Thank you very much, Mr. Chair. It is really a delight to be with everyone, to see all of you right across the country virtually, and to have this conversation.
I'm pleased to be here today to present the 2020-2021 Main Estimates for the international development component of Global Affairs Canada's portfolio.
We must remember that, even before the COVID-19 pandemic, many countries were faced with the challenge of achieving sustainable and inclusive economic growth, maintaining social cohesion and managing prices. While concrete gains have been made to reduce extreme poverty with Canadian support, including increased access to education, health and nutritious food, not all have benefited equally. More than 1.3 billion people living in poverty face several interrelated challenges, often compounded by inequalities and, in many cases, by prolonged humanitarian crises or the impacts of climate change.
COVID-19 added to these difficulties. The pandemic is expected to drive between 88 million and 115 million people into extreme poverty this year—the first increase since 1998—while also delaying progress in development, especially for women and children already living in extreme poverty. It is also expected to increase exclusion and marginalization.
This is not only a problem abroad. COVID-19 provides a profound and compelling demonstration of how the health and prosperity of Canadians depends on a coordinated global response and recovery. Until this crisis is resolved globally, until we help build more resilient and sustainable social and economic systems, we will continue to be impacted domestically.
Canada has demonstrated its commitment to vigorous efforts to address the devastating effects of COVID-19 around the world. Beyond a doubt, the COVID-19 crisis and the economic disruption it is causing represent the most significant shock to global development since the Second World War.
The Government of Canada has organized its international response to the pandemic around three pillars of strategic action where Canada can have a direct impact.
First, we are fighting the pandemic by building capacity to achieve sustainable, health-related development goals and supporting equitable access to COVID-19 testing, treatment and vaccine.
Second, we are striving to manage financial stresses and stabilize economies by restoring global supply chains and ensuring financial liquidity and stability in developing countries.
Lastly, we are supporting the most vulnerable by strengthening recovery through our humanitarian response, by supporting food security and education, and by addressing the long-term socio-economic impacts of the pandemic.
Canada's feminist international assistance policy provides the necessary framework for action. The priorities set out in the policy target the issues where support is needed, focused as it is on helping the poorest and most vulnerable, especially women and girls and those living in fragile states, to recover.
Since the policy's launch in 2017, we have made significant progress on implementing the policy and its related initiatives and commitments. I will come back to these accomplishments shortly, but would first like to turn to the main estimates.
Because of the timing of the main estimates, which were originally presented on February 27, 2020, the 2020-21 main estimates did not include additional international assistance funding specific to the COVID-19 response.
The 2020-21 main estimates include an amount of $823.4 million to further the implementation of the feminist international assistance policy. This includes $410.5 million in international assistance envelope funding to support initiatives linked to specific policy action areas such as the women's voice and leadership initiative, Canada's humanitarian assistance, and sexual and reproductive health and rights programming; $195 million to support the establishment of the equality fund; and $145.1 million to support the implementation of the international assistance innovation program and sovereign loans program.
Additionally, the 2020-21 main estimates include a net increase of $297.3 million, compared to the 2019-20 main estimates, to implement programming to help developing countries address the impact of climate change.
For example, Canada is supporting the World Bank Canada clean energy and forest facility to help reduce deforestation and forest degradation through sustainable forest management. Canada is also supporting the Canadian climate fund for the private sector in the Americas, phase II, which aims to catalyze private sector investments and climate change mitigation and adaptation across Latin America and the Caribbean region. Recognizing that the Paris Agreement aims to limit global temperature increases, a majority of Canada's climate finance programming targets mitigation efforts primarily through renewable energy.
I would like to note that significant progress continues to be made in advancing the feminist international assistance policy, and the majority of Canada's commitments are on track to be achieved. In the 2018-19 report to Parliament on the Government of Canada's international assistance, we outlined how the policy is being pursued and what results have been achieved. It was the first combined report on international assistance as part of our efforts to increase transparency to Canadians.
However, I should flag that new funding to help respond to the COVID-19 pandemic will have an impact on the department's ability to meet targets for the current fiscal year.
More broadly, over the past fiscal year, I have also been focused on realizing the commitments outlined in my mandate letter as minister for international development. As of March 2020, we've fulfilled the 2015 commitment to allocate $3.5 billion for maternal, newborn and child health, as well as the 2017 commitment to allocate $650 million towards sexual and reproductive health and rights.
Preliminary statistics show that in 2019-20, Canada met its commitment and is on track to meeting the 2021-22 target of directing 95% of Canada's bilateral international development assistance to initiatives that advance gender equality.
The women's voice and leadership initiative now supports local women's organizations and movements in over 30 countries and regions. We are moving forward with supporting innovative programming by Canadian small and medium-sized organizations in partnership with local organizations.
Equitable access to education is critical for everyone, particularly the most vulnerable. To this end, I will be launching an international campaign in early 2021 to ensure that refugee and displaced children get the education they need and deserve. Additionally, we are well on our way to directing 10% of our bilateral international development assistance towards education initiatives—currently at 9%. Officials are also developing new programming to address other key issues, including the unequal distribution of unpaid care work.
We are also supporting women in developing countries who are at the front lines of climate adaptation efforts through new investments such as a $150-million loan to the international fund for agricultural development to support climate-smart agriculture in developing countries and by providing $20 million for the Canada-CARICOM climate adaptation fund.
Canada continues to be recognized for our leadership on innovative financing in support of the SDGs. We co-chair the UN Group of Friends on SDG Financing, in New York, and, building on this work, Prime Minister Trudeau, alongside Prime Minister Holness of Jamaica and UN Secretary-General Guterres, is leading a process with leaders from around the world on financing for development in the era of COVID-19 and beyond to encourage inclusive and creative solutions to finance the recovery.
I also remain committed to ensuring that Canada's international assistance is effective, transparent and accountable. For example, Global Affairs has streamlined funding applications and is implementing the civil society partnerships for international assistance policy. Furthermore, restructuring the international assistance envelope has provided Canadians and the international community with clearer, more comprehensive information on our international assistance programming.
Finally, our government is also increasing Canada's international assistance and will be doing so as we work toward 2030 in support of the SDGs. In 2021, we allocated $4.9 billion toward international assistance objectives, an increase from $4.6 billion the previous year.
Mr. Chair, committee members, our government is working hard to implement the feminist international assistance policy, especially during this unprecedented pandemic, and seeking to build a more peaceful, inclusive and prosperous world.
Thank you for your time. I look forward to your questions.
