Horizontal Initiative – Natural Climate Solutions Fund
General Information
Name of horizontal initiative | Natural Climate Solutions Fund (NCSF) |
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Lead department | Natural Resources Canada (NRCan) |
Federal partner departments |
Environment and Climate Change Canada (ECCC) Agriculture and Agri-Food Canada (AAFC) |
Start date of the horizontal initiative | 2021-22 |
End date of the horizontal initiative | 2030-31Footnote 1 |
Description of the horizontal initiative | 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 structures |
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 is 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:
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Total federal funding allocated (from start to end date) (dollars) | $5,499,584,795Footnote 2 |
Total federal planned spending to date (dollars) | $649,178,010 |
Total federal actual spending to date (dollars) | $651,490,037 |
Date of last renewal of the horizontal initiative | Not applicable |
Total federal funding allocated at the last renewal, and source of funding (dollars) | Not applicable |
Additional federal funding received after the last renewal (dollars) | Not applicable |
Total planned spending since the last renewal | Not applicable |
Total actual spending since the last renewal | Not applicable |
Fiscal year of planned completion of next evaluation | 2025-2026, led by NRCan with support from ECCC and AAFC |
Performance highlights |
As lead department for the Natural Climate Solutions Fund (NCSF) Horizontal Initiative, NRCan works closely with Environment and Climate Change Canada and Agriculture and Agri-Food Canada to coordinate implementation and reporting on the three NCSF programs: 2 Billion Trees, Nature Smart Climate Solutions Fund, and Agricultural Climate Solutions. In 2023-24, 289 projects were supported by NCSF programs. Key performance highlights for 2023-24 include:
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Contact information |
Susy Domenicano A/Executive Director, Natural Climate Solutions Division, Canadian Forest Service, Natural Resources Canada 580 Booth Street, Ottawa, ON, K1A 0E6 613-859-1202 |
Shared outcomes:
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 Fund (NSCSF) | T3: Agricultural Climate Solutions (ACS) | Internal Services |
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Shared outcome(s) | Reduce GHG emissions in Canada through planting 2 billion incremental trees while achieving environmental and human wellbeing co-benefits | Reduce GHG emissions in Canada by conserving, restoring and improving the management of ecosystems while achieving biodiversity and human wellbeing co-benefits |
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 |
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Natural Resources Canada (NRCan) | $3,199,392,648 | $10,099,426 | ||
Environment and Climate Change Canada (ECCC) | $1,411,092,147 | $27,074,434 | ||
Agriculture and Agri-Food Canada (AAFC) |
ACS – Living Labs: $185,000,000 ACS – OFCAFFootnote 4: $704,100,000 |
ACS – Living Labs: $6,284,033 ACS – OFCAF: $15,880,219 TOTAL: $22,164,252 |
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Total | $3,199,392,648 | $1,411,092,147 | $889,100,000 | $59,338,112 |
Performance InformationFootnote 5
Name of horizontal initiative: Natural Climate Solutions Fund
Total federal funding allocated (dollars): $5,499,584,795
2023-24 Planned spending (dollars): $588,601,848
2023-24 Actual spending (dollars): $400,311,651
Horizontal Initiative Overview
Horizontal initiative shared outcome(s) | Performance indicator(s) | Target(s) | Date to achieve targetFootnote 6 | 2023-24 Actual results |
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Reduce GHG emissions in Canada through natural climate solutions | Annual GHG emission reductions through NCSF | Annually increasing emissions reductions, reaching 7-10 megatonnes (Mt) CO2e per year by 2030 | March 31, 2031 (final results to be reported in 2032-33 Departmental Results Report) | Not availableFootnote 7 |
Projected long-term (2050) GHG emission reductions through NCSF | Projected emission reduction of 16-20 megatonnes (Mt) CO2e per year by 2050 | March 31, 2031 (final results to be reported in 2032-33 Departmental Results Report) | Not availableFootnote 8 | |
Achieve environmental co-benefits through natural climate solutions | Cumulative total land area restored through NCSF | Annually increasing, with interim target TBD by March 31, 2025Footnote 9; final target of 1.32 Mha restored | Interim target by March 31, 2026; final target by March 31, 2031 | 56,852 hectares |
