GOVERNMENT FUNDING & NEWS

B.C. government’s $200-millon contribution to Cedar LNG facility criticized as a “fossil fuel subsidy”

A new $200-million contribution agreement between the Government of British Columbia and the Haisla Nation will support building the infrastructure needed to ensure the Cedar LNG facility (artist's conception at right) runs on clean, B.C. energy – making it one of the lowest-emitting facilities of its kind.

The agreement will support Haisla Nation in building a new 287-kilovolt transmission line, a new substation, new distribution lines and nearshore electrification – infrastructure the project requires to run on clean B.C. electricity.

This stands in contrast with many higher-emitting facilities around the world, which are powered by natural gas, the government said.

The contribution agreement provides $200 million to support the electrification of Cedar LNG, complementing the $200 million in federal support for the facility announced this year.

Cedar LNG, a floating liquefied natural gas terminal, will be located near Kitimat within the territory of the Haisla Nation and led by the Haisla Nation. Calgary-based Pembina Pipeline Corporation is a partner on the project, the world’s first Indigenous majority-owned LNG facility.

Kathryn Harrison, a political science professor at the University of British Columbia who specializes in climate policy, categorized the funding as a fossil fuel subsidy that will accelerate the climate crisis – given that most carbon pollution from the export project will be generated when the natural gas is burned in other countries. 

The province has framed the funding as a commitment to Indigenous economic reconciliation and has suggested Cedar’s “clean LNG” will replace dirtier global alternatives such as coal.

However, in an interview with Canada’s National Observer, Harrison questioned whether the more costly Cedar LNG will be competitive in a global market that is already saturated with natural gas. When markets are oversupplied, prices drop – and high-cost producers like B.C. are disadvantaged, she added. 

“My worry is this may be just the first in a series of subsidies needed to keep all LNG projects afloat,” she said.

Harrison questioned why Cedar LNG, with backers that had already promised to electrify and finance the project, would need public funding unless it wasn't viable without government support. 

“There are reasons to question the long-term competitiveness of any new LNG investments, not just in Canada, but elsewhere,” Harrison said, noting the most recent International Energy Agency forecast  predicts a global LNG glut likely to continue into the 2030s – which will fuel lower prices and increased financial risks for newer projects.

However, Chris Cooper, CEO of LNG Canada, said Canada has the potential to become a Top 5 global exporter of LNG if all the LNG projects on the books in B.C. go ahead.

Cooper said the world wants “high-quality, responsibly produced” energy and Canadian LNG exports help Canada diversify trade at a time when the country urgently needs to do just that. Govt. of B.C., Canada’s National Observer, The Canadian Press

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The Ontario-based, federally funded Next Generation Manufacturing (NGen) global innovation cluster announced a series of new projects through its Sustainable Manufacturing Challenge (SMC). The SMC projects aim to accelerate the application of cleantech and other advanced technologies to improve the environmental sustainability of Canadian manufacturing. NGen’s investment of $37 million is supporting 32 companies whose 13 projects are focused on applying clean technology and advanced solutions to improve the environmental sustainability of manufacturing processes. Projects receiving funding include work on carbon nanofibre-reinforced rods (from Carbonova and Oilify), AI-powered energy management (Panevo and Canada Bread Company), sustainable automotive manufacturing (Mosaic and Tiercon), and automated large-scale graphene production (Cobionix, Macrotek, and Universal Matter). In addition to NGen funding, the consortia leveraged $71 million in industry contributions, demonstrating a strong, collaborative commitment to building a cleaner, more efficient manufacturing sector. NGen

 Natural Resources Canada (NRCan) announced more than $21 million in federal funding for nine research, development and demonstration projects to reduce greenhouse gas emissions from Canada’s transportation sector. The cutting-edge technology in these projects aims to save money and reduce greenhouse gas emissions for businesses by improving system efficiency, making it easier to switch to zero-emissions vehicles and addressing technical and market barriers for medium- to heavy-duty vehicles that have low or zero emissions. These projects are funded through NRCan’s Energy Innovation Program On-road Transportation Decarbonization call for proposals, which targets the most impactful technologies to maximize economic and environmental outcomes. Evan Soloman, Minister of AI and Digital Innovation, also announced a $4.97-million investment for the City of Toronto to transition 60 of its waste-collection vehicles to operate with a hybrid electric-compressed natural gas system. This innovative conversion significantly reduces emissions, fuel consumption and operational noise without disrupting the vehicle’s performance. This project is funded under the Green Freight Program fleet modernization stream, which funds repowering existing vehicles, purchasing low-carbon alternative-fuel vehicles and implementing logistical best practices that make the transportation industry more efficient. NRCan

The Government of Canada awarded $10 million to Calgary-based Carbon Upcycling Technologies and Ash Grove, a CRH Company, for the Carbon 1 Mississauga project, a Canadian first-of-its-kind commercial carbon capture and utilization facility at Ash Grove’s cement plant in Mississauga, Ont. The project will use Carbon Upcycling's patented technology to permanently sequester carbon dioxide from the cement kiln and utilize it to transform locally produced industrial byproducts into high-quality, low-carbon supplementary cementitious materials (SCMs). Once operational in 2026, the facility will have the capacity to produce up to 30,000 tonnes of SCMs annually, directly contributing to Canada's climate and clean manufacturing goals. Carbon 1 Mississauga is supported by the federally funded global innovation cluster Next Generation Manufacturing's Sustainable Manufacturing Program, Environment and Climate Change Canada's Low-Carbon Economy Fund and is receiving advisory services and funding from the National Research Council of Canada Industrial Research Assistance Program. CRH Ventures, the venture capital unit of CRH, has invested in Carbon Upcycling and is playing a key role in scaling the company's technology. Carbon Upcycling Technologies

The Federal Economic Agency for Southern Ontario announced that the Canadian AI Safety Institute, through CIFAR, will contribute $1 million to the UK AI Security Institute’s Alignment Project, a cutting-edge initiative to advance research on AI alignment. This critical field is focused on making advanced AI systems operate in a reliable and beneficial way, without unintended or harmful actions. The Alignment Project is backed by a $29-million (£15.9 million) investment from an international coalition that includes Schmidt Sciences, Amazon Web Services, Halcyon Futures, the Safe AI Fund and the Advanced Research and Invention Agency. The project will support pioneering work to keep advanced systems safe by maintaining transparency, predictability and responsiveness to human oversight. Through its collaborative approach, the project will remove key barriers that have previously limited alignment research by offering three distinct support streams:

• Grant funding: Up to $1.8 million for researchers across disciplines, including computer science and cognitive science.
• Compute access: Dedicated compute resources, enabling technical experiments beyond typical academic reach.
• Venture capital: Investment from private funders to accelerate commercial alignment solutions.

The project will be guided by a world-class advisory board that includes Canadian AI expert Yoshua Bengio as well as Zico Kolter, Shafi Goldwasser and Andrea Lincoln. Innovation, Science and Economic Development Canada

The Atlantic-Canada based, federally funded Canada’s Ocean Supercluster (COS) global innovation cluster announced $750,000 for the $1.9-million Scaling-up Alternative Seafood Manufacturing Project. Canada’s Ocean Supercluster said this project will shape the future of sustainable food systems with Canada’s first-ever plant-based whitefish fillet – a revolutionary product using marine-derived ingredients that authentically replicates the taste, texture and nutrition of traditional whitefish while delivering major environmental and health benefits. The project is led by Halifax-based Profillet, in partnership with Ardra Inc. in Toronto, Mara Renewables in Dartmouth, N.S., and RONDO North America in Moonachie, New Jersey. The balance of funding is coming from project partners. Canada’s Ocean Supercluster

The office of the Auditor General of Quebec says it is investigating the millions of dollars in subsidies given by the Government of Québec to the electric battery industry. Major players in the sector have come under severe financial difficulties, such as vehicle maker Lion Electric and battery manufacturer Northvolt. A spokesperson for the auditor general's office wouldn't give details on the status of the investigation, only saying a report is expected in the spring. The Quebec government gave $270 million to Northvolt's Swedish parent company before it filed for bankruptcy in Europe. Quebec's pension fund manager – Caisse de dépôt et placement du Québec – invested $200 million in the company. Meanwhile, Lion Electric was recently purchased for a fraction of its former value after it went into bankruptcy protection, with the Quebec government losing its $140-million investment. The Canadian Press

Natural Resources Canada (NRCan) announced that Canada’s first four offshore wind energy areas have been designated on Nova Scotia’s offshore. The Government of Canada and the Government of Nova Scotia jointly designated the areas of French Bank, Middle Bank and Sable Island Bank off mainland Nova Scotia and Sydney Bight off Cape Breton for eventual wind projects. This is a key step to develop an offshore wind industry that will provide long-term energy security and generational economic benefits for Nova Scotians. The next step in developing offshore wind energy is identifying the parcels within the designated areas that will be included in the first call for bids later this year. The aim is to license five gigawatts of offshore wind by 2030. This will set the stage for future offshore wind development and position Nova Scotia to become a major exporter of clean energy. NRCan

BC Hydro launched a new call for power for 2025 to secure new sources of affordable, clean or renewable electricity that will support British Columbia’s expanding economy and create thousands of skilled jobs. As part of the 2025 call for power, BC Hydro issued a request for proposals (RFP) to acquire up to 5,000 gigawatt-hours annually of electricity from large, clean or renewable projects in partnership with First Nations and independent power producers. This is the equivalent of powering 500,000 homes in British Columbia. The RFP eligibility requirements include:

• generate clean or renewable energy.
• have capacity greater or equal to 40 megawatts.
• have a minimum of 25 percent equity ownership held by First Nations.
• be operational by October 1, 2033.

