NRCan 2024-25 Departmental Plan

Horizontal initiatives - Natural Climate Solutions Fund

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 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 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 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) $5,499,584,795Footnote 2
Total federal planned spending to date (dollars) $914,254,275
Total federal actual spending to date (dollars) $251,178,386
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
Planning highlights

2023-24 Planning Highlights

As lead department for the Natural Climate Solutions Fund (NCSF) Horizontal Initiative, Natural Resources Canada will continue to 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.

Key planning highlights for 2022-23 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.
  • Continue to review, negotiate, and sign long-term, multi-year agreements for 2 Billion Trees via the ongoing call for proposals, including advancing Agreements in Principle and long-term contribution agreements with provinces and territories.
  • Continue to implement the co-developed, distinctions-based Indigenous Funding Stream for 2 Billion Trees to support the full participation of Indigenous peoples in natural climate solutions.
  • Pursue engagement and capacity building activities to improve knowledge sharing about existing and potential NSCSF emission reduction projects, generate collaboration and share new information on natural climate solutions. Broader engagement methods such as workshops and more specific bilateral discussions are planned to encourage the development of projects with large emission reductions potential.
  • Launch a new ongoing open call for applications for NSCSF in Spring 2024 which will continue throughout the life of the program, with the immediate aim of advancing projects for 2025/26. NSCSF will also continue to advance science projects aiming to improve the knowledge base on natural climate solutions in Canada.
  • For the Indigenous-led Natural Climate Solutions (ILNCS) stream of NSCSF, calls for applications will occur with timing and type decided by our Partners on a distinctions-based approach. A focus will be on co-benefits to encourage applications that also include these alongside reduction of GHG emissions and carbon capture.
  • Through the ACS Living Labs stream, AAFC will collaboratively implement interactive, on-farm projects to sequester carbon, reduce greenhouse gas emissions, and provide other environmental co-benefits. In 2024-25, the nationwide network of living labs will be approximately at their project mid-points, with farmers, scientists, and other partners working together to co-develop, test, and evaluate solutions that can be broadly and quickly adopted by others across the sector once these solutions have been iteratively refined through the living labs innovation process.
  • The ACS On-Farm Climate Action Fund stream will support farmers in adopting beneficial management practices (BMPs) in the areas of nitrogen management, cover cropping and rotational grazing practices. Specifically, in 2024-25, the program will begin its program extension until 2028 to attract new producers in adopting effective BMPs. The program will formalize a process for the consideration of new BMPs that could be added to those practices already supported, to encourage further adoption and to contribute to enhanced greenhouse gas mitigation efforts.
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

susy.domenicano@nrcan-rncan.gc.ca

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
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

  
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 over ten years (2021-22 to 2030-31)

ACS – OFCAFFootnote 4:

$704,100,000 over seven years (2021-22 to 2027-28)

ACS – Living Labs: $6,284,033

ACS – OFCAF: $15,880,219

TOTAL: $22,164,252
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

2024-25 Planned spending (dollars): $663,075,889

Horizontal Initiative Overview
Horizontal initiative shared outcome(s) Performance indicator(s) Target(s) Date to achieve target(s)Footnote 6
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)
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)
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 0.2-0.36 Mha under improved management
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

Theme 1 DetailsFootnote 7

Name of theme: 2 Billion Trees

Total federal funding allocated (dollars): $3,199,392,648

2024-25 Planned spending (dollars): $357,567,230

Theme outcome(s) Theme performance indicator(s) Theme target(s) Date to achieve theme target(s)Footnote 8
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

Departments: Natural Resources Canada

Link to department’s Program Inventory: Forest Climate Change Program

Theme 1 Horizontal Initiative ActivitiesFootnote 9
Horizontal initiative activity (activities) Total federal funding allocated to each horizontal initiative activity (dollars) 2024-25 Planned spending for each horizontal initiative activity
(dollars)		 Horizontal initiative activity expected result(s) Horizontal initiative activity performance indicator(s) Horizontal initiative activity target(s) Date to achieve horizontal initiative activity targetFootnote 10
2BT Activity 1: Provinces /Territories (PT) stream $1,350,000,000 $152,491,694 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
2BT Activity 1: Private Land stream $660,000,000 $74,551,485 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 then 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
2BT Activity 1: Urban Land stream $500,000,000 $56,478,405 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, 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
2BT Activity 1: Indigenous stream $500,000,000 $56,478,405 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
2BT Activity 1: Federal Land stream $50,000,000 $3,355,041 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
2BT Activity 2: Estimate and report on GHG impacts - New $25,000,000 $2,574,388 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
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 Other Administrative CostsFootnote 11
Departments Link to department’s Program Inventory Horizontal initiative activity (activities) Total federal funding allocated to each horizontal initiative activity (dollars) 2024-25 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 12

