OECD Development Co‑operation Peer Reviews: Canada 2025

Annex B. Progress against OECD legal instruments under the responsibility of the DAC

Recommendations adopted by the Development Assistance Committee

DAC Recommendation on the Terms and Conditions of Aid [OECD/LEGAL/5006]

The average grant element of Canada’s official development assistance (ODA) commitments was 82.3% in fiscal year 2022-23, below the norm of 86% (paragraph 2 of the Recommendation on the Terms and Conditions of Aid). At 0.37% in 2022 and 0.38% in 2023, Canada’s ODA disbursements as a share of gross national income were similar to the 0.37% DAC country average country effort in both years (paragraph 3 of the Recommendation).

In both 2022 and 2023, Canada met the commitment on the special terms for least developed countries (LDCs) (paragraph 8 of the Recommendation), thereby exceeding the 90% norm. The grant element of bilateral ODA commitments to LDCs was 100% in 2022-23. Over 2021-23, Canada also met the alternative norm of maintaining a three-year average of grant element of bilateral ODA to LDCs beyond 86%.

DAC Recommendation on Untying Official Development Assistance [OECD/LEGAL/5015]

Canadian ODA is compliant with the DAC Recommendation on Untying Official Development Assistance. In 2022-23, 100% of its ODA allocated to the countries and sectors covered by the Recommendation was untied against a target of 100%. Regarding its total bilateral ODA to all other sectors and countries beyond the scope of the Recommendation, 99% was untied. Canada is one of the DAC members that adheres strongly to the transparency provisions of the DAC Recommendation by reporting ex-ante notifications of procurement opportunities and ex-post statements on contract awards (OECD, 2022[1]). In 2022, Canada awarded 84 untied contracts with a combined value of USD 40 million; it awarded 85% of them (in terms of number) and 97% (in terms of value) to suppliers based in Canada.

Canada achieves untying through two primary mechanisms: providing flexible funding and untying procurement-related ODA. Approximately 50% of Canada’s ODA covered by the Recommendation was disbursed through multi-donor mechanisms and pooled and/or basket funds. These flexible funding modalities are associated with the highest effectiveness in meeting untying objectives as they ensure that aid contributions are both de jure and de facto untied and that they support the broader DAC Recommendation objectives of co-ordination, alignment and ownership. Additionally, Canada unties procurement-related ODA by granting funds to civil society organisations (CSOs) without restricting their procurement choices even when grants are designated to Canadian CSOs. This is the same approach taken by many other DAC members.

DAC Recommendation on the Humanitarian-Development-Peace (HDP) Nexus [OECD/LEGAL/5019]

In 2020, GAC approved a comprehensive multi-year work plan to implement a humanitarian-development-peace nexus approach. From 2020 to 2022, the implementation of the work plan was driven by a Triple Nexus Core Team with the aim of breaking down siloes and supporting integration. The recent reorganisation is expected to facilitate such integration, though programming siloes remain. In addition, there is still space to better identify entry points for each of the three pillars at the programming stage.

Canada has developed some internal toolkits to support risk-informed and gender-sensitive analysis, such as a conflict prevention framework for the Sahel and coastal West Africa, and to strengthen conflict sensitivity analysis, such as the Integrated Conflict Analysis Process. However, GAC mainly relies on external implementing partners for early warning and analysis. In addition, the limited expertise and guidance on how to conduct conflict-sensitive analysis within the development and humanitarian portfolio can hinder Canada’s effort to both do no harm and to also keep this commitment as a top priority.

In addition to supporting the international dialogue on peacebuilding and statebuilding until 2024, Canada has championed the integration of women in the peace and security agenda. Canada supports co‑ordination through its contributions to the UN Country-based Pooled Funds (CBPFs), the UN Office for the Coordination of Humanitarian Affairs flagship reform initiative, the joint UN Development Programme and UN Department of Political and Peacebuilding Affairs programme to strengthen national capacities for conflict prevention, and the UN partnership facility as well as Interpeace and the International Crisis Group. Canada also contributes to joined-up programming for Ukraine, Israel and Ethiopia.

