Nature Smart Climate Solutions Fund - Emissions Reduction

Program Category: Climate Adaptation, Climate Mitigation

Program Sub-Category: Environmental Stewardship, Natural Asset Inventories and Management

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Status: Open

Funder

Environment and Climate Change Canada (ECCC)

Deadline Details

The Nature Smart Climate Solutions Fund - Emission Reductions Intake will begin accepting funding applications for projects starting during the 2025-2026 fiscal year on December 1, 2024. There is no deadline to apply. Applications will be reviewed on an ongoing basis until funding for 2025-2026 is allocated.

Funder Organization Type

Federal Government

The purpose of the Nature Smart Climate Solutions Fund (NSCSF) - Emission Reductions Intake is to fund projects that will contribute to Canada’s 2030 Emissions Reduction Plan targets by:

halting or reducing activities that cause greenhouse gas (GHG) emissions through land use or land cover change
restoring areas into functional ecosystems that sequester and store carbon

These activities may occur directly as natural climate solutions that target specific sites to halt threats, restore degraded areas, improve the management of ecosystems or through the development and implementation of policies, programs, incentives or other tools that support emission reductions.

NSCSF funding is available for projects that fall into one or more of the following natural climate solutions:

Avoided conversion: Projects that will help reduce the area (hectares) of ecosystems being converted to other land uses (e.g. forest to agricultural, urban or industrial lands) annually by halting the human activities that cause GHG emissions (i.e. threats).
Improved management: Projects that will help to implement changes in land management practices that would result in emission reductions.
Restoration: Projects that will increase the area of ecosystems being restored annually to optimize their capacity to sequester and store carbon.

Applicants will be required to demonstrate in their application that their project will achieve material, additional and permanent (durable) emission reductions or clearly set the foundation for future activities that will result in emission reductions in 2030 and last until at least 2050. To the extent possible, projects should also be designed to reduce the risk of leakage (i.e. that the GHG-causing activity may simply shift elsewhere).

In addition to GHG emission reductions, the NSCSF will support projects that will provide co-benefits such as biodiversity benefits, contributions to area-based conservation targets, Indigenous reconciliation, human well-being, and support for underrepresented Canadians.

The NSCSF Emissions Reduction intake is part of the Government of Canada's Natural Climate Solutions Fund which will invest over $5 billion from 2021 to 2031. This initiative also consists of the 2 Billion Trees Program, and the Agricultural Climate Solutions Program.

Eligible Community

Domestic or international Indigenous organizations, governments, Individuals, boards, commissions, communities, associations, and authorities including:
- Indigenous not-for-profit organizations.
- District councils, Chief councils, and Tribal councils.
- Indigenous research, academic, and educational institutions; and,
- Indigenous for-profit organizations.
Municipal, and local governments, and their agencies (e.g., Crown corporations).

Specific Eligibility Requirements

Projects must occur in Canada.

Other Eligible Applicants

Indigenous-owned Businesses
Businesses / For-profit
Other
Indigenous Organizations
Non-governmental Organizations / Not-for-Profits
Academic Institutions

Provincial and territorial governments.
Domestic or international not-for-profit organizations, such as charitable and volunteer organizations, professional associations, and non-governmental organizations.
Domestic or international research, academic, and educational institutions.
Canadian individuals.
Domestic or international for-profit organizations, such as small businesses with less than 500 employees, companies, corporations, and industry associations.
Local organizations such as community associations and groups, senior and youth groups, and service clubs.

Range of Funding Available per Project

Under $100 000
From $100 000 to $1 000 000
Over $1 000 000

Description of Funding

Funding will be allocated through contribution agreements for projects starting in fiscal year 2025-2026 (April 1, 2025, to March 31, 2026) with project length varying between 1 to 5 years.
The minimum funding for this intake is $75,000 per project.
The maximum funding for this intake is $50 million per project allocated over a minimum period of 3 years or $15 million maximum per fiscal year per project.
For-profit organizations have a limit of $200,000 per fiscal year for a maximum of $1 million for a 5-year project.

NSCSF has a match funding objective of 1:1.

For non-Indigenous applicants,1:1 matching contribution (from non-federal sources) is sought ($1 confirmed match for $1 NSCSF funding). Preference will be given to projects with contributions that are equal or more than 1:1. Match funding can be cash or in-kind for the full amount and must be directly related to the delivery of the project. Evaluation of the project will consider match funding.

Indigenous applicants are encouraged to describe any match funding they have contributed or obtained, but match funding will not be part of the evaluation of the project. 

Eligible Costs

Planning
Operational and Maintenance Costs
Capital Costs
Community Engagement
Equipment/Material Purchase
Project Management
Staff Costs
Administration Fees

Subject to ECCC review and approval, the eligible costs incurred over the course of conducting a project may include:

Human resource costs, including salaries and benefits
Management and professional service costs, such as accounting, monitoring communications, official languages translation, audit and legal charges
Hospitality, travel (including field costs), and venues/conference expenses in accordance with the Treasury Board Secretariat’s Directive on Travel, Hospitality, Conference, and Event Expenditures
- Hospitality expenditures can include costs related to Indigenous ceremonial offerings to be utilized or consumed during meetings or ceremonies such as traditional medicines, cultural foods, tea and sacred plants
Costs associated with an Indigenous participation or ceremony
Monetary Honoraria offered to Indigenous Elders and/or Knowledge Keepers related to specific participation activities which may include but not be limited to translation and interpretative costs, leading a traditional opening/closing ceremony and/or prayer, the sharing of traditional knowledge and protocols, (including spiritual advice to individuals), and demonstrating traditional art and other practices
Material and supplies costs
Printing, production, and distribution costs
Equipment and Capital Assets purchase or rental, capital asset purchase is not an eligible expenditure for for-profit recipients
Lease of office space
Vehicle rental and operation costs
Contractors required to perform activities related to the Project, including carbon quantification related activities
Cost associated with eligible land securement initiatives and projects such as land costs, legal charges, appraisals, surveys, baseline documentation, land transfer tax; land securement costs are not eligible expenditures for for-profit recipients
A reasonable share of overhead and/or administrative costs which are directly attributable to the carrying out of the project
Any GST/HST that is not reimbursable by Canada Revenue Agency and any PST not reimbursable by the provinces
Other incremental expenditures directly related to the project may be considered in exceptional circumstances (as pre-approved by ECCC Minister or his/her representatives on the basis of recipient provided statement identifying the need, relevance to the project and the estimated cost. The expenditure should also be included on the cash flow statement submitted by the recipient.)

Ineligible Costs

Eligible expenditures also exclude costs related to the production, sale, or export of softwood lumber, costs related to lobbyist fees and stewardship endowments.