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”Show Me The Money” (A guide through the funding program maze). Liliana Gwizdkowska Innovative Solutions Division Science and Technology Branch Environment Canada November 18, 2005. Our Challenge.
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”Show Me The Money”(A guide through the funding program maze) Liliana Gwizdkowska Innovative Solutions Division Science and Technology Branch Environment Canada November 18, 2005
Our Challenge • To make Canada a world leader in the new sustainable economy by supporting the advancement of innovative technologies to help industry both meet its environmental performance targets and strengthen long-term competitiveness in the global market
How we do it Support three CETACs which help SMEs develop and commercialize leading-edge environmental technologies Monitor over 130 funding programs and conduct targeted networking events to provide clients with strategic and timely information on new funding opportunities Assist developers accelerate entry of innovative technologies into markets by validating claims through ETV Program
Environment Markets • Canadian • Domestic Revenues (2002) - $15.8 B • Exports Sales (2002) - $ 1.4 B • Trade Deficit (2000) - $ 1.1 B*** • Employment - 160,000 • Companies - 8000 (93% SMEs) • Global • Technologies & services (2000) - $750B US* • Estimated growth to 2015 - $1 Trillion US ** Stats from: Environment Industry Survey: Business Sector 2002, Statistics Canada ,2004; except ** A Decade of Challenge – Canadian Environmental Industry Competitiveness Analysis, Industry Canada, 2003 ***Canada’s Environment Industry: An Overview, Industry Canada website as viewed on Nov 4, 2004 at:: http://strategis.ic.gc.ca/epic/internet/inptg-sc.nsf/en/pg00016e.html
What’s in Budget 2005 • $1 billion over 5 years for an innovative Climate Fund to further stimulate cost-effective action to reduce GHG emissions in Canada • $250M over 5 years for a Partnership Fund to cost share investments in GHG reduction projects with provinces and territories. • GHG Technology Investment Fund to support R&D projects in transformative technologies aimed at reducing or removing GHGemissions from industrial sources and operations • $200 M over 4 years to develop & implement a Sustainable Energy Science & Technology Strategy, commencing with an examination of existing federal investments in environmental and energy S&T
Budget 2005 continued… • $300 M for the Green Municipal Funds (GMF) to support projects, with half ($150M)devoted to brown-field cleanup • $200M over 5 years to quadruple the Wind Power Production Incentive (WPPI) to encourage 4000 MW of new wind power, totalling $920M over 15 years • $170M over the next 6 years for the Renewable Power Production Incentive (RPPI) to stimulate development & use of renewable, non-wind energy (biomass, hydro, landfill gas), totalling $886M over 15 years • $295 M via the modification to the Accelerated Capital Cost Allowance (Class 43.1) to encourage investment in renewable energy generation & energy efficiency
Climate Fund(originally announced in Budget 2005 as the “Clean Fund”) $1 B over 5 years (2005-2010) Government’s purchasing agent for domestic & international carbon units Cornerstone of Climate Change Plan’s market-based approach Encourage development & deployment of cost-effective, innovative ETs and processes to reduce GHG emissions
Partnership Fund $ 250M over 5 years (2005-2010), with potential increased funding to $ 2-3B over next decade, to: • cost-share clean energy projects and other initiatives with provinces & territories to meet GHG emission reduction targets • complement support provided through Climate Fund • target strategic large and local projects deemed priorities by both levels of government • Achieve emission reduction of 55 to 85 MT
GHG Technology Investment Fund(Large Final Emitter (LFE) System) • Supports improvements in the LFE * sector to further reduce GHG emissions • Alternative mechanism for industry to achieve their targets and support development & deployment of innovative technologies • Cost to industry capped at $15/tonne (2008-2012) * Oil & gas, thermal electricity, and mining & manufacturing sectors
