At COP30 in Belém, Brazil, Canada announced a CAD 263 million (approximately US$187 million) concessional loan to the International Fund for Agricultural Development (IFAD), reinforcing its commitment to global climate action. The funding aims to help regions disproportionately affected by climate shocks adapt, protect food security, and strengthen rural livelihoods. Canada’s Minister of Environment and Climate Change highlighted that this investment is part of a broader CAD 392 million (US$280 million) commitment to international climate projects, promoting inclusive, locally led solutions.
IFAD’s President, Alvaro Lario, emphasized that the loan will enhance the Fund’s ability to transform rural economies by supporting small-scale producers, rural workers, and entrepreneurs, raising incomes and productivity, creating employment, and fostering stability. Canada’s contribution represents the largest concessional partner loan ever to IFAD, bolstering the Fund’s core resources for the 2025–2027 cycle. IFAD’s programs are increasingly focused on fragile contexts affected by conflict or instability while mobilizing financing for climate, environmental, and biodiversity initiatives and promoting private sector engagement.
IFAD has a proven track record of efficiency and impact, converting every US$1 in donor contributions into US$6 in investments on the ground. It is one of only two UN bodies with an AA+ credit rating, reflecting its strong governance and ability to deliver results. Between 2022 and 2024, IFAD investments created nearly 390,000 jobs and enabled 1.1 million households to adopt climate-resilient practices. Project participants saw average income increases of 34 per cent, with nearly half achieving transformational gains exceeding 50 per cent. Production and market access rose by 35 per cent, highlighting the importance of connecting smallholder farmers to profitable opportunities.
Canada’s partnership with IFAD spans decades, grounded in shared values of equity, resilience, and sustainable development. Over the years, Canada has contributed more than CAD 1.5 billion to IFAD through core funding, concessional finance, private-sector engagement, and targeted initiatives. This latest loan strengthens ongoing efforts to help small-scale farmers adapt to climate change, access new agricultural opportunities, and build more resilient and sustainable rural economies, demonstrating a joint commitment to an equitable and food-secure future.