Name of theme: Nature Smart Climate Solutions Fund

Total federal theme funding allocated (dollars): $1,411,092,147

2024-25 Federal theme planned spending (dollars): $158,132,288

Theme outcome(s) Theme performance indicator(s) Theme target(s) Date to achieve theme targetFootnote 13
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)
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)
Land area supporting reduced GHG emissions is increased Cumulative total area restored Annually increasing, reaching a cumulative total of 0.22 to Mha of area restored March 31, 2031
Cumulative total area under improved management Annually increasing, with final target of 0.06-0.16 Mha under improved management March 31, 2031
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 to 2717 jobs; 185 to 271 people directly employed each year due to NSCSF, starting in 2025 (targets to be confirmed by end of FY 2023-24) Annual, starting in 2023

Theme 2 Horizontal Initiative ActivitiesFootnote 14

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) 2024-25 Planned spending for each horizontal initiative activity
(dollars)		 Horizontal initiative activity expected result(s) Horizontal initiative activity performance indicator(s) Horizontal initiative activity target(s) Date to achieve horizontal initiative activity targetFootnote 15
NSCSF Strategy 1: Science for Initiative Delivery and Accountability $155,747,194 $22,146,084 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
NSCSF Strategy 2: Emission Reduction Activities $1,155,264,257 $123,726,833 Partners carry out natural climate solutions Total area stewarded for GHG mitigation 0.28-0.38 Mha March 31, 2031
Total area secured for GHG mitigation 0.046-0.216 Mha March 31, 2031
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
Projected cumulative GHG emission reductions by 2050 TBD by March 31, 2024 Final target by March 31, 2031 (reported in 2032-33)
NSCSF Strategy 3: Indigenous-led Natural Climate Solutions $100,080,696 $12,259,371 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

Theme 3 DetailsFootnote 16

Name of theme: Agricultural Climate Solutions

Total federal theme funding allocated (dollars): $889,100,000

2024-25 Federal theme planned spending (dollars): $147,376,371

Theme outcome(s) Theme performance indicator(s) Theme target(s) Date to achieve theme targetFootnote 17
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: 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)		 2024-25 Planned spending for each horizontal initiative activity
(dollars)		 Horizontal initiative activity expected result(s) Horizontal initiative activity performance indicator(s) Horizontal initiative activity target(s) Date to achieve horizontal initiative activity target
Establishment of a pan-Canadian wide network of Living Labs $185,000,000 $23,450,863 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 March 31, 2031 0.2-1.78 MtCO2e March 31, 2031
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
On-Farm Climate Action FundFootnote 18 $704,100,000 $123,925,508 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 (1.96 million acres) of land under improved management. With the top-up this number is increased to 894,960 (2.21 million acres). 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 annual reductions of up to 1.13 Mts CO2e of GHG emissions by 2024. March 31, 2024

Internal Services (IS)

Internal Services (IS)
Theme (Federal Organization) Total federal funding allocated (dollars) 2024-25 Total federal planned spending(dollars)
2 Billion Trees (NRCan) $10,099,426 $1,067,519
Nature Smart Climate Solutions (ECCC) $27,074,434 $3,172,862
Agricultural Climate Solutions (AAFC)

ACS – Living Labs: $6,284,033

ACS – OFCAF: $15,880,219

TOTAL: $22,164,252

ACS – Living Labs: $784,089

ACS – OFCAF: $2,769,245

TOTAL: $3,553,334
Total $59,338,112 $7,793,715

Total Spending, All Themes
Theme Total federal funding allocated (dollars) 2024-25 Total federal planned spending
(dollars)
2 Billion Trees $3,199,392,648 $357,567,230
Nature Smart Climate Solutions $1,411,092,147 $158,132,288
Agricultural Climate Solutions

ACS – Living Labs: $185,000,000

ACS – OFCAF: $704,100,000

TOTAL: $889,100,000

ACS – Living Labs: $784,089

ACS – OFCAF: $2,769,245

TOTAL: $3,553,334
Total $5,499,584,795 $663,075,889
 
Date modified: