Last month, we reported that Canada backed down on electric vehicle mandates that were deemed unfeasible.
The move made some ask the question: is it economic suicide to keep pushing for a “Net Zero” future?
“It’s been clear for some time that … EV mandates are unrealistic,” Barry Penner, a former B.C. Minister of Environment and Attorney General who now functions as Chair of the Energy Futures Institute, stated in September.
But EV adoption is just one element of the overall clean energy transition.
Overall, Canada’s potential is “significant” and its opportunities are “profitable,” according to a recent report from Export Development Canada.
EDC’s October report, “Canada’s Cleantech Future: Scalable, Profitable, Essential,” highlights national trends across three sectors: renewable energy, electric vehicles, and electrification technologies.
One trend observed on the renewable energy front is that geopolitical instability and economic uncertainty have tightened access to growth capital, which means investors are prioritizing commercially viable clean technologies.
The report goes on to suggest that Canada has the potential to meet domestic electricity needs exclusively through wind and solar power, which would enable the country to export energy such as hydrogen and hydropower for capital gain.
“Geopolitical tensions and the urgency of climate action are pulling the energy transition in different directions,” argues Prerna Sharma, author of the report and senior economist at EDC. “Yet, the transition remains economically viable.”
Clean technologies “continue to show strong global growth potential as they are increasingly profitable, low maintenance, and well-suited for mainstream adoption,” according to Sharma.
“Countries that invest in scalable cleantech will be better positioned to achieve energy security, predictable supply chains, and long-term economic growth,” the economist believes.
Electric vehicles are the most effective solution for decarbonizing the transportation sector, according to the report—and while our prior EV mandates proved folly, Canada still “holds a strategic advantage with abundant reserves of critical minerals” relating to battery tech, such as lithium, cobalt, nickel, and graphite.
“The growing demand for energy security … positions Canada to respond thanks to our strong capabilities and our global reputation and expertise in the cleantech sector,” remarked Guillermo Freire, EDC’s senior vice-president of the Mid-Market Group.
To date, EDC has supported nearly $50 billion in cleantech exports. In 2024, the organization facilitated nearly $10B billion in business activity for 500 Canadian cleantech companies.