GOVERNMENT FUNDING

Innovation, Science and Economic Development Canada (ISED) announced a Government of Canada investment of more than $308 million to advance science and research across the country. More than $142 million will be distributed through the New Frontiers in Research Fund’s Transformation stream, which supports large-scale, Canadian-led, interdisciplinary research projects that address major challenges and have the potential to realize real and lasting change. Some of the projects funded include supporting Indigenous-centred brain health assessment; developing new smart wear technology to assist persons with disabilities; and removing and storing carbon dioxide to reduce the impacts of climate change. Additionally, more than $153 million will support 179 new and renewed Canada Research Chairs at 38 research institutions. These investments will advance research and critical innovations in areas including responsible artificial intelligence; multigenerational trauma and resilience in First Nations Peoples; land-ocean biogeochemistry; nanomaterials for regenerative medicine; transmission and knowledge of the Inuit language; RNA-targeted drug discovery and more. As a partner of the Canada Research Chairs Program, the Canada Foundation for Innovation is also committing nearly $4.3 million through its John R. Evans Leaders Fund to support 17 research infrastructure projects at 12 institutions. More than $9 million of the total funding will be allocated through the Natural Sciences and Engineering Research Council of Canada’s (NSERC) PromoScience Program and NSERC Awards for Science Promotion. This funding supports organizations that engage young Canadians in promoting science and engineering, including mathematics and technology, and recognizes individuals and groups who inspire others through their efforts to share science with the public. ISED

Prime Minister Mark Carney ended Canada’s consumer carbon tax effective April 1 through an order-in-council. "This will make a difference to hard-pressed Canadians, but it is part of a much bigger set of measures that this government is taking to ensure that we fight against climate change, that our companies are competitive and the country moves forward," Carney told reporters. He said Canadians who have received carbon rebates will still get their next cheque on April 15. The action essentially neutralizes the “axe the tax” strategy that Conservative Leader Pierre Poilievre has been using against the Liberals for more than two years. Poilievre accused Carney of trying to “hide” the tax, saying until Parliament is recalled, the current carbon tax law “will be the law of the land.” B.C. Premier David Eby announced that his government would be drafting legislation to scrap his province’s consumer carbon tax. A federal industrial carbon tax on large emitters remains in place. CBC News

Finance Canada announced reciprocal tariffs on the U.S. in a list of steel products worth $12.6 billion and aluminum products worth $3 billion, as well as additional imported U.S. goods worth $14.2 billion, for a total of $29.8 billion. The list of additional products affected by counter tariffs includes tools, computers and servers, display monitors, sports equipment and cast-iron products. These tariffs are in addition to Canada’s 25-percent counter tariffs on $30 billion of imports from the U.S., in response to U.S. International Emergency Economic Powers Act (IEEPA) tariffs put in place on March 4. Finance Canada said that unless IEEPA tariffs and other unjustified U.S. tariff threats are addressed, Canada will apply counter tariffs on additional imports from the U.S. on April 2 following the public comment period. The scope could also be further increased if new tariffs are imposed and all options remain on the table for responding to unjustified tariffs on Canada. Finance Canada

Innovation, Science and Economic Development Canada (ISED) announced a $60-million contribution through the Strategic Innovation Fund to Delpharm Boucherville Canada Inc. This investment will support Delpharm’s $220-million project to modernize and expand its facility in Boucherville, Quebec, increasing its capacity to manufacture sterile injectables, many of which are essential medicines used on a daily basis by Canadians and in hospitals. Through this project, Delpharm will add 28,000 square feet to its Boucherville facility and install new state-of-the-art equipment. This will double production capacity to approximately 130 million units per year. ISED said This expansion will significantly enhance Canada’s ability to produce essential sterile injectables for domestic use and the export market. Delpharm Boucherville Canada Inc. is part of the global network of Delpharm Industrie SAS, a leading global contract development and manufacturing organization for pharmaceutical companies, located in Paris, France. ISED

Environment and Climate Change Canada (ECCC) announced that the Government of Canada and the Ktunaxa Nation are advancing a co-developed approach to allocate $58 million in funding to deliver projects that restore, enhance and conserve fish and fish habitat in British Columbia’s Kootenay Region, focused on benefiting Qukin ʔamakʔis (Elk Valley). The funding comes from a 2021 landmark penalty paid by Teck Coal Limited to the federal government’s Environmental Damages Fund. This approach includes non-competitive, project-based funding of up to $30 million for Ktunaxa First Nations and the Ktunaxa Nation Council, as well as up to $6 million each available for other Kootenay Region First Nations, namely the Shuswap Band and the Okanagan Nation Alliance. This funding will support the communities’ ability to deliver projects that enhance, restore or conserve fish or fish habitat. It will also be used to carry out research and development to improve the understanding of issues related to the enhancement, conservation or restoration of fish or fish habitat. In addition, $16 million will be available to fund projects through an open, competitive call for applications co-developed by ECCC and the Ktunaxa Nation. ECCC

Innovation, Science and Economic Development Canada (ISED) announced a total of $36.6 million, from the Strategic Innovation Fund (SIF), in additional funding for five SIF networks to attract large-scale investments to Canada. The recipients are:

• The Canadian Food Innovation Network (CFIN) is receiving an additional $8.6 million to accelerate cutting-edge research and development in food processing and production technologies. Since April 2021, CFIN-funded companies have created over 350 new jobs and leveraged $21 million in private sector investment. 
• The Canadian Agri-Food Automation and Intelligence Network (CAAIN) is receiving an additional $8 million to help agricultural producers and the agri-food value chain boost productivity through automation and artificial intelligence. Since July 2019, CAAIN has supported the creation and maintenance of over 500 high-quality jobs and leveraged $67.6 million in private-sector investment.
• The Clean Resource Innovation Network (CRIN) is receiving an additional $10 million to accelerate the development and adoption of innovative technologies and processes that aim to lower the oil and gas industry’s environmental impacts. Since July 2020, CRIN has supported the creation of over 200 jobs and leveraged $150 million in private sector investment.
• Natural Products Canada (NPC) is receiving an additional $5 million to accelerate the innovation and commercialization of products in the bioeconomy that support human, animal and plant wellbeing. Since August 2021, NPC has supported the creation of over 130 new jobs and leveraged nearly $15 million in private sector investment in its projects.
• The Mining Innovation Commercialization Accelerator (MICA) is receiving an additional $5 million to contribute to innovation and modernization efforts in mining, strengthen industry supply chains, and increase the domestic and export sales of new products. Since January 2021, MICA has created and maintained over 435 jobs and mobilized investments of approximately $170 million from the private sector.

The SIF has contributed nearly $1.1 billion to support 14 networks in key emerging technology sectors, which have in turn funded over 750 small and medium-sized enterprises through nearly 650 collaborative projects, ISED said. These networks have leveraged over $1.7 billion in additional funding from the private sector and other sources, attracted over 17,000 members to their respective innovation ecosystems and created over 1,200 jobs. ISED

National Defence announced the implementation contract award to Irving Shipbuilding (ISI) in Halifax for the construction of three River-class destroyers. With an initial value of $8 billion (including taxes) intended to fund the first six years of construction, this contract supports the construction and delivery of an initial three ships as well as the development and delivery of necessary training, spares and maintenance products required to operate and support the ships in service. Following extensive analysis, the Government of Canada has established the cost to build and deliver the first three ships at $22.2 billion (excluding taxes). This estimate includes the costs that will be paid to ISI through the implementation contract, as well as costs associated with the delivery of equipment, systems and ammunition that Canada will be acquiring to bring the first three ships into service. National Defence said the new destroyers will provide decisive combat power for operations at sea and in support of joint-force operations ashore, and will support missions conducted as part of counter-piracy, counter-terrorism, intelligence and surveillance, interdiction and embargo, humanitarian assistance, research and rescue, and enforcement of law or sovereignty. National Defence

Public Services and Procurement Canada (PSPC) announced that the Government of Canada has awarded a $3.25-billion contract (before tax) to Chantier Davie Canada Inc. (CDCI) for the construction of one of the Canadian Coast Guard’s (CCG) new polar icebreakers under the National Shipbuilding Strategy. As part of its fleet renewal plan, the CCG is acquiring two polar icebreakers. The other polar icebreaker is being built by Seaspan’s Vancouver Shipyards. These larger, more powerful polar icebreakers will ensure the CCG’s operations continue at higher latitudes for longer periods, while allowing its fleet to better support Indigenous Peoples, strengthen Arctic security, advance high Arctic science and better respond to maritime emergencies. Chantier Davie will be building this ship in Lévis, Quebec. To accelerate its production, Chantier Davie will also leverage its Canadian-owned shipyard in Finland, Helsinki Shipyard. PSPC

Housing, Infrastructure and Communities Canada (HICC) announced a federal investment of more than $156.8 million in eight electrical infrastructure projects across British Columbia to electrify key infrastructure and support a future with more energy efficient and sustainable communities. This funding is provided through the Green Infrastructure Stream of the Investing in Canada Infrastructure Program, which supports the reduction of greenhouse gas emissions and the expansion of clean energy. The projects include:

