Horizontal initiative – Natural Climate Solutions Fund 2024-25

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	2030-31^{Footnote 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: 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)	$5,449,584,795^{Footnote 2}
Total federal planned spending to date (dollars)	$1,770,224,556
Total federal actual spending to date (dollars)	$1,230,998,606
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 2024-25, 321 projects were supported by NCSF programs. Key performance highlights for 2024-25 include: Continued progress towards contributing to the Government of Canada’s goal of planting two billion incremental trees through the 2 Billion Trees program (2BT) led by Natural Resources Canada (NRCan). In 2024-25, 2BT signed multiple amendments and new contribution agreements that represented plans to plant an additional 434 million trees. As of March 31, 2025, the program has agreements committed or under negotiation to plant 988 million trees, representing approximately $2 billion in funding. In 2024-25, 2BT supported 143 projects. In 2024, funded organizations reported the planting of 66.9 million trees, representing 240 distinct species at more than 3,400 sites in 10 provinces. Projects funded through the program have included capacity building; support for species at risk, including woodland caribou; creation and restoration of forest ecosystems on lands damaged by wildfire, pests and other disturbances; increased carbon capture; and the creation of parks and greenspaces in and around cities towards the building of climate-resilient communities. In 2024-25, 24% of projects that received funding were urban, and 32% were Indigenous-led.^{Footnote 3} The Nature Smart Climate Solutions Fund (NSCSF) led by Environment and Climate Change Canada (ECCC) is actively supporting 153 projects across its three strategies, with a total investment of $94.2 million in 2024–25. During this period, the NSCSF supported projects that contributed to reducing greenhouse gas emissions, advanced engagement and capacity-building efforts, fostered collaboration with partners and stakeholders and facilitated the dissemination of new information on natural climate solutions. Together, these projects will reduce greenhouse gas emissions, improve the state of knowledge on natural climate solutions, and support the leadership of Indigenous peoples in advancing natural climate solutions and participating in research and data collection. Under Strategy 1: Science for Initiative Delivery and Accountability, ECCC funded 56 projects for a total of $9.6 million. These projects will strengthen Canada’s knowledge base on natural climate solutions by supporting research in carbon mapping and quantification, analyzing the drivers and emissions associated with ecosystem disturbances, deepening the understanding of biodiversity co-benefits, and enhancing the Canadian National Wetland Inventory. For instance, a first version of an ecozone map for the Hudson Bay Lowland has been completed, along with carbon mapping, biodiversity modelling, and prairie change analysis from 1984 to present. These efforts have also supported Indigenous-led biodiversity-carbon assessments and policy development. Wetland mapping under the Canadian National Wetland Inventory has expanded to 3.39 million km², with new data from multiple provinces and Indigenous organizations. Over 60 scientific outputs since 2021 have also contributed to the National Greenhouse Gas Inventory improvements. Under Strategy 2: Emission Reduction Activities, ECCC invested $76 million in 63 emission reductions projects in 2024-25 that will contribute to Canada's 2030 and 2050 greenhouse gas reduction targets while providing co-benefits for Indigenous reconciliation, biodiversity and human well-being. Initial results from 13 completed projects indicate that NSCSF is contributing to the protection of close to 12,000 hectares of carbon-rich ecosystems and restoration of 5,000 hectares of degraded wetlands and grasslands which will lead to 0.062 megatonnes of greenhouse gas emission reductions annually in 2030. Those projects also reported having benefits for 59 federally listed species at risk. Under Strategy 3: Indigenous-led Natural Climate Solutions, ECCC supported 34 projects for a total of $8.4 million in 2024-25. These projects are led by First Nations, Métis and Inuit, and provide funding for Indigenous peoples to undertake natural climate solutions projects in accordance with their unique needs and identified priorities, build capacity, and participate in research and data collection activities that are bridging, braiding and weaving Indigenous science and traditional knowledge with western science approaches. Continued support to farmers to increase soil carbon sequestration, reduce GHG emissions, and improve resiliency to climate change through the two streams of the Agricultural Climate Solutions Program (ACS) led by Agriculture and Agri-Food Canada (AAFC). In 2024–25, work continued for the nationwide network of living labs under the ACS Living Labs stream. Since the start of the initiative, 14 living labs, engaging over 450 organizations/associations and over 500 producers, have been established to co-develop, test, and monitor Beneficial Management Practices (BMP) on farms that sequester carbon, mitigate climate change, and provide environmental co-benefits on soil health, water quality and biodiversity. The newest living labs co-developed, tested and evaluated numerous BMPs for the 2024 growing season including, as examples, cover crops following wheat for fall grazing, optimizing nitrogen use with dual inhibitors, and edge-of-field wetland. The more established living labs (those that were in place for their 2nd field season in 2024-25) continued to evaluate the BMPs to suit regional conditions and maximize climate change mitigation from participating farms. Over 100 unique BMPs were reported as being under development across the network. The ACS On-Farm Climate Action Fund stream, now extended until 2028, continued to attract new producers in 2024–25 seeking to adopt BMPs. To date, thousands of farmers across Canada, including Métis producers, have participated in the program, taking action on their farms by implementing eligible cover cropping, nitrogen management and rotational grazing BMPs. In January 2025, AAFC announced the allocation of $300 million for an expansion phase (2025-28) to continue to help farmers become climate resilient over the next 3 years. During 2024-25, 11 initial recipients and two selected organizations in Saskatchewan and Newfoundland and Labrador submitted plans for the expansion phase. The expansion phase plans required, among other things, details on how the project would further enhance adoption of eligible BMPs and support outreach, education, and training. The additional funding will also fund additional merit-based BMPs to support immediate on-farm adoption and data collection of BMPs with promising GHG reduction or carbon sequestration benefits.
Contact information	Joanne Pereira-Ekström Executive Director, Natural Climate Solutions Division, Canadian Forest Service, Natural Resources Canada 580 Booth Street, Ottawa, ON, K1A 0E6 (613) 794-1428 Joanne.Pereira-Ekstrom@nrcan-rncan.gc.ca

