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Canada has been making significant strides in the realm of clean technology and clean energy investments. As one of the countries that has committed to achieving net zero emissions by 2050, enshrined in legislation since 2021, the nation has positioned itself as a global leader in clean tech innovation and sustainability. 

Canada already ranks #2 on the Global Cleantech Innovation Index 2023 and is the 2nd most represented country in the Global Cleantech 100. Canada is the 3rd largest producer of Hydropower and prides itself on acquiring 66.6% of its electricity and 18.9% of its energy supply from renewable sources. 

The country is also a recognized leader in hydrogen and fuel cell technologies, with about 90% of its tech exported, as well as holding an impressive 20% share of the world’s large-scale carbon capture, utilization, and storage projects. 

Canada is home to industry veterans like Carbon Upcycling, Eavor Technologies, Ekona Power alongside emerging cleantech disruptors like Acuicy, Amatec, and Nanode Battery Technologies.

Latest CleanTech and Clean Energy Government Investments in Canada

Since 2017, the Canadian government has invested more than $2.3 billion and earmarked billions more towards innovation, commercialization, and adoption of clean technology. This continuous flow of investment has fostered a vibrant environment of programs and services aimed at assisting cleantech entrepreneurs and adopters throughout the country. As of July 2023, Canada boasted a total of 2,427 pure-play cleantech companies. Among these, Ontario led with 852 firms, followed by British Columbia with 492, Quebec with 400, and Alberta with 391. These four provinces collectively constitute 88% of the country’s cleantech enterprises.

Let’s delve into some of the most recent cleantech and clean energy investments in Canada that are further spurring cleantech growth:

To view more current investments in clean energy in Canada, click here.

Startup Opportunities in CleanTech and Clean Energy in Canada

The future of Canada’s energy landscape presents a unique opportunity for startups in the clean energy and technology sectors. Key findings from Canada’s Energy Future 2023 report predict many pivotal prospects for startups to contribute to this important mission.

Government Support for Startups Emerging in CleanTech and Clean Energy

Canada is actively driving clean innovation through various policies and investments. These include a commitment to achieving net-zero emissions by 2050, a carbon pricing system set to reach $170 per tonne of CO2 emissions by 2030, and over $100 billion in public investments for climate action. Clean technology is a central focus in promoting clean economic growth. 

Canada’s 2023 federal budget allocated an additional $83 billion for clean electricity, cleantech, manufacturing tax credits, and strategic financing. Specific policies and regulations are as follows:

Government Funding:

Cleantech Tax Credits:

Other Support:

The Growth of the Private CleanTech and Energy Market in Canada

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The Canadian cleantech market has experienced remarkable growth in private investment in recent years. Between 2018 and 2022, cleantech funding is estimated to have quadrupled. In 2022, Canadian cleantech saw significant venture capital (VC) investment, totalling CA $1.2 billion across 46 deals. This included CA $40 million in seed investment, CA $452 million in early-stage (Series A and B), and CA $621 million in late-stage VC investment. In 2022, the average deal size reached CA$26 million, the highest since 2018. In the first quarter of 2023, the sector attracted CA $174 million in investment across 21 deals, with an average deal value of CA $8.26 million.

Canada’s rich natural resources, supportive policies, and vibrant ecosystem of innovators and entrepreneurs position it as a global leader in clean technology and clean energy. As we move forward, it is vital to continue innovating, investing in and supporting cleantech initiatives to build a cleaner, greener, and more sustainable world.

Want to Start a Cleantech Business in Canada?

TBDC is the bridge you’re looking for! We are Canada’s premier startup incubator. Successful companies like Ibentos and Ayottaz have graduated from our programs and scaled through North America and the world. Are you ready to do the same and make your mark? To learn more, click here

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