• BC Hydro‘s North Coast Electrification initiative will include increasing the transfer capacity of the existing 500-kilovolt (kV) transmission line from Prince George to Terrace by constructing three new capacitor stations along the line. The additional capacity is needed to help meet the growing demand in the region for clean, reliable electricity.
• In Surrey and Duncan, BC Hydro will design and construct infrastructure to enable the full electrification of the Surrey Hospital and BC Cancer Centre, and the Cowichan District Hospital. These projects will support the construction of two new hospitals in B.C., and will provide both with clean, renewable energy.
• In the Peace River region, eight kilometres of a new 230-kV transmission line and a new substation will be constructed. This will electrify Westcoast Energy’s CS16 facility. Additionally, BC Hydro will electrify the NorthRiver Midstream’s Dawson processing facility by connecting them to the province’s electricity grid with 10 kilometres of a new transmission line that extends from the point of interconnection on the existing line to the processing facility.
• Funding will also go towards transmission infrastructure in Hudson’s Hope, Dawson Creek, and Fort St. John. HICC

Natural Resources Canada (NRCan) announced an investment of $10 million, through NRCan’s Greener Neighbourhoods Pilot Program, in CityHousing Hamilton. The funding will help reduce energy consumption by more than 60 percent in affordable housing units. Through this project, 123 CityHousing Hamilton townhouses will undertake deep energy retrofits, extending the life of the buildings, increasing tenant comfort in all seasons, reducing greenhouse gas emissions and improving energy efficiency. The Canada Mortgage and Housing Corporation is also contributing $14.3 million toward this project and CityHousing Hamilton is contributing an additional $2.6 million. These retrofits are expected to reduce greenhouse gas emissions by 90 percent and energy use by 61 percent in the units. NRCan

Women and Gender Equality Canada (WAGE) announced up to $8.2 million for nine projects aimed at breaking down systemic barriers and enhancing women's economic participation and success in Canada. These initiatives will strengthen partnerships, training and resource development and provide leadership opportunities. The outcomes of these projects will aim, among other goals, to empower women and girls to pursue occupations in STEM, strengthen and advance their economic opportunities and prosperity, and foster pathways for the growth of Indigenous women and youth. Prime Minister Mark Carney dropped the WAGE department and Minister Marci Ien from his newly announced cabinet, a move being criticized by several organizations and individuals that want WAGE reinstated. WAGE

Natural Resources Canada (NRCan) announced the federal government is more than tripling the funding for a program – to $8.8 million from $2.4 million – to help Yukon homeowners switch to energy-efficient heat pump systems, which will help households save money, ensure year-round comfort and reduce greenhouse gas emissions. The Yukon’s Affordable Heat Pump Program was launched in December 2024 with funding from the federal government’s Oil to Heat Pump Affordability Program and the Low Carbon Economy Fund. As part of the program, low- to median-income Yukon homeowners are eligible for a rebate of up to $24,000 to install a high-efficiency heat pump, and Yukoners with oil-heated homes are eligible to receive an additional upfront payment of $250 for a heat pump. NRCan

 Fisheries and Oceans Canada announced over $7.6 million for four projects in British Columbia under the Aquatic Ecosystems Restoration Fund (AERF). This fund supports aquatic restoration projects helping to address the root causes of impacts on coastal and marine environments, including Canada’s coastline, estuaries and inland regions. Funding recipients are:

• Raincoast Conservation Foundation, more than $2.6 million over three years to monitor and restore degraded habitat along the Lower Fraser River and estuary by building a more connected and productive habitat network for out-migrating juvenile salmon.  
• Pacific Salmon Foundation, more than $2.2 million over three years to develop open-access resources and decision support tools for eelgrass, tidal marsh and kelp restoration projects in the Salish Sea.
• Pacheedaht First Nation, more than $2.3 million over three years to mitigate the loss of salt marsh and eelgrass habitat using habitat restoration at three sites in the Gordon River and San Juan River estuaries.
• Guardians of Our Salish Estuaries, $435,000 over three years to transform future salt marsh restoration efforts by modifying traditional fish trap techniques to restore and protect productive sedge marsh habitats. Fisheries and Oceans Canada

 The Atlantic Canada Opportunities Agency (ACOA) announced an intention to invest (pending contract signatures) just over $7 million in 11 organizations in Dartmouth, Nova Scotia. The investment will help businesses grow their workforces, streamline operations, increase production reach new markets and prioritize energy efficiency. The largest investment is a total of more than $4.87 million ($875,000 non-repayable from ACOA and $4 million from Natural Resources Canada) in EfficiencyOne, a not-for-profit organization that provides energy-efficiency services. This funding will help lower the cost of energy audits and assessments for manufacturing facilities across the province. ACOA

Fisheries and Oceans Canada announced a federal investment of more than $7 million in projects to restore and rebuild wild Atlantic salmon populations and their habitats. In addition to $6.1 million for existing projects, the government is also investing $1 million for the 2025-26 fiscal year to support new projects focused on Atlantic salmon conservation and the objectives set out in Canada’s first-ever wild Atlantic salmon conservation strategy. A call for proposals process will be launched in the coming months for projects specifically targeting Atlantic salmon. Fisheries and Oceans Canada

The Atlantic Canada Opportunities Agency (ACOA) announced a nearly $2.57-million  investment to support the delivery of Emergence 4.0 by the Prince Edward Island BioAlliance. This investment will enhance the capacity of the Emergence bioscience business incubator to support the formation and growth of innovative bioscience companies that are leading the way in Atlantic Canada. Emergence will continue to develop its mentorship network, increasing access to investment opportunities and supporting bioscience firms in navigating commercialization and regulatory pathways. ACOA

Natural Resources Canada (NRCan) announced more than $1.5 million, through NRCan’s Green Construction through Wood program, for three projects focusing on the advancement of prefabricated wood construction in British Columbia. These investments are aimed at promoting construction using Canadian wood and driving sustainable innovation in the forestry and construction sectors. Funding recipients are:

• British Columbia Institute of Technology, $995,000 to build the two-storey Robert Bosa Carpentry Pavillion, a “wood first” mass timber building featuring glulam columns and beams and cross-laminated timber floor, roof and wall panels.
• Prefab Buildings Initiative, $300,000 to create energy-efficient mass timber designs for various types of buildings to help address Canada’s housing shortage and make construction faster and more affordable.
• Scius Advisory,  $219,870 to create an online directory of companies across Canada that specialize in building prefabricated parts, which can be assembled off-site and transported to construction sites. NRCan

Environment and Climate Change Canada (ECCC) announced an investment of up to $1.48 million, from the Low Carbon Economy Fund, to help IAMGOLD Corporation reduce greenhouse gas emissions from its mining operations at its Côté Gold mine in Sudbury, Ontario. As part of the project, the Côté Gold mine will acquire electric-powered dewatering pumps and mobile lighting towers, replacing the diesel-powered equipment currently in use at the mine. IAMGOLD will also upgrade the mine’s onsite electrical infrastructure to support these new components, as well as an aggregate crusher that was previously powered by a diesel generator. This project will provide clean energy to the mine’s operations and additional electric grid resilience for the accommodations camp and polishing pond pump house, significantly reducing the reliance on diesel. By switching from diesel-driven equipment to cleaner electricity, the project is set to eliminate an estimated 7,500 tonnes of carbon dioxide equivalent emissions in 2030. ECCC

The Atlantic Canada Opportunities Agency (ACOA) announced a repayable contribution of $1 million to assist St. John’s-based Avalon Holographics with the deployment of its NOVAC holographic display. This investment will enable Avalon Holographics to deploy NOVAC, a groundbreaking 40-inch holographic display that delivers true-to-life, three-dimensional visualization in real time without the need for specialized equipment. The ACOA said this cutting-edge technology has the potential to transform industries such as defence and healthcare by revolutionizing decision-making, enhancing training and improving operational planning. ACOA

The U.S. Environmental Protection Agency (EPA) terminated grant agreements worth $20 billion issued by the Biden administration under a green bank to finance clean energy and climate-friendly projects. The action comes weeks after the EPA froze the grants, which EPA administrator Lee Zeldin has characterized as a “gold bar” scheme marred by conflicts of interest and potential fraud. “Twenty billion of your tax dollars were parked at an outside financial institution, in a deliberate effort to limit government oversight – doling out your money through just eight pass-through, politically connected, unqualified and in some cases brand-new” nonprofit organizations, Zeldin said in a video. The terminations come as three of the nonprofit groups that received grants have filed lawsuits challenging the funding freeze ordered by the EPA. AP News

The U.S. Department of Education has eliminated nearly 50 percent of positions, affecting some 1,315 employees, including civil servants, in every part of the department. A source told ABC News that most of the reduction affected the Offices for Civil Rights (OCR) and Federal Student Aid (FSA). The civil servants who worked for OCR and FSA are tasked with investigating discrimination within America's schools and helping the nation's students achieve higher education. OCR and FSA staff in almost all regional offices were eliminated, according to the source. In another move, the Trump administration cancelled $400 million in federal grants and contracts to Columbia University, claiming that Columbia failed to police antisemitism on campus in the wake of pro-Palestinian demonstrations last spring. Fifty-two universities in 41 states are now under investigation by the Department of Education as part of Trump’s efforts to rid institutions of efforts to promote diversity, equity and inclusion. ABC News, National Public Radio