In line with its commitment to localisation, Canada contributes to UN CBPFs, which are more accessible to local NGOs, and is strengthening its financial instruments targeted at local organisations, though these still account for a very limited share of Canadian funding.

DAC Recommendation on Ending Sexual Exploitation, Abuse and Harassment in Development Co-operation and Humanitarian Assistance [OECD/LEGAL/5020]

GAC’s approach to prevent and respond to sexual exploitation, abuse and harassment (SEAH) is entrenched in its Values and Ethics Code and the Feminist International Assistance Policy (FIAP). GAC is committed to do no harm by engaging in partner dialogues, collaborating with donors and partners, helping to build capacity and pushing for increased survivor-centred approaches. GAC has zero tolerance towards and strongly condemns all forms of sexual misconduct, including sexual exploitation and abuse and sexual harassment in the delivery of international assistance.

In 2018, Canada established the Preventing Sexual Exploitation and Abuse and Harassment (PSEAH) team in GAC, which is dedicated to institutionalising its PSEAH approach throughout the department by building the capacity of their own staff members and of their funded partners, and by collaborating internationally to leverage collective engagement. This team is tasked with ensuring that Canadian partner organisations adhere to SEAH prevention and response measures (Global Affairs Canada, 2024[2]).

Canada has implemented a reporting mechanism to receive cases of sexual exploitation, abuse and harassment in international assistance that ensure accountability and support for victims. Internally, GAC staff members and Canadian public servants can report sexual harassment through a variety of avenues and particularly through the 2021 Work Place Harassment and Violence Prevention Regulations (Goverment of Canada, 2021[3]). GAC started publishing an annual misconduct and wrongdoing report in 2022-23, which included aggregate data on cases of sexual misconduct involving GAC staff members. Support services within GAC include the Employee Assistance Program, which offers psychological support and conflict resolution services, and a dedicated Workplace Harassment and Violence Prevention Division (Global Affairs Canada, 2024[2]). Externally, Canadian partner organisations are required to maintain a publicly available code of conduct addressing SEAH to qualify for funding, and partners are responsible for reporting allegations of SEAH, investigating reported cases and reporting outcomes of such investigations, including disciplinary measures, to GAC (Global Affairs Canada, 2024[2]).

Canada provides training and awareness raising to foster an environment free from SEAH. All GAC employees must complete the Workplace Harassment and Violence Prevention Learning Path when they join the department and renew this training every three years. GAC employees, especially those working in international assistance, are encouraged to follow the Prevention of Sexual Exploitation and Abuse training. The PSEAH team offers team-specific information sessions as well. GAC also collaborates with the Canadian Centre of Expertise on the Prevention of Sexual Exploitation, Abuse, and Harassment, Digna, to expand CSO capacity to prevent and respond to SEAH (Digna, 2024[4]). These efforts are complemented by GAC’s outreach plan to reinforce responsibilities and encourage ongoing dialogue on PSEAH as well as annual dialogues with Cooperation Canada, which hosts Digna and also facilitates discussions on gaps in SEAH prevention and response.

Canada collaborates with international partners to enhance SEAH prevention and response. From May 2022 to August 2024, Canada co-chaired the Reference Group on the OECD DAC Recommendation on Ending SEAH. While Canada did not reprise its role as co-chair in 2024, it continues to actively participate in the Reference Group, sharing good practices and engaging in peer learning with other providers. It also engages with UN Women, the UN Population Fund and other UN entities to promote SEAH prevention and response mechanisms globally. Canada also supports survivor-centred approaches through funding and capacity-building initiatives such as Digna, and it partners with women’s rights organisations (Global Affairs Canada, 2024[2]).

DAC Recommendation on Enabling Civil Society in Development Co-operation and Humanitarian Assistance [OECD/LEGAL/5021]

Canada contributes to the protection and promotion of civic space through policies and programmes. It actively engaged in multiple multi-stakeholder fora to support knowledge sharing, advocacy and innovation to support the resilience of civil society to threats against civic space and is reflecting on the importance of applying a locally led lens and empowering CSOs to shape legal environments. Canada also funded programmes addressing inclusive electoral processes, political finance transparency, international participation of Indigenous leaders, and gender-based violence in online spaces as well as disinformation. GAC’s contribution to the OECD upcoming toolkit on Co-ordinating Action for Civic Space will provide meaningful insights to DAC members.