Climate Change Investments (Budget 2003)Funding Blocks$Million • Technology & Innovation 270 • Individual Canadians 131 • Industry & Business • Energy Efficient Buildings 129 • Energy Efficient Transportation 154 • Governments & Communities 321 Total1005
Funding Spectrum Federal Funding Programs
Sustainable Development Technology Canada (SDTC) • Established in 2001 as a response to Kyoto • Total of $550M • $350M + $200M (Budget 2004) • $169M Allocated as of Oct 05 • Climate Change & Clean Air, Water & Soil Techs • Development & demonstration • Emphasis on strong partnerships • Funding Specifics: • Partnership consortium required • No specific min/max amounts • Max 5 years of Funding per project • Follow-on report on success of funded project to be submitted 2 years after project completion 9th Funding Round open Jan 2006
Green Municipal Fund (GMF) Federation of Canadian Municipalities • helps municipal governments & partners improve air, water & soil quality, protect the climate, promote use of renewable resources, and remediate & redevelop municipal brownfields • $550M revolving Fund for green municipal infrastructure projects • loans & loan guarantees for such projects • grants for feasibility studies, field tests & sustainable community plans • $300M of total to support green municipal projects, with half ($150M) to brownfield cleanup (Announcement, Budget 05)
Scientific Research & Experimental Development (SR&ED) Program • ~$1.8B Federal tax incentive program to encourage private sector investment in SR&ED • Claimants can apply for tax credits for wages, materials, machinery, equipment, some overhead and SR&ED contracts • Eligible areas: Experimental Development, Basic and Applied Research
Renewable Energy / Conservation Tax Incentives • Accelerated Capital Cost Allowance (Class 43.1) • Tax incentive for renewable energy and energy conservation equipment • Canadian Renewable & Conservation Expenses (CRCE) • For the non-capital costs associated with the start-up of renewable energy & energy conservation projects
Industrial Research Assistance Program (IRAP) • Established 1947 by NRC to stimulate wealth-creation through technology innovation • Supports more than 12,000 SMEs/year • $100M budget for client contributions04-05 • Cost-shared contributions (see notes) • Delivered through national network of Industrial Technology Advisors (ITAs)
Renewable & Electrical Energy(NRCan) • Wind Power Production Incentive (WPPI) • Provides financial support to electricity producers • Incentive on production • 5 year program, $200M • Renewable Power Production Incentive (RPPI) • $170Mover the next 6 years, with a total of $886M over 15 years • Stimulates development, installation & use of new, renewable*, electricity-generating capacity (up to 1500 MW) * biomass, hydro, landfill gas (not for wind energy) • Renewable Energy Deployment Initiative(REDI) • 9 year, $51M renewable energy incentive program • For purchase & installation of qualified systems: • Active solar air & water heating systems; & ground-source heat pumps • Refund of 25%, up to $80K per project max. ($250K per corp.)
Technology Partnerships Canada (TPC) (Restructuring as Transformative Technologies Program (TTP)-1st Quarter, 2006) • Contributes to GoC’s objectives: • Economic growth, job creation, sustainable development, • Complements other Government funding programs, usually with a SR&ED tax credit • Shares cost of industrial R&D projects (25-30% of eligible R&D costs) • 3 Funding Areas: Enabling, environmental (15-20%), Aerospace & Defense • SME projects <$3M referred to IRAP-TPC • Repayment level depends on commercial success
Summary • Billions available over the next 5 years • Emphasis on strong proposals & partnerships • Available Programs: Larger National Funding Programs • SDTC, TEAM, IRAP, TPC, h2EA, PERD, GMF, NSERC, CFI, ACAAF, WPPI Smaller National Funding Programs • TPC-IRAP, FSDP, FIP, CFCAS, REDI, MIP, IERD, ETP, RETP, EII, BETP Regional Funding Programs • FEDNOR, ACOA/AIF, CED/DEC, WD Tax Incentive Programs • SR&ED; Renewable Energy/Conservation Tax Incentives
Thank You For more information, please contact us! Innovative Solutions Division, Environment Canada 351 St. Joseph Blvd. Hull, Quebec, Canada, K1A 0H3 E-mail: isd@ec.gc.ca Web: http://www.ec.gc.ca/