GOVERNMENT FUNDING & NEWS

Canada has what it takes to establish an internationally leading marine carbon dioxide removal industry

Canada has the potential to be a global leader in the nascent marine carbon dioxide removal (mCDR) industry, according to a new report based on a study led by the federally funded Canada’s Ocean Supercluster. 

mCDR refers to a suite of scientific approaches that aim to enhance the ocean’s natural ability to absorb carbon dioxide from the atmosphere. Identified as a high-potential climate pathway by leading scientists and governments, mCDR may also lessen the negative impact of ocean acidification and improve coastal climate resilience.

Canada is uniquely positioned to lead in this area, given its geographic positioning and leadership in scientific and marine innovation, the report said.

Co-funders of the report include Carbon to Sea, the Atlantic Canada Opportunities Agency, Invest Nova Scotia, and the Centre for Ocean Applied Sustainable Technologies, with additional support from the Ocean Frontier Institute, and COVE.

According to the report, with more research and investment, the mCDR industry could create 90,000 permanent jobs by 2050, increasing Canada’s GDP by $16 billion and generating $50 million to $140 million in federal and provincial tax revenues.

In addition, the mCDR industry may attract investment greater than $30 billion through workforce upskilling and increased exports.

The report highlights areas that Canada can build on, including its decarbonization and sustainable economy efforts, environmental and economic advantages, and incentives for Canada to support mCDR approaches as part of the federal government’s climate competitiveness strategy.

While Canada has already made significant advances in reducing emissions, mCDR has the potential to reduce net carbon emissions in Canada by 90 megatonnes to 170 megatonnes of CO₂ per year, according to the report.

This reduction amounts to approximately 15 percent by 2050 – roughly 40 percent of the carbon removal capacity needed to meet national and global climate goals.

mCDR approaches include: (Graphic illustration by Rita Erven, GEOMAR).

• Biogenic CDR. These approaches involve cultivating either macroalgae or microalgae in the ocean and sinking it. Their key limiting factor is the extent of available coastline. Macro and microalgae potentials were modelled separately, as microalgae-based mCDR is more nascent; it has a large potential for scale in the future, but only if ongoing research proves it to be effective in the next few years.
• Geochemical CDR. These approaches involve adding alkaline rocks to react with acidic CO₂ in the ocean or along coastlines, reducing the ocean’s acidity and thus increasing its capacity to draw down CO₂ from the atmosphere. Their key limiting factor is the availability of alkaline mineral feedstocks.
• Synthetic CDR. These approaches involve powering machines to extract CO₂ or acid from the atmosphere using ocean water’s ability to absorb CO₂. Their key limiting factor is the availability of low-carbon electricity.

The total investment need for a scaled mCDR industry was estimated using interview data on current CAPEX and OPEX costs of operating mCDR projects, in combination with analysis of the possibility of future cost improvements as projects deploy at scale.

This estimated cost to deploy mCDR in Canada is $0.7 billion to $1.8 billion in 2035, and $12 billion to $36 billion  in 2050.

The mCDR industry could generate more than 3,000 jobs by 2035, growing to almost 100,000 jobs by 2050, according to the report.

The deployment potentials within British Columbia (20 MtCO₂/y to 40 MtCO₂/y by 2050) and Nova Scotia (seven MtCO₂/y to 17 MtCO₂/y) are based on the provinces’ coastlines as well as forecasts of their production of alkaline minerals and low-carbon electricity within their borders.

With access to energy and feedstock resources sourced from across Western Canada, British Columbia could benefit from $2 billion to $8 billion of GDP impact and the creation of 11,000‑35,000 jobs by 2050.

Western Canada shows a greater total potential, influenced by the region’s larger population and current extent of industrial activity.

In proportion to its size, however, Atlantic Canada has only 20 percent of the population of Western Canada and generates 15 percent as high of a GDP. Yet its mCDR potential stands at 30 percent of Western Canada’s by 2035 and over 50 percent by 2050.

This means Atlantic Canada’s mCDR potential is more than twice as large relative to its size and any impacts, such as generated GDP and related workforces, will be significant proportional to current activities.