BC Hydro plans to award electricity purchase agreements to selected projects in early 2026. Govt. of B.C.

Saskatchewan is the top region in Canada for mining investment attractiveness, ranking first in the country according to the Fraser Institute's Annual Survey of Mining Companies, 2024. The report included responses from 350 companies rating 82 jurisdictions around the world. In addition to its best-in-Canada ranking, Saskatchewan placed seventh globally, owing to its strong ranking in policy and regulatory perception. The survey measured all regions on two main areas – policy perception and mineral potential – to come up with an overall attractiveness ranking for investment. Saskatchewan placed first in Canada, and third globally, in policy perception, based on responses concerning policy certainty, environmental regulation, the legal system and skilled labour supply. Saskatchewan also ranked highly for its geological database – fourth in the world –  which the Government of Saskatchewan said speaks to the Saskatchewan Geological Survey's cutting-edge mapping technology and high-quality public geoscience data and its extensive library of core samples in its southern and northern Saskatchewan facilities. Govt. of Saskatchewan

The Government of Ontario launched the Nuclear Isotope Innovation Council of Ontario (NIICO), a new expert advisory panel that will help leverage Ontario’s world-class nuclear fleet to double the number of medical isotopes produced in the province over the next four years. As part of the government’s plan to protect Ontario, the integrated energy plan lays the groundwork to expand the province’s nuclear advantage as an essential part of the province’s life sciences strategy to drive innovations in health care, create good-paying jobs and strengthen supply chains to stay resilient in an increasingly competitive global market. Comprised of leading experts from across the medical, nuclear and research sectors, NIICO will work with the Canadian Nuclear Isotope Council, health care providers, hospitals and industry partners to guide and provide recommendations on how to double the amount of isotopes Ontario produces by 2030. Ontario’s nuclear reactors already produce approximately 50 percent of the world’s isotopes that are used to treat head, neck and cervical cancers and sterilize medical equipment. The province is also a global leader in producing isotopes that are used in targeted prostate and neuroendocrine cancer therapy, as well as isotopes critical for diagnostic imaging of the heart, bones, lungs and kidneys. Govt. of Ontario

Columbia University agreed to pay the Donald Trump administration a US$200-million fine in order to restore access to more than US$1 billion in frozen federal research funding. The deal includes a provision that will subject the university to regular examination of its admissions numbers for the next three years. And the agreement requires Columbia to turn over data that goes beyond what the federal government already requires colleges to submit. According to the terms of the deal, each fall Columbia will share data – “broken down by race, color, grade-point average and performance on standardized tests” – on all rejected and admitted applicants with a jointly chosen independent monitor. Historian Rashid Khalidi, the Edward Said professor emeritus of modern Arab studies at Columbia University, cancelled plans to teach this fall in response to the school’s recent agreement with the Trump administration. The administration has accused several major U.S. academic institutions of failing to tamp down on antisemitism during pro-Palestinian protests and sought to cut millions of dollars in federal support if the schools fail to submit to the government’s demands. Brown University announced it had also reached an agreement with the Trump administration to make US$50-million in payments to state workforce development programs. The Trump administration also is freezing over $300 million in research funds for the University of California, Los Angeles, over claims of antisemitism and bias at the institution, according to the university’s chancellor and Trump administration documents. The freeze included about $240 million in research grants from the Health and Human Services Department and the National Institutes of Health, $81 million from the National Science Foundation, and $18.2 million from the Energy Department, a White House spokeswoman said. The Chronicle of Higher Education, The New York Times

Lee Zeldin, administrator of the U.S. Environmental Protection Agency (EPA), said the Trump administration would revoke the scientific determination that underpins the government’s legal authority to combat climate change. Zeldin said the EPA plans to rescind the 2009 declaration, known as the endangerment finding, which concluded that planet-warming greenhouse gas (GHG) emissions pose a threat to public health. The Obama and Biden administrations used that determination to set strict limits on GHG emissions from cars, power plants and other industrial sources of pollution. Zeldin said the proposal would erase limits on GHG emissions from cars and trucks on the nation’s roads. Without the endangerment finding, the EPA would be left with no authority under the Clean Air Act to regulate the GHG emissions that are accumulating in the atmosphere from the burning of fossil fuels. The action would not only reverse current regulations, but, if the move is upheld in court, it could make it significantly harder for future administrations to rein in climate pollution from the burning of coal, oil and gas. In recent weeks, the Trump administration has also moved to scrap restrictions on pollution from power plants, halt key measurements of greenhouse gases in the atmosphere and delay approvals of wind and solar energy projects on federal lands. The New York Times

RESEARCH, TECHNOLOGY & INNOVATION

Canada’s innovation economy is constrained by a “fragmented, inconsistent capital landscape” preventing startups from scaling

The National Angel Capital Organization (NACO) recently hosted Evan Solomon, federal Minister of Artificial Intelligence and Digital Innovation, for a closed-door session with some of Canada’s most accomplished founders and investors, for a candid discussion on the future of our innovation economy.

This roundtable was a call to action and the message was clear: “Canada’s ability to lead on the global stage isn’t held back by ambition,” NACO said. “It’s constrained by a fragmented, inconsistent capital landscape that fails to provide entrepreneurs with the funding continuity and strategic support required to scale.”

Participants in the roundtable emphasized the urgent need to strengthen the capital continuum across seed, venture and growth stages. Founders voiced deep concern over Canada’s competitiveness:

• Early-stage capital remains scarce and often comes with significantly worse terms than U.S. alternatives with longer fundraising cycles due to few funding options.
• Customer acquisition in Canada is harder, especially with government and enterprise clients that often can move too slowly and impose heavy burdens on companies.
• Many Canadian founders relocate or exit early, not for lack of ambition, but for lack of viable domestic options for capital and growth.

From the investor side, calls were made for:

• Rollover relief and targeted tax incentives to unlock latent capital from angel investors and family offices.
• Reform fund-of-fund programs to support emerging managers and regional innovation, while reducing the administrative burden on fund managers

National coordination is needed to build a durable investment infrastructure and generate flywheel effects that will drive massive economic growth and resilience, NACO said.

NACO said the roundtable discussion builds directly on the pillars of NACO’s forthcoming Report on a Unified Capital Strategy for a Sovereign Innovation Economy:

• Increase capital supply: By expanding access to early-stage funding and encouraging broader participation across regions and investor types.
• Enhance capital deployment: By strengthening support for companies as they scale and improving how private capital is coordinated and mobilized across the ecosystem.
• Accelerate capital momentum: By creating conditions that encourage successful founders and investors to reinvest, building a sustainable cycle of growth and innovation.

Said NACO: “The current moment in our country represents a once-in-a-generation opportunity to modernize Canada’s innovation capital infrastructure. To replace fragmentation with coordination. To empower Canadian entrepreneurs not just to start companies here, but to stay, scale and lead globally.” Source: Email from NACO

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Canadian business leaders call on Ottawa to modernize Canada’s financial and payments infrastructure “immediately”

In a KPMG survey of 250 Canadian business leaders, 58 percent of respondents said if Canada’s payments system isn’t modernized, competitiveness will continue to erode.

Sixty-five percent of the leaders surveyed said Canada’s financial and payments infrastructure needs to be modernized “immediately” to enable open banking, digital identity and real-time payments.

Canada is developing the long-delayed Real-Time Rail, a national payment infrastructure that will allow Canadians to send and receive payments in real-time and enable around-the-clock instant payment clearing and settlement between financial institutions in real-time.

