Canadian Cleantech Summit

Speaking Notes

The Honourable Tony Clement, PC, MP
Minister of Industry

Ottawa, Ontario
April 28, 2010

Check Against Delivery

Thank you, Claude, for the kind introduction.

Ladies and gentlemen, let me join Mayor O’Brien and Claude Haw in welcoming you to Ottawa for this important summit. I would also like to congratulate Claude and his Ottawa Centre for Research and Innovation colleagues for assembling such a solid lineup of cleantech talent in one place.

The next couple of days present a remarkable opportunity for a cross-pollination of ideas and initiatives. I am sure you will come away energized about future possibilities that might help your projects come to fruition.

Although cleantech is part of a larger Canadian industrial sector that has suffered the effects of the global recession, few countries are as well placed to recover as we are. I think it fair to say that Canada is rebounding strongly, and at least part of that is owed to the success of government stimulus efforts.

I point to last week’s World Economic Outlook, published by the International Monetary Fund, in which Canada is expected to record the fastest growth among the G7 countries in 2010 and 2011. Recent Organisation for Economic Co-operation and Development (OECD) forecasts additionally suggest that our economy will expand strongly in the first half of 2010, well above the G7 average. And forgive me, but I can’t resist mentioning the comments of the OECD Deputy Secretary-General and Chief Economist, Pier Carlo Padoan, during his webcast. He suggested that “Canada is benefiting from its past good policies.”

And certainly, when it comes to clean technology, the world is beginning to take notice of what we are up to on the home front. I think Nicholas Parker, who will be delivering an address later in your conference, would say the same. You know, I had the pleasure of meeting with Nicholas, a fellow Canadian who actually coined the term “cleantech,” when I was in Israel back in November for the WATEC (Water Technologies, Renewable Energy and Environmental Control) Exhibition and Conference, and I think he would agree that Canada’s cleantech sector holds tremendous potential that is being recognized the world over.

While I’m on the subject of Canadian cleantech successes, it’s hard not to recognize the demonstration of our hydrogen and fuel cell technologies during the Vancouver 2010 Olympic and Paralympic Winter Games. Visitors and international media were duly impressed by our demonstration products — among them, the world’s largest single fleet of hydrogen-powered fuel cell electric buses, and our seven hydrogen fuelling stations, including the largest capacity hydrogen station in the world.

We have also gained the attention of the International Energy Agency. The Agency highlighted Canada’s objective of working with the provinces and territories to increase the share of clean energy in the electricity supply from 70 to 90 percent by 2020.

It’s easy to see what tremendous opportunities lie ahead for Canada’s cleantech sector. Having just returned from a clean energy conference in San Diego with my Mexican and American counterparts, it is clear to me that Canada is well positioned to lead in this relatively new industrial sector.

Now, I would be remiss if I did not mention the recent release of Sustainable Development Technology Canada’s (SDTC) Cleantech Growth & Go-to-Market Report. It made headlines at the GLOBE 2010 Conference in Vancouver last month and should be considered a significant source of up-to-date information on the state of the sector. My department was pleased to partner with SDTC and others on that report, and I encourage you to make it part of your required reading.

As Minister of Industry, it is clear to me that, in order to be at the forefront of the cleantech industry, we need to have the private sector and governments at all levels pulling in the same direction.

We really do have a win-win proposition on our hands here. Sure, some casual observers might think that business interests and progress on environmental goals are mutually exclusive. But, as the people in this room know, that could not be further from the truth.

Cleantech is an enabling sector that will allow us to realize economic growth while also paying attention to the environmental impact of our economic activity. And of course, the export potential is enormous.

That’s the good news. But we know we are in a very big global pond. Substantial challenges stand between you and success. I am talking about

• the ability to bridge the gap between research and development and commercialization;
• access to financing; and
• intense global competition.

I am sure some of these will be part of your discussion over the next couple of days.

Let me briefly outline how the federal government is helping you meet some of these challenges.

The success of cleantech companies depends on their ability to navigate and achieve success in all steps of the development process — the ability to take great ideas and bring them to commercialization. The government recognizes that many Canadian companies could use more support at various stages in this process.

