National

Canada has emerged as a clean technology leader, with 12 firms on the Global Cleantech 100 list. The list, published by industry monitor Cleantech Group, identifies firms most likely to make a significant environmental and economic impact in the next 5–10 years.

Why it matters: Businesses are facing increasing pressure to reduce their environmental footprint and mitigate risks tied to extreme weather events. Clean tech helps traditional industries operate more efficiently, reduce greenhouse gas emissions and feed a growing population more effectively by creating sustainable construction materials, purifying contaminated water, turning plastics into specialty chemicals, making farming more efficient, and improving energy efficiency in buildings.

Details: Canada's clean tech sector has grown through investment from both industry and government. Sustainable Development Technology Canada, an arm’s-length fund of the federal government that finances clean technology demonstration projects, has seeded the sector with $1.36 billion in funding since 2001.

Support for the sector was maintained even as other developing technologies were attracting more investment.

Private venture capital is also expressing renewed interest: $365 million was invested in Canadian clean tech companies in the first half of 2018, double the amount in the same period of 2017.

Yes, but: Even as last year’s UN report highlighted the urgency and scale of climate change, carbon emissions rose 3% in 2018. Clean tech can offer some ways to mitigate carbon emissions, but it is far from sufficient.

The big picture: The greatest problems facing the environment are extremely difficult to solve. But entrepreneurs are working hard to develop solutions, and countries that have invested in those solutions will be well positioned to reap the economic benefits.

Jane Kearns is a senior adviser with MaRS Cleantech.

Canada's clean tech industry on the rise after decades of investment

The sector has been seeded with $1.36 billion in federal funding since 2001.

A wind turbine outside Liberty Grand Entertainment Complex in Toronto, Ontario, Canada. 

A wind turbine outside Liberty Grand Entertainment Complex in Toronto. Photo: Creative Touch Imaging Ltd./NurPhoto via Getty Images

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Canada has emerged as a clean technology leader, with 12 firms on the <a class="gtmContentClick" data-vars-link-text="Global Cleantech 100 list" data-vars-click-url="https://www.cleantech.com/event/cleantech-forum-sf/" data-vars-content-id="03f6ae74-7471-4fa6-9c86-d77360641c09" data-vars-headline="Canada&#x27;s clean tech industry on the rise after decades of investment" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.cleantech.com/event/cleantech-forum-sf/" target="_blank">Global Cleantech 100 list</a>. The list, published by industry monitor Cleantech Group, identifies firms most likely to make a significant environmental and economic impact in the next 5–10 years.Why it matters: Businesses are facing increasing pressure to reduce their environmental footprint and mitigate risks tied to extreme weather events. Clean tech helps traditional industries operate more efficiently, reduce greenhouse gas emissions and feed a growing population more effectively by creating <a class="gtmContentClick" data-vars-link-text="sustainable construction materials" data-vars-click-url="https://www.carboncure.com/" data-vars-content-id="03f6ae74-7471-4fa6-9c86-d77360641c09" data-vars-headline="Canada&#x27;s clean tech industry on the rise after decades of investment" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.carboncure.com/" target="_blank">sustainable construction materials</a>, purifying contaminated <a class="gtmContentClick" data-vars-link-text="water" data-vars-click-url="https://axinewater.com/" data-vars-content-id="03f6ae74-7471-4fa6-9c86-d77360641c09" data-vars-headline="Canada&#x27;s clean tech industry on the rise after decades of investment" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://axinewater.com/" target="_blank">water</a>, turning <a class="gtmContentClick" data-vars-link-text="plastics" data-vars-click-url="http://greenmantra.com/" data-vars-content-id="03f6ae74-7471-4fa6-9c86-d77360641c09" data-vars-headline="Canada&#x27;s clean tech industry on the rise after decades of investment" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="http://greenmantra.com/" target="_blank">plastics</a> into specialty chemicals, making <a class="gtmContentClick" data-vars-link-text="farming" data-vars-click-url="https://semios.com/" data-vars-content-id="03f6ae74-7471-4fa6-9c86-d77360641c09" data-vars-headline="Canada&#x27;s clean tech industry on the rise after decades of investment" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://semios.com/" target="_blank">farming</a> more efficient, and improving <a class="gtmContentClick" data-vars-link-text="energy efficiency in buildings" data-vars-click-url="https://www.ecobee.com/" data-vars-content-id="03f6ae74-7471-4fa6-9c86-d77360641c09" data-vars-headline="Canada&#x27;s clean tech industry on the rise after decades of investment" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.ecobee.com/" target="_blank">energy efficiency in buildings</a>.