Canada also plans to implement open banking (or consumer-driven banking), which allows consumers to easily share their financial data with third-party financial services providers such as app-based fintechs, allowing them to control and transport their information and see their entire financial picture across multiple accounts in one dashboard.

The federal government planned to launch a framework for open banking next year after passing initial legislation in 2024, but further legislation is needed for a full rollout.

Meanwhile, the real-time rail technical build is scheduled to be completed in July 2025, with a year-long testing phase to follow, according to Payments Canada.

Now is an opportune time to expedite both projects, given the strong push from governments, citizens and business leaders to boost Canadian productivity, competitiveness and economic self-sufficiency, said Geoff Rush, partner and national industry leader for financial services at KPMG in Canada.

"Canada is in the midst of a trade war, and it must do everything it can to insulate itself from outside economic threats. We have an opportunity to advance our competitive position by modernizing one of our largest industries – financial services,” he said in a statement.

Digital infrastructure advancements like the real-time rail and open banking will foster more competition, enable innovation, promote financial inclusion and drive more growth and investment in Canada, Rush said. “We must seize this opportunity now, or we will fall behind.” KPMG

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Canadian universities’ total revenue increases but so do expenditures: Statistics Canada

In 2023/2024, the total revenue of Canadian universities increased by $3.5 billion to reach $52.4 billion, according to report by Statistics Canada (StatsCan).

Universities’ expenditures rose by $2.3 billion, amounting to $48.7 billion.

The $3-billion increase in total revenue in 2023/2024 came from several sources: investment income (57.8 percent), tuition revenue (15.5 percent) and provincial funding (10.6 percent).

The remaining 16.1 percent of revenue was attributable to sources such as donations, grants from non-governmental organizations and municipal funds.

The $2.3-billion increase in expenditures mainly came from salaries and benefits (62.1 percent). Other significant expenses that contributed to this increase included buildings, land acquisitions and improvements (10.2 percent) and externally contracted services (8.6 percent).

The remaining 19.1 percent of expenditures included travel expenses and professional fees. In 2023/2024, provincial funding accounted for just under one-third (32.4 percent) of total university revenue.

Provincial contributions grew by 2.3 percent to $17 billion, marking the largest annual increase since 2010/2011.

In 2023/2024, universities received $4.9 billion in federal funding, which represents a decrease of 1.5 percent from the previous year. This decline is mainly due to the conclusion of a one-time contribution to a capital project in Manitoba, which affected the associated financing.

Tuition revenue rose 3.6 percent to $15.8 billion in 2023/2024, marking the highest annual growth since 2019/2020.

Tuition revenue accounted for 30.1 percent of total revenue in 2023/2024, making it the second-largest source of income after provincial and territorial funding. Over the past decade, tuition revenue as a share of total revenue has increased by 5.4 percent.

Universities had a total interest income of $4.2 billion in 2023/2024. This was almost double (+94.2 percent) the $2.2 billion recorded in the previous year.

Investment income (+57.8 percent) was the largest contributor to the $3.5 billion increase in total revenue for 2023/2024. StatsCan

“Intermediary institutions” driving innovation in mid-sized regions of Ontario

Mid-sized regions of Ontario – Greater Sudbury, Hamilton, London, Niagara, and Windsor-Essex – are the “frontlines” of technological and socio-economic change, according to Charles Conteh, professor of political science at Brock University in St. Catharines, Ont.

Conteh explores, in his new book Mediating Innovation Policy Delivery: The Regional Innovation Centres of Ontario, how these mid-sized regions are reinventing themselves by leveraging their resources, talent and competitive advantages.

Driving innovation in these regions are what Conteh calls “intermediary institutions.”

Conteh said these mid-sized regions have three commonalities that have helped them become effective leaders in change:

• They identified and focused on a set of composite industries that form their most vital economic clusters and competitive advantages.
• They built robust platforms that bring together public, private and non-profit actors, including local post-secondary institutions, to create industry-led regional innovation systems.
• They are strategic about tapping into federal and provincial government programs and resources for industry-specific investments aligned with their regional economic priorities.

Public management is now predominantly about demonstrating networking skills, capacity for teamwork, the ability to reach out and build strategic alliances, and the capacity to lead and follow others as required, Conteh said in his book.

“One of the most enduring and increasingly critical challenges of policy delivery in Canada is coordination – that ubiquitous but elusive concept,” he said. “Policy issues no longer respect organizational boundaries, and, as a result, policy governance is more horizontal, consultative, and porous than ever.”

Public management is increasingly about strategic partnerships and network models of service delivery, Conteh said. “The emphasis is on strategic partnerships that facilitate interorganizational cooperation through which governments can support the discovery of solutions to economic problems, foster innovation, and more.”

Conteh noted that collaboration between key local stakeholders makes it possible for Innovate Niagara, for example, to provide a variety of entrepreneurship and innovation supports, such as its business advice and mentorship program and market intelligence services.

These stakeholders include organizations such as Niagara Economic Development, municipal economic development offices, the Niagara Industrial Association, the Greater Niagara Chamber of Commerce, KPMG, Meridian, Brock University, Niagara College, the City of St. Catharines, Niagara Regional Broadband Network, Advanced Office Solutions and Business Link.

Conteh notes that that Hamilton’s information and communications technology sector job growth rate increased 94 percent, Windsor’s 78 percent and London’s 82 percent.

“Innovation stakeholders in mid-sized regions can respond and adapt very quickly to new opportunities,” Conteh said. “That makes them more nimble, more flexible than larger places like Toronto.” Brock University

See also: Federal and Ontario governments should collaborate to make Waterloo a top global science and technology cluster

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Canada must invest in its universities as part of the recent federal call for a “wartime effort” to rebuild the nation’s aging infrastructure, says Gabriel Miller, president of Universities Canada. In a commentary in The Hill Times, Miller highlighted the role that universities play in supporting key parts of community infrastructure – including public transportation and water systems – despite being routinely left out of federal programs designed to support this infrastructure. He emphasized that efforts to revitalize housing and infrastructure will only succeed if Canada’s universities are at their full strength. Miller proposed three steps that the federal government can take to address issues around student housing, campus infrastructure funding, and approvals and administrative barriers. He called for a dedicated student housing strategy with targeted grants, streamlined approvals and support for private-sector partnerships that can turn plans into projects. Miller also recommended that campus infrastructure be eligible for federal programs, especially projects that serve the public and drive innovation. Universities Canada

Thirty-five research labs at the University of Calgary and University of Alberta will receive more than $8.4 million in grants through the Government of Alberta’s Research Capacity Program to help researchers get the essential equipment they need to expand their work. With a strong focus on health innovation and life sciences, advanced manufacturing, artificial intelligence and quantum science, this round of funding will support high-impact economic projects, including AI-powered health diagnostics, energy, quantum computing and wildfire management. The Research Capacity Program is a competitive, multi-stream funding program designed to help Alberta post-secondary institutions expand their research capacity. Its Small Equipment Grant stream covers up to 40 percent of the costs and enables researchers to buy specialized lab equipment. Govt. of Alberta

Polar Knowledge Canada announced support for 10 students through its annual scholarship and award programs, totalling $95,000 in funding. These awards help foster the next generation of polar researchers and knowledge holders and reflect Polar Knowledge Canada’s ongoing commitment to advancing Northern science and building research capacity in the North. Nine students received the Polar Knowledge Canada Scholarship ($10,000 each), for PhD students conducting Northern or Arctic research in the natural and physical sciences, economic and social sciences, health and life sciences, the humanities, engineering, and technology development. One student received the POLAR Northern Resident Award ($5,000), for undergraduate students who are Northern residents and engaged in Northern or Arctic research. Polar Knowledge Canada

Squamish, B.C.-based FireSwarm Solutions, a finalist for the Company of the Year – Startup award at the 2025 BC Tech Technology Impact Awards, is developing autonomous, ultra heavy-lift drone swarms that can suppress wildfires 24/7, including overnight when conventional aircraft are grounded. Unlike smaller electric drones with limited capacity, FireSwarm’s drones are powered by jet engines and can carry up to 400 kilograms for about two hours. Through an exclusive Americas distribution deal with Sweden’s ACC Innovation, FireSwarm outfits these drones with proprietary wildfire suppression kits and its own swarm coordination algorithm. The startup has raised $1.1 million in dilutive capital and secured non-dilutive support from the National Research Council-Industrial Research Assistance Program and NorthX Climate Tech. The team is currently testing its swarm tech in Squamish, with full-scale flight trials underway in Sweden. Techcouver