That’s why we collaborate and add value at every step of the way to commercialization. For instance, we have created the business-led Networks of Centres of Excellence of Canada program, which increases private sector investment in Canadian research, supports the training of skilled researchers and accelerates the timeline from the lab to the marketplace. In Canada’s Economic Action Plan, $200 million in funding was provided for National Research Council Canada’s Industrial Research Assistance Program, to directly help businesses become more innovative. We have expanded the Canada Graduate Scholarships Program to connect our brightest young minds with our savviest entrepreneurs. And we have boosted funding for the Natural Sciences and Engineering Research Council of Canada Strategic Network Grants, which play an important role in training students and connecting academic researchers to Canadian-based organizations.

A second challenge facing your industry lies in access to financing. Simply put, capital — whether it is used to invest in research and development or to finance growth — is the lifeblood of a business. The government helps here in two ways: through modernizing policy frameworks and by making strategic investments.

On the policy side, we recently introduced legislation that narrows the definition of taxable Canadian property, eliminating the need for tax reporting for many investments under section 116 of the Income Tax Act. This enhances the ability of Canadian businesses to attract foreign venture capital, leading to the growth of high-quality, knowledge-intensive jobs.

On the heels of last year’s amendments to the Investment Canada Act — which lowered obstacles to foreign investment by focusing net benefit reviews on larger transactions — our government will open Canada’s doors to further venture capital and foreign investment in key sectors, including the satellite and telecommunications industries, giving Canadian firms access to the funds and expertise they need.

And I know that our Scientific Research and Experimental Development tax credit program is popular in your industry. Certainly, that is another tool at the government’s disposal for facilitating research and development.

Now, in terms of strategic investing, one of the government’s key instruments is the Business Development Bank of Canada — or BDC. I am proud to say we recently boosted support by $225 million to aid the BDC’s venture investments.    

Through the BDC, we also stepped up with $75 million for the Tandem Expansion Fund — aimed at late-stage research to get Canadian-made products and services across the finish line.

If you are fortunate enough to access financing and advance your product or service through to commercialization, you’ll know that globalization has made the marketplace extremely competitive. And the recession has made things even tougher.

Having said that, well before the economic storm hit, we knew we needed to improve the conditions under which Canadian firms compete domestically and globally.

We launched our comprehensive Science and Technology (S&T) Strategy in 2007. Its purpose is to build a competitive advantage through innovation, science and technology. Since the launch, our government has invested more than $8 billion to stimulate economic activity.

Environmental sciences and technologies is one of the Strategy’s main pillars, the first of four key priority areas in which Canada will build global research and commercialization leadership. The other three are natural resources and energy, health and related life sciences, and information and communications technologies.

To complement our S&T Strategy, we are also taking measures to encourage new ideas and protect the rights of Canadians whose research, development and artistic creativity contribute to Canada’s prosperity. In fact, the government intends to introduce legislation by the end of the current session to strengthen laws governing intellectual property and copyright.

Ladies and gentlemen, those are just a few of the federal government’s initiatives. You should be aware of them and, where appropriate, take advantage of them.

And now I think it is time to let you get on with the business of your conference.

Over the next few decades, governments the world over are going to continue to promote strategies for keeping their land, water and air as clean as possible through retroactive cleanup or proactive protection. The opportunities for the cleantech sector are obvious and surely put you on the right side of economic opportunity.

The Government of Canada will continue working with our American colleagues on a harmonized approach to climate change and clean technologies. We will continue to work with you to align our regulatory regimes to ensure a level playing field for our industries while minimizing compliance costs for industries operating across North America.

And although we are partners in the business of advancing the cause of cleantech at home and abroad, remember: governments can only do so much.

We can set the conditions for success through strategic investment, modernizing policies and providing direct funding when and where called for — along the lines I have outlined today.

But the final success or failure of your companies will not be driven, designed or developed by government. It will be created by people like you who are on the ground, generating ideas that lead to innovation, creating new products and developing new markets.

You have laid out a challenging course for the next decade. I note that the working title of the 2010 Growth & Go-to-Market Report is Establishing 20 by 2020 — establishing 20 Canadian clean technology companies that have achieved $100 million in revenue by the year 2020. It will take leadership and vision. And a lot of hard work. But I am confident you can reach that goal — and any others you set.

I wish you a most successful conference. Thank you.