Question Period Note: STRATEGIC INNOVATION FUND AND THE NET ZERO ACCELERATOR INITIATIVE

How is the Strategic Innovation Fund’s Net Zero Accelerator (NZA) initiative helping to advance the Government of Canada’s objectives regarding climate change?

• The Strategic Innovation Fund’s $8 billion Net Zero Accelerator has made important contributions to Canada’s climate goals by decarbonizing heavy emitters and reducing greenhouse gas emissions.

• It has also supported the transformation of traditional industries through the promotion of clean technology development and the battery ecosystem.

• The Net Zero Accelerator (NZA) supports projects that will contribute to a low carbon economy, all while securing good, well-paying jobs, and helping businesses move towards a net zero future.

The Strategic Innovation Fund’s (SIF) Net Zero Accelerator (NZA) initiative has three overarching priorities: (1) decarbonizing large emitting sectors; (2) accelerating industrial transformation; and (3) advancing clean technology development and Canada’s battery ecosystem.

Budget 2021 provided $5 billion for SIF’s NZA initiative, in addition to the $3 billion previously announced in Canada’s Strengthened Climate Plan and funded through the 2020 Fall Economic Statement. This funding enables the government to provide up to $8 billion to secure good, well-paying jobs, and support projects with meaningful emission reductions that will give Canadian industries a competitive edge in a decarbonized global economy.

To help support the government’s ambitious climate goals, SIF’s NZA initiative will spur Canada’s shift to innovative net-zero technologies and attract the large-scale investments needed to meet its goal of net-zero emissions by 2050.

• The NZA contributes to Canada’s 2030 climate goals and the reduction of GHG emissions by supporting heavy emitting industries by investing in large-scale decarbonization projects. The

The NZA also plays a role in shaping Canada’s future economy for decades to come and supporting a path towards a net zero economy by 2050. It creates and maintains sustainable jobs, opportunities for students and small and medium-sized enterprises, supports Research and Development (R&D), and stimulates productivity.

• The Strategic Innovation Fund (SIF) is a key tool for the Government of Canada to both support innovative research and development (R&D) projects and to attract and secure large, transformation projects.

• Since the launch of the SIF Net Zero Accelerator (NZA) in 2021, SIF has committed close to $5 billion across 26 projects. Companies have committed to create or maintain 36,067 jobs and create 14,570 co-op positions. They also have research and development commitments totaling $4.5 billion (as of May 10, 2024).

• The NZA contributes to Canada’s 2030 climate goals and the reduction of greenhouse gas (GHG) emissions by supporting heavy emitting industries’ investments in large-scale decarbonization projects.

• For example, the NZA provided funding to support new production processes from Algoma Steel’s Electric-Arc Furnace and Arcelor Mittal Dofasco’s phase-out of coal-fired steelmaking in Hamilton, Ontario. Together these investments are expected to cut GHG emissions by more than 6 million metric tonnes per year by 2030 – and make both companies more competitive in the low-carbon economy.
• Through the SIF, the government has also supported the development of promising technologies such as small modular reactors, nuclear fusion, carbon capture and sequestration, next generation aircraft, and many more. These innovative projects will help grow and transform the Canadian economy supporting a path towards a net zero economy by 2050.

• Notably, the SIF has supported flagship electric vehicle battery projects that will help transform the Canadian auto sector and critical mineral projects that will bring more of Canada’s resources online.