RESEARCH, TECH NEWS & COLLABORATION

The Government of Canada has consolidated 11 existing graduate scholarship and postdoctoral fellowship programs at the three federal research granting agencies into the Canada Research Training Awards Suite. This new harmonized program aims to reduce the administrative burden on researchers and improve collaboration between the Canadian Institutes of Health Research, the Natural Sciences and Engineering Research Council of Canada and the Social Sciences and Humanities Research Council. With an investment of $825 million over five years provided in Budget 2024 and an additional $199.8 million per year ongoing, the number of students and postdoctoral researchers receiving awards will grow by approximately 1,720. As well, an increase in award values came into effect in September 2024. Innovation, Science and Economic Development Canada

Three Canadian universities ranked in the top 50 for all five evaluation areas in the Quacquarelli Symonds (QS) World University Rankings by Subject 2025. QS evaluates 1,700 universities in five broad faculty areas and 50 specific subjects. University of Toronto (U of T), University of British Columbia (UBC) and McGill University each ranked in the top 50 for all five areas. University of Waterloo placed in the top 100 for Engineering and Technology as well as  for Natural Sciences, while McMaster University and University of Alberta (U of A) were both listed in the top 100 for the Life Sciences and Medicine category. Within the specific subject areas, institutions such as McGill, the U of A, UBC, University of Guelph, and U of T appeared in the top 10 for one or more subjects. QS

Toronto Metropolitan University (TMU) announced it will prioritize Canadian businesses in its procurement and purchasing practices wherever possible, in response to the recent tariffs imposed by the U.S. TMU previously had a policy to prioritize Ontario-based businesses for goods and services valued under $120,000. However, effective immediately, TMU will expand this practice to Ontario and Canadian suppliers for all procurement activities. To support others in the community seeking to adopt a similar practice, TMU’s DMZ tech incubator also launched the Oh Canada Tech Directory. This tool provides a database of Canadian tech companies to simplify procurement practices for businesses, policymakers and ecosystem builders by connecting them with Canadian companies. Additionally, Buy Canadian Cyber, an initiative led by TMU’s Rogers Cybersecure Catalyst, offers a dedicated directory of Canadian cybersecurity suppliers. TMU

Vancouver-founded and now California-located D-Wave Quantum Inc. announced a scientific breakthrough on “quantum supremacy.” In a paper published in Science, the company said its annealing quantum computer outperformed one of the world’s most powerful classical supercomputers in solving complex magnetic materials simulation problems with relevance to materials discovery. An international collaboration of scientists led by D-Wave performed simulations of quantum dynamics in programmable spin glasses – computationally hard magnetic materials simulation problems with known applications to business and science – on both D-Wave’s Advantage2^TM prototype annealing quantum computer and the Frontier supercomputer at the U.S. Department of Energy’s Oak Ridge National Laboratory. The work simulated the behaviour of a suite of lattice structures and sizes across a variety of evolution times and delivered a multiplicity of important material properties. D-Wave’s quantum computer performed the most complex simulation in minutes and with a level of accuracy that would take nearly 1 million years using the Oak Ridge National Lab’s supercomputer, D-Wave said. However, Dries Sels, an assistant professor of physics at New York University, and his colleagues said they have performed similar calculations on a normal laptop in just two hours, using a field of mathematics called tensor networks. These networks essentially reduce the amount of data a simulation requires, drastically cutting the computational power required to run it. But Andrew King at D-Wave said this does nothing to change the company’s original claim. “They didn’t do all the problems that we did, they didn’t do all the sizes we did, they didn’t do all the observables we did, and they didn’t do all the simulation tests we did,” King said. D-Wave, New Scientist

Toronto-based Cohere introduced its Command A, a new state-of-the-art generative model optimized for businesses that require fast, secure and high-quality AI. Cohere said the system can run on just two of Nvidia’s in-demand A100 or H100 chips, compared with the dozens of chips required by competitors. Cohere said that for private deployments, Command A excels on business-critical agentic and multilingual tasks, while being deployable on just two graphics processing units (GPUs), compared with other models that typically require many more GPUs. Cohere also said in head-to-head human evaluation that Command A matches or beats OpenAI’s GPT-4o and DeepSeek V3 on tests for academic knowledge, retail tasks like cancelling orders and changing addresses, and generating code. Command A is much better than GPT-4o or DeepSeek-V3 at consistently answering with content in the requested language, for example answering in the relevant Arabic dialect of the user, Cohere said. Cohere

Sunnyvale, California-based Cerebras Systems will supply chips to Montreal’s data centre being built by Enovum Data Centers which is scheduled to come online in July 2025. The sale is one of six orders for Cerebras’s CS-3 systems. Cerebras, which has a large and growing team in Toronto, makes chips specialized for training and running AI models. The Montreal data centre will be the first to use the company’s chips in Canada. Cerebras

Richmond, B.C.-based General Fusion announced it successfully formed a magnetized plasma in the company’s Lawson Machine 26 (LM26) fusion demonstration machine. LM26 is now forming plasmas daily as General Fusion’s team optimizes performance in preparation for its next step – compressing plasmas with a lithium liner to create fusion and heating from compression, the company said. General Fusion said LM26 is tracking toward game-changing technical milestones that will advance the company’s ultimate mission: generating zero-carbon fusion energy for the grid in the next decade. General Fusion’s Magnetized Target Fusion (MTF) technology is designed to scale for cost-efficient power plants. It uses mechanical compression to create fusion conditions in short pulses, eliminating the need for expensive lasers or superconducting magnets. An MTF power plant is designed to produce its own fuel. However, LM26 has yet to reach the three temperature levels that will be required to bring the technology online: 10 million degrees Celsius, 100 million degrees Celsius, and the “scientific breakeven equivalent” level where the energy released is equal to the heating power required. The company also will need to transition from demonstrators like LM26 to full power plants. General Fusion has received $69 million from the Strategic Innovation Fund since 2019. Fusion is the process by which two light nuclei merge to form a heavier one, producing a massive amount of energy. It is the energy source that powers the Sun and stars. General Fusion

Kraken Robotics, headquartered in Mount Pearl, Newfoundland and Labrador, signed an agreement to acquire all of the shares of U.S.-based 3D at Depth, a subsea technology and services company specializing in high-resolution LIDAR imaging and measurements. Kraken will indirectly acquire 3D at Depth for US$17 million in cash. 3D at Depth’s headquarters and production facility are based in Longmont, Colorado with offshore service operations based out of Houston, Texas, and satellite offices in Norwich and Aberdeen, U.K. Kraken Robotics is a marine technology company providing complex subsea sensors, batteries and robotic systems. The acquisition will expand the company’s U.S. foothold and offerings. Kraken Robotics

The federal government’s proposed regulations to reduce methane emissions in the oil and gas industry by 75 percent below 2012 levels by 2030 are projected to impose $15.4 billion in new costs by 2040, according to an op-ed in the Western Standard. That equates to $71 spent for every tonne of emissions reduced – a figure four times higher per tonne than previous methane reduction efforts, said op-ed author Stewart Muir, CEO and founder of Vancouver-based Resource Works, a public-interest and advocacy and communications not-for-profit organization based in Vancouver, and the host of the Power Struggle podcast.  Canadian Manufacturers & Exporters (CME) has urged a reassessment of the federal cost-benefit analysis underlying these regulations, he said. CME contends the federal environment ministry’s cost-benefit analysis lowballed the costs to industry and assumed away any impacts to production. Alberta’s environment minister labelled Ottawa’s methane plan as “unworkable and unnecessary,” highlighting significant flaws in the federal modeling and analysis. Alberta’s analysis suggests that the regulations could cost $9.4 billion in the province alone, leading to substantial reductions in oil and gas output. “A more balanced approach is essential,” Muir said. This includes targeting the largest sources of emissions first, incentivizing innovation and providing flexibility in compliance timelines to achieve environmental goals without sacrificing economic stability. Western Standard

The biggest wind turbines yet installed in North America are set to soon be turning near the small town of Mulgrave, Nova Scotia. Construction is now underway on the $450-million Goose Harbour Lake development, a project featuring 24 giant seven-megawatt (MW) machines supplied by German manufacturer Nordex. The turbines are massive, each standing about 180 metres tall – higher than any building in Atlantic Canada – and with175-metre diameter rotors. The 168-MW wind power project in eastern Nova Scotia is being co-developed by the U.K.’s RES and Port Hawkesbury Paper (PHP), whose local pulp and paper mill accounts for up to 25 percent of the provincial grid's peak demand. The project, scheduled to be operational in 2026, will meet roughly 60 percent of the power demand at PHP, a major local employer, while cutting provincial greenhouse gas emissions by more than 350,000 tons a year. Through the Wskijinu’k Mtmo’taqnuow Agency, 13 Mi'kmaq First Nations will together hold a 10-percent equity stake in the Goose Harbour Lake wind farm. Canada’s National Observer

The Government of Nova Scotia, working with federal partners, is proposing five wind energy areas for designation after a regional assessment of offshore wind:

• French Bank
• Middle Bank
• Sable Island Bank
• Sydney Bight
• Western/Emerald Bank.