Ominous forecasts about the impact of climate change serve as the backdrop for the world — led by U.S. lawmakers and companies — to debate big action on the problem, which could upend energy systems and our way of life.

Energy & Environment

President Trump campaigned on promises to boost coal jobs and is following through — most recently with a leaked memo directing the Department of Energy to throw a “lifeline” to the struggling coal and nuclear industries.

Why it matters: While the global renewable energy market surges, the coal industry remains on life support. From 2016 to 2018, the number of new coal plants dropped by 73%. Although Trump claims that investing in coal over clean energy will boost the job market, the hard truth is that a significant number of U.S. coal jobs cannot feasibly return.

In 2016, two thirds of new global power capacity came from solar, and the U.S. solar industry employs more people than oil, coal and gas combined. Instead of seizing this opportunity, the Trump administration has imposed tariffs on imported solar panels, leading to billions of dollars in canceled projects and lost jobs.

America’s lack of investment and unprecedented energy market intervention open the door for others to win in this massive market. Canada, especially, is walking through. Here's how:

Government support: More than CDN $2.2 billion has been allocated to finance clean tech innovations.

Talent influx: In response to Trump’s immigration and visa policies, talent is flowing into Canada, which launched an expedited work-permit process last year.

Private funding: Canadian VC firms, like Cycle Capital and Evok Innovations, continue to pour hundreds of millions into clean tech ventures.

Political climate: Amid geopolitical uncertainty, Canada remains a pillar of stability in the global community.

The bottom line: The Trump administration's policies will impede economic growth and cede its potential leadership role in addressing climate change, while Canada and others rise to the challenge.

As U.S. looks to coal, Canada sets sights on renewables

New growth in global power capacity is being driven by solar and other renewables.

Workers install solar panels on the roof of an Ikea

Workers install solar panels on the roof of an Ikea near Toronto. Photo: Colin McConnell/Toronto Star via Getty Images

Renewable energy

President Trump campaigned on promises to boost coal jobs and is following through — most recently with a leaked memo directing the Department of Energy to throw a “<a class="gtmContentClick" data-vars-link-text="lifeline" data-vars-click-url="https://www.nytimes.com/2018/06/01/climate/trump-coal-nuclear-power.html" data-vars-content-id="af9dc1fb-4678-4d7b-823a-cc94757225f6" data-vars-headline="As U.S. looks to coal, Canada sets sights on renewables" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.nytimes.com/2018/06/01/climate/trump-coal-nuclear-power.html" target="_blank">lifeline</a>” to the struggling coal and nuclear industries.Why it matters: While the global renewable energy market surges, the coal industry remains on life support. From 2016 to 2018, the number of new coal plants <a class="gtmContentClick" data-vars-link-text="dropped by 73%" data-vars-click-url="https://qz.com/1235125/the-number-of-coal-plants-worldwide-is-shrinking-but-nowhere-near-enough/" data-vars-content-id="af9dc1fb-4678-4d7b-823a-cc94757225f6" data-vars-headline="As U.S. looks to coal, Canada sets sights on renewables" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://qz.com/1235125/the-number-of-coal-plants-worldwide-is-shrinking-but-nowhere-near-enough/" target="_blank">dropped by 73%</a>. Although Trump claims that investing in coal over clean energy will boost the job market, the hard truth is that a significant number of U.S. coal jobs <a class="gtmContentClick" data-vars-link-text="cannot feasibly return" data-vars-click-url="http://energypolicy.columbia.edu/publications/report/can-coal-make-comeback" data-vars-content-id="af9dc1fb-4678-4d7b-823a-cc94757225f6" data-vars-headline="As U.S. looks to coal, Canada sets sights on renewables" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="http://energypolicy.columbia.edu/publications/report/can-coal-make-comeback" target="_blank">cannot feasibly return</a>.

