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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

2030/2031Footnote 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 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)

$4,266,739,294.89Footnote 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 InformationFootnote 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 targetFootnote 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 DetailsFootnote 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 targetFootnote 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
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 ActivitiesFootnote 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 targetFootnote 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
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
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
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
2BT Activity 2: Estimate and report on GHG impacts - existing $19,884,439 $1,990,359
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
2BT Activity 3: NRCan research to improve 2BT outcomes - existing $11,961,506 $1,197,303

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) 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 DetailsFootnote 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 targetFootnote 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)
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 ActivitiesFootnote 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 targetFootnote 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
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 DetailsFootnote 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 targetFootnote 16
Agriculture Climate SolutionsFootnote 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 FundFootnote 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
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

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