Minister Champagne announces a new governance framework for cleantech funding

Source: | · GOVERNMENT OF CANADA · | June 4, 2024

Government of Canada resumes investments to cleantech sector with heightened due diligence 

The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, made the following statement:

“Sustainable Development Technology Canada (SDTC) has played a critical role in the growth and success of the clean technology sector in Canada. Established by an Act of Parliament more than 20 years ago, SDTC has a unique governance model that places most of its activities at arm’s length. While this model may have appeared suitable at the time, a new governance approach will strengthen oversight and accountability to meet today’s expectations of stewardship.

“The various reviews conducted ―including the Auditor General’s report ―have revealed serious weaknesses in SDTC’s governance, prompting a new delivery approach to government support for the cleantech sector.

"As soon as allegations were brought forward, my Department acted swiftly to address the situation. We immediately froze new funding to SDTC and initiated two separate independent reviews to thoroughly examine the claims, and invited the Auditor General to conduct an audit. These actions were rooted in our commitment to transparency, accountability, and upholding the highest standards of integrity.

“The government welcomes and agrees with the findings of the Auditor General’s report. We support the recommendations in the report, and many measures have already been implemented or are underway to address them. Our goal is to strengthen governance, enhance accountability, and ensure robust conflict of interest practices within SDTC and across all government operations.

“In light of the above, over the coming months, SDTC programming will transition to the National Research Council of Canada (NRC). The NRC’s vast experience supporting innovative, tech-focused SMEs, under programs such as the Industrial Research Assistance Program (IRAP), makes it an ideal choice to take on the responsibility of supporting homegrown clean technology companies. As a Government of Canada organization, the NRC is subject to rigorous and stringent oversight of its personnel and finances. This structure will help rebuild public trust while increasing accountability, transparency and integrity.