Why we must accelerate our cleantech innovation

November 17, 2023

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Trade Matters: Accelerating Canada’s cleantech innovation

One hundred eighty-six. That’s the answer when you ask the internet how many kinds of pie there are. One type you won’t find on the list? The cleantech pie. But that’s the one on Stuart Bergman’s mind in this Trade Matters commentary.

Bergman, EDC’s vice-president and chief economist, focuses on the burgeoning environment and cleantech (ECT) sector—and what Canada must do if we want a healthy slice of the market for mass-manufactured clean energy technologies. It’s forecast to reach as much as US$650 billion a year by 2030. But the recipe for getting our fair share is finicky, complicated and will take time that we may not have if we don’t accelerate our efforts to stay abreast of the competition.

Bergman begins by reviewing the state of the cleantech market and what’s made it so resilient through 2022. And he assesses how Canada’s C$100+ billion strategic investment commitments stack up in light of legislative actions in the U.S. and the European Union (EU). Then, in the future.

Citing our recent report, Canadian cleantech: Powering progress, Bergman isolates factors Canada must address to be competitive, drive cleantech exports to diversify our export exposure, and the challenges and areas of growth for our cleantech exporters. And the news is mixed, including:

Canadian cleantech venture capital (VC) investment reached $1.2 billion in 2022, quadrupling in value since 2018
ECT exports are at an all-time high, reaching $17.6 billion last year
Due to a reliance on ECT imports, Canada’s ECT trade balance has been in deficit since 2012

So, what’s a cleantech baker to do? Bergman finds clues in the list of import ingredients our ECT sector relies on, the goods giving us annual trade surpluses, how we’re collaborating with the U.S. on cross-border grid integration, the scope of ECT funding challenges, and threats to retaining skilled labour.

At the risk of belabouring this pie analogy even further, we can think of creating a supportive funding environment as the pie’s crust, innovative ECT technology and product solutions as the filling, and government/private sector collaboration on strategies to stimulate exports as the topping. That’s the recipe to ensure Canada gets a healthy slice of the global cleantech pie. And who doesn’t like a piece of pie, after all?

Watch the video now ›

For more insights, market intelligence, and inspiration on how to support and grow our cleantech sector, consult the following EDC resources:

EDC report: Canadian cleantech: Powering progress
Companies featured at EDC’s recent Cleantech Export Week: Three “Export Stars” and two “Ones to Watch” for their ECT outstanding achievements
EDC report: Overview of cleantech project financing at EDC
EDC cleantech portal: Cleantech at EDC

[EDC webinar series] Global Economic Outlook: Preparing for business in 2024 (Dec. 7, 2023)

One glance at the headlines confirms the world is awash in change and uncertainty, as extraordinary shifts in geopolitical and economic dynamics batter the business environment. Weak global demand and an unstable North American economy may require you to adapt, innovate, and make tough choices in 2024. That’s why you should register now for this webinar.

Join us live on Thursday, Dec. 7, 2023, from 1 to 2 p.m. ET, to learn:

Our most up-to-date growth outlooks for the domestic and global exconomies next year
The biggest risks facing Canadian exporters in 2024 and how to prepare for them
The most effective strategies for minimizing international export risks

Register now to prepare for what’s ahead for the global economy in 2024, the potential challenges, and how to overcome them. [Reserve your spot now]

Get webinar-ready by downloading our latest Global Economic Outlook report. In 31-pages, it takes the pulse of the world’s key economies and provides forecasts for gross domestic product (GDP) growth, commodity prices, interest rates, exchange rates, and more. It also examines the interconnectedness between monumental interest rate hikes, inflation, labour market activity, consumer resiliency, the war in Ukraine, dampening commodity demand, and slow growth in China. And it includes growth outlooks for nine countries, including Indonesia. [Download now for our latest growth forecasts]

[EDC report] Going forward: Canada’s light manufacturing sector

Employing about 1.8 million people in 2022, Canada’s manufacturing sector has seen investment grow steadily in four subsectors:

Transportation equipment;
Food processing;
Chemical manufacturing; and
Primary metals.

This 22-page report analyzes the current state of the sector and investigates how overall trade performance in manufacturing has been negatively impacted by substantial deficits in transportation equipment, computer and electronics, chemicals, and machinery—all faced deficits greater than $30 billion in 2022.

The report also assesses sector growth patterns, investment trends and economic challenges surrounding this sector, and what Canadian manufacturers can expect going forward. It also examines implications for Canadian supply chains and prospects for growth in select subsectors. [Download the report now]

Economic and trade resources

Make informed trade decisions

Country Risk Quarterly

This interactive tool uses high-frequency data to help you assess the risk environment in more than 45 countries.

The Commodity Tracker

Turn to this weekly report to stay on top of changes in the commodity prices that matter to you.

Global Financial Markets

This weekly publication reports financial and macroeconomic information for both developed and emerging markets.

Global Economic Outlook

This report provides insight on how current economic conditions impact the export environment.

Wrapping up

We’re working hard to improve this newsletter, and want to make sure that the articles we pick are relevant to you. Let us know if you liked this edition, think it’s OK, or if it needs work.

This edition of Economic Insights was written and curated by Bernie Schroeder, a content developer on EDC's Marketing team. Send him an email if you have any thoughts, comments or feedback on this newsletter.

