GOVERNMENT FUNDING

Innovation, Science and Economic Development Canada (ISED) announced a $79.1-million investment under the Strategic Innovation Fund (SIF) to support Sweden-headquartered Ericsson’s $634.8-million project to advance 5G technologies for next-generation telecommunications networks. The project will also involve R&D work for cloud-based wireless technologies and architectures, as well as artificial intelligence and quantum computing solutions to meet the needs of customers. This work will be performed at Ericsson Canada Inc.’s facilities in Ottawa and Saint-Laurent, Que. This partnership will bring economic benefits to the Ottawa and Montréal regions, stimulate Canada’s 5G ecosystem and drive growth in the entire tech sector, ISED said. The project is also expected to create 1,200 co-op student positions and more than 190 jobs and to sustain 2,400 jobs in Canada, primarily in well-paying R&D positions. But the project and SIF funding were  criticized by John Ruffolo, founder and managing partner at Maverix Private Equity and co-founder of the Council of Canadian Innovators. “Ericsson, a foreign-based multinational with over $30 billion in revenues, was not only awarded a $634-million project from the federal government but was handed $79 million from the Strategic Innovation Fund to financially support the project,” he said in a LinkedIn post. “It is one thing that our governments do not routinely award procurement contracts to Canadian-based companies, but it is a real kick in the teeth when they take our scarce tax revenues and hand it to foreign enterprises to compete against our Canadian companies." Added Ruffolo: “We need to stop the handouts. We need to step up procurement for Canadian-based enterprises and redirect dollars that are being used to procure services from foreign-based companies.” ISED

François-Philippe Champagne, minister of Innovation, Science and Industry, announced the launch of the Canadian Artificial Intelligence Safety Institute (CAISI) to bolster Canada’s capacity to address AI safety risks, further positioning the country as a leader in the safe and responsible development and adoption of AI technologies. CAISI will have an initial budget of $50 million over five years, as the government committed to in Budget 2024. The Institute is one component of a broader $2.4- billion investment announced in Budget 2024 to help researchers and businesses develop and adopt AI responsibly. CAISI will leverage Canada’s world-leading AI research ecosystem and talent base to advance the understanding of risks associated with advanced AI systems and to drive the development of measures to address those risks, Ottawa said. Building on Canada’s commitment to international collaboration through the Bletchley Declaration, CAISI will also collaborate with safety institutes in other jurisdictions as part of the new International Network of AI Safety Institutes, which will convene for the first time later this month in San Francisco.The Canadian AI Safety Institute is part of the government’s broader strategy to promote safe and responsible AI development in Canada, which includes the proposed Artificial Intelligence and Data Act and the Voluntary Code of Conduct on the Responsible Development and Management of Advanced Generative AI Systems. Innovation, Science and Economic Development

The Federal Economic Development Agency of Southern Ontario (FedDev Ontario) announced a combined federal government investment of over $47.5 million to expand the Scale-Up Platform. The funding will go to three regional innovation hubs to provide access to capital, talent and global markets while delivering mentoring programs and services. The hubs, which support thousands of innovative companies that range from startups to scale-ups, are led by Invest Ottawa, Communitech and MaRS Discovery District. The aim is to foster the development of Canadian anchor firms that generate $100 million in annual revenue and to attract billions of dollars in investment. FedDev Ontario

Innovation, Science and Economic Development (ISED) announced a contribution of $11.3 million through the Strategic Innovation Fund to support Longueuil, Que.-based Pratt & Whitney Canada’s $34.9-million research and development project targeted at maturing next-generation thermal engine technologies. By enabling more efficient performance and reduced emissions for future aircraft propulsion systems, these thermal engine technologies will help the sector move toward its net-zero carbon emissions objective. Support for R&D projects led by Pratt & Whitney Canada is  expected to maintain thousands of jobs and employ students for around 325 co-op terms annually, and will involve collaborations with numerous research institutes and academic partners to support the advancement of aviation technology, ISED said. ISED

The Government of Québec awarded grants totalling $7.8 million for 14 projects that will support the development of research platforms and facilities that promote access to infrastructure for businesses and stakeholders across the province. The grants follow a call for projects launched in December 2023 as part of the 2022-2027 Quebec Strategy for Research and Investment in Innovation. Recipients include Cégep de Shawinigan, McGill University, Polytechnique Montréal, Université de Montréal, and Université Laval. The Quebec government also announced more than $5.8 million in support for youth initiatives at 19 not-for-profit organizations for 2024-25 and 2025-26. The funding will support services that contribute to young people's personal, academic and professional development. This support is a continuation of the transition between the 2021-2024 Youth Action Plan and the new plan to be made public in 2025.  Govt. of Quebéc

The Federal Economic Development Agency for Southern Ontario (FedDev Ontaro) announced a $7-million investment for the expansion of Project Arrow 2.0 that builds on Project Arrow, the first Canadian-made, connected and autonomous vehicle (CAV). The Automotive Parts Manufacturers' Association (APMA) brought together the best of Canada’s electric-drive, alternative-fuel, connected and autonomous technology companies, manufacturers and suppliers through Project Arrow to demonstrate Canada’s world-class automotive capabilities on a global stage. A previous FedDev Ontario investment of over $5 million helped facilitate the design and build of Project Arrow as well as its digital twin, which has been used as a leading virtual platform for testing and validating CAV technologies and parts. The vehicle integrates components from over 55 Canadian businesses, including Myant Corp, which provide knitted sensors and actuators into the fabric of Project Arrow’s steering wheel. Through this new investment, APMA will build on the success of Project Arrow and continue to work alongside Canadian suppliers, technology companies and academia to expand its fleet of vehicles to demonstrate the competitiveness of Canada’s CAV and zero-emission vehicle suppliers while strengthening the regional automotive supply chain. FedDev Ontario

Prairies Economic Development Canada (PrairiesCan) announced more than $4.3 million for five projects contributing to Alberta’s leadership in aerospace and aviation innovation. The projects include:

• $2.6 million for UVAD Technologies Inc. for developing, demonstrating and commercializing an electric fixed-wing uncrewed aerial vehicle.  
• Over $1.4 million for the Southern Alberta Institute of Technology to create an aerospace composite materials laboratory. This new lab includes leading-edge manufacturing and testing equipment, as well as a team of expert researchers and engineers to support cutting-edge research in the aerospace manufacturing sector.
• Over $186,000 for the Alberta Aviation & Aerospace Council to develop and deliver the Alberta Aerospace and Defence Conference in 2025 in Calgary and 2026 in Edmonton. This newly established in-person event will help connect Alberta’s small and medium-sized firms with procurement and investment opportunities with global defence contractors.
• Over $100,000 for Elevate Aviation to develop and launch a mentorship initiative that provides access to personalized mentorship connections, networking opportunities and professional development courses – ultimately leading to job placement opportunities for underrepresented groups while addressing the demand for skilled workers in the aerospace and aviation industry.
• Over $50,000 for Sturgeon County to develop a report and ecosystem map on the Alberta’s aerospace and defence sector value chain. This project will better enable the County and sector partners to identify and connect local small business suppliers to larger companies. PrairiesCan

The Atlantic Canada Opportunities Agency (ACOA) announced investments totalling more than $3.2 million through the Community Futures program for 15 Community Future Development Corporations (CFDCs) throughout Newfoundland and Labrador. This funding will enable these CFDCs to offer essential financial assistance, specialized training, expert guidance and customized local initiatives to the rural businesses, organizations and communities they support. ACOA

The Federal Economic Development Agency for Northern Ontario (FedNor) announced a $1.5-million investment in the Birch Island, Ont.-based Waubetek Business Development Corporation. Provided through FedNor’s Community Futures Program, the funding will support Waubetek’s ongoing operations for a five-year period beginning September 1, 2024. The funding will help this not-for-profit organization provide business counselling and investment services to small and medium-sized businesses, as well as leadership in community strategic planning and socio-economic development. In the previous five-year operating period, Waubetek provided more than $3.3 million in business loans, which helped nearly 40 businesses start up, scale up and increase profitability. FedNor

