Energy

The term “energy” is broad and includes fossil fuels like coal, oil and natural gas but also renewable energy like solar, wind or geothermal. In Canada, coal and especially the Canadian oil and gas sector, represent the largest source of GHG emissions, about 26%. Canada’s electricity sector consists of 8.4% of emissions.

To reach its 2030 targets and Nationally Determined Contributions, Canada must put a cap and cut emissions from the oil and gas sector, enforce strong methane reductions and equivalency agreements, eliminate fossil fuel subsidies, and phase out coal. Additionally, despite Canada’s electricity grid being 82% renewable, a further reduction of coal and natural gas will be required.

TFF seeks solutions that reduce the demand for fossil fuel energy, solutions that electrify our homes or cars, encourages leaders to adopt alternatives and to also accelerate clean electricity strategies, improve energy efficiency in buildings- in short, we want to change how Canada is powered.

Building a zero emission grid for North America

TFF co-initiated the Northeast Electrification and Decarbonization Alliance (NEDA) which in collaboration with the Ivey Foundation developed into the Canada Grid. Canada Grid provides thought leadership and tools for policymakers and regulators to further decarbonize Canada’s electricity grids. Canada Grid serves as a broad coalition of industry, labour, academic and civil society actors that advocate for a just and secure energy transition for all Canadians.

Strategic collaboration to advance a net zero economy

TFF has been a member of Environment Funders Canada’s Low Carbon Funders Group since 2016. In 2017, TFF and 7 Canadian philanthropic foundations, pooled resources to support Canada’s leading Environmental NGOs in advancing and supporting federal climate policy. The collaboration supports nearly a dozen ENGOs that work on issues such as methane regulations, clean fuel standards, carbon pricing, ZEV mandates, EV transportation, coal phase out, fossil fuel subsidies, oil and gas emissions cap, climate accountability legislation, clean electricity, just transition and more. TFF has funded this federal policy advocacy collaborative for 5 years and is committed to multi-year grants to the LCFG.

Transportation

Canada’s second biggest emitting sector is transportation. 26% of Canada’s emissions come from the transportation sector - over half from passenger transportation namely personal cars and lightweight passenger truck; and the other half from freight transportation such as light, medium and heavy trucks and buses. Air and marine transportation sectors are also emitters. Most sources of energy include motor gasoline, diesel fuel oil and aviation fuel for planes.

We must shift how we move people and goods. With the right set of enabling solutions, we believe philanthropy could help accelerate cleaner transportation like electric vehicles. Solutions are technological but also social and behavioral and benefits to decarbonizing transport have significant co-benefits such as clean air, improved health, as well as benefits for racialized communities.

In order to accelerate the transition to cleaner transportation, TFF’s transportation pathway focuses on electric vehicles policies, encouraging ZEV mandates, advancing policy at national, provincial and municipal levels, empowering leadership and targeting barriers to scale new solutions. We hope that by 2025 or 2030, road transportation will have achieved a tipping point. As a funder we need to continue to harness the means to disrupt the status quo and develop solutions that will scale and change transportation systems.

Accelerating the adoption of electric school buses

Replacing diesel school buses with electric school buses not only reduces emissions but it also improves children’s health, empowers schools, teachers and parents, and provides economic benefits by boosting Canada’s clean tech sector and Canada’s mostly renewable grid. TFF, through a top down and bottom up approach, established and funded a network of diverse Canadian organizations that are individually working in 5 provinces towards the goal of adding more electric school buses on the road. The alliance’s work includes empowering grassroots work, supporting government relations and advocacy, capacity support to engage with school boards and diverse stakeholders, supporting regional deployment of electric buses and enabling a national coordination that accelerates local implementation.

Cities

Much of TFF’s work focuses on Federal and Provincial jurisdictions but we cannot ignore that 7 in 10 Canadians live in cities - municipal-level action is also essential in fighting the climate emergency. Cities are often front and center in feeling the impacts of climate change, with underprivileged and racialized communities bearing the brunt of heat waves and floods. Cities are also involved in dealing with practical matters but can accelerate tangible climate solutions that can reverberate to provincial, federal and international levels. We believe that Canadian cities will help reduce Canada’s emissions and help meet Canada’s Nationally Determined Contributions that get us to our Paris Agreement obligations.

