The global demand for clean energy is a tremendous investment opportunity
Canada's multifaceted approach includes funding from the Canada Infrastructure Bank for clean energy projects and from the Strategic Innovation Fund, which is focused on supporting groundbreaking decarbonization technologies. Support is also available from the Clean Fuels Fund, which incentivizes the development and expansion of clean fuel production, and the Canada Growth Fund, which invests in instruments that absorb certain risks to encourage private investment in low carbon. In Canada’s provinces and territories, policies and incentives are also in place that are ready to support investment. The Atlantic Investment Tax Credit (AITC) offers a 10% non-refundable tax credit for overseas businesses engaged in new energy generation and manufacturing, in the Atlantic provinces closest to European markets. In the western province of Saskatchewan, the Commercial Innovation Incentive offers companies a reduction in corporate income tax rate of up to 6% for up to 15 years. The Alberta Petrochemicals Incentive Program offers grants worth 12% of a project’s eligible capital costs once it is operational, and is valuable to companies seeking to reduce greenhouse gas emissions. This comprehensive suite of support programs ensures that businesses at every stage of development have access to funding.
Canada's approach to financial support
Canada’s unrivalled geology, infrastructure and skills offer investors unique opportunities in the rapidly growing carbon management market.
Canada is a place of abundant natural resources, where opportunities abound to build on the established industries and skills that have made it a leader in the global energy sector. Canada offers a location for global companies to implement the next generation of energy technologies. Investors in Canada benefit from a highly skilled and educated workforce, world-class infrastructure with well-established supply chains, and an extremely stable and supportive political environment. “The energy transition could have the same type of impact as the Industrial Revolution,” says Laurel Broten, CEO of Invest in Canada. “But it won't be possible without massive private sector investment. And forward-thinking companies are seizing those opportunities right now.” Canada’s proactive and strategic approach to reducing the risk of energy transition investment has created a business-friendly ecosystem. Canada has the lowest marginal effective tax rate on new business investment in the G7. There is tariff-free access to major global markets, including the Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union. Electricity costs in Canada are among the lowest in the Organization for Economic Co-operation and Development (OECD). Furthermore, the electricity sector is 82% non-emitting, powered from sources such as solar, hydro, wind and nuclear energy that do not emit greenhouse gases. Overall, 60% of Canada's electricity comes from hydropower, making Canada the world's third largest producer of hydroelectricity. All these factors make Canada a solid choice for businesses. Rystad Energy, an independent research and energy intelligence company, even named Canada the second most attractive location for investment in renewables in the world.
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The world's energy needs are changing. Fulfilling them is reshaping industries, driving innovation, and forcing the global economy to rethink how we generate power. Such a significant transformation is creating massive investment opportunities. According to UK-based Schroders, infrastructure for the worldwide energy transition requires nearly $120 trillion in investment from 2020 to 2050. For businesses and investors, there is the once-in-a-generation potential to deploy technologies and innovations at unprecedented scale. The pace of the world’s need for energy will not slow down. The International Energy Agency predicts that demand will rise globally at an ever-faster rate, growing by an average of 3.4% each year through to 2026. Driven by population and economic growth, this acceleration in demand makes the need for investment in sustainable energy more pressing than ever. Transitioning to a renewable, electrified, low-carbon future will depend on private businesses and capital, and is already opening a world of new opportunities for ambitious investors. So, how can global companies maximize their returns in this changing world, while minimizing potential risk? The answer is, by choosing Canada.
more of Canada’s GDP has been spent on clean-tech initiatives (5%) since April 2021, compared to the U.S. Inflation Reduction Act’s 1.5% of nominal GDP spent
3 times
Turning incentives into tangible returns
German
Hydrogen
Biofuels
Renewables
Carbon management
Building on Canada’s global energy leadership
Canada is positioned to be a global leader in biofuels production. Its natural resources and focus on innovation offer fertile ground for investors.
The global energy transition is accelerating demand for hydrogen and Canada’s supply chain is ready for further investment.
Renewable energy
Canada’s financial incentive programs could increase the value of green energy projects by more than 50% over their lifetime, according to Rystad Energy
Why choose Canada
Canada's commitment to accelerating the energy transition is supported by robust financial incentive programs, designed to maximize the impact and value of investments. Canadian green energy projects are estimated to increase in value by more than 50% over their lifetime, according to Rystad Energy. This is based on a prospective asset in Alberta with a US$45 per megawatt hour (MWh) power purchase agreement (PPA) increasing 2% with inflation annually. As a location to deploy capital, the growth potential of energy transition technologies in Canada is backed by stability, a supportive regulatory environment, and a commitment to mitigating investment risk.
Listen as Laurel explains more about this investment opportunity
A new opportunity for investment
Canada A safe CHOICE for bold BUSINESSES
Explore the energy transition
#2
globally for green energy incentives that create favourable financial conditions for projects
Source: Rystad Energy
50%
Source: The Global Economy, Transparency International
Source: Statista, 2024
#1
Source: TD Economics
among G7 countries for political stability
potential increase in value for renewable energy projects over their lifetime in Canada
in the Americas on the ESG Index
“Canada understands there is a liquidity gap in financing large clean energy projects. That’s why we’re helping companies reduce the investment risks with established funding programs and new tax credits.”
Laurel Broten, CEO, Invest in Canada
Canada's advantages for businesses
What makes Canada a trusted partner for forward-thinking businesses?
Canada is ranked as one of the most stable economies in the world by U.S. News & World Report. Canada ranks #2 among G7 countries for global competitiveness, offering an attractive environment for business. Canada ranks #2 among G7 nations for political stability.