Nova Scotians are welcome to provide feedback on the proposed wind energy areas by April 14. Govt. of Nova Scotia

Montreal is ending fluoridation of drinking water, citing scores of logistical challenges posed by the practice. The Halifax Water utility is struggling with similar technical and cost challenges with fluoridation. Water departments in both Montreal and Halifax have cramped chemical rooms that make it difficult to manage huge volumes of fluoridation chemicals that require very particular storage, both in dry and liquid form. Other concerns include water treatment plant worker safety when handling the chemical compound, the impact of its corrosiveness on equipment, complex maintenance concerns, regulatory monitoring, dosing challenges, environmental impacts and cost. In the U.S., the process of fluoridation has been considered so complex as to require at least one full-time fluoridation specialist for each state. Some of this is necessary to manage the risks around fluorosilicic acid systems. The City of Calgary needed to spend more than $28 million on an entirely new building to house fluoridation equipment at the Bearspaw water treatment plant. Fluoride is expected to return to Calgary’s drinking water in 2025 at a cost of $1 million per year. Health Canada maintains its support for drinking water fluoridation as a safe, universal and accessible method of preventing tooth decay. In the U.S., Utah is set to become the first state to ban fluoride in drinking water, despite widespread opposition from dentists and national health organizations. Environmental Science &  Engineering Magazine

Disinfection of drinking water with chlorine creates chemical byproducts called trihalomethanes (THMs) that can increase the risk of bladder cancer by 33 percent and colorectal cancer by 15 percent, according to a Swedish study. But Health Canada pointed out that the risks from disinfection byproducts, including THMs, “are much less” than the risks from consuming water that has not been disinfected. “Therefore, efforts to manage THM levels in drinking water must not compromise the effectiveness of water disinfection,” the department said. In the recent study, led by Sweden’s Karolinska Institutet and published in Environmental Health Perspectives, researchers found that elevated cancer risks can occur with THM levels as low as 40 parts per billion. The U.S. limits THMs in drinking water to 80 parts per billion. In Canada, the maximum acceptable concentration of THMs has been 100 parts per billion, which Health Canada proposes to maintain. Comments on Health Canada’s latest THM consultation must be submitted before April 4. Environmental Science & Engineering Magazine

Houston, Texas-based fintech Zolve plans to expand into Canada this summer after raising US$251 million equity and debt financing. The startup helps highly skilled and high-spending newcomers access financial services. Traditional banks often deny expats credit cards and loans due to a lack of local credit history, making it difficult to purchase assets such as homes and cars. Zolve’s solution allows individuals to secure credit and banking services from the moment they arrive. Zolve is also introducing new financial products, starting with auto loans and later expanding into personal and education loans. Fintech.ca

Google, Amazon, Meta, Dow and other big electricity consumers are supporting at least a tripling of global nuclear power by 2050. The “Large Energy Users Pledge,” organized by the World Nuclear Association, says the world’s growing economies need abundant energy to help achieve global goals for enhanced energy resiliency and security, “and continuous firm clean energy supply.” The signatories to the pledge agree that a resilient strategy for fostering economic growth should include an increase in the share of electricity provided by nuclear energy and should ensure that nuclear and other energy sources “have equal access to finance.” They also agree there is a significant role for nuclear technologies in providing generation for a wide range of economic activity, including the technology sector, increased electrification, the provision of high-temperature industrial process heat, hydrogen production, district heating and the production of synthetic fuels. The signatories call on other large energy user companies to join the pledge. World Nuclear Association

A former global policy director for Meta, then known as Facebook, filed a whistleblower complaint alleging the social media digital giant was ready to censor content and shut down political dissent to gain access to China in 2015. The complaint by Sarah Wynn-Williams alleges that the company so desperately wanted to enter the lucrative China market it was willing to allow the ruling party to oversee all social media content appearing in the country and quash dissenting opinions. Meta, then called Facebook, developed a censorship system for China in 2015 and planned to install a “chief editor” who would decide what content to remove and could shut down the entire site during times of “social unrest,” according to a copy of the 78-page complaint, filed last April to the Securities and Exchange Commission and seen by The Washington Post. Wynn-Williams, who was fired from her job in 2017, released a memoir documenting her time at the company, titled Careless People: A Cautionary Tale of Power, Greed, and Lost Idealism. But Meta, which disputes the allegations in her book, last week won an emergency ruling in the U.S. from the International Centre for Dispute Resolution to stop her from promoting or further distributing copes of her memoir. Book publisher Macmillan said it would continue promoting the book, despite the order from the arbitrator. The Washington Post

VC, PRIVATE INVESTMENT & ACQUISITIONS

Vancouver-based AI robotics company Novarc Technologies Inc. raised $50 million in a Series B funding round led by Export Development Canada with participation from private investment firm Graham Partners, Seaspan, and InBC Investment Corp. Novarc, which specializes in the design and manufacturing of automated welding solutions, offers an AI-powered intelligent adaptive welding system that enables robots to see and adapt like an expert welder. The company said it will use the funding to propel R&D efforts and develop AI-driven solutions. Novarc

Toronto-based Phoenix raised $50 million in a Series A funding round led by Valspring Capital with the participation of Y Combinator and including an undisclosed amount of venture debt funding from CIBC Innovation Banking. Phoenix is a digital health clinic for men, specializing in three areas of treatment – erectile dysfunction, weight loss and hair loss. The telehealth platform facilitates access to licensed Canadian physicians, treatment options and free, discreet shipping of prescription medication from coast to coast. Phoenix plans to use the funding to expand its team, increase brand visibility and scale operations. Phoenix

Toronto-based Augmenta raised US$10 million in seed funding led by Prelude Ventures, with participation from Montage Ventures. Augmenta offers an AI-powered autonomous design platform that tradespeople can use to generate code-compliant designs for buildings’ internal systems. The company said it will use the funding to expand the capabilities of its electrical system design agent, accelerate the development of its mechanical and plumbing agents, and build out its sales and support organizations. Automating complex design processes eliminates the risk of errors, reduces rework and optimizes designs for sustainability and cost-effectiveness. Augmenta

Bedford, N.S.-based Tenera Care raised $7.4 million in a round led by Build Ventures and Export Development Canada and that included the company’s previous investors. The company’s Tenera Care Real Time Location Service is focused on empowering senior living community operators with data-driven insights on the health and wellness of residents as well as supporting better staff management. Tenera Care

St. Louis, Missouri-based World Wide Technology (WWT), a global technology solutions and cloud-services provider, announced it completed the approximately US$1.3-billion acquisition of Toronto-based Softchoice, a software and cloud-focused IT solutions provider for businesses. The acquisition takes Softchoice private and moves the company to the U.S. Softchoice CEO Andrew Caprara will remain in his leadership position and the company will continue to operate under its own name. The purchase will help accelerate AI adoption and the digital transformation of companies worldwide, WWT said. BusinessWire

Montreal-headquartered specialty pharmaceutical company Knight Therapeutics Inc. announced an agreement to acquire Montreal-based Paladin Pharma Inc. from U.S.-based Endo, a multinational drug research and manufacturing firm. Knight will pay an upfront payment of $120 million in cash, including inventory with a value of $20 million. In addition, Knight may pay future contingent payments of up to US$15 million upon achieving certain sales milestones. Montrealer Jonathan Ross Goodman was a founder of both Knight and Paladin. The deal is subject to regulatory conditions including anti-trust clearance in Canada and is expected to occur in the middle of 2025. Knight Therapeutics

Toronto-based Deloitte Canada acquired Vancouver-based Pocketed for an undisclosed amount. Pocketed uses AI to help match companies with tax and grant programs. Deloitte said Pocketed’s innovative matching program and AI-powered capabilities will enhance Deloitte’s ability to deliver value to clients by expanding the firm’s grant and Scientific Research and Experimental Development tax credit suite of services. Along with the Pocketed team, the company’s co-founders Brianna Blaney and Aria Hahn will be joining Deloitte Canada. Deloitte Canada

Victoria, B.C.-based holding company Redbrick acquired New York-based Paved for an undisclosed amount. Paved is a newsletter advertising platform that connects publishers and advertisers. Paved gives publishers the ability to monetize their newsletter subscription base through relevant ad placements integrated with top email service providers such as Mailchimp, Kit, and Beehiiv. Redbrick

Burnaby, B.C.-based Clio, which offers cloud-based legal technology, acquired Manchester, U.K.-based ShareDo, a provider of cloud-based enterprise software for large law firms, for an undisclosed amount. ShareDo serves many of the world's top global firms, including dozens of the largest law firms in the U.K. and a growing customer base in the U.S., Canada, and Australia. Clio said the acquisition further expands its global footprint and gives the company a fully comprehensive solution for law firms of all sizes. ShareDo CEO Ben Nicholson will become general manager of Clio’s ShareDo platform. Clio

Alphabet Inc.’s Google is in final negotiations to acquire Waterloo, Ont.-based AdHawk Microsystems Inc., a maker of eye-tracking technology. The technology giant intends to buy the Canadian startup for US$115 million, according to sources. This includes $15 million in future payments that will hinge on AdHawk reaching performance targets. Founded in 2017, AdHawk has created chips, hardware and software to enable advanced eye tracking. The company has developed glasses called MindLink and offers the technology to manufacturers, allowing devices to determine where a user is looking. BNN Bloomberg

Toronto-based Xatoms and Calgary-based Knead Technologies took top prizes in their respective categories at this year’s South by Southwest (SXSW) pitch competition in Austin, Texas. Knead, which sells customizable software that matches non-profit food redistribution organizations like food banks with local food donors, took home the top prize in the AgTech & Food category. Xatoms, which looks to use artificial intelligence and quantum chemistry to make water safe to drink, won in the Innovative World Tech category, which recognizes any creative and innovative application, product or service that does not fit in another SXSW Pitch category. Both pitch winners took home $4,000. BetaKit

Quebec is underrepresented in Canadian scale-ups and early-stage investment is declining: report

Quebec now accounts for 22 percent of new tech startups in Canada, a four-percentage-point increase over the past decade, according to a report by Réseau Capital, Anges Québec and Québec Tech.