TFF seeks to catalyze partnerships, leadership, and funding needed for cities to carry forward innovative urban solutions, from small towns to our largest cities.

Decarbonizing cities by accelerating urban climate solutions

TFF, along with five key partners, helped launch the Low Carbon Cities Canada (LC3) initiative which in 2019 obtained $183M from the Federal government. LC3 is based on The Atmospheric Fund (TAF) model which has been undertaking low-carbon demonstration projects and scaling-up initiatives in the Toronto region since 1991. TAF’s model is now being adapted for use in other cities. LC3 is a partnership between seven local centres and the Canadian Federation of  Municipalities to help cities reach their full emissions reduction potential by implementing practical projects in buildings and transport.

Scaling low-carbon solutions for greater Montreal

Through LC3, TFF established a new TAF-like entity for the Montreal region. The Greater Montreal Climate Fund (GMCF) was created by TFF to bridge the gap between public investments and traditional investors to participate in the implementation of innovative solutions, particularly in the following sectors: building renovations, renewable energy, transport electrification, and decarbonized mobility. The GMCF received $32.5M from the federal government, in partnership with the Canadian Federation of Municipalities.

Developing an ambitious climate plan for Montreal

TFF was involved in a 2-year initiative that brought together the City of Montréal, C40 Cities, David Suzuki Foundation, Dunsky and Esmia consultants, six philanthropic foundations, and a committee of 20 experts to co-develop Montreal's Climate Action Plan (2020-2030). This unique collaboration led to the announcement of Mayor Valerie Plante at the United Nations where she announced Montreal’s goal of reducing emissions by 55% by 2030. In December 2020, Montreal’s Paris-aligned plan, with 46 concrete measures, was published. The initiative places Montréal among the world's leading cities by prioritizing climate action and ensuring that an ecological transition a top priority. The plan is found here.

Mobilizing civil society towards Net-Zero

Following the release of Montreal’s Climate Action Plan, TFF partnered with the Foundation of Greater Montreal and created the Montreal Climate Partnership. The Montreal Climate Partnership aims to mobilize over 100 economic, institutional, business, building and transport, philanthropic and community stakeholders to help reduce GHG emissions by 55% by 2030. It is inspired by the Green Ribbon Commission in Boston.

Industry

Canada’s heavy industry sector represents a significant source of emissions (9% of Canada’s GHG emissions). Decarbonizing heavy industry like steel or concrete is extremely complex. Incrementalism in cement and steel will not be an effective strategy – instead, modifying systems that allow for rapid decarbonization will be required. If Canada is to transition to a low carbon economy it must also do so in a manner that maintains Canada’s competitiveness and ensures a just transition.

The global race to low carbon intensive industrial and manufacturing processes is already underway and TFF’s work aims to help Canada get ahead of the curve. Canada has a competitive and growing clean tech sector that needs support.

TFF’s work aims to catalyze a transition by focusing philanthropic support towards the cement and steel sectors - ubiquitous materials that are crucial to buildings, roads, and vehicles. Untangling these sectors from their carbon emissions is nuanced and will require support from governments, industry and civil society. Solutions like electric arc for steel, reducing demand for cement, recycling existing steel, using green hydrogen, reducing chemical process emissions, CCUS for cement production, and enhancing building design to reduce cement use are all potential pathways. Procurement policy within governments (Buy Clean policies) and private green steel procurement in the production of vehicles can help force this acceleration and ensure that Canada adopts a set of enabling policies and investments with a clear roadmap to Net Zero.

TFF’s current focus is only on cement and steel which covers nearly half of Canada’s total heavy industry emissions. Bold, disruptive and innovative solutions will be required through technology, policy, business strategy and so much more.

