Global Affairs Canada to shutter $800M foreign aid climate fund
The federal government is planning major cuts to taxpayer-funded foreign aid. One of the programs being shut down is an $800 million international climate change financing fund.
Author: Cosmin Dzsurdzsa
The federal government is planning major cuts to taxpayer-funded foreign aid. One of the programs being shut down is an $800 million international climate change financing fund.
The government’s 2026-2027 departmental plan from Global Affairs Canada claims that Ottawa wants to save billions of dollars over the next few years to control government spending.
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The cuts are tied to a government-wide Comprehensive Expenditure Review announced in the latest budget.
The plan details a phased reduction in spending over the next three fiscal years: $560.8 million in 2026–27, $747.0 million in 2027–28, and $1.12 billion in 2028–29.
These are annual reductions, not cumulative totals.
Overall, Global Affairs Canada’s budget is projected to fall from approximately $8.5 billion in 2023–24 to $6.6 billion by 2028–29, a drop of roughly $1.9 billion.
Officials attribute the decline largely to two factors: $1.1 billion in savings from the Comprehensive Expenditure Review and $812 million in reduced spending as Canada’s International Climate Finance Commitment from 2021–2026 winds down.
The department is also planning a notable reduction in staffing levels.
By 2028–29, the number of full-time equivalent employees is expected to fall to 11,760, down from roughly 13,293 in 2025–26, a decrease of about 1,240 positions at its peak.
Even between 2026–27 and 2028–29 alone, staffing is projected to drop by nearly 900 positions, mirroring a broader push across government to align personnel levels with reduced program spending.
The cuts will also affect Canada’s international assistance programs, particularly in global health.
The departmental plan notes that Canada’s contributions in this area “grew disproportionately” compared to peer countries during and after the COVID-19 pandemic. Spending is now being brought back closer to pre-pandemic levels.
The government is changing how it spends money, moving away from quick emergency spending.
Most government departments have been asked to find ways to save money as part of their expenditure review.