Beyond green: Cleantech as a business strategy in Canada
Beyond green: Cleantech as a business strategy in Canada
Clean technology, or cleantech, is impacting all industries in Canada — from manufacturing to energy, agriculture, and finance. Realizing the opportunities offered by this technology requires more than adopting new tools. It requires a shift in mindset, and it is important for business leaders to understand:
- What cleantech is
- The core technologies driving cleantech
- The federal supports fueling cleantech’s growth
- What cleantech means for your business
Clean technology, or cleantech, is impacting all industries in Canada — from manufacturing to energy, agriculture, and finance. This technology can help reduce your operating costs, open a path into new markets, and future-proof your business against regulatory and environmental risks. However, realizing these opportunities requires more than adopting new tools. It requires a shift in mindset.
Let’s discuss what cleantech is and the core technologies in this space. We’ll also explore the federal supports fueling its growth and what this means for your business.
What is cleantech?
Cleantech includes products, services, and processes to reduce or eliminate negative environmental impacts while promoting the sustainable use of natural resources. This includes solar panels, electric vehicles, smart grids, and water-saving systems.
Cleantech is not just about going green. It’s a technology-driven push to do more with less — less energy, less waste, and less harm to the planet. It’s innovation with purpose, designed to be economically viable, scalable, and essential for a sustainable future.
What core technologies are driving cleantech?
Cleantech is powered by a variety of technologies that redefine how businesses and individuals interact with water, minerals, and infrastructure. Key areas in this space include:
Renewable energy generation
Solar, wind, hydro, tidal, and geothermal technologies offer clean, scalable alternatives to fossil fuels. This helps reduce emissions and support energy independence for businesses and individuals.
Energy storage and grid innovation
Advanced batteries, grid-scale storage, and smart grid systems store excess energy and distribute it efficiently. This helps stabilize energy supply and meet demand in real-time, and these systems also ensure that renewable energy is reliable, flexible, and available when required.
Carbon capture, utilization, and storage (CCUS)
CCUS technologies reduce emissions from heavy industries by capturing carbon at the source and storing or repurposing it safely.
Clean transportation and mobility
Electric vehicles, hydrogen fuel systems, and smart logistics are reshaping how people and goods move — cutting emissions and improving efficiency.
Water purification and conservation
Advanced filtration, desalination, and water reuse systems help provide access to clean water while minimizing environmental disruption.
Circular economy solutions
Cleantech supports a shift from linear to circular systems, where materials are reused, recycled, and reintegrated into production. This helps reduce waste, conserve resources, and create new economic opportunities.
What federal supports are fueling the growth of cleantech?
The federal government has made cleantech a key priority. There are a wide range of programs designed to help accelerate the development and deployment of cleantech in Canada, including:
Clean Economy Investment tax credits (CE ITCs)
Refundable tax credits on eligible property for cleantech adoption, cleantech manufacturing, and hydrogen or carbon capture projects can help your business mitigate investment risks and support the adoption of these technologies.
| Investment tax credit (ITC) | What it supports | Credit rate | Notes |
|---|---|---|---|
| Clean Technology ITC (CT ITC) |
Solar, wind, small modular reactors, energy storage, heat pumps, zero-emission vehicles | 20 - 30% | Eligible from March 28, 2023, onwards. Incentive for the adoption and installation of cleantech properties |
| Clean Tech Manufacturing ITC (CTM ITC) |
Manufacturing equipment used to produce cleantech property and process critical minerals | 30% | Eligible from January 1, 2024, onwards. Incentive for the manufacturing of cleantech properties |
| Carbon Capture, Utilization, and Storage ITC (CCUS ITC) | Equipment for carbon capture, transport, storage, and utilization | Up to 60% | Highest rate applies to direct air capture projects |
| Clean Hydrogen ITC (CH ITC) | Equipment for clean hydrogen and ammonia production | 15% – 40% | Rate depends on carbon intensity of hydrogen produced |
MNP Insight
Draft legislation proposes adding biogas, biomass, and other bioenergy systems — like fuel converters and heat generators — to the list of eligible clean technology property under the CT and CTM ITCs. These proposals may significantly broaden the scope of qualifying assets.
Export Development Canada (EDC)
EDC offers financing, insurance, and advisory services to help cleantech firms grow internationally. In 2024 alone, EDC delivered over $12 billion to more than 440 Canadian cleantech companies.
