Foreign Affairs Committee on June 16th, 2026

[Shirley Carruthers]

Thank you very much for that question.

Under vote 10, we have a number of different programs. I think we have 19 programs overall, but our biggest program is for international development assistance, where the biggest portion of our reductions from the comprehensive expenditure review will take place.

In terms of our overall development budget and the impact moving forward, you'll see that our overall reference level, or the amount of budget that we have within the department, will actually return to pre-COVID levels. Since COVID, our international development assistance budget had increased quite dramatically. As part of the $2.7 billion that I referenced earlier for the reduction of our overall development budget, that is where you'll see the biggest impact.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

Okay. That's about a 30% to 33% reduction, and you said that you're bringing it to pre-COVID. On the $2 billion you'll be missing, where was that spent so that you will be able to cut it?

[Shirley Carruthers]

The reductions we made in the comprehensive expenditure review were mostly in the area of health—in global health programming. This is an area where our contributions have grown disproportionately over the years, just in terms of our overall investments. In addition, we will need to make some other modest reductions within some of our other programming. For example, some of the funding to international financial institutions will be reduced.

Obviously, with a cut of this magnitude, we'll also have to decrease our bilateral programming. This is something that we actually visit routinely, in terms of the level of programming within all of the different countries. We do some alignments based on different country priorities, local contexts and shifts, so we will see some reductions in that space as well.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

Will you be able to go into more detail about which programs were affected the most?

You also mentioned FinDev, in a way. How much has FinDev achieved? How much money have you spent on FinDev, and how is this going to impact this whole program? Is there a chance that FinDev will be gone, that they won't be there anymore?

I'd like to go into more detail on this, rather than get a generic answer.

[Shirley Carruthers]

No problem. With respect to FinDev, one thing I can mention is that there was a recent budget announcement for $5.3 billion for climate finance within this portion of money. Some of that funding will come to Global Affairs. Another portion—an additional $2 billion—will actually go to FinDev. This is outside of the actual comprehensive expenditure review.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

You mentioned the cuts in the health care area. It does affect certain partners. Are some of these partners being affected completely? Are we cutting off some partners completely? We're talking about large sums of money here.

[Shirley Carruthers]

Yes, we are.

One of the principles we had when we were looking at reductions across the development portfolio was not to cut any of our existing programs. It is possible that when some of these programs come to a natural end, they won't be renewed. In that aspect, eventually some partners that are currently receiving funding won't be receiving funding in the future, but we did take a very deliberate decision not to cut any of the existing projects that we have ongoing with certain organizations.

As I mentioned, right now, we're actually programming our development assistance within 50 different countries, so with a reduced budget, we will need to recalibrate or focus our development assistance in fewer countries.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

Is the department convinced that some of the programs are not effective or that we can go along without them? Can you be specific on the programs that will be experiencing severe cuts? What are they?

[Shirley Carruthers]

Again, I think the sector that will be the most impacted is health. In previous iterations, it was one of the biggest areas that we were contributing funding to. That's one thing I could offer.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

Thank you.

[The Chair, Liberal, Ahmed Hussen]

Thank you very much.

Next is MP Steven Guilbeault.

Mr. Guilbeault, you have the floor for five minutes.

[Steven Guilbeault, Liberal, Laurier—Sainte-Marie, QC]

Thank you very much, Mr. Chair.

I would like to thank all the witnesses for joining us.

I would like to wish all members of the public service here with us a happy National Public Service Week.

I would like to return to the issue of climate finance, which you touched on briefly. For the benefit of all members of the committee, I would like to point out that $5.9 billion has been pledged as part of the economic statement. Just over $3 billion will be allocated to the Global Affairs Canada, and just over $2 billion will be allocated to FinDev Canada.

I would like to ask two questions.

On the one hand, these sums are in addition to the traditional amount allocated to development aid. On the other hand, comparisons can be made. You may have the figures. I believe Great Britain has cut its climate finance aid by nearly 25%. I believe France has cut its climate finance aid by 37%.