Shared outcomes:

Horizontal initiative framework: departmental funding by theme (dollars) ^{Footnote 4}

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)		$1,361,092,147		$27,074,434
Agriculture and Agri-Food Canada (AAFC)			ACS – Living Labs: $185,000,000 ACS – OFCAF^{Footnote 5}: $704,100,000	ACS – Living Labs: $6,284,033 ACS – OFCAF: $15,880,219 TOTAL: $22,164,252
Total	$3,199,392,648	$1,361,092,147	$889,100,000	$59,338,112

Performance Information^{Footnote 6}

Name of horizontal initiative: Natural Climate Solutions Fund

Total federal funding allocated (dollars): $5,449,584,795

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

2024-25 Actual spending (dollars): $475,115,396

Horizontal Initiative Overview

Horizontal initiative shared outcome(s)	Performance indicator(s)	Target(s)	Date to achieve target^{Footnote 7}	2024-25 Actual results
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 available^{Footnote 8}
	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 available^{Footnote 9}
Achieve environmental co-benefits through natural climate solutions	Cumulative total land area restored through NCSF	Annually increasing, with interim target TBD by March 31, 2026^{Footnote 10}; final target of 1.32 Mha restored	Interim target by March 31, 2026; final target by March 31, 2031	0.101 Mha^{Footnote 11}
	Cumulative total land area under improved management through NCSF	Annually increasing, with interim target TBD by March 31, 2026; final target of 0.2-0.36 Mha under improved management		0.0275 Mha^{Footnote 12}
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 available^{Footnote 13}

