Atlantic Canada Opportunities Agency's 2024-25 Departmental Plan at a glance

Departmental results:

• Businesses are innovative and growing in Atlantic Canada.
• Businesses invest in the development and commercialization of innovative technologies in Atlantic Canada.
• Communities are economically diversified in Atlantic Canada.

Planned spending: $357,057,686

Planned human resources: 378

In 2024-25, ACOA will bolster the momentum of Atlantic Canada to promote long-term economic growth in the region. The Agency will provide regionally tailored, client-centric and place-based assistance to ecosystems, to small and medium-sized enterprises (SMEs), which accounted for 99.8% of all Atlantic businesses in June 2023,^{Footnote 1} and to communities in urban and rural areas, the latter of which accounted for approximately half of ACOA’s projects and expenditures in recent years.^{Footnote 2}

According to the 2023 Fall Economic Statement (FES), Canada’s recovery from the pandemic marked the fastest recovery of the past 4 recessions and more Canadians are employed today than when COVID-19 first hit. While strong economic headwinds are present, there continues to be economic momentum in Atlantic Canada and ACOA will work with other government departments to maintain and grow economic opportunities for the region. ACOA’s analysis has revealed that in the coming months and years, further economic growth in Atlantic Canada will continue to be sparked by a combination of factors such as:

• growth in established or emerging and value-added sectors, including oceans, food, mining, clean technology, tourism, and information and communication technologies;
• the ability of firms and communities to make the necessary investments and adjustments in support of a greener and more sustainable economy and to reduce greenhouse gas emissions
• the development of innovative products and services;
• global economic developments, including greater access to international markets.

These growth opportunities call for significant investments on the part of businesses and communities and are driving ACOA’s four key priorities.

Decarbonize Atlantic Canada’s grid and foster energy innovation and the greening of businesses: The Agency will focus on accelerating energy innovation and supporting clean energy through strategic energy projects; fostering energy innovation through work with key energy stakeholders; and helping SMEs and communities green their operations to remain competitive in domestic and international supply chains.

Support strategic economic infrastructure: ACOA will advocate and engage with partners to ensure that strategic economic infrastructure needs are addressed to enable economic development.

Develop and attract the workforce of the future: The Agency will focus on eliminating barriers to attract, develop and retain a workforce that supports SME growth. This will be done by developing innovative approaches related to workforce attraction and retention, fostering an inclusive and diversified workforce, and working with SMEs and partners to improve human resources capacity and develop a skilled workforce that meets industry needs.

Increase productivity and digitization: ACOA will continue to deploy efforts aimed at closing the productivity gap of the region. This will be done by building awareness on the benefits of automation, increasing uptake of digitalization programs including cybersecurity measures, and increasing the understanding and utilisation of artificial intelligence as a lever for productivity and economic growth.

These priorities will directly contribute to the Government of Canada’s plan of building an economy that works for all Canadians with affordable energy, good jobs, a growing clean economy, and stronger and more inclusive communities as outlined in Budget 2023, the 2023 Fall Economic Statement, and the 2021 Speech from the Throne.  Activities will complement and bolster federal initiatives such as the 2022 – 2026 Federal Sustainable Development Strategy, the 2030 Emissions Reduction Plan, the Innovation and Skills Plan, and the interim Sustainable Jobs Plan to guide the region’s path to a net-zero economy.

These priorities will also advance ministerial mandate letter commitments, notably:

Continue to promote short- and long-term job creation and economic development in Atlantic Canada in a way that supports the whole-of-government effort to reduce emissions, create clean jobs and address communities’ climate-related challenges

The Agency will support long-term, sustainable growth with economic development initiatives in communities of every size, helping SMEs access financing, and investing in the local infrastructure that helps Indigenous, rural and urban communities to grow. Building on the region’s competitive strengths, ACOA will contribute to economic prosperity, inclusion and clean growth while advancing its three departmental results for Atlantic Canada: businesses that are innovative and growing; businesses that invest in developing and commercializing innovative technologies; and communities that are economically diversified.

