2024 marked significant strides in Canada’s cleantech sector, driven by increased investments, government initiatives, and technological advancements. With an estimated 2,400 cleantech companies operating nationwide, Canada continues to punch above its weight class as it accelerates and scales world class ventures.

Particularly in the energy sector, Canada has considerable opportunities through investments in hydrogen and alternative fuels; carbon capture, utilization, and sequestration (CCUS); and long-duration energy storage (LDES). While comprehensive data is still emerging on the 2024 outcomes of cleantech investments and adoption, the early impacts of these initiatives are already visible, identifying promising areas where Canada can position itself as a global leader in a greener, more prosperous economy.

As we reflect on this past year, here are the top headlines with the power to tip the scales for Canadian climate innovation in 2025.  

Investments and Funding

• The cleantech sector saw $1.1B in capital investment in 2023, and experts expect VC investment to exceed past years with $980M invested by mid-Nov, 2024.
• Funding for cleantech resumed after funds from Sustainable Development Technology Canada (SDTC) were transitioned to the National Research Council (NRC). 
• An additional $500M in funding was allocated by the federal government to the Smart Renewables and Electrification Pathways program (SREPs), adding to the $2.9B budget that was announced in 2023.
• The Ministry of Energy and Natural Resources invested $9.14M in six clean hydrogen innovation projects.
• The federal government committed over $1B in funding for Atlantic Canada clean energy projects including $1B in New Brunswick and $192M to green energy projects in Nova Scotia.

Tax Credits and Incentives

• The federal government announced the first Clean Economy Investment Tax Credits (ITCs), including the Clean Technology ITC and CCUS ITC, expected to provide $11.4B in financial support through 2027–28.

Technological and Sectoral Advances

• Electric vehicle (EV) sales were up by 37.9% in the second quarter of 2024, representing 12.9% of all new motor vehicle registrations.13 Canadian companies were recognized on the 2024 Global Cleantech 100 list.
• 206 major solar energy projects and 337 wind energy projects got underway in January 2024.
• Nine new wind projects were were announced by BC Hydro as the province shifts to renewable energy.

Regional Highlights

• Transport Canada announced $25M in funding across four decarbonization projects in Ontario's marine sector.
• BC’s provincial government announced $12.5M in funding across six projects to accelerate cleantech development and reduce provincial industrial emissions.
• The federal government announced the establishment of a new Ontario facility to support cleantech development, backed by a $10M investment.
• The ReCover Initiative in Atlantic Canada received $17.5M from the federal government to retrofit the roofs of thousands of existing homes, making them more sustainable and energy efficient.
• The creation of a North Atlantic Green Energy Hub in Newfoundland was announced to accelerate green hydrogen production and exports.
• PrairiesCan announced more than $21M in funding to help Alberta commercialize and adopt cleantech.
• The Quebec government announced $4.5B in funding to support innovation and sustainability.

Research and Innovation

• Over $93M in funding was announced through the New Frontiers in Research Fund (NFRF) to support 165 Canadian-led research projects through two initiatives, one of which is the 2023 International Joint Initiative for Research in Climate Change Adaptation and Mitigation.
• The Ocean Technology 2024 program was launched by Canada’s Ocean Supercluster to advance ocean-related cleantech.

These headlines represent just a snapshot of the momentum driving cleantech and sustainability in Canada throughout 2024, with numerous other funding initiatives contributing to the growing ecosystem.

It’s clear that money is being spent on sustainable initiatives and cleantech development, but is enough being spent to ensure large-scale adoption?

The financial support we see being invested in scaling cleantech ventures is not being replicated when ventures reach the commercialization and adoption stages. Innovators are scaling, but they are reaching a ceiling when it comes to finding customers for their technologies. 

In EMC's "Industry Pulse Survey 2024: Green Manufacturing Adoption Report," 66.9% of decision-makers surveyed across 692 manufacturing firms said that a main barrier to cleantech adoption was a lack of support or services from the government. Simultaneously, 72% identified cleantech adoption as too costly, and 70.2% said the investment was not necessary to continue operations. EMC elaborates, "If manufacturers are aware of the financial incentives offered by both federal and provincial governments, do they have the capability/capacity or desire to apply for the funding that will allow them to transition to cleantech, and are the incentives sufficient to adequately offset the costs for making the switch." These are questions to consider when analyzing what efforts Canada is making to ensure the widespread adoption of cleantech.

For Canada to reach its net zero goals, our largest industries need to be incentivized and de-risked in identifying and adopting the right cleantech solutions.  Adopting cleantech is the path to remaining competitive in a future economy driven by sustainability regulations, a changing global climate—both environmentally and economically—and a landscape where consumers are becoming increasingly selective of the companies they support. 

The progress made in the cleantech sector during 2024 was transformative and serves as a critical foundation for the road ahead.

In 2025, it will be essential to both build on these achievements and double our efforts to accelerate cleantech adoption. Here are the headlines we want to see in 2025’s Year in Review: 

• Investors continue channeling funds into cleantech, empowering startups and scaling technologies 

• Buyers embracing innovative solutions on a broader scale

• Governments lead with policies that incentivize adoption and commercialization

The change we seek hinges on a unified shift in mindset at all levels—industries, solution providers, and policymakers alike. This shift isn’t just about mitigating the climate crisis—it’s about economic resilience. Industries adopting cleantech can boost competitiveness, reduce costs, and enhance profitability. Governments leveraging these innovations can simultaneously tackle pressing global issues like food security, housing shortages, and waste management.

Canada stands at a pivotal moment, with vast potential to lead the way. By prioritizing action in 2025, we can not only do better but also set a global example of how sustainability and prosperity can coexist. Let’s ensure that the next year becomes a testament to the power of collective ambition and innovation.

Check out these cleantech adoption resources:

• Cleantech Adoption Platform (CAP)
• Innovation Challenges
• Cleantech Adoption Business Case Studies