Canada announced details October 1st on $400 million in new and additional support for international efforts to address climate change. The amount represents Canada’s 2010/2011 fiscal year contributions towards the $30 billion in fast-start financing for the 2010-2012 period outlined in the Copenhagen Accord. The intent of the fast-start financing, the bulk of which is intended to flow through the Copenhagen Green Climate Fund, is to enhance actions on climate change in developing countries through supporting mitigation, including efforts to reduce emissions from deforestation and forest degradation, adaptation, technology development and transfer and capacity-building.

Canada’s support is allocated as follows:

Clean Energy

• C$285.7 million – clean energy projects through the World Bank Group’s International Finance Corporation (IFC)
• C$5.8 million – open access to clean energy investment and developing technical expertise through IFC’s Advisory Services

Forestry and Capacity Building

• C$40 million – capacity building and preventing deforestation & forest degradation through the World Bank Forest Carbon Partnership Facility’s Readiness Fund Adaptation
• C$20 million – adaptation needs through the Least Developed Countries Fund
• C$10 million – African adaptation International Development Research Centre
• C$7 million – Ethiopian adaptation and food security through the World Food Programme
• C$5 million – projects in Haiti
• C$3 million – support national climate change targets in Vietnam

Small-Scale Projects and Activities

• C$5 million – for financing priorities and to support participation by developing country representatives in UNFCCC and related negotiations

While this benefaction is Canada’s largest-ever dedicated to an international initiative taking action on climate change, and at $400M is generally perceived to contribute a “fair share” towards the $30B total, the allocations announced have been received with some criticism. These center around the fact that 72% of funds committed are in the form of loans for clean projects through the World Bank, only 11% is dedicated in the form of grants to adaptation efforts in poor countries, and that at least a portion of the funding appears to be taken out of the international aid dollars already announced in Canada’s 2010 budget.

The Fund’s success is considered a critical post-Copenhagen tool in rebuilding the relationship between developing and developed nations (see Delphi’s previous coverage, What’s In Store for Cancun?).

By Cheryl Johnson, .(JavaScript must be enabled to view this email address)