Canada's Green Tech Industry: By the Numbers

Canada's growing green tech industry is a testament to the country's commitment to sustainability and environmental stewardship. As global attention turns towards combating climate change and fostering a sustainable future, Canada has emerged as a leader in green technology innovation.

The Green Tech Landscape in Canada

Canada's green tech sector has grown substantially over the past decade. In 2021, the environmental and clean technology (ECT) sector accounted for 2.9% of Canada’s gross domestic product (GDP) and 1.6% of employment.¹ This rapid expansion highlights the increasing demand for sustainable solutions and the country's dedication to environmental initiatives.

The green tech industry is also a significant source of employment in Canada. According to Clean Energy Canada, jobs in clean energy are set to grow 7% a year, from 509,000 in 2025 to 2.7 million in 2050.² This growth boosts the economy and supports communities by providing high-quality, sustainable employment opportunities.

Key Sectors in Canada's Green Tech Industry

Here are some of the main sectors driving the growth of green tech in Canada:

Renewable Energy
Renewable energy is a cornerstone of Canada's green tech industry. The country is rich in natural resources, which facilitates the development of various renewable energy sources, including hydroelectric, wind, solar, and biomass.

Hydroelectric Power

Canada is the world's fourth-largest producer of hydroelectric power.³ In 2019, Canada produced 632.2 TWh of electricity, with 60% of energy coming from Hydroelectric and Tidal Energy Sources.⁴

Wind and Solar Energy

Wind and solar energy are rapidly growing segments within Canada's renewable energy landscape. In 2022, Canada’s wind-generated electricity reached 39.06 TWh, a record for the country, representing 6.6% of electricity demand.⁵ Even though Canada is known for its harsh winters, its solar output is growing remarkably quickly. The country added 25% more solar capacity in 2022 alone.⁶

Energy Efficiency

Energy efficiency technologies play a crucial role in reducing Canada's carbon footprint. The energy efficiency sector includes innovations in building design, smart grids, and energy storage solutions. Canada’s 2023 federal budget allocated an additional $83 billion for clean electricity, cleantech, manufacturing tax credits, and strategic financing.⁷

Clean Transportation

Clean transportation is another vital component of Canada's green tech industry. The government has set ambitious targets for reducing greenhouse gas emissions from the transportation sector, with a goal of 100% zero-emission vehicle sales by 2035.⁸

Electric Vehicles (EVs)

The market for electric vehicles (EVs) in Canada has expanded rapidly. A record 86,032 electric vehicles were registered in Canada in 2021, making up 5.3% of total vehicle registrations for that year.⁹ This growth is supported by government incentives and investments in charging infrastructure.

Government Support and Initiatives

The Canadian government has been instrumental in supporting the growth of the green tech industry. At the 2021 G7 Leaders’ Summit, Canada announced doubling its international climate finance commitment to $5.3 billion to help developing countries combat climate change.¹⁰ This funding supports research and development, commercialization of new technologies, and infrastructure projects.

Canada's carbon pricing system is another critical factor driving the adoption of green technologies. The government encourages businesses to invest in cleaner alternatives by putting a price on carbon emissions. As of April 1, 2024, the cost of fuel charge is $80 per tonne for gasoline, which is about 3 cents per liter more than in 2023.¹¹

Lastly, Canada is also actively engaged in international collaboration to advance green technology. The country participates in various global initiatives, such as Mission Innovation, which aims to accelerate public and private clean energy innovation.¹²Green technology is clearly beneficial for the environment and a significant contributor to the economy. As Canada continues to invest in sustainable solutions, the green tech industry will play an even more substantial role in shaping a cleaner, more sustainable world.

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Ivy Pierson, CEP, MBA Investment Advisor Representative Securities and advisory services offered through Cetera Advisors LLC (doing insurance business in CA as CFGA Insurance Agency LLC), member FINRA/SIPC, a broker/dealer and a Registered Investment Adviser. Cetera is under separate ownership from any other named entity. Pierson Wealth Management is located at 28368 Constellation Rd., Ste. 396, Santa Clarita, CA 91355. CA Insurance Lic#0C92500. All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful