Backgrounder

Canadian International Development Agency: Efforts to address climate change

The Global Environment Facility

The Global Environment Facility (GEF), ratified in 1992 at the United Nations Conference on Environment and Development in Rio de Janeiro, is aimed at assisting developing countries in tackling environmental challenges which have global implications. The GEF is also the principal fund used to finance programs aimed at realizing the objectives of the United Nations Framework Convention on Climate Change, also concluded at Rio in 1992.

Canada has supported the GEF since its creation, with a contribution of $136 million. As one of the most generous donors, Canada obtained a seat at the GEF's Council table, which offers an opportunity to influence policies and priorities for the institution's efforts against climate change and ozone layer depletion, as well as protection of biodiversity and international marine resources.

The GEF has proven itself to be an effective tool in taking action to deal with global environmental problems, prompting donors, including Canada, to support replenishment of the Fund in 1998. Negotiations are underway for this replenishment. To maximize Canadian participation in GEF activities, Canada already has a separate $2 million trust fund with the World Bank to support Canadian firms and individuals in the development of specific GEF projects.

CIDA is also supporting developing countries' efforts to address climate change through a wide range of bilateral programs, including:

CIDA supports India's internationally respected Tata Energy Resources Institute's energy-efficiency project, through initiatives of the Winnipeg-based International Institute for Sustainable Development. The project will enable TERI to promote limits to greenhouse gas emissions, and improve energy-efficiency in India by introducing "green budgeting" and technological, environmental expertise. CIDA's contribution will be $3.8 million.

The Canada-China "Clean Coal" project, which is to be carried out over three-and-a-half years by a consortium led by Babcock and Wilcox, will introduce new technologies for coal use in China to increase efficiency and reduce emissions of sulphur and nitrogen compounds generated by coal-fired power plants. CIDA's contribution is $11.5 million.

In Nicaragua, CIDA supported a $10 million project to improve and expand the country's electricity transmission network, which has reduced energy losses, thereby lowering demand for energy from heavy fuel-oil fired thermal power stations, and in this way, reducing greenhouse gas emissions.

A Petroleum and Natural Gas Regulatory Assistance project to assist Peruvian institutions responsible for monitoring the hydrocarbon sector in developing a regulatory framework to protect the environment. This five-year project will encourage increased use of natural gas, which produces lower emissions of greenhouse gases than oil and coal. CIDA's contribution to the project will be $11.4 million.

The CIDA-supported Brazil Electrical Efficiency Project is drawing on successful Canadian models of demand-side management to change patterns of electricity consumption. The project aims to slow the expansion of electrical energy consumption, thereby reducing the need to construct new sources of greenhouse gas-producing electrical power. This project is being undertaken by BC Hydro International, working with the Brazilian National Energy Efficiency Program, and has a CIDA contribution of $2 million.

A two-year project led by Axys Environmental Consulting Limited will assess the environmental impact of Arctic hydrocarbons in northern Russia where offshore continental shelves contain massive reserves of oil and natural gas. The project will help develop a safe and environmentally responsible hydrocarbon industry in Russia's Arctic region, and improve the ability of Russian Ministry of Environment officials to carry out environmental assessments. CIDA's contribution will be $1.2 million.

Assistance over the past 40 years to India's energy sector. A recent example is CIDA's support to help Indian policy-makers come up with policies congruent with other International Energy Agency member nations. Experts of the Government of India will focus on how to improve management of the energy sector on a more environmentally-sound basis by enabling them to measure carbon dioxide emission reductions. CIDA's contribution is $300,000.