The Canadian government engages in regular dialogue with Canadian civil society through the CSO Policy Advisory Group. While funding for local CSOs remains limited, GAC is advancing a policy approach to locally led development in consultation with civil society, with a policy guidance note planned for release in 2025. Since the last OECD-DAC peer review in 2018, GAC has also expanded its programmes targeting local organisations – particularly women’s rights organisations including through the Equality Fund, the Women’s Voice and Leadership programme, and the Canada Fund for Local Initiatives – and provides flexible multi-year and responsive funding to core activities of these organisations. Learning from these experiences could be applied and similar approaches implemented across GAC’s CSO funding, including with a view to better balance competitive and core financing. Canada has also reviewed its tax guidance and amended the terrorist financing provisions of its criminal code, administrative revisions that also should foster a more locally led approach.

While Canada is supporting capacity strengthening, in particular regarding gender equality and anti-racism, more can be done to support mutual capacity strengthening and more equitable partnerships between Canadian and partner country CSOs. Sharing reflections and practices with CSOs, and with other DAC members, on how to best support CSOs’ self-regulation and accountability could be useful for Canada and other DAC members.

In its role as incoming co-chair of the DAC Community of Practice on Civil Society, Canada will be well placed to further advance understanding and implementation of the Recommendation within GAC, with other DAC members in the Community of Practice and with external stakeholders.

DAC Recommendation on Gender Equality and the Empowerment of All Women and Girls in Development Co-operation and Humanitarian Assistance [OECD/LEGAL/5022]

Canada’s Feminist International Assistance Policy (FIAP) focuses on gender equality and the empowerment of women and girls, positioning Canada as a recognised global leader on gender equality. The FIAP also helps ensure that gender equality is a core focus while being integrated into other key sectors.

Gender equality is incorporated across GAC’s project cycle, with gender equality specialists providing support at the planning and approval stages to strengthen gender equality outcomes in projects and assess all projects for their score against the DAC gender equality policy marker. Implementing partners are also expected to develop a gender equality strategy at the project operationalisation stage and have gender equality expertise allocated as part of the team overseeing project implementation. Canada has designed innovative programmes such as Women’s Voice and Leadership, providing multi-year core funding to ensure that women’s rights organisations and LGBTQI+ groups have the flexibility to adapt to changing contexts and crises. The FIAP sets an ambitious financial target for promoting gender equality, aiming to ensure that 95% of Canada’s ODA integrates gender equality objectives and 15% have gender equality as a principal (dedicated) objective.

Gender equality is embedded as a cross-cutting issue in monitoring and evaluation. Project and programme monitoring and evaluation must look at gender equality performance in terms of both the planned results achieved and how gender equality was taken into consideration overall. Canada is also experimenting with feminist approaches to monitoring and evaluation for improved learning in projects and programming. Notably, GAC is piloting a feminist monitoring, evaluation and learning system for the Women’s Voice and Leadership programme. Canada can work to better leverage insights from these evaluations to clearly and effectively communicate their results.

The FIAP mandates all GAC staff to advance gender equality and women’s empowerment. Training is available in several areas including Gender-based Analysis Plus, integrating gender equality in innovative financing investments, and tools to integrate gender equality in climate finance and gender performance incentives. However, GAC does not have a senior champion overseeing the implementation of training initiatives and ultimately general implementation of the FIAP.

Recommendations adopted by the Council under the DAC’s responsibility (joint with other OECD committees)

Recommendation on Policy Coherence for Sustainable Development [OECD/LEGAL/0381]

Canada has made specific commitments to foster policy coherence for sustainable development as one of the five main objectives of its 2030 Agenda National Strategy (Government of Canada, 2021[5]). The strategy notes that progress towards policy coherence has been slower than expected, and encourages government agencies to assess the social, economic and environmental impacts of policies, including transboundary impacts, including by identifying gaps, synergies and trade-offs in efforts to achieve the goals of the 2030 Agenda. The 2022-26 Federal Sustainable Development Strategy (Government of Canada, 2024[6]), complemented by departmental sustainable development strategies, sets out goals and targets to achieve the Sustainable Development Goals (SDGs) and implement the UN Declaration on the Rights of Indigenous Peoples. Of particular importance is the attention Canada devotes to women’s rights, gender equality and 2SLGBTQTI+ (two-spirit, Lesbian, Gay, Bisexual, Transgender, Queer, Intersex Plus) rights. The 2024 Canadian Sustainable Jobs Act supports the creation of sustainable jobs for workers and economic growth in a net-zero economy (Government of Canada, 2024[7]). Current reflections on developing an action plan for policy coherence can help Canada further align with the OECD Recommendation.