EPA Administrator Scott Pruitt announced last week his intention to scrap Obama-era plans to increase emissions standards. According to the Natural Resources Defense Council, the higher standards were projected to save over 2 million barrels of oil per day, and to cut $1 trillion in fuel costs and 5 billion metric tons of emissions by 2030.

Why it matters: Abandoning the standards increase means the U.S. will fall behind the rest of the world in transportation innovation just as China moves forward with tighter standards, leaving American companies excluded from the world's largest automobile market.

The other side: Automakers asked the Trump administration for leeway, claiming that technologies don't yet exist for them to meet the Obama-era targets. Hoping to boost America's automotive industry, Pruitt and Trump acquiesced.

But beyond their benefits to the environment, the standards were expected to jumpstart the innovation that would allow automakers to meet them. While California and 11 other states engage in a legal challenge to block the rollback, the industry will be put in limbo. The auto companies are unlikely to continue investing in, and purchasing from, firms  developing new technologies — like hybrid and electric propulsion systems, lightweight materials and better batteries — that would help meet the former targets.

The bottom line: The EPA decision is bad for consumers, workers, the economy and the planet. It ignores the costs to international sales, to drivers with less fuel-efficient cars, and to the 288,000 American employees across 48 states who make innovative components for reducing vehicle pollution and improving gas mileage.

EPA emissions rollback a hit to climate, innovation

The U.S. will cede its competitive edge and fall further short of climate targets.

Hybrid Range Rover model and charging station at car show

The Land Rover plug-in hybrid Range Rover Sport at the AutoMobility LA show in November 2017. Photo: Kevork Djansezian/Getty Images

Automobiles

EPA Administrator Scott Pruitt <a class="gtmContentClick" data-vars-link-text="announced" data-vars-click-url="https://www.epa.gov/newsreleases/epa-administrator-pruitt-ghg-emissions-standards-cars-and-light-trucks-should-be" data-vars-content-id="fb24b0b1-2f38-471f-9952-4928975f4d03" data-vars-headline="EPA emissions rollback a hit to climate, innovation" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.epa.gov/newsreleases/epa-administrator-pruitt-ghg-emissions-standards-cars-and-light-trucks-should-be" target="_blank">announced</a> last week his intention to scrap Obama-era plans to increase emissions standards. According to the <a class="gtmContentClick" data-vars-link-text="Natural Resources Defense Council" data-vars-click-url="https://www.nrdc.org/trump-watch/trump-makes-u-turn-clean-cars" data-vars-content-id="fb24b0b1-2f38-471f-9952-4928975f4d03" data-vars-headline="EPA emissions rollback a hit to climate, innovation" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.nrdc.org/trump-watch/trump-makes-u-turn-clean-cars" target="_blank">Natural Resources Defense Council</a>, the higher standards were projected to save over 2 million barrels of oil per day, and to cut $1 trillion in fuel costs and 5 billion metric tons of emissions by 2030.Why it matters: Abandoning the standards increase means the U.S. will fall behind the rest of the world in transportation innovation just as China moves forward with tighter standards, leaving American companies excluded from the world&#x27;s largest automobile market.

Jane Kearns

Stories

Canada's clean tech industry on the rise after decades of investment

As U.S. looks to coal, Canada sets sights on renewables

EPA emissions rollback a hit to climate, innovation