Sylvie Trottier says that while the richest countries are the biggest contributors to climate change, it has long been recognized that the least rich countries will unfortunately bear the brunt of its effects.

“This is true on an individual level as well, and it’s something I struggle with personally,” said Trottier, a philanthropist and board member of the Trottier Family Foundation. Available’Matt Galloway.

Last week, nine wealthy Canadian families and foundations, including Trottier’s, donated a total of $405 million over the next decade to help combat climate change.

The pledge was made through the Climate Champions initiative, a campaign by the Clean Economy Fund, a charity focused on increasing climate-focused philanthropy in Canada.

Trottier said climate change is an existential threat, adding that “there is no other problem as urgent.”

But in 2022, $106 million (just 0.9 per cent) of Canada’s charitable donations went to climate-related causes. This is slightly below the global average of 1.6 percent. according to data From the Clean Economy Fund.

“There is no single organization that can solve this problem on its own, so many philanthropists and funders think it is easier to fund a hospital or a university or something much more concrete,” Trottier said. According to its website, the Trottier Family Foundation supports projects focused on mitigating climate change and protecting the environment.

“What funders can do is be the single domino that drives things and elevates solutions to the level we need them to play at.”

Climate philanthropy is necessary because it’s not enough for the government or the private sector to shoulder the entire burden of financing climate action, says Basav Sen, climate justice project director at the Institute for Policy Studies, a think tank in Washington, D.C.

“The nonprofit sector needs philanthropic funding to function. As we’ve seen from country to country over the last few decades, it’s the grassroots social movement and civil society that’s driving a lot of the necessary transformation that’s already happened,” Sen said.

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Transition to a low carbon economy

Bruce Lourie, president of the Ivey Foundation, says that although climate change is a complex problem, he sees an obvious solution.

“We know we need to stop burning fossil fuels; that’s the real problem,” Lourie said.

“We’re talking about a complete reorganization of the global economy. Moving from a fossil fuel-based economy to electricity.”

The Ivey Foundation said it supports organizations, communities and initiatives that accelerate this transition “by owning equity in major projects that will stimulate the economy.” In 2022, The foundation announced that it will end its activities in 2027 and allocated its $100 million donation to climate-related projects.

This includes funding for projects that support heat pump and HVAC technician skills development and research into hydrogen uses.

He also wants to show political leaders that moving away from fossil fuels is economically beneficial.

“This will create millions of jobs in communities across our country and attract billions of dollars in investment as oil investments decline,” he said.

It points to: Ontario government’s investments in the growing electric vehicle manufacturing sector as an example of the transition to a greener economy.

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Grassroots organizations need support

Sen says there are a number of factors to consider to ensure the effectiveness of philanthropic contributions, noting that the general trend in philanthropy is to contribute to organizations that are already well-funded.

“I think the smaller, less funded grassroots organizations are really the most advanced and most effective in terms of finding solutions,” Sen said.

“This is to be expected because those closest to the problem are closest to the solution.”

But Sen warns that philanthropy can give donors disproportionate power to set the agenda if “wealthy individuals use their economic influence to steer solutions in a direction that is preferable to them rather than one that is in the best interest of humanity.”

He says government-led wealth redistribution policies (taxing wealthier individuals and companies more) should play a bigger role. He explained that the additional revenue could then be used to fund government programs that support under-resourced communities struggling with the effects of climate change.

take action

Sen recommends donors engage directly with communities affected by the harmful effects of fossil fuel extraction and use, including low-income communities and Indigenous communities.

“Find out what they need, find out what solutions they are working on, and fund them,” Sen said.

Trottier agrees, and says he’s calling on other philanthropists and wealthy families to donate more and invest in a way that will help accelerate the transition to a “cleaner, healthier, greener future.”

“We have a responsibility to play a role.”

“The riskiest thing here is to actually do nothing. Say, ‘Someone else will do it’ or ‘I don’t know where to start,'” he said.