Federal funding freeze could hurt clean tech startups, industry says

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A funding delay of a few months could be a 'death sentence' for a cleantech startup, says the executive director of the Canada Cleantech Alliance.

Industry associations are worried the temporary suspension of federal funding for clean tech startups will hinder small companies trying to get off the ground.

The third-party report — prepared by Raymond Chabot Grant Thornton — questioned the foundation’s decision to distribute $38 million in "relief payments" during the first two years of the COVID-19 pandemic in 2020 and 2021. Until the foundation has implemented the recommendations — which it anticipates will be complete by the end of 2023 — no new projects will be approved and no new applications will be accepted.

She called the federal foundation “a key driver of Canada’s transition to net zero,” noting SDTC’s funding programs play a “vital role” in Canadian climate innovation.

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