Good morning, Madam Chair, ladies and gentlemen.
We are pleased to appear before you on behalf of GreenCentre Canada. We're grateful for the opportunity to provide our perspectives on economic recovery for the clean-tech sector. We've had the pleasure of meeting several committee members. For those unfamiliar with GreenCentre, we're a unique, not-for-profit organization that provides specialized technical and commercial services to companies developing sustainable chemistry-based technologies.
GreenCentre's past clean-tech projects have benefited a range of Canadian industries, from forestry and agriculture to energy, automotive, consumer products and resource recovery.
GreenCentre is here to request the creation of a program directed specifically at the needs of early-stage clean-tech companies. Our experience proves that a single lab-scale validation project valued at $100,000 can unlock public and private investment of $1 million or more to finance the more costly stages of scale-up and demonstration. A program that funds such projects has the potential to maximize short-term impact and accelerate economic recovery with the added benefit of reducing long-term dependency on government grants and subsidies.
Established companies and innovators with proven technologies are eligible for generous support from FedDev, SDTC, SIF and the net zero accelerator. Private sector investors also provide financial support to scale up and commercialize new technologies after and only after they've been substantiated.
We're concerned that government programs overlook early-stage clean-tech companies needing assistance to reach the point where blended financing is possible. These companies are an important part of the pipeline for both federal programs and private investors, but they face significant barriers to accessing the talent and resources needed to help them qualify.
Earlier this year we discussed this gap with 28 MPs, parliamentary secretaries, committee members, ministry staff and a senator, who expressed unanimous support for our concept. We were pleased to see a recommendation supporting GreenCentre's initiative included in the report from the Standing Committee on Finance released in February.
COVID-19 has disproportionately affected early-stage clean-tech companies. Unlike larger businesses, they operate on a narrow margin of survival. They face delays due to facility closures and occupancy limits, being forced to shift cash earmarked for technology development to cover operating expenses. Hiring has been frozen. Personnel have been laid off. Discussions with partners, investors and customers have slowed or stopped altogether and are only now beginning to resume.
Further, many clean-tech companies are led by young entrepreneurs and recent graduates. They are energetic and resilient but they struggle to finance the validation of their technologies even without the challenges of the past year.
Young Canadians must be at the heart of our recovery not only to help them rebound today, but also to ensure their future success.
GreenCentre has an established track record of invigorating Canada's clean-tech ecosystem. Since 2014, we've leveraged government funding to assist over 100 Canadian start-ups and SMEs which have raised over $250 million and created hundreds of jobs. The impact is irrefutable. These companies have industrial partners and investors. Some have domestic and export sales. Others have support from SDTC and are well on their way to commercial operation.
Li-Cycle, a previous GreenCentre program participant, has made the global clean tech 100 list for two years and has commercial operations in Ontario and New York as well as a project planned in Arizona. They are only getting started.
The federal budget proposes to make $1 billion available over five years to attract private sector investment in large-scale clean-tech projects. A mechanism is needed to advance innovative companies to the point where they actually qualify for these programs. GreenCentre has demonstrated the expertise, resources and reach to accomplish this. A GreenCentre program of $50 million over five years would accelerate up to 150 early-stage clean-tech companies to the point where blended financing could work.
The future health of Canada's clean-tech sector depends upon the success of the innovators developing new products today. Accelerating the time to market is critical not only for their survival, but also to ensure Canada's success in meeting ambitious climate goals and becoming a leading global supplier of sustainable products and processes.
To become a clean-tech leader, Canada must do more to bridge the gap between the research and commercialization. Early-stage clean-tech companies now more than ever need access to expertise and resources to aid in their recovery. A program that meets these needs will attract private sector investment and help fuel the growth of Canadian companies, create jobs for highly skilled workers and bring sustainable environmental benefits to the world.
Madam Chair, ladies and gentlemen, thank you for your attention. We look forward to your questions.