Stability
Market access
Workforce
Business environment
Canada is the only G7 nation to have comprehensive free trade agreements with all other G7 members – 15 agreements with 51 countries encompassing 1.5 billion consumers worldwide. Canada is strategically located right next to the United States, with deeply integrated supply chains serving the world's largest consumer market. Canada offers the shortest port routes to both Europe and Asia from North America.
Canada has the most highly educated workforce in the world, according to the OECD. Canada is home to a diverse and multicultural population. There is a large existing skilled energy sector workforce.
Canada has ranked in the top 3 countries for FDI confidences for seven years in a row. Canada's tax treatment for new business investment is the lowest in the G7. Canada offers businesses one of the most generous R&D tax incentives in the G7.
of Canada’s GDP has been spent on clean-tech initiatives (5%) since April 2021, compared to the U.S. Inflation Reduction Act’s 1.5% of nominal GDP spent on clean-tech initiatives.
3x more
Federal incentives
Clean Economy Investment Tax Credits (ITCs) equalling $93 billion in dedicated federal funding, available to apply for over the next decade
Across Canada’s provinces and territories, local policies and incentives can be combined with federal ITCs to further support investment decisions
Provincial incentives
Some of the lowest electricity prices in the OECD; the lowest METR on new business investment in the G7; a welcoming regulatory environment
Additional benefits
Find out more
In the rapidly evolving energy transition, Canada stands out as a beacon of stability, opportunity and support for investors in clean energy. Canada is ready to be your partner on this journey towards a cleaner, more prosperous future.
Ready to discover the opportunity?
Canada offers substantial financial support for clean technology initiatives through its Clean Economy Investment Tax Credits (ITCs). Clean Technology: Refundable tax credit of up to 30% for investments in the adoption and operation of clean technologies. Carbon Capture, Utilization and Storage: Refundable tax credit up to 60% for projects that capture, transport and store CO2. Clean Technology Manufacturing: Refundable tax credit of up to 30% for the cost of investments in new machinery and equipment used to manufacture or process key clean technologies, and critical minerals extraction. Clean Hydrogen: Refundable tax credit of up to 40% for investment in projects that produce hydrogen. Clean Electricity: 15% refundable tax credit for eligible investment in generation, storage and transmission of clean energy. In addition, a 10% Electric Vehicle Supply Chain ITC for building costs is being proposed. This comprehensive approach represents an expected $93 billion in dedicated funding over the next decade, and ensures that businesses across the clean energy spectrum can access the support they need to innovate and compete on a global scale.
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Canada’s approach has proven successful in attracting investments into new and transformative industries. A comprehensive end-to-end EV battery supply chain was developed in just a few years, with an estimated $46 billion in investment in Canada since 2020; most of this comes from global companies. Canada is now ranked number one in the world for the global lithium-ion battery supply chain. Canada's funding program offers a flexible framework that allows companies to combine federal investment tax credits with provincial incentives, creating customized support packages tailored to specific needs and risk profiles.
Building investment momentum
in EV battery investment since 2020, mostly from global companies
Source: Office of the Parliamentary Budget Officer
$46 billion
in the world for the global lithium-ion battery supply chain
Source: BloombergNEF (BNEF)
With a diverse climate and topography, Canada is an ideal location for investing in renewable energy technologies.
Canada is positioned to be a global leader in biofuels production, its natural resources and focus on innovation offering fertile ground for investors.
Canada’s unrivalled access to geology, infrastructure and skills offers investors unique opportunities in the rapidly growing carbon management market.
Carbon Management
Explore Canada's energy transition industries
Canada's competitive advantages
Canada is in the top 3 in FDI confidence for the seventh year in a row. Canada's tax treatment for new business investment is the lowest in the G7. Canada offers businesses one of the most generous R&D tax incentives in the G7.
Business Environment
Canada has the most highly educated workforce in the world, according to the OECD. Canada is home to a diverse and multicultural population. There is an large existing skilled energy sector workforce.
Canada is the only G7 nation to have comprehensive free trade agreements with all other G7 members – 15 free trade agreements with 51 countries encompassing 1.5 billion consumers worldwide. Canada is strategically located right next to the United States, with deeply integrated supply chains serving the world's largest consumer market. Canada offers the shortest port routes to both Europe and Asia from North America.
Deutsch
The global hydrogen market is ready for further investment
The worldwide energy transition is accelerating demand for zero-emission sources – and Canada is already positioned as a leader of this new energy revolution. Hydrogen and its derivatives have the potential to decarbonize a wide range of emission-intensive industries. Scaling up production to meet the rising demand for hydrogen represents a once-in-a-generation opportunity for investors. Canada is already at the forefront of the burgeoning sector. A skilled workforce, well-established energy industry and diverse renewable power and carbon capture resources position it to deliver zero- and low-carbon hydrogen at the scale the world requires. Hydrogen could account for as much as 20% of global energy consumption by 2050, according to models that lay out the ways in which the world can reduce its emissions to reach net-zero. This consumption will be driven by hydrogen's ability to help decarbonize industries ranging from steel to public transit. Canada’s comprehensive hydrogen strategy and strong financial support mechanisms – both federal and provincial – make it a true leader in the future of hydrogen energy and a clear choice for forward-thinking investors. As does its 100 years’ worth of leading IP in the space.