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Also: A webinar on the global economic outlook for 2024, analyzing Canada’s light manufacturing sector + four economic and trade resources ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ DC November 17, 2023 ECONOMIC INSIGHTS Webinars | EDC Insights | MyEDC | Trade Matters podcast | TRADE MATTERS: ACCELERATING CANADA’S CLEANTECH INNOVATION One hundred eighty-six. That’s the answer when you ask the internet how many kinds of pie there are. One type you won’t find on the list? The cleantech pie. But that’s the one on Stuart Bergman’s mind in this Trade Matters commentary. Bergman, EDC’s vice-president and chief economist, focuses on the burgeoning environment and cleantech (ECT) sector—and what Canada must do if we want a healthy slice of the market for mass-manufactured clean energy technologies. It’s forecast to reach as much as US$650 billion a year by 2030. But the recipe for getting our fair share is finicky, complicated and will take time that we may not have if we don’t accelerate our efforts to stay abreast of the competition. Bergman begins by reviewing the state of the cleantech market and what’s made it so resilient through 2022. And he assesses how Canada’s C$100+ billion strategic investment commitments stack up in light of legislative actions in the U.S. and the European Union (EU). Then, in the future. Citing our recent report, Canadian cleantech: Powering progress, Bergman isolates factors Canada must address to be competitive, drive cleantech exports to diversify our export exposure, and the challenges and areas of growth for our cleantech exporters. And the news is mixed, including: * Canadian cleantech venture capital (VC) investment reached $1.2 billion in 2022, quadrupling in value since 2018 * ECT exports are at an all-time high, reaching $17.6 billion last year * Due to a reliance on ECT imports, Canada’s ECT trade balance has been in deficit since 2012 So, what’s a cleantech baker to do? Bergman finds clues in the list of import ingredients our ECT sector relies on, the goods giving us annual trade surpluses, how we’re collaborating with the U.S. on cross-border grid integration, the scope of ECT funding challenges, and threats to retaining skilled labour. At the risk of belabouring this pie analogy even further, we can think of creating a supportive funding environment as the pie’s crust, innovative ECT technology and product solutions as the filling, and government/private sector collaboration on strategies to stimulate exports as the topping. That’s the recipe to ensure Canada gets a healthy slice of the global cleantech pie. And who doesn’t like a piece of pie, after all? Watch the video now › For more insights, market intelligence, and inspiration on how to support and grow our cleantech sector, consult the following EDC resources: * EDC report: Canadian cleantech: Powering progress * Companies featured at EDC’s recent Cleantech Export Week: Three “Export Stars” and two “Ones to Watch” for their ECT outstanding achievements * EDC report: Overview of cleantech project financing at EDC * EDC cleantech portal: Cleantech at EDC [EDC WEBINAR SERIES] GLOBAL ECONOMIC OUTLOOK: PREPARING FOR BUSINESS IN 2024 (DEC. 7, 2023) One glance at the headlines confirms the world is awash in change and uncertainty, as extraordinary shifts in geopolitical and economic dynamics batter the business environment. Weak global demand and an unstable North American economy may require you to adapt, innovate, and make tough choices in 2024. That’s why you should register now for this webinar. Join us live on Thursday, Dec. 7, 2023, from 1 to 2 p.m. ET, to learn: * Our most up-to-date growth outlooks for the domestic and global exconomies next year * The biggest risks facing Canadian exporters in 2024 and how to prepare for them * The most effective strategies for minimizing international export risks Register now to prepare for what’s ahead for the global economy in 2024, the potential challenges, and how to overcome them. [Reserve your spot now] Get webinar-ready by downloading our latest Global Economic Outlook report. In 31-pages, it takes the pulse of the world’s key economies and provides forecasts for gross domestic product (GDP) growth, commodity prices, interest rates, exchange rates, and more. It also examines the interconnectedness between monumental interest rate hikes, inflation, labour market activity, consumer resiliency, the war in Ukraine, dampening commodity demand, and slow growth in China. And it includes growth outlooks for nine countries, including Indonesia. [Download now for our latest growth forecasts] [EDC REPORT] GOING FORWARD: CANADA’S LIGHT MANUFACTURING SECTOR Employing about 1.8 million people in 2022, Canada’s manufacturing sector has seen investment grow steadily in four subsectors: 1. Transportation equipment; 2. Food processing; 3. Chemical manufacturing; and 4. Primary metals. This 22-page report analyzes the current state of the sector and investigates how overall trade performance in manufacturing has been negatively impacted by substantial deficits in transportation equipment, computer and electronics, chemicals, and machinery—all faced deficits greater than $30 billion in 2022. The report also assesses sector growth patterns, investment trends and economic challenges surrounding this sector, and what Canadian manufacturers can expect going forward. It also examines implications for Canadian supply chains and prospects for growth in select subsectors. [Download the report now] ECONOMIC AND TRADE RESOURCES Make informed trade decisions COUNTRY RISK QUARTERLY This interactive tool uses high-frequency data to help you assess the risk environment in more than 45 countries. THE COMMODITY TRACKER Turn to this weekly report to stay on top of changes in the commodity prices that matter to you. GLOBAL FINANCIAL MARKETS This weekly publication reports financial and macroeconomic information for both developed and emerging markets. GLOBAL ECONOMIC OUTLOOK This report provides insight on how current economic conditions impact the export environment. WRAPPING UP We’re working hard to improve this newsletter, and want to make sure that the articles we pick are relevant to you. Let us know if you liked this edition, think it’s OK, or if it needs work. ---------------------------------------------------------------------------------------------------------------------------------- This edition of Economic Insights was written and curated by Bernie Schroeder, a content developer on EDC's Marketing team. Send him an email if you have any thoughts, comments or feedback on this newsletter. Government of Canada logo Camada: JF . v M YORED JEKE WG U Export Development Canada 150 Slater Street Ottawa, Ontario K1A 1K3 | | Connect With Us LinkedIn Twitter Instagram Facebook Youtube

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