Emphasis will be placed on priority areas with a high potential for growth, including clean technology, ocean economy, life sciences and biosciences, tourism, and information and communication technology, and mining sectors. Businesses will be supported to invest in new technologies to improve their efficiency, productivity, competitiveness and growth. The Agency will also remain resolute in its promotion of the Atlantic region across the Government of Canada’s activities, including efforts to competitively position Atlantic Canadian firms for defence and Canadian Coast Guard procurement through Canada’s Industrial and Technological Benefits Policy.

Assistance will continue to respond to regional needs and be delivered through flexible core programs such as the Regional Economic Growth through Innovation Program.

Support local and regional economic diversification and transform how we power our economy and communities

The Government of Canada is committed to promoting a greener, more sustainable economy and ACOA will support this goal. Sustainability will continue to be an important guiding principle for the Agency as it explores new growth opportunities and positions industries for success as they transition to a cleaner economy. In 2023-24, the Agency tabled its 2023 – 2027 Departmental Sustainable Development Strategy, which outlines its expected contributions to Canada’s sustainable development goals, notably on meaningful work and economic growth. The Agency’s activities will help Atlantic Canada’s economy to diversify, become more inclusive (including for Indigenous, rural, and francophone communities) and transition to a low-carbon future in a way that is consistent with the Government of Canada’s plan for a just transition to sustainable jobs. This includes accelerating the greening of firms and supply chains, advancing the development of clean technologies for domestic and international markets, and support for green initiatives in areas such as critical mineral development, enabling technologies such as information and communication technologies, and in sectors such as the blue economy and sustainable tourism.

Support initiatives that advance the goals of the Atlantic Growth Strategy

In 2024-25, the Agency will actively support the Minister responsible for ACOA, who will play a more active role for the Atlantic Growth Strategy in her work with the Leadership Committee to strengthen Atlantic Canada through the renewed strategy. The Agency, in steadfast collaboration with the four Atlantic provinces and other federal departments, will support region-wide efforts to leverage population growth and to attract and retain a strong workforce; spur increased productivity and competitiveness; enable innovative and resilient infrastructure and housing; and, advance the transition to a net-zero, green economy. Notable examples include:

• working in partnership to develop a strategy to help SMEs in sectors of shared federal and provincial priority adopt clean technology, reduce carbon-based fuel consumption, decarbonize operations, and electrify processes. This includes promoting the region’s clean energy potential on the world stage;
• implementing the Tourism Growth Program and the renewed Atlantic Canada Agreement on Tourism (ACAT), which align and support Canada’s new Federal Tourism Growth Strategy;
• leveraging the Atlantic Trade and Investment Growth Strategy and its agreement to help SMEs become successful through market diversification and expansion;
• addressing the region’s air access challenges with a focus on increasing connections and capacity in Atlantic Canada;
• building on the success of the Atlantic Immigration Program and the Foreign Credential Recognition Program, partners will  address barriers to worker and immigrant mobility, such as labour integration of internationally trained professionals within Canada and the Atlantic region;
• exploring potential housing solutions specific to the Atlantic Canada region and context, with emphasis on solutions that accelerate housing supply, respond to workforce housing needs, look at green building, support innovation in the housing construction sector, and leverage a collaborative approach to solutions.

These efforts, along with ACOA’s regular programming, will support the Minister’s Rural Economic Development Strategy, which aims to build strong and resilient rural communities as an integral part of the Canadian economy. Each of these efforts will also be informed by collaboration with the network of regional development agencies across Canada, other federal agencies and departments, the four provincial governments in Atlantic Canada, municipalities, Indigenous partners, not-for-profits, and other stakeholders such as the Community Business Development Corporations.

More information about Economic Development in Atlantic Canada can be found in the full departmental plan.