Theme 1 Details^{Footnote 14}

Name of theme: 2 Billion Trees

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

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

2024-25 Actual spending (dollars): $218,351,163

Theme outcome(s)	Theme performance indicator(s)	Theme target(s)	Date to achieve theme target	2024-25 Actual results
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	173,852,472 trees
	Cumulative total area planted with incremental trees	Annually increasing, reaching cumulative total of 1.1 million hectares	March 31, 2031	95,981 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 available^{Footnote 15},^{Footnote 16}
	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 available^{Footnote 17}
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, 2026)	March 31, 2031	7,703 hectares
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, 2026	March 31, 2031	90,212 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 available^{Footnote 18}
	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	77% in 2024-25
	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	23.5% women, 5% immigrants, 8% visible minorities, 2.1% Indigenous women in 2024-25

Theme 1 Horizontal Initiative Activities^{Footnote 19}

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)	2024-25 Planned spending for each horizontal initiative activity (dollars)	2024-25 Actual spending for each horizontal initiative activity	2024-25 Horizontal initiative activity expected result(s)	2024-25 Horizontal initiative activity performance indicator(s)	2024-25 Horizontal initiative activity target(s)	Date to achieve horizontal initiative activity target	2024-25 Actual results
2BT Activity 1: Provinces /Territories (PT) stream	$1,350,000,000	$152,491,694	$57,706,977	PTs increase incremental tree planting	Cumulative total number of incremental trees planted through PT stream	Annually increasing; interim target TBD by March 31, 2026; final target of 1.16 - 1.19 billion trees	Interim target by March 31, 2026; final target by March 31, 2031	96,588,971 trees
2BT Activity 1: Private Land stream	$660,000,000	$74,551,495	$47,049,111	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, 2026; final target more than 500 million trees	Interim target by March 31, 2026; final target by March 31, 2031	48,721,213 trees
2BT Activity 1: Private Land stream	$660,000,000	$74,551,495	$47,049,111	Incremental tree planting on private lands is increased	Number of landowners supported through Private Land stream	Interim and final targets TBD by March 31, 2026	Interim target by March 31, 2026; final target by March 31, 2031	871 landowners in 2024-25
2BT Activity 1: Urban Land stream	$500,000,000	$56,478,405	$35,635,942	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, 2026; final target 5-7 million trees	Interim target by March 31, 2026; final target by March 31, 2031	2,084,440 trees
2BT Activity 1: Urban Land stream	$500,000,000	$56,478,405	$35,635,942		Number of communities supported through Urban Land stream	Interim and final targets TBD by March 31, 2026	Interim target by March 31, 2026; final target by March 31, 2031	83 communities in 2024-25
2BT Activity 1: Indigenous stream	$500,000,000	$56,478,405	$61,848,884	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	25,130,607 trees
2BT Activity 1: Indigenous stream	$500,000,000	$56,478,405	$61,848,884		Number of Indigenous organizations supported	Interim and final targets TBD by March 31, 2026	Interim target by March 31, 2026; final target by March 31, 2031	33 organizations in 2024-25
2BT Activity 1: Federal Land stream	$50,000,000	$3,355,041	$4,106,211	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, 2026	Interim target by March 31, 2026; final target by March 31, 2031	1,327,241 trees
2BT Activity 2: Estimate and report on GHG impacts - New	$25,000,000	$2,574,388	$2,754,060	2BT reports on annual GHG impacts	Production of GHG emissions estimates for 2BT-supported mitigation activities for Canada’s GHG National Inventory Report^{Footnote 20}	Estimates produced annually	Annual, starting March 31, 2024	Included from NIR2023 onward^{Footnote 21}
2BT Activity 2: Estimate and report on GHG impacts - Existing	$19,884,439	$1,990,359	$285,677	2BT reports on annual GHG impacts		Estimates produced annually	Annual, starting March 31, 2024	Included from NIR2023 onward^{Footnote 21}
2BT Activity 3: NRCan research to improve 2BT outcomes - New	$7,200,000	$741,424	$793,166	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, 2026	Interim target by March 31, 2026; final target by March 31, 2031	31 scientific/technical articles and reports
2BT Activity 3: NRCan research to improve 2BT outcomes - Existing	$11,961,506	$1,197,303	$82,275					31 scientific/technical articles and reports

