Invest in Canada (2011) poses the question, “what is so special about investing in Canada?” In answer, Ed Fast the Canadian Minister of International Trade and Minister for the Asia-Pacific Gateway said, “Canada is one of the best places in the world in which to invest, create, work and live. We have one of the fastest economic growth rates in the G7, low business costs and taxes and a friendly open business environment.”
Fast also makes the point that Canada offers potential foreign direct investors a number of fiscal and business advantages over many of their competitors. For example:
- The lowest overall tax rate on new business investment in the G7
- The lowest overall business costs in the G7
- The best place to do business for the next five years
- The lowest debt burden in the G7
- The world’s soundest banking system (according to World Economic Forum)
- One of the highest proportions of post-secondary graduates in the OECD.
Canada prides itself on its diverse economy and offers companies a number of dynamic sectors in which to invest their money. Among them are:
- Advanced Manufacturing
- Agri-food
- Chemicals and Plastics
- Clean Technologies
- Environmental Technology
- Information and Communications
- Renewable Energy.
Investment in Canada’s Renewable Energy Industry
Of particular importance is Canada’s multifaceted renewable energy industry. Invest in Canada is upbeat about the prospects of foreign direct investors in what is a growing sector.
The country is already one of the world’s largest producers of hydroelectricity (353 terawatts per year), other renewable sources, notably wind, solar and bioenergy including liquid biofuels are being actively pursued too.
Thanks to Canada’s topography, wind-energy facilities now function in all ten provinces, producing around 2% of the country’s electricity. The sector is driven by more than 400 specialist companies, which employ around 3,000 people. In addition and in recognition of the sector’s importance, a number of further education institutions offer wind-energy technology programs.
Solar power in Canada, which boasts one of the world’s largest solar-power projects (located in Ontario), is also on the rise, with a tenfold increase in generation in the last decade. Notably, over the last year, Italian, German and Indian companies have established a number of other major solar-power projects in Ontario.
Canada’s Biomass Resources
Canada, thanks to its vast forests has more biomass resources (biological material derived from living or recently living organisms) per capita than any other nation. This produces around 6% of Canada’s total primary energy supply. A range of other chemical processes brings ethanol, biodiesel, pyrolysis oil and other biofuels to an increasingly environmentally aware market.
The government’s ecoEnergy for Renewable Power Program launched in 2007 has financed 104 projects to the tune of $1.4 billion, which have produced around 4500 megawatts of renewable energy from a variety of sources. Although no new agreements were signed after March 2011, the Canadian government continues to offer investors a range of financial incentives alongside the best strategic, sector-specific intelligence.
Of course this short article can only scratch the surface. A more in-depth investigation of Canada’s renewable energy market clearly shows a developing sector that is littered with the success stories of foreign direct-investors.
Sources:
The Government of Canada, ecoEnergy for Renewable Power Program, site accessed 21 September
Invest in Canada 2011, Foreign Affairs and International Trade Canada, site accessed 21 September 2011
World Economic Fourm, the Global Competitiveness Report 2011-2012, site accessed 21 September 2011