Cumulative total land area under improved management through NCSF | Annually increasing, with interim target TBD by March 31, 2025; final target of 0.2-0.36 Mha under improved management | 5,431 hectares | ||
Achieve human well being co-benefits through natural climate solutions | Number of aggregate direct jobs created through NCSF | 2285-2771 people directly employed each year | Annual, starting in 2024 | Not availableFootnote 10 |
Theme 1 DetailsFootnote 11
Name of theme: 2 Billion Trees
Total federal funding allocated (dollars): $3,199,392,648
2023-24 Planned spending (dollars): $300,955,408
2023-24 Actual spending (dollars): $117,494,819
Theme outcome(s) | Theme performance indicator(s) | Theme target(s) | Date to achieve theme targetFootnote 12 | 2023-24 Actual results |
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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 | 102,486,699 trees |
Cumulative total area planted with incremental trees | Annually increasing, reaching cumulative total of 1.1 million hectares | March 31, 2031 | 56,582 hectares | |
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) | Not availableFootnote 13 | |
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) | Not availableFootnote 14 | |
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, 2025) | March 31, 2031 | 2,777 hectares |
Cumulative total area planted that contributes to increased forest resilience to climate change | Annually increasing, with final target to be determined by March 31, 2025 | March 31, 2031 | 54,256 hectares | |
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 | Not availableFootnote 15 |
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 | 83% | |
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 | 25.8% women, 2.9% immigrants, 6.5% visible minorities, 7.7% Indigenous women in 2023-24 |
Theme 1 Horizontal Initiative ActivitiesFootnote 16
Departments: Natural Resources Canada
Link to department’s Program Inventory: Forest Climate Change Program
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 Actual spending for each horizontal initiative activity | 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 17 | 2023-24 Actual results |
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2BT Activity 1: Provinces /Territories (PT) stream | $1,350,000,000 | $127,559,668 | $29,450,453 | PTs increase incremental tree planting | Cumulative total number of incremental trees planted through PT stream | Annually increasing; interim target TBD by March 31, 2025 final target of 1.16 - 1.19 billion trees | Interim target by March 31, 2026; final target by March 31, 2031 | 56,432,707 trees |
2BT Activity 1: Private Land stream | $660,000,000 | $62,382,060 | $25,460,611 | 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, 2025; final target more then 500 million trees | Interim target by March 31, 2026; final target by March 31, 2031 | 28,618,118 trees |
Number of landowners supported through Private Land stream | Interim and final targets TBD by March 31, 2025 | Interim target by March 31, 2026; final target by March 31, 2031 | 338 landowners in 2023-24 | |||||
2BT Activity 1: Urban Land stream | $500,000,000 | $47,259,136 | $28,423,617 | Community-led initiatives for urban tree planting and management across Canada are increased | Cumulative total number of incremental trees planted in urban environments | Annually increasing; interim target TBD by March 31, 2025; final target 5-7 million trees | Interim target by March 31, 2026; final target by March 31, 2031 | 1,272,951 trees |
Number of communities supported through Urban Land stream | Interim and final targets TBD by March 31, 2025 | Interim target by March 31, 2026; final target by March 31, 2031 | 66 communities in 2023-24 | |||||
2BT Activity 1: Indigenous stream | $500,000,000 | $47,259,136 | $18,491,820 | 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 | 15,276,362 trees |
Number of Indigenous organizations supported | Interim and final targets TBD by March 31, 2025 | Interim target by March 31, 2026; final target by March 31, 2031 | 8 organizations in 2023-24 | |||||
2BT Activity 1: Federal Land stream | $50,000,000 | $2,283,220 | $3,640,550 | 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, 2025 | Interim target by March 31, 2026; final target by March 31, 2031 | 884,987 trees |
2BT Activity 2: Estimate and report on GHG impacts - New | $25,000,000 | $2,574,387 | $2,790,673 | 2BT reports on annual GHG impacts | Production of GHG emissions estimates for 2BT-supported mitigation activities for Canada’s GHG National Inventory ReportFootnote 18 | Estimates produced annually | Annual, starting March 31, 2024 | Not availableFootnote 19 |
