Member Participation

Canada

Narrative

Protecting the environment and growing the economy go hand in hand. Clean technologies are a key component of the Government of Canada’s approach to promoting sustainable economic growth and will play a crucial role in Canada’s transformation into a low-carbon economy. Investing in the research, development and demonstration (RD&D) of new clean energy technologies accelerates the innovation required to bring these technologies closer to commercialization.

Canada’s federal energy RD&D investments target greenhouse gas reductions in Canada’s five highest emitting sectors:

  • Electricity generation
  • Transportation
  • Buildings
  • Oil and gas
  • Emissions-intensive industries (e.g., cement, chemicals, iron and steel)

Through its participation in Mission Innovation, the Government of Canada aims to:

  • Double federal investment in clean energy research and development over five years, from $387 million in 2014-2015 to $775 million by 2019-2020;
  • Encourage private sector investment in early-stage clean energy innovation companies in Canada; and
  • Increase domestic and international collaboration to advance Mission Innovation goals.

“Canada is proud to be a partner in this ambitious global initiative. By working together, we will deliver real benefits for our environment while also strengthening our economy, including through the creation of more middle class jobs.

A strong economy and healthy environment go hand-in-hand, and we are committed to leaving our children and grandchildren with a more sustainable and prosperous country. Mission Innovation will tap into the vast economic opportunities of our environment by helping to create the growth and jobs Canadians need.”

– Rt. Hon. Justin Trudeau, Prime Minister of Canada

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Implementation

Doubling Canada’s federal funding for energy research, development and demonstration (RD&D) requires a whole of government approach. Natural Resources Canada (NRCan) plays a leadership role in federal RD&D activities as a funder, through the Office of Energy Research and Development, and performer, through its three CanmetENERGY laboratories.

In carrying out its activities, NRCan works in collaboration with many other departments, agencies and federally-funded, arms-length organizations. In all, 15 organizations fund energy RD&D.

In addition to NRCan, these five organizations provided over 90 percent of Canada’s energy RD&D funding in 2014-2015:

  • Natural Sciences and Engineering Research Council of Canada
  • Sustainable Development Technology Canada
  • Atomic Energy of Canada Limited
  • National Research Council; and
  • Canadian Foundation for Innovation

The remaining federal investment in energy RD&D is shared between nine organizations: Transport Canada, Atlantic Canada Opportunities Agency, Western Economic Diversification, Agriculture and Agri-foods Canada, Environment and Climate Change Canada, the Canadian Nuclear Safety Commission, Defence Research and Development Canada, Indigenous and Northern Affairs Canada, and the Canadian Mortgage and Housing Corporation.

Baseline

Canada’s baseline of CAD $387 million is based on federal energy RD&D expenditures as identified in the International Energy Agency’s Survey of Energy RD&D Expenditures. The baseline is composed of reported federal expenditures for fiscal year 2014-15 of Natural Resources Canada and 14 other federal departments, agencies and organizations.

Highlights

Since the UN Climate Change Conference (COP21) in Paris, the Government of Canada has moved quickly to take the necessary steps to begin implementation of its Mission Innovation commitment.  Several early strategic investments to support Canada’s transition to a low-carbon, clean-growth economy announced in Budget 2016 are now being implemented, for example:

  • $82.5 million over 2 years to support research, development and demonstration of clean energy technologies with the greatest potential to reduce greenhouse gas (GHG) emissions in Canada.
  • $50 million over 2 years to invest in technologies that will reduce GHG emissions from the oil and gas sector.
  • $50 million over 4 years for technology projects that address climate change, air quality, clean water, and clean soil.
  • $50 million, annually, in increased spending by regional development agencies to support clean technology activities.
  • $46 million over 2 years to advance technology for charging electric vehicles.

In addition, through Budget 2016, the Government committed to invest over $1 billion over four years to support clean technology in the natural resource sectors (forestry, fisheries, mining, energy and agriculture); $2.9B over five years for activities that address climate change and air pollution issues; and $5B over 5 years for investment in green infrastructure, beginning in 2017.

The Government of Canada is also working to increase domestic and international collaboration to advance Mission Innovation goals.  On the domestic front, in March 2016, Prime Minister Trudeau convened a First Ministers’ meeting with his provincial and territorial counterparts to launch the development of the pan-Canadian Framework on Clean Growth and Climate Change, which will serve as the basis for action to meet or exceed Canada’s 2030 emissions targets, and transition Canada to a stronger, more resilient low-carbon economy. The First Ministers established working groups to identify options to address various aspects of climate change, including innovation, and publicly collected input from Canadians in order to identify options for action. Under the Canadian Energy Strategy (CES), provincial and territorial Ministers have welcomed the collaboration of the federal government in the areas of energy technology and innovation, energy efficiency and energy delivery, which will contribute to the development of the Pan-Canadian Framework on Clean Growth and Climate Change. Finally, at the annual Energy and Mines Ministers’ Conference in August 2016, Federal, Provincial and Territorial Ministers agreed to explore collaboration opportunities in clean technology, and enhance partnership and collaboration on international energy issues, and explore mechanisms and opportunities for provinces and territories to collaborate in international fora, including Mission Innovation.