Canada's hydrogen opportunities as diverse as its landscape
international agreements in place for hydrogen production
Source: Hydrogen Strategy for Canada: Progress Report, 2024
12
announced projects to export Canadian-produced hydrogen to global markets
23 20%
of potential annual low-carbon hydrogen production
5 million tonnes
Source: New Climate Institute
of global energy consumption could comprise of hydrogen by 2050
20%
of Germany’s forecast demand for hydrogen could come from imports, including from Canada
Source: National Hydrogen Strategy Update, 2024
70%
of the world’s fuel cell electric buses are powered by Canadian heavy-duty fuel cell engine technology
Source: Hydrogen Strategy for Canada, 2020
50%+
Canada is a top-10 hydrogen producer. It boasts decades of expertise and has more than 5 million tonnes of annual low-carbon hydrogen production announced or under development. The feedstock available to deliver low- or zero-emission hydrogen makes Canada stand out as an investment destination. A total of nine major wind-to-hydrogen projects have been announced in Atlantic Canada. Abundant, low-cost wind energy and plentiful fresh water in the Atlantic provinces enable companies to carry out electrolysis at scale, while hydrogen derivatives can be shipped from its ice-free deepwater harbours to important European markets. Western provinces, notably Alberta, are the heartland of Canada's well-established energy industry. With vast geological formations suitable for secure, long-term CO2 storage, the region can leverage existing energy infrastructure to simultaneously decarbonize its economy and meet the growing global demand for low-carbon hydrogen. For instance, Linde recently announced a $2 billion low-carbon hydrogen partnership with Dow in Alberta, which will be the world’s largest such facility once completed in 2028. Across Canada, companies are rapidly scaling up hydrogen capacity using diverse feedstocks – which also include biomass gasification and waste-derived methods – to give customers the opportunity to select the hydrogen that best meets their needs. Investment opportunities are also emerging in the supply chain: both upstream, such as electrolyser manufacturing, and downstream, including hydrogen-derived products such as green steel and ammonia. “There are a number of technologies and supply chain opportunities for investors in Canada,” says Ivette Vera-Perez, President and CEO, Canadian Hydrogen Association. “For example, we have companies looking to develop a chain of hydrogen fuelling stations, and companies that can offer very interesting foreign direct investment opportunities when it comes to hydrogen storage and distribution of other novel technologies along the supply chain.”
A range of hydrogen opportunities
Canada's hydrogen potential doesn’t stop at production and export. Hydrogen’s adaptability as an energy carrier means it can be integrated into a wide range of sectors – and Canada is commercializing innovative applications. That includes green steel, with the country leveraging its abundant iron ore resources and renewable electricity capacity to position itself as a global leader in low-carbon steelmaking. Green ammonia is also a derivative of low-carbon hydrogen. In fact, eight of the nine projects announced in Atlantic Canada are hydrogen and ammonia projects, taking advantage of the region’s high winds and the comparatively short distances to transport ammonia to European markets. "Canada, and specifically Atlantic Canada, stands out as a leader in green hydrogen development," says Matthew Tinari, Chief Financial Officer and Chief Strategy Officer at EverWind Fuels. "This is due to a unique combination of factors. There are abundant renewable energy resources. There's comprehensive government support, coupled with strong regulatory frameworks. These are combined with an exceptionally skilled and experienced energy sector workforce. All this creates one of the most exciting opportunities for green hydrogen development in the world."
Innovation in hydrogen
Listen as Ivette talks about investing in Canadian hydrogen
Canada offers a comprehensive suite of policies and programs as well as a regulatory environment designed to accelerate the growth of its hydrogen economy. This includes streamlining permitting processes, providing financial incentives, and supporting research and development. The introduction of refundable Investment Tax Credits (ITCs) for clean energy projects – including producing and storing hydrogen – makes it financially sound to invest in such initiatives. The ITCs have positioned Canada as a cost-competitive supplier of green ammonia to European markets, such as Germany. The recently introduced Clean Hydrogen ITC offers up to 40% in refundable tax credits for projects involving electrolysis and carbon capture, utilization and storage (CCUS). Equipment used for clean ammonia production is eligible for a further tax credit of 15%. Provinces are offering specific incentives for clean energy production while also providing non-financial support, such as making lands available to hydrogen project proponents for onshore wind farms. In addition, the federal and provincial governments are collaborating to develop the first regulatory rules for offshore wind development in the future. Canada also provides contracts for difference to support the growth of low-carbon energy by offering a backstop on future prices, derisking investments and giving predictability on returns. One example of this approach is Canada’s agreement with Germany, signed in 2024 as part of the Canada-Germany Hydrogen Alliance. The countries will commit a shared $600 million between them to support hydrogen exports to Germany, closing the price gap between sellers and buyers. With a potent combination of the right resources, expertise, location, government support and political stability, Canada is the ultimate destination for those seeking to invest in hydrogen and help shape the future of clean energy.
Canada’s competitive hydrogen support
Ivette Vera-Perez, President and CEO, Canadian Hydrogen Association
Things that set Canada apart from the competition when it comes to hydrogen include its free trade agreements and strong support for climate friendly technologies.
"
Canada's hydrogen leadership
Fuelling a sustainable future with Canadian biofuels
Canada is uniquely positioned to be a global leader in biofuels production. With a vast landmass of almost 10 million square kilometres and diverse agricultural landscapes, it’s an ideal source of sustainable feedstocks. Employing biofuels to decarbonize hard-to-abate industries globally holds great promise. Using Canada's natural resources and applying innovation to achieve the necessary biofuels production capacity will be key to success. Canada was an important player in the first generation of biofuels, such as biodiesel and ethanol. As companies and countries work toward their sustainability goals, global demand for cleaner fuel sources is increasing. The second generation of biofuels – known as advanced biofuels – will be a critical part of the supply chain if emissions-intensive industries are to decarbonize. The global market for advanced biofuels is forecast to reach as high as $967 billion by 2036, growing at a 16% compounded annual growth rate from its $50 billion value in 2023. As hard-to-abate industries like road transport and aviation rapidly shift to low-carbon alternatives, Canadian biofuels offer investors an opportunity to help meet growing global demand and power the world. Two significant opportunities in Canada are renewable diesel (fuels made from biomass sources that are fully compatible with existing engines and infrastructure) and sustainable aviation fuels (SAF). SAF will be in particularly high demand in European markets, where EU rules mean that at least 2% of fuel at European airports must be SAF – a regulation that increases to a massive 70% requirement by 2050.