By 2050, depending on the fraction of regional resources that are used for deployment within Nova Scotia compared to neighboring Atlantic provinces, an mCDR industry represents the creation of 4,000 to 22,000 jobs in Nova Scotia and a contribution of $0.6 billion to $4 billion  to the GDP.

This scale of deployment would make mCDR a significant Canadian industry, contributing the equivalent of 0.3 percent to one percent of Canada’s current $2.3 trillion GDP, or up to 50 percent of the current GDP contributions of Canada’s marine economy, which totaled about $50 billion in 2023.

Though Canada is poised to lead, efforts to support research and development and advance regulatory clarity for mCDR are already underway in other regions, including in the European Union, China, and Singapore.

These examples underscore the need for Canadian government and private sector investments to catalyze efficient and responsible development of mCDR as a promising ocean-climate solution, the report said.

By 2035, the most critical step for unlocking the monetization of mCDR, clarify supply chain needs, and create effective permitting structures will be proving the efficacy of mCDR approaches.

This requires adequate funding for fundamental research as well as pilot and demonstration-scale facilities to study long-term impacts, co-benefits, and safety under a range of local conditions.

Open data-sharing with industry and communities will encourage shared learnings and allow project developers to adjust approaches to preempt and mitigate any risks.

Establishing specific government procurement funds for mCDR and amending existing carbon management policies to include CDR would also support growth of the industry.

Canada is already the first country to allocate national funds towards the purchase of CDR pathways, and this initiative must continue to scale, and include mCDR, in order to create stable demand, the report said.

By doing so, Canada’s government can set a baseline demand for CDR, mitigate industry-wide risk and curb uncertainty about long-term funding for startups and operations with high capex and front-end costs.

Canada can also encourage private industry support for CDR, including mCDR, by successfully integrating CDR credits into Canada’s national carbon trading system.

Finally, early Canadian mCDR pilots can and must prioritize engagement and collaboration with coastal communities, including Indigenous communities, to ensure long-term success and ongoing social license, the report said.

Canada’s strength in research, from academic research through engineering of novel technologies, places it in an advantaged position to cultivate work on mCDR impacts, including open system modelling and monitoring.

Said the report: “Support for work in this space could establish Canada as a world leader in the scientific and engineering aspects of mCDR, exporting project expertise, sensor and deployment technologies, and physical equipment as measurement, reporting and verification solutions for mCDR approaches are developed and standardized.” Canada’s Ocean Supercluster

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Federal-Alberta government agreement on new oil-bitumen pipeline to B.C’s coast faces stiff First Nations opposition

The Government of Canada and the Government of Alberta signed a sweeping new energy agreement that both sides say will position Canada as a global energy superpower while still working toward net-zero emissions.

The memorandum of understanding includes a pledge for a new Alberta oil-bitumen pipeline to the West Coast, with Indigenous co-ownership and the suspension of clean electricity regulations for Alberta with the proviso that the province increase its industrial carbon price.

Both levels of government are committing to a new industrial carbon pricing agreement by April 1 that will see Alberta’s price ramp up to $130 per tonne.

The MOU includes a declaration by the federal government that an Indigenous co-owned Alberta bitumen pipeline to Asian markets is a project of national interest, the Alberta government said. That means the project, if it materializes, could be referred to the federal Major Projects Office for fast-tracking.

According to the MOU, the federal government won’t implement its proposed cap on the oil and gas industry and, if the pipeline comes to fruition, the government would adjust the current oil tanker ban so bitumen could be exported to Asian markets.

The deal, which Prime Minister Mark Carney and Alberta Premier Danielle Smith signed on November 27, says that the two sides will consult with British Columbia.

“Canada and Alberta agree to engage with British Columbia immediately in a trilateral discussion on the pipeline project, and during the potential development and construction of the bitumen pipeline referred to in this MOU, and to further the economic interests of B.C. related to their own projects of interest that involve the Province of Alberta including [electricity] interties,” the MOU says.

The new pipeline could carry one million barrels a day and would be in addition to projects Trans Mountain Corp. is pursuing to boost capacity on its system.

While B.C. supports expanding capacity on the Trans Mountain pipeline, Premier David Eby has said he’s not in favour of a new pipeline to his province’s coast – nor the idea the oil tanker ban could be lifted to support it.

