Ottawa – A new report says despite tremendous potential, Canada’s clean technology sector is bleeding money and losing market share to its international rivals.
The Analytica Advisors report, out this morning, marks the firm’s seventh annual effort to take the pulse of the fledgling high-tech sector.
In 2011, the report established three possible scenarios for industry growth, the best of which showed the sector hitting $50 billion in revenues by 2022.
This year, however, shows growth has actually been closer to the slowest of the three scenarios, with revenues now likely to be closer to $18 billion by 2022.
Analytica president Celine Bak says part of the problem is that federal regulations prevent private investors from providing capital to companies that are ready to start manufacturing, but not yet profitable.
She says Canada’s regulatory system needs to be modernized so lenders can take into account the carbon footprint of investments in risk assessments, which would make clean technology more attractive.
The report also says Canada needs to rapidly phase out fossil fuels and immediately move to eliminate fossil fuel subsidies.
The clean technology industry directly employed about 55,200 people in 2015, across 850 firms, up from 729 firms and 38,800 employees in 2011.