Theme 1 Other Administrative Costs^{Footnote 22}

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)	2024-25 Actual 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	$5,557,315
		2BT Other 2BT Costs – Capital	$4,300,000	$400,000	$300,927
		2BT Other Costs – Other	$9,598,092	$956,073	$1,072,883
		2BT Other Costs – Other Existing	$901,195	$90,216	$90,216

Theme 2 Details^{Footnote 23}

Name of theme: Nature Smart Climate Solutions Fund

Total federal theme funding allocated (dollars): $1,361,092,147

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

2024-25 Federal theme actual spending (dollars): $114,020,713

Theme outcome(s)	Theme performance indicator(s)	Theme target(s)	Date to achieve theme target^{Footnote 24}	2024-25 Actual results
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 available^{Footnote 25}
Reduce GHG emissions in Canada through NSCSF	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 available ^{Footnote 26}
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 available^{Footnote 27}
Land area supporting reduced GHG emissions is increased	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 available^{Footnote 28}
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, 2026)^{Footnote 29}	Annual, starting in 2023	Not available^{Footnote 30}
	Percentage of under-represented groups in the climate smart and related activity workforce of funding recipients	Annually increasing; final targets of 28% immigrants, 30% visible minorities, 7.5% Indigenous peoples, with at least 1/4 of them Indigenous women, in climate smart and related activity workforce supported by NSCSF	March 31, 2031	Not available^{Footnote 31}

Theme 2 Horizontal Initiative Activities^{Footnote 32}

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)	2024-25 Actual spending for each horizontal initiative activity (dollars)	2024-25 Horizontal initiative activity expected result(s)	2024-25 Horizontal initiative activity performance indicator(s)	2024-25 Horizontal initiative activity target(s)	Date to achieve horizontal initiative activity target^{Footnote 33}	2024-25 Actual results
NSCSF Strategy 1: Science for Initiative Delivery and Accountability	$155,747,194	$22,146,084	$21,406,084	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	One (1) relevant improvement to NCSF was implemented in the 2025 National Greenhouse Gas Inventory Report.
NSCSF Strategy 2: Emission Reduction Activities	$1,105,264,257	$123,726,833	$83,174,651	Partners carry out natural climate solutions	Total area stewarded for GHG mitigation	0.28-0.38 Mha	March 31, 2031	Not available^{Footnote 34}
					Total area secured for GHG mitigation	0.046-0.156 Mha^{Footnote 35}	March 31, 2031	Not available^{Footnote 36}
					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 available^{Footnote 37}
					Annual GHG emission reductions (Mt)	Annually increasing emission reductions, reaching 5-7 megatonnes (Mt) CO2e per year	Final target by March 31, 2031 (reported in 2032-33)	Not available^{Footnote 38}
					Number of Indigenous-led projects supported	Increasing number of projects up to a total of 30 projects having been supported by 2030-2031	Annual, starting in 2022-23. Final target by 2031.	7 projects
NSCSF Strategy 3: Indigenous-led Natural Climate Solutions	$100,080,696	$12,259,371	$9,439,978	Indigenous partners are engaged in climate smart ecosystems	Number of Indigenous-led projects supported	Increasing number of projects up to a total of 60 projects having been supported by 2030-31	Annual, starting in 2022-23. Final target by 2031.	30 projects
NSCSF Strategy 3: Indigenous-led Natural Climate Solutions	$100,080,696	$12,259,371	$9,439,978	Indigenous partners are engaged in climate smart ecosystems	Percentage of Indigenous-led projects that contribute to GHG emission reductions	60% by 2030-31	Annual. Baseline is 10% 2023-24. Final target by 2030-31.	3.33%

