Funding the Future

The report evaluates federal funding programs in Canada, finding that while most allow for natural infrastructure, few incorporate the full range of criteria needed to make it a mainstream alternative to grey infrastructure. It recommends integrating specific enabling criteria, improving access for rural communities, and increasing funding for proactive adaptation.

• An assessment of six federal infrastructure programs exceeding CAD 50 million showed mixed results; while all generally allow funding for natural infrastructure, only the Natural Infrastructure Fund and the Green Municipal Fund’s Local Leadership for Climate Adaptation program are leading by including 12 of 14 identified enabling criteria.
• There is a significant gap between the eligibility of natural infrastructure and actual funding levels, with research indicating that less than 1% of funds from the Canada Community-Building Fund (CCBF), the Disaster Mitigation and Adaptation Fund (DMAF), and the Investing in Canada Infrastructure Program (ICIP) have been allocated to natural infrastructure.
• Local governments, particularly those in small, rural, and remote communities, face substantial barriers to accessing funding, including limited application capacity, insufficient matching funds, and project costs that fall below minimum funding thresholds.
• The document proposes several financial and policy interventions, including the allocation of a new flagship federal program to succeed ICIP, the infusion of CAD 2 billion in DMAF surge funding, and an additional CAD 1 billion per year for 10 years dedicated to proactive adaptation.

APA

International Institute for Sustainable Development (2025). Funding the Future. https://www.iisd.org/system/files/2025-02/federal-programs-funding-natural-infrastructure-summary.pdf

Chicago

International Institute for Sustainable Development. Funding the Future. 2025. https://www.iisd.org/system/files/2025-02/federal-programs-funding-natural-infrastructure-summary.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=Funding the Future |date=February 2025 |url=https://www.iisd.org/system/files/2025-02/federal-programs-funding-natural-infrastructure-summary.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopment2025funding, author = {{International Institute for Sustainable Development}}, title = {{Funding the Future}}, institution = {International Institute for Sustainable Development}, year = {2025}, month = feb, url = {https://www.iisd.org/system/files/2025-02/federal-programs-funding-natural-infrastructure-summary.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }