Cleantech in Canada: Understanding a Growing Industry Transforming Canada's Economy

Though Canada accounts for only 0.48 percent of the global population, its impact on the world stage, particularly in the cleantech sector, is disproportionately significant. This is evidenced not only by Canadian companies representing a remarkable 12% of the top 100 cleantech companies in 2023, but also by Canada's impressive ranking as second on the Cleantech Global Innovation Index. 

Let's embark on a journey through Canada's cleantech evolution, uncovering how this nation, modest in size but ambitious in vision, has risen to become a beacon of sustainable technological innovation. From its deep historical roots in indigenous sustainable practices to its current status as a frontrunner in the global cleantech revolution, we invite you to join us in understanding the factors and forces that have propelled Canada to this pivotal role in shaping a more sustainable future!

Understanding Cleantech: Evolution, Definition, and Scope

To fully appreciate Canada's role, we first need to grasp what cleantech entails. This exploration begins with its roots and spans its evolution, unveiling the foundational principles that define its scope and impact.

While cleantech's modern prominence is undeniable, its roots stretch far back, anchored in a timeless ethos of balancing human innovation with the wisdom of nature. For centuries, indigenous communities across the globe have exemplified sustainable practices, seamlessly integrating environmental stewardship into their way of life. This age-old philosophy laid the groundwork for what we now recognize as cleantech.

It was in the late 1990s and early 2000s that this concept gained significant traction in the technological realm, capturing the attention of the wider global community. During this period, the term ‘Cleantech’ was popularized, marking a pivotal shift in the modern industrial and technological landscape.

Evolving from these historical underpinnings, today's cleantech has been concisely defined by the Government of Canada, encompassing:

• "Any good or service designed with the primary purpose of contributing to remediating or preventing any type of environmental damage."

• "Any good or service that is less polluting or more resource efficient than equivalent normal products that furnish a similar utility."

This definition encapsulates the dual focus of modern cleantech: remediation and prevention of environmental harm, and the development of solutions that are less polluting and more efficient than traditional options.

Cleantech's evolution from a niche sector to a key component of sustainable progress reflects a broader shift. It's no longer just about individual technologies or processes; it's a holistic industry-wide commitment to integrating environmental consciousness into every facet of innovation and development. Today's cleantech is a testament to how traditional wisdom and technology can converge to build a sustainable and resilient future for our planet.

Cleantech in Canada: A Diverse and Dynamic Sector

With a clearer understanding of what cleantech encompasses, we now turn our lens to its diverse and dynamic application within Canada's thriving sector.

In Canada, the cleantech sector is a diverse group of companies and innovators. These entities span a range of industries, each contributing uniquely to the country's environmental sustainability goals. Here's a closer look at the types of companies that fall under the cleantech umbrella and how they are making a difference:

1. Air, Environment, and Remediation: 

Companies in this space are dedicated to improving air quality and restoring environmental health. They develop technologies for air purification, pollution monitoring, and remediation of contaminated sites, playing a critical role in urban and industrial areas.

2. Water and Wastewater Management: 

This category includes firms specializing in water treatment, conservation, and recycling. They innovate in areas like water purification, desalination, and wastewater treatment, essential for maintaining our water resources.

3. Waste and Recycling: 

These companies focus on efficient waste management and recycling processes. Their solutions range from advanced waste sorting technologies to innovative recycling methods, reducing landfill waste and promoting circular economy principles.

4. Biofuels, Bioenergy, and Bioproducts: 

Here, the focus is on renewable energy sources and biologically derived products. Companies develop sustainable alternatives to fossil fuels, such as biofuels, and create bioproducts from agricultural or industrial waste.

5. Renewable and Non-Emitting Energy Supply: 

Firms in this sector provide technologies for energy generation without harmful emissions. This includes solar, wind, hydro, and geothermal energy solutions, contributing to Canada's renewable energy capacity.

6. Smart Grid and Energy Storage: 

These companies are at the forefront of modernizing energy distribution and storage systems. They develop smart grid technologies that enhance the efficiency and reliability of energy networks and innovate in energy storage solutions.

7. Energy Efficiency: 

Companies dedicated to energy efficiency provide solutions that optimize energy use in buildings, industrial processes, and consumer products, helping reduce overall energy consumption and carbon footprint.

8. Precision Agriculture, Forestry, and Biodiversity: 

This sector includes technologies that enhance agricultural and forestry practices while preserving biodiversity. Innovations here include precision farming tools, sustainable forestry management techniques, and biodiversity conservation strategies.

