As the world intensifies its focus on environmental sustainability, Canada has emerged as a leader in clean energy and emissions reduction initiatives. With significant government backing, the nation is poised to accelerate its transition towards a greener future. At the forefront of this movement are the Clean Growth Hub and the Cleantech Investment Tax Credits (ITC), key pillars driving Canada’s clean growth agenda.
With the 2024 Federal Budget, the Canadian government clearly emphasized their interest in funding and implementing clean-energy and net-zero initiatives from province to province. In this blog, we explore the impact of such funding on the Canadian business funding landscape.
Empowering Stakeholders in Clean Technology: The Clean Growth Hub
The Clean Growth Hub stands as a beacon of support for clean technology stakeholders across Canada. Comprising a coalition of 18 federal departments and agencies, it serves as a centralized hub for information and assistance. By facilitating access to funding programs, services, and expert guidance, the Hub empowers innovators and entrepreneurs in the clean tech sector, fostering sustainable economic growth.
With a direct influence on up to 1,100 companies and organizations annually, spanning from emerging small enterprises to established leaders within Canada’s clean technology realm, the Clean Growth Hub assumes a pivotal role in driving sustainable economic development.
Acknowledging the necessity of ongoing support for stakeholders within the clean technology domain, Federal Budget 2024 proposed an allocation of $6.1 million over two years earmarked for the Clean Growth Hub.
Impact
This financial provision will empower the Clean Growth Hub to sustain its mission of assisting stakeholders in the clean technology sector, aiding them in identifying and accessing pertinent support and guidance. Consequently, this initiative will foster further advancement and innovation within the sector.
Explore our Cleantech Funding Directory to access up-to-date grant information for clean tech initiatives across all industries.
Fostering Innovation Through Cleantech Investment Tax Credits (ITCs)
In a bid to spur investment in clean technologies, the Canadian government introduced a suite of Cleantech Investment Tax Credits (ITC). These tax incentives are designed to encourage private investment in key areas of clean technology. Each tax credit serves a specific purpose, aimed at driving innovation and accelerating the adoption of clean technologies across various sectors.
Read our blog on the Clean Investment Tax Credits: A Federal Priority in 2024 to learn more about each individual tax credit.
Unveiling the Purpose of Each Tax Credit:
- Carbon Capture, Utilization and Storage (CCUS): This tax credit incentivizes the development and deployment of carbon capture and storage technologies, crucial for reducing emissions from industrial processes and power generation.
- Clean Technology Investment Tax Credit: Designed to stimulate investment in clean technologies, this tax credit offers financial incentives to businesses investing in renewable energy, energy efficiency, and waste management projects.
- Clean Hydrogen Investment: By providing tax incentives for hydrogen production projects, this credit promotes the growth of clean hydrogen technologies vital for decarbonizing transportation, industry, and energy sectors.
- Clean Technology Manufacturing Investment: This tax credit supports investment in clean technology manufacturing and critical mineral extraction and processing, facilitating the transition to cleaner production methods and sustainable resource management practices.
- Clean Electricity Investment Tax Credit: Aimed at boosting investment in renewable energy projects, this tax credit encourages the development of clean electricity generation, transmission, and storage infrastructure, reducing reliance on fossil fuels.
- EV Supply Chains: This newly introduced tax credit targets investments in the electric vehicle supply chain, incentivizing the production of electric, hybrid, or hydrogen-powered vehicles and associated infrastructure crucial for achieving emissions reduction goals in the transportation sector. This strategic initiative includes the introduction of a new 10% Electric Vehicle Supply Chain investment tax credit.
Impact
By incentivizing private investment in clean technologies, these tax credits serve as catalysts for innovation and economic growth. With a diverse range of credits targeting aspects of clean technology from carbon capture to electric vehicle supply chains, these initiatives provide financial incentives for businesses to adopt cleaner practices and technologies. As a result, we can expect to see accelerated advancements in renewable energy, reduced carbon emissions, and increased competitiveness in the global green economy. Furthermore, by encouraging investment in clean technologies, these tax credits contribute to job creation, economic resilience, and environmental stewardship, positioning Canada as a leader in clean technology innovation on the world stage.
Accessing Clean Tech Grants and Tax Credits
As Canada charts its course towards a more sustainable future, the Clean Growth Hub and Cleantech Investment Tax Credits emerge as catalysts in the nation’s clean growth journey. Through their collaborative efforts and strategic interventions, these entities drive innovation, stimulate investment, and propel Canada towards its clean energy and emissions reduction targets. As stakeholders harness the opportunities presented by these initiatives, Canada moves closer to realizing its vision of a greener, more resilient future.
While going green as a business can be difficult and costly, the Canadian government will support businesses in their environmental project efforts through grant funding and tax credits. Some noteworthy programs geared towards sustainability interests in Canada include the Strategic Innovation Fund (SIF) and the Low Carbon Economy Fund.
In 2024, we expect to see many sustainability initiatives both from the government and businesses across Canada. Join our newsletter to stay updated on the latest sustainability initiatives within the grant space and align your upcoming projects with Canada’s net-zero goals.
Whether you want to fund research and development, business expansion, hiring and training staff, or new capital and tech adoption, get in touch with us to get started on your funding application and learn ways to maximize your funding potential. Our recommendations to stack grants effectively can help you achieve up to 75% cost coverage.