The India-Canada Environment Facility (ICEF) was established in 1993 following the signing of a Memorandum of Understanding (MoU) between the Government of India and the Government of Canada in 1992. It is a joint project of the two governments for the purpose of undertaking environmental projects in the water and energy sectors.

ICEF operates as a registered society under the Indian Societies Registration Act, 1860 and is managed jointly by representatives from the Governments of India and Canada. ICEF works directly with Indian institutions and organizations to enhance and promote environmentally sound development, with principal focus on building and sustaining institutional capacity and related management capability in natural resource and environmental management. The day-to-day operations of ICEF are administered by the Project Office in New Delhi, India.

The decision-making body of ICEF in respect of the sub-projects is the Joint Project Steering Committee (JPSC). The JPSC has eight members, four nominated by the Government of India and four by the Government of Canada. The JPSC is responsible for policy guidance, ensuring the integrity, efficiency and effectiveness of all aspects of ICEF as well as to approve the sub-project selection criteria, ICEF annual budgets, schedule shipment of commodities, and selection and approval of sub-projects.

As of March 31, 2004, ICEF had 29 approved projects. Of these 12 have been concluded and the remaining 17 are under implementation. In addition, under the Small Grants Inititative, 6 small grants projects have been approved during the year. ICEF supported projects have by now directly benefited over half a million people, mainly in rural areas, besides a much larger number where benefits have accrued indirectly. At the end of March 2004, Rs 267 crores (CND$ 89 million) have been committed on closed and ongoing projects, six small grants initiatives and the ICEF Project Office, of which Rs 170 crores (CND$ 56.7 million) has been disbursed. Total disbursements for the year 2003-2004 on projects and ICEFPO has been Rs 23.6 crores (CND$ 7.87 million).