Canada’s federal government will double the financial support it offers small and mid-sized Canadian companies seeking to bring their clean technology to a global market worth US$1 trillion today, and expected to reach $2.5 trillion within three years.
Export Development Canada (EDC) will make C$1-billion available to as many as 175 cleantech companies this year for sales financing, insurance on receivables, working capital guarantees, “and even equity infusions,” the Globe and Mail reports. That amount will double by 2020, to make support available to 200 companies.
EDC CEO and President Benoit Daignault acknowledged to cleantech leaders Monday that if they want to scale up and succeed, they’ll have to enter global markets. “Any company that wants to grow has to consider selling and investing outside the country,” he said.
The initiative is part of Ottawa’s “big bet” on Canadian clean technology, the Globe notes. In addition to doubling the EDC’s budget for supporting cleantech sales abroad, the government is “offering grants and loans for pre-commercial and commercial development; hiring 15 overseas trade commissioners devoted exclusively to the sector; and enhancing government procurement from small and medium-sized companies.”
The expansion of EDC cleantech funding comes on top of $450 million in the 2017 budget to finance “capital-intensive, early commercial-stage, technology sales by Canadian firms in foreign countries,” the paper states.
The Conference Board of Canada urged Canadian cleantech businesses in a report in August to more vigorously pursue foreign sales opportunities.
“A strong green export strategy for Canadian firms will look to energy-transforming markets—such as the European Union, California, and other U.S. states with low-carbon goals, China, and elsewhere in Asia—to seek growth opportunities and to understand the latest trends in lower-carbon production and consumption, regulation, monitoring, and enforcement,” the Board wrote.