Internationally, the Government of Canada is continuing to seek opportunities with partners to expand its collaboration on clean energy research, development and technology demonstration activities. For example, Prime Minister Trudeau met in March 2016 with United States President Barack Obama in Washington D.C., during which the two leaders issued a Joint Statement on Climate, Energy and Arctic Leadership that included a pledge to leverage participation in Mission Innovation and strengthen collaboration on clean energy research and development.  Canada is also working trilaterally with its North American partners, the United States and Mexico, through the Memorandum of Understanding Concerning Climate Change and Energy Collaboration that was signed in Winnipeg on February 12, 2016.

Other key Mission Innovation country partners with whom Canada is pursuing collaboration include China, South Korea and India. As a result, a Joint Declaration on Canada-China Clean Technology Cooperation was signed in Ottawa on February 25, 2016. On September 1, 2016, as part of Prime Minister Trudeau’s first official visit to China, Canada and China announced their intention to establish a working group under the Joint Declaration on Clean Technology. Natural Resources Canada signed a Memorandum of Understanding on Cooperation in Innovation and Energy Technologies with the Korean Ministry of Trade, Industry and Energy on March 3, 2016 at the GLOBE Summit in Vancouver. On September 09, 2016, Natural Resources Canada released a Joint Statement in collaboration with India’s Ministry of Petroleum and Natural gas and Ministry of New and Renewable Energy.

 

Baseline and Doubling Plans

  • Country-Determined Baseline Year(s): FY 2014-15
  • Baseline Funding Amount: CAD $387 million (USD $295 million)
  • Doubling Target-Year: FY 2019-20
  • Doubling Target Amount: CAD $775 million (USD $590 million)

Methodology for Determining Baseline

Based on federal energy RD&D expenditures as identified in the International Energy Agency’s Survey of Energy RD&D Expenditures. The baseline is composed of reported federal expenditures for fiscal year 2014-15 of Natural Resources Canada and 14 other federal departments, agencies and organizations. Of these 15 federal contributors to the Mission Innovation baseline, the following six organizations constituted over 90% of Government of Canada spending on energy RD&D:

  • Through collaboration with academia, industry and other governmental partners, Natural Resources Canada (NRCan) is a performer and a funder of research, development and technology demonstrations to find innovation solutions to environmental challenges in the energy sector.
  • With an organizational focus on basic research, the Natural Sciences and Engineering Research Council (NSERC) facilitates partnerships between Canada’s post-secondary institutions and industry, and training Canada’s next generation of scientists and engineers.
  • Atomic Energy of Canada Limited (AECL), a federal crown corporation mandated to perform [nuclear-focused] science and technology to meet Government of Canada responsibilities.
  • As a federally-funded, arms-length organization focused on technology development and demonstration, Sustainable Development Technology Canada works to bring economically viable clean technologies closer to market.
  • The National Research Council is a national research and technology organization that works with clients and partners to provide innovation support, strategic research, and scientific and technical services.
  • Through investments in research infrastructure – including state-of-the-art equipment, databases, and laboratories – the Canada Foundation for Innovation allows researchers to push the boundaries of knowledge, explore the unknown and generate exciting outcomes that benefit humankind.

The remaining federal investment in energy RD&D is shared between nine organizations: Transport Canada, Atlantic Canada Opportunities Agency, Western Economic Diversification, Agriculture and Agri-foods Canada, Environment and Climate Change Canada, the Canadian Nuclear Safety Commission, Defence Research and Development Canada, Indigenous and Northern Affairs Canada, and the Canadian Mortgage and Housing Corporation.

Country-Definition of Clean Energy R&D Investment

The research, development, and demonstration of technologies that provide solutions covering the span of energy supply (e.g., fossil fuels, wind, bioenergy, nuclear), energy transmission (e.g., smart grid, energy storage), and energy use (e.g., buildings, transportation); as well as solutions that improve operational performance or process efficiency, while reducing energy use, waste or environmental pollution.

Federal investments are implemented through a number of mechanisms including: cost-shared projects with the private sector that often leverage provincial and territorial funding programs, research and development activities at National Laboratories and Research Centers, and grants to universities.

Overview of Clean Energy R&D Focus Areas Emphasized in Mission Innovation Portfolio

Industry & buildings

 

Vehicles & other transportation

 

Bio-based fuels & energy

 

Solar, wind & other renewables

 

Nuclear energy

 

Hydrogen & fuel cells

 

Cleaner fossil energy

 

CO2 capture, utilization & storage

 

Electricity grid

 

Energy storage

 

Basic energy research

 

Indicators are for key areas of Mission Innovation R&D investment but do not imply a comprehensive representation of a country’s full R&D portfolio.

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