SDTC fallout: Is it time to change how Canada funds the cleantech industry?

Source: Jeffrey Jones | · THE GLOBE AND MAIL · | December 18, 2023

Source: Innovation, Science and Industry Minister Francois-Philippe Champagne speaks with reporters before attending a cabinet meeting on Dec. 12 in Ottawa. ADRIAN WYLD/THE CANADIAN PRESS

Canadian cleantech executives are growing worried about the sector’s ability to raise capital as the future of Sustainable Development Technology Canada – a crucial source of funding – remains uncertain after months of corruption accusations and political controversy.

Entrepreneurs, venture capitalists and even a whistle-blower who lodged the initial complaints about SDTC, say the publicly funded federal agency has played a vital role in expanding environmental technology to a scale that puts Canada in the industry’s global big leagues.

According to its own statistics, companies backed by SDTC generate annual revenue of $3-billion, and have created 24,500 jobs.

However, its ability to grant money remains suspended after nearly three months, and some worry about long-term damage to the brand after an investigation that showed evidence of conflict-of-interest breaches and inappropriate funding.

Industry insiders wonder if the Liberal government – or a future Conservative one – could vastly restructure SDTC or even shut it down just as demand for climate-change solutions is surging.

SDTC has been unable to fulfill its role as Canada’s largest funder of green technology since early October, when Industry Minister François-Philippe Champagne froze its funding.