reported in 2032-33 Departmental Results Report)
			Achieve environmental co-benefits through natural climate solutions	Cumulative total land area restored through NCSF	Annually increasing, with interim target TBD by March 31, 2024; final target of 1.32 Mha restored	Interim target by March 31, 2026; final target by March 31, 2031
				Cumulative total land area under improved management through NCSF	Annually increasing, with interim target TBD by March 31, 2024; 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 Details^{Footnote 6}
Name of theme	Total federal theme funding allocated (dollars)	2023-24 federal theme planned spending (dollars)	Theme outcome(s)	Theme performance indicator(s)	Theme target(s)	Date to achieve theme target^{Footnote 7}
2 Billion Trees	$3,199,392,648	$300,995,408	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	March 31, 2031
				Cumulative total area planted with incremental trees.	Annually increasing, reaching cumulative total of 1.1 million hectares	March 31, 2031
				Annual GHG emission reductions	Annually increasing emission reductions, reaching up to 2 megatonnes (Mt) CO₂e per year by 2030	March 31, 2031 (final results to be reported in 2032-33 Departmental Results Report)
				Projected long-term (2050) GHG emission reductions	Projected emission reduction of up to 11-12 megatonnes (Mt) CO₂e per year by 2050	March 31, 2031 (final results to be reported in 2032-33 Departmental Results Report)
			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 31, 2024)	March 31, 2031
			Achieve environmental co-benefits through tree planting	Cumulative total area planted that contributes to increased forest resilience to climate change	Annually increasing, with final target to be determined by March 31, 2024	March 31, 2031
			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 (500+ FTEs) and medium (100-499 FTEs) organization funding recipients that have Diversity and Inclusion Plans	Annually increasing, with 100% of large and medium organization funding recipients having Diversity and Inclusion Plans by March 31, 2031	March 31, 2031
				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	March 31, 2031

Theme 1 Horizontal Initiative Activities^{Footnote 8}
Departments	Link to department’s Program Inventory	Horizontal initiative activity (activities)	Total federal funding allocated to each horizontal initiative activity (dollars)	2023-24 planned spending for each horizontal initiative activity (dollars)	2023-24 horizontal initiative activity expected result(s)	2023-24 horizontal initiative activity performance indicator(s)	2023-24 horizontal initiative activity target(s)	Date to achieve horizontal initiative activity target^{Footnote 9}
NRCan	Forest Climate Change Program	2BT Activity 1: Provinces / territories (PT) stream	$1,350,000,000	$127,599,668	PTs increase incremental tree planting	Cumulative total number of incremental trees planted through PT stream	Annually increasing; interim target TBD by March 31, 2024; final target of 1.16 - 1.19 billion trees	Interim target by March 31, 2026; final target by March 31, 2031
NRCan	Forest Climate Change Program	2BT Activity 1: Private Land stream	$660,000,000	$62,382,060	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 March 31, 2024; final target more than 500 million trees	Interim target by March 31, 2026; final target by March 31, 2031
NRCan	Forest Climate Change Program	2BT Activity 1: Private Land stream	$660,000,000	$62,382,060	Incremental tree planting on private lands is increased	Number of landowners supported through Private Land stream	Interim and final targets TBD by March 31, 2024	Interim target by March 31, 2026; final target by March 31, 2031
NRCan	Forest Climate Change Program	2BT Activity 1: Urban Land stream	$500,000,000	$47,259,136	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 March 31, 2024; final target 5-7 million trees	Interim target by March 31, 2026; final target by March 31, 2031
NRCan	Forest Climate Change Program	2BT Activity 1: Urban Land stream	$500,000,000	$47,259,136		Number of communities supported through Urban Land stream	Interim and final targets TBD by March 31, 2024	Interim target by March 31, 2026; final target by March 31, 2031
NRCan	Forest Climate Change Program	2BT Activity 1: Indigenous stream	$500,000,000	$47,259,136	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	March 31, 2031
NRCan	Forest Climate Change Program	2BT Activity 1: Indigenous stream	$500,000,000	$47,259,136		Number of Indigenous organizations supported	Interim and final targets TBD by March 31, 2024	Interim target by March 31, 2026; final target by March 31, 2031
NRCan	Forest Climate Change Program	2BT Activity 1: Federal Land stream	$50,000,000	$2,283,220	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 March 31, 2024	Interim target by March 31, 2026; final target by March 31, 2031
NRCan	Forest Climate Change Program	2BT Activity 2: Estimate and report on GHG impacts - new	$25,000,000	$2,574,387	2BT reports on annual GHG impacts	Production of estimates of 2BT - supported emission reductions for Canada’s GHG National Inventory Report	Estimates produced annually	Annual, starting March 31, 2024
NRCan	Forest Climate Change Program	2BT Activity 2: Estimate and report on GHG impacts - existing	$19,884,439	$1,990,359	2BT reports on annual GHG impacts		Estimates produced annually	Annual, starting March 31, 2024
NRCan	Forest Climate Change Program	2BT Activity 3: NRCan research to improve 2BT outcomes - new	$7,200,000	$741,424	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 March 31, 2024	Interim target by March 31, 2026; final target by March 31, 2031
NRCan	Forest Climate Change Program	2BT Activity 3: NRCan research to improve 2BT outcomes - existing	$11,961,506	$1,197,303

