Public Investment & Financing

Overview

Public investment and financing in Canada play a pivotal role in advancing the country’s low-carbon economy through innovative programs and mechanisms that foster green infrastructure development. Initiatives focus on reducing greenhouse gas emissions, supporting clean technology, and mobilizing private capital to scale sustainable projects. Government-led programs provide targeted funding for transformative technologies like electric vehicles, renewable natural gas, and bioenergy, while green bonds attract socially responsible investments aligned with international environmental standards. Publicly traded green energy companies also allow Canadians to invest directly in sustainable projects, blending public support with private engagement to accelerate the transition to a cleaner, more resilient economy.

Strategic Innovation Fund (SIF)

The Strategic Innovation Fund (SIF) is a Canadian government program designed to support large-scale, transformative projects that foster innovation, economic growth, and the development of key industrial capabilities. Launched in 2017, SIF provides funding to businesses and collaborative networks to advance research, commercialization, and the expansion of industrial activities in Canada, particularly in sectors such as clean technology, biomanufacturing, and electric vehicles. The program aims to address Canada's innovation gaps, attract private investment, create high-quality jobs, and support long-term economic resilience, with a focus on driving the transition to a low-carbon, knowledge-based economy.

SIF Progress Report

The SIFs 2023 Impact Report outlines significant outcomes achieved since inception in 2017, including over 108 direct-to-business agreements and 10 network agreements, totaling $8.2 billion in contributions expected to generate $72 billion in private sector investments. Key achievements include surpassing the targeted 3:1 private investment leverage ratio, achieving a 9:1 ratio, and fostering faster growth among SIF-supported firms compared to national averages. These companies also increased their R&D spending by an average of 45% in 2020 and 30% in 2021, with collaboration levels significantly higher than the national average (64% vs. 18%). SIF projects have created over 3,100 co-op placements and boosted capital expenditures, particularly among larger companies, which saw a 36% growth in 2021. In terms of climate impact, SIF has been instrumental in advancing Canada’s low-carbon economy, supporting clean technology adoption and innovation in sectors like electric vehicles, and driving emissions reductions through initiatives like the Net Zero Accelerator.

Federal Party Stances on the SIF

Liberal Party

The Liberals emphasize supporting innovation and clean technology. They have used the SIF to back industries transitioning to a low-carbon economy, investing in clean energy projects and boosting Canada's competitive edge globally. Their approach focuses on fostering growth through green innovation and infrastructure development.

Bloc Québécois

The Bloc supports the SIF but advocates for policies that prioritize Quebec's specific needs. They have pushed for increased provincial control over the fund's distribution, ensuring it better aligns with regional priorities, particularly in advancing green technologies and addressing local economic challenges.

Green Party

The Greens focus on ensuring that the SIF supports sustainable and environmentally friendly technologies. They advocate for greater transparency in how the funds are allocated, with an emphasis on reducing Canada's carbon footprint and promoting renewable energy solutions.

Conservative Party

The Conservatives view the SIF as a tool for boosting economic competitiveness but advocate for a more targeted approach, such as excluding large foreign-controlled firms from certain subsidies. They argue that funds should primarily benefit Canadian-controlled companies and be used to support small- and medium-sized enterprises.

New Democratic Party

The NDP supports the SIF but calls for stronger oversight to ensure that investments are directed towards creating good jobs and fostering innovation in sectors like clean energy and healthcare. They stress the importance of public accountability and ensuring that funds serve the public interest.

Net Zero Accelerator (NZA)

The Net Zero Accelerator (NZA) outlines Canada's enhanced commitment to mitigating climate change and achieving its near-term emissions reductions target of 40-45% by 2030, with the long-term goal of a net-zero economy by 2050. As part of the 2020 Strengthened Climate Plan, the $8 billion Net Zero Accelerator (NZA) initiative was established, delivered through SIF, to accelerate activities aimed at reducing greenhouse gas (GHG) emissions, unlocking investments, and fostering sustainable growth. Projects supported by the NZA are aligned with Canada's 2030 Emissions Reduction Plan and aim to reduce emissions while promoting the transition to a clean economy. Although some projects do not directly reduce GHG emissions, they are crucial for enabling further decarbonization. Since its inception, over $5 billion has been invested in SIF projects with clean technology components, with recipients investing nearly twice as much in clean technology compared to business-as-usual operations. The Green Imperative consists of three key pillars.

Pillar 1: Decarbonization of Large Emitters

This pillar targets emissions reductions in high-emitting industrial sectors, including oil and gas and heavy industries like steel and cement. For example, projects by Algoma and ArcelorMittal Dofasco aim to reduce 6 million tonnes of annual GHG emissions by 2030. With further projects undergoing due diligence, these efforts could have the combined impact of removing 3 million cars from the road, reducing 10 million tonnes of GHG emissions annually.