However, over the same period, Quebec has captured only about 20 Quebec-based startups surpassing the $10-million annual revenue threshold, compared with more than 150 startups at the national level. This means that Quebec currently represents only 14 percent of Canadian scale-ups.

For angel investors, follow-on rounds account for 72 percent of the deal count and 65 percent of the total amounts invested in 2024 by Anges Québec members.

Geographically, Montreal remains the primary investment hub. The IT sector is the preferred industry among members, representing 54 percent of the deal count.

In venture capital, with 108 transactions and $2 billion invested, the decline is particularly noticeable in the seed funding and later stages.

Seed-stage venture deals dropped by more than half year-over-year, with dollars invested dropping by two-thirds – raising concerns about the long-term pipeline of high-growth startups.

The year 2024 is marked by a rebound in early-stage transactions and an increase in investment amounts in the ICT and life sciences sectors, with respective increases of 43 percent and 42 percent compared to 2023.

Private equity experienced a historic year, with the number of transactions rising by seven percent and investment amounts soaring by 597 percent compared to 2023, reaching 385 transactions and $19.07 billion invested.

The year 2024 was also characterized by a record number of buyout transactions. Compared to the past 12 years, 2024 ranked first in buyouts, both in terms of the number of transactions and investment amounts. Réseau Capital

REPORTS & POLICIES

Council of Canadian Innovators offers recommendations on innovation to Canada’s next government

The Council of Canadian Innovators (CCI) makes several recommendations focused on innovation, productivity and national security to the next federal government in a policy brief titled “What Canadian Innovators Need to Scale,” including:

• Protect Canadian prosperity by making our tax system competitive with leading
  global jurisdictions.

This includes modernizing the Scientific Research and Experimental Development (SR&ED) tax credit to reward innovation and commercialization of Canadian ideas, and creating a patent box measure to supplement it.

Modernization of SR&ED is a much more effective alternative to poorly targeted measures such as the Digital Services Tax, the CCI says.
“The next Prime Minister must also scrap proposed changes to capital gains inclusion rates in Budget 2024, and bring us closer to tax competitiveness with similar jurisdictions.”

• Strengthen Canada's security and resilience through dual-use strategic defence investments.

“The next Prime Minister must ensure a strategic recalibration of defence investments, prioritizing research areas that support Canada’s military objectives and have significant export potential for both military and civilian markets. This approach will not only strengthen
national security but also position Canadian firms as global leaders in defence and security technologies.”

• Lead nationally on owning Canadian ideas and turning them into valuable economic assets.

“The next Prime Minister must provide national leadership on owning Canadian IP and intangible assets, building on and strengthening existing provincial efforts, with an IP-focused organization or program combining best practices from Quebec’s Axelys and Ontario’s IPON, and continuing to support efforts like the Innovation Asset Collective.”
The next prime minister also must strengthen the connections between publicly funded research and economic success by conditioning federal research funding on strong and mutually compatible university and college IP management and research commercialization practices that advance Canadian prosperity, the CCI says.

• Reform out-of-date government incentive programs that aren’t performing.

Initiatives like the global innovation clusters “haven’t achieved what they set out to accomplish nor were they designed to advance Canadian prosperity,” the CCI maintains.

“The next Prime Minister must seek to consolidate resources in innovation programming to focus on what matters: helping Canadian firms unlock global scale by turning Canadian ideas into better paycheques and prosperity.”
Areas of overlap in Crown corporation and regional development agency offerings and
operations are also potential sources of savings and efficiencies, the CCI says. Economic programs and organizations should have their mandates refocused very clearly on pursuing growth and hard, measurable outcomes like growing Canadian companies and increasing productivity.

• Seize the moment on AI, deep tech and technologies that will power future growth.

As large U.S.-based hyper-scalers continue to accelerate spending on data centres and compute infrastructure around the globe, the next prime minister must put Canadian prosperity first when engaging with foreign tech giants, the CCI says.

“The government’s priority should remain enabling domestic, sovereign compute capacity to ensure Canadian industry has access to necessary inputs, Canada gets the economic benefits of such infrastructure and Canadians’ privacy rights are upheld.”

Access to foreign compute infrastructure relies on favourable American or EU policy regimes, the CCI notes. “In a new global order driven by strategic behaviour by nation states, it is a dangerous gamble to believe our neighbours will look out for our sovereign interests.”

• Establish new governance tools to power innovation and wealth creation in Canada.

The government should merge existing federal standards along the lines of the U.S. National Institutes for Standards and Technology’s model for integrated standards and should consider incorporating standards-setting bodies into the National Research Council to match global best practices, the CCI says.

The government  should also expand the use of regulatory sandboxes across the
public service for emerging technologies, the CCI recommends. “These environments foster collaboration between government and industry, allowing businesses to test innovations while
providing civil servants valuable regulatory insights.”

• Protect Canada’s interests with a strategic approach to trade.

Canada will need a new, sovereign strategic approach to trade that uses all the tools and levers
at the country’s disposal, including standards, domestic value-added industries, IP rights and security reviews, the CCI says.

To achieve this, “we need to re-build a close and standing cooperation between government and private sector stakeholders akin to [the Office of the United States Trade Representative’s] sectoral tables which inform all aspects of US trade negotiating strategy.”

• Leverage government as an innovation driver through the power of strategic procurement.

Despite a notable increase in federal IT procurement spending over the past decade, Canada ranks 47^th globally in the UN’s E-Government Development Index, lower than all other G7 nations barring Italy, the CCI says.

“Reducing onerous regulatory processes, cutting red tape and setting small and medium-enterprise targets will bolster industry involvement, increase competition and drive innovation, helping close Canada’s growing digital gap while fostering growth in critical domestic  technology sectors.” CCI

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Contribution from intangible assets to labour productivity growth in Canada is lower than in the U.S. and Europe: Statistics Canada

Intangible assets were important for labour productivity growth in Canada from 2000 to 2019, but their contribution was lower than that in the United States and Europe, according to a study by Statistics Canada (StatsCan).

Intangible knowledge assets include data assets, research and development, and brand equity. These investments lack solid physical forms. Nevertheless, they are crucial to modern business performance and create assets that are used repeatedly in production processes for many years.

Productivity growth is essential for improving living standards. Labour productivity, which measures the output of the economy per hour worked, can increase from firms' investments in tangible and intangible assets, upgrading workers' skills, and multifactor productivity growth (that is, innovation and technological progress that are not embodied in investments).

For the period from 2000 to 2019, labour productivity rose by one percent per year in the Canadian business sector, the StatsCan study found.

About one-fifth (0.22 percentage points) of annual labour productivity growth was from investment in intangible assets.

The remaining portion of labour productivity growth (0.78 percentage points) was attributable to investments in tangible assets (+0.59 percentage points), changes in labour composition toward more skilled workers (+0.23 percentage points) and growth in multifactor productivity (-.05 percentage points).

In 2019, nominal investment in intangibles was valued at about $213 billion and nominal investment in tangible assets was valued at about $256 billion.

The largest component of intangibles was data assets, at about $57 billion in 2019 ($54 billion for own-account data assets and $3 billion for purchased data assets). 

The share of investment in data assets in GDP increased from 2.6 percent in 2000 to 3.6 percent in 2019.

Across industries in Canada, the largest contribution of intangible assets to labour productivity growth was in services-producing industries, such as wholesale trade, information and cultural industries, and professional and scientific services.

From 2000 to 2019, investment in intangible assets (+2.58 percent per year) grew faster than investment in tangible assets (+2.02 percent per year), such as machinery and equipment or structures in the Canadian business sector.

During this period, intangible assets rose from being 73 percent as large as tangible investments to being 83 percent as large.

The increase in the importance of intangible assets came from the rise of digital technology and knowledge-based production systems.

StatsCan’s study adopts an internationally accepted methodology for measuring intangible assets to support comparability with the U.S. and Europe.