RESEARCH, TECH NEWS & COLLABORATION

The Tri-agency federal granting councils will transition away from the Canadian Common CV (CCV) to a new narrative-style CV for their research funding competitions. The transition to a new Tri-agency CV complements the work underway on the Tri-agency grants management solution (TGMS), a project to modernize the granting councils’ grants management systems to better support applicants, administrators and reviewers. The new Tri-agency CV will serve as the CV component of TGMS. The Tri-agency CV template was developed through extensive consultation with users and has been piloted by the granting councils in select funding opportunities. During TGMS journey-mapping exercises, users voiced support for a new CV template that would allow applicants to include a free-form narrative personal statement, aligning with trends seen in other funding agencies like the U.S. National Institutes of Health and UK Research and Innovation. The new CV will prioritize written descriptions of an applicant’s research contributions, allowing users to highlight a wide range of research outputs and to describe their career trajectories in more detail. This format values societal research outcomes, such as influence on policy or mentorship, alongside more traditional research outputs like publications. The Tri-agency said details about the TGMS implementation plan will be shared in the coming months. Funding opportunities launched on TGMS will include the new Tri-agency CV. In the short term, the granting councils will continue to use the new Tri-agency CV in select funding opportunities delivered through their respective legacy systems. The Tri-agency is comprised of the Canadian Institutes of Health Research, the Natural Sciences and Engineering Research Council and the Social Sciences and Humanities Research Council. Tri-agency granting councils

Simon Fraser University (SFU) launched the Global Institute for Agritech (GIA), a multi-faculty research institute designed to advance agritech research and foster collaboration with global partners. The GIA will seek innovative solutions to tackle global agricultural challenges arising from climate change, such as drought resilience and soil degradation, and find solutions to food security issues. The institute will focus on precision farming, pest management and crop diversification, among other topics, with the aim of promoting knowledge sharing and research application. “[The GIA] will train the next generation of agrifood innovators who are in tune with community needs, are adaptable to changing circumstances on the ground, who think systematically, and can harness the power of technology to develop an equitable and sustainable food system for all,” said Tammara Soma, an associate professor of Resource and Environmental Management at SFU. Institute membership, including an advisory council, includes representatives from Kwantlen Polytechnical University, University of the Fraser Valley, Wageningen University and Research (The Netherlands), Technical University München (Germany), and government bodies. SFU

Six Canadian business schools are ranked in the top 40 in the world in the Corporate Knights 2024 Better World MBA rankings. Corporate Knights evaluated 174 MBA programs from around the world, reviewing the proportion of required courses integrating relevant sustainable themes and the companies that alumni went on to work for. The top 40 institutions included in the final rankings are from 14 countries. The six Canadian business schools are: University of Victoria’s Peter B. Gustavson School of Business (#9); University of British Columbia’s Sauder School of Business (#13); York University’s Schulich School of Business (#15); Toronto Metropolitan University’s Ted Rogers School of Management (#17); McGill University’s Desautels Faculty of Management (#26); and HEC Montréal (#36). Six U.S. schools also made the top 40. Australia’s Griffith Business School topped the ranking for the fifth year in a row. “The sustainable economy is growing twice as fast as the rest of the economy, but most business schools are missing out, with 84 percent of core courses failing to touch on relevant sustainability themes,” said Corporate Knights CEO Toby Heaps. “The top 40 schools in the Better World ranking are bucking this trend and preparing their graduates to thrive in a world where sustainability is the growth engine.” Corporate Knights

The Government of Alberta announced it is establishing an expert panel chaired by economist Jack Mintz to review and evaluate the province’s postsecondary institution funding to ensure funding in support of students is used efficiently and effectively. The review will assess factors such as the impact of federal immigration policy changes on institutions, as well as current and alternative funding mechanisms. The panel will also look at higher education funding models across Canada and around the world, while assessing Alberta’s ability to compete on a global level with excellence in higher education. Further appointments to the panel, which the government said will comprise individuals with experience in Alberta’s publicly funded post-secondary system, are expected to be completed by December 31, with the panel’s work starting in 2025 and a report delivered later in the year. Alberta’s Budget 2024 made investments into training for high-demand areas, as well as an estimated $1.4 billion in student supports, and an increase in operating expense funding for postsecondary institutions. Govt. of Alberta

Seven more Ontario schools and boards have joined a lawsuit against tech giants Meta, Snapchat and TikTok for allegedly disrupting student learning and the education system. These schools and boards join four of Ontario's largest school boards that initially launched the suit in March. The lawsuit claims social media products, intentionally designed for compulsive use, have rewired the way children think, behave and learn, and educators within these boards/schools have been left to manage the fallout. The mix of public and Catholic school boards and private schools in both urban and rural regions of Ontario demonstrate this is a universal issue that affects those from diverse cultural, religious and socio-economic backgrounds, the plaintiffs said. “The addictive properties of the products designed by social media giants have compromised all students' ability to learn, disrupted classrooms and created a student population that suffers from increasing mental health harms.” As a result, social media companies have forced school boards to divert significant resources including personnel, hours, funds and attention to combat the growing crisis caused by their products. The lawsuit, led by Toronto-based boutique law firm Neinstein LLP, calls on social media giants to redesign their products to keep students safe. The lawsuit also seeks compensation on behalf of school boards for the losses related to tackling the crisis social media has created in schools. Schools for Media Change

The Government of Australia will legislate for a ban on social media for children under 16, Prime Minister Anthony Albanese announced, in what the government calls a world-leading package of measures that could become law late next year. Australia is trialing an age-verification system to assist in blocking children from accessing social media platforms, as part of a range of measures that include some of the toughest controls on social media use imposed by any country to date. Albanese cited the risks to physical and mental health of children from excessive social media use, in particular the risks to girls from harmful depictions of body image and misogynist content aimed at boys. A number of countries have already vowed to curb social media use by children through legislation, although Australia's policy is one of the most stringent. No jurisdiction so far has tried using age-verification methods like biometrics or government identification to enforce a social media age cut-off, two of the methods being trialed in Australia. Australia's other world-first proposals are the highest age limit set by any country, no exemption for parental consent and no exemption for pre-existing accounts. Platforms impacted would include Meta Platforms' Instagram and Facebook, as well as Bytedance's TikTok and Elon Musk's X. Reuters

Calgary- and Winnipeg-based fintech startup Neo Financial is No. 1 in Deloitte’s 2024 Technology Fast 50 rankings. Deloitte’s Technology Fast 50 recognizes Canada’s 50 fastest-growing technology companies, based on the highest revenue growth percentage over the past three years. According to Deloitte, the average three-year revenue growth of the Technology Fast 50 winners this year is 3,559 percent, almost 60 percent higher than the average rate in 2023. Neo Financial, which topped a $1-billion valuation in 2022, achieved 154,022-percent revenue growth between 2020 and 2023, more than nine times that of the runner-up PurposeMed, a Calgary-based virtual care startup. Neo Financial was founded in 2019 by the creators of SkipTheDishes. The startup claims to have over one million Canadians using its spending, saving, investing and mortgage products. Toronto-based TealBook, which offers a supplier data platform, placed third. Deloitte

The Government of Canada and the Government of Prince Edward Island broke ground on the $5-million BioAccelerator, a unique multi-function facility with 60,000 sq. ft. of biomanufacturing space that will provide facilities and services to researchers, entrepreneurs and bioscience-based companies. The BioAccelerator is the largest single investment in economic development infrastructure in P.E.I.'s history. Spearheaded by the PEI BioAlliance, the BioAccelerator will support the growth of the PEI bioscience cluster, enhance Canadian pandemic preparedness, and advance Atlantic Canada’s position as a national centre of expertise in bio-based product development and biomanufacturing. The BioAccelerator will be operated by the PEI BioAlliance, with construction expected to be completed in the fall of 2026. Located in the BioCommons Research Park in Charlottetown, the BioAccelerator builds upon recent public and private sector investments such as BIOVECTRA’s first-in-Canada mRNA vaccine manufacturing facility, the Canadian Alliance for Skills and Training in Life Sciences (CASTL), and the Bioscience Manufacturing Incubator. Tenants in the BioAccelerator will include early-stage and small and medium-sized enterprises from Atlantic Canada and international locations. The BioAccelerator will host the facilities and expertise of the National Research Council of Canada’s atypical fermentation labs, CASTL’s national headquarters, and an expanded lead training facility. P.E.I.’s bioscience sector now includes 60 bioscience companies earning over $600 million annually in sales, making bioscience the second-largest industry in the province.  PEI BioAlliance

The Saskatchewan Indian Institute of Technologies (SIIT) received 1,800 aircraft components – valued at $6.2 million in total – from Bell Textron Canada Limited. The components include machined parts, sheet metal, acrylic plastics, electrical and mechanical parts, and hardware. The donation will enhance SIIT’s Aircraft Maintenance Engineering program, providing students with access to a diverse range of aircraft components for hands-on training and practical experience. The donated components were delivered to SIIT in two shipments in October 2024 to ensure SIIT has timely access to the components, facilitating seamless integration into its training programs. Bell Textron Canada

