Goal 9: Foster innovation and green infrastructure in Canada

This Goal's focus on fostering innovation and green infrastructure in Canada directly supports several SDG Global Indicator Framework targets:

• 9.1: Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all
• 9.2: Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry's share of employment and gross domestic product, in line with national circumstances, and double its share in least developed countries
• 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes

Canada's industrial sector is a major driver of economic activity, including income, jobs and exports. While industry is a significant source of greenhouse gas emissions in Canada, many sectors are taking action to green their industries. For example, between 2008 and 2019, Canada's aviation industry improved its fuel efficiency by 17.8% through actions such as fleet renewal and operational improvements. Canadian ports are also taking action to reduce emissions, including investing in green infrastructure and pursuing the creation of green shipping corridors.

Green infrastructure plays a key role in conserving natural resources and addressing climate change impacts by reducing greenhouse gas emissions and pollution. Upgrading infrastructure and retrofitting industries is part of a more sustainable approach, and investing in green infrastructure, such as low-carbon transportation, climate-resilient and energy efficient buildings and clean energy, helps build healthy and resilient communities, protects against a changing climate, promotes environmental sustainability, drives economic growth and supports a net-zero economy.

As climate change continues, green infrastructure will be increasingly important to sustain economic, environmental and social well-being. For instance, a growing network of zero-emission vehicle chargers will make low-carbon transportation options more accessible to Canadians. At the same time, natural infrastructure such as conserved and restored wetlands and marshes can help prevent climate change impacts such as flash floods and support the conservation and recovery of wild species, including species at risk.

Meanwhile, investing in innovation supports the transition to a net-zero economy while increasing Canada's competitiveness. Innovation can have benefits in areas such as water, air quality, plastic waste and biodiversity, including through increased adoption of clean energy technology, increased resource efficiency and increased demand for low-carbon materials. Research, development and demonstration continues to be needed to develop new technologies and integrate them into existing systems, and to lower capital costs of solutions nearing commercial scale. Sustained innovation over the next decade and beyond will be critical to reduce the costs of technologies and processes that could enable substantial emissions cuts beyond 2030 and support future economic competitiveness.

The Government of Canada recognizes the importance of green and resilient infrastructure to achieve a net zero-economy by 2050.

In the spring and summer of 2021, the government led an engagement process on Canada's first-ever national infrastructure assessment and is considering this advice in launching this initiative. The National Infrastructure Assessment will provide an evidence-based and expert-driven assessment of Canada's infrastructure needs over the coming decades to tackle climate change, support the quality of life for Canadians, and enable the country's economy to flourish.

The government has also launched the Green and Inclusive Community Buildings program, which aims to improve energy efficiency in existing buildings and support the construction of new net-zero carbon ones, particularly in areas with populations with higher needs. This 5-year program will support the construction and adaptation of community buildings across Canada to reduce carbon emissions, advance greenhouse gas (GHG) mitigation measures, and encourage best practices in building design for climate change resilience.

To lay the foundation for a net-zero buildings sector, the government committed to develop a national net zero by 2050 buildings strategy, the Canada Green Buildings Strategy. The strategy will build off existing initiatives and set out new policies, programs, incentives and standards needed to drive a massive retrofit of the existing building stock, and construction to the highest zero carbon standards, while strengthening the climate resilience of the sector. Actions related to the net-zero building sector can be found in Goal 7 under the energy efficiency theme.

The deployment of innovative and efficient technologies and processes remains critical to unlocking transformational change and achieving decarbonisation in Canada. Industrial emission reduction is essential for Canada to stay competitive and requires investment by and partnership with all levels of government.

To support innovation and clean technologies, the federal government is proposing to establish the Canada Growth Fund to attract private sector investments, reduce emissions, invest in low-carbon industries and support the restructuring of critical supply chains. Meanwhile, the Strategic Innovation Fund's Net Zero Accelerator is investing $8 billion in support of projects targeting technology adoption or development in 3 priority areas: decarbonization of large emitters, shifting Canada's industrial base in sectors such as automotive and aerospace towards a low-carbon model, and development of clean technologies, including a battery ecosystem. Further, at the COP26 climate summit in 2021, Canada joined 22 countries to commit to advance ambitious actions to reduce international aviation emissions and joined 19 countries committed to establish zero-emission green shipping corridors.

In addition, the government has committed to introduce a new Buy Clean Strategy to support and prioritize the use of made-in-Canada low-carbon products in Canadian infrastructure projects.