2BT Activity 2: Estimate and report on GHG impacts - Existing | $19,884,439 | $1,990,359 | $135,316 | |||||
2BT Activity 3: NRCan research to improve 2BT outcomes - New | $7,200,000 | $741,424 | $803,710 | 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, 2025 | Interim target by March 31, 2026; final target by March 31, 2031 | 18 scientific/technical articles and reports |
2BT Activity 3: NRCan research to improve 2BT outcomes - Existing | $11,961,506 | $1,197,303 | $38,971 |
Theme 1 Other Administrative CostsFootnote 20
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 Actual spending for each horizontal initiative activity (dollars) |
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NRCan | Forest Climate Change Program | 2BT Other Costs – Support for Activity 1 | $50,447,990 | $5,194,907 | $5,631,194 |
2BT Other 2BT Costs – Capital | $4,300,000 | $400,000 | $400,000 | ||
2BT Other Costs – Other | $9,598,091 | $956,073 | $1,070,169 | ||
2BT Other Costs – Other Existing | $901,195 | $90,216 | $90,216 |
Theme 2 DetailsFootnote 21
Name of theme: Nature Smart Climate Solutions Fund
Total federal theme funding allocated (dollars): $1,411,092,147
2023-24 Federal theme planned spending (dollars): $145,606,106
2023-24 Federal theme actual spending (dollars): $146,499,524
Theme outcome(s) | Theme performance indicator(s) | Theme target(s) | Date to achieve theme targetFootnote 22 | 2023-24 Actual results |
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Reduce GHG emissions in Canada through NSCSF | Annual GHG emission reductions (Mt) | Annually increasing emission reductions, reaching 5-7 megatonnes (Mt) CO2e per year | March 31, 2031 (results to be reported in 2032-33 Departmental Results Report) | Not availableFootnote 23 |
Projected long-term (2050) GHG emission reductions | Projected emission reduction of 5-7 megatonnes (Mt) CO2e per year by 2050 | March 31, 2031 (results to be reported in 2032-33 Departmental Results Report) | Not availableFootnote 24 | |
Land area supporting reduced GHG emissions is increased | Cumulative total area restored | Annually increasing, reaching a cumulative total of 0.22 Mha of area restored | March 31, 2031 | Not availableFootnote 25 |
Cumulative total area under improved management | Annually increasing, reaching cumulative total of 0.06-0.16 Mha of area under improved management | March 31, 2031 | Not availableFootnote 26 | |
Achieve human wellbeing co-benefits through climate smart activities | Number of direct jobs | 41 direct jobs in 2021, 55 in 2022, 10-year target of 1626-2717 jobs; 185-271 people directly employed each year due to NSCSF, starting in 2025 (to be confirmed by March 31, 2025) | Annual, starting in 2023 | Not availableFootnote 27 |
Theme 2 Horizontal Initiative ActivitiesFootnote 28
Departments: ECCC
Link to department’s Program Inventory: Clean Growth and Climate Change Mitigation; Habitat Conservation and Protection
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 Actual 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 29 | 2023-24 Actual results |
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NSCSF Strategy 1: Science for Initiative Delivery and Accountability | $155,747,194 | $17,900,148 | $12,282,438 | 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, i.e., Scientific publications and reports supporting, refining, and/or validating inventory methodological accuracy | 12 documented studies resulting in improvement or validations of inventory methodologies | March 31, 2031 | 3 methodological improvements |
NSCSF Strategy 2: Emission Reduction Activities | $1,155,264,257 | $115,294,454 | $124,201,609 | Partners carry out natural climate solutions | Total area stewarded for GHG mitigation | 0.28-0.38 Mha | March 31, 2031 | Not availableFootnote 30 |
Total area secured for GHG mitigation | 0.046-0.156 MhaFootnote 31 | March 31, 2031 | Not availableFootnote 32 | |||||
Net change in policies driving ecosystem conversion relative to the land-base | Positive policy trend in “policy-hectares” | Interim target by March 31, 2026; final target by March 31, 2031; Reported at least twice during the initiative | Not availableFootnote 33 | |||||
Projected cumulative GHG emission reductions by 2050 | TBD by March 31, 2025 | Final target by March 31, 2031 (reported in 2032-33) | Not availableFootnote 34 | |||||
