This publication is subject to further updates.
Entrepreneurs throughout Canada are working hard to develop, commercialize and implement technologies that reduce greenhouse gas emissions, enhance environmental sustainability, offer solutions to combat climate change, and facilitate our energy transition. Government initiatives across Canada play an important role in the growth of the clean technology sector.
This bulletin provides an overview of various government funding opportunities currently available to businesses in the Canadian clean technology sector. The bulletin highlights both federal programs as well as provincial programs in Alberta, British Columbia, Ontario, and Québec. We provide a high-level overview of some of the key features of these programs, select criteria for eligibility, and some information about the types of support available.
To learn more about how Fasken contributes to the Climate Tech space, please click here. For detailed information on the Canadian government's four new refundable investment tax credits for clean technology, as of October 2024, please click here.
Federal Initiatives
- Export Development Canada
Export Development Canada (“EDC”) supports Canadian businesses in succeeding internationally by offering essential financial products, services, and expertise that enable their expansion from domestic to worldwide markets. As a principal financier of clean tech in Canada, EDC offers assistance to businesses in various subsectors such as renewable energy production, biofuels, energy-saving solutions, and eco-friendly construction.
In 2022, EDC established an objective to deliver $10 billion in backing to clean tech companies by 2025. By December 31, 2023, EDC had surpassed this goal, contributing over $12 billion through financing and insurance solutions to upwards of 440 clean tech businesses—an increase from the $8.8 billion and 392 companies in 2022. EDC has been a major supporter of the Canadian clean tech sector since 2012, facilitating almost $41 billion in clean tech exports.
More information on EDC’s support of clean technology can be found here.
- Clean Growth Hub
The Clean Growth Hub is a free service offered by the federal government designed to help clean technology developers identify funding for their initiatives. It helps equip companies with various resources, such as a Technology Readiness Level evaluation and data collection services that inform policy and program enhancements for clean tech innovators. Additionally, it maintains a regularly updated directory of active programs that provide funding, making it an efficient, user-friendly resource.
More information on the Clean Growth Hub can be found here.
- Canada Infrastructure Bank
The Canada Infrastructure Bank (“CIB”) is a federal Crown corporation tasked to provide financial backing of infrastructure projects capable of generating revenue which serve "the public interest". It aims to stimulate private sector investment by employing strategies such as direct contributions and partnerships between the public and private sectors. CIB considers itself an impact investor and accordingly prioritizes investing in areas such as green infrastructure and clean power.
More information on CIB’s investment process can be found here.
- Industrial Research Assistance Program
The Industrial Research Assistance Program (“IRAP”) helps small and medium-sized businesses develop technology by providing funding and advisory services.
Eligible applicants must meet the following criteria: (i) be an incorporated, profit-oriented small or medium-sized business in Canada; (ii) have 500 or fewer full-time equivalent employees; and (iii) plan to pursue growth and profit by developing and commercializing innovative, technology-driven new or improved products, services or processes in Canada.
More information on IRAP can be found here.
- Net Zero Accelerator Fund
The Net Zero Accelerator Fund (“NZA”) focuses on reducing emissions by incentivizing Canadian companies to decarbonize their operations. The NZA invites Canadian companies to contribute to Canada’s global leadership efforts by meeting its target of reducing greenhouse gas emissions by 40% to 45% by 2030, and achieve net zero by 2050. Projects that can deliver near-term emissions reductions to help meet the 2030 target are prioritized.
More information on NZA can be found here.
- Business Development Bank of Canada
Business Development Bank of Canada (“BDC”) is a Crown corporation wholly owned by the Government of Canada. BDC supports start-ups, small businesses, and entrepreneurs by providing financing, advisory services, and capital.
BDC currently offers a Sustainability Venture Fund to early-stage businesses developing technologies that contribute to a net-zero economy. BDC is looking for companies that are aligned with four United Nations Sustainable Development Goals. More information on BDC’s Sustainability Venture Fund can be found here.
BDC is also offering a Climate Tech Fund to invest in Canadian climate technology businesses that have high potential to grow into international competitors and provide significant local and global greenhouse gas reductions. This particular fund is looking for firms that are developing technology that materially mitigates greenhouse gas emissions. More information on BDC’s Climate Tech Fund can be found here.
More general information on BDC can be found here.
- Natural Resources Canada – Zero Emission Vehicle Infrastructure Program
Natural Resources Canada, a federal initiative, administers a variety of funding and grant programs to encourage the development of clean technology. The Zero Emission Vehicle Infrastructure Program currently has a funding opportunity for owners/operators of zero-emission vehicle infrastructure. The projects should focus on deploying electric vehicle chargers in public places such as on-street locations, in multi-unit residential buildings, workplaces, and vehicle fleets. The program’s contribution will be limited to 50% of total project costs up to a maximum of $5 million per project.
