Growing Canada's economy through clean technology
Opportunity for more private investment in high-growth market where Canada has a global advantage
TORONTO, April 5, 2017 /CNW/ - Canada's leadership in the development of renewable energy and of technologies that emit lower carbon emissions provides an opportunity for more private investors to capture the proceeds of a high-growth market.
That was the message delivered by the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development, at a conference sponsored by GLOBE Capital, a convenor of conferences on sustainable business.
Minister Bains described the Government of Canada's clean technology strategy, outlined in Budget 2017. The strategy includes:
- $1.4 billion in new financing available to clean-tech producers, which will help start-up companies grow beyond our borders, support firms throughout their growth path and create well-paying jobs for Canadians.
- $400 million over five years for the Sustainable Development Technology Fund, which supports early-stage clean-tech companies.
- $15 million over four years to establish an international business development strategy for clean tech, which will support entrepreneurs who sell their products and services abroad as the future of clean tech relies on the ability of producers to access new export markets globally.
All these elements will require the full participation of the private sector, which has a significant opportunity to invest in the scale-up of Canadian clean-tech companies and capture the proceeds of their growth.
Creating new opportunities for Canadians to do business more easily and accelerating the growth of their companies are priorities in the Government's Innovation and Skills Plan. The plan will ensure that Canadians develop the skills and seize new opportunities to succeed in a growing economy.
Quote
"Canada's globally recognized expertise in clean technology is a promising area for growth and investment. It's also an area of the economy that cushions us against the intensifying effects of climate change. Clean technology points to a clear and strategic direction for economic development through innovation. Clean tech shows that conservation and innovation can be competitive advantages. Now is the time for Canada to reinforce its globally competitive advantage in clean tech. Our country can serve as a model to all nations seeking a responsible, sustainable way of life. The time to invest in Canada is now."
– The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development
Quick facts
- In December 2016, Canada's First Ministers adopted the Pan-Canadian Framework on Clean Growth and Climate Change. It outlines federal-provincial-territorial commitments on zero-emission vehicle technologies. These technologies include plug-in hybrids, electric vehicles and hydrogen fuel-cell vehicles. The Pan-Canadian framework also identifies opportunities to produce renewable fuels and fuel created from biowaste.
Related product
- Backgrounder: Budget 2017 Measures to Support Clean Technology
Associated links
Follow Minister Bains on Twitter: @MinisterISED
April 5, 2017
Backgrounder
Budget 2017 Measures to Support Clean Technology
To support building early-stage innovation, Budget 2017 proposes to provide:
- $400 million over five years, starting in 2017–18, to recapitalize Sustainable Development Technology Canada's SD Tech Fund to support projects across Canada to develop and demonstrate new clean technologies that promote sustainable development, including those that address environmental issues such as climate change, air quality, clean water and clean soil.
- $200 million over four years, starting in 2017–18, to Natural Resources Canada, Agriculture and Agri-Food Canada and Fisheries and Oceans Canada to support clean technology research, development and demonstration and the adoption of clean technology in Canada's natural resources sectors.
- up to $950 million over five years, starting in 2017–18, focused on supporting highly innovative sectors such as clean technology and natural resources, including a small number of business-led innovation superclusters that have the greatest potential to accelerate economic growth.
- $75 million over 2 years, starting in 2017–18, to address challenges such as helping Canada's rural and remote communities reduce their reliance on diesel as a power source.
- $229 million over four years, starting in 2018–19, to Natural Resources Canada and Transport Canada to continue research and development activities through their core clean energy and clean transportation innovation programming.
To accelerate commercialization and growth, Budget 2017 proposes to provide:
- nearly $1.4 billion in new financing, starting in 2017–18, through the Business Development Bank of Canada and Export Development Canada:
- $380 million in equity financing to support clean technology firms;
- $570 million in working capital to support clean technology firms; and
- approximately $450 million in additional project financing for capital-intensive clean technology firms.
- up to $400 million over three years through the Business Development Bank of Canada, beginning in 2017–18, for a new Venture Capital Catalyst Initiative to increase late-stage venture capital available to Canadian entrepreneurs.
- $15 million over four years, starting in 2017–18, to Global Affairs Canada to implement an international business development strategy to help Canadian clean technology firms become world leaders and capitalize on growing global market opportunities.
- $1.26 billion to create the five-year Strategic Innovation Fund, including $100 million for clean technologies, to attract and support new high-quality business investments in the aerospace and automotive sectors and in dynamic and emerging sectors such as clean technology.
To foster greater adoption, Budget 2017 proposes:
- to provide up to $50 million, starting in 2017–18, to launch Innovative Solutions Canada, a new procurement program modelled on the U.S. Small Business Innovation Research program, to support early-stage research and development, late-stage prototypes, and other goods and services for Canadian innovators and entrepreneurs.
- to invest in green infrastructure:
- $100 million to support next-generation smart grid, storage and clean electricity technology demonstration projects;
- $200 million to support the deployment of emerging renewable energy technologies nearing commercialization;
- $220 million to reduce the reliance of rural and remote communities south of the 60th parallel on diesel fuel and to support the use of more sustainable, renewable power solutions;
- $120 million to deploy infrastructure for electric vehicle charging and natural gas and hydrogen refuelling stations, as well as to support technology demonstration projects; and
- $182 million to develop and implement new building codes to retrofit existing buildings and build new net-zero energy consumption buildings across Canada.
- to expand eligibility for accelerated capital cost allowance to a broader range of geothermal projects and expenses, as well as to encourage greater use of geothermal energy to meet Canada's heating and electricity generation needs.
To strengthen collaboration and metrics for success, Budget 2017 proposes:
- $12 million over four years, starting in 2017–18, for Innovation, Science and Economic Development Canada and Natural Resources Canada to establish a Clean Growth Hub within the newly announced Innovation Canada single-window service to streamline client services, improve federal program coordination, enable tracking and reporting on clean technology results across government, and connect stakeholders to international markets.
- $14.5 million over four years, starting in 2017–18, for Natural Resources Canada and Innovation, Science and Economic Development Canada to develop a clean technology data strategy to foster innovation, improve knowledge in the private sector and stakeholder communities, and help inform future government decision making.
- that the Government will work with stakeholders and partners to develop a comprehensive clean technology strategy to identify innovation opportunities, set ambitious growth targets, pinpoint sector-specific challenges and bottlenecks to innovation, and help innovators achieve their targets.
SOURCE Innovation, Science and Economic Development Canada
For further information: Karl W. Sasseville, Press Secretary, Office of the Minister of Innovation, Science and Economic Development, 343-291-2500; Media Relations, Innovation, Science and Economic Development Canada, 343-291-1777, [email protected]
Share this article