Bell Canada and Toronto-based AI developer Cohere announced a strategic partnership to provide full-stack sovereign AI solutions for government and enterprise customers across Canada, and to deploy proprietary, secure AI solutions within Bell. Cohere will make its secure enterprise-grade AI solutions available through Bell AI Fabric, providing government and enterprise customers with access to fully sovereign, advanced models and customized applications. This includes leveraging North, Cohere's agentic AI platform for both customers and Bell employees. In turn, Bell will become Cohere's preferred Canadian AI infrastructure provider, while Cohere will become Bell's preferred Canadian agentic AI solution and large language model provider. BCE

Waterloo, Ont.-based OpenText and TELUS announced the launch of the OpenText and TELUS Canadian Sovereign Cloud. This offering empowers Canadian organizations and government agencies with access to enterprise-grade cloud computing and AI capabilities while ensuring complete data sovereignty – with every application, dataset, computation and network operation remaining securely within Canadian borders. The OpenText and TELUS Canadian Sovereign Cloud is a purpose-built, enterprise-ready solution that runs entirely within TELUS’ Canadian data centres, including highly secure facilities in Rimouski, Que., and Kamloops B.C. OpenText already serves 1,600 Canadian institutions with nearly 1,000 organizations actively using and benefiting from AI-powered applications in the cloud. OpenText

Lévis, Que.-based QScale plans to build a multi-billion-dollar data centre near Toronto. QScale has an engagement with an Ontario construction firm and has received a preliminary validation from Hydro One for power. The site for the facility has not been chosen. Minimum investment in the project would be between $2.5 billion and $4 billion. QScale’s expansion is backed by up to $320 million in financing, which it secured from Desjardins Group, Scotiabank, and Export Development Canada last November. QScale is currently finishing construction on the third phase of Q01, its $1.2-billion, 142-megawatt AI data centre in Lévis. Data Center Dynamics

The Canada Pension Plan Investment Board (CPP Investments) is providing $225 million toward a construction loan to expand a data centre in Cambridge, Ont. Deutsche Bank Private Credit & Infrastructure, which served as the main lender, funded the remaining 50 percent of the loan. The data centre is being developed as a joint venture between Related Digital, a global, vertically integrated data centre development and investment platform, TowerBrook Capital Partners, an international investment management firm, and Ascent, a leader in planning, developing and operating data centres. The demand for hyperscale data centres in Toronto and the surrounding region is strong and the project has been pre-leased to a market-leading graphics processing unit-focused AI cloud compute provider on a long-term basis. Toronto-based AI developer Cohere is a customer. CPP Investments

Workers using AI models, AI tools or applications are exposing their organizations to AI-related data breaches, IBM said in its 2025 Cost of a Data Breach Report, which revealed that AI adoption is greatly outpacing AI security and governance. Thirteen percent of organizations reported breaches of AI models or applications, while eight percent of organizations reported not knowing if they had been compromised in this way. Of those compromised, 97 percent report not having AI access controls in place. As a result, 60 percent of the AI-related security incidents led to compromised data and 31 percent led to operational disruption. “This year's results show that organizations are bypassing security and governance for AI in favor of do-it-now AI adoption,” IBM said. “Ungoverned systems are more likely to be breached – and more costly when they are.” The global average cost of a data breach fell to $4.44 million, the first decline in five years, with the average cost of a breach in Canada being $6.98 million, according to the report. IBM

City of Hamilton taxpayers are looking at paying the full cost of a devastating 2024 cyberattack after the city’s insurance company denied its claim. City councillors were told that the city’s claim was denied because multi-factor authentication had not been fully implemented at the time of the attack. According to the city’s insurance policy, no coverage was available for any losses where the absence of multi-factor authentication was the root cause of the cyber breach. On February 25, 2024, Hamilton experienced a cyberattack that disabled roughly 80 percent of its network and impacted services like business licence processing, property tax, transit planning and finance and procurement systems for weeks. A few systems were unrecoverable, the city said, including permit applications and licensing, fire department records management and traffic signal system management. The attackers launched a complex ransomware attack through an external internet-facing server, the city said. After covertly studying the city’s systems, the attackers encrypted systems and data to render them unusable and attempted – but failed – to destroy all the city’s backups. They demanded a ransom of roughly $18.5 million in exchange for a decryption tool to unscramble the city’s data. The city did not pay the ransom, adding it contained the incident within two days and managed to provide critical services throughout. To date, the city has spent $18.3 million on immediate response, system recovery and third-party expert support. Global News

Toronto-based Celestia Inc., which makes microchips and other AI hardware, reported nearly US$2.9 billion in revenue for the second quarter of 2025, up nearly 21 percent from the same period last year. The company increased its full-year revenue forecast by US$700 million, to US$11.55 billion. Celestica’s cloud-computing business helped drive its returns, with revenue in the segment increasing 28 percent year-over-year to nearly US$2.1 billion. The company’s market capitalization increased to $32.8 billion, making Celestia Canada’s third most valuable tech company, after Shopify and Constellation Software Inc. Celestia

Brampton, Ont.-based MDA Space was selected by Colorado-headquartered EchoStar Corporation, a global communications and connectivity provider, as the primate contractor for EchoStar’s new non-terrestrial network low-Earth orbit (LEO) direct-to-device (D2D) satellite constellation. The initial contract, valued at approximately US$1.3 billion, includes the design, manufacturing and testing of over 100 software-defined MDA AURORA™ D2D satellites. With contract options, enabling a full initial configuration of a network of over 200 satellites, the value of the contract would increase to an approximate total value of US$2.5 billion. EchoStar envisions future growth to thousands of satellites, as demand requires, to provide global talk, text and broadband services directly to standard 5G handheld devices. The EchoStar LEO constellation satellites will be designed, assembled, integrated and tested at the state-of-the-art MDA Space high-volume satellite manufacturing facility in Montreal, which is currently undergoing a 185,000-square-foot expansion. Delivery of satellites is planned for 2028 with commercial service starting in 2029. MDA Space

Scale Up Canada released its list of the 50 most scalable companies in the Edmonton region. Many health companies made the list, including PulseMedica, Umay, NanoSpeed Diagnostics Inc., Nanostics, 48Hour Discovery, Karma Medical, True Angle, Bio-Stream Diagnostics, SpectraCann, WWiKY BioSciences, Solidified, RNARevive, Pulmvita, Thoth Biosimulations, Clinisys EMR, and ArmLock. Scale Up Canada said the list is to highlight the Edmonton region’s thriving innovation economy and raise $100 million in capital for the region’s startups. Scale Up Canada

Edmonton-based biomanufacturing company Future Fields partnered with Connecticut-based Protein Evolution, an AI-powered protein discovery and engineering platform, to accelerate the creation of high-performing molecules. Future Fields is leveraging Drosophila melanogaster (the common fruit fly) to produce difficult-to-express proteins at scale. The partnership aims to expedite the production of crucial proteins for the next generation of medicine, agricultural solutions and beyond. The partnership announcement is in tandem with the public launch of the Partner Alliance Program – a global network of 12 specialized laboratory partners offering expertise in discovery, testing, validation, and scale-up, strengthened by Protein Evolution’s AI-powered protein engineering workflows. Together, this alliance serves to close gaps in protein production by accelerating design-to-clinic cycles and offering true end-to-end solutions to life sciences changemakers. Future Fields

Toronto-based bitcoin miner Bitfarms announced that the New York City office it acquired as part of the previous acquisition of Stronghold Digital Mining, Inc. will be identified as Bitfarms’ “second principal executive office” in its filings with the securities commissions in Canada and with the United States Securities and Exchange Commission. Bitfarms is also planning to prepare its financial statements under U.S. Generally Accepted Accounting Principles to better align with U.S. accounting standards and other companies within their industry. Bitfarms operates 15 data centres in four countries and is listed on both the TSX and the Nasdaq. GlobeNewsire

Nearly 4,000 NASA employees, accounting for about one-fifth of the agency’s workforce, have chosen to leave the agency through various voluntary processes, a significant reduction that may still fall short of the agency’s goals. In an emailed statement on July 25, NASA said about 3,000 employees elected to participate in a second round of the agency’s Deferred Resignation Program, which also included programs called Voluntary Early Retirement Authority and Voluntary Separation Incentive Program. This came after a first round of the Deferred Resignation Program earlier this year where 870 civil servants participated. NASA said that, accounting for both programs as well as “normal attrition” of about 500 employees over the same span, NASA would have about 14,000 civil servants. The figures, which NASA said are subject to change depending on the number of employees who either withdraw from the buyout programs or have their resignations not approved by the NASA, mean that about 21 percent of NASA’s civil servant workforce is leaving through the voluntary programs. Mackenzie Lystrup is resigning as director of NASA’s Goddard Space Flight Center while hundreds of current and former NASA employees voice their concerns about agency’s direction under the new administration. SpaceNews

