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.