Canada’s natural resources and innovation offer fertile ground for investors
Source: Refuel EU aviation initiative
of all fuel made available to aircraft operators at EU airports must be SAF by 2050
Source: Canadian Council for Sustainable Aviation Fuels
Volume of SAF that existing and proposed renewable diesel and SAF projects in Canada will produce by 2030
525m litres
The SAF potential
Canada is an early leader in the carbon management sector. While progress in other parts of the world is still in blueprint stages, Canada has established operations and has bold new projects in development. The moment of opportunity for investors is now. With the second-largest pipeline of CCUS projects globally, companies operating across Canada are already developing and deploying a range of technologies. These include CCUS; carbon dioxide removal (CDR); direct air capture to carbon storage (DACCS); biomass carbon removal and storage (BiCRS); and enhanced carbon mineralization. And these technologies are not just theoretical solutions. Versions of CO2 transport and sequestration have been in operation since the 1970s, and carbon management is actively being deployed by fast-moving companies today, with support from some of the world’s largest organizations. As companies worldwide look for the best combination of technologies, infrastructure, skilled workforces and access to capital investment, Canada presents a compelling package to achieve success.
At the forefront of carbon technologies
Source: Clean Prosperity
could be captured from Alberta’s industrial sources per year
104 Mt CO2
Canada’s estimated geological capacity for carbon sequestration – roughly 580 times the volume of its 2023 CO2 emissions
389 Gt
Canada is a top-10 hydrogen producer. It boasts decades of expertise and has more than 5 million tonnes of annual low-carbon hydrogen production announced or under development. The feedstock available to deliver low- or zero-emission hydrogen makes Canada stand out as an investment destination. A total of nine major wind-to-hydrogen projects have been announced in Atlantic Canada. Abundant, low-cost wind energy and plentiful fresh water in the Atlantic provinces enable companies to carry out electrolysis at scale, while hydrogen derivatives can be shipped from its ice-free deepwater harbours to important European markets. Western provinces, notably Alberta, are the heartland of Canada's well-established energy industry. With vast geological formations suitable for secure, long-term CO2 storage, the region can leverage existing energy infrastructure to simultaneously decarbonize its economy and meet the growing global demand for low-carbon hydrogen. For instance, Linde recently announced a $2 billion low-carbon hydrogen partnership with Dow in Alberta, which will be the world’s largest such facility once completed in 2028. Across Canada, companies are rapidly scaling up hydrogen capacity using diverse feedstocks – which also include biomass gasification and waste-derived methods – to give customers the opportunity to select the hydrogen that best meets their needs. Investment opportunities are also emerging in the supply chain: both upstream, such as electrolyser manufacturing, and downstream, including hydrogen-derived products such as green steel and ammonia. “There are a number of technologies and supply chain opportunities for investors in Canada,” says Ivette Vera-Perez, President and CEO of Canadian Hydrogen Association. “For example, we have companies looking to develop a chain of fuelling stations, and companies that can offer very interesting foreign direct investment opportunities when it comes to storage and distribution of fuel cell technologies.”
Listen as Stuart talks about investing in Canadian biofuels
– Coming Soon
“In terms of natural resources, Canada has an abundant supply of canola oil – which is an ideal feedstock for sustainable aviation fuel.”
Stuart Roberts, President, Azure Sustainable Fuels
Soaring to new heights with Canadian biofuels
Canada is actively supporting the biofuels sector through a combination of incentives and regulations. A key initiative is the allocation of $1.27 billion, delivered through the Canada Infrastructure Bank and the Clean Fuels Fund, for the development of new biofuels facilities. Beyond federal initiatives, provincial governments are also playing a role in encouraging investment in the bioenergy sector. Alberta introduced an Agri-Processing Investment Tax Credit in 2023, and it is supporting Imperial Oil’s $720 million investment in Canada’s largest renewable diesel facility. Québec offers a tax credit to encourage the development of waste-to-energy projects, and Ontario's Forest Sector Investment and Innovation Program provides funding for biofuels and hydrogen projects that utilize forest biomass. This multi-level government support, combined with a growing global demand for sustainable aviation alternatives, makes Canada a highly attractive landscape for biofuels investment and innovation.
Source: ReFuelEU Aviation
525 million litres
Sustainable aviation fuel (SAF) is the only feasible near- and medium-term option to reduce the aviation industry’s carbon footprint at the pace needed. “SAF plays a critical role in reducing emissions from the aviation sector,” stresses Stuart Roberts, President of Azure Sustainable Fuels, which is developing SAF production facilities in British Columbia, Manitoba and Ontario. “SAF is regarded as providing the majority of the reduction efforts to meet long-term emissions targets for aviation.” Europe in particular is a frontrunner in SAF adoption. Fulfilling increasing European mandates for SAF at EU airports will require 2.3 million tonnes by 2030, when 5% of available aviation fuels must contain SAF. Today, the EU’s total potential SAF production capacity is estimated at around 0.24 million tonnes – only 10% of the volume required for the 2030 mandate. Meeting this demand presents investors with a tangible opportunity in biofuels exports to Europe, and Canada is helping accelerate companies’ production with an investment of $350 million in a national sustainable aviation innovation network. A key benefit of SAF lies in the variety of ways it can be created and produced. Producers can leverage a wide range of feedstocks, from vegetable oils to used cooking oil. This diversity ensures a sustainable supply chain that’s not overly dependent on a specific feedstock. “SAF is a drop-in fuel,” explains Roberts. “It can be blended with conventional jet fuel and is compatible with current infrastructure and aircraft, reducing the overall investment to achieve emissions targets.” New SAF development is also needed to meet domestic demand. Canada’s Aviation Action Plan outlines a net zero by 2050 vision, of which SAF is a cornerstone. The plan sets a goal of 10% SAF use by 2030. “The British Columbia market currently supports the use of SAF through its own credit mechanisms,” says Roberts.
