Solar, carbon capture, wind energy — these are just a few constantly evolving cleantech sectors trying to combat the world’s drastic, looming climate impacts from greenhouse gas emissions.
But climate tech poses an exciting yet uncertain range of solutions. The sector has seen record private investment globally, especially the US.
Still, Canada is a growing hotspot for climate tech development. The Boston Consulting Group (BCG) wanted to explore this further with their report titled The Canadian Venture Opportunity: Climate Tech. Here are some highlights from the report.
Climate tech solutions are largely not ready for market
Canada aims to hit net-zero emissions by 2030. Ambitious? BCG thinks so, considering 50% of the climate tech solutions that could accomplish it are nowhere close to market.
Here are the stages to market and respective percentages of climate solutions in those stages:
- Mature: 12%
- Market uptake: 40%
- Demonstration: 23%
- Large prototype: 20%
- Small prototype: 5%
Canada’s talent both highest-educated yet highest
Canada has some of the highest number of adults with postsecondary degrees in the world — and 20% of those hold STEM degrees.
BCG sees this education as a great start toward developing more climate tech innovators, but highlights immigration, unemployment, and “brain drain” among top tech talent as barriers to climate tech development.
Here are some figures displaying the percentage of STEM grads across the population for various countries, with Canada tying with a few other countries at the top.
- Canada, UK, Sweden: 13%
- Finland: 12%
- Germany, Switzerland: 11%
- Japan, France, Norway: 10%
- USA, Australia, Denmark: 9%
- Netherlands: 6%
- Italy: 5%
12 out of the world’s top 100 cleantech startups are Canadian
BCG references a study by the Cleantech Group from 2023, indicating 12 Canadian cleantech startups in the world’s top 100. But the US is snatching them up, appealing with their more appealing markets.
Here are the 12 Canadian cleantech companies referenced, by the climate industry.
- Energy & Power: Ekona, Eavor, Hydrostor, Moment Energy, e-Zinc
- Resources & Environment: Carbon Upcycling, GHGSat, Pani, Svante
- Materials & Chemicals: Ionomr Innovations, Mangrove Lithium, GaN Systems
3 steps for Canada to keep growing as a climate tech
Canada’s tech firms, talent, and investment continues to seep into the US — a top competitor. Here are three steps BCG sees as necessary for Canada to emerge as a top climate tech leader:
- Shared ambition: Find common ground between governments, investors, and corporate leaders to further climate tech innovation.
- Reinforce funding: Specifically in university climate talent programs, early venture programs, research
- Pick the right tech: Focus on a couple of strategic climate tech for investment rather than too many too far from market
Check out BCG’s full report here.
