This story was originally published by Advisor’s sister magazine, Canadian Business.
Prior to 2014, Canada’s clean technology industry was growing at four times the rate of the country’s overall economy. Currently, it has 774 firms—that’s in comparison to the aerospace industry’s 700 and the automotive industry’s 450—and employs more Canadians than the forestry, pharmaceutical or medical device industry.
If these numbers surprise you, you’re probably not alone. The 2016 Canadian Clean Technology Industry Report—released by Analytica Advisors—aims to address the the lack of support for, and awareness of, Canada’s cleantech sector.
The Canadian clean technology industry operates across ten sectors, and the term is used to encompass all companies that use renewable solutions: everything from recycling to renewable energy to green transportation.
Though the industry experienced a growth rate of 10% from 2013 to 2014, it’s expected to slow to 5% between now and 2020. There are a number of factors contributing to that decline, but observers and leaders in the industry says financing is the chief hurdle right now.
“We know that the number one barrier that the industry has identified is financing,” says Celine Bak, CEO of Analytica Advisors. Analytica’s report identifies Canadian financial institutions “not rising to the challenge” of supporting cleantech companies, and charging too much for debt financing, as a major issue facing the industry.
To read the full story, visit Canadian Business.