Toronto-based EV battery-recycling firm Li-Cycle announced an agreement for a loan of up to US$475 million from the U.S. Department of Energy (DOE), an increase of US$100 million from DOE’s original commitment. This is the first DOE loan facility to be finalized for a lithium-ion battery materials recycling company, Li-Cycle said. The agreement follows the DOE’s detailed technical, market, financial and legal due diligence. The loan is expected to support the development and construction restart of Li-Cycle’s flagship Rochester Hub battery-recycling project in upstate New York. Li-Cycle estimates the total capital cost of the Rochester Hub project through to mechanical completion to be approximately $960 million, of which the remaining estimated cost to complete the project is approximately $487 million. LiCycle

Belgium-based Umicore has decided to pause construction of a new battery materials plant in Loyalist, Ontario. The decision was made in close alignment with Umicore’s customers, the company said. The long-term supply agreement with U.S.-based EV battery manufacturer AESC for high-nickel cathode active materials for the North American market will be served from Umicore’s plant in Cheonan, Korea. Umicore has not drawn on federal and Ontario government financial incentives totalling nearly $1 billion for the Loyalist plant. Umicore said it will keep a core team on site in Canada and, in the event of restarting construction of the Loyalist plant, Umicore will continue to have access to those incentives under the same conditions including employment commitments, the company said. Umicore also said it intends to resize the workforce predominantly in its battery materials production plant in Jiangmen, China. While global EV vehicle sales are slower than expected, there is also uncertainty about whether North America’s transition to electric vehicles will slow under U.S. president-elect Donald Trump, who has vowed to roll back green manufacturing incentives and levy universal tariffs of up to 20 percent on imports to the U.S. Umicore

Toronto-based Dye & Durham shares fell after Canada's Competition Bureau said it would investigate the company – which offers software for legal practitioners working in real estate – for alleged anti-competitive conduct. The Bureau said it has obtained a court order from the federal court to gather information and advance its investigation into the matter. The order will require Dye & Durham to comply with any requests as the Bureau investigates whether the company is engaging in conduct contrary to the restrictive trade practices, including abuse of a dominant position. Dye & Durham also is facing shareholder dissent over claims that the company has been irresponsibly spending money on acquisitions instead of focusing on reducing its high debt load. The Wall Street Journal

The U.S. Federal Energy Regulatory Commission (FERC) rejected a special deal that would have allowed an Amazon.com Inc. data centre to use more power from an adjacent nuclear power plant. FERC’s decision deals a blow to the efforts by big technology companies to feed their power-hungry data centres with electricity from generators located next to their facilities. FERC commissioners voted 2-1 against the proposal that would have increased the amount of power supplied to an Amazon data centre adjacent to the Susquehanna nuclear facility owned by Talen Energy Corp. The commissioners said the plan, which was an amendment filed by the regional grid operator on behalf of the parties, didn’t adequately prove why the special contract should be allowed under federal rules. The plan would set a precedent and the issues should be reviewed more closely, they said. In March, Amazon Web Services paid Talen US$650 million for a 960-megawatt data centre campus adjacent to the Susquehanna nuclear plant in Pennsylvania and signed a long-term agreement to buy power from the plant. BNN Bloomberg

London, U.K.-based BP is ending 18 early-stage hydrogen projects, a move that could have a negative impact on the nascent industry. The decision, along with the sale of the company’s U.S. onshore wind power operations, will save BP $200 million annually and help boost its bottom line. BP’s venture capital arm has invested in several green hydrogen startups, including Electric Hydrogen and Advanced Ionics. Earlier this year, BP said it would develop more than 10 hydrogen projects in the U.S., Europe and Australia. Now BP is scaling back those plans, saying it will develop between five and 10 yet-to-be-identified projects. The hydrogen industry has looked to oil and gas companies as one of the best routes to growth. Many companies already make hydrogen at their refineries from natural gas, making them logical customers for startups developing electrolyzers, which can produce hydrogen using water and electricity. Plus, oil and gas companies have decades of experience developing large infrastructure projects of the sort that will be required if hydrogen is to make a dent in industrial emissions. TechCrunch

European Union regulators are poised to fine Apple, which would be the first penalty under the EU’s new digital antitrust legislation aimed at Big Tech, sources told Reuters. Antitrust regulators charged in June that the iPhone maker had breached the bloc's tech rules. The charge against Apple was the first by the European Commission under its Digital Markets Act (DMA). The legislation, which came into force earlier this year, requires Apple to allow users to set the default web browser of their choice on iPads, permit alternative app stores on its operating system, and allow headphones and smart pens to access iPad OS features. This latest news comes after the Commission fined Apple 1.84 billion euros ($2.01 billion) in March for thwarting competition from music streaming rivals via restrictions on its App Store. Apple also faces an investigation into new fees imposed on app developers. DMA violations could result in a fine of as much as 10 percent of a company's global annual turnover. Reuters

Japanese scientists launched a satellite made from wood into orbit on a SpaceX rocket. The first-ever wooden satellite, called LignoSat (after the Latin for wood) will stay in orbit for six months to see whether wood can hold up in space’s harsh conditions. Its performance will suggest whether it’ll be possible to build wooden houses on the Moon and Mars. Kyoto University researchers and timber company Sumitomo Forestry started working together on the space wood project in 2020. They conducted space exposure tests from the International Space Station over more than 240 days in 2022. They settled on using Hoonoki, a type of Magnolia wood, for its high workability, dimensional stability and overall strength. The wood is often used to make traditional sword sheaths in Japan because it’s resistant to shattering. The lack of water or oxygen in space protects the wood satellite from fire or decay, according to the team from Kyoto University. They’ll also test how effective the wood is at protecting semiconductors from space radiation. The Verge

VC, PRIVATE INVESTMENT & ACQUISITIONS

The Canada Pension Plan Investment Board (CPP Investments) invested approximately US$515 million to acquire a 24.5-percent stake in Keywords Studios, an international video games service provider based in Ireland. EQT and Temasek joined in the go-private transaction. Keywords builds, tests and markets games for other publishers, like Gearbox Software’s Borderlands. CPP Investments has previously backed gaming toolmaker Unity and studio owner Embracer. Another Canadian institutional investor, the Ontario Teachers’ Pension Plan, has funded Fortnite maker Epic Games. CPP Investments

San Francisco-based Physical Intelligence, an artificial intelligence startup seeking to create brains for a wide variety of robots, raised US$400 million in financing from major investors. The round was led by Jeff Bezos, Amazon’s executive chairman, and the venture capital firms Thrive Capital and Lux Capital. Other investors include OpenAI, Redpoint Ventures and Bond. The fundraising valued the company at about $2 billion, not including the new investments. The company wants to make foundational software that would work for any robot, instead of the traditional approach of creating software for specific machines and specific tasks. In a recent paper, Physical Intelligence showed how its software – called π0, or pi-zero – enabled robots to fold laundry, clear a table, flatten a box and more. The New York Times

Calgary- and Winnipeg-based fintech Neo Financial secured $360 million in a Series D financing round that consisted of $110 million of equity and $250 million of debt. The round included investments from renowned Canadian founders and entrepreneurs, including Tobi Lütke (CEO and founder of Shopify), Stewart Butterfield (founder and former CEO of Slack), David Baszucki (investor and CEO of Roblox), and Mike Wessinger (co-founder and Executive Chair of PointClickCare). Existing investors, including Valar Ventures, Golden Ventures, Afore Capital, and Thomvest Ventures, also participated. BusinessWire

Calgary-based private equity capital manager Longbow Capital announced the initial closing of its Longbow Energy Transition Fund II, with $150 million in capital commitments from leading institutional and family office investors. BDC Capital, TD Bank Group and Caterpillar Ventures are anchor investors in the fund. The fund has a North American mandate to invest in businesses expected to benefit from the momentum behind the energy transition, with a focus on companies that help lower carbon emissions through efficient and cost effective solutions. The fund has completed one investment to date in Houston, Texas-based VoltaGrid, a rapidly growing, low- carbon, modular power generation business serving the energy sector, mining, utilities and data centres. Longbow currently has about $1.5 billion worth of assets under administration. Longbow Capital