Details on eligibility requirements can be found here.
- Canada Growth Fund
Canada Growth Fund (“CGF”) is a $15 billion arm’s length public fund supporting the development of technologies targeted at reducing emissions. CGF was established with the goal of making investments that spur significant private sector funding into Canadian businesses and initiatives, with the aim of transitioning Canada’s economy toward net zero. Its function is to draw in private funds to develop Canada’s clean economy. This is achieved by utilizing financial instruments that mitigate specific risks, thereby incentivizing private contributions to low carbon projects, technologies, businesses, and supply chains.
CGF is offering contracts for difference as one of its financial tools to support clean growth initiatives. These contracts underpin the future price of carbon, offering predictability to businesses and mitigating risk for projects that aim to cut emissions. As the main federal body responsible for issuing carbon contracts for difference, CGF has earmarked as much as $7 billion from its present $15 billion capital pool for the issuance of all forms of contracts for difference and offtake agreements. The capital is largely focused on infrastructure-like investment opportunities which are otherwise difficult to finance.
In August 2024, CGF announced an investment of up to $137 million in Svante, a leading Canadian clean tech company headquartered in Burnaby, British Columbia.
More information on CGF can be found here.
- Innovative Solutions Canada
Innovative Solutions Canada is a federal initiative designed to encourage technology research and commercialize Canadian innovations. The program focuses on startups and small/medium-sized businesses with some funding opportunities for clean technology development. The program currently has a funding opportunity for those designing an efficient class 8 heavy-duty truck dry-box van trailer for highway use in Canada and the US.
More information and details on eligibility requirements can be found here.
- Low-Carbon Fuel Procurement Program
In October 2024 the federal government announced their commitment to purchase carbon dioxide removal services through its Low-Carbon Fuel Procurement Program (which is an 8-year, nearly $135 million initiative to reduce emissions from federal air and marine operations).
Carbon dioxide removal refers to human-initiated actions that extract carbon dioxide from the atmosphere, such as direct air capture and improved carbon mineralization, and securely deposit it in natural storage sites or within products.
More information on the Government of Canada’s announcement to purchase carbon dioxide removal services can be found here. More information on the Low-Carbon Fuel Procurement Program can be found here.
- Sustainable Development Technology Canada Fund
Historically, the Sustainable Development Technology Canada Fund (the “SDTC”) has been an important source of federal government funding for clean tech and other sustainable development projects. The SDTC offered non-repayable funding to projects that have not yet reached the commercial stage but show potential for substantial and quantifiable benefits in climate change, air quality, water quality, or soil cleanliness.
In June 2024, the federal government announced that management of the SDTC will transition to the National Research Council of Canada. New applications for funding are not being accepted at present.
Updates and further information regarding when new applications will be accepted can be found here.
Provincial Initiatives
Alberta
- Carbon Capture, Utilization and Storage and Hydrogen Program
This program supports Albertan enterprises with technologies that convert carbon dioxide into useful products with significant commercial value. It aims to reduce environmental impacts, support Alberta’s energy transition, create jobs in the clean tech sector, and engage industry, researchers, and communities in future energy systems.
Funding can be up to $2 million per project, typically covering 25-50% of total costs. Co-funding from other sources is encouraged, and applicants must provide additional funding through cash or in-kind contributions. Although applicants are not required to be Alberta-based, they must demonstrate a clear value proposition for the Province.
More information and details on eligibility requirements can be found here.
- Emissions Reduction Alberta
Emissions Reduction Alberta (“ERA”) provides funding for innovative and sustainable technology projects that reduce greenhouse gas emissions. ERA is primarily focused on technology in carbon sequestration, future fuels, energy efficiency, industrial transformation, and circular economy. There are two funding streams under ERA: (i) technology funding, and (ii) energy savings for business.
The process for assessing funds is divided into two stages, the Expression of Interest and the Full Project Proposal.
More information and details on assessing funds can be found here.
- Alberta Carbon Capture Incentive Program
Alberta Carbon Capture Incentive Program (“ACCIP”) supports and accelerates the development of new carbon capture, utilization, and storage (“CCUS”) infrastructure by providing incentives for facilities to incorporate this technology into their operations.
The ACCIP will offer a 12% grant for eligible CCUS capital costs, with funding available after the federal government finalizes its investment tax credit and support programs. Industry and carbon sequestration hub operators can now apply for ACCIP pre-approval. The project must capture, prepare, compress, transport, store, or utilize carbon dioxide. Grants will be paid to operators in 3 installments over 3 years starting after one year of operations.
More information and details on eligibility requirements can be found here.