Could you provide the committee members with some information on this matter?

My second question is as follows. This is the first time, as part of this commitment, that we have set ourselves the objective of mobilizing private-sector funds to help tackle climate change in developing countries, the countries of the global south.

Could you also provide the committee with some information on this aspect?

Thank you.

[Shirley Carruthers]

Yes, certainly. In terms of the funding that I referenced, the $5.3 billion that we received would be in line with our previous five-year commitment for climate change. Between 2021 and 2026, we also had a five-year commitment for climate change of $5.3 billion that was shared between Global Affairs Canada and ECCC.

I will hand it over to my colleague, Cam Do, who can provide some additional information with respect to the overall commitment.

[Cam Do, Director General, Development Finance Bureau, Department of Foreign Affairs, Trade and Development]

Thank you so much.

On the $5.3 billion, FinDev got an additional $2 billion—that's recapitalized by EDC—and then an additional $732 million of concessional facility. That's an extension of the current concessional facility that they have. There is a new target to mobilize public-private capital. For every dollar of public investment put in from Canada, $3 will be mobilized.

This is additional funding to the current ODA budget. Both Great Britain and France significantly reduced their climate finance, so Canada is really holding its own by maintaining this amount.

[Steven Guilbeault, Liberal, Laurier—Sainte-Marie, QC]

Thank you for those answers.

If I recall correctly, this announcement on climate finance was welcomed by several NGOs, both in Canada and internationally.

Could you provide us with some information on this, if you have it?

We talked about FinDev Canada. To answer Mr. Aboultaif's question, perhaps you could provide us with some information, in particular on the GAIA fund, which was launched in 2024 by FinDev Canada.

Correct me if I am wrong, but, if my memory serves me correctly, the federal government is investing $75 million. The aim is to mobilize $1.5 billion to assist developing countries, particularly with regard to adaptation for the least developed countries and small island states.

Could you also provide the committee with some information on this matter?

Thank you.

[Shirley Carruthers]

Thank you very much. I'll once again ask Cam Do to respond.

[Cam Do]

This $5.3-billion announcement by both Canadian NGOs and international NGOs was very well received.

On Gaia, yes, you're correct. We put in $75 million, and it mobilized $1.5 billion. It's a very unique fund, because it's the first time that a fund is really focused on adaptation. It has a target of 70%, and it's also working with the Mitsubishi company.

[Steven Guilbeault, Liberal, Laurier—Sainte-Marie, QC]

Very briefly, Ms. Do, could you share with the committee the reaction, in particular, of several developing countries to the announcement of the GAIA fund at COP29 in Azerbaijan? That would be very helpful.

[Cam Do]

I don't have the answer to that right now, but I think in general it's very well received, because adaptation is a key thematic for developing countries, especially in Africa.

[Steven Guilbeault, Liberal, Laurier—Sainte-Marie, QC]

Thank you very much.

[The Chair, Liberal, Ahmed Hussen]

Thank you very much.

Before we go to the next questioner, I just wanted to remind members to keep their phones away from the microphones. It causes issues for the interpreters.

Thank you.

We go next to Mr. Mantle.

You have five minutes.

[Alexis Brunelle-Duceppe, Bloc, Lac-Saint-Jean, QC]

Mr. Chair, it would be kind of you to give me the floor. I realize that I can sometimes be a bit blunt, but still.

[The Chair, Liberal, Ahmed Hussen]

We continued the previous round, so you will have an opportunity after Madame Fortier.

[Alexis Brunelle-Duceppe, Bloc, Lac-Saint-Jean, QC]

Mr. Guilbeault has just had six minutes to speak. Maybe he's crossed the floor to join the Conservatives, but I don't think so.

Mr. Aboultaif and Mr. Guilbeault have had their six-minute speaking time. It is now my turn to speak for six minutes.

[The Chair, Liberal, Ahmed Hussen]

No. I'm continuing the previous....