NSCSF Strategy 3: Indigenous-led Natural Climate Solutions | $100,080,696 | $12,411,504 | $10,015,477 | Indigenous partners are engaged in climate smart ecosystems | Number of Indigenous-led projects supported | TBD by March 31, 2025 | Interim target by March 31, 2026; final target by March 31, 2031 | 31 projects |
Theme 3 DetailsFootnote 35
Name of theme: Agricultural Climate Solutions
Total federal theme funding allocated (dollars): $889,100,000
2023-24 Federal theme planned spending (dollars): $142,040,334
2023-24 Federal theme actual spending (dollars): $136,317,308
Theme outcome(s) | Theme performance indicator(s) | Theme target(s) | Date to achieve theme targetFootnote 36 | 2023-24 Actual results |
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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) | Not availableFootnote 37 |
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) | Not availableFootnote 38 | |
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 | 5,431 hectaresFootnote 39 |
Theme 3 Horizontal Initiative Activities
Departments: Agriculture and Agri-Food Canada
Link to department’s Program Inventory: Environment and Climate Change Programs
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 Actual 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 | 2023-24 Actual results |
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Establishment of a pan-Canadian wide network of Living Labs | $185,000,000 | $23,396,051 | $22,726,869 | Establishment of partnerships to encourage diversity in engagement and participation in co-development | Number of partnerships established, including breakdown for under-represented groups | Preliminary analysis projects a target of 900 partnerships, based on the current data (target to be updated by March 31, 2025, pending 2023-24 data)Footnote 40 | March 31, 2031 | Not availableFootnote 41 |
Producers’ adoption of carbon sequestering BMPs is increased | Percentage of farms adopting carbon sequestering BMPs in priority locations | TBD by March 31, 2025 | March 31, 2031 | Not availableFootnote 42 | ||||
Sequestration of GHGs on Canadian agricultural lands is increased | Increase in annual Land Sector GHG sink due to ACS by March 31, 2031 | 0.2-1.78 MtCO2e | March 31, 2031 | Not availableFootnote 43 | ||||
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 | Not availableFootnote 44 | |||
On-Farm Climate Action FundFootnote 45 | $704,100,000 | $118,644,283 | $113,590,439 | Increased adoption of beneficial management practices (fertilizer and nitrogen management, cover cropping, and rotational grazing) | Cumulative total land area under improved management | Annually increasing; preliminary analysis projects a target of 3.9 million acres (1.6 million hectares) (target to be updated by March 31, 2025 pending 2023-24 data)Footnote 46 | March 31, 2028 | 1.32 MhaFootnote 47 |
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:
GHG emissions reduction projected to 2030 due to adoption of BMPs in two areas:
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Annually increasing; preliminary analysis projects a target of up to 2.88 Megatonnes (Mts) of carbon dioxide equivalent (CO2e) of GHG emissions by 2028 (target to be updated by March 31, 2025 pending 2023-24 data)Footnote 48 | March 31, 2028 | 0.18 Mt CO2eFootnote 49 |
Internal Services (IS)
Theme (Federal Organization) | Total federal funding allocated (dollars) |
2023-24 Total federal planned spending (dollars) |
2023-24 Actual spending (dollars) |
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2 Billion Trees (NRCan) | $10,099,427 | $1,067,519 | $1,067,519 |
Nature Smart Climate Solutions (ECCC) | $27,074,434 | $3,138,791 | $3,138,791 |
Agricultural Climate Solutions (AAFC) |
ACS – Living Labs: $6,284,033 ACS – OFCAF: $15,880,219 TOTAL: $22,164,252 |
ACS – Living Labs: $768,948 ACS – OFCAF: $2,223,023 TOTAL: $2,991,971 |
ACS – Living Labs: $768,948 ACS – OFCAF: $2,223,023 TOTAL: $2,991,971 |
Total | $59,338,113 | $7,198,281 | $7,198,281 |
Total Spending, All Themes
Theme | Total federal funding allocated (dollars) |
2023-24 Total federal planned spending (dollars) |
2023-24 Total federal actual spending (dollars) |
---|---|---|---|
2 Billion Trees | $3,199,392,648 | $300,955,408 | $117,494,819 |
Nature Smart Climate Solutions | $1,411,092,147 | $145,606,106 | $146,499,524 |
Agricultural Climate Solutions |
ACS – Living Labs: $185,000,000 ACS – OFCAF: $704,100,000 TOTAL: $889,100,000 |
ACS – Living Labs: $23,396,051 ACS – OFCAF: $118,644,283 TOTAL: $142,040,334 |
ACS – Living Labs: $22,726,869 ACS – OFCAF: $113,590,439 TOTAL: $136,317,308 |
Total | $5,499,584,795 | $588,601,848 | $400,311,651 |
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