Canada pushing clean technology sector with $700 million funding program
The Canadian government has announced investments of up to C$700 million (around USD 562 million) through the Business Development Bank of Canada (BDC) over the next five years to grow Canada’s clean technology industry, protect the environment and create jobs, with opportunities for Canada's geothermal sector.
Late last week, the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development of Canada, joined by the Honourable Catherine McKenna, Minister of Environment and Climate Change, announced that the Government of Canada will invest C$700 million (around USD 562 million) through the Business Development Bank of Canada (BDC) over the next five years to grow Canada’s clean technology industry, protect the environment and create jobs.
Canadian clean technology companies produce innovative and competitive technologies that use less energy or reduce negative impacts on the environment. Through today’s investment, BDC will take on more risk to help high-potential clean tech firms expand by providing them with the capital they need to hire new staff, develop products, support sales, and scale up and compete globally.
Minister Bains, along with the Honourable Jim Carr, Minister of Natural Resources, also announced the launch of the Clean Growth Hub, the government’s focal point for clean technology. The Hub will focus on supporting companies and projects that produce clean technology, as well as coordinate existing programs and track results.
Budget 2017 took steps to boost the growth of Canada’s clean technology producers. It set aside more than C$2.3 billion for clean tech. That’s the largest public investment ever committed to this field in Canada.
Investments in clean technology are part of the Government’s Innovation and Skills Plan, a multi-year strategy to create well-paying jobs for the middle class and those working hard to join it. Investments in clean technology also support the Pan-Canadian Framework on Clean Growth and Climate Change.
- In support of clean growth in Canada, the BDC will make investments in clean technology producers showing strong potential. Specific selection factors include technology demonstrated commercially, growth potential, and an ambition to scale up.
- To help clean technology firms grow, the Innovation and Skills Plan includes investments of nearly C$1.4 billion in new financing on a cash basis, starting in 2017–18. This new financing, through the Business Development Bank of Canada and Export Development Canada, is being allocated as follows: C$950 million in growth capital to support clean technology producers and approximately C$450 million in additional project finance for clean technology producers.
- Budget 2017 also made available C$400 million to re-capitalize Sustainable Development Technology Canada’s SD Tech Fund, which supports the development and demonstration of early-stage clean technology projects.
This funding provides a good opportunity for companies of Canada’s geothermal sector to receive support for technology development as well as development activities. The Canadian geothermal energy sector is represented in the country through the Canadian Geothermal Energy Association (CanGEA).