An abundance of natural resources and a highly talented workforce give Canada a strategic advantage in the clean technology industry, and it’s important for the country to remain a global leader in the space. There are many organizations across the country that offer funding to innovative companies providing solutions to today’s environmental challenges. Here, we explore different ways organizations can finance their research and development through cleantech grants.
Funding Incentives for Cleantech in Canada
Statistics indicate that a vast number of Canadians care about the natural environment—the country obtains 67% of its electricity and 16.3% of its energy supply from renewable resources. Canada is also the world’s third-largest producer of hydroelectricity, putting the nation in a unique position to impact domestic and global cleantech markets.
Consider the following resources when exploring financial support for your cleantech endeavours:
Clean Growth Hub
The Clean Growth Hub is the ideal place to start when searching for clean technology funding. This free government service helps cleantech businesses at any stage locate financial assistance for various activities. Experts at the Clean Growth Hub can guide you to grant programs that will best support your company’s innovative efforts. You can also utilize their up-to-date list of current funding initiatives to pinpoint relevant R&D financing opportunities.
Business Development Bank of Canada (BDC)
The BDC is not exclusively devoted to funding environmental projects, but it will offer cleantech firms capital for research and development initiatives. The organization focuses the most attention on companies that use technology to enhance efficiency and mitigate ecological impacts.
The BDC extends funding to numerous sectors within the cleantech field, increasing the potential to receive financial assistance. However, it will only consider firms that have the following:
- A commercially valid IP-protected technology that positively affects the environment
- Proven market traction with the possibility for profit growth and commercial contracts
- A goal to reach more than $100 million in annual revenue
- A straightforward plan towards profitability
Agricultural Clean Technology Program: Research and Innovation Stream
This organization supports cleantech research and development to foster a low-carbon economy and sustainable agriculture. Under its Research and Innovation Stream, the program supports the development of clean technologies in three key areas—bioeconomy, green energy and energy efficiency, and precision agriculture.
Your business must be a legal entity that plans to conduct projects in Canada to qualify for the Agricultural Clean Technology Program. Eligible applicants include for-profit organizations, non-profit organizations, and indigenous groups. The program does not consider individuals, governments, Crown corporations, academic institutions, or financial groups.
Sustainable Development Technology Canada Fund (SDTC)
The SDTC provides funding and ecosystem connectivity to Canadian businesses that develop solutions for climate change, clean air, clean soil, and clean water. This government-supported foundation has served numerous companies since it started in 2000, investing more than $1.38 billion in 460 companies and providing 16,930 jobs.
The SDTC funds 33% of eligible project expenses on average but will support up to 40% of costs in some cases. To qualify for funding from this program, your organization must be Canadian and meet the following criteria:
- Clear project goals for a pre-commercial technology
- A solid value proposition for the end-user
- The potential to work with a partner for commercialization purposes
- Ecological and ecological benefits for the country
Strategic Innovation Fund Net Zero Accelerator Initiative
One of the main goals of the Net Zero Accelerator initiative is to enhance clean technology and minimize greenhouse gas emissions across Canada. It also seeks to expedite the country’s industrial transformation. The grant program consists of an initial $8 billion investment, plus an additional $1 billion in funding for all sectors to stimulate private investment in cleantech efforts.
If you wish to obtain funding from the Net Zero Accelerator Initiative, you must submit a statement of interest that includes the following information about the project:
- Specific details about your research and development
- Cost (must be a minimum of $20 million)
- How the technology will produce environmental benefits
- How the technology relates to Canada’s environmental interests
SR&ED Tax Incentive Program
The Scientific Research and Experimental Development (SR&ED) tax incentive program promotes innovative companies in Canada through tax incentives and refunds. Many cleantech firms qualify for this tax incentive program. This program is the largest single source of government-funded financial support in the country, providing more than $3 billion to over 20,000 organizations each year. Additionally, the funding is not based on the project’s success, giving companies the freedom to experiment until they achieve their scientific or technological goals.
Fund Your Cleantech Project with Easly
If you are searching for funding solutions to support your cleantech initiatives, turn to Easly. We help Canadian enterprises of all sizes and types finance projects with advances on their SR&ED tax refunds and other government receivables. Our streamlined application process and on-demand funding make it easy to optimize your cash flow and scale up your business strategically.
Get started today to gain access to our R&D finance services.