Transcript Show Me The Money” (A guide through the funding program maze)

”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)
•Exports Sales (2002)
•Trade Deficit (2000)
•Employment
•Companies
- $15.8 B
- $ 1.4 B
- $ 1.1 B***
- 160,000
- 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
GHG emissions 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:
o cost-share clean energy projects and other initiatives
with provinces & territories to meet GHG emission
reduction targets
o complement support provided through Climate Fund
o target strategic large and local projects deemed
priorities by both levels of government
o 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
$Million
• Technology & Innovation
• Individual Canadians
• Industry & Business
270
131
o Energy Efficient Buildings
129
154
321
1005
o Energy Efficient Transportation
• Governments & Communities
Total
Key Funds
($M)
100*
2.5B**
30*
63
550
500+
200
850*
3.65B
920M***
N/A
Program
Duration
Industrial Research Assistance Program (IRAP)
Technology Partnerships Canada (TPC)
TPC – IRAP
Technology Early Action Measures (TEAM)
Sustainable Development Technology Canada
Green Municipal Fund
Natural Sciences & Eng. Research Council of Canada
Canada Foundation for Innovation
Wind Power Production Incentive
Scientific Research & Experimental Development Program
Renewable Energy/Conservation Tax Incentives
Continuous
Revolving
Revolving
2004-2008
2002-2010
Revolving
Revolving
Continuous
1997-2010
2002-2017
Permanent
*= $ for 2004 / 2005
** = as of Nov 30,04; 17%<ETs
***=$ announced in Budget 2005
Federal Funding
Programs
Funding Spectrum
Sustainable Development
Technology Canada (SDTC)
• Established in 2001 as a response to Kyoto
o Total of $550M
o $350M + $200M (Budget 2004)
o $169M Allocated as of Oct 05
• Climate Change & Clean Air, Water & Soil Techs
o Development & demonstration
o Emphasis on strong partnerships
• Funding Specifics:
o
o
o
o
9th Funding Round
open Jan 2006
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
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
o loans & loan guarantees for such projects
o 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 contributions 04-05
• Cost-shared contributions (see notes)
• Delivered through national network of
Industrial Technology Advisors (ITAs)
Renewable & Electrical Energy
(NRCan)
• Wind Power Production Incentive (WPPI)
o
o
o
Provides financial support to electricity producers
Incentive on production
5 year program, $200M
• Renewable Power Production Incentive (RPPI)
• $170M over the next 6 years, with a total of $886M over 15 years
• Stimulates development, installation & use of new, renewable*, electricitygenerating capacity (up to 1500 MW)
* biomass, hydro, landfill gas (not for wind energy)
• Renewable Energy Deployment Initiative (REDI)
o
o
9 year, $51M renewable energy incentive program
For purchase & installation of qualified systems:

o
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:
o 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
o
SDTC, TEAM, IRAP, TPC, h2EA, PERD, GMF, NSERC, CFI, ACAAF,
WPPI
Smaller National Funding Programs
o
TPC-IRAP, FSDP, FIP, CFCAS, REDI, MIP, IERD, ETP, RETP, EII, BETP
Regional Funding Programs
o
FEDNOR, ACOA/AIF, CED/DEC, WD
Tax Incentive Programs
o
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: [email protected]
Web: http://www.ec.gc.ca/