Charting a sustainable course for aviation
Western Canada's biofuels advantage
Within Canada, the western provinces stand out as centres of biofuels investment. Alberta, Saskatchewan, Manitoba and British Columbia all encompass vast agricultural lands, with favourable growing conditions for key feedstocks such as corn, canola, and wheat. This strong agricultural sector provides a secure and sustainable supply of such feedstock and supports the long-term viability of biofuels production. Furthermore, the region's existing energy infrastructure, including pipelines and refineries, can be readily adapted for biofuels, reducing investment costs and accelerating project timelines.
Canada’s role in the future of biofuels
Canada is a long-established player in the biofuels market, and by combining natural resources with research and innovation, it is positioned to lead the next generation of low-carbon fuels. Advanced Biofuels Canada has set a $10–15 billion target for new clean fuel capital investments into the biofuels sector by 2030. This goal is both ambitious and realistic when considering Canada’s natural bounty of resources, its environmental focus, and its leading role in biofuel production. Canada is also home to a highly skilled workforce, world-class research institutions, and a stable political environment – all crucial factors for long-term investment success in the field. Canada’s potential in this area extends beyond fuels such as biodiesel and bioethanol. The country is also ripe for renewable diesel production, through the hydrogenation process, which uses feedstocks such as plant-derived oils, animal fats and algae.
The EU will become a major importer of SAF as mandates grow
From 2025, aviation fuel suppliers must ensure that all fuel made available to aircraft at EU airports contains a minimum share of SAF, which will rise over the coming decades
emissions reduction that Canadian biodiesels can offer compared to fossil diesel
Source: Advanced Biofuels Canada
80 to 117%
existing or planned renewable natural gas (RNG) projects in Canada
Source: Natural Resources Canada
39
Canada is uniquely positioned to be a global leader in biofuels production. With a vast landmass of almost 10 million square kilometres and diverse agricultural landscapes, it’s an ideal source of sustainable feedstocks. Employing biofuels to decarbonize hard-to-abate industries globally holds great promise. Using Canada's natural resources and applying innovation to achieve the necessary biofuels production capacity will be key to success. Canada was an important player in the first generation of biofuels, such as biodiesel and ethanol. As companies and countries work toward their sustainability goals, global demand for cleaner fuel sources is increasing. The second generation of biofuels – known as advanced biofuels – will be a critical part of the supply chain if emissions-intensive industries are to decarbonize. The global market for advanced biofuels is forecast to reach as high as $967 billion by 2036, growing at a 16% compounded annual growth rate from its $50 billion value in 2023. As hard-to-abate industries like road transport and aviation rapidly shift to low-carbon alternatives, Canadian biofuels offer investors an opportunity to help meet growing global demand and power the world. Two significant opportunities in Canada are renewable diesel (fuels made from biomass sources that are fully compatible with existing engines and infrastructure) and sustainable aviation fuels (SAF). SAF will be in particularly high demand in European markets, where EU rules mean that at least 2% of fuel at European airports must be SAF in 2025 – a regulation that increases to a massive 70% requirement by 2050.
Investing in Canada's carbon management technologies
Source: Global CCS Institute 2023
Canada’s global ranking for CCUS projects in development
The percentage of the world’s operating commercial-scale CCUS projects located in Canada
Source: GNatural Resources Canada
Canada is a place of abundant natural resources, where opportunities abound to build on the established industries and skills that have made it a leader in the global energy sector. Canada offers a location for global companies to implement the next generation of energy technologies. Investors in Canada benefit from a highly skilled and educated workforce, world-class infrastructure with well-established supply chains, and an extremely stable and supportive political environment. “The energy transition could have the same type of impact as the Industrial Revolution,” says Laurel Broten, CEO of Invest in Canada. “But it won't be possible without massive private sector investment. And forward-thinking companies are seizing those opportunities right now.” Canada’s proactive and strategic approach to reducing the risk of energy transition investment has created a business-friendly ecosystem. Canada has the lowest marginal effective tax rate on new business investment in the G7. There is tariff-free access to major global markets, including the Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union. Electricity costs in Canada are among the lowest in the Organization for Economic Co-operation and Development (OECD). Furthermore, the electricity sector is 82% non-emitting, powered from sources such as solar, hydro, wind and nuclear energy that do not emit greenhouse gases. And 60% of Canada's electricity comes from hydropower, making Canada the world's third largest producer of hydroelectricity. All these factors make Canada a solid choice for businesses. Independent research and energy intelligence company Rystad Energy, an independent research and energy intelligence company even named, Canada the second most attractive location for investment in renewables in the world.
tax credits through the U.S. IRA, compared to carbon credits that upstream oil sands producers in Alberta can expect with Canada’s incentives by 2030
C$115/tonne vs C$135/tonne
CCUS uptake needs to grow 120 times by 2050 for countries to achieve their net zero commitments, according to McKinsey analysis, with at least 4.2 gigatonnes of CO2 captured per year. Scaling up the technology means building and deploying more operational projects, pipelines and storage sites. And Canada is in the advantageous position of being able to bring CCUS and other forms of carbon management projects to fruition. “Companies in Canada have been measuring and monitoring emissions for over a decade. They've also been building linear infrastructure and major capital projects for decades,” says Cooke. “Canada has the geologists, engineers and the workforce from the oil and gas industry that can deliver the skills required to evaluate the subsurface, develop pipelines and build carbon capture facilities.” For companies and investors, this represents an opportunity to quickly establish a lead in a sector that will become increasingly important all over the world.