A group of prominent Canadian fintech founders launched Exit North Ventures, a new venture capital fund. This $20-million fund is dedicated to supporting early-stage Canadian fintech companies by offering seed investments between $250,000 and $1 million. Exit North Ventures unites six founders who have successfully launched, scaled and sold financial services companies across Canada, collectively generating over $1 billion in returns for investors and shareholders. The venture partner team includes Michael Garrity (Financeit), Gary Schwartz (Impact Mobile), Katherine Gregory (Paradigm Quest), Catherine Dahl (Beanworks), Ali Metel (LendCare), and Norm Cappell (SAVVYY). Leading Exit North Ventures is Tal Schwartz, a prominent figure in Canada’s fintech community. Schwartz, known for founding the Canadian Fintech Newsletter and holding a leadership role in the Canadian Lenders Association, has cultivated a community dedicated to innovation within financial services. Exit North Ventures focuses on business-facing technologies in lending, insurance, payments and capital markets. Fintech.ca

Toronto-based AI startup Workorb secured $2.6 million in seed funding to propel its automation solutions for the architecture, engineering and construction industries. The round was led by Metavallon Ventures, a Greece-based venture capital firm, with additional participation from Freedom of Innovation Ventures and other undisclosed investors. Workorb’s automation platform is designed to alleviate the burden of non-billable, labor-intensive tasks, such as the proposal drafting process and extracting compliance requirements from large documents, that can often consume valuable time and resources. The platform uses AI to also organize and manage client data, providing teams with an efficient way to monitor communication, track project status and respond promptly to client inquiries. Scholars International Institute of Technology

The Government of Alberta dismissed the entire 10-member board of the Alberta Investment Management Corporation (AIMCo) after seeing significant increases in operating costs, management fees and staffing without a corresponding increase in return on investment. From 2019 to 2023, AIMCo’s third-party management fees have increased by 96 percent, the number of employees increased by 29 percent and salary and benefit costs increased by 71 percent, the government said. The public sector pension fund, which manages around $169 billion in assets, posted an $8.9-billion return in 2023,1.4 percentage points below target. A new board chair will be appointed within 30 days. All board appointments have been rescinded and a new board will be established after a permanent chair is named. The government also dismissed AIMCo CEO Evan Siddall and three other executives. In the interim, Nate Horner, president of the Treasury Board and minister of Finance, was appointed the sole director and chair for AIMCo, effective immediately. The Alberta government appointed longtime provincial bureaucrat Ray Gilmour as interim CEO of AIMCo. He resigned as the government’s deputy minster of Executive Council to take the role. Govt. of Alberta

Companies are making progress on the transition to a low-carbon future in Canada but greater action is needed to support global efforts to limit temperature rise to 1.5 °C in accordance with the Paris Agreement on climate change, according to a report by Climate Engagement Canada (CEC). CEC is growing investor-led engagement initiatives with 51 institutional investors representing almost $7 trillion, focused on driving Canada’s business transition to net zero. Forty-one “Focus List” companies represent many of Canada’s top reporting or estimated emitters and/or corporate issuers with a significant opportunity to contribute to the transition to a low-carbon future in Canada. CEC’s Net Zero Benchmark provides a set of detailed and comparative common standards to support corporate issuers’ progress toward aligning with the Paris Agreement. According to the CEC’s report, notable progress in 2024 includes nine new companies disclosing transition plans detailing the actions they plan to take to achieve their greenhouse gas emissions-reduction targets, seven new companies performing scenario analysis, and formal board oversight of climate change across all 41 companies. However, many companies have yet to set adequately ambitious or comprehensive emissions-reduction targets in accordance with their net zero commitments, and companies’ decarbonization plans so far systemically fail to acknowledge their social impacts, CEC said. Climate Engagement Canada

Vancouver-based digital health care company WELL Health Technologies Corp. announced an agreement to acquire the Canadian clinical assets of Jack Nathan Medical Corp. Financial terms weren’t disclosed. The acquisition includes a network of 16 owned and operated primary care clinics across 13 Canadian cities and a clinic licensing business with 62 licensee clinics, which will become the model for WELL's new Affiliate Clinic business stream. The 16 clinics generated over $10 million in revenue in the past 12 months, while the licensing business generated over $2.2 million in annual revenue. On closing of the transaction, WELL will acquire Jack Nathan's rights to operate medical clinics in Walmart Canada stores, with the goal of expanding WELL's owned and operated network and affiliate managed clinics within Walmart Canada's footprint of over 400 Canadian locations. WELL Health Technologies

Toronto-based Manzil, which offers Halal-certified investment and home financing solutions designed for Muslims, announced an agreement to purchase U.S.-based fintech company Aghaz Investments. Manzil said this acquisition strengthens its position in North America and marks the company’s official entry into the U.S. market through Aghaz’s technology platform and registration with the U.S. Securities and Exchange Commission. Aghaz has built a robust platform designed to meet the financial needs of Muslim investors in the U.S., offering a range of halal investment products that align with Islamic principles. As part of the acquisition, Khurram Agha, founder and CEO of Aghaz, will take on the role of head of Manzil Invest USA. EIN Presswire

Waterloo, Ont.-based Sandvine Corporation filed for bankruptcy protection in Canada and the U.S., citing an expected 50-percent drop in revenue compared with 2023 after the U.S. Department of Commerce put Sandvine on its entity list, which flags foreign companies deemed national security threats. Sandvine’s technology monitors computer networks to ensure they run smoothly. The Commerce department alleged Sandvine provide “mass web-monitoring and censorship” technology to the Egyptian government. The company was removed from the blacklist last month after making changes to its corporate governance and business practices, including exiting 32 countries it deemed “non-democratic.” However, being put on the blacklist cost the company key clients and compelled it to leave lucrative markets that together accounted for about 45 per cent of the firm’s revenue last year, court filings show. Sandvine owes its lenders $431.8 million in principal secured debt. A group of debt holders has taken control of the company from U.S. private equity firm Francisco Partners. BusinessWire

REPORTS & POLICIES

Natural Resources Canada lacks sufficient governance to assess the national Critical Minerals Strategy’s effectiveness: Commissioner of the Environment

Natural Resources Canada (NRCan) lacks sufficient governance and robust risk analysis to support achieving the Canadian Critical Minerals Strategy’s objectives of advancing reconciliation with Indigenous peoples and promoting climate action and environmental protection, according to a new report by Canada’s Commissioner of the Environment and Sustainable Development.

Significantly increasing the supply of critical minerals is essential to produce technologies that support the transition to a net‑zero economy, such as batteries for electric vehicles, wind turbines and solar panels.

In 2022, the federal budget allocated up to $3.8 billion over eight years to support the implementation of the Canadian Critical Minerals Strategy. 

However, NRCan did not do enough analysis to measure the benefits of increasing Canada’s supply of critical minerals versus the expected climate and environmental risks and impacts, Environment Commissioner Jerry DeMarco said in his report.

The department also didn’t have a process to track and monitor risks to determine the effectiveness of mitigation measures throughout the implementation of the Canadian Critical Minerals Strategy.

NRCan engaged with Indigenous peoples in developing the strategy and the department had begun work to inform a plan for Indigenous engagement on NRCan-led critical mineral programs.

“Moving forward, Natural Resources Canada will have to consolidate information and fully assess the strategy’s risks and impacts so that it can flag and monitor impacts to help maximize the strategy’s benefits while minimizing any adverse effects from increased mining activities,” DeMarco said.

Increased mining activities will result in adverse environmental effects and increase greenhouse gas emissions, which could compromise Canada’s ability to meet its commitments to climate action, biodiversity and Indigenous reconciliation, he noted.

This could include damages to Canada’s globally significant carbon sinks, such as forests, wetlands and peatlands, which could release additional carbon and eliminate or reduce their potential to remove carbon dioxide from the atmosphere.

“Not effectively identifying and managing risks could result in progress toward technology in support of the transition to net-zero emissions being offset by adverse effects on climate, the environment, biodiversity and future generations,” DeMarco said.

Unless it is strengthened, NRCan’s Critical Minerals Geoscience and Data Initiative is unlikely to provide a complete picture of areas with critical mineral opportunities with the greatest potential benefits and the lowest environmental and social impacts, he said.