The government has put in place several tax measures to support the adoption of clean technologies. It has expanded Classes 43.1 and 43.2 to include more properties eligible for an accelerated capital cost allowance for investments in specified clean energy generation and energy conservation equipment. The government has also introduced a measure to reduce corporate income tax rates for qualifying zero-emission technology manufacturers. Finally, the government has proposed to establish an investment tax credit of up to 30%, focused on net-zero technologies, battery storage solutions, and clean hydrogen.

Sustainable Development Technology Canada helps Canadian companies develop and deploy clean technology innovations by delivering critical funding support and promoting the development of a robust Canadian market. Since its inception in 2001, Sustainable Development Technology Canada has committed approximately $1.38 billion to almost 540 projects. The Strengthened Climate Plan included continued support to Sustainable Development Technology Canada with an additional $750 million to support start-ups and to scale-up companies to enable pre-commercial clean technologies to successfully demonstrate feasibility as well as to support early commercialization efforts.

Finally, to advance a critical pathway in Canada's transition to a net-zero economy, Canada is supporting the development and deployment of Carbon capture, utilization and storage (CCUS) technologies, including through research, development, and deployment funding support and laboratory research as well as the development of a CCUS Strategy and a CCUS Investment Tax Credit.

Targets, indicators, milestones and contextual indicators

Theme:  Green infrastructure and innovation

Target: SD tech fund ⁽¹⁾

By 2023 and each year thereafter until 2026, 30% of Sustainable Development Technology Canada's portfolio of SD Tech Fund-supported technologies are commercialized annually (Minister of Innovation, Science and Industry)

Target: Electric vehicle chargers and hydrogen refueling stations ⁽¹⁾

By March 31, 2026, 34,500 new electric vehicle chargers and 25 hydrogen refueling stations are completed where Canadians, live, work and play, including in public places, on-street, at multi-unit residential buildings, rural and remote locations and the workplace (Minister of Natural Resources)

Target: New zero emission vehicle chargers and refueling stations ⁽¹⁾

By March 31, 2027, contribute to the deployment of 50,000 new zero-emission vehicle chargers and refueling stations (Minister of Natural Resources)

Target: Green infrastructure ⁽¹⁾

By fiscal year 2027 to 2028, the federal share of the value of green infrastructure projects approved under the Investing in Canada Plan will reach $27.6 billion (Minister of Intergovernmental Affairs, Infrastructure and Communities)

Short-term milestone: Demonstrate electric and hydrogen vehicle infrastructure ⁽¹⁾

By the end of 2024, complete 5 to 8 demonstration projects to address barriers and create innovative solutions related to the implementation of electric and hydrogen vehicle infrastructure.

Short-term milestone: Publish national model codes ⁽¹⁾

By the end of 2025, on behalf of the Canadian Commission on Building and Fire Codes, publish new versions of national model construction codes (National Building Code of Canada, National Fire Code of Canada, National Plumbing Code, and National Energy Code of Canada for Buildings). These new versions will continue to support adopting increasingly stringent model codes leading to adopting net-zero energy codes.

Short-term milestone: Deliver standardization strategies ⁽¹⁾

By the end of 2026, more than 30 standardization strategies will be delivered under the Standards Council of Canada's renewed Standards to Support Resilience in Infrastructure Program (2021 to 2026), to boost infrastructure resilience and create stronger communities for Canadians.

Short-term milestone: Enable new and revised codes, standards and guidelines and decision support tools for climate-resilient infrastructure ⁽¹⁾

By the end of 2026, enable additional climate change resiliency considerations to be incorporated into 3 Canadian Codes (National Building Code, Canadian Highway Bridge Design Code, and Canadian Electrical Code), and develop 4 new standards for resilient infrastructure, decision support tools for designing and manufacturing public infrastructure, and new guidance documents in flooding infrastructure and nature-based solutions.

Short-term milestone: Support research, development and demonstration of carbon capture, utilization and storage technologies ⁽¹⁾

By the end of 2026, support 65 to 100 research, development and demonstration projects related to CCUS technologies.

Contextual indicator: Average percentage growth in research and development expenditures over pre-project baseline for Strategic Innovation Fund (SIF) projects in their work phase ⁽ⁱ⁾

The indicator consists of a calculation of the growth rate of R&D expenditures, from a 3-year pre-project baseline, to a point in time during a project's work phase. This growth rate is then averaged across SIF projects. For the FSDS, this rate will be produced only for a subset of SIF projects (for example, the cleantech projects where it is applicable). The SIF Net-Zero Accelerator initiative was just recently launched and projects are in their early stages. Preliminary data are expected for FY2022-23.