Employment and Social Development Canada is the lead federal government department for the implementation of the 2030 Agenda in Canada, and GAC is the lead for advancing the Agenda internationally. Inter-departmental committees, at both assistant minister and deputy minister levels, act as steering committees for the implementation of the 2030 Agenda and sustainable development strategy. However, the SDG Unit of Employment and Social Development Canada has limited ability to mediate disputes ad set cross-governmental priorities.

Canada has several processes in place across the federal government and within departments to facilitate the consideration of development issues and manage trade-offs in policy making. These include the Privy Council Office template for Cabinet memoranda, which requires departments to analyse and note the environmental and gender implications of policies; Finance Canada’s Quality of Life framework;1 the Cabinet Directive on the environmental assessment of policy, plan and programme proposals; the Canadian Gender Budgeting Act; and departmental plans and results reports identifying the alignment and contributions to the SDGs (OECD DAC, 2021[8]). In addition, Export Development Canada (EDC) officials commented that since 2019, EDC has adopted a Human Rights Policy, developed Principles of Leverage and Remedy, and established an Environmental, Social and Governance Advisory Council.

However, more can be done to analyse transboundary impact, in particular on well-identified sensitive issues such as extractive and critical minerals and agriculture, and act upon them. While GAC has the mandate to address the transboundary impacts of domestic policies (OECD Council, 2024[9]), the analytical frameworks tend to focus more on the domestic impacts of policies.

Canada’s reporting on progress towards the SDGs (i.e. its Annual Report on the 2030 Agenda and its voluntary national review) was conducted in consultation with various Canadian stakeholders. Groups experiencing marginalisation and vulnerability, including Indigenous Peoples, are consulted throughout the international assistance policy-making cycle, and local partners are consulted in the definition of the climate finance policy. However, for domestic policies, such participation and feedback are more limited.

Recommendation for Development Co‑operation Actors on Managing the Risk of Corruption [OECD/LEGAL/0431]

GAC is reviewing its tools for managing the risk of corruption, in particular its values and ethics code, and is developing a new code of conduct to better define rules and responsibilities including on conflict of interest. A new Grants and Contributions Fraud Management Unit was created in 2020 with the aim to manage fraud allegations, perform external forensic investigations, and provide training and guidance to programmes and recipient organisations.

Canada is one of the few DAC members to have developed training for staff beyond development co‑operation. For instance, trade commissioners are trained on how to support Canadian companies to conduct business in a socially and environmentally responsible manner, with such training also including anti-corruption efforts and reporting requirements in line with globally recognised standards (OECD, 2022[10]).

GAC has developed tools to assess corruption risks and conduct due diligence, mainly through the Fiduciary Risk Evaluation Tool and its focus on risks at the level of both organisations and projects. GAC also has the capacity the investigate suspected fraud and corruption. The ongoing grants and contributions initiatives aims to support a move from a risk-adverse to a risk-aware approach, enabling partnership with a more diverse range of actors.

In 2023, the OECD Working Group on Bribery acknowledged Canada’s enhancement of its foreign bribery framework, introduction of a Remediation Agreement framework and updating of its prosecutorial guidelines. The Working Group expressed concerns, however, regarding the pace of enforcement of the foreign bribery offence and called on Canada to enhance the effectiveness of investigation and prosecution of foreign bribery and related offences and to raise awareness among the public (OECD, 2023[11]). Another challenge is the lack of protection of whistle blowers reporting on fraud, including corruption. While Canada has developed dedicated reporting channels, whistleblower protection and remedies under the Public Servants Disclosure Protection Act apply to officials only when reporting suspicions of fraud or corruption by Canadian public officials, and these would not cover reports or complaints concerning private sector actors.

