New analysis identifies where Canadian capabilities align with global demand
OTTAWA, ON, Oct. 8, 2026 /CNW/ -- In an era of geopolitical tensions, energy price volatility and supply chain disruptions, Export Development Canada's (EDC's) latest annual cleantech report identifies key areas where Canada is positioned to capture new export opportunities as countries look to strengthen energy security.
The report, titled Canada's cleantech opportunity: Building economic resilience through trade and exports, outlines why cleantech is becoming a competitive trade opportunity and how adding complexity to our exports will help Canada compete more effectively in the long run. Based on an economic complexity analysis, EDC's Economics team has identified Canada's strongest opportunities as being concentrated in six cleantech value chains: batteries, electric vehicles, fuel cells and hydrogen technologies, nuclear energy, electricity grid equipment and critical minerals.
"The case for cleantech is increasingly economic as well as environmental. As countries look to strengthen economic resilience, energy security and long-term competitiveness, clean technologies are becoming a strategic industrial opportunity rather than simply a climate policy tool," explains Prerna Sharma, author of the report and principal economist at EDC.
While most economies will continue to depend on international trade for fuels, equipment, components, critical minerals, technology and financing, greater cleantech trade can provide more choice, reduce reliance on a small number of suppliers or fuel sources and make supply chains more flexible.
According to Statistics Canada, the cleantech sector contributed $70 billion in real GDP (3% of Canada's total GDP) and supported 363,000 jobs across the country in 2024. Yet Canada had a $15.6-billion cleantech trade deficit in 2024. While Canada participates actively in the global clean economy, there's a significant opportunity to unlock greater value from the sector by expanding domestic capabilities in higher-value technologies while also diversifying export markets.
"Global investment in clean technology has surpassed $2 trillion annually, and Canada is ready to compete and win here," said The Honourable Maninder Sidhu, Minister of International Trade. "Our environmental and clean technology sector already supports 363,000 jobs from coast to coast. By securing new trade agreements, we will ensure Canadian companies in this sector reach new customers and markets around the world."
Key highlights from EDC's 2026 cleantech report
- Stability and security: Recent energy shocks, ongoing geopolitical tensions and supply chain disruptions have reinforced the importance of identifying the cleantech sectors and value chains that can strengthen resilience while creating new opportunities for growth and trade. Canada's strengths in batteries, electric vehicles (EVs), fuel cells and hydrogen technologies, nuclear energy, electricity grid equipment and critical minerals all aid this goal.
- The flow of capital: Capital continues to favour cleantech, but investment is concentrated in mature, scalable technologies with proven demand. The transition from demonstration to commercial deployment in nascent clean technologies remains one of the most difficult financing stages in the cleantech ecosystem.
- Trade opportunities amid diversification: Global demand for clean technologies is creating significant trade opportunities, but production of several major clean energy technologies and critical minerals remains concentrated in a small number of markets, and China continues to play an outsized role. To succeed, Canadian solutions must respond to a clearly defined market need, fit within evolving supply chains and be able to compete on cost, reliability and ease of deployment. Expanding to Europe, the Asia-Pacific and other markets investing in energy security and electricity infrastructure could provide additional opportunities for Canadian firms.
- Capturing more value from what we have: For Canada, the next stage of growth will require the development of higher-value capabilities in advanced equipment, components, technologies and services that support the energy transition. For example, critical mineral extraction can provide an important foundation, but additional value may be captured through processing, advanced materials, specialized equipment, recycling and technical expertise. This topic was explored in a recent EDC report, which found Canada could add up to $100 billion to GDP by 2035 by moving into more sophisticated, higher-value products and services.
Learn more about EDC's support for Canadian cleantech exporters and explore additional cleantech insights and resources. To access the full cleantech report, visit EDC.ca.
About EDC
Export Development Canada (EDC) is a financial Crown corporation dedicated to helping Canadian businesses make an impact at home and abroad. EDC has the financial products and knowledge Canadian companies need to confidently enter new markets, reduce financial risk and grow their business as they go from local to global. Together, EDC and Canadian companies are building a more prosperous, stronger and sustainable economy for all Canadians. For more information and to learn how we can help your company, call us at 1-800-229-0575 or visit www.edc.ca.
SOURCE Export Development Canada
Media contact: Media | Export Development Canada, 1-888-222-4065, [email protected]
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