Renewal of the National Disaster Mitigation Program

Date: October 9, 2020

Classification: Unclassified

Branch/Agency: EMPB / Public Safety

Proposed Response:

• The National Disaster Mitigation Program (NDMP) supports the Government of Canada's commitment to work collaboratively with Provinces and Territories to build safer and more resilient communities.
• Since its inception in 2015, the Program has funded 363 projects for a total value of just over $94 million based on proposals submitted from Provinces and Territories. The Program sunset on March 31, 2020.
• The 2019 evaluation of the NDMP highlighted the ongoing need for mitigation investments. As well, a number of Provinces and Territories advocated for an extension to the program.
• Consequently the Economic and Fiscal Snapshot 2020 earmarked funding for the Program’s renewal for two years beginning in 2020-2021.
• The NDMP supports ongoing efforts to develop a national flood insurance program as well as complementing other financial assistance for disaster mitigation to Provinces and Territories through programs such as the Disaster Financial Assistance Arrangements and the Disaster Mitigation and Adaptation Fund.

Financial Implications:

• Funding for the National Disaster Mitigation Program sunsetted in 2019-20.  The Program was renewed for two years as part of July’s Economic and Fiscal Snapshot

Background:

Disaster mitigation involves proactive measures to eliminate the risk of disasters before they occur in order to protect lives, property, the environment and reduce economic and social disruptions.

International studies have demonstrated that when structural and non-structural measures are implemented in concert, the result is a 6:1 return-on-investment.

The National Disaster Mitigation Program (NDMP) aims to reduce the impacts of natural disasters on Canadians by focusing on investments which address recurring flood risks and costs and advancing work to facilitate a private residential flood insurance market in Canada. To that end, the NDMP was authorized up to $183.8 million over five years in cost-shared contribution funding for Provinces and Territories to invest in merit-based, non-structural and small-scale structural projects.

The Program has funded 363 projects for a total value of just over $94 million based on proposals submitted from Provinces and Territories. The ability of Provinces and Territories to access funding for mitigation projects was initially constrained by the flood-only focus of the program – PTs had planned and were anticipating an all-hazard program. Once PTs adjusted, the intake grew steadily in terms of number of proposed projects.

In accordance with the Treasury Board Policy on Results, an evaluation was conducted at the end of the five-years of the National Disaster Mitigation Program. Key findings from the evaluation include the following:

• there is a continued need for a national approach to support investments in flood disaster mitigation measures; and
• the NDMP contributed to an increase in the number of Canadian communities that undertook mitigation investment projects to reduce their vulnerability to flood disasters.

Financial Management of Flood Risk

A market for private flood insurance has been developing in Canada since 2015. However, up to15 percent of homes in Canada are located in high risk areas. The insurance industry considers a significant proportion of these as ‘uninsurable’ – meaning that insurers are unwilling to offer homeowners affordable flood insurance because of the high likelihood the property will suffer flooding.

PS is leading on a number of initiatives to manage the increasing costs of flooding. An example is through the Advisory Council on Flooding and the associated Working Group on the Financial Management of Flood Risk, the department is exploring the feasibility of various options. Stemming from this Working Group, IBC^Footnote1 developed an option which provides subsidized flood insurance to otherwise ‘uninsurable’ high-risk properties through a reinsurance pool inspired by a model adopted in 2016 by the UK. This option was shared with participants from all levels of government, industry and academia and presented to Federal and PT Ministers responsible for emergency management in January 2019.

The Economic and Fiscal Snapshot 2020 earmarked funding to Public Safety Canada and Indigenous Services Canada to support the creation of a taskforce to develop options for a national high-risk flood insurance program and a national action plan for potential relocation

Disaster Financial Assistance Arrangements (DFAA)

In the event of a large-scale natural disaster, the Government of Canada provides financial assistance to provincial and territorial governments through the DFAA. When response and recovery costs exceed what individual Provinces or Territories could reasonably be expected to bear on their own, the DFAA provides the Government of Canada with a fair and equitable means of assisting provincial and territorial governments.

Since the inception of the program in 1970, the Government of Canada has paid out more than 5.4 billion in post-disaster assistance to help Provinces and Territories with the costs of response and of returning infrastructure and personal property to pre-disaster condition. Financial assistance is also available to implement mitigation measures in the affected area.

Disaster Mitigation and Adaptation Fund (DMAF)

The DMAF is a $2B dollar program, delivered by Infrastructure Canada (INFC), which supports infrastructure projects to help communities better prepare for and withstand natural disasters, extreme weather events, and climate change impacts by preventing infrastructure failures and protecting Canadians and their homes.

Contacts:

Prepared by: Dominik Breton, Manager, Emergency Management Programs, 343-549-2208
Approved by: Patrick Tanguy, Assistant Deputy Minister, Emergency Management and Programs Branch, 613-993-4325

Date modified:

2021-03-12