- Hydrogen Centre of Excellence – Advancing Hydrogen
The program is directed towards developing projects that support the goals of Alberta’s Hydrogen Roadmap. Funding aims to achieve the integration of clean hydrogen into Alberta’s domestic energy system for use in mobility, heat, power generation, renewable energy storage, and industrial applications; in addition to establishing the province as a major global supplier in clean energy exports.
Eligible projects must have key milestones, be completed within 24 months, and meet any additional criteria from Alberta Innovates.
More information and details on eligibility requirements can be found here.
British Columbia
- Innovate Clean Energy Fund
Innovate Clean Energy Fund (“ICE Fund”) supports British Columbia’s priorities in energy, economy, environment, and greenhouse gas reduction, while also promoting the advancement of BC's clean energy sector. Since 2008, the ICE Fund has committed over $114 million in funding to support pre-commercial clean energy technology projects and energy efficiency programs. The next intake for funding is expected to open in the Spring of 2025.
More information and details on eligibility requirements can be found here.
- Innovate BC’s Ignite Program
Innovate BC oversees their Ignite Program which provides funding to research and commercialization activities in the sectors of natural resources, applied science, and engineering. The maximum amount an eligible company can request is $300,000, paid in annual instalments of approximately equal amounts. Projects must secure matching funds from other sources at a ratio of 2:1 ($1 Ignite funds matched by $2 project funds from other sources).
Eligibility requirements include having a project that addresses a significant industry problem and being a BC-based organization.
More information and details on eligibility requirements can be found here.
- Advanced Research and Commercialization Program
Advanced Research and Commercialization Program (“ARC”) is aimed at overcoming barriers to growth in the zero-emission vehicle (“ZEV”) sector. ARC provides support to BC companies by investing in product development and commercialization activities through to long-term demonstration projects.
Eligible applicants for ARC include Canadian private entities or organizations validly incorporated and operating in the ZEV sector.
Currently, Expressions of Interest for ARC are closed.
More information and details on eligibility requirements can be found here.
- InBC Strategic Investment Fund
In BC Investment Corp (“InBC”) is a Crown corporation that manages and invests a $500 million strategic investment fund of the Government of British Columbia. InBC invests in high-growth potential businesses in B.C. to leverage investment from the private and public sectors to help businesses grow.
Companies or ventures looking for investment can find more information here.
- B.C. Centre for Innovation and Clean Energy
The B.C. Centre for Innovation and Clean Energy (“CICE”) is an independent, not-for-profit corporation that helps fund the commercial development and scaling of made-in-B.C. clean energy solutions.
Periodically, the CICE will open applications for projects with a particular goal. For example, CICE’s most recent call for innovation focused on wildfire technology. Currently, no calls for innovation are open right now.
More information on CICE can be found here.
Ontario
- Ontario Centre of Innovation’s Collaborate 2 Commercialize Program
The Collaborate to Commercialize (“C2C”) Program offers up to $150,000 and supports the collaboration between Academia and Industry to solve an industry-based problem and drive the commercialization of Intellectual Property. The program supports efforts that are intended to commercialize research results within 3 years post-project.
There are two ways to be eligible for the C2C Program – either as a Research Partner or as an SME (small and medium size enterprise) Project Contributor.
More information and details on eligibility requirements can be found here.
- Invest Ontario Fund
Invest Ontario is a provincial agency dedicated to securing private sector strategic business and capital investments, that support economic development, resiliency, and job creation with a focus on manufacturing, life sciences, and technology sectors within the province. In the 2021 Ontario Budget, the Government of Ontario committed $400 million to create the Invest Ontario Fund over four years. Funding from the Invest Ontario Fund will be offered in the form of a loan or conditional grant combination and there is no max funding ask. Details on eligibility requirements can be found here.
More information on the Invest Ontario Fund can be found here.
- Ontario Emissions Performance Standards Program
The Ontario Emissions Performance Standards came into effect on January 1, 2022 and is intended to encourage the industrial sector to reduce greenhouse gas emissions and minimize competitive impacts – the risk of production leaving the province for other jurisdictions with less stringent climate policies. Emissions performance standards (“EPS”) are used to determine an emissions limit that industrial facilities must meet each year. The standards become stricter each year, requiring emitters to either reduce their emissions or pay for exceeding the limits.
You are required by law to register your EPS facility in the Emissions Performance Standards program if it meets the definition of “EPS Facility” and the following criteria under section 2 of O. Reg. 241/10:
- the owner or operator of the EPS facility was required to report the facility’s greenhouse gas emissions for 2014 or for any subsequent year;
- the facility reported emissions of at least 50,000 tonnes or more of CO2 equivalent in one or more reporting year from 2014 onward; and
- the primary activity at the facility is an industrial activity listed in paragraphs 1 to 38 of Schedule 2 of O. Reg. 241/19.