A Japanese power company unveiled plans for the country’s first nuclear reactor since the 2011 Fukushima meltdown. Kansai Electric Power will begin a survey on a site in the country’s south, although it may take years to complete. The government wants to boost nuclear power generation to 20 percent of Japan’s total electricity mix, more than double what it is now but still short of nuclear’s 30-percent level pre-Fukushima. The earthquake and ensuing tsunami that year killed around 18,000 people and severely damaged a nuclear plant, leading Tokyo to shut down almost all the country’s reactors. But since 2022, Japan – facing high energy costs and dependent on overseas imports – has reactivated 14 plants, reflecting a gradual policy shift and evolving public opinion. Semafor

The European Commission presented its proposal for a €175 billion successor to the post-2027 Horizon Europe research framework program, but  concerns remain about the program’s links to the European Competitiveness Fund (ECF) and plans to simplify funding. The Commission also published a draft Horizon Europe regulation, which will establish the next framework program for research and innovation. However, while the structure and content of the program look very familiar, “the changed approach with much less legal text and the ‘tight’ connection to the European Competitiveness Fund raise some issues that will need to be clarified during the legislative procedure,” said Christian Ehler, European Party MEP and one of the Parliament’s leading negotiators. Programming via the ECF “will likely lead to [a] detailed policy steer on calls for collaborative projects, which is the opposite of what the Draghi report, the Heitor report, and the Parliament called for,” Ehler said. He said the European Parliament would continue to advocate for researchers and other experts having a strong role in steering programme decisions within the framework program. Science|Business

VC, PRIVATE INVESTMENT & ACQUISITIONS

Montreal-based eStruxture Data Centers, announced that it issued $750 million worth of bonds backed by revenue from existing data centres, and secured credit of up to $600 million from Scotiabank and National Bank, to accelerate the development of AI-ready data centers across Canada. eStruxture plans to use the bank credit to build new data centres and then issue more bonds at lower interest rates to pay off those initial loans. eStruxture Data Centers

Vancouver-based venture capital firm Yaletown Partners raised $110 million for its Innovation Growth Fund III, aiming to raise $250 million total within the next year. The fund’s first close brings together a coalition of returning and new institutional investors, including pension funds, financial institutions, government investment corporations, Indigenous groups, impact investors and family offices. IGF III continues Yaletown’s “Intelligent Industry” thesis, investing in the enablement layer – digital infrastructure technologies such as advanced analytics, edge computing, networking and physical AI. These technologies are foundational to the digital transformation of real-world sectors such as energy, manufacturing, logistics, agriculture and transportation. Yaletown Partners

First Nations Bank of Canada (FNBC) announced an undisclosed amount of funding from the Canada Infrastructure Bank (CIB). FNBC, under its Indigenous Land Development Program partnership with the CIB, is providing financing to the Líl'wat Business Group for Tseqwtsúqum (pronounced Chek-choo-koom), a major new Indigenous-led development in Function Junction, Whistler. FNBC said Tseqwtsúqum will be a vibrant, permanent village contributing to Whistler's newest neighbourhood, offering new commercial space and critically needed workforce housing. The first phase of development aims to directly address local infrastructure demands while driving economic growth and employment opportunities for both Indigenous and non-Indigenous residents. The Indigenous Land Development Loan Program is designed to help remove long-standing financial barriers that have historically limited Indigenous communities' land development aspirations. FNBC

Toronto’s Radical Ventures led a US$12-million Series A funding round for New York-headquartered OffDeal, which is building what it calls “the world’s first AI-native investment bank.” OffDeal creates software that facilitates sell-side merger and acquisition  transactions for smaller firms and automates analyst work. Participants in the round included Y Combinator, Rebel Fund, Centre Street Partners and several angel investors. OffDeal’s 32-year-old co-founder and CEO Ori Eldarov studied at the University of British Columbia and later worked at RBC Capital Markets for six years. OffDeal

Dartmouth, N.S.-based biotech company Mara Renewables secured $12.5 million from S2G Investments to enhance the global commercialization of Mara’s algae-based omega-3 oil. Founded by Clearwater Seafoods co-founder John Risley, Mara produces oils rich in DHA, a key omega-3 fatty acid, through algae, targeting markets where traditional fish-based omega-3 is less accessible. The company plans to leverage this funding to expand its presence in Asia, the Middle East, and North Africa, and grow its team. Mara’s DHA products are already used by companies like Nestlé and Marks & Spencer. CEO Harry Boot emphasized the focus on underserved markets, including collaboration with the Indonesian government to incorporate DHA into a large-scale meal program for schoolchildren and pregnant women. Startup Ecosystem Canada

Kitchener-Waterloo-based cybersecurity startup Cavelo raised $5 million in an all-equity seed funding extension round led by Inovia Capital. Cavelo, an attack surface management technology provider, said the funding will support product development, sales and marketing efforts to meet growing customer demand. Attack surface management in cybersecurity is a proactive approach that involves continuously identifying, assessing and mitigating risks across an organization’s digital and physical assets. Cavelo

Ottawa-based emergency response software firm Versaterm acquired Texas-based DroneSense for more than US$100 million, paid through a combination of cash and equity. Dronesense provides software solutions enabling public safety agencies to leverage drone technology for operations drone first responder programs. Versaterm said by incorporating DroneSense’s hardware-agnostic drone management platform directly into Versaterm’s best-in-class computer-aided dispatch and incident command and control systems, agencies will be able to deploy drone flights as seamlessly as dispatching any patrol, fire or emergency medical services unit. This will provide a more comprehensive picture of every incident, from the initial call to the final report, while reducing the complexities that have slowed the broader adoption of drone as first responder programs. Versaterm

Ottawa-based modular farming startup Growcer acquired the assets of its bankrupt U.S. competitor, Freight Farms, for US$2.6 million. This acquisition adds over 600 new customers from 30 countries to Growcer’s portfolio, along with access to Freight Farms’ proprietary software. Founded in 2016, Growcer specializes in modular vertical farms suited for extreme climates. Growcer said this strategic move aims to sustain the vertical farming industry and merge the strengths of both companies. Growcer is also expanding its offerings to include more climate-controlled food storage solutions and has raised a $30-million special purpose fund to support its growth. Startup Ecosystem Canada

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Venture capital assets in Canada could shrink to one percent of North American VC in the next five years

Venture capital assets under management in Canada could decline to one percent of overall North American VC in the next five years, down from four percent currently, according to a report from research and analytics firm PitchBook.

“Canada faces more difficulties than the U.S. in turning valuation growth into realized returns, which has slowed fundraising and caused market stagnation,” the report says.

Over the past decade, only six Canadian companies have exited with a $1-billion valuation, the latest in 2023. The lack of outsized exits has likely impacted fundraising within Canada, the report notes.

Fundraising failed to surpass $5 billion during any year, and just 27 new funds closed in 2024 – the lowest since 2016.

Completed deal count in 2024 was 38 percent lower than in 2021, and contrary to the U.S., Canadian valuations are also slipping.

“Lower activity and smaller prices being paid do not paint a rosy outlook,” the report warns.

VC assets in North America overall are projected to increase 38 percent in the next five years – slower than the doubling of VC assets from 2019 through 2024.

North American trends are dominated by the U.S., which accounts for more than 96 percent of the fundraising, while Canadian VC assets continue to dwindle.

The U.S.’s total VC market valuation is about 15 times greater than that of Canada.

Important factors that could impact PitchBook’s growth expectations for North American VC include a historically volatile economic and geopolitical cycle, the development of the secondaries markets, and the success or failure of AI startups. Pitchbook

 REPORTS & POLICIES

 Canada now has the chance to design AI governance “from the ground up”

Canada has a unique opportunity to design AI governance framework that is dynamic, participatory and grounded in democratic legitimacy – not reactive rule-making but anticipatory governance, according to a commentary from Policy Options.

The federal government’s Artificial Intelligence and Data Act (AIDA) effectively died in the House of Commons when former prime minister Justin Trudeau prorogued Parliament in January this year.

So “there  are no legacy regulatory structures to renovate, no obsolete codes to demolish,” says the commentary by Ankesh Chandaria, a strategy adviser and director at the AI Safety Foundation and a research affiliate at the University of Toronto.

“We have a unique opportunity to design AI governance from the ground up that strengthens democratic oversight, societal trust and long-term resilience,” he says.

The European Union’s AI Act takes a risk-based approach, but critics point to lagging adoption rates – only 11 percent of European firms use AI, despite a target of 75 percent by 2030 – as evidence that regulation can stifle innovation, Chandaria says.

