An essential cleantech funding program known to many innovators in Canada as the Sustainable Development Technology Canada (SDTC) was recently put on pause. However, after a recent review, the program is set to return with a few changes. This change comes in response to findings from various reviews, including the Auditor General’s report, which highlighted the need for enhanced oversight and accountability within the organization.
A Look at Canada’s Cleantech Funding Program: SDTC
Established over 20 years ago, SDTC has been instrumental in fostering the growth of Canada’s cleantech sector. However, recent evaluations revealed serious governance issues, prompting a government-led overhaul to ensure the organization meets contemporary standards of stewardship.
Upon receiving allegations regarding SDTC’s practices, the Department of Innovation, Science and Industry swiftly froze new cleantech funding and initiated independent reviews, including an audit by the Auditor General. The reviews uncovered weaknesses in governance, project eligibility, and conflict of interest management. The government has since taken decisive steps to address these issues. A new governance framework has been introduced, featuring heightened due diligence and enhanced monitoring of cleantech funding.
Changes to the SDTC
A significant change in the SDTC involves transitioning it’s programming to the National Research Council of Canada (NRC). The NRC’s extensive experience with innovative, tech-focused SMEs through programs like the Industrial Research Assistance Program (IRAP) makes it well-suited to support cleantech companies. This move aims to rebuild public trust and ensure higher standards of accountability and transparency.
Additionally, to facilitate this transition, the government has appointed new directors. These appointees bring a wealth of experience and will guide SDTC through its integration with the NRC. Moreover, SDTC employees, who have shown remarkable dedication during this challenging period, will be offered employment with the NRC, ensuring continuity and stability for ongoing projects.
With these changes the SDTC will resume funding under a reinforced contribution agreement with Innovation, Science and Economic Development Canada (ISED). This ensures that eligible cleantech projects vital to Canada’s economic and environmental goals receive the necessary support.
Looking Ahead: Future Changes to Cleantech Funding
The SDTC and IRAP programs will merge under the Canada Innovation Corporation (CIC) by 2026-27. This integrated platform will enhance support for business research, development, and innovation-driven growth nationwide.
In conclusion, these changes signal a renewed focus on governance and accountability within Canada’s cleantech sector. With the new structure, the future looks promising for Canadian cleantech companies, paving the way for sustainable growth and innovation.
If you are hoping to apply to the SDTC, at Leyton, our experts can help you develop a compelling application without disrupting your day to day activities. Schedule a free consultation with one of our consultants now!