Theme 1 Horizontal Initiative Activities^{Footnote 10}
Departments	Link to department’s Program Inventory	Horizontal initiative activity (activities)	Total federal funding allocated to each horizontal initiative activity (dollars)	2023-24 Planned spending for each horizontal initiative activity (dollars)
NRCan	Forest Climate Change Program	2BT Other Costs – Support for Activity #1	$50,447,990	$5,194,907
		2BT Other 2BT Costs – Capital	$4,300,000	$400,000
		2BT Other Costs – Other	$9,598,092	$956,073
		2BT Other Costs – Other Existing	$901,195	$90,216

Theme 2 Details^{Footnote 11}
Name of theme	Total federal theme funding allocated (dollars)	2023-24 Federal theme planned spending (dollars)	Theme outcome(s)	Theme performance indicator(s)	Theme target(s)	Date to achieve theme target^{Footnote 12}
Nature Smart Climate Solutions	$631,092,147	$72,835,226	Reduce GHG emissions in Canada through NSCS.	Annual GHG emission reductions (Mt)	Annually increasing emission reductions, reaching 2-4 megatonnes (Mt) CO₂e per year	March 31, 2031 (results to be reported in 2032-33 Departmental Results Report)
			Reduce GHG emissions in Canada through NSCS.	Projected long-term (2050) GHG emission reductions	Projected emission reduction of 2-4 megatonnes (Mt) CO₂e per year by 2050	March 31, 2031 (results to be reported in 2032-33 Departmental Results Report)
			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.	March 31, 2031
			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 (to be confirmed by March 31, 2024)	Annual, starting in 2023

Theme 2 Horizontal Initiative Activities^{Footnote 13}
Departments	Link to department’s Program Inventory	Horizontal initiative activity (activities)	Total federal funding allocated to each horizontal initiative activity (dollars)	2023-24 planned spending for each horizontal initiative activity (dollars)	2023-24 horizontal initiative activity expected result(s)	2023-24 horizontal initiative activity performance indicator(s)	2023-24 horizontal initiative activity target(s)	Date to achieve horizontal initiative activity target^{Footnote 14}
ECCC	Clean Growth and Climate Change Mitigation	NSCS Activity 1: Science for Initiative Delivery and Accountability	$50,068,622	$6,253,953	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	March 31, 2031
ECCC	Habitat Conservation and Protection	NSCS Activity 2: Place-based Actions	$462,035,899	$52,993,599	Partners carry out place-based climate smart ecosystem activities	Total area stewarded for GHG mitigation	2,200 km²	March 31, 2031
ECCC	Habitat Conservation and Protection	NSCS Activity 2: Place-based Actions	$462,035,899	$52,993,599		Total area secured for GHG mitigation	63 km²	March 31, 2031
ECCC	Habitat Conservation and Protection	NSCS Activity 2: Place-based Actions	$40,877,470	$5,156,885	Indigenous partners are engaged in climate smart ecosystems	Number of indigenous-led projects supported	TBD by March 31, 2024	Interim target by March 31, 2026; final target by March 31, 2031
ECCC	Habitat Conservation and Protection	NSCS Activity 3: Sector-based Policy	$78,110,156	$8,430,789	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 March 31, 2026; final target by March 31, 2031. Reported at least twice during the initiative.