At the opposite extreme, the U.S. House of Representatives recently passed a bill proposing a 10-year moratorium on state-level AI laws. Although the Senate ultimately rejected the measure, its advancement underscores how strong deregulatory impulses remain and how easily efforts to forestall regulation in the name of innovation can gain political traction.

“We’ve seen how light-touch regulation can play out,” Chandaria says.

In the late 2000s, the “move fast and break things” approach to social media resulted in algorithmic extremism, teenage mental health crises, market concentration, and privacy violations like the Cambridge Analytica scandal.

“But the lesson is not to regulate everything; it’s to recognize early signals and establish appropriate governance before harms take root,” Chandaria says.

The goal shouldn’t simply be economic competitiveness, it should be democratic confidence and societal flourishing, he adds.

Concretely, Chandaria says that means ensuring three elements don’t get lost in the mix: democratic oversight with meaningful public participation, clear societal boundaries and evidence-based investment in AI safety.

First, democratic oversight with meaningful public participation refers to civic legitimacy, as opposed to bureaucracy, he notes.

As Canada potentially revisits AIDA, the approach should include transparent processes for defining public risk thresholds, parliamentary review of high-impact AI deployments, and clear pathways for diverse citizen input, he says.

Research suggests that bringing diverse public voices into AI development produces more socially acceptable and trustworthy systems, he notes.

The Montréal Declaration on Responsible AI demonstrated this approach, engaging more than 500 citizens and stakeholders through deliberation workshops. AIDA, on the other hand, faced criticism for its limited public consultation.

“A democratic society wouldn’t let private developers dictate how we build shared public space,” Chandaria says. “The same must apply to digital systems shaping our lives.”

Canada’s AI governance framework must feature open processes: defining risk thresholds through committees that include diverse citizen voices; mandatory parliamentary review of high-impact deployments; and ongoing public consultation mechanisms.

The second element is setting clear societal boundaries. “Participatory design is not just a matter of process; it is also about surfacing and negotiating our communal values.”

The EU’s AI Act, for instance, identifies high-risk domains like facial recognition and algorithmic decision-making in employment, credit scoring and law enforcement.

Canada can learn from this and lead with its own values, Chandaria says. Clear boundaries create clarity for innovators and accountability for deployers, articulating collective limits where public trust and safety are too essential to leave to market forces alone.

The third element is taking evidence-based safety issues seriously. Leading AI researchers, including Yoshua Bengio and Geoffrey Hinton, have raised credible concerns about current systems exhibiting bias and engaging in deception.

Current investment patterns in AI reveal a stark misalignment between development and safety spending, Chandaria says. Some researchers even argue that companies should devote a third of their AI R&D budgets to safety and ethics, reflecting the need to align private incentives with public interest.

“Canada should take these warnings seriously by backing further research and encouraging algorithmic transparency, auditing and regulatory sandboxes where developers test AI systems under oversight.”

The EU’s AI testing and experimentation facilities provide a helpful model for responsible experimentation with clear guardrails, he says.

“Trust can’t be bolted on at the end; it must be built into how we define, develop and deploy these systems from the start.”

Canada already has the research strength, policy tools and international credibility to lead in AI governance, Chandaria says.

“With democratic participation and evidence-based safety integrated from the ground up, we can build a uniquely Canadian approach to AI governance that reflects our values and charts a pragmatic, responsible course through technological change.” Policy Options

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U15 Canada issues “call to action” for federal government to boost investment and capacity in emerging technologies

U15 Canada issued a “call to action” for federal government to strengthen Canadian security, enhance domestic research capacity and protect Canada’s technological sovereignty.

In U15 Canada’s submission to the House of Commons Standing Committee on Finance ahead of the 2025 budget, Canada’s leading research universities highlighted the urgent need for the country to act quickly to bolster capacity in emerging technologies and reduce Canadians’ dependency on knowledge and technologies generated elsewhere.

The submission points out that the Australian Strategic Policy Institute ranks Canada in the top five for high-impact research in only three of 64 critical technology areas – such as defence, AI, and quantum.

Similarly, Harvard’s Belfer Center places Canada 12^th overall in its Critical and Emerging Technologies Index, with mixed results across key sectors: 6^th in quantum, 8^th in AI, 9^th in biotech, and 16^th in both semiconductors and space.

“We can no longer afford to be reliant on access to technologies developed elsewhere. Canada must act now to expand its domestic capacity,” U15 Canada says.

Firstly, the submission proposes the creation of a Sovereign Technologies Fund (STF) with an initial investment of $1 billion over five years, to strengthen domestic capacity in sensitive technologies critical to Canada’s future national security.

“Strategic investments in these key fields will also help Canada to succeed and grow in highly competitive emerging sectors,” U15 Canada says.

To ensure flexibility and maximum impact, the STF should deploy a blended portfolio of funding mechanisms that span the full continuum from discovery to deployment, according to the submission. This could include research grants, challenge-based R&D competitions, SME commercialization support, work-integrated learning placements and national research centres.

“By connecting talent, research, and commercialization across the ecosystem, the STF would help Canada move from technological dependence to technological leadership.”

Secondly, as researchers and universities look to contribute to keeping Canada secure in a changing international landscape, U15 Canada recommends that the proposed federal Bureau of Research, Engineering and Advanced Leadership in Science (BOREALIS) build on the existing expertise of Canada’s leading research universities in dual-use technologies.

Canada continues to underinvest in defence-related R&D, despite possessing deep expertise in dual-use technologies from AI to Arctic surveillance, the submission notes.

In 2024, only 2.9 percent of the federal R&D budget supported defence priorities – well below the Organisation for Economic Development and Co-operation (OECD) average of 17.9 percent and far behind the U.S. at 44.6 percent.

Federal support for extramural defence research – targeting universities, companies and other partners – totalled just $111 million, with only $40 million flowing to higher education institutions, “leaving most of Canada’s world-leading research capacity under-utilized.”

In contrast, the U.S. Department of Defense invests over US$9 billion annually in university-based research and operates long-standing, mission-critical centres like Johns Hopkins’ Applied Physics Laboratory.

Leveraging strengths in areas like AI, quantum and cyber will give Canada the knowledge it needs while realizing opportunities to grow impactful ideas that will benefit all Canadians, U15 Canada says.

Thirdly, while the Mark Carney government rebuilds Canada’s immigration system, U15 Canada says that efforts to attract the best and brightest should reward excellence and focus on restoring Canada’s brand for talented researchers.

Canada ranks just 25^th among OECD countries in advanced degree attainment, leaving this country at a disadvantage in building the expertise required to lead in a more competitive and contested global environment, the submission says.

Recent policy changes risk eroding Canada’s reputation as a high-quality, welcoming destination for top-tier talent – undermining the government’s objective of attracting the world’s best and brightest to build a stronger, more resilient and sovereign future.

According to IDP Education, just 13 percent of international students now rank Canada as their top choice – down from 27 percent in 2023, the submission notes.

New investments to attract talent should be introduced alongside reforms to study permits to allow top institutions to recruit the best international students, U15 Canada says.

“It is also crucial that existing federal funding for research is protected from ongoing spending reviews to ensure that talented researchers looking to make a home in Canada can grow their ideas here.”

Fourthly, U15 Canada says the federal government needs to deliver on the modernization of Canada’s science and technology architecture by establishing the proposed federal capstone research organization and Council on Science and Innovation as platforms for mission-driven, interdisciplinary research that complements the granting agencies and supports a science-based industrial strategy.

“Our submission to the Finance Committee is the beginning, not the end of a conversation about how Canada’s leading research universities can contribute towards this national effort,” Robert Asselin, CEO of U15 Canada, said in a statement.

“Whether it is sovereign technology capacity, an enhanced focus on defence and dual-use research or welcoming talented researchers from overseas, we have laid out a plan as we look towards a crucial fall budget,” he said. U15 Canada

See also: Time is right for federal government to build a stronger research ecosystem: U15 Canada (in the Short Report: July 16, 2025).

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Canada needs a long-term strategy for its trade infrastructure network, amid slipping trade performance

Canada’s trade performance has been slipping for decades and the country needs a long-term strategy for its trade infrastructure network, according to a report by the Conference Board of Canada (CBoC).

To prepare for future growth, Canada will need to invest $4.4 trillion in its transportation infrastructure system between 2020 and 2070, the report says.

However, research from Canada’s National Supply Chain Task Force shows that investment in the trade network is consistently failing to keep up with rising trade volumes.

The impact of this is visible in growing network congestion, proliferating bottlenecks, and longer end-to-end travel times.

