1. Understanding Poverty
BRIEF May 11, 2026

Canada-World Bank Climate Funds

Landscape of green fields and forest in Indonesia.

Photo: Curt Carnemark / World Bank

Canada–World Bank Climate Partnership

Climate action and development go hand in hand. Investments in sustainable energy, land use, and resilient ocean economies don’t only reduce emissions—they can also unlock economic opportunities, strengthen livelihoods, and support long-term growth.

Canada and the World Bank partner to target financing to where it is needed most, helping countries scale investments, strengthen institutions, and deliver inclusive, climate-resilient development. Through dedicated trust funds, this partnership supports practical, country-led solutions that move from ambition to implementation.

Today, this collaboration is delivered through two complementary funds that focus on accelerating the energy transition, strengthening resilience, and expanding economic opportunities across different contexts. 

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  • Clean Energy and Forests Climate Facility

    Established in 2020 with CAD400 million in loans and CAD10 million in grant contributions from Canada, the Canada-World Bank Clean Energy and Forests Climate Facility targets financing to where it is needed most to stimulate investment in inclusive, green growth. The Facility supports transformational climate actions of World Bank projects, with a focus on Asia’s clean energy transition, renewable energy in Small Island Developing States (SIDS), and forests and sustainable land use. Financing from the Facility aims to:

    • Catalyze and scale up clean energy climate financing across multiple sectors
    • Accelerate energy efficiency and renewable energy market development
    • Promote the mainstreaming of gender considerations in clean energy investments
    • Support sustainable landscapes, climate-smart land use, and green supply chains, as well as new financial instruments that promote private sector investment and public-private partnerships

    The facility has four programs:

    • Energy transition (ET): CAD275 million to co-finance World Bank projects that aim to slow the expansion of coal in the power sector by scaling up low-carbon alternatives (including solar, wind, and geothermal), as well as improve energy efficiency, and grid modernization. Financing will help strengthen the capacity of key institutional actors to design regulatory incentives to boost energy efficiency and markets for renewable energy.
    • Renewable energy in SIDS (RE-SIDS): CAD50 million to co-finance World Bank projects for renewable energy investments.
    • Forests and landscapes (FAL): CAD75 million to co-finance World Bank projects working to reduce carbon emissions from deforestation and forest degradation and to foster conservation, sustainable management, and enhancement of forest resources.
    • Gender equality in the renewable energy sector in SIDS (GE-SIDS): CAD10 million in grants to provide technical assistance in SIDS to pursue gender equality through women’s employment and enterprise development across energy value chains.

    Projects with committed co-financing:

    Program

    Project

    		Co-financing Amount (US$M)

    Country

    FAL

    Landscapes and Livelihoods Project (P170559)

    		16.00

    Lao PDR

    RE-SIDS

    Renewable Energy Sector Development Project (P161316)

    		3.71 + 2.50

    Saint Lucia

    RE-SIDS

    Renewable Energy and Improved Utility Performance Project (P170236)

    		7.00 + 1.20

    Cabo Verde

     RE-SIDSCaribbean Efficient and Green-Energy Buildings Project (CEGEB) (P179519)8.20Guyana
     RE-SIDSBelize Reliant and Resilient Energy System Project (P179520)8.20Belize
     RE-SIDSCaribbean Resilient Renewable Energy Infrastructure Investment Facility (P180831)1.99Saint Lucia

    ET

    Eskom Just Energy Transition Project (P177398)

    		47.50

    South Africa

          ETIndonesia Sustainable Least-cost Electrification-1 (ISLE-1) Programs (P174350)47.80Indonesia

     

    Approved grants (GE-SIDS):

    Grant name

    		Grant amount (US$M)

    Region/ Country

    Geospatial Assessment of Women Employment and Business Opportunities in the Energy Sector (P179212)

    0.53

    World

    Maldives Gender and Energy Roadmap under the South Asia Gender and Energy Facility II (SAGE II) (P173928)

    0.25

    Maldives

    Pacific Women's Energy Employment and Empowerment Program (PWEEEP) (P179022)

    2.75

    East Asia Pacific

    Dominica Geothermal Risk Mitigation (P179845)0.25Dominica

    Renewable Energy and Improved Utility Performance Project (P170236)