Theme 3 Details^{Footnote 15}
Name of theme	Total federal theme funding allocated (dollars)	2023-24 Federal theme planned spending (dollars)	Theme outcome(s)	Theme performance indicator(s)	Theme target(s)	Date to achieve theme target^{Footnote 16}
Agriculture Climate Solutions^{Footnote 17}	$185,000,000	$23,396,051	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	March 31, 2031 (results to be reported in 2032-33 Departmental Results Report)
				Projected long-term (2050) GHG emission reductions	Projected emission reduction of 0.2-1.78 megatonnes (Mt) CO₂e per year by 2050	March 31, 2031 (results to be reported in 2032-33 Departmental Results Report)
			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	March 31, 2031

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)	2023-24 planned spending for each horizontal initiative activity (dollars)	2023-24 horizontal initiative activity expected result(s)	2023-24 horizontal initiative activity performance indicator(s)	2023-24 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	$23,396,051	Establishment of partnerships to encourage diversity in engagement and participation in co-development	Number of partnerships established, including breakdown for under-represented groups	TBD by March 31, 2024	March 31, 2031
					Producers adoption of carbon sequestering BMPs is increased	Percentage of farms adopting carbon sequestering BMPs in priority locations	TBD by March 31, 2024	March 31, 2031
					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	March 31, 2031
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 2026 NIR: Conservation Tillage; Summer Fallow and Perennial/ Annual Crop Mix; Cover Cropping; Crop Rotations; Fertilizer Use; and Small Scale Features (shelterbelts, etc.)	March 31, 2031
AAFC	Environment and Climate Change Programs	On-Farm Climate Action Fund^{Footnote 18}	$251,254,500	$118,644,283	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. Final target TBD by March 31, 2024	March 31, 2024
AAFC	Environment and Climate Change Programs	On-Farm Climate Action Fund^{Footnote 18}	$251,254,500	$118,644,283	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.	March 31, 2024

Internal Services (IS)
Theme (Federal Organization)	Total federal funding allocated (dollars)	2023-24 Total federal planned spending (dollars)
2 Billion Trees (NRCan)	$10,099,426	$1,067,519
Nature Smart Climate Solutions (ECCC)	$14,483,861	$1,498,338
Agricultural Climate Solutions (AAFC)	ACS – Living Labs: $6,284,033 ACS – OFCAF: $6,398,328 TOTAL: $12,682,361	ACS – Living Labs: $768,948 ACS – OFCAF: $2,223,023 TOTAL: $2,991,971
Total	$37,265,648	$5,557,828

Total Spending, All Themes
Theme	Total federal funding allocated (dollars)	2023-24 Total federal planned spending (dollars)
2 Billion Trees	$3,199,392,648	$300,995,408
Nature Smart Climate Solutions	$631,092,147	$72,835,226
Agricultural Climate Solutions	ACS – Living Labs: $185,000,000 ACS – OFCAF: $251,254,500 TOTAL: $436,254,500	ACS – Living Labs: $23,396,051 ACS – OFCAF: $118,644,283 TOTAL: $142,040,334
Total	$4,266,739,295	$515,870,968

Footnotes

Footnote 1

AAFC’s ACS: On-Farm Climate Action Fund stream is three years (2021-22 to 2023-24)

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Footnote 2

Total federal funding includes AAFC’s OFCAF program, which will be reported through the NCSF Horizontal Initiative.

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Footnote 3

Financial information presented under each theme represents the total federal funding allocated to each theme for all applicable fiscal years. The financial information includes all funding related to that theme, new and existing.

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Footnote 4

Financial information represents the total federal funding allocated to the Horizontal Initiative for all applicable fiscal years, and planned spending for the 2023-24 fiscal year. The financial information includes all funding related to that outcome, new and existing.

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Footnote 5