Key Takeaways:
- Canada needs to get serious about solar power to meet its growing electricity demands and reduce its reliance on non-renewable energy sources.
- The country’s food supply chain is vulnerable and needs to be made more sustainable through the use of technologies such as industrial-scale greenhouses and modular, climate-controlled farms.
- Canadian clean technology companies face huge challenges in financing their first commercial facilities, and the government needs to find ways to bring pension funds and large institutional investors on board.
- Canada needs to own its mineral supply chain by creating a well-managed, integrated supply chain at home and building refineries that process and purify minerals.
- Buildings account for 18% of Canada’s emissions, and the construction industry needs to adopt market-ready technologies that can reduce their carbon footprint.
Introduction to Canada’s Climate Tech Scene
On paper, 2025 was a tough year for Canada’s climate tech entrepreneurs. The federal government supported a new oil pipeline to the West Coast, the US administration halted most emissions reduction efforts, and the UN abandoned hope of keeping global warming to 1.5 C. However, beneath the surface, new opportunities are bubbling up. The prevailing Canada-strong ethos is creating knock-on effects for startups, and there is a growing recognition that technologies that are useful to fight the climate crisis are also useful for establishing energy independence and supporting core industries nationally.
The Need for Solar Power
One of the key areas that Canada needs to focus on is solar power. The country needs more power, and by 2050, demand for electricity is expected to at least double. China and the EU are surging ahead, adding hundreds of gigawatts of renewable energy each year to cut energy imports. Canada has been much slower on the draw, and solar power accounts for just one per cent of its generation. However, solar power was having a good run in the early 2020s when Alberta, Canada’s sunniest province, was backing it heavily. In a few years, the province went from having almost no solar power to meeting nearly 10 per cent of its needs with it. Unfortunately, Alberta has now placed onerous restrictions on new renewable projects, and solar rated only a passing mention in the federal government’s November budget.
Sustainable Food Supply Chain
Canada’s food supply chain is also a major area of concern. The country imports 80 per cent of its fruit and 60 per cent of its fresh vegetables, which requires expensive and energy-hungry refrigerated supply chains that are both polluting and easily disrupted. One answer is to bring more production back to Canadian soil. Farmers are increasingly using industrial-scale greenhouses to extend the growing season for such crops as cucumbers, tomatoes, and peppers. Some innovators are bringing production even closer to communities through modular, climate-controlled farms. For example, Ottawa company Growcer has established 135 modular, climate-controlled farms across the country, which are about the size of a shipping container and can provide leafy greens year-round.
Financing Clean Technology
Canadian clean technology companies face huge challenges in financing their first commercial facilities. Seed investors will cut moderately sized cheques to get a company off the ground, and later-stage backers will swoop in when a technology has been well proven. In between, investors are scarce, and many entrepreneurs look south for funding, often taking their potential for job-creation and intellectual property with them. However, with the US turning off the taps for financing climate innovation, Canada has an opportunity to retake the initiative. Funding is available in Canada, and the government needs to find ways to bring pension funds and large institutional investors on board.
Mineral Supply Chain
Canada also needs to own its mineral supply chain. Magnets made with rare earth elements are essential for batteries and electronics, but their global supply is dominated by China. According to the International Energy Agency, Chinese minerals are used in more than 70 per cent of electric vehicles made outside of that country and nearly all power grid batteries. Canada needs to create a well-managed, integrated supply chain at home by building the refineries that process and purify the minerals. Not all minerals are underground, and cities sit on piles of rare earth minerals locked in old electronics, aging EVs, and discarded appliances. Much of it goes to landfill, but today’s scramble for minerals is making recycling economically viable.
Sustainable Buildings
Finally, buildings account for 18 per cent of Canada’s emissions, and the construction industry needs to adopt market-ready technologies that can reduce their carbon footprint. There’s a long list of technologies that could reduce emissions, including geothermal heat pumps, solar panels, massed timber frames, and low-carbon concrete. However, none have yet been adopted as standard by the construction industry. Overcoming that inertia is an urgent need, and the federal government could stimulate the market by adopting and showcasing more innovative technologies in its own portfolio. The government owns around 38,000 buildings and could provide a stamp of approval that these technologies are worth deploying.