Budget 2017 Measures to Support Clean Technology
To support building early-stage innovation, Budget 2017 proposes to provide:
- $400 million over five years, starting in 2017–18, to recapitalize Sustainable Development Technology Canada’s SD Tech Fund to support projects across Canada to develop and demonstrate new clean technologies that promote sustainable development, including those that address environmental issues such as climate change, air quality, clean water and clean soil.
- $200 million over four years, starting in 2017–18, to Natural Resources Canada, Agriculture and Agri-Food Canada and Fisheries and Oceans Canada to support clean technology research, development and demonstration and the adoption of clean technology in Canada’s natural resources sectors.
- up to $950 million over five years, starting in 2017–18, focused on supporting highly innovative sectors such as clean technology and natural resources, including a small number of business-led innovation superclusters that have the greatest potential to accelerate economic growth.
- $75 million over 2 years, starting in 2017–18, to address challenges such as helping Canada’s rural and remote communities reduce their reliance on diesel as a power source.
- $229 million over four years, starting in 2018–19, to Natural Resources Canada and Transport Canada to continue research and development activities through their core clean energy and clean transportation innovation programming.
To accelerate commercialization and growth, Budget 2017 proposes to provide:
- nearly $1.4 billion in new financing, starting in 2017–18, through the Business Development Bank of Canada and Export Development Canada:
- $380 million in equity financing to support clean technology firms;
- $570 million in working capital to support clean technology firms; and
- approximately $450 million in additional project financing for capital-intensive clean technology firms.
- up to $400 million over three years through the Business Development Bank of Canada, beginning in 2017–18, for a new Venture Capital Catalyst Initiative to increase late-stage venture capital available to Canadian entrepreneurs.
- $15 million over four years, starting in 2017–18, to Global Affairs Canada to implement an international business development strategy to help Canadian clean technology firms become world leaders and capitalize on growing global market opportunities.
- $1.26 billion to create the five-year Strategic Innovation Fund, including $100 million for clean technologies, to attract and support new high-quality business investments in the aerospace and automotive sectors and in dynamic and emerging sectors such as clean technology.
To foster greater adoption, Budget 2017 proposes:
- to provide up to $50 million, starting in 2017–18, to launch Innovative Solutions Canada, a new procurement program modelled on the U.S. Small Business Innovation Research program, to support early-stage research and development, late-stage prototypes, and other goods and services for Canadian innovators and entrepreneurs.
- to invest in green infrastructure:
- $100 million to support next-generation smart grid, storage and clean electricity technology demonstration projects;
- $200 million to support the deployment of emerging renewable energy technologies nearing commercialization;
- $220 million to reduce the reliance of rural and remote communities south of the 60th parallel on diesel fuel and to support the use of more sustainable, renewable power solutions;
- $120 million to deploy infrastructure for electric vehicle charging and natural gas and hydrogen refuelling stations, as well as to support technology demonstration projects; and
- $182 million to develop and implement new building codes to retrofit existing buildings and build new net-zero energy consumption buildings across Canada.
- to expand eligibility for accelerated capital cost allowance to a broader range of geothermal projects and expenses, as well as to encourage greater use of geothermal energy to meet Canada’s heating and electricity generation needs.
To strengthen collaboration and metrics for success, Budget 2017 proposes:
- $12 million over four years, starting in 2017–18, for Innovation, Science and Economic Development Canada and Natural Resources Canada to establish a Clean Growth Hub within the newly announced Innovation Canada single-window service to streamline client services, improve federal program coordination, enable tracking and reporting on clean technology results across government, and connect stakeholders to international markets.
- $14.5 million over four years, starting in 2017–18, for Natural Resources Canada and Innovation, Science and Economic Development Canada to develop a clean technology data strategy to foster innovation, improve knowledge in the private sector and stakeholder communities, and help inform future government decision making.
- that the Government will work with stakeholders and partners to develop a comprehensive clean technology strategy to identify innovation opportunities, set ambitious growth targets, pinpoint sector-specific challenges and bottlenecks to innovation, and help innovators achieve their targets.
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