Recommendation on Environmental Assessment of Development Assistance Projects and Programmes [OECD/LEGAL/0458]

Canada adheres to the OECD Council's Recommendation on Environmental Assessment of Development Assistance Projects and Programmes and has put in place a system to assess and mitigate potential environmental risks in its development co-operation. GAC oversees the policy framework and applies specific tools and procedures, including the Environmental Integration Process (EIP), which streamlines legal and policy requirements from the Impact Assessment Act and the Cabinet Directive on Strategic Environmental and Economic Assessment (Global Affairs Canada, 2024[2]). Canada systematically screens its development initiatives through the EIP, which is intended to ensure that development co‑operation causes no environmental harm and, where possible, yields environmental benefits. These environmental benefits include land use, water resources, air quality and biodiversity conservation, as outlined in the Environment Handbook for Community Development Initiatives (Global Affairs Canada, 2017[12]). When the screening identifies moderate or high risks, projects must incorporate mitigation measures or refrain from funding in cases where these impacts cannot be effectively managed (Global Affairs Canada, 2022[13]).

OECD DAC Declarations

OECD DAC Declaration on a new approach to align development co-operation with the goals of the Paris Agreement on Climate Change [OECD/LEGAL/0466]

Canada’s Feminist International Assistance Policy puts environment and climate action at its core, aiming to integrate climate change and environmental sustainability across all its international assistance (Global Affairs Canada, 2017[14]). GAC has made notable green commitments, including shifting towards a higher share of adaptation and gender-responsive climate finance. It has also piloted innovative approaches such as climate-resilient debt clauses that could be replicated. Ensuring a better balance between mitigation and adaptation as well as reinforcing dedicated support for more vulnerable contexts such as small island developing states and contexts experiencing fragility, could further support Canada in implementing its climate and environmental objectives and, thus, the DAC Declaration.

Canada is scaling up its ambition on climate finance and biodiversity, though its support of the environment and the Rio Conventions in 2022-23 made up a lower share of its ODA than the DAC member average.2 This is due in part to the fact that Canada relies on the multilateral system to deliver part of its environment-related commitments. Canada’s international climate finance programme has been doubled to CAD 5.3 billion over five years, with at least 40% allocated to adaptation and 20% to nature-based solutions and biodiversity co-benefits (Global Affairs Canada, 2024[15]). In addition to working with Canadian and international civil society partners, Canada channels climate and biodiversity finance through multilateral organisations such as the Green Climate Fund and the Global Environment Facility (GEF) as well as through regional development banks. In 2023, Canada launched its first International Biodiversity Program (CAD 350 million over 2023-26) to help developing countries implement the Kunming-Montreal Global Biodiversity Framework. Of that amount, CAD 200 million is for the new Global Biodiversity Framework Fund, which is managed by the GEF and has an aspirational goal of providing 20% of funding for programming led by Indigenous Peoples and local communities. In addition, Canada promotes blended finance in green sectors – for instance through initiatives such as the Canadian Climate Fund for the Private Sector with the Asian Development Bank and the Inter-American Development Bank, which provides concessional financing for renewable energy (Global Affairs Canada, 2024[2]).

Despite such efforts, Canada has room to provide more support on environment-related issues to be more aligned with DAC practice. For instance, Canada could continue to strengthen its monitoring and evaluation efforts. Currently, these processes are guided by GAC’s corporate-level Action Area Results Framework, under which projects report annually on climate and environmental outcomes. An upcoming environment and climate action evaluation and a recently concluded joint evaluation with Environment and Climate Change Canada seek to reinforce learning and accountability on climate-related programming (Global Affairs Canada, 2024[2]).

Canada's low-carbon and climate-resilient development paths are in line with the Paris Agreement goals. Canada’s development policy statements, including the Speech from the Throne 2021 and the 2024 Federal Budget, underline the commitment to advancing low-carbon, climate-resilient development and phasing out coal (Global Affairs Canada, 2024[2]). To transition away from coal, Canada acknowledges that certain lower-emission fossil fuels such as natural gas may, in specific circumstances, serve as temporary alternatives (Global Affairs Canada, 2024[2]). While this approach is meant to safeguard energy access in partner countries, clear criteria and timelines for phasing out all fossil fuel support could further strengthen Canada’s implementation of the DAC Declaration.

