How the Nature Smart Climate Solutions Fund supports Canada’s climate goals

Canada aims to cut greenhouse gas emissions by 40–45% below 2005 levels by 2030 and reach net-zero by 2050. Achieving these targets involves more than new technology—it depends on nature. The Nature Smart Climate Solutions Fund is a federal program that uses nature-based solutions to reduce emissions, store carbon, and protect biodiversity at the same time.

This fund supports Canada’s climate plan by investing in projects that restore and conserve ecosystems that naturally capture and store carbon.

What is the Nature Smart Climate Solutions Fund?

The Nature Smart Climate Solutions Fund (NSCSF) is run by Environment and Climate Change Canada. Its goal is to address climate change and biodiversity loss together by supporting nature-based projects across Canada.

Nature-based solutions include restoring wetlands, conserving grasslands, and improving forest management. These ecosystems act as carbon sinks. They also help reduce floods, improve water quality, and provide wildlife habitat.

Key program facts:

Jurisdiction: Federal
Program status: Open
Funding type: Non-repayable contributions (grants)
Delivery: Multiple funding streams and intakes, depending on project type

Eligibility and Application Process

Eligibility depends on the funding stream and intake. Most applicants include:

Environmental and conservation non-profits
Indigenous organizations and governments
Provincial, territorial, and municipal governments
Conservation groups and land trusts

For-profit businesses are usually not eligible as lead applicants but may join as project partners in some cases.

When planning your application, it’s helpful to use tools like GrantHub to check current eligibility and intake dates. This can save time and help you find the right stream for your project.

Application tips:

Check the latest intake guidelines for current rules.
Make sure your project aligns with climate and biodiversity goals.
Prepare a clear plan for measuring climate and biodiversity outcomes.

Types of Projects Funded

The Nature Smart Climate Solutions Fund supports projects such as:

Wetland, peatland, and grassland restoration
Conservation of high-carbon ecosystems
Nature-based climate adaptation initiatives
Monitoring and reporting of carbon and biodiversity results

Projects must show clear, measurable climate benefits and match federal priorities for emissions reduction and ecosystem protection.

Funding amounts vary by project scope, duration, and intake. Larger, multi-year projects may receive higher contributions, depending on available funding.

How the Fund Supports Canada’s Climate and Biodiversity Goals

The Nature Smart Climate Solutions Fund helps Canada in three main ways:

Reducing greenhouse gas emissions

Healthy ecosystems absorb and store carbon dioxide. Projects funded by the NSCSF focus on:

Wetland restoration and protection
Grassland conservation
Improved land management

These activities increase carbon sequestration and support Canada’s emissions reduction targets.

Supporting climate adaptation and resilience

Climate change brings more floods, droughts, and extreme weather. Nature-based solutions help communities adapt by:

Restoring wetlands to lower flood risk
Protecting coastal areas to buffer storms
Improving soil health for drought management

These actions reduce future climate damage and protect natural systems.

Protecting biodiversity alongside climate action

Climate change and biodiversity loss affect each other. The fund supports projects that:

Protect important habitats
Restore damaged ecosystems
Benefit species at risk

By funding projects with both climate and biodiversity benefits, the program supports Canada’s commitments under national biodiversity strategies.

Common Mistakes to Avoid

Assuming all nature projects qualify: Projects must show climate mitigation or adaptation outcomes. General environmental work without clear climate impacts may not be eligible.
Applying as a business without a qualified partner: Most streams focus on non-profits and public entities. Businesses often need to participate as partners, not lead applicants.
Weak measurement plans: Applications must explain how carbon, climate, or biodiversity results will be tracked. Vague outcomes lower approval chances.
Missing intake-specific requirements: Each intake can have different priorities, timelines, and eligibility rules. Always review current intake guidelines.

Frequently Asked Questions

Q: What is the Nature Smart Climate Solutions Fund?
It is a federal program that supports nature-based projects to reduce emissions, increase carbon storage, and protect biodiversity across Canada.

Q: How much funding can a project receive?
There is no single maximum amount. Funding depends on the intake, project size, and expected climate outcomes.

Q: Is the funding repayable?
No. Support from the Nature Smart Climate Solutions Fund is provided as non-repayable contributions.

Q: Are businesses eligible to apply?
For-profit businesses are generally not eligible as lead applicants but may be included as project partners in some cases.

Q: How does this fund help meet climate targets?
It invests in ecosystems that absorb carbon and improve climate resilience, directly supporting emissions reduction and adaptation goals.

Next Steps

If your organization works on conservation, restoration, or climate adaptation, the Nature Smart Climate Solutions Fund may be a good fit. Intake rules change, and similar climate and environmental programs often open at different times. To stay current and find funding that matches your project, check GrantHub for updates and eligibility tools.

See also:

How to stack grants and loans without violating funding rules
What expenses are eligible under regional economic development grants?

How the Nature Smart Climate Solutions Fund supports Canada’s climate goals