Canada’s largest port, the Port of Vancouver, is now considered one of the world’s least efficient container operations.

The report’s key findings are:

• In 2024, while Canada’s export volume of energy and services had increased by 75 percent and 90 percent, since 2004 our export volume of goods had only grown by seven percent. In 2000, Canada captured 4.1 per cent of the global export market, declining to 2.3 per cent in 2023.
• While shortlisting projects of national interest is helpful, a systems-level vision of the trade network is required to deliver federal and provincial-territorial strategic objectives, which include Canada’s industrial policy.

Prime Minister Mark Carney, as part of his government’s trade diversification strategy, pledged a $5 billion Trade Diversification Corridor Fund during an electoral campaign news conference at the Port of Montreal, the report notes.

• Canada is diversifying. While some trade infrastructure projects reflect traditional trade patterns with the United States, many others are oriented toward a more diverse export future that looks to European and Asian markets, among others.
• Public-private collaboration plays a central role in creating projects, particularly with regard to deploying new technology in the trade infrastructure network. The CBoC points to several examples of institutional coordination across organizations and governments. There are also growing instances of trade infrastructure projects situated within a larger development strategy (such as corridor planning).
• Canada has focused on building capacity across its primary trade infrastructure network, such as the Port of Vancouver and the mainline rail network. Strategic investments in secondary regional infrastructure (such as secondary ports) can act as critical complements in building resilience and redundancy into the trade network.
• Inland ports can increase intermodal efficiency and transshipment, particularly from truck to rail, which also reduces emissions-per-tonne-mile. Inland ports can also relieve the pressure and congestion surrounding maritime ports and introduce route flexibility, which gives shippers much-needed optionality.
• Canada has several examples, at various stages of readiness, of trade infrastructure projects that advance federal and provincial–territorial strategic objectives in trade and trade infrastructure. These transformative trade infrastructure projects exemplify the long-term vision for the future of the trade network.
• With seismic shifts in the economic and geopolitical landscape, Canada should adopt a mission-critical approach to trade diversification and infrastructure deployment. However, pace should be balanced with prudence. Meaningful consultations with Indigenous rights holders and other communities will be indispensable to our success.

The CBoC’s report points out that the federal government’s 2020 Hydrogen Strategy involves a more than sixfold increase in Canadian hydrogen production – from 3 million tonnes in 2020 to 20 million tonnes in 2050. The strategy aims to deliver 30 percent of Canada’s end-use energy by 2050.

“Beyond domestic uses, export opportunities are key,” the report notes. The strategy seeks to position Canada as a major global hydrogen exporter to target markets in the in the United States, Japan, Korea, and elsewhere.

But Canada doesn’t yet have the necessary enabling infrastructure, the report notes.

Enabling the hydrogen economy should involve supporting the development of port-based hydrogen hubs and investing in road-based hydrogen refuelling infrastructure, according to the report.

Without compromising safety, there is also a need to explore innovative approaches for the large-scale transport of hydrogen or ammonia, such as unit train transport via rail to ports.

“This is particularly important for exports from landlocked regions like Alberta, which dominates Canadian hydrogen production.”

The report also notes that investing in trade-related transportation infrastructure, including a “Northern corridor” in the North serves three major national priorities:

• It can advance efforts toward reconciliation.
• Investing in the North is essential if Canada wants to realize opportunities in the critical minerals sector.
• Investing in the North critical to securing Canadian sovereignty in the Arctic.

Expanding the Port of Churchill provides an opportunity to strengthen Canada’s position in the Arctic and improve Prairie access to European markets, the report says.

The Port of Churchill has the potential to function as an eastern hub in a new Canadian Arctic corridor, while also supporting economic development in northern Manitoba.

Diversifying Canada’s trade relationships is an urgent strategic priority, the report says. The emphasis on Canada’s port network especially speaks to the need to grow Canadian market share in Europe and Asia.

Combined with expanded Northern development and the cultivation of new product markets like critical minerals and hydrogen, Canada can move the needle on diversification, the report says. “But this will take sustained effort and a long-term vision.”

“Canada is confronting a seismic shift in the economic and geopolitical landscape, driven largely by trade tensions with the United States,” the report says. “This warrants a mission-critical approach to trade diversification and infrastructure deployment.” Conference Board of Canada

THE GRAPEVINE – News about people, institutions and communities

Prime Minister Mark Carney named Harry Burton as his new regional advisor for Atlantic Canada. Originally from Newfoundland, Burton most recently worked as Artificial Intelligence Minister Evan Solomon’s director of policy. He has also spent time in former Newfoundland cabinet minister Gudie Hutchings’ office during her time in the rural economic development portfolio. During the recent election campaign, Burton was director of the Liberal Party’s “get out the vote” initiatives in Atlantic Canada. iPolitics

Marc-Antoine Cantin, a board director and member of Anges Québec, a provincial angel investor network, is taking over as CEO after a two-month transition period. Stéphane Drouin is stepping down as CEO for personal reasons less than a year after taking the helm. Anges Québec, which includes about 175 Quebec-based angel investors, is partnered with venture fund AQC Capital. Cantin plans to expand access to venture capital through vehicles such as the Elevia fund, allowing members and external investors to invest in pre-seed and seed-stage Quebec companies. Despite a dip in early-stage investments, Cantin remains optimistic about the market’s recovery. Startup Ecosystem Canada

The Institute for Sustainable Finance (ISF) in the Smith School of Business at Queen’s University added five new research fellows to its growing team:

• Julie Bernard (PhD), School of Environment, Enterprise and Development, University of Waterloo.
• Sean Cleary (PhD), Smith School of Business, Queen’s University.
• Fabio Moneta (PhD), Telfer School of Management, University of Ottawa.
• Kenneth S. Corts (PhD), Rotman School of Management, University of Toronto.
• Olaf Weber (PhD), Schulich School of Business, York University.

These new additions bring the total to 10 new members of the Research Fellows Program who have joined ISF in 2025. ISF

TD Bank Group appointed John B. MacIntyre as chair of the board of directors, effective September 1, 2025. He has had a distinguished 30-year career in capital markets and is the retired partner emeritus of Birch Hill Capital Partners, which he co-founded in 2005. MacIntyre has served as an independent director of the board since 2023 and currently chairs the board's human resources committee. Alan MacGibbon, current chair of the board, will retire from the board on September 1, 2025. Canada’s second-largest bank has spent the last year replacing its executive team and board after a money laundering scandal for which it was punished with limits on its growth in the U.S. and more than US$3 billion in fines. TD Bank Group

Canadian Nuclear Laboratories (CNL) and Atomic Energy of Canada Limited signed five-year extensions with the nine universities participating in CNL’s Academic Partnership Program (APP). The partnership program includes a variety of initiatives – including student learning opportunities, collaborative research and infrastructure sharing – with the goal of bringing together Canada’s research and development community to support the country’s climate change goals through nuclear energy. The participating universities are McMaster University, Ontario Tech University, Queen’s University, the University of New Brunswick, the University of Ottawa, the University of Regina, the University of Saskatchewan, the University of Waterloo, and Western University. In its third year, the APP has engaged with over 7,000 students from across Canada. CNL

The Centre for Nuclear Research (CNER) at the University of New Brunswick (UNB) officially opened its Advanced Nuclear Reactors Laboratory. The laboratory will grow research and development in strategic areas and support workforce development and technical support. This laboratory will broaden CNER’s collaborations, which will support the advancement of nuclear technologies. The new lab received support from the Atlantic Canada Opportunities Agency, Research New Brunswick and the Government of Canada. UNB

Protesters gathered in downtown Montreal to call on the Government of Québec to repeal Bill 96, in light of the $30-million fine levied by the government against LaSalle College, for enrolling too many students in its English language programs over the past two academic years. The protesters told CTV News that they feel educational institutions are being unfairly targeted by the law. “There are so many Francophone students in LaSalle College that are going to be harmed too, if the school closes because of this $30-million fine,” said protester Cynthia Costigan. In a statement, Quebec’s Higher Education Minister Pascale Déry said that “LaSalle is the only subsidized private college to continue defying the Charter of the French Language and failing to comply with it.” Déry refused further comment while the matter is before the Quebec Superior Court. CTV News

The University of Waterloo (UWaterloo) partnered with Bruce Power and Enbridge to teach undergraduate students about energy sustainability. The university is offering a new course – Energy and Society in Ontario – that gives students access to nuclear and wind energy sites in the province so they can learn about how these systems are built, managed and operated. Students in the course develop their background knowledge before going to energy sites to connect theory to practice. Dwight Irwin, manager of community relations at Bruce Power, said that the company’s partnership with UWaterloo will help students learn about the province’s electricity system and about the careers that they can pursue. UWaterloo