    0.5 + 0.31

    Cabo Verde

    Access to Clean Resilient Electricity under the ASCENT Regional Program - Multi Programmatic Approach (MPA) (P177099)0.20Sao Tome & Principe
    Caribbean Resilient Renewable Energy Infrastructure Investment Facility (P180831)

    0.20

    Saint Lucia

    Caribbean Efficient and Green-Energy Buildings Project (CEGEB) (P179519)0.38

    Guyana

    Belize Reliant and Resilient Energy System Project (P179520)0.20Belize

     

    Country Eligibility:

    Program

    Africa

    East Asia and Pacific

    Latin America and Caribbean

    South Asia

    ET

    South Africa
    Botswana

    Cambodia, Indonesia, Philippines, and Vietnam

    Mexico

    India, Pakistan

    RE-SIDS

    Cabo Verde, Mauritius

    Fiji, Vanuatu

    Antigua and Barbuda, Belize, Dominica, Dominican Republic, Guyana, Jamaica, Saint Lucia, and Saint Vincent and the Grenadines

    Maldives

    FAL

    -----

    Fiji, Indonesia, Lao PDR, and Vietnam

    Colombia, Costa Rica, Dominican Republic, Guatemala, Mexico, and Peru

    -----

    GE-SIDS

    Cabo Verde, Comoros, Guinea-Bissau, Mauritius, and Sao Tome and Principe 

    Fiji, Kiribati, Marshall Islands, Micronesia (Federated States of), Nauru, Niue, Palau, Papua New Guinea, Samoa, Solomon Islands, Timor-Leste, Tonga, Tuvalu, and Vanuatu

    Antigua and Barbuda, Belize, Dominica, Dominican Republic, Grenada, Guyana, Haiti, Jamaica, Saint Lucia, Saint Vincent and the Grenadines, and Suriname

    Maldives

     

    This facility is supported by the Government of Canada. It aligns with Canada’s climate policy and gender equality priorities and complements its ongoing cooperation with the Southeast Asia Energy Transition Partnership. Within the World Bank trust fund portfolio, the facility falls under the Climate Change Global Practice, with the Energy Sector Management Assistance Program (ESMAP) and the Energy Global Practice sharing operational oversight.

    For media inquiries please contact: Kym Smithies, ksmithies@worldbank.org.

  • Clean Energy and SIDS Resilience (CESR) Fund

    Established in 2026 with CAD180 million in concessional finance from Canada, the Canada–World Bank Clean Energy and SIDS Resilience (CESR) Fund targets financing to where it is needed most to support inclusive, climate-resilient growth.

    The Fund supports World Bank projects, with a focus on the energy transition, renewable energy in Small Island Developing States (SIDS), blue economy sectors in SIDS, and women’s economic empowerment. Financing from the Fund aims to:

    • Catalyze and scale up investments in renewable energy and climate resilience
    • Accelerate energy efficiency and the integration of low-carbon technologies
    • Support sustainable ocean and coastal economies in SIDS
    • Promote inclusive economic opportunities, including women’s employment and enterprise development
    • Strengthen institutions, policies, and regulatory frameworks to support long-term impact

    The Fund has four programs:

    • Energy Transition 2 (ET-2): Supports World Bank projects that accelerate the shift toward low-carbon energy systems, including scaling up renewable energy, improving energy efficiency, strengthening grid integration, and building institutional capacity to support energy market development.
    • Renewable Energy in SIDS 2 (RE-SIDS-2): Supports renewable energy investments in SIDS, including distributed generation, integration of variable renewable energy, sustainable cooling solutions, and climate-resilient energy systems, alongside strengthening institutional and regulatory frameworks.
    • Blue Economy in SIDS (SIDS-Blue): Supports activities that promote the sustainable use of ocean and coastal resources, including fisheries and aquaculture, pollution reduction, resilient coastal management, and nature-based solutions.
    • Women’s Employment Empowerment in SIDS (GE-SIDS 2): Provides grant-based support to expand women’s participation in energy and blue economy sectors, including through skills development, entrepreneurship, and more inclusive decision-making.

    This Fund is supported by the Government of Canada and reflects its commitment to climate action, resilience, and inclusive development, particularly in Small Island Developing States. Within the World Bank trust fund portfolio, the Fund is managed under the global Climate Change Department, working in coordination with relevant sector teams to support implementation.

    For media inquiries please contact: Kym Smithies, ksmithies@worldbank.org.

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