Canada Boosts Global Climate Action With CAD263 M Loan to IFAD

Canada and IFAD share a common agenda—to strengthen rural livelihoods, modernise climate-resilient food systems, and uplift the world’s most vulnerable farming communities.

In a powerful demonstration of its growing leadership in global climate action, Canada has announced a CAD263 million (US$187 million) concessional loan to the International Fund for Agricultural Development (IFAD)—the largest such concessional loan Canada has ever extended to the UN-affiliated agency.

The announcement was made at the 30th United Nations Climate Change Conference (COP30) in Belém, Brazil, by Julie Dabrusin, Canada’s Minister of Environment and Climate Change. The commitment forms part of a broader CAD392 million (US$280 million) investment targeting international climate initiatives.

The contribution arrives at a time when climate shocks, such as prolonged droughts, extreme weather patterns, and disrupted food systems, increasingly threaten global food security—especially in developing regions heavily dependent on smallholder farming.

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A Lifeline for Rural Communities Facing Climate Hardship

Randeep Sarai, Canada’s Secretary of State (International Development), stressed the urgency behind Canada’s decision:

“Our collective future depends on the action we take to protect the environment and equip regions disproportionately affected by climate change.”

IFAD President Alvaro Lario welcomed the announcement, describing it as timely and transformative:

“Canada’s loan comes at exactly the right moment to increase IFAD’s ability to invest in transforming rural economies, supporting small-scale producers, rural workers, and entrepreneurs.”

Lario highlighted the role IFAD financing plays in strengthening resilience and generating economic growth:

“Financing adaptation delivers strong economic and social returns—it is a pathway to sustained and inclusive rural development.”

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A Strategic Boost to IFAD’s 2025–2027 Work Programme

Canada’s loan will significantly bolster IFAD’s core financing for the current three-year cycle (2025–2027), helping the Fund scale up its work in:

• Fragile contexts affected by conflict, political upheaval, or economic instability

• Climate, environmental, and biodiversity protection initiatives

• Private-sector mobilisation to support rural economies

• Holistic rural development programmes combining finance, training, market access, and infrastructure

IFAD, which maintains an AA+ credit rating alongside the World Bank Group, is recognised for converting every US$1 in donor contributions into US$6 worth of concrete development investments—an unmatched track record for value and efficiency.

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Evidence of Impact: Jobs, Resilience, and Higher Incomes

According to the 2025 Report on IFAD’s Development Effectiveness (RIDE), IFAD’s investments between 2022 and 2024 have:

• Created nearly 390,000 rural jobs

• Enabled 1.1 million households to adopt climate-resilient farming practices

• Increased average household incomes by 34%

• Generated transformational impacts—more than 50% income growth—in almost half of the projects assessed

• Improved agricultural production and market access by 35%

These achievements underscore IFAD’s ability to design and deliver climate adaptation solutions that work in the real world, particularly in the “first mile” of rural economies where farmers often lack access to markets.

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A Partnership Rooted in Shared Values and Long-Term Commitment

Canada has been a close ally of IFAD since its inception:

• Founding member of IFAD

• Over CAD1.5 billion contributed across core funding, concessional finance, private-sector support, and targeted programmes

• US$38 million in supplemental funding for specialised initiatives

• Long-standing focus on gender equality, climate adaptation, and youth empowerment

Canada and IFAD share a common agenda—to strengthen rural livelihoods, modernise climate-resilient food systems, and uplift the world’s most vulnerable farming communities.

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Supporting a More Food-Secure, Climate-Resilient Future

As climate change accelerates and global food systems strain under pressure, Canada’s historic contribution positions IFAD to respond more effectively and at greater scale.

By unlocking new opportunities in agriculture, expanding climate-smart solutions, and empowering women and young entrepreneurs, the partnership aims to build stronger, more sustainable rural economies aligned with a more equitable future for all.