References

[4] Digna (2024), About Us (webpage), https://digna.ca/about-us/.

[2] Global Affairs Canada (2024), 2025 OECD DAC Peer Review: Self-Assessment of Canada (unpublished).

[15] Global Affairs Canada (2024), Canada’s Climate Finance for Developing Countries, https://www.international.gc.ca/world-monde/funding-financement/climate-developing-countries-climatique-pays-developpement.aspx?lang=eng.

[13] Global Affairs Canada (2022), Environmental Integration Process – Development Programming, https://www.international.gc.ca/world-monde/funding-financement/environmental_integration_process-processus_integration_environnement.aspx?lang=eng.

[14] Global Affairs Canada (2017), Canada’s Feminist International Assistance Policy, https://www.international.gc.ca/world-monde/issues_development-enjeux_developpement/priorities-priorites/policy-politique.aspx?lang=eng#6.

[12] Global Affairs Canada (2017), Environment Handbook for Community Development Initiatives, https://www.international.gc.ca/world-monde/funding-financement/environment_handbook-manuel_environnement.aspx?lang=eng.

[3] Goverment of Canada (2021), Work Place Harassment and Violence Prevention Regulations, https://laws.justice.gc.ca/eng/regulations/SOR-2020-130/index.html.

[7] Government of Canada (2024), Canadian Sustainable Jobs Act, https://lois-laws.justice.gc.ca/eng/acts/C-23.25/FullText.html.

[6] Government of Canada (2024), Federal Sustainable Development Strategy, https://www.canada.ca/en/environment-climate-change/services/climate-change/federal-sustainable-development-strategy.html.

[5] Government of Canada (2021), Moving Forward Together: Canada’s 2030 Agenda National Strategy, https://www.canada.ca/en/employment-social-development/programs/agenda-2030/moving-forward.html.

[11] OECD (2023), Implementing the OECD Anti-Bribery Convention Phase 4 Report: Canada, Implementing the OECD Anti-Bribery Convention, OECD Publishing, Paris, https://doi.org/10.1787/a063fdd3-en.

[1] OECD (2022), 2022 Report on the Implementation of the DAC Recommendation on Untying Official Development Assistance, ONE Members and Partners, https://one.oecd.org/document/DCD/DAC(2022)34/FINAL/en/pdf.

[10] OECD (2022), Report on the Implementation of the OECD Recommendation for Development Co-Operation Actors on Managing the Risk of Corruption, [C(2022)175], https://legalinstruments.oecd.org/public/doc/347/347.en.pdf.

[9] OECD Council (2024), Report on the Implementation of the OECD Recommendation on Policy Coherence for Sustainable Development (Note by the Secretary-General), OECD Publishing, Paris, https://one.oecd.org/document/C(2024)92/en/pdf.

[8] OECD DAC (2021), Peer Review - Mid-term Review of Canada, https://one.oecd.org/document/DCD/DAC/AR(2024)3/4/en/pdf.

Notes

← 1.  The framework incorporates criteria such as prosperity, health, environment, social cohesion and good governance into federal government budgeting and policy development.

← 2.  According to the OECD Creditor Reporting System (2025 data), Canada committed 25.3% of its total bilateral allocable aid (USD 1.4 billion) in support of the environment and the Rio Conventions in 2022-23 compared with the DAC average of 39% and representing a decline from a 31.3% in 2020-21. Specifically, 15.7% of Canada’s screened bilateral allocable aid focused on environmental issues as a principal objective compared with the DAC average of 9.5%; 18.4% of total bilateral allocable aid (USD 1 billion) focused on climate change overall, up from 15.6% in 2020-21 when the DAC average was 35%. Canada had a greater focus on mitigation (14.6%) than on adaptation (10.6%) in 2022-23. In 2020-21, 6% of its screened bilateral allocable aid (USD 268.4 million) focused on biodiversity overall, up from 3.6% in 2020‑21 when the DAC average was 7.4%.