Eby said the pipeline has no proponent, no route, no money and no First Nations support, and “it cannot draw limited federal resources, limited Indigenous governance resources, limited provincial resources away from the real projects that will employ people.”

The MOU commits both governments to working with oilsands companies to strike a deal by April on implementing the $16.5-billion Pathways Alliance project, a carbon capture and storage network for Alberta’s oilsands.

Both governments committed to partner with the Pathways Alliance companies “to finance and construct” the project, the Alberta government said.

The MOU also commits both sides to a “methane equivalency agreement” by April, with a 2035 target date and a 75-percent reduction target relative to 2014 methane emission levels.

Steven Guilbeault, who has been serving as Minister of Canadian Identify and Culture and is a longtime environmentalist, resigned as a member of the Liberal cabinet hours after Carney signed the deal.

Guilbeault said in a post on X that he “strongly oppose[s]” the MOU. He noted there was no consultation with the Indigenous nations of the West Coast of British Columbia or with the provincial government, “who would be greatly affected by this agreement.”

Lifting the tanker ban on the West Coast would significantly increase the risks of accidents in the region, he said. Its removal would also hinder the creation of a marine conservation area in the Great Bear Sea, which the federal government has been actively developing with Indigenous partners and the B.C. government for several years, he added.

“The proposal to exempt Alberta from the Clean Energy Regulations in exchange for stricter industrial carbon pricing rules and the Pathways project is, in my view a serious mistake,” Guilbeault said.

Guilbeault said he’s staying on as the Liberal MP for Laurier-Sainte-Marie.

Alberta Premier Smith, in a statement, said: “This is Alberta’s moment of opportunity to take the first steps toward being a global energy superpower and show the nation that resource development and sustainability can coexist.”

“There is much hard work ahead of us, but today is a new starting point for nation building as we increase our energy production for the benefit of millions and forge a new relationship between Alberta and the federal government,” she said.

B.C.’s Coastal First Nations-Great Bear Initiative, which represents eight First Nations on the north and central coast of B.C., said they will not support any lifting of the federal oil tanker ban.

“As the Rights and Title Holders of the Central and North Coast and Haida Gwaii, we are here to remind the Alberta government, the federal government, and any potential private proponent that we will never allow oil tankers on our coast, and that this pipeline project will never happen,” Marilyn Slett, president of the Coastal First Nations and Chief of the Heiltsuk Nation, said in a statement.

“Throughout this process we have been met with a wall of silence from the federal government. Such conduct is not honourable and is fundamentally at odds with Canada’s constitutional, legislative, and international obligations to coastal First Nations,” she said.

“Any attempt to use a federal-provincial agreement to sidestep Indigenous consent is fundamentally unlawful,” Slett said.

“This MOU is nothing less than a high-risk and deeply irresponsible agreement that sacrifices Indigenous peoples, coastal communities, and the environment for political convenience,” said Grand Chief Stewart Phillip, president of the Union of B.C. Indian Chiefs.

“British Columbians and First Nations have been crystal clear: crude oil tankers do not belong in the Great Bear Sea. We will not stand by while the Carney government and Alberta attempt to bulldoze our rights and disregard the catastrophic risks of a spill in the corporate profit interests of the global fossil fuel industry,” Phillip said.

Members of the Coalition for Responsible Energy said in a statement that the MOU “demonstrates that both governments are committed to serving the interests of oil and gas companies and their wealthy executives at the expense of all Canadians, Indigenous Peoples, and the air, land, and water we all depend on.”

“This entire MOU is pure deception,” said Phillip Meintzer, co-founder of Alberta’s Coalition for Responsible Energy (C4RE).