Canada: your destination for carbon management investment
Listen as Brendan talks about investing in carbon management in Canada
"Carbon management will be required to achieve climate objectives, but the potential for it to impact change comes down to the ability to bring projects to fruition."
Brendan Cooke, Vice President, Carbon Capture, Utilization, Storage, Rystad Energy
Canada recognizes the pivotal role of policy in accelerating the adoption of technologies like CCUS. Known for its supportive regulatory environment, the country ensures investors feel confident that they can access the support required for success. Canada’s competitive suite of carbon management incentives are comparable to those offered by the U.S. Inflation Reduction Act (IRA). Canada’s programs and incentives – including the CCUS Investment Tax Credit, the Canada Growth Fund and the Energy Innovation Program – are set up to provide substantial support for project development and deployment upon application approvals. At a provincial level, initiatives like Alberta's TIER carbon pricing and Carbon Capture Kickstart further encourage emission reductions and clean technology adoption. There is also the Alberta Carbon Capture Incentive Program, which offers grants to accelerate the development of CCUS. The Shell Energy and Chemicals Park in Scotford, Alberta exemplifies the power of collaboration, through its investments, technological advancements and incentives from both national and provincial governments. This flagship project, which captures and stores over 1 million tonnes of CO2 annually, demonstrates the effectiveness of Canada’s federal and provincial-level policy in driving large-scale CCUS deployment. A multilayered approach ensures that carbon management projects in Canada are not only environmentally sound but also economically viable, creating a win-win for investors and the planet. Canada's stable regulatory environment also provides long-term certainty for investors, ensuring that projects are not subject to sudden policy shifts.
How federal and provincial incentives cooperate, reduce risk and improve investment returns on CCUS projects
Canada’s estimated geological capacity for carbon sequestration – almost 550 times the volume of its 2022 CO2 equivalent emissions
Western Canada, especially Alberta, Saskatchewan and Manitoba, is the primary location for Canada’s strength in natural storage capacity, infrastructure and skills. “The geological subsurface regions, like Alberta and Saskatchewan, are world-class for storage," says Brendan Cooke, Vice President of Carbon Capture, Utilization, Storage at Rystad Energy. "The same is true for their understanding of the subsurface, given the history of oil and gas developments in those regions.” Alberta sits across 79 Gt of geological storage, offering immense potential to deploy carbon management technologies. Many of the province's high-emitting facilities are located close to storage locations, and CCUS infrastructure – such as CO2 transport pipelines and injection technology – is already in place. “Importantly, the region has a history of organizations that are able to deliver major capital projects, as well as the workforce and knowledge required for delivering carbon capture and storage developments,” adds Cooke. The 64 km Quest Pipeline has been operating since 2015 and can transport 1.2 Mt of CO2 per year. The Alberta Carbon Trunk Line started up in 2020 and has a full capacity of 14.6 Mt of CO2 per year. It’s estimated that as much as 104 Mt of CO2 per year could be captured from Alberta’s industrial sources, equivalent to more than 40% of the province’s total emissions for 2021. Unlocking this potential offers an unrivalled carbon management opportunity to investors.
Advantages in Western Canada
A robust CCUS infrastructure in Canada that accounts for 20% of installed CCUS capacity around the world, combined with its vast natural resources and strong industrial base, provides fertile ground for scalability. Canada’s geology is foundational for significant growth in carbon management. The country is estimated to have more than 389 gigatonnes (Gt) of prospective onshore carbon storage capacity. This capacity is almost 550 times the volume of Canada’s 2022 CO2 equivalent emissions of 708 megatonnes (Mt). The country’s natural geological advantage is partnered with existing industrial infrastructure and an experienced workforce. Canada is already home to more than 20,000 geoscientists and 300,000 engineers, and the oil and gas industry employs more than 100,000 workers with the potential to deliver the skills needed to deploy CCUS at scale.
Infrastructure, geology and an experienced workforce
Canada is an early leader in the carbon management sector. While progress in other parts of the world is still in blueprint stages, Canada has established operations and bold new projects in development. The moment of opportunity for investors is now. With the second-largest pipeline of CCUS projects globally, companies operating across Canada are already developing and deploying a range of technologies. These include CCUS; carbon dioxide removal (CDR); carbon management - direct air carbon capture and storage (DACCS); biomass carbon removal and storage (BiCRS); and enhanced carbon mineralization. And these technologies are not just theoretical solutions. Versions of CO2 transport and sequestration have been in operation since the 1970s, and carbon management is actively being deployed by fast-moving companies today, with support from some of the world’s largest organizations. As companies worldwide look for the best combination of technologies, infrastructure, skilled workforces and access to capital investment, Canada presents a compelling package to achieve success.
Carbon management technologies – innovative processes that capture, store, transport and use CO2 emissions – will play a crucial role in the global pursuit of net zero. For emissions-intensive sectors – such as steel, cement and refining – carbon capture, utilization and storage (CCUS) will be crucial to decarbonizing at the pace needed to meet companies’ and countries’ climate goals. Essential sectors that are extremely difficult to fully abate, including aviation and agriculture, will be required to offset their residual emissions with carbon removals. Carbon management technologies must scale up at a pace rarely seen in other industries. It’s an opportunity for investors to be at the forefront of this new and essential industry.