His report makes several recommendations, including:

• NRCan should request the Impact Assessment Agency of Canada to examine the merit and feasibility of using regional and strategic assessments to understand the effects of future activities carried out in areas rich in critical minerals. This includes cumulative effects that fall within federal jurisdiction, as well as the impact of the Canadian Critical Minerals Strategy and its contribution to Canada’s international and domestic environmental commitments.
• NRCan should work with relevant federal departments and agencies to complete a national-level analysis of the expected net impacts of the strategy on domestic greenhouse gas emissions and on Canada’s 2030 and 2050 climate goals.
• NRCan should publicly report on the expected effects and benefits, along with limitations and uncertainties, that new mining activities and related infrastructure developments will have on greenhouse gas emissions, the environment and biodiversity and their contribution to Canada’s commitments related to climate change and biodiversity.
• NRCan should work with relevant federal departments and agencies to improve the indicators and targets for measuring the Canadian Critical Minerals Strategy’s climate impacts, environmental performance and Indigenous reconciliation. The department should use the indicators to inform actions to address challenges and risks related to achieving the climate, environmental and Indigenous objectives of the strategy.
• NRCan should review its planned activities under the Critical Minerals Geoscience and Data Initiative to ensure research activities are aligned with and directly contribute to the initiative’s expected results of mapping environmental, social and governance considerations and mineral potential models, including assessing the critical mineral potential from unconventional sources, such as mine waste by-products.
• NRCan should examine options and establish an information technology–based solution to enable the Critical Minerals Centre of Excellence to gather and manage the information and data from other federal departments and agencies, including Environment and Climate Change Canada and the Impact Assessment Agency of Canada, to inform decisions on the Canadian Critical Minerals Strategy’s implementation.
• NRCan should complete and implement a plan for ongoing Indigenous engagement on the Canadian Critical Minerals Strategy and on NRCan-led critical mineral programs. The department should ensure that the plan is designed to encourage early and meaningful dialogue with Indigenous groups regarding critical mineral programs, funding opportunities and risks that may affect their communities.

NRCan, in its responses to DeMarco’s recommendations, agreed with and committed to implement most of them.

However, the department pointed out that relatively few critical minerals projects fall within federal jurisdiction, so the Canadian Critical Minerals Strategy alone cannot account for expected national-level net impacts of critical minerals development on domestic greenhouse gas emissions.

NRCan said the strategy was “purposefully and appropriately designed” to respect Canada’s shared jurisdiction for mining, including the provinces and territories’ primary role for conducting impact assessments under their respective relevant legislation. Commissioner of the Environment and Sustainable Development

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Federal government orders TikTok Technology Canada to cease operations due to national security concerns

François-Philippe Champagne, minister of Innovation, Science and Industry, announced that the federal government has ordered the Canadian business carried on by TikTok Technology Canada Inc. to cease operating, following a national review under the Canada Investment Act.

“The government is taking action to address the specific national security risks related to ByteDance Ltd.’s operations in Canada through the establishment of TikTok Technology Canada, Inc.,” Champagne said.

“The decision was based on the information and evidence collected over the course of the review and on the advice of Canada’s security and intelligence community and other government partners,” he said.

Byte Dance is TikTok’s parent company, based in Beijing. Several countries that banned TikTok have assessed Byte Dance as a security threat and have accused the company of gathering excessive data on TikTok users and being a vector for views favourable to China’s government.

U.S. President Joe Biden has signed into law a bill that could lead to TikTok being banned in the U.S., if ByteDance doesn’t sell it within a year. That bill may not survive under president-elect Donald Trump, given his support from tech entrepreneur Elon Musk who has close ties to China, including the Tesla-operated Gigafactory Shanghai auto manufacturing plant in Shanghai.

In Canada, the federal government is not blocking Canadians’ access to the TikTok application or their ability to create content, Champagne said, noting that the decision to use a social media application or platform is a personal choice.

He said it is important for Canadians to adopt good cyber security practices and assess the possible risks of using social media platforms and applications, including how their information is likely to be protected, managed, used and shared by foreign actors, as well as to be aware of which country’s laws apply.

The government encourages Canadians to consult the guidance issued by Communications Security Establishment Canada’s Canadian Centre for Cyber Security to help them assess these risks.

TikTok said in a statement: “Shutting down TikTok’s Canadian offices and destroying hundreds of well-paying local jobs is not in anyone's best interest, and today's shutdown order will do just that.”

“We will challenge this order in court. The TikTok platform will remain available for creators to find an audience, explore new interests and for businesses to thrive.” Innovation, Science and Economic Development

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Providing workers with effective re-skilling opportunities is crucial for energy transition, new sectors’ growth and economic stability: Future Skills Centre report

Green-related skills and knowledge are growing in significance and becoming widespread across many sectors and occupations, requiring more workers to upskill by building upon their existing competencies, according to a report by the Future Skills Centre (FSC).

Non-technical skills, like problem solving and communication, will continue to be important as a complement to these green-related skills and are key to ensuring individuals can take advantage of new opportunities in the transition to a net-zero economy, the report says.

The transition to a low-carbon economy will necessitate substantial adjustments across and within many sectors, resulting in uncertainty and potential inequities for regions and individuals, the report notes.

This shift is poised to significantly affect Canada’s labour market by altering employment levels and the skill composition of jobs.

“In the absence of strategic interventions across a range of disciplines, Canada will struggle to minimize the negative impacts on workers and adequately prepare its labour force to seize new economic opportunities,” the report says.

Education and training institutes need to overcome capacity constraints and integrate green skills and knowledge into a wide range of existing curricula and programs, according to the report.

Effective skills and workforce development policies that address the needs and challenges of individuals, sectors and regions can mitigate inequities and make sure that everyone has equitable access to new opportunities that arise from the transition.

The report was written by: Steven Tobin, strategic advisor; Laura McDonough, associate director of knowledge mobilization & insights; and Alex Stephens, associate director of research and evaluation – all with FSC.

The impacts of the transition to a net-zero economy will vary considerably by industry and region, their report says.

For instance, carbon-emitting sectors like oil and gas will face headwinds in the transition to net zero, which will acutely affect regions like Alberta, Atlantic Canada and Saskatchewan, as well as Northern Canada where there is a high concentration of mining and resource extraction activity.

Similarly, in Ontario the automobile sector is likely to undergo considerable transformation as manufacturers move away from internal combustion engines.

Rural and remote communities and regions with less economic diversity, and other communities reliant on a small number of industries, could experience economic and social disruption if measures are not put in place to support the transition for workers and communities and generate new economic and employment opportunities, the report says.

Labour market and skills development strategies will need to be developed in line with local economic development strategies, according to the report. “To that end, better understanding the changing skill requirements of existing and new jobs is paramount to the success of these industries but will also be central to supporting workers through this transition.”

Despite widespread concern about job loss, FSC’s research has found that decarbonization is expected to have a minimal impact on employment across most sectors. In fact, employment under a low-carbon scenario is anticipated to be higher than that of the high-carbon scenario – but will require different skills.

For example, FSC’s “Hiring green” research project found that in 2023 the largest number of job postings requiring green skills are found in the professional services sector. The roles requiring green skills are wide ranging, from administrative officers and civil and electrical engineers, to corporate sales and business managers.

Similarly, FSC’s research on the skill needs for workers in Ontario’s growing zero-emissions vehicles sector found that manufacturing zero-emissions vehicles in Ontario’s automotive sector will require existing workers to upskill rather than undergo full retraining. The research highlighted that the upskilling process is crucial to fill emerging roles.

However, postsecondary institutions are hindered by a lack of agility, according to FSC’s report. Many of the stakeholders interviewed described the process of updating courses or programs (in order to include climate change and sustainability content) as time consuming and bureaucratic. 

Similarly, FSC’s project focused on upskilling for Canada’s climate transition found that despite an increase in climate-related programming among postsecondary institutions and other training service providers, few unified standards exist to support such programs. 

“A national approach to climate action-related training across Canadian jurisdictions could address these gaps,” FSC’s report says.

Improving both recognition and transferability of qualifications would ensure competencies are commonly understood and ease their application to sector-specific curriculum development and training programs of optimal or short duration. 

“Providing workers with effective re-skilling opportunities is crucial not only for individual career prospects but also for fostering community growth, enabling new sectors’ growth and contributing to economic stability and sustainable growth,” the report says. Future Skills Centre

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Federal government not moving fast enough to meet 2030 greenhouse gas emissions reduction target: Commissioner of the Environment report

Measures implemented in Canada’s 2030 Emissions Reduction Plan remain insufficient to meet Canada’s target of reducing greenhouse gas emissions by 40 percent to 45 percent below 2005 levels by 2030, according to a new report by Canada’s Commissioner of the Environment and Sustainable Development.

