Report

Funding the Future

Enabling natural infrastructure through federal infrastructure programs

This report assesses six federal infrastructure programs against 14 enabling criteria for natural infrastructure and outlines how the Canadian government can better support natural infrastructure. Local governments need the support of federal funding programs to invest in and deploy natural infrastructure on a larger scale. Doing so will enable the building of more resilient, cost-effective communities and reduce the risks from growing weather extremes.

By Christine Mettler on February 26, 2025

Key Findings

  • Federal infrastructure programs can unlock the full potential of natural infrastructure by better enabling natural infrastructure within funding programs.

  • To support resilient and reliable water infrastructure service delivery across Canada, we recommend the federal government designs "natural infrastructure-friendly" programs, guided by 14 enabling criteria for natural infrastructure.

  • Canada needs large-scale investment in natural infrastructure to build more resilient, cost-effective, and vibrant communities. Natural infrastructure provides multiple benefits in the face of interconnected crises: climate, biodiversity, infrastructure, and housing.

  • Natural infrastructure is gaining recognition for its ability to deliver reliable, affordable infrastructure services, while reducing disaster risk in the face of flooding, drought, wildfire, and extreme heat.

A flexible and nature-based approach to infrastructure funding can help Canada build resilience while making the most of every dollar invested, leading to a more sustainable and water-secure future for Canadians.

An analysis of federal programs. The report assesses six federal infrastructure programs against 14 enabling criteria for natural infrastructure. The findings? Mixed. Some programs support natural infrastructure, while others limit it due to design constraints, restricting local governments’ ability to invest in cost-effective, nature-based solutions.

Practical recommendations. We recommend 14 practical criteria to better enable natural infrastructure within major infrastructure programs, while highlighting programs that work well with nature.

Unlock the full potential of natural infrastructure. Moving forward, federal infrastructure programs must be more flexible, better funded, accessible to small and rural communities, and support a wider range of solutions that deliver economic, environmental, and social benefits.

A graphic describing three "wins" when investing in natural infrastructure.

Report details

Topic
Climate Change Adaptation
Infrastructure
Nature
Water
Focus area
Climate
Publisher
IISD
Copyright
IISD, 2025