When labour productivity is adjusted to account for intangible assets, intangible assets' contribution to labour productivity growth in Canada was 0.55 percentage points lower than that in the U.S. from 2000 to 2019.

Canada had a similar contribution to labour productivity growth from investment overall as Europe, but Canada relied more on tangible assets while Europe relied more on intangible assets.

Overall, intangible capital made a significant contribution to labour productivity growth in Canada, especially in service-producing industries, the study said.

However, StatsCan noted: “The results in this paper provide empirical evidence in support of the longstanding concern that Canada is not taking advantage of opportunities to increase output and labour productivity through investment, especially in knowledge intangibles, and innovation in products and processes.” StatsCan

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Canada needs to respond strategically to U.S. tariffs: Public Policy Forum

Canada should avoid implementing retaliatory tariffs on the U.S. on goods used for investment purposes and that rely on highly integrated supply chains between Canada and the U.S., according to an analysis by the Ottawa-based Public Policy Forum.

Tariffs on goods used for investment purposes, such as machinery, “may negatively affect the United States, but they make investment in Canada more costly and further erode our productivity. As a result, the damage to our economy exceeds the damage to the U.S. economy, and lowers our global competitiveness,” the analysis says.

Tariffs on goods that rely on highly integrated supply chains include vehicles, despite Canada having many options for importing vehicles from outside of the U.S.

“Our vehicle sector is too highly integrated with the United States to avoid the negative impacts of tariffs on Canada,” and the negative impact of vehicle tariffs is disproportionately large, according to the analysis.

For their analysis, authors Mark Cameron, Jotham Peters and Brianne Riehl, asked Navius Research, a non-partisan consultancy that focuses on quantitative analysis, to simulate the effect of those tariffs with its proprietary economic model.

They then assessed how damaging the U.S. tariffs would be on both Canada and the U.S. and  analyzed potential Canada-led strategies to respond to Donald Trump’s tariffs.

Their analysis showed that greater trade networks among provinces to either the east or west coast will help insulate Canada from trade shocks with the U.S. and can act as leverage for the next tariff threat.

The authors said that when Canada has adequate opportunities to substitute away from U.S. goods (i.e., a suitable domestic or non-U.S. alternative is available) Canada fares better.

For example, alcohol imports from the U.S. are a perfect example of an opportunity to substitute away from the U.S. Canada has many options for alcohol other than the U.S. including through interprovincial trade or from other countries.

Also, tariffs have a greater impact on the U.S. than in Canada if we have industries that are negatively impacted by U.S. tariffs and we have sufficient production capacity to meet our needs, according to the analysis.

Steel production in Ontario and Quebec are both negatively affected by U.S. tariffs and could export to other regions instead of the U.S.  Reciprocal tariffs on U.S. steel leads to a greater negative impact on the U.S. than in Canada.

Policymakers do not need to be limited to a 25-percent tariff on a particular suite of goods, the authors noted. For example, raising the tariff above 25 percent on alcohol and tobacco may enhance the level of damage to the U.S. economy relative to Canada’s.

The analysis “clearly shows that we, as Canadians, have to stick together because Trump’s tariffs affect us all,” the authors said. “We can’t afford to be split along regional lines, as Canada and Canadians are prone to do.”

“Second, we need to trade more east-west than north-south – either build on what we can do within Canada and trade across provincial lines, or develop new markets in Asia and Europe,” they said.

“And third, to the extent that we hit back, we need to hit back on those sectors that hurt the American economy more than our own.”

Cameron, a Public Policy Forum (PPF) fellow, leads PPF’s Canada-U.S. project. Peters is managing partner at Navius and Riehl is managing director at Navius; both specialize in energy-economy models. Public Policy Forum

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Strengthening international science diplomacy is more urgent than ever, says Quebec’s chief scientist

Strengthening science diplomacy and international research collaboration is more urgent than ever in North America and around the world, Rémi Quirion, Quebec’s chief scientist, says in a commentary in the journal Science.

The number one partner for Canadian science is by far the United States, he says. For the past five years, 27 percent of all Canadian scientific publications were co-authored with American colleagues (according to a Canadian bibliometric database and the Web of Science), Quirion says. “And the reverse is true as well. Canadian scientists are prominent international partners of American scientists in published research.”

Long-standing major programs between the two countries include joint research projects on the Great Lakes, the Arctic, space, health (including global public health), climate monitoring, artificial intelligence, subatomic physics and data sharing.

Despite the uncertainty around tariffs, active partnerships have recently been reconfirmed and even extended between federal funding organizations in both countries, Quirion notes.

These include interactions between the U.S. National Science Foundation and the Natural Sciences and Engineering Research Council of Canada as well as the Social Science and Humanities Research Council.

Such efforts are also strong at the regional level, he adds. For instance, research between Massachusetts and Quebec focuses on climate change, biotechnology and transportation, an alliance rooted in enduring cultural links.

The exchange of trainees is a key component of a partnership that should persist, Quirion says.

For decades, graduate students in Canada have continued training in the U.S. as postdoctoral fellows and some have chosen to stay and forge fruitful collaborations with scientists in Canada.

“These have proven to be robust links, many of which are still active and prosperous today for both countries,” he says.

American fellows coming to Canada to pursue their studies are not as numerous but are particularly interested in AI, quantum computing, clean energy and environmental studies as well as the life sciences.

Considering the current situation, it may be tempting for Canada to use the opportunity to lure both younger and well-established Canadian scientists back to Canada, Quirion says.

Indeed, Canada is already receiving inquiries in that regard, he says. “But such efforts must not take precedence over drawing on the North American partnership more vigorously than before.”

On both sides of the border, additional collaboration should focus on building capacity to advise elected officials and high-level policymakers on scientific issues, Quirion says.

Going further, he adds, the International Network for Governmental Science Advice and its 130 member countries, of which Quirion is chair, aims to take on this challenge globally with three chapters in the Global South (Kuala Lumpur, Malaysia; Buenos Aires, Argentina; and Port Louis, Mauritius) as well as new European (Oxford, United Kingdom) and North American (Montreal) chapters that will be inaugurated over the next two years.

A major objective is to increase the ability to offer advice not only at the national level but also to subregional and local officials who often must make critical decisions under emergency conditions, Quirion says.

The American Association for the Advancement of Science and the United Kingdom’s Royal Society have just released an updated framework on strengthening science diplomacy in an era of disruption, as did the European Commission, he said.

In Quebec, the Fonds de recherche du Québec launched a program this year to create new chairs in science diplomacy that will cultivate a network of experts across scientific disciplines throughout the province. The intent is to leverage the network to establish strong international science and policy partnerships.

Canada now has a new prime minister in place, and with the stability of U.S.-Canada relations at stake, scientific partnerships should be upheld by the leaders of both nations, Quirion says.

“The current period is demanding, but research between these neighbours at the moment is strong and should not be squandered so that together, they can apply excellence in science to face major challenges for our societies – not just in North America but around the world.” Science

*******************************************************************************************************************************Canadian business leaders’ confidence in U.S. declines in face of U.S. tariffs

Faced with U.S. tariffs, Canadian business leaders have less confidence in the U.S. as a reliable trading partner than before, according to a survey by polling firm Leger.

Fifty-one percent of 247 Canadian business leaders said they intend to decrease their investments in the U.S. over the next few years. Only 15 percent said they intend to increase investments in the U.S.

Additionally, 58 percent of Canadian business leaders are not very confident at all or not very confident that the U.S. will be a reliable trading partner in years to come.

Thirty-seven percent said that tariff threats have weakened their relationships with U.S. partners or clients, while 28 percent said their relationship did not change.

Eighty-two percent said they’re not considering expanding or moving their operations to the U.S. to avoid tariffs.

Seventy-nine percent of Canadian business leaders are worried that inflation may rise significantly over the next six months, due to the tariffs.

Forty-three percent expect the Canadian economy to deteriorate sharply or deteriorate moderately over the next six months, compared with 27 percent who expect the economy to grow strongly or grow moderately.

Seventy-seven percent of Canadian business leaders were strongly in favour or somewhat in favour of the Canadian government responding dollar for dollar to U.S. tariffs. Only 19 percent were somewhat opposed or strongly opposed to such a response.

Forty-seven percent of Canadian business leaders said they trusted Mark Carney to manage the Canada-U.S. relationship and defend Canada against the political and financial decisions of Trump.

This compares with 34 percent who trust Pierre Poilievre and five per cent who trust Jagmeet Singh.

Fifty-nine percent of Canadian business leaders said they were very worried or somewhat worried about Trump trying to pressure Canada to become the 51^st state. Forty percent said they’re not worried at all or not very worried. Leger

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Indigenous entrepreneurs and businesses in Canada may face greater impacts from U.S. tariffs

Indigenous entrepreneurs in Canada may be most affected by U.S. tariffs, threatening the future of Indigenous entrepreneurs and potentially undermining the pursuit of reconciliation, according to an op-ed published by The Conversation.

Indigenous people start entrepreneurial ventures five times more often than non-Indigenous Canadians, authors Andrew Karesa and Douglas Stuart say in their op-ed.