Canada's geology, infrastructure and skills offer investors unique opportunities
Creating the right conditions to invest
Canada: A global leader
QUEST — CO2, capture at bitumen upgrader
Glacier Gas Plant CCS — a modular carbon capture and storage project
Alberta Carbon Trunk Line — a CCUS hub
Weyburn-Midale — CO2 injection, monitoring, enhanced oil recovery and storage
Boundary Dam — CO2 capture at a coal-fired power station
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Canada’s refundable investment tax credits (ITCs) are designed to grow Canada’s clean economy. The Carbon Capture, Utilization and Storage (CCUS) ITC provides a refundable tax credit of:
The Alberta Carbon Capture Incentive Program (ACCIP) is designed to align with the federal CCUS ITC and other operating supports, such as contracts for difference
Saline aquifers
Operational commercial scale projects
Pipeline
Map Source: North American Carbon Storage Atlas
Map Source: Government of Canada, 2023
Map Source: Canada Energy Regulator, 2024
of the global pool of carbon management start-ups, including several XPRIZE winners, are based in Canada
25%
Canada offers investors a thriving ecosystem of innovation, attracting many carbon management startups. These include British Columbia-based Carbon Engineering, which is pioneering DACCS. Meanwhile, Canada has eight publicly funded research and testing facilities dedicated to developing and scaling up carbon management technologies, in addition to those run by universities and private organizations. A focus on international collaboration further strengthens Canada’s knowledge and skill base, ensuring new projects have access to the expertise needed for success. Canada is one of 24 members of Mission Innovation, an initiative dedicated to collaborative action, investment, research and development towards net zero. Meanwhile, Alberta is one of eight government members of the Global CCS Institute, ensuring the country is at the forefront of development. For investors, it means projects are not operating in isolation but benefit from shared knowledge and innovation taking place around the world.
Collaborating for innovation
Alberta Carbon Trunk Line (ACTL)
QUEST CCS pipeline
Boundary Dam to Weyburn CO2 pipeline
Souris Valley Pipeline
Increasing number of geological formations for potential carbon storage
Sedimentary basin
Source: Fasken
Source: Government of Alberta
for qualified carbon capture expenditures to capture carbon from emissions sources
Canada’s refundable investment tax credits (ITCs) are designed to grow Canada’s clean economy. The carbon capture, utilization and storage (CCUS) ITC provides a refundable tax credit of:
A robust CCUS infrastructure in Canada that accounts for 20% of installed CCUS capacity around the world, combined with its vast natural resources and strong industrial base, provides fertile ground for scalability. Canada’s geology is foundational for significant growth in carbon management. The country is estimated to have more than 389 gigatonnes of prospective onshore carbon storage capacity. This capacity is 580 times the volume of Canada’s 2023 CO2 equivalent emissions of 670 Mt. The country’s natural geological advantage is partnered with existing industrial infrastructure and an experienced workforce. Canada is already home to more than 20,000 geoscientists and 300,000 engineers, and the oil and gas industry employs more than 100,000 workers with the potential to deliver the skills needed to deploy CCUS at scale.
Technology, geology and the skills
Canada offers investors a thriving ecosystem of innovation, attracting many carbon management startups. These include British Columbia-based Carbon Engineering, which is pioneering direct air capture technology. Meanwhile, Canada has eight publicly funded research and testing facilities dedicated to developing and scaling up carbon management technologies, in addition to those run by universities and private organizations. A focus on international collaboration further strengthens Canada’s knowledge and skill base, ensuring new projects have access to the expertise needed for success. Canada is one of 24 members of Mission Innovation, an initiative dedicated to collaborative action, investment, research and development towards net zero. Meanwhile, Alberta is one of eight government members of the Global CCS Institute, ensuring the country is at the forefront of development. For investors, it means projects are not operating in isolation but benefit from shared knowledge and innovation taking place around the world.
Cardinal Energy Midale CO2 pipeline
Solar PV
Wind power
Glacier Gas CCS — a modular carbon capture and storage project
for qualified carbon transportation, storage and use expenditures
for qualified carbon capture expenditures to capture carbon from ambient air
grant for the new eligible CCUS capital cost for hard-to-abate industries
The natural place to invest in renewable energy
Canada’s world rankings for wind energy capacity
Source: World Population Review, 2024
Top 10
Percentage of Canada’s electricity generation from wind and solar sources in 2022, suggesting a major opportunity for businesses to scale deployment
6.6%
Canada's diverse climate and topography make it one of the world’s most promising locations for investment in renewable energy. The landmass is vast, with abundant sunlight and strong winds, and Canada is well-positioned to provide renewable power and low-carbon products. The country’s energy transformation mission of achieving a net zero electricity grid by 2035 will require a sevenfold increase in renewable capacity. Private investment is essential to clean energy, and those who seize this opportunity stand to reap significant returns. Companies that operate in Canada also benefit from the country’s stable political landscape, skilled workforce and strong commitment to sustainability. All in all, renewable electricity generation is a cornerstone of Canada’s sustainability value proposition.
A potential as impressive as Canada’s landscape
Canada’s pathway to its renewable energy target is supported by a collaborative approach between the federal government and individual provinces. Recognizing the scale of the challenge, both levels of government are actively engaging with private companies, fostering partnerships to accelerate the development and deployment of renewable energy solutions. This collaborative spirit in turn creates a fertile ground for innovation and investment, ensuring a smooth and successful transition to a cleaner energy future. And it presents a golden opportunity for forward-thinking renewable energy developers.
