In a rapidly evolving industry brimming with opportunity for Canadian cleantech innovators, partnerships, connections and market diversification are essential if we want to achieve our net zero goals and create a sustainable future.
This was one of the powerful messages shared at Export Development Canada’s 2024 Cleantech Export Summit on Oct. 29. Now in its eighth year, the conference attracted cleantech experts, entrepreneurs and ecosystem partners from across Canada to discuss sector trends, the latest technologies and strategies for fighting climate change.
“Events like this, reinforce the need for collaboration and the power of ‘we over me,’” says Jeff Keats, EDC’s national cleantech lead, ecosystems. “Our impact, of course, is dependent on collaborations: Between cleantech companies, adopters, funders, government, policy-makers and many others. It’s why we host our annual summit, bringing together all parties in a shared goal to drive our industry forward and make the world a cleaner and greener place.”
Since 2012, one of EDC’s strategic focuses has been on cleantech, providing approximately $50 billion to Canadian cleantech companies to support energy transition and decarbonization—working with almost 500 cleantech customers in 2024 alone.
“We’re proud to support the cleantech sector in Canada. Our financing, risk mitigation, knowledge and connections programming have supported hundreds of cleantech companies on their growth journey and net zero goals,” says Sophie Dumoulin, director of cleantech at EDC.
Here are three key themes from this year’s summit that cleantech companies should consider heading into 2025:
1. Funding, connections and partners will help you succeed: Having the proper funding, trusted connections and international partnerships can set you up for success when expanding your cleantech business beyond Canada.
2. Going global provides more opportunities for growth: It’s prime time for growth in cleantech as we approach US$2 trillion in annual investments into clean energy projects.
3. Embrace Team Canada to drive value for your organization: It’s often said, “You’re only as strong as your network.” For cleantech, that’s key. Canadian businesses thrive when public and private sectors unite to create a credible, supportive ecosystem through funding and expertise, to help advance Canadian sustainable technology.
Funding, connections and partners will help you succeed
“The Canadian market is vibrant but is a fraction of a percent of the total global addressable market. At EDC, we help cleantech companies with solutions to scale globally,” says Keats. “Having partners such as the Canadian Trade Commissioner Service (TCS) at Global Affairs Canada is a vital part of the Canadian ecosystem working to bring Canadian cleantech innovations to the world.”
Key takeaways
- Funding first: Explore a diversity of funding and capital options, including grants, subsidies, debt, equity and tax credits, to enable scaling and growth.
- Global networking: Build relationships with diplomatic and international trade teams, like the TCS, to help open pathways abroad.
- The power of global partnerships and connections: Major sustainability targets are being set by corporations around the world. Leverage the cleantech ecosystem in Canada to help assess if your technology might be a good fit for introductions to global players’ supply chains and sustainability initiatives.
- Investment tax credits: Leverage the Canadian Clean Technology (CT) Investment Tax Credits (ITC) as four of the six tax credits are claimable now. Look to the Canada Revenue Agency (CRA) for guidance on how to claim the credit on a corporate income tax return—just make sure you save your homework in case of a tax audit down the road. If you’re unsure if your technology fits the requirements, Natural Resources Canada (NRCan) provides technical descriptions.
Watch the video for more about the Investment Tax Credits
Going global provides more opportunities for growth
Consider these International Energy Agency (IEA) statistics released in October.
- More than half the world’s electricity will be sourced from low-emission projects by 2030.
- Renewable energy capacity is set to triple within the next decade.
Canadian companies are in a strong position as one of the world leaders in both existing cleantech and emerging innovations, like clean artificial intelligence (AI), energy storage, critical minerals, nuclear power, carbon capture, utilization and storage (CCUS) and hydrogen, which are highlighted in our recently released cleantech report, On the cleantech frontier: How artificial intelligence is impacting innovation.
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Read this important EDC report to find out how AI is shaping the future of clean technology
The report offers insights on Canada’s cleantech sector and investment patterns, AI-enabled cleantech and the opportunities and risks, along with challenges and areas of growth for Canadian cleantech exporters.
Global gross domestic product (GDP) growth is expected to be driven by markets in regions such as the Indo-Pacific which represents 40 countries, more than four billion people and $47 trillion in economic activity. It’s now Canada’s second-largest trading partner. Markets, like the Indo-Pacific, offer growth-driven economies and ambitious infrastructure overhauls aimed at sustainability.
Tips to consider when exploring new markets:
- Prep is everything: Do your market research and map out your value prop, consider cultural sensitives and research trade shows by sector and country to see who your competitors are. About 80% of success in exporting is the result of proper preparation at home.
- Know your target market: Make sure you understand the regulations in your target markets and market conditions to ensure they’re a good fit for your business.
- Technology maturity: Ensure your technology is mature enough for your targeted markets. To do that, you may need to prove your technology in Canada before reaching out internationally or build it out in an external market if the conditions are more favourable.
- Know your value prop and know your competitors in your markets: If you want to ask for a premium, you have to understand why.
- Develop a market plan: If you want to enter a new market, you need a solid plan. It’s also important to talk to your partners to leverage their expertise and experience in helping cleantech companies grow and scale.
- Stay committed to regional strategies: While short-term wins may be rare, cultivating long-term partnerships can pay dividends for years.
- Prioritize cleantech markets with growing demand: These include regions prioritizing industrial decarbonization, renewable infrastructure and sustainable development.
Embrace Team Canada to drive value for your organization
Speakers at the summit emphasized the collaborative “no wrong door” approach among Canadian support institutions such as the Business Development Bank of Canada (BDC), Export Development Canada (EDC), the Canada Growth Fund (CGF) as well as banks and venture capital firms. There’s a large, committed ecosystem ready to support innovation in cleantech.
“At EDC, we value collaborating with cleantech ecosystem partners—including government, private sector organizations and commercial banks—on solutions such as our Export Guarantee and Investment Matching programs,” says Jeremy Melhuish, vice-president of Sectors & International Advisory at EDC. “Referrals are often made within the ecosystem as funders have different focus areas, so they may direct companies to others who might better fit their specific needs.”
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From in-market expertise to financing, find the right government services for your business.
Strategies for fundraising and growth:
- Be transparent about your needs: Partners are ready to refer you to the right resources, whether you’re pre-revenue, scaling, or looking to export.
- Collaboration is mandatory: Financing breakthrough technologies often involves balancing public and private investments. Don’t be afraid to double dip.
- Explore options: There are various forms of capital and funding available, but there’s no “one size fits all.”
- Find the right partners: Consider what a funder or investor can do besides purely providing capital.
- Don’t go it alone: There are many partners in the Canadian cleantech ecosystem willing and able to help. In addition to the partners already mentioned, groups, like the Clean Growth Hub, can help you navigate government support options. Other partners, like MaRS, Foresight Canada and Cycle Momentum, can provide you with the tools and knowledge to scale. Leverage this network in your growth journey.
- It’s never too early to start building relationships: These teams don’t just bring money to the table; they bring expertise and networks.
Move toward net zero in 2025 with confidence
The October summit offered a conversation on the future of sustainable innovation and Canada’s growing role on the global stage. For cleantech companies looking to scale, the time to act is now—secure funding, aim globally, and lean on the incredible resources Canada’s ecosystem uniquely provides.
“The Cleantech Export Summit underscored the importance of collaboration and innovation in achieving a sustainable future," says Dumoulin. “The insights and connections gained from this event will be instrumental in supporting Canada's cleantech industry towards net zero emissions.”
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