Theme 3 Details^{Footnote 39}

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

2024-25 Federal theme actual spending (dollars): $142,743,520

Theme outcome(s)	Theme performance indicator(s)	Theme target(s)	Date to achieve theme target^{Footnote 40}	2024-25 Actual results
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 available^{Footnote 41}
	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 available^{Footnote 42}
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	Not available^{Footnote 43}

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)	2024-25 Actual spending for each horizontal initiative activity (dollars)	2024-25 Horizontal initiative activity expected result(s)	Horizontal initiative activity performance indicator(s)	Horizontal initiative activity target(s)	Date to achieve horizontal initiative activity target	2024-25 Actual results
Establishment of a pan-Canadian wide network of Living Labs	$185,000,000	$23,450,863	$23,370,835	Establishment of partnerships to encourage diversity in engagement and participation in co-development	Number of partnerships established, including breakdown of under-represented groups for core producers^{Footnote 44}	1100 ^{Footnote 45}	March 31, 2031	Not available^{Footnote 46}
				Producers’ adoption of carbon sequestering BMPs is increased	Number and percentage of farms adopting carbon sequestering BMPs in the Living Labs areas ^{Footnote 47}	Number of farms: 2800 ^{Footnote 48} Percentage (%) of farms: N/A ^{Footnote 49}	March 31, 2031	Not available^{Footnote 50}
				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 available^{Footnote 51}
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 available^{Footnote 52}
On-Farm Climate Action Fund^{Footnote 53}	$704,100,000	$123,925,508	$119,372,685	Increased adoption of beneficial management practices (fertilizer and nitrogen management, cover cropping, and rotational grazing)	Cumulative total land area under improved management	6.6 million hectares ^{Footnote 54}	March 31, 2028	Not available^{Footnote 55}
On-Farm Climate Action Fund^{Footnote 53}	$704,100,000	$123,925,508	$119,372,685	Greenhouse gas (GHG) emissions are reduced in the Canadian agriculture sector	Tonnes of carbon sequestration and greenhouse gas emissions reduction from the adoption of nitrogen management, cover cropping, rotational grazing, and merit-based BMPs ^{Footnote 56}	Annually increasing; preliminary analysis projects a target of up to 2.74 Megatonnes (Mts) of carbon dioxide equivalent (CO₂e) of GHG emissions by 2028.^{Footnote 57}	March 31, 2028	Not available^{Footnote 58}

Internal Services (IS)

Theme (Federal Organization)	Total federal funding allocated (dollars)	2024-25 Total federal planned spending (dollars)	2024-25 Actual spending (dollars)
2 Billion Trees (NRCan)	$10,099,426	$1,067,519	$1,067,519
Nature Smart Climate Solutions (ECCC)	$27,074,434	$3,172,862	$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	ACS – Living Labs: $784,089 ACS – OFCAF: $2,769,245 TOTAL: $3,553,334
Total	$59,338,112	$7,793,715	$7,793,715

Total Spending, All Themes

Theme	Total federal funding allocated (dollars)	2024-25 Total federal planned spending (dollars)	2024-25 Total federal actual spending (dollars)
2 Billion Trees	$3,199,392,648	$357,567,230	$218,351,163
Nature Smart Climate Solutions	$1,361,092,147	$158,132,288	$114,020,713
Agricultural Climate Solutions	ACS – Living Labs: $185,000,000 ACS – OFCAF: $704,100,000 TOTAL: $889,100,000	ACS – Living Labs: $23,450,863 ACS – OFCAF: $123,925,508 TOTAL: $147,376,371	ACS – Living Labs: $23,370,835 ACS – OFCAF: $119,372,685 TOTAL: $142,743,520
Total	$5,449,584,795	$663,075,889	$475,115,396

Footnotes

Footnote 1

AAFC’s On-Farm Climate Action Fund (OFCAF) stream is seven years (2021-22 to 2027-28). Funding allocated in Budget 2022 to expand ECCC’s Nature Smart Climate Solutions Fund is five years (2022-23 to 2026-27).