Canada's renewable energy pipeline
Canada has long been – and continues to be – a global leader in hydropower, and its vast landmass and skilled workforce are fuelling a burgeoning wind and solar industry. It’s an industry that’s bolstered by Canada's world-class research and development capabilities in renewable energy technologies. Leading universities and research institutions across the country – such as the Clean Energy Research Centre at the University of British Columbia and the Future Energy Systems at the University of Alberta, as well as multiple CanmetENERGY research centres – are at the forefront of innovation, developing cutting-edge solutions that are driving down costs and improving efficiency.
Natural attributes creating opportunities
globally in per-capita energy consumption by the end of 2022, partly due to Canada’s immense size and diverse climate; to achieve a net-zero electricity grid by 2035, Canada requires significant increases in renewable capacity
Source: Energy Institute
Canada's provinces are creating the right conditions for renewable energy investors, actively seeking new installations to meet their electricity demands and climate goals. Tax credits and incentives, such as Clean Economy Investment Tax Credits, are encouraging businesses to invest. Coupled with the country's competitive operating costs and business-friendly tax environment, these make it an attractive destination for renewable energy investments. Moreover, Canada's strategic location, with access to both the U.S. and European markets, makes it a launchpad for global companies looking to expand their reach – further solidifying Canada’s position as a leader in the global energy transition. With 224 energy projects underway or planned for the next decade (as of 2023) representing a potential investment of $156 billion, the future of Canadian renewables is bright. And in a country so large and diverse, there’s still so much potential for further renewable energy opportunities.
Incentivizing investment in renewables
invested across 31 wind projects
$12.3 billion
The UN forecasts that 65% of the world’s total electricity supply could come from renewable sources by 2030, with electricity’s share in final energy consumption likely to be as high as 30% by that same year. As of late 2023, Canada had some 200 major solar energy projects and around 48,000 solar energy installations across residential, commercial and industrial locations. The western province of Alberta, with its abundant sunshine, deregulated energy market and skilled workforce, is a prime example of the nation’s solar potential. Alberta is home to Canada’s largest single solar installation: the 465 megawatt (MW) Travers Solar Project, originally developed by Greengate Power of Calgary. Greengate Power has a number of wind and solar projects operating or in development across the province, and its CEO Dan Balaban is a strong proponent for renewables investment. “We have growing needs for power in this province [Alberta],” Balaban told the Global Energy Show in 2021. “There’s electrification going on in the world, an energy transition going on in the world, and I think all that points to increasing demand for power going forward. I believe a significant chunk of that new power demand in Alberta going forward can come from renewables.”
Harnessing the wind and the sun
invested across 31 solar projects
$6.2 billion
Dan Balaban, CEO, Greengate Power
I believe a significant chunk of new power demand in Alberta going forward can come from renewables.
Potential investment value of Canadian wind and solar projects over the next 10 years
Source: Government of Canada
Emissions reduction that Canadian biodiesels can offer compared to fossil diesel
Canada's diverse climate and topography make it one of the world’s most promising locations for investment in renewable energy. The landmass is vast, with abundant sunlight and strong winds, and Canada is well-positioned to provide renewable power and low-carbon products. The country’s energy transformation mission of achieving a net-zero electricity grid by 2035 will require a sevenfold increase in renewable capacity. Private investment is essential to clean energy, and those who seize this opportunity stand to reap significant returns. Companies that operate in Canada also benefit from the country’s stable political landscape, skilled workforce and strong commitment to sustainability. All in all, renewable electricity generation is a cornerstone of Canada’s sustainability value proposition.
The UN forecasts that 65% of the world’s total electricity supply could come from renewable sources by 2030, with electricity’s share in final energy consumption likely to be as high as 30% by that same year. As of late 2023, Canada had some 200 major solar energy projects and around 48,000 solar energy installations across residential, commercial and industrial locations. The western province of Alberta, with its abundant sunshine, deregulated energy market and skilled workforce, is a prime example of the nation’s solar potential. Alberta is home to Canada’s largest single solar installation: the 465 MW Travers Solar Project, originally developed by Greengate Power of Calgary. Greengate Power has a number of wind and solar projects operating or in development across the province, and its CEO Dan Balaban is a strong proponent for renewables investment. “We have growing needs for power in this province [Alberta],” Balaban told the Global Energy Show in 2021. “There’s electrification going on in the world, an energy transition going on in the world, and I think all that points to increasing demand for power going forward. I believe a significant chunk of that new power demand in Alberta going forward can come from renewables.”
Balaban has pointed to lower costs for solar panels, strong performance on environmental, social and governance metrics, and steady long-term returns for investors as reasons for investment flowing into renewables. Wind power is another important aspect of Alberta’s power output with 1.6 gigawatts (GW) of new wind capacity coming online in 2023, bringing the province’s total capacity to more than 4.4 GW. As another example, Québec – Canada’s largest generator of electricity – aims to triple its wind capacity to more than 10 GW by 2035 and is calling for developers to submit plans to meet this target. The Atlantic provinces, such as Newfoundland & Labrador and Prince Edward Island, are also key locations for wind power. In fact, these two provinces have some of the highest wind speeds on the planet. All this means that wind energy installations have outpaced all other forms of power generation over the last decade, with almost 17 GW installed across the country at the end of 2023, according to the Canadian Renewable Energy Association. Beyond its cost-effectiveness, wind energy is also playing a pivotal role in decarbonizing other sectors. Several large and innovative projects in Atlantic Canada are underway to produce green hydrogen and ammonia; this is opening new avenues for Canada to become a global leader in clean hydrogen exports, especially to Europe.
Annual installations
Annual installations Cumulative
(2007-2022, in megawatts)
Cumulative
Annual instalations
