Mr. Speaker, Innovation, Science and Economic Development Canada, ISED, maintains a single reinforced contribution agreement, CA, with the Canada Foundation for Sustainable Development Technology, SDTC, due to the arm’s-length nature of the organization. SDTC was set up by Parliament to deliver funding to eligible recipients under a further distribution of a contribution funding model, and as such, ISED is not a party to the funding agreements between SDTC and ultimate recipients, that is, clean technology companies.
ISED has a CA with SDTC for the SD tech fund. The goal of the SD tech fund is to advance clean technology innovation in Canada, specifically by funding and supporting technology projects at the pre-commercial development and demonstration stages. SD tech fund funding is distributed to projects named in individual funding agreements that SDTC maintains with project proponents.
As per the CA, the two main objectives of the SD tech fund are to contribute to achieving Canada’s environmental objectives, including greenhouse gas emissions reduction goals, and contribute to Canada’s sustainable economic growth by enabling Canadian entities to compete globally in the clean technology sector.
ISED’s CA with SDTC does not include projected emission reductions expected from individual projects funded under the SD tech fund.
The federal contribution to the SD tech fund under the reinforced contribution agreement for 2021-26 totals $547,621,802, inclusive of the amounts already disbursed to SDTC.
Since 2001, funding announced for the SD tech fund has totalled $2.1 billion and is as follows: $100 million over five years in 2001, $250 million over five years in 2004, $200 million over five years in 2005, $40 million over two years in 2011, $325 million over five years in 2013, $50 million over four years in 2016, $400 million over five years in 2017 and $750 million over five years in 2020, not all of which has been disbursed.
Since its inception, the Government of Canada has disbursed $1,476,941,199 to SDTC.
Federal funding for the SD tech fund does not include funding from other granting agencies managed by ISED.
Project eligibility criteria for the SD tech fund, as outlined in ISED’s CA with SDTC, include projects carried on or primarily carried on in Canada by an ultimate recipient to develop and demonstrate new technologies to promote sustainable development, such as technologies related to energy end-use in sectors such as transportation and buildings; technologies related to capture and storage, utilization and storage and more efficient technologies shown to result in a net reduction in greenhouses gases;
Technologies related to renewable energy and low-carbon fuel production and related technologies; greenhouse gas emissions reduction technologies related to areas other than energy production and use; air quality improvement technologies; enabling or crosscutting technologies, including sensors and controls, energy efficiency, monitoring and data-enabled solutions; water quality and quantity improvement technologies, including wastewater treatment technologies and water conservation technologies; waste management technologies, including those designed to prevent, reduce or eliminate solid waste generation or discharge, as well as materials recovery processes;
Soil quality improvement technologies, including the remediation of contaminants in soil and sediments; technologies related to the protection, management and restoration of natural systems; technologies related to sustainable agriculture and food production, such as precision agriculture, regenerative agriculture, indoor farming and alternative protein production; and front end development work, associated with technologies listed above, that will lead to final investment decisions for high capital-intensive projects.