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Footnote 2

Total federal funding includes AAFC’s ACS-OFCAF program, which will be reported through the NCSF Horizontal Initiative, and additional funding allocated in Budget 2022 to expand ECCC’s Nature Smart Climate Solutions Fund.

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Footnote 3

Urban statistic includes the Federation of Canadian Municipalities’ Growing Canada’s Community Canopies initiative, which is expected to support approximately 300 communities by 2031.

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Footnote 4

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 5

The On-Farm Climate Action Fund (OFCAF) is a seven-year (2021-22 to 2027-28) stream of the Agricultural Climate Solutions Program that was established in response to a Budget 2021 commitment. Program reporting for the duration of OFCAF will align with the horizontal results framework of the NCSF and has been included in the NCSF Horizontal Initiative SIT.

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Footnote 6

Financial information represents the total federal funding allocated to the Horizontal Initiative for all applicable fiscal years and planned and actual spending for 2024-25. The financial information includes all funding related to that outcome, new and existing.

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Footnote 7

By 2026, reporting will have started on all indicators.

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Footnote 8

GHG estimates from the 2 Billion Trees program, the Nature Smart Climate Solutions Fund, and the Agricultural Climate Solutions program use different methodologies to calculate GHG impacts. Until methodological differences are resolved, comparisons and combined values are not available. They are anticipated to be available starting in 2025-26.

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Footnote 9

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Footnote 10

The deadline for finalizing the remaining targets for horizontal and program indicators was moved to March 31, 2026 to ensure alignment with program implementation. This footnote applies to all instances where the deadline to develop missing interim and final targets was changed from March 31, 2025 to March 31, 2026.

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Footnote 11

Does not include NSCSF results for 2024-25. See footnote 27 for more details.

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Footnote 12

Does not include data for 2024-25; represents the sum of results from 2022-23 and 2023-24. See footnotes 28 and 43 for more details.

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Footnote 13

A two-year lag in reporting is necessary for data collection and processing. The 2022-23 result was 54, and only includes jobs created through the 2BT program.

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Footnote 14

Financial information represents the total federal funding allocated to the 2BT program for all applicable fiscal years, and planned spending for 2024-25. The financial information includes all funding related to that theme, new and existing.

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Footnote 15

A lag in reporting is necessary for data collection and processing. The 2023-24 result was 0.025 MtCO2e emitted. This value represents the annual GHG impact in 2023 from 2BT program planting on forest lands and urban areas over the period 2021-2023. The values were developed by comparing the emissions and removals from trees planted 2021-2023 with a baseline scenario where planting did not occur.

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Footnote 16

Planted trees take time to grow and, as a result, take time to deliver substantive GHG benefits. While the initial planting of trees generates GHGs due to the energy required to produce, transport, and plant them, trees will provide annual GHG removals in the long run as the forest grows and sequesters carbon.

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Footnote 17

A lag in reporting is necessary for data collection and processing. The 2023-24 result was 7.32 MtCO2e removed. This value represents the expected annual GHG impact of 2BT program planting on forest lands and urban areas in the year 2050. This includes trees already planted from 2021-2023 as well projections for plantings over the remainder of the program from 2024-2030. The values were developed by comparing the emissions and removals for actual and projecting plantings with a baseline scenario where planting did not occur.

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Footnote 18

A two-year lag in reporting is necessary to allow time for data collection and processing. The 2022-23 result was 54 direct, 434 indirect, and 147 induced jobs.

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Footnote 19

Financial information represents the total federal funding allocated to each activity (and stream, for Activity 1) for all applicable fiscal years, and planned spending for 2024-25. The financial information includes all funding related to that activity, new and existing.