9. Mining, Processing, Materials, Manufacturing, and Industry: 

Companies in this category focus on making industrial processes more environmentally friendly. They innovate in areas like sustainable mining practices, eco-friendly materials, and green manufacturing processes.

10. Transportation: 

This encompasses firms developing cleaner, more efficient transportation solutions. They work on electric vehicles, sustainable public transit systems, and alternative fuels, aiming to reduce the environmental impact of transportation.

Each of these sectors represents a unique facet of Canada's cleantech landscape, showcasing the country's commitment to leveraging innovation in addressing environmental challenges. From startups pioneering new technologies to established companies adapting their operations for sustainability, the Canadian cleantech sector is dynamic and continuously evolving, positioning Canada as a leader in the global quest for a more sustainable future.

The Evolution and Impact of Cleantech in Canada

Beyond the specific innovations within its industries, the cleantech sector in Canada narrates a tale of remarkable growth and unwavering commitment to sustainable development. This journey, marked by robust innovation and ambitious goals, reflects not just a sector's evolution but also its significant role in shaping the nation's economy and its approach to environmental sustainability.

From Past to Present: A Rising Global Contender

Canada's ascent in the global cleantech landscape is a story of strategic growth and increasing influence. In 2014, the nation ranked 7th on the Cleantech Global Innovation Index, a respectable position that hinted at its potential. Through focused investment and policy support, this trajectory shifted dramatically. By 2017, Canada had climbed to the 4th position, a testament to its growing prominence. The real leap, however, came in 2023, when Canada surged to the 2nd spot, signaling its arrival as a global cleantech leader.

Governmental Support Fueling Aspirations

Key to this ascent has been the Canadian government's unwavering support for cleantech. Initiatives like the Clean Growth Hub, established in 2018, reflect a cohesive effort across 17 federal departments and agencies to foster cleantech innovation. The ambition was further crystallized by the Clean Technology Table in 2019, which set a bold target: to position Canada among the top five exporting industries in cleantech by 2025, aiming for $20 billion in annual exports.

A Dynamic and Expanding Workforce

The backbone of Canada's cleantech sector is its dynamic workforce. As of April 2022, the sector boasted 2,427 firms, a number that not only underscores the sector's size but also its diversity across various provinces. While the sector's employment rates are still rebounding from the pandemic, the growth is evident - a 7.2% increase in jobs in 2021, reaching 188,794, despite a broader 8.5% job increase across all sectors. The majority of these cleantech roles, about 88%, are concentrated in Ontario, Quebec, British Columbia, and Alberta, mirroring the general employment distribution in Canada.

Economic Impact and Growth

Economically, cleantech has been a significant contributor to Canada's GDP, with a consistent input of approximately 3% since 2012. This was particularly notable in the growth from $67.8 billion in 2020 to $73.1 billion in 2021, equating to about 2.9% of the national GDP. Such figures don't just speak to the sector's size; they highlight its expanding influence in the Canadian economy and its role as a major employment driver.

Innovation as a Growth Driver

The forward momentum of Canada's cleantech sector is closely tied to innovation. Statistics Canada has revealed a telling insight: cleantech SMEs with formal intellectual property are 60% more likely to be high-growth companies. This correlation underscores a crucial narrative - innovation is not just an abstract concept but a tangible driver of sector growth.

As clean technology continues to emerge at an explosive rate, driven by unprecedented global demand and technological advancements, a pivotal question looms: How does Canada continue to position itself as a global leader amidst these evolving geo-political landscapes?

The Future Of Canadian Cleantech

Our exploration of Canada's cleantech sector unveils an industry at a crossroads, marked by rapid innovation and growth. As we confront the realities of global environmental change, a paramount challenge emerges: aligning the sector's workforce growth with the accelerated pace of its technological advancements. 

This journey isn't solely about the groundbreaking technologies we've discussed; crucially, it hinges on the skilled individuals who drive these innovations, positioning Canada at the vanguard of the global cleantech movement.

In our upcoming webinar, 'Green Horizons: How to Scale Canada's Cleantech Workforce,' we look deeper into these vital challenges. Together, we'll explore strategies for scaling operations within Canadian cleantech companies, overcoming industry hurdles, and cultivating the skills and careers essential for sustained growth. Your engagement represents more than just participation – it's an active step towards influencing the future of global cleantech. 

Join this pivotal conversation and be a part of the movement propelling Canada to the forefront of a greener future!