Contextual indicator: Capital expenditures directly related to Strategic Innovation Fund (SIF)-funded clean technology adoption projects ⁽ⁱ⁾

On-project capital expenditures (CAPEX) will be measured for all SIF clients; this indicator will report specifically on on-project CAPEX for SIF projects that focus on cleantech adoption (for example, large emitter projects). The SIF Net-Zero Accelerator initiative was just recently launched and projects are in their early stages. Preliminary data are expected for FY2022-23.

Contextual indicator: Greenhouse gas emissions per dollar of value-added from the production of infrastructure assets ⁽ⁱ⁾

This indicator tracks the greenhouse gas emissions per value-added of infrastructure construction. In 2020, the greenhouse gas emissions per value added in Canada for all assets was 0.3862 tonnes per thousand dollars.

Contextual indicator: Percentage of SIF projects that result in intellectual property (IP) protection ⁽ⁱ⁾

SIF projects are on average around 3 to 5 years long (that is, the work phase is 3 to 5 years long). This indicator looks at the percentage of SIF-supported firms that, between 3 and 6 years following the beginning of their work phase, have filed for IP protection related to their project (that is, have sought IP protection for a project-related innovation). For the FSDS, the calculation of this indicator will be restricted to SIF-supported clean tech projects. The SIF Net-Zero Accelerator initiative was just recently launched and projects are in their early stages. Preliminary data are expected for FY2022-23.

Contextual indicator: Value of investments leveraged in clean technologies ⁽ⁱ⁾

This indicator tracks the value of additional investments (public and private) that clean technology innovation projects receive as a result of funding from Sustainable Development Technology Canada. As of March 31, 2021, Sustainable Development Technology Canada had achieved a co-investment ratio of $2.60 per $1.00 invested.

Implementation strategies and departmental actions

Theme: Green infrastructure and innovation 

Implementation strategy: Invest in the deployment of electric vehicle chargers and hydrogen refueling stations ⁽¹⁾

Support the deployment of zero-emission vehicle charging infrastructure in support of the commitment to add 34,500 new electric vehicle chargers and 25 hydrogen refueling stations along major highways, freight corridors, key metropolitan centres, and in public places, on-street, at apartment buildings, retail outlets, and the workplace.

Implementation strategy: Invest in the deployment of zero-emission vehicle and refueling infrastructure ⁽¹⁾

Support the deployment of large-scale zero-emission vehicle charging and refueling infrastructure in support of the commitment to add 50,000 new electric vehicle chargers and hydrogen stations to Canada's network.

Implementation strategy: Develop and implement climate-resilient codes and standards ⁽¹⁾

Develop, update and implement national model construction codes for energy-efficient buildings, and codes, standards, and guidance for improved climate resilience of new and existing core public infrastructure.

Implementation strategy: Invest in green infrastructure ⁽¹⁾

Support and adopt green infrastructure, natural infrastructure projects to mitigate and adapt to climate change, protect the natural environment and drive the economy.

Implementation strategy: Invest in deployment and adoption of clean technologies ⁽¹⁾

Support innovative clean technologies ready for deployment at commercial scale to strengthen Canadian innovation capacity, support small and medium sized clean technology companies to take Canadian ideas to market, and accelerate adoption of clean technologies across all sectors of the economy.

Implementation strategy: Invest in research, development and demonstration of clean technologies ⁽¹⁾

Support innovative projects and clean technologies across the economy, including in the heavy industry, life sciences, building materials, automotive, aerospace and agriculture sectors, to stimulate innovation and reduce domestic greenhouse gas emissions.

Implementation strategy: Attract and scale up sustainable finance in Canada ⁽¹⁾

Continue to take policy action to foster growth of a sustainable finance market in Canada.

Implementation strategy: Develop knowledge of clean technologies ⁽¹⁾

Develop understanding of the impact and benefits of clean technologies on the Canadian economy to ensure evidence-based policies and programs.

Implementation strategy: Implement the National Standards Strategy ⁽¹⁾

Engage stakeholders on key related standardization priority areas including climate change, mitigation, adaptation and resilience, as well as environmental, social and corporate governance. Engagements will occur through existing programs as well as the implementation of the newly approved National Standards Strategy.

Implementation strategy: Implement the National Standards Strategy ⁽¹⁾

Engage stakeholders on key related standardization priority areas including climate change, mitigation, adaptation and resilience, as well as environmental, social and corporate governance. Engagements will occur through existing programs as well as the implementation of the newly approved National Standards Strategy.

Responsibilities and contributions of federal organizations

Performance measurement

*Indicators that have also been included in the Canadian Indicator Framework.

For more detailed information see Strengthening transparency and accountability.