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Footnote 20

As the original language did not accurately reflect the result captured, the indicator was revised. The National Inventory Report used for reference does not include emissions “reductions,” but rather emissions “estimates”. The revision reflects this specificity.

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Footnote 21

Estimates of emissions and removals from 2BT afforestation and reforestation activities have been included in Canada's annual National GHG Inventory Report (NIR) beginning in NIR2023 published April of 2023. Estimates for these 2BT activities are not disaggregated from other sources of emissions and removals on forests lands (e.g. commercial harvesting and conservation).

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Footnote 22

This represents other operational costs associated with managing and implementing the 2 Billion Trees program.

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Footnote 23

Financial information represents the total federal funding for all applicable fiscal years and planned and actual spending for 2024-25. The financial information includes all funding related to all activities, new and existing.

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Footnote 24

By 2026, reporting will have started on all indicators.

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Footnote 25

As of 2025-26, this indicator will be reported one year in arrears because data collection timelines do not allow for the public reporting of the reporting year's data. 2023-24 result was 0.062 Mt.

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Footnote 26

As of 2025-26, this indicator will be reported one year in arrears because data collection timelines do not allow for the public reporting of the reporting year's data. 2023-24 result was 0.025 Mt.

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Footnote 27

As of 2025-26, this indicator will be reported one year in arrears because data collection timelines do not allow for the public reporting of the reporting year's data. 2023-24 result was 0.005 Mha.

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Footnote 28

As of 2025-26, this indicator will be reported one year in arrears because data collection timelines do not allow for the public reporting of the reporting year's data. 2023-24 result was 0.0042 Mha.

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Footnote 29

Confirmation of target is delayed to 2026 as additional project reporting is required to inform development of an accurate projection.

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Footnote 30

As of 2025-26, this indicator will be reported one year in arrears because data collection timelines do not allow for the public reporting of the reporting year's data.

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Footnote 31

As of 2025-26, this indicator will be reported one year in arrears because data collection timelines do not allow for the public reporting of the reporting year's data.

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Footnote 32

Financial information represents the total federal funding allocated to each activity for all applicable fiscal years, and planned spending for 2024-25. The financial information includes all funding related to that activity, new and existing.

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Footnote 33

By 2026, reporting will have started on all indicators.

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Footnote 34

As of 2025-26, this indicator will be reported one year in arrears because data collection timelines do not allow for the public reporting of the reporting year's data. 2023-24 result was 0.0092 Mha.

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Footnote 35

Target value has been updated based on revised calculation.

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Footnote 36

As of 2025-26, this indicator will be reported one year in arrears because data collection timelines do not allow for the public reporting of the reporting year's data. 2023-24 result was 0.012 Mha.

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Footnote 37

As of 2025-26, this indicator will be reported one year in arrears because data collection timelines do not allow for the public reporting of the reporting year's data.

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Footnote 38

As of 2025-26, this indicator will be reported one year in arrears because data collection timelines do not allow for the public reporting of the reporting year's data. 2023-24 result was 0.062 Mt.

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Footnote 39

Financial information represents the total federal funding for all applicable fiscal years, and planned and actual spending for 2024-25. The financial information includes all funding related to all activities, new and existing, and also includes funding allocated to Public Services and Procurement Canada and Shared Services Canada.

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Footnote 40

Because the requirement to begin reporting on each indicator varies, not all indicators will have results each year.

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Footnote 41

Results are not expected until 2030.

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Footnote 42

Results are not expected until 2030.

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Footnote 43

Data for 2024-25 is not yet available, as annual performance reports for 2024-25 are due by end of June 2025. The sum of results from 2022-23 and 2023-24 is 23,321 hectares.

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Footnote 44

Changes in wording better reflect the data being collected.

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Footnote 45

This target is calculated based on results from 2022-23 (9 Living Labs) and 2023-24 (14 Living Labs) annual performance reports. AAFC expects a smaller increase of new partnerships in later years of the program. Final target TBD after the launch of ACS-LL Phase II.