New initiatives at Dalhousie University and the University of Calgary are putting community voices at the heart of academic research. At Dalhousie University, the Community-Oriented Coastal Observatory is training Nova Scotians in six communities to collect seawater samples for eDNA analysis. This in turn will help researchers monitor how marine species are shifting in response to climate change. At the University of Calgary, the university’s Precision Health Program is training healthcare professionals to design care strategies that reflect patients’ lived experiences and priorities, working directly with local organizations to address real-world challenges. Recent graduates worked on challenges ranging from vaccine delivery to curriculum development for health-sector innovation. Dalhousie University, University of Calgary

McMaster University’s DeGroote School of Business is launching two new graduate programs that respond to the growing role of AI in business. Launching in January 2026, the part-time Master of Management in Applied AI and Data-Driven Decision-Making is designed for mid-career professionals. The program blends online modules with weekend residencies that build student skills in applied AI, data analysis and ethical leadership. The full-time Master of Management in AI and Analytics, set to launch in September 2026, is designed for early-career professionals. Students will study machine learning, data strategy and analytics implementation through a mix of coursework and hands-on experience, including an eight-month practicum and a work term. McMaster University

Institut national de la recherche scientifique (INRS) has officially become a member of the University of the Arctic, an international network of institutions dedicated to research, education and collaboration in and about the North. INRS’s membership strengthens its commitment to Arctic issues and provides opportunities for learning, exchange and collaboration. Several INRS research teams, including those from the Centre Eau Terre Environnement and the Centre Urbanisation Culture Société, are already conducting fieldwork the Arctic. Isabelle Laurion, INRS professor, said that as a member of the University of the Arctic, INRS will be able to strengthen ties with Indigenous communities and recognize the value their research offers in understanding ecosystems in the North. INRS

The College of Northern Canada in Yellowknife launched two new programs, which MyTrueNorthNow reported are the first accredited postsecondary logistics programs in the Northwest Territories. The Logistics Management certificate and diploma programs – which received accreditation from the Government of the Northwest Territories earlier this month – combine technical training with cultural fluency, land-based learning and Indigenous knowledge systems. The programs aim to prepare students for roles in areas such as housing, food security and infrastructure. Because these postsecondary training and education programs have received accreditation, students enrolled in these programs are now eligible for financial support through the N.W.T. government’s Student Financial Assistance program. MyTrueNorthNow

Keyano College in Fort McMurray, Alta. and the University of Alberta’s Faculty of Agricultural, Life & Environmental Sciences have signed a transfer agreement that will allow Keyano graduates to enter the third year of a university degree. The agreement establishes a pathway for eligible graduates of Keyano’s Environmental Technology diploma program into a BSc in Environmental and Conservation Sciences or a BSc in Forestry. The agreement recognizes Keyano's Environmental Technology diploma programs as providing a comprehensive body of knowledge, which streamlines the transfer process and reduces duplicated coursework. Keyano College

The University of Guelph (U of G) announced that it has become the first international campus to host the SSP International’s Summer Science Program, a renowned STEM program that offers immersive experiences for Grade 11 students at campuses across the United States. The program expanded into Canada this year, partnering with U of G as its first international campus. Through this summer program, Grade 11 students will take part in an immersive STEM experience at U of G in the bacterial genomics program. The inaugural cohort will spend time studying stress resistance in a bacterial strain at U of G in lab facilities and through faculty guest lectures. U of G

Memorial University in St. John’s, Nfld. reduced its base expenditure by $20.85 million to ensure the university’s long-term sustainability. As part of this reduction, 20 permanent and contractual positions have been made redundant, the operating budgets for the Harris Centre and Office of Public Engagement have been eliminated, and the writing centre’s services have been merged with other academic success services. To further address the budget gap, all portfolios received a reduction in their operating budgets and will be pursuing cost reduction measures. These include reducing expenses related to travel, materials and supplies; leveraging retirements to reassess and restructure operations; and reducing budgets for internal funding programs. Memorial University

Kitchener, Ont.-headquartered Conestoga College and Fanshawe College in London, Ont. each announced staffing changes and restructuring as they continue to respond to financial challenges. Conestoga has reportedly eliminated four high-level employees – two senior vice-presidents and two deans (the dean of the School of Interdisciplinary and the dean of the School of Hospitality and Culinary Arts) – and restructured its leadership team. CBC reported that other senior positions have received expanded job portfolios. At least 190 support staff have been laid off at the college and 82 programs were suspended. Meanwhile, Fanshawe College is reportedly moving forward with its workforce reduction, which is anticipated to affect approximately 35 percent of staff or 400 positions. CTV News reported that the college has offset layoffs with early retirements and unfilled vacancies. CBC News (Conestoga), CTV News (Fanshawe)

A report published by the American Association of University Professors (AAUP) explores the development of AI and educational technology and the resulting impacts on academic labour. Drawing on a survey of AAUP members from across the U.S., the report’s authors outlined key areas of concern, including the need for related professional development opportunities, the issues around a lack of transparency with ed-tech and academics’ concerns about their changing working conditions. Faculty members should actively participate in deciding which ed-tech systems are adopted, how they are implemented in their workplaces, and how the resulting benefits are shared among all academic workers, the authors recommended. In an article, John Warner of Inside Higher Ed discusses the report’s considerations for AI and academic freedom, underscoring the finding that faculty have been absent from ed tech development for too long. AAUP

Postdoctoral researchers are more likely to be able to access time on scientific equipment when their application process is made anonymous, according to research done by John Carpenter (Atacamara Large Millimeter/submillimeter Array project) and Isabelle Kingsley (University of New South Wales). An intervention showed how the introduction of a blind review – which shifts the focus from the scientist to the science and thus disrupts any “prestige bias” towards experienced or well-known researchers – affects who gets access to scientific equipment. At one facility, postdoctoral researchers received more time with the equipment, while application success rates for more experienced researchers dropped; at another facility, the time allotted to postdoctoral researchers stayed the same. Kingsley said that these results, reported in Research Evaluation, suggest that “anonymization can level the playing field” and support diversity in science. Nature

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The cricket ick factor: Sustainability is not a selling point for bug-based snacks

Insect-based protein is a low-cost, eco-friendly alternative for supplying a nutrient the world needs – but even that’s not enough to make people reach for it, University of Alberta researchers found.

Claims about health and sustainability were only marginally effective in persuading a test group of 548 Albertans to try or like a packaged cricket-based snack, according to a study published in the journal Sustainability.

The finding provides food for thought on the challenges of convincing people to consider eating insects, said food scientist Wendy Wismer, associate professor in the Faculty of Agricultural, Life & Environmental Sciences and co-author of the study. 

“It’s a common perception that consumers want sustainable food products, but even though we provided that information, it didn’t turn out to be important or attractive to them,” she said.

“You would think it would be good news to the consumer, but in actual fact, it’s a real turnoff,” Wismer added. “That’s really challenging for selling sustainable food products made with insects, or coffee grounds or other upcycled food.”

For the study, researchers surveyed people about their preferences for the types of snack offered, consisting of cricket chips and whole roasted crickets, as well as qualities like taste and texture. Participants were also asked about various photos of the food and about beneficial claims printed on the packaging, such as “certified organic,” “sustainable food source” and “tasty snack.” 

The cricket chips proved to be the most preferred product type for the participants, and though the product benefit claims didn’t effectively boost the overall liking or willingness to try the snacks, the kinds of photos shown on the bags turned out to be an important deciding factor.

Participants were more willing to try the snack if it had a picture of the chips on the bag, but the ick factor was much higher when the bag instead showed a roasted cricket. 

“Visual cues are important; when we don’t like the look of insects, no matter how tasty or how sustainable, the food is still a no for people,” Wismer said.

The researchers also measured people’s personal beliefs about eating insect-based foods. They found that those who’d already tried such foods were more willing to sample and enjoy the cricket-based snack.

Foreign travel or coming from different backgrounds made participants more open to trying the snack, Wismer said.

Several survey participants indicated they wouldn’t eat insects themselves – likely due to the relative abundance and low cost of meat in Alberta compared with global levels, the study suggests – but consumers did consider insects suitable for use in animal feed or pet food.

Meeting squeamish consumers “where they are at” can serve as a realistic starting point for the food industry in introducing alternative fare, Wismer said.

“Don’t expect them to take on dramatically different products, particularly when they don’t believe they’re appropriate to eat. For example, a cookie with insect flour in the biscuit would be a format familiar to the consumer. People like what they know and know what they like.” Bev Betkowski writing in Folio, University of Alberta

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