Clean Growth Hub
This central resource helps cleantech businesses navigate more than 90 federal programs, connecting the dots between funding, regulation, and commercialization pathways.
Business Development Bank of Canada (BDC)
BDC provides customized financing, venture capital, and advisory services to cleantech firms, with a focus on commercialization, scalability, and sustainable growth.
Trade Commissioner Service (TCS)
TCS supports international expansion through market intelligence, export strategy, and global connections. It also hosts initiatives such as Cleantech Export Week and facilitates access to trade missions and foreign buyers.
Decarbonization Incentive Program (DIP)
DIP is funded through Canada’s Output-Based Pricing System (OBPS) Proceeds Fund. The program supports industrial projects that reduce emissions and deploy clean technologies in sectors with heavy emissions.
Scientific Research and Experimental Development tax incentive program (SR&ED)
This program provides tax credits for R&D activities, including those related to cleantech development, prototyping, and testing.
As the clean tech sector evolves, emerging technologies are creating new opportunities for intellectual property and market growth. The SR&ED program helps offset the high costs and risks of pre-commercial development, making it easier for innovators to bring sustainable solutions to market.
Strategic Innovation Fund (SIF) – Net Zero Accelerator
SIF supports large-scale cleantech projects that reduce emissions and drive industrial transformation in focus areas including clean fuels, electrification, and carbon capture.
NRC Industrial Research Assistance Program (IRAP)
IRAP offers advisory services and funding to small- and medium-sized cleantech firms engaged in R&D and commercialization. The program supports technical problem-solving and product development.
NSERC Idea to Innovation (I2I) grants
These grants support the pre-commercial development of cleantech originating from post-secondary institutions with the goal of helping bridge the gap between research and market-ready solutions.
Provincial incentives
Across Canada, provinces are also stepping up to support cleantech initiatives. From Alberta’s investments in hydrogen and carbon capture to Quebec’s leadership in electrification and B.C.’s CleanBC roadmap, provinces are shaping cleantech in ways that reflect their unique strengths.
What does cleantech mean for your business?
Taking a proactive approach and asking yourself the right questions is crucial to turn government supports and emerging technologies into long-term growth, resilience, and competitive advantage. The following steps can help your business develop a clear, actionable roadmap to mitigate risks associated with cleantech and capitalize on new opportunities.
Think beyond compliance
While government incentives are generous, they come with expectations. Programs such as the Clean Technology ITC and the Net Zero Accelerator reward companies that take a proactive approach. That means embedding sustainability into your business model — not just your marketing.
Ask: Do you have a clear plan for how cleantech fits into your growth strategy? Are you building a business that is ready for a low-carbon economy?
Build internal capacity
Accessing funding is only part of the equation. To scale cleantech solutions, businesses need the right talent, systems, and governance. This may involve upskilling your team, investing in data infrastructure, or creating cross-functional sustainability roles.
Ask: Do you have the right team and tools to manage and measure your cleantech projects from concept to execution?
Policy is moving — fast
The regulatory environment is evolving quickly. From new sustainability disclosure standards to evolving greenhouse gas reporting requirements, the policy landscape is becoming more structured — and more demanding. Businesses will be expected to demonstrate transparency, accountability, and measurable impact.
Ask: Is your business ready to meet future disclosure and compliance requirements — not just today’s?
Leverage partnerships
No business can succeed alone. Whether it’s collaborating with post-secondary institutions through NSERC’s I2I grants or joining trade missions through the TCS, partnerships can help your business accelerate innovation and mitigate risks.
Ask: Who can your business collaborate with to move smarter and faster?
Measure what matters
Cleantech success isn’t just about reducing emissions — it’s about resilience, efficiency, and long-term value. Leaders should be tracking return on investment (ROI), environmental impact, and alignment with ESG goals.
Ask: Are you measuring the right outcomes — and are they aligned with your strategic goals?
Navigate the cleantech space with confidence
MNP can help your organization navigate the cleantech space with confidence. From identifying funding opportunities and optimizing tax credits to developing ESG strategies and commercializing innovation, our teams are equipped to guide your cleantech journey from concept to execution.
Jay McLean , CPA, P. Eng, MBA, BASc.
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