If you meet this criteria, you are required to register in the year that you meet the requirements.
More information and details on eligibility requirements can be found here.
- Southern Ontario Fund for Investment in Innovation
The Southern Ontario Fund for Investment in Innovation (“SOFII”) loan program supports high-growth, innovative small and medium-sized Enterprises in rural and urban communities by offering loans of $150,000 to $500,000 to support all aspects of growth challenges facing them. Funded in part by FedDev Ontario, SOFII empowers innovation in southern Ontario. Financing can be provided for late stage commercialization, new product or service development, new applications or markets, and development or implementation of new processes or technologies. The loans may range from $150,000 to $500,000 and be interest bearing term loans with no application fees, and repayable anytime without penalty.
Ideal candidates are in digital industries, clean technology, agri-food industries, health and biosciences, and advanced manufacturing. Applications can be made through the website.
More information and details on eligibility requirements can be found here.
- Building Ontario Fund
The Building Ontario Fund will invest and seek to attract investment from public sector pension plans, other trusted institutional investors, and Indigenous communities in Ontario infrastructure projects that will generate revenue and be in the public interest. An arms-length, board-governed Crown agency enabled by the Building Ontario Fund Act, 2024, the Building Ontario Fund will help build a stronger province for Ontario’s quickly growing population and lay a strong foundation for future generations. Proposals for infrastructure projects that come from qualified institutional investors, public sector entities, governments, or Indigenous communities, are welcome and will be assessed for suitability within the Building Ontario Fund mandate.
To address the province’s most immediate needs, the Building Ontario Fund will focus on projects within five priority areas: affordable housing, long-term care, energy, transportation, and municipal and community infrastructure.
More information and details on eligibility requirements can be found here.
Québec
- Québec Clean Tech Investment Challenge
The Québec Clean Tech Investment Challenge is aiming to provide mentorship and training to prepare for investor pitches. Up to 15 Ventures are selected to join the program, where they end up pitching their solutions to a panel of judges. The top startup wins $100,000.
Eligibility includes being an early-stage Québec-based clean tech startup and having a solution with significant and measurable positive impact on the environment.
More information and details on eligibility requirements can be found here.
- Québec Technoclimat Program
The Québec Technoclimat Program offers financial support for technological demonstration projects in energy and greenhouse gas (“GHG”) reduction. It aims to support the development of pre-commercial innovations and the testing of technologies not yet available in the Québec market.
Regarding eligibility, a company’s project must involve innovative technologies with potential market impact and GHG reduction. The technology must be capable of being deployed in Québec.
More information and details on eligibility requirements can be found here.
- Compétivert
Compétivert was an initiative by Investissement Québec aimed at enhancing the competitiveness of Québec businesses through different financing solutions, including term loans. The loan could cover up to 100% of the project with a term of up to 25 years.
All companies operating in Québec that develop or adopt clean technologies and eco responsible practices were able to apply, except those operating in particular sectors such as farming, finance and insurance, real estate, and others.
The program has now concluded, and is expected to be replaced by Québec’s Grand V initiative, noted at item 31 below.
- INNOV-R Académique
INNOV-R is a funding program aimed at supporting collaborative R&D projects that contribute to greenhouse gas reduction in Québec. It has a maximum duration of 3 years with a maximal financial assistance of $1.5 million over 3 years.
Among other requirements, projects must involve at least one Québec-based business and one academic or research institution.
More information and details on eligibility requirements can be found here.
- Fonds Climat du Grand Montréal
This fund supports projects aimed at reducing greenhouse gas emissions (“GHG”) in the Greater Montréal area. The Climate Fund has allocated a total grant envelope of $250,000, with submitted proposals not exceeding $50,000. The grant can cover up to 80% of the total project costs, with at least 20% covered by matching funds or in-kind contributions, excluding federal funding sources.
Organizations and companies with projects focused on GHG reduction are eligible. Projects must be implemented within the Greater Montréal area.
More information and details on eligibility requirements can be found here.
- Grand V
The Grand V initiative, overseen by the Ministry of Economy, Innovation and Energy, is a new funding opportunity aimed at providing financing and technological resources to businesses throughout Québec. By 2027, Grand V is projected to allocate approximately $4.5 billion to companies in Québec that are enhancing innovation and promoting environmental sustainability. Its goal is to support businesses of all sizes in their efforts to reduce their ecological footprint.
Businesses can seek term loans starting at $250,0000. These loans feature repayment periods of up to four years, during which the interest rates will remain unaffected. Additionally, options for equity financing are on offer, although eligibility requirements were not defined at the time this bulletin was released.
More information and details on eligibility requirements can be found here.