 According to the federal government’s data for 2022, emissions have been reduced by 7.1 percent since 2005. This does not include accounting contributions from land use, land-use change and the forestry sector.

“Overall, the federal government had advanced a variety of mitigation measures to support progress towards a net-zero transition but had still not made sufficient progress to reduce greenhouse gas emissions to meet its 2030 target,” Environment Commissioner Jerry DeMarco’s report says. Only six years remain for the majority of reductions to take place.

This is the second report by DeMarco’s office under the Canadian Net-Zero Emissions Accountability Act, and the report focuses on the progress made to date in implementing climate change mitigation measures and his office's related recommendations and on the transparency of the federal government’s first progress report under the Act. 

The report looked at 20 measures from the government’s 2030 Emissions Reduction Plan and found that “measures were being implemented too slowly to meet their intended emissions reductions in a timely manner.”

Of the 20 measures audited that were being developed or implemented by the federal government, only nine were on track, nine were facing challenges (including implementing Canada’s Small Modular Reactor Plan), and two had significant barriers such as facing delays in meeting milestones (including the proposed cap on oil and gas industry emissions).

Federal agencies' estimates of expected emissions reductions from their measures were often overly optimistic and assessments of the value for money they delivered to Canadians were varied, the report says.

However, the implementation of some measures was on track – for example, in the delivery of funding for zero‑emission vehicles.

DeMarco’s report also assessed federal organizations’ progress on implementing 41 recommendations from seven reports on climate change that his office has published since 2021.

Federal organizations have made progress in implementing actions to advance recommendations in those reports, his report says. “However, they had missed their set deadlines for some recommendations.”

For the 41 recommendations, the report found that federal organizations had undertaken actions to implement 16 recommendations, 22 recommendations were in progress, and three had not been implemented.

Environment and Climate Change Canada issued its first progress report in December 2023 as required by the Canadian Net-Zero Emissions Accountability Act.

The department could have improved reporting and enhanced transparency by better portraying progress made on measures and by providing more detailed information on the elements included in the department’s national emissions projections, DeMarco’s report said.

DeMarco said his office’s body of work on Canada’s commitments to reduce greenhouse gas emissions has indicated that the stakes grow ever higher each year and that the window of opportunity to reduce emissions and meet the 2030 and 2050 targets is rapidly closing.

“The federal government must pick up the pace in implementing effective measures,” he said.

The report made two recommendations, including:

• To improve the timeliness and effectiveness of the implementation of federal climate change measures to reduce emissions, Environment and Climate Change Canada, together with responsible federal organizations, should:

             -- increase the reliability of greenhouse gas emissions reduction estimates for each measure so that budgetary,    planning and delivery decisions are based on better information

             --  establish a government-wide approach and guidance for value-for-money assessments of emissions reduction measures and publish the value of emissions reductions for individual measures

               -- collect and report disaggregated data that tracks access to and delivery of measures for the identified group.

• To improve the transparency of future progress and associated projection reports, Environment and Climate Change Canada should:

               -- in collaboration with other federal organizations, provide consistent and comparable updates on the implementation of federal measures, including expected deadlines for subsequent implementation milestones, and results achieved.

                -- in collaboration with other federal organizations, report progress on a comprehensive set of key sector-level secondary indicators relevant to emissions reductions.

                 -- provide more detailed information on the assumptions of federal measures included in the modelling, such as the assumed stringency and coverage.

                 -- perform uncertainty analysis for the projections that test the emissions pathway with key variables, such as those related to technology and timing of new infrastructure.

In a separate new report, DeMarco found that overall, Natural Resources Canada, Environment and Climate Change Canada, Crown-Indigenous Relations and Northern Affairs Canada, and Indigenous Services Canada contributed to meeting the government’s clean power generation and energy efficiency targets in the 2019-2022 Federal Sustainable Development Strategy.

However, their contribution was limited because they had not fully implemented their departmental plans, his report says.

Also, gaps in information in progress reports made it unclear to what extent the results achieved contributed to the federal targets.

In addition, reported departmental progress did not effectively tell how federal investments directly contributed to closing the gap of meeting the 90-percent clean power generation target by 2030, the report notes.

The implementation of federal measures led to around 100 petajoules of total annual energy savings towards a target of 600 petajoules of total annual savings by 2030. “Canada is unlikely to meet this target by 2030 unless more aggressive action is undertaken,” DeMarco’s report says. Commissioner of the Environment and Sustainable Development

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Canada needs to strengthen carbon markets to protect industrial competitiveness as industries decarbonize: Commission on Carbon Competitiveness

Federal and provincial governments should strengthen Canada’s carbon markets to protect industrial competitiveness as the country’s industries decarbonize, according to two reports by the Commission on Carbon Competitiveness.

At the same time, Canada should explore coordinated carbon charges and carbon standards on imports with the U.S., the country’s largest trading partner, the reports said.

These are among the key recommendations contained in the two reports from the Commission on Carbon Competitiveness, a group of leading Canadian and U.S. experts in economics, climate policy, technology and trade law. The reports follow more than a year of study, analysis and consultation with Canadian industry leaders.

“The Commission on Carbon Competitiveness is thinking about the critical question: how do we ensure that our industries are at the forefront of innovation and competitiveness in the global green markets of the future?” Aaron Cosbey, the Commission’s chair and senior associate with the International Institute for Sustainable Development, said in a statement.

“It’s a question our key trading partners are taking very seriously, and we can either play the game or get left behind,” Cosbey said.

The Commission’s first report, Assessment of Carbon Competitiveness in Canada’s Heavy Industrial Sectors, identifies the unique competitiveness challenges faced by specific Canadian industries as they work to reduce their emissions.

Getting policy right is particularly important in Canada’s heavy industrial sectors, the report said. The nine sectors identified produce commodities – ranging from fertilizer to building materials – that are essential to quality of life.

The sectors are conventional oil and gas extraction, oilsands extraction, petroleum refining, cement and concrete, iron and steel, basic chemicals, agricultural chemicals, pulp and paper, and aluminum. These sectors constituted more than one-third of Canada’s exports and greenhouse gas emissions and almost 10 percent of Canada’s GDP in 2022, according to the report.

However, the status quo is not a viable option for any of these sectors, the report noted. "All of them will need to lower their carbon footprints if they hope to compete globally and attract investment in a world that increasingly cares about the carbon embedded in traded goods."

The second report, Policies to Achieve Industrial Decarbonization in Sectors Facing Competitiveness Risks, makes recommendations to policymakers on how best to support industrial decarbonization, while ensuring that production doesn’t leave Canada for jurisdictions with less ambitious climate policies – a phenomenon called carbon leakage.

Regardless of which carbon leakage prevention tool is used, large-emitter trading systems (LETS) should remain the foundational policy for achieving industrial decarbonization, the report says.

LETS are the lowest-cost and most flexible way to decarbonize heavy industry. Alternatives to LETS would, in most cases, make securing emissions reductions more expensive: regulations impose higher costs on industry and broad subsidies impose higher costs on the public, the report said.

The Commission’s recommendations are:

• That federal and provincial governments work closely together on the rules for Canada’s industrial carbon markets ahead of the next phase of these programs, beginning in 2027. 
• Design carbon markets to accommodate industrial sectors that are at high risk of carbon leakage. Not all sectors fit that bill. 
• Restructure carbon markets to ensure a sufficient demand for carbon credits, in order to drive investment in decarbonization.
• Policymakers should look at supporting strong carbon markets by imposing border carbon adjustments on imported goods, leveling the playing field between decarbonizing Canadian industries and competitors in less regulated jurisdictions.
• Implementing border carbon adjustments will be complex and Canada would struggle to adopt them unilaterally. Cooperation, particularly with the U.S., will be essential.
• Consider emissions-intensity standards, whereby Canada and the U.S. would agree that products above specified levels of embodied carbon emissions simply can’t be imported.
• That the federal government create a high-level task force on carbon competitiveness, with a focus on coordination with the U.S. 
• Canada should also use its presidency of the G7 in 2025 to advance international cooperation on border carbon adjustments and emissions intensity standards.
• That federal and provincial governments should facilitate sector-by-sector decarbonization roadmaps in partnership with industry. The Commission’s analysis shows that each sector’s competitiveness and decarbonization needs are different and that each requires a tailored plan.

“We have a critical opportunity to help Canadian industries reduce emissions while at the same time protecting the economic benefits that industry delivers, especially good-paying jobs for Canadians,” said Michael Bernstein, vice-chair of the Commission on Carbon Competitiveness and executive director of Clean Prosperity.

