Despite a federal commitment to accelerate clean growth, a new report finds the nation's cleantech sector is awash in red ink.
OTTAWA, April 20, 2017 /CNW/ - Canada's federal government wants to accelerate the transition to a low-carbon economy, but without smart new policy to build markets, unlock private finance, and secure innovation, our nation's clean-technology sector will quickly fall behind.
That's the conclusion of the latest edition of the 2017 Canadian Clean Technology Industry Report, the most comprehensive annual assessment of Canadian companies and organizations that use market forces to advance social and environmental goals.
On a cash flow basis, the industry appears reasonably healthy—revenues are up 8 per cent over the previous year, the report finds. But the overall industry is not profitable, and shareholder returns are very low, with retained earnings declining every year for each of the past five years. All clean-tech sectors but one have experienced years of negative returns on sales, the report notes.
Celine Bak, president of Analytica Advisors, which produces the report, said that federal and provincial governments—along with Bay Street—can play a part in fixing the current disconnect between intention and reality.
The report recommends that Ottawa overhaul policies that convert innovation into wealth. Chiefly, government should secure intellectual property through standards and public procurement that seeks lower-cost innovative solutions. Bay Street must also identify where climate policy will impact financial returns, the report says.
"With the right federal, provincial and private sector policies, we'll see 'Made in Canada' stickers on clean technologies across China, India, Malaysia, and elsewhere—and that would be a real mark of quality," said Bak.
With market-based policies that target the value innovation to address climate risk and grow the economy, Canada's clean-tech industry could generate around $19 billion in exports, the report finds. This could mean 95,000 Canadians employed in well-paid jobs.
About Analytica Advisors
Analytica Advisors is an Ottawa-based company that monitors and reports on Canada's and the world's expanding clean technology sector through thought-leadership in evidence-based research. It is focused on translating evidence into policies and business practices for the good of society, the environment and the economy, in Canada and around the world.
Key Findings of the 2017 Canadian Clean Technology Industry Report
About the Report
SOURCE Analytica Advisors
For further information: Media Contact: Aliya Jiwan-Thawer, [email protected], 416-999-3355