Decarbonizing cement and concrete

Cement is one of the most used commodities in the global economy, and extremely GHG intensive, representing 8% of global emissions. Through research, convening and policy advocacy, we aim to influence public and private procurement for greener materials, change building codes to include embodied carbon, develop the technological solutions to decarbonize the industrial processes, and secure government commitments to adopt a roadmap that reduces emissions and creates market incentives. TFF hopes to encourage Buy Clean Procurement policies on cement, within federal and provincial governments, support tools to fund clean industrial processes like green hydrogen and reduced demand, and much more.

Decarbonizing the steel industry

Steel is also one of the most GHG intensive sectors, representing almost 5%-7% of global emissions. Through research, convening and policy advocacy, we aim to influence public and private procurement for reducing steel demand, accelerating electric arc or alternative technological solutions, securing government commitments towards a roadmap that reduces emissions and accelerating private market incentives. TFF hopes to encourage automobile manufacturers to demand green steel through supply chain procurement and incentivize the acceleration of green steel production.

Strategic Opportunities

With the fast-paced changes brought about by worsening climate change, the news cycle and shifting policy agendas, emerging opportunities can become fertile grounds for climate victories. Cross-cutting activities are also challenging to compartmentalize and TFF remains committed to acting nimbly when needed. We remain agile in order to respond to opportunities and urgent needs. Whether it’s a chance to impact or push back policy, foster movement-building, demand accountability from decision-makers, or build an initiative that can bring lasting change, we remain open to rising to the moment.

As of 2022 some potential focus areas being explored by the foundation include:

• carbon border adjustments;
• carbon dioxide removal;
• green hydrogen;
• blended finance models;
• municipal leadership in setting energy emissions caps for buildings.

Advocating for a green and just recovery

In the spring of 2020 in the middle of the COVID-19 crisis, many prominent voices were calling on governments to use historic stimulus spending as an opportunity to kickstart the low-carbon economy and to build back better. TFF proactively supported 17 projects from diverse organizations and champions throughout Canada advocating for a Green Recovery. This included policy development, government relations, convening, communications, capacity support, research and mobilization.

Amplifying voices that often go unheard

When it comes to lobbying, industry has a disproportionate voice compared to the environmental sector. The ENGO sector in Canada often lacks professional Government Relations capacity which can delay climate policy. The Public Voice Fund was created by a few funders to fill this gap by providing capacity to Canadian charities to hire skilled government relations professionals to engage with federal and provincial governments.

Building capacity and empowering grassroots climate movement organizers

TFF helped establish the Climate Justice Organizing HUB, a newly created support structure designed around the needs of grassroots social movement organizers in Canada. The Hub respects organizers’ knowledge regarding their own challenges and priorities. Through responsive troubleshooting, skills and strategy sharing, and other capacity-building activities, the Hub also helps organizers find their way to building a critical mass of engaged people who are working towards a just transition.

Increasing Canada’s philanthropic participation in funding climate action

Increasing climate action in the philanthropic community through pooled funding or having foundations integrate climate into existing programs or investments is key. Climate Pledges in the UK, France and Spain inspired us to adopt a Canadian climate pledge. TFF initiated the pledge with trusted funder networks (Philanthropic Foundations Canada, Environmental Funders Canada, Circle on Philanthropy and Community Foundations Canada) who then spearheaded the philanthropic mobilization.

Sustainable Finance

Philanthropic capital has the power to reshape capital markets and shape financial policies. We need systems change within our financial systems and it must be accelerated.

Financing Canada’s transition to Net Zero and accelerating us towards a clean economy will require massive private sector investments. Accelerating building retrofits, rebuilding electricity infrastructure, deploying EVs or green hydrogen, supporting clean tech, all will require unprecedented capital allocation from the private sector.

TFF seeks to connect the work of our climate program with our Foundation’s endowment and assets by divesting from fossil fuels, pursuing mission-aligned and program-aligned investing, shareholder engagement, and peer education in the philanthropic sector. TFF also puts its own assets to work while realizing that our capital has limits but could help act as leverage in certain situations. Additionally, our role in thought leadership and convening can be important tools.

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