Karesa is an adjunct professor of Indigenous Business at The King’s University in Edmonton. Stuart is an assistant teaching professor of accounting in the Gustavson School of Business at the University of Victoria.

Indigenous-owned businesses contribute approximately $50 billion annually to the Canadian economy from an estimated 50,000 businesses, they note.

While this contribution is significant, starting a new venture can be difficult for Indigenous entrepreneurs due to a variety of barriers.

Unlike large businesses that may find workarounds or absorb costs, Indigenous businesses may find it harder to adapt to tariffs or an economic downturn due to poor access to capital, barriers to digital access, infrastructure challenges and a lack of financial slack (a company’s unused financial resources), the authors say.

Industries such as oil and gas, forestry and mining are expected to be hit hard by the tariffs – industries that Indigenous communities are becoming increasingly involved in, through employment, revenue sharing and equity participation agreements.

“The longer tariffs remain in place, the more Indigenous-owned small- and medium-sized businesses are likely to be disproportionately affected,” Karesa and Stuart say.

The Canada-U.S. trade war could lead to some Indigenous businesses shutting down, they warn. In turn, this could have significant sociocultural impacts on Indigenous entrepreneurs and their communities.

Many Indigenous entrepreneurs start businesses in line with their cultural practices and as a way to contribute to their community’s economic and overall well-being.

If a business fails, the entrepreneur may have to leave their community and work for a non-Indigenous firm. “This may impact their ability to maintain cultural connection and support.”

Many Indigenous businesses prioritize hiring Indigenous people and closures can result in fewer culturally affirming work environments for Indigenous workers.

For youth, this may present fewer opportunities for community-based professional and interpersonal knowledge transfer through apprenticeships, mentoring and skill-building.

Closures of Indigenous businesses can also further embed colonial economic structures in Indigenous communities, by forcing them to rely more heavily on external businesses.

The Canadian Council for Indigenous Business has proposed steps to fix the unequal effects of the tariffs.

These steps include more infrastructure investment in Indigenous communities and greater access to funding for Indigenous businesses. The council also encourages Canadians to prioritize buying Indigenous products and services.

Encouragingly, Gary Anandasangaree, the minister of Crown-Indigenous relations, recently pledged government programs and support to Indigenous businesses affected by the tariffs, Karesa and Stuart say.

However, some Indigenous leaders feel they are not receiving a seat at the table in negotiating a “Team Canada” response to trade challenges.

Indigenous voices need to be heard and considered in economic decision-making and policy development, the authors say.

“Indigenous people and communities are up against unequal and harmful effects that are not only economic, but also social and cultural. Public policymakers, institutions and activists would do well to remember this.” The Conversation

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Federal oil and gas emissions cap will allow for increased production but will reduce Canada’s GDP and cause job losses: Parliamentary Budget Officer

Canada’s oil and natural gas industry can still increase production by 11 percent by 2032 even with the federal government’s proposed cap on the industry’s emissions, according to a report by Canada’s Parliamentary Budget Officer (PBO).

However, the required reduction in upstream oil and gas sector production levels will lower real gross domestic product in Canada by 0.39 per cent in 2032 and reduce nominal GDP by $20.5 billion, the PBO says.

The PBO estimates that achieving the legal upper bound will reduce economy-wide employment in Canada by 40,300 jobs and full-time equivalents by 54,400 in 2032.

Under the proposed regulations, the cap would be set at 27 percent below reported emissions levels in 2026 for the first compliance period of 2030 to 2032, with a limit of 20 percent in compliance flexibility (that is, eligible offset credits and decarbonization units).

Taken together, the emissions cap and limited compliance flexibility form an effective legal upper bound – that is, the maximum allowable emissions for the upstream oil and gas sector, the PBO said.

Under the proposed oil and gas emissions cap regulations, total production from the industry’s upstream subsectors (conventional oil production, oil sands production and natural gas production and processing) is projected to be 11.1 per cent higher, on average, over 2030 to 2032 compared with current levels, the PBO said.

In the absence of a federal cap, the PBO’s baseline scenario indicates that upstream oil and gas emissions will exceed the legal upper bound (the maximum allowable emissions) of 160 megatonnes (Mt) by 7.1 Mt annually, on average, over the first compliance period of 2030 to 2032.

To achieve the legal upper bound, the PBO’s estimates indicate that upstream oil and gas sector production will need to be reduced by 4.9 percent from 2030 to 2032 relative to projected levels in the baseline scenario. 

That estimated reduction in production is less than half of the projected production cut (over 10 percent) calculated in two third-party reports, one by the Conference Board of Canada and the other by Deloitte.

The PBO’s estimated impact on GDP (0.39 percent in 2032) of those production cuts is also lower than the 0.6 percent to 0.9 percent estimated in the third-party reports.

The PBO’s report didn’t account for the benefits, including the economic benefits, of reducing Canada’s greenhouse gas emissions because this was beyond the scope of the report and the PBO’s mandate.

“The federal government cannot claim to support the energy sector and highlight its importance to trade with the United States while undercutting it at the same time,” Alberta Premier Danielle Smith and Rebecca Schulz, minister of Environment and Protected Areas, said in a joint statement.

Alberta is working to diversify its customer base and get more barrels to tidewater to maximize the value of its  exports, “but this policy is blatant hypocrisy at a time when Canadians are uniting on supporting a stronger energy sector,” they said. “This cap must be scrapped immediately for the good of the country.”

“The evidence is clear: the federal government’s proposed emissions cap is unconstitutional, bad for the economy and bad for Canadians,” Smith and Schulz said.
“We urge the next elected Prime Minister to abandon this extreme and ideological cap. It has never been clearer that we must grow and expand our energy sector as part of uniting Canada and ensuring a strong and independent economy.” Office of the Parliamentary Budget Officer

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Ottawa should repeal “greenwashing” provision in Canada’s Competition Act: C.D. Howe Institute

The federal government should repeal the “greenwashing” provision in the amendments to Canada’s Competition Act, according to a policy note from the C.D. Howe Institute.

The provision expanded previous prohibitions of misrepresentations about products and services to cover how businesses described their activities, and included a “reverse onus” substantiation of environmental claims in accordance with unspecified, internationally recognized  methodology, John Pecman says in his note to competition policy watchers.

Pecman is a senior fellow at the C.D. Howe Institute, a senior business advisor at Fasken, and a former federal commissioner of competition at the Competition Bureau.

The provision was slipped into Bill C-59 late, with no meaningful public consultation or study, and “unnecessarily intertwines environmental policy objectives with competition law, and has raised major concerns about liability and even freedom of expression,” Pecman says.

Greenwashing arises when a business makes misleading claims about the environmental benefits of a product or service to present a false image of overall environmental responsibility.

Before the passage of Bill C-59, false environmental claims were subject to the general misleading representation provisions of the Competition Act, Pecman points out.

For example, the Competition Bureau successfully took enforcement action in cases against deceptive environmental claims about the recyclability of single-use coffee cup pods and fake auto emission testing.

The new provision also specifies severe penalties, he notes. Companies caught greenwashing by the Competition Bureau can face maximum administrative penalties of $10 million, rising to $15 million for any subsequent infractions.

Alternatively, the fine can be three percent of annual global revenue, whichever amount is higher. For individuals involved, penalties can be up to $750,000.

The legal risk and penalties do not end with the Competition Bureau, Pecman says. Beginning in June 2025, private parties will also be able to seek legal actions and to have significant penalties imposed by the Competition Tribunal upon defendants.

“These penalties are costly and may work to hinder environmental goals,” he maintains.

The requirement to conduct detailed, scientifically validated analysis for environmental claims can be prohibitively expensive for many businesses, he says.

The costs associated with third-party audits, lifecycle assessments and other forms of internationally recognized methodologies will be unaffordable for many small and medium-sized companies, Pecman says.

Also, the fear of financial and legal repercussions may discourage businesses from experimenting with new, eco-friendly technologies and practices, he says. “The unintended consequence of heavy-handed greenwashing laws could be to hinder progress on sustainability goals.”

Companies also might avoid making any environmental claims at all, even truthful ones, to avoid legal liability, he says.

Pecman says whether greenwashing claims are minor or unintentional, businesses today risk private lawsuits from rivals, environmental groups or even consumers which could result in costly legal battles and damage a company’s reputation.

Businesses and industry associations, particularly in the energy sector, have already withdrawn statements about their environmental practices and goals due to the risk of legal and financial consequences. 

Pecman says to more effectively combat greenwashing and promote environmental protection, a better and more balanced approach should include:

• the establishment of clear enforcement guidelines with standardized criteria for environmental claims and labels.
• providing incentives – tax breaks, grants or preferential procurement policies – for genuine sustainability efforts.
• better consumer education campaigns.
• better collaboration with industry stakeholders.
• using and strengthening existing pre-amendment compliance tools not least with the Competition Bureau, providing real and meaningful advisory opinions as contemplated under the Competition Act, enhancing whistleblower protections with rewards, and studying the requirement for a stronger greenwashing law.

Layering more environmental regulation on top of an effective law only affirms the adage that “regulation begets more regulation,” Pecman says.