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Footnote 46

In 2023-24 a total of 421 new partnerships were established including 188 core producers. Of 188 core producers, 20% women, 2% Indigenous People, 10% youth, 2% visible minorities, 2% official language minority communities, 1% people with disability, and 4% new entrants. Data for 2024-25 will be available in the 2025-26 Departmental Results Report.

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Footnote 47

Changes in wording better reflect the data being collected in Living Labs areas annually (number of farms). Percentage of farms adopting carbon sequestering BMPs will be reported in the final year of the program.

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Footnote 48

The target of number of farms is based on the individual project targets proposed from the existing Living Labs. Final target TBD after the launch of ACS-LL Phase II.

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Footnote 49

AAFC will use the baseline/final surveys information and periphery data from recipients to calculate the percentage in the final year of the program.

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Footnote 50

In 2023-24, the number of farms was 165. Data for 2024-25 will be available in the 2025-26 Departmental Results Report.

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Footnote 51

Results are not expected until 2030.

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Footnote 52

Results not available for 2024-25.

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Footnote 53

The On-Farm Climate Action Fund (OFCAF) is a $670M, seven year (2021-22 to 2027-28) Stream of the Agricultural Climate Solutions Program that was established in response to a Budget 2021 commitment. Therefore, program reporting for the duration of OFCAF will align with the horizontal results framework of the NCSF.

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Footnote 54

The target is based on combining the results from 2022-23 and 2023-24 and the targets outlined in the Contribution Agreements for the expansion phase (2025-28). The target for 2024-25 was estimated to be the average of the results from 2022-23 and 2023-24.

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Footnote 55

Data for 2024-25 is not yet available. The sum of results from 2022-23 and 2023-24 is 2.99 Mha.

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Footnote 56

Changes in wording reflect the fact that this indicator describes one value that combines both carbon sequestration and GHG emissions reduction and that the expansion phase of the program includes merit-based BMPs.

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Footnote 57

The target is currently being calculated using pilot phase results data and expansion phase target data.

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Footnote 58

In 2023-24, carbon sequestration was 0.28 Mt CO2e. Data for 2024-25 will be available in the 2025-26 Departmental Results Report.

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Horizontal initiative – Natural Climate Solutions Fund 2024-25

Natural Climate Solutions Fund (NCSF) – Overview

General Information

Shared outcomes:

Performance Information^{Footnote 6}

Horizontal Initiative Overview

Theme 1 Details^{Footnote 14}

Theme 1 Horizontal Initiative Activities^{Footnote 19}

Theme 1 Other Administrative Costs^{Footnote 22}

Theme 2 Details^{Footnote 23}

Theme 2 Horizontal Initiative Activities^{Footnote 32}

Theme 3 Details^{Footnote 39}

Theme 3 Horizontal Initiative Activities

Internal Services (IS)

Total Spending, All Themes

Horizontal initiative – Natural Climate Solutions Fund 2024-25

Natural Climate Solutions Fund (NCSF) – Overview

General Information

Shared outcomes:

Performance InformationFootnote 6

Horizontal Initiative Overview

Theme 1 DetailsFootnote 14

Theme 1 Horizontal Initiative ActivitiesFootnote 19

Theme 1 Other Administrative CostsFootnote 22

Theme 2 DetailsFootnote 23

Theme 2 Horizontal Initiative ActivitiesFootnote 32

Theme 3 DetailsFootnote 39

Theme 3 Horizontal Initiative Activities

Internal Services (IS)

Total Spending, All Themes

Performance Information^{Footnote 6}

Theme 1 Details^{Footnote 14}

Theme 1 Horizontal Initiative Activities^{Footnote 19}

Theme 1 Other Administrative Costs^{Footnote 22}

Theme 2 Details^{Footnote 23}

Theme 2 Horizontal Initiative Activities^{Footnote 32}

Theme 3 Details^{Footnote 39}