Canada’s commitment to sustainability has been underscored by the 2023 Foreign Direct Investment (FDI) report, which reveals significant trends and achievements. With $62.3 billion in total FDI and a global ranking of #2 for green energy investments, Canada is proving to be a top destination for sustainable business ventures. Here’s an in-depth look at how Canada is leveraging sustainability to attract foreign investments and create economic growth.
To learn about current government initiatives supporting Canada-wide sustainability projects, read our business funding analysis of the 2024 Canadian Federal Budget.
Leading in Green Energy Investments
Canada’s dedication to sustainability is evident in its position as the second-largest global destination for green energy investments. This is a testament to the country’s robust framework for supporting renewable energy projects and its commitment to reducing carbon emissions. Notable projects contributing to this status include Dow’s $8.9 billion net-zero petrochemical complex in Fort Saskatchewan, Alberta, which aims to be the world’s first net-zero carbon emissions-integrated ethylene cracker and derivatives site. This project alone is expected to create 7,000 temporary and 500 permanent jobs, showcasing how green investments can spur significant economic benefits.
“In 2023, Canada continued to cement its position as a top destination for foreign investors. Canada’s biggest FDI flows were in reinvested earnings. This speaks volumes about Canada’s ability to attract and retain long-term global investors. Established companies are expanding their operations, adding new facilities and hiring more Canadians. Canada also saw growth in the manufacturing sector, up by nearly $6 billion over the 10-year average”
– Laurel Broten, CEO, Invest in Canada
Diverse and High-Value Investments
The report highlights the diversity of source countries for FDI, with significant contributions from the United States, United Kingdom, Japan, and Germany. Each of these countries increased their investments in Canada, underscoring Canada’s global appeal as a sustainable investment destination. For instance, BHP’s $6.4 billion expansion of the Jansen Potash mining project in Saskatchewan focuses on sustainable farming and food security, further solidifying Canada’s role in global sustainability efforts.
Job Creation and Economic Growth
FDI into Canada is not just about capital inflows; it’s also about job creation and economic growth. The 2023 report details several high-profile investments that have led to job creation across various sectors. For example, E-One Moli’s $1 billion investment in a battery R&D and manufacturing facility in British Columbia is set to create 350 jobs, advancing Canada’s position in the sustainable production of critical minerals.
Sustainability and Innovation
Innovation is at the heart of Canada’s sustainability strategy. Ericsson’s $470 million investment in technology R&D centers and projects like E-One Moli’s lithium-ion battery plant demonstrate how Canada is fostering a green innovation ecosystem. These investments not only contribute to environmental goals but also position Canada as a leader in the development and commercialization of sustainable technologies.
Canada’s Electric Vehicle (EV) Revolution
Canada’s commitment to sustainability extends strongly into the electric vehicle (EV) sector, positioning the country as a leader in the global transition to clean transportation. The 2023 FDI report highlights significant investments in EV manufacturing and infrastructure, further solidifying Canada’s role in this critical industry.
Notably, major investments are being made in battery technology and EV production facilities. For example, Stellantis and LG Energy Solution have partnered to invest $5 billion in building one of North America’s largest EV battery plants in Windsor, Ontario. This project alone is expected to create over 2,500 jobs and accelerate Canada’s capacity to support the growing demand for electric vehicles globally
Did you know that Canada ranks as the global leader in EV battery supply chains? As experts in government funding, we specialize in securing EV funding opportunities. If your automotive business is ready to upgrade, reach out to us today!
A Stable and Competitive Investment Climate
Investors are drawn to Canada’s stable and competitive investment climate, which is bolstered by a talented workforce, global market access, and robust sustainability policies. The country’s ability to attract diverse and high-value investment is a reflection of strategic efforts to promote sustainability as a key economic driver.
Sustainability Funding in Canada
The 2023 FDI report marks Canada’s successful strategy of leveraging sustainability to attract significant foreign investments. With a focus on green energy, job creation, and innovation, Canada is not only meeting its environmental goals but also driving economic growth. Businesses looking for government funding and investment opportunities will find Canada’s sustainable and stable investment climate highly attractive.
Visit our Cleantech Funding Directory to find funding programs that are currently open to support your business’s sustainability efforts.
There is a range of available funding programs to help support your business’s sustainability efforts. It is imperative that you first evaluate the different funding programs to see which one aligns with your projects. Download our free resource on the different Funding Types to understand your possible options.