As policymakers search for ways to increase Canada’s competitiveness and productivity, repealing the greenwashing amendment is an easy win, he adds

“If we desire respect for the environment, the federal government must work more collaboratively with businesses and recognize that competition laws are not intended to save the planet.” C.D. Howe Institute

THE GRAPEVINE – News about people, institutions and communities

Prime Minister Mark Carney appointed Anita Anand as the minister of Innovation, Science and Industry in his new cabinet. Anand was previously the president of the Treasury Board and minister of Transport. François-Philippe Champagne, who previously held the Innovation, Science and Industry portfolio, moved to minister of Finance. Jonathan Wilkinson remained as minister of Energy and Natural Resources. Kamel Khera, a new face in the cabinet, is the new minister of Health. Terry Duguid is the new minister of Environment and Climate Change, while previous environment minister Steven Guilbeault became minister of Canadian Culture and Identity, Parks Canada and Quebec Lieutenant. Kody Blois, another new face in the cabinet, is the new minister of Agriculture and Agri-Food and Rural Economic Development. Prime Minister’s Office

The Canadian Institutes of Health Research (CIHR) announced that Dr. Patricia Conrod was appointed scientific director of the CIHR Institute of Neurosciences, Mental Health and Addiction for a term of four years, starting July 1, 2025. Conrod succeeds Dr. Samuel Weiss, who served in the role for nearly eight years. Conrod is internationally recognized for her groundbreaking work on neurocognitive and personality risk factors for substance use and mental disorders. Her research has also significantly contributed to understanding the harmful effects of social media and cannabis use on adolescent brain development and mental health, which has helped inform drug and online safety policies in Canada and internationally. A professor at Université de Montréal and the Canada Research Chair in Preventative Mental Health and Addiction, Conrod leads a major research program at the Centre de recherche Azrieli du CHU Sainte-Justine where her team conducts studies that use state-of-the-art brain imaging technology. She is the founder and co-director of the Centre IMAGINE du CHU Sainte-Justine, a pediatric brain imaging facility, and director of SENSUM, Université de Montréal’s Strategy for Neurosciences and Mental Health. CIHR

Véronique Dugas was appointed president and CEO of CQDM, a not-for-profit biopharmaceutical research consortium. She will succeed Diane Gosselin who, after 17 years of service to the organization including 13 years at its helm, will be retiring. Effective April 1, Dugas will officially step into her new role, with Gosselin supporting the transition until June. Dugas has been with CQDM since 2018, holding several strategic positions before being appointed chief operating officer in August 2024. She has played a key role in major initiatives, including managing the Fonds d’accélération des collaborations en santé and mobilizing the life sciences ecosystem for advancements in the field of RNA-based therapies in Quebec. CQDM

Toronto-based private equity firm Vertu Capital promoted long-time principal Eric Kafka to partner, joining Kim Davis, Gil Nayot and founding managing partner Lisa Melchior. The firm announced Kafka’s appointment in a LinkedIn post, describing him as a “driving force” at Vertu since joining the firm as “employee number two” in 2018. Kafka brings experience as an operations program manager at Facebook (now Meta) and as vice-president of corporate development at Toronto-based data analytics company Sysomos (now Meltwater). BetaKit

CIBC appointed Harry Culham as chief operating officer effective April 1, 2025 and he will succeed Victor Dodig as president and CEO, effective November 1, 2025. Dodig, who plans to retire as president and CEO effective October 31, 2025, will serve as a special advisor to Culham and the board from November 1, 2025 to April 30, 2026, to support a seamless transition. Culham first joined CIBC in Vancouver as an intern and participated in one of the bank's first- ever graduate programs. He then gained extensive experience in senior banking roles in Europe and Asia before rejoining CIBC in 2008, ultimately taking on the leadership of CIBC's global Capital Markets business in 2015. CIBC

Toronto-based OMERS appointed Alexander Fraser as executive vice-president & global head of OMERS Private Equity. Fraser will join OMERS on March 17, succeeding Michael Graham who retired earlier this year. Fraser, who has decades of diversified, global investment experience, will be based in New York and will report to chief investment officer Ralph Berg. At OMERS Fraser will have accountability and oversight for global private equity business, which includes the buyout and private capital groups covering various sectors and strategies. OMERS Private Equity manages approximately $27.5 billion in assets and has achieved a 10-year average net return of 9.2 percent through the end of 2024. OMERS

Santa Clara, California-based Intel has named Lip-Bu Tan, an experienced business and technology leader and Silicon Valley tech investor, as its new CEO. Tan, 65, will be responsible for reviving the fortunes of the chip-making company. Once one of the best-known names in technology, the semiconductor giant has been hobbled in recent years by its struggles to innovate and failure to claim a share of the market for chips used in smartphones and artificial intelligence. Intel’s problems became so pronounced that last year it ousted its chief executive, Patrick Gelsinger, and cut 15,000 jobs. The company’s share price has fallen 54 percent over the past year. The New York Times

Memorial University anticipates an $8.89-million budget shortfall against budgeted tuition and student-related fee revenue for the 2024-25 year, due to the federal government’s reduction in international student study permits and a decline in enrolment. To address this gap, Memorial plans to balance the budget using a combination of one-time savings and carryover funds. The university also announced refinements to its limited hiring program and said it will maintain restrictions on funding carryover use into the 2025-26 fiscal year. Memorial emphasized the need for increased funding, careful planning, proactive decision-making and strategic solutions to mitigate future deficits. Memorial University

The federal government’s international student cap and changes to post-graduate work permits are hurting Alberta’s smaller postsecondary institutions, CBC News reported. Alberta colleges and polytechnics said applications from international students are down for the 2025-26 school year, dropping by as much as 80 percent. Leadership from several postsecondary institutions in the province highlighted the changes in enrolment at their institutions and provided their perspectives on the situation. Kevin Shufflebotham, president of Medicine Hat College, said the policy changes have contributed to perceptions of instability in Canada, which has deterred international students. Alice Wainwright Stewart, president of Lakeland College, explained that the drop in international student numbers will be felt in the local economy in the future. Stuart Cullum, president of Red Deer Polytechnic, noted that these financial strains, at a time when Canada hopes to become more self-sustaining, will not set institutions up for success. Red Deer Polytechnic is facing a deficit of $10 million in its 2025-26 budget. CBC News

Surrey, B.C.-headquartered Kwantlen Polytechnic University (KPU) issued full or partial layoff notices to 70 faculty members to reduce its expenditures. In an online statement, KPU explained that international student enrolment declined by 2,000 this fiscal year and is expected to drop by another 1,500 next year, leading to a projected $49-million revenue loss for fiscal 2026. To address this, KPU is searching for new sources of income and cutting expenses by implementing layoffs, conducting a hiring review, and reducing discretionary funding. The layoffs will primarily affect areas where declining international student enrolment has reduced course and program demand. KPU

University of Alberta researchers and Alberta startup working on edible coal-derived protein for animal feed

University of Alberta (U of A) researchers are working with an Alberta startup to get an edible coal-derived protein into the marketplace, replacing less eco-friendly ingredients in animal feed.

The innovative research, powered in part by a US$1.7-million grant from the Bill & Melinda Gates Foundation, is being conducted by David Bressler and Ruurd Zijlstra in U of A’s Faculty of Agricultural, Life & Environmental Sciences.

Working with Calgary-based Cv̄ictus, a company that brought the project to the U of A for modernization, Bressler’s Biorefining Conversions and Fermentation Laboratory has improved the technology needed to make single cell protein (SCP).

SCP is a nutrient-rich, low-cost substitute for fish meal and soybean meal, the standard protein sources used in animal feed, and could be a “game changer” in several ways, said Bressler, a bioresource scientist.

“Single cell protein technology has many benefits that could redefine the face of agriculture in Canada,” he said. “It’s an opportunity to produce a much more sustainable ingredient that is less expensive to make, has a much smaller carbon footprint and is scalable to production.”

Using a patented process, Cv̄ictus is focused on extracting hydrogen from deep coal seams without mining, converting it to produce clean methanol, and then from there making SCP for use in livestock feed. The leftover carbon is then captured and sequestered back underground.

The SCP is derived from methanol drawn from hydrogen and carbon in the coal. Bacteria are grown on the methanol that are then harvested, dried and processed into livestock feed.

Besides being more nutrient-rich, SCP is better for the environment than the intensive operations needed to produce protein sources like soybean meal, said Brett Wilcox, CEO of Cv̄ictus.

Supported by the Bill and Melinda Gates Foundation grant, the product is now being tested by Zijlstra in feed trials with livestock. The research is vital to earning certification from the Canadian Food Inspection Agency for commercializing the SCP in Canada.

Production is being scaled up at the U of A’s Agri-Food Discovery Place to make hundreds of kilograms of the powdered SCP, which will then be blended into feed given to pigs and poultry. 

Over the next two years, Zijlstra will assess the Cv̄ictus product for key qualities, including nutrient digestibility and growth performance.

Research support has been provided by Cv̄ictus, MITACS, a Natural Sciences and Engineering Research Council Alliance Grant and Alberta Innovates. U of A

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