“There is no such thing as low-emission bitumen, carbon capture doesn’t work at scale, Indigenous co-ownership is not the same as reconciliation, and doubling down on fossil fuels and AI data centres will not make life cheaper for everyday working Canadians. The whole thing is a farce, there is no grand bargain here,” Meintzer said. The Globe and Mail, Govt. of Alberta, Union of B.C. Indian Chiefs

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The Government of Ontario and the Government Manitoba reached draft agreements with the Government of Canada to streamline reviews for major projects, as part of a larger push by Prime Minister Mark Carney to fast-track resource development and infrastructure building in the face of U.S. trade uncertainty. The co-operation agreements – open for a one-month consultation – will allow the provinces to take the lead role in environmental assessment and Indigenous consultation for major projects – a significant devolution of authority from Ottawa to the provinces. Prince Edward Island and New Brunswick signed similar draft agreements in October, while British Columbia has had an agreement with Ottawa in place since 2019. Under the mantle of “one project, one review,” the agreements are meant to reduce overlap between provincial and federal environmental impact assessments and Indigenous consultation, which are required before major projects, such as large mines, pipelines or dams, can be built. The agreements will apply to projects that fall under the purview of the federal Impact Assessment Act, which is designed to evaluate and mitigate the potential environmental consequences of large-scale developments. The Globe and Mail

The Climate Action Tracker (CAT) downgraded Canada’s overall rating to “highly insufficient.” CAT is a scientific collaboration that measures the effect of government pledges and actions against the objectives of the Paris Agreement on climate change. CAT said it downgraded Canada’s rating “primarily due to weakened policy ambition, slow implementation, and a widening gap between current emissions levels and Canada’s 2030 target.” Canada continues to develop its fossil fuel industry and new federal legislation could fast-track even more fossil fuel development, CAT said. Crude oil production was close to record levels in early 2025, while coal exports stayed elevated after their record-breaking surge in 2023. “Canada also continues to export oil and fossil gas at such a scale that the resulting emissions from their final combustion exceed the country’s total domestic emissions.” The removal of the consumer carbon price in 2025 under Prime Minister Mark Carney “marks a significant setback, undermining one of the most effective tools for reducing emissions and casting further doubt on Canada’s ability to meet its climate targets,” CAT said. CAT

The Government of Canada announced several measures to support the country’s steel and softwood lumber industries. They include a new global 25-percent tariff on targeted imported steel-derivative products such as wind towers, prefabricated buildings, fasteners and wires. To make it more affordable to transport Canadian steel and lumber across the country, the government will work with railway companies to cut freight rates for transporting Canadian steel and lumber interprovincially by 50 percent, beginning in spring of 2026. In addition, the government will earmark more than $100 million over two years, starting in 2025-2026, in program costs to provide support to eligible employers in all sectors with an active Work-Sharing agreement and who commit to supporting training for employees working reduced hours. This measure will increase the income replacement for eligible workers, helping up to 26,000 Canadian workers in various sectors, including steel and lumber, the government said. To ensure companies have the financing and credit support they need to maintain and restructure their operations during this period of transformation, the government will provide an additional $500 million to the Business Development Bank of Canada Softwood Lumber Guarantee Program. To support softwood lumber firms facing liquidity pressures, the government will earmark $500 million in funding under the Large Enterprise Tariff Loan facility. PMO’s Office

Nearly two-fifths (39 percent) of Canadian businesses are either very likely or somewhat less likely to pass cost increases due to tariffs onto their customers over the next 12 months, according to a report by Statistics Canada. Meanwhile, 13.6 percent were either very unlikely or somewhat unlikely to do the same, and 15.2 percent were unsure. Nearly one-third (31.4 percent) of businesses did not expect any cost increases due to tariffs over the next 12 months. In the fourth quarter of 2025, 61.2 percent of businesses across Canada expect cost-related obstacles over the next three months, similar to 62.2 percent in the third quarter. For the Canadian Survey on Business Conditions, cost-related obstacles consist of inflation; cost of inputs; interest rates and debt costs; cost of insurance; cost of real estate, leasing or property taxes; and transportation costs. Over two-fifths (41.1 percent) of businesses expect inflation to be an obstacle over the next three months. Recruiting skilled employees is the second most expected obstacle, anticipated by over one-quarter (26.4 percent) of businesses. When asked to identify the most challenging expected obstacle over the next three months, 10.4 percent of businesses expected it to be inflation, 10.4 percent indicated recruiting skilled employees and seven percent reported the cost of inputs. Statistics Canada

Government of Canada ministers participated