With a first place for available funding and a second for early entrepreneurship, Canada has jumped three spots in a global cleantech ranking to hit the number 4 position. The 2017 Global Cleantech Innovation Index (GCII) was released this week by the Cleantech Group and WWF with support from other organizations.
According to the 2017 GCII, funding available for cleantech innovations in Canada was its big strength. This includes the number of cleantech funds, even if there are only a few cleantech organizations and clusters. The country is a joint top-scorer for the amount of venture capital investment, alongside three other countries. The report also noted that Canada has several companies in the Global Cleantech 100. (Canadian Green Tech wrote about Canada’s presence on the prestigious list HERE.)
Late-stage investment is also well established in Canada, said the GCII with the country ranking high for public cleantech companies and merger and acquisition activity, leading to a strong score for evidence of commercialized cleantech.
"Canada has strong innovation potential to contribute to our common goal of fully decarbonizing the global economy and achieving the Paris Agreement objectives on climate change. We are performing well in funding and entrepreneurship, but must really step up when it comes to nurturing those startups into robust, commercialized solutions. With continued investment in cleantech innovation, Canada will be well placed to lead the global transition to a low-carbon economy,” said David Miller, president and CEO at WWF-Canada.
The top three positions are held by Denmark, Finland and Sweden. All three appear to be gearing up for additional growth with increases in the numbers and amount of cleantech funds. Globally, the Nordic region has the strongest cleantech start-up creation leadership for the first time. The region provides the best conditions today for clean technology start-up creation according to the third edition of the GCII.
The study covers 40 countries, including all of the G20. The index demonstrates that countries get ahead if they are:
- Able to adapt to the growing demand for renewable energy (at home and abroad);
- Connecting start-ups with multiple channels (e.g. multinational corporates, public procurement) to increase their success rates; and
- Increasing international engagement to spur widespread adoption of clean technologies.
The GCII also shows there is strong emerging convergence between clean transportation, energy efficiency and renewable energy, last year accounting for two thirds of early-stage venture capital investments, and a similar proportion of green bonds. This emerging trend is crucial to accelerate towards achieving universal energy access by 2030, and facilitate a just transition to a sustainable and fossil fuel-free energy system by 2050.
The report identifies a positive correlation between inputs to innovation and outputs of innovation. Countries that are facilitating investments in innovation, either through public R&D, cleantech-friendly policies, or any other of the inputs measured, tend to also reap benefits. These come in the form of commercialization of cleantech companies in terms of jobs, exports and growing numbers of publicly traded companies showing strong growth in order to reduce environmental pressure.