OTTAWA, ON (April 20, 2021) On Monday, April 19, 2021, the Government of Canada released its first budget in two years. Entitled A Recovery Plan for Jobs, Growth and Resilience, it advances several initiatives related to NGIF’s interests, including those on greenhouse gas intensity, energy efficiency, and cleantech innovation.
“NGIF is a catalyst in the innovative, cleantech ecosystem. Given the Government of Canada’s ambitions for a resilient, green economy and its declared focus on growth, it is evident that NGIF is uniquely positioned to work with public officials. Our efforts are concentrated on improving environmental performance and strengthening resiliency, all while ensuring Canadians have ready access to affordable, reliable energy,” notes John Adams, President and CEO of NGIF Capital Corporation and Managing Partner of NGIF Cleantech Ventures. “Supporting clean innovation is a critical component to the overall success of our energy future.”
In her budget remarks, Deputy Prime Minister and Minister of Finance Chrystia Freeland stated that “Building for the future means investing in innovation and entrepreneurs.” Adams commented that “Over the last decade, the cleantech sector has been driving innovation and entrepreneurship. Our work at NGIF is a key example of this. Any effort to make a better energy system turns on the kind of innovation investment we are making, and we hope the Government recognizes it and will work with us.”
Highlights from Budget 2021 for the cleantech innovation sector that NGIF will be tracking closely include:
- $17.6 billion dedicated to climate and environmental initiatives to accelerate solutions leading to environmental performance improvements.
- $390 million made available through the Venture Capital Action Plan and $450 million for a renewed Venture Capital Catalyst Initiative to scale up, create Canadian jobs, invest in innovation, and be globally competitive.
- The Strategic Innovation Fund’s Net Zero Accelerator will allocate up to $8 billion —an increase of $5 billion—to help support a cleaner, more resilient domestic market for Canada’s own clean technology innovators.
- The introduction of an investment tax credit for capital invested in carbon capture, utilization and storage projects with the goal of reducing emissions by at least 15 megatonnes of CO2 annually. Projects for enhanced oil recovery are not foreseen to be eligible.
- Interest-free loans for Canadian families to complete retrofits of their homes and lower their energy bills. $778.7 million over five years with $414.1 million in future years to help homeowners make their homes energy efficient through interest-free loans worth up to $40,000.
NGIF has also noted and will be watching actions on the following:
- The commitment to reduce emissions by about 36% below 2005 levels by 2030, achieving reductions beyond Canada’s current target of 30%.
About NGIF Capital Corporation
NGIF Capital Corporation is a Canadian venture capital (VC) firm offering grant and equity financing for startups that deliver solutions to the environmental and other challenges facing the natural gas sector. NGIF Capital Corporation is unique in how it brings Canada’s energy industry leadership to every investment. Like other VCs, it takes new companies and their ideas from concept to commercialization. However, unlike other VCs, NGIF Capital Corporation has strong connections to every part of the gas value chain, from production through to end-use, offering it a means to test, develop, and accelerate the commercial implementation of innovative gas technology wherever it fits in the sector. The model benefits consumers, investors, and Canadian society as a whole. NGIF Capital Corporation operates NGIF Industry Grants (the original Natural Gas Innovation Fund), the NGIF Emissions Testing Centre, and NGIF Cleantech Ventures.
NGIF Capital Corporation
President and CEO
NGIF Capital Corporation