“To keep Canadian industry competitive in a decarbonizing world, we’ll need to strengthen Canada’s carbon markets and cooperate closely with the United States,” Bernstein said.

The Commission on Carbon Competitiveness report was released prior to the U.S. federal election.

So the report didn’t address whether a U.S. trade-protectionist administration led by president-elect Donald Trump, who has threatened to impose universal 10-pecent to 20-percent tariffs on all imports to the U.S., and who withdrew the U.S. from the Paris Agreement on climate change, would be supportive of or even interested in efforts to decarbonize U.S. heavy industrial sectors. Clean Prosperity

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Senate committee amends Bloc Québécois-proposed Bill C-282; C. D. Howe Institute testifies to committee against the bill

The proposed federal Bill C-282 would hamper the ability of Canadian sectors that depend on open international trade to expand in global markets, according to the C. D. Howe Institute.

The bill completely ties the hands of Canadian trade negotiators, in a global context where protectionism is on the rise – a trend not expected to improve under president-elect Donald Trump, Daniel Schwanen, senior vice-president of the C. D. Howe Institute, testified before the Senate Standing Committee on Foreign Affairs and International Trade.

“Canada will have to be nimble and creative in responding to this challenge. And that may involve negotiating new trade arrangements or renegotiating and hopefully improving on existing ones,” Schwanen said.

However, Bill-282 would preclude the Canadian government from making market access or tariff concessions for supply-managed products – dairy, eggs and poultry – in future trade deals, in exchange for benefits Canada may obtain from its trading partners.

While dairy and other supply-managed sectors are important, they comprise less than one percent of Canadian GDP and employment, with an outsized impact on some rural communities, Schwanen said.

Other Canadian sectors that depend on open international trade – including the bulk of Canada’s agriculture – generate jobs, government revenues, and exports that are overwhelmingly more important, he added.

“What this bill says is that Canada is willing to unnecessarily hamper the ability of these other sectors to expand in global markets, which is where Canadians can usually generate the highest income opportunities for themselves and for this country.”

Making small concessions in supply-managed sectors was instrumental in securing beneficial trade agreements in the past that are standing Canada in good stead in a more hostile global trading environment, Schwanen noted.

But once Canada says that it will be entirely closed to improvements that the country’s trade partners may seek in their ability to supply Canadian consumers, restaurateurs or food processors, those trade partners – if they are willing to negotiate at all – will likely deny significant opportunities to other Canadian sectors in return, he said.

The spillovers are real, Schwanen said. He pointed out that while Canada was seeking to strengthen its trade relationship with the United Kingdom, following the U.K.’s exit from the European Union, Canada’s unwillingness to “talk cheese” led the U.K. to walk away from those negotiations.

Supply-managed products are very likely to come on the table during the review of the Canada-U.S.-Mexico free trade agreement scheduled in 2026, Schwanen said.

An uncompromising negotiating position is one thing, he said. “But a non-negotiating position regarding a particular economic sector is an entirely different thing. In the event, discussions may revolve around Canada’s need to repeal or modify the legislation, wasting precious time and resources.”

Canada’s economy has not been flourishing recently and the country is currently having a big national debate around how to kick start the economy, Schwanen said. “This bill, if it became law, would make those efforts less likely to succeed.”

The Standing Committee on Foreign Affairs and International Trade voted last week to amend Bill C-282, putting it on a path back to the House of Commons, according to a CBC News story.

Bloc Québécois MP Luc Thériault, who had proposed the bill, and the Bloc's agriculture critic Yves Perron, accused senators of sabotaging the bill.

The amendment to the bill by Peter Harder, vice-chair of the Senate committee, makes C-282’s  prohibition on new concessions inapplicable to pre-existing trade agreements, a renegotiation of an existing deal (like the upcoming review of the Canada-United States-Mexico agreement), or a treaty negotiation already underway when this bill comes into force (such as Canada's ongoing talks with the U.K., where access to the cheese market is a sticking point).

Thériault and Perron said the amendment would nullify the intent of the bill, which they said is unacceptable – especially given the results of the U.S. election, which they believe put Quebec's agricultural model in jeopardy.

Bloc Leader Yves-François Blanchet lashed out at the senators, accusing them of putting a "knife in the back of their own population for the sake of other countries" when they should be focused on protecting fair prices, quality and safety for domestic consumers.

If the full Senate accepts the committee's report and amends C-282, it will be sent back to the House of Commons for re-consideration. C. D. Howe Institute

See also: Ending interprovincial trade barriers: from toilet seats and work boots to professional credentials and labour mobility

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Trump-led U.S. is expected to pressure Canada to export its fresh water, says journalist and documentary maker

Canada will be under pressure by a Donald Trump-led U.S. to export fresh water to alleviate severe water shortages in California and elsewhere in the States, says journalist and documentary maker Michael Harris.

As a presidential candidate, Trump announced he had a plan to alleviate severe water shortages in California, Harris wrote in an analysis published in The Tyee, to which he is a contributing editor.

Trump said British Columbia had “essentially a very large faucet.” The U.S. would have millions of gallons of water pouring down from Canada, he said. “And you turn the faucet and it takes one day to turn it. It’s massive.”

Canada has 20 percent of the world’s total freshwater resources. But what is less well known is that half of that resource is non-renewable, Harris said.

Approximately 60 percent of Canada’s fresh water actually flows north towards the Arctic Ocean and Hudson Bay, away from the southern border of the country where 85 percent of Canada’s population lives, Harris noted.

“The bottom line? With all the fresh water Canada has, the country still has 32 drinking water advisories on First Nations reserves, while the rest of the country faces increasing threats from algae blooms, plastics and toxic chemical pollution.”

Canada solving U.S. water problems is an idea that has been around since the 1950s, Harris pointed out. At that time, the United States Army Corps of Engineers suggested Canadian rivers could be diverted to the U.S.

Decades later, Thomas Kierans, a young Newfoundland engineer, began advocating for a “Grand Canal” created by damming the relatively shallow waters of James Bay to create a freshwater lake. This recycled water would then be pumped south down the 533-kilometre Harricana River. Then, through a series of canals, it would be sent south to the U.S. as well as to the Great Lakes and aquifers in southern Canada.

But Harris said that Trump, in touting his “big faucet” theory of saving California with Canadian water, must have forgotten that B.C. already has a water treaty with the U.S.

The Columbia River Treaty regulates how much water flows across the border and how it is used.

“The fact is, there is no superabundance of water that B.C. can spare to send to the States. As of October 2024, approximately 35 percent of B.C. is experiencing drought conditions, and 35 percent is abnormally dry,” Harris said.

The monumental decision about diverting or selling water needs to be the subject of a vigorous national debate, he said. Water jurisdiction in Canada is shared between the federal and provincial governments, and a water export plan could only come about with the support of both levels of government, he added.

Since 1987, the federal government has had a policy of officially opposing the large-scale export of water. The Canadian government insists that the original free trade deal with the U.S. did not apply to water in its natural state. Nor could the North American Free Trade Agreement (NAFTA) force Canada to export water.

But the impact of the 2018 renegotiation of NAFTA, now known as the Canada-United States-Mexico Agreement, or CUSMA, has yet to be seen – especially with CUSMA due for a review in 2026.

A side letter to CUSMA states that water is not covered by the agreement unless it has entered into commerce by becoming a good or a product (for example bottled water). But, asked Harris, “What happens if bulk water is determined to be a good or a product?”

“The pressure on Canada to export its water will be immense,” he said. “Water has joined gold and oil as a traded commodity on Wall Street. Farmers, hedge funds and municipalities are now able to hedge their bets on future water availability.”

So far, Ottawa and most provinces have banned bulk water exports. In 2013, Parliament passed the Transboundary Waters Protection Act, which banned bulk removal of water from waterways shared with the U.S., “including by pipeline, canal, tunnel, aqueduct or channel.”

But periodically there has been a push to re-examine this in business circles. The argument is made that water is a valuable commodity as a renewable resource.

Harris noted that the University of Calgary’s School of Public Policy published a policy paper almost a decade ago suggesting Canada should “commoditize” its water resources. Author Rhett Larson, a professor of water law and an environmental law expert at Arizona State University, argued that Canada should treat water as it treats gold or oil.

Larson asked: “What is the difference between the water embedded in Canada’s industrial and agricultural exports and raw water exported in bulk tankers and pipelines?”

