Session Two:

Short Term Tactics & Legal Obligations

The second Future Proofing Canada session focused on securing the long-term viability of Canada’s cleantech businesses amid shifting trade dynamics. Discussions covered:

• Immediate actions businesses can take to mitigate the impact of tariffs.
• Legal obligations and compliance requirements in the current trade environment.
• Short-term strategies to build a more resilient and competitive Canadian economy.
• Sector-specific challenges and opportunities, fostering knowledge-sharing and problem-solving.

Watch the Recording

What Built Environment Innovators Need:

• Clarity on exemptions: Uncertainty remains around final exemption decisions, similar to steel tariffs. Reducing uncertainty is crucial for strategic planning.
• Internal preparedness: Companies must prepare for worst-case scenarios while staying agile as regulations evolve.
• US market insights: Understanding that US business leaders anticipated trade conflicts can help Canadian companies adopt proactive measures to navigate the evolving environment.
• Strategic proactivity: Monitoring emerging trends and adapting accordingly will help maintain a competitive edge and position the sector for long-term success.
• Contingency plans for manufacturing and labour shifts: Relocating manufacturing or labor to the US is seen a last resort, but strategic planning is needed to mitigate risks.
• Stability for suppliers: Addressing the heightened uncertainty among Canadian suppliers is crucial to ensuring stability in the supply chain and supporting strategic planning.

What Energy and Storage Innovators Need:

• Market expansion strategies: Overcoming barriers to market entry and expansion remains a top challenge for companies. Support is needed to overcome these barriers and increase competitiveness.
• Diversified investment sources: The dominance of US capital is prompting some companies to explore European funding opportunities. Access to a broader range of investors is crucial for financial stability.
• Strategic expansion solutions: Establishing US subsidiaries with local manufacturing is being considered as a growth strategy. Guidance on international expansion and local production would strengthen global competitiveness.
• Access to capital: Concerns about limited capital in Canada compared to the US are widespread. Companies need expanded funding opportunities to sustain growth and innovation.

What Energy Fuels and Alternatives Innovators Need:

• Market adoption and confidence: Skepticism around alternative fuels (e.g., hydrogen, ammonia) is slowing adoption. Incentives and education are needed. Education and incentives are needed to build confidence.
• Faster market entry for solutions: Energy transportation is linked to national sovereignty, but alternative fuel solutions are slow to reach the market. Regulatory approvals and commercialization pathways must be streamlined to improve competitiveness.
• End-user education and engagement: End-users need to be better informed about the benefits of alternative fuels. Greater awareness of alternative fuel benefits could drive adoption and position Canada as a key exporter to markets like Europe.

What Carbon Innovators Need:

• Equivalent solutions: Canadian businesses need domestic alternatives for key technologies that currently rely on foreign solutions. Support is required for scenarios where no direct equivalent exists.
• Strategic planning: Many companies are still in the early stages of assessing market dynamics and need guidance.
• Carbon tax clarity: Companies need clear and consistent carbon tax policies, as uncertainty around industrial carbon taxes is impacting business planning.
• US policy stability: Businesses need reliable information on US policies, particularly regarding the 45Q tax credit, to make informed investment decisions.
• Market certainty: Unclear policies are leading to delays in sector momentum. The sector needs a stable policy environment.
• Operational capacity: Startups need resources to manage administrative overhead and compliance requirements when operating in both Canada and the US, including access to tariff specialists.
• Market entry support: Companies need support to enter the US market faster, as delays are seen as strategic disadvantage.
• Strategic resilience: Businesses need strategies to manage setbacks while pursuing long-term growth opportunities.
• Resource coordination: A centralized database of suppliers, market intelligence, and matchmaking support would benefit companies navigating the evolving carbon market.

What Circular Bioeconomy Innovators Need:

• Tariff clarity: Businesses need guidance on how new tariffs will impact operations, particularly for products that may not qualify for exemptions.
• Equipment investment confidence: Companies require assurance that equipment investments will not be negatively impacted by ongoing market uncertainty.
• Shipping and customer retention: Shipping delays and tariff-related challenges risk eroding customer loyalty and repeat business.
• Exploring new markets: Companies are exploring alternative international markets, such as Sri Lanka and Vietnam, to mitigate the impact of cross-border tariffs.
• Resource allocation for tariffs: Companies need guidance on how much resources to invest in managing tariff-related risks amid ongoing uncertainty.

What Digital Innovators Need: 

• Market stability: With rising competition from global players outperforming AI venture capitalists, AI and blockchain companies need strategies to navigate the challenges posed by market corrections and overvaluation.
• Open-source technology access: Expanding open-source technology and data availability is critical for AI development.
• Transparency and efficiency: Companies need stronger domestic AI and automation capabilities to remain competitive.
• Tariff impact: Digital innovators need to prepare for the impact of tariffs on hardware sourcing, as well as the potential challenges for end-users. The uncertainty presents both risks and opportunities for digital solution providers.
• Data accessibility: AI advancements are increasingly dependent on access to data, yet limited access remains a significant challenge for researchers and institutions trying to develop and scale solutions.
• Web3 & infrastructure data: Web3 initiatives, such as Decentralized Physical Infrastructure Networks (DePIN), create valuable data from infrastructure, which could be leveraged for a variety of applications, providing new opportunities for innovation.
• Regulatory compliance: With AI's rapid growth, businesses need strategies to navigate the emerging regulations around data management, accessibility, and security, ensuring they comply while optimizing the use of data in their AI models.

What Water and Wastewater Innovators Need:

• Market diversification: Water tech companies need strategies to diversify their markets beyond the US and explore international opportunities as demand for water solutions grows.
• Political implications of US demand: As the US looks increasingly to Canada for water resources, businesses need to anticipate the potential political dimensions of cross-border water supply, and prepare for the impact on the sector.
• Government resources: Water innovators need better access to government resources and support programs. They require clear guidance on where to find resources and how to tap into available innovation-focused support.
• Water pricing incentives: There is a need for water pricing strategies that incentivize the adoption of water technologies. If water pricing reflects the true cost and offers potential savings through conservation, it could drive greater adoption of water-saving technologies.