 “Allowing the world to access Canada’s vast water supplies in a way that is sustainable, responsible, and even profitable for Canada may be part of solving the global water crisis,” Larson maintained.

Given the widespread withdrawal of bulk water for industrial use in Canada, Larson said, “trading partners could make a case that banning exports is an illegal trade barrier because foreign buyers are treated differently.”

Harris wondered if that could leave Canada open to a challenge under the World Trade Organization that could eventually force Canada to make bulk exports.

A global water crisis will leave half of the world’s food production at risk in the next 25 years, according to a report from the Global Commission on the Economics of Water published in October.

Harris noted that on the eve of a landmark United Nations water summit in March 2023, experts predicted that the global demand for fresh water will outstrip supply by 40 percent by the end of the decade.

Concluded Harris: “Any country that turns water into a commodity and peddles it like lumber or soybeans is not merely selling a resource. It is selling its future.” The Tyee

THE GRAPEVINE – News about people, institutions and communities

Geordie Rose, co-founder of Vancouver-based humanoid robot startup Sanctuary AI, is leaving his position as CEO of the company. The board of directors appointed James Wells, chief commercial officer, as interim CEO. In a statement, Sanctuary AI said that Rose “is a pioneering force and visionary in the development of human-like intelligence and humanoid robotics, a category he created. His leadership has established Sanctuary as a leader in this emerging field.” Rose also founded D-Wave and was the CEO (2014-2018) of Kindred. Sanctuary AI

Brampton, Ont.-based MDA Space appointed Guillaume Lavoie as chief financial officer, effective immediately. Lavoie brings over 20 years of financial experience from large publicly traded and privately owned companies. He joins MDA Space from Sofina Foods Inc., a global food manufacturer, where he served as executive vice-president and CFO and played an instrumental role in executing the company’s growth strategy, including the integration of Sofina’s acquisition of a large business in Europe. Lavoie began his career in 2003 at Pratt and Whitney, and then worked for Bombardier Inc., Bombardier Transportation, and automotive supplier Woodbridge Group. MDA Space

Aron Levitz was appointed co-president of Toronto-based Wattpad, a webnovel platform and storytelling community from Webtoon Entertainment Inc. Levitz will lead Wattpad alongside KB Nam, while remaining president of Wattpad Webtoon Studios, a division of Webtoon Entertainment, a subsidiary of South Korea-based conglomerate Naver Corporation. With a new leadership model in place, Wattpad will embark on its next phase of growth after a multi-year strategy to improve its core product and enhance community safety. Both Levitz and Nam will report to Junkoo Kim, the founder and chief executive officer of Webtoon Entertainment. Levitz, an alumnus of BlackBerry and Xtreme Labs, joined Wattpad in 2013 as head of business development. BusinessWire

Dean Skurka, president and CEO of Toronto-based cryptocurrency firm WonderFi, was kidnapped in downtown Toronto during rush hour and held for ransom. The suspects forced Skurka into a vehicle and made a demand for money. He was later located uninjured in Centennial Park in Etobicoke. Skurka was released after a ransom of $1 million was paid electronically, a source close to the investigation said. After his release, Skurka said in an email: "The safety and security of all of WonderFi's employees are paramount. Client funds and data remain safe, and were not impacted by this incident." Toronto police continue their investigation. CBC News

Making Quebec businesses competitive again in light of Canada’s lagging productivity is a matter of “existential” importance, said Government of Québec minister Christopher Skeete. As delegate minister, Skeete took over the innovation portion of Pierre Fitzgibbon’s portfolio after Premier François Legault’s “super minister” resigned as minister of Economy, Innovation and Energy in September. Skeete is now responsible for economic and regional development and small and medium-sized enterprises in addition to innovation. Christine Fréchette, minister of Economy, Innovation and Energy, is in charge of the economy and energy. In an interview with BetaKit, Skeete said he has several priorities to push forward the innovation portion of his mandate. Chief among them is more private sector funding for Quebec companies and closing the productivity gap with Ontario. Skeete put in a full day of meetings with organizations that support the tech ecosystem at an October 11 event in Montreal marking the halfway point of the Stratégie québécoise de recherche et d’investissement en innovation 2022-2027. The $7.5-billion research and innovation strategy, put forth under Fitzgibbon, lays out a five-year plan for how the Quebec government will lessen the productivity gap with Ontario, better commercialize research, and develop a “scientific and innovation culture.” Skeete, a former entrepreneur in the health care space with six years of government experience, is now responsible for seeing this plan through. Skeete said he wants to see more private sector involvement in early-stage companies. He sees the government’s role as a facilitator between the private sector and research. BetaKit

Western University is set to play an important role in electric vehicle R&D in southwestern Ontario. Volkswagen is building a $7-billion EV battery cell gigafactory (a factory focused on clean energy technologies) in St. Thomas, Ont., 30 kilometres from campus. Yang Zhao, a mechanical and materials engineering professor at Western, develops next-generation EV batteries and nanomaterials that have potential to solve challenges related to energy storage, conversion and environmental pollution. Zhao leads Western’s Materials and Interfaces for Energy Storage Lab, which uses synchrotron-based X-ray techniques to probe materials. Western also is home to Surface Science Western, a premier surface analysis and materials characterization facility that works with automotive manufacturers from across North America on more than 100 projects each year. With the EV market on the move, studying battery materials and chemistry to improve range and charging capacity while addressing degradation challenges and sustainability concerns is a priority. Western University

Public postsecondary institutions in Quebec are opposed to the Government of Québec’s recently tabled Bill 74, which would give the government new authority to significantly limit international student applications. At hearings on the bill, leaders from the province’s public institutions and related organizations urged the government to reconsider the legislation, warning that it could hinder their ability to attract top talent. In their statements, representatives from Bishop’s University, Concordia University, the Fédération des cégeps, McGill University, Université de Montréal, Université de Sherbrooke, Université du Québec, and Université Laval requested exemptions to the legislation and highlighted the vital role that international students play in regional development. "Through their presence, they allow our master's and doctoral programs to meet the needs of a highly qualified workforce and to develop Quebec's capacity for innovation," Laval, Montreal, McGill and Sherbrooke universities said in a joint brief. The brief noted that 12 different international student policy changes have been announced by the Quebec and federal governments since 2023, each adding further “confusion and uncertainty” to the system. The Quebec government's stated intention to significantly reduce the number of international students “would slow down the development of universities in addition to depriving all regions of the significant contribution of these students," said Alexandre Cloutier, president of the Université du Québec. Université du Québec, Montreal Gazette

Atlantic Canada post-secondary institutions hard hit by federal changes on international students and study permits

Atlantic Canada needs international students but as a direct result of federal immigration, student permit and other policy changes, nearly 3,000 undergraduate and graduate students chose not to come to many Atlantic universities, Peter Halpin, executive director of the Association of Atlantic Universities (AAU), wrote in an article published by University Affairs.

According to surveys conducted by AAU, that represents a year-over-year decline of more than 11 percent, from 26,200 students in 2023 to 23,250 in 2024.

The negative implications of such a major decline in just one year are significant and projected to worsen in 2025 with Immigration, Refugees and Citizenship Canada’s decision in September to introduce a further 10-percent reduction in new study permits for not just undergraduate students but now master’s and PhD students as well, Halpin said.

Atlantic universities have a greater dependence on international students than other parts of Canada, he noted. These students represent, on average, 30 percent of institutional enrolments versus less than 20 percent in the rest of Canada.

The first and most obvious impact is financial: the loss of these students is projected to have a regional revenue and spending loss of $163 million. Without the cap on enrolments, international student spending this year would have totaled to at least $1.3 billion.

Many universities’ student governments and student advocacy associations are led by international students, and many are also highly engaged in local community service, such as volunteering at food banks, Halpin said.

“In short, international students have a powerful influence on the socio-cultural development of campuses and communities,” he said.

Research prepared for AAU shows Atlantic Canada also retains 56 per cent of international students following their graduation.

Of those who completed education programs (100 per cent), surveyed in a study by Ather Akbari at Saint Mary’s University, “almost two-thirds found their first job in the province of study. Over half were working in their field of study, and two-thirds were permanently employed.”

According to Springboard Atlantic Inc., in an average year, 113 startups are spun out of the region’s research universities, with 60 percent of them led by international students.

“The federal government needs to urgently rebuild Canada’s hard-earned reputation as a welcoming country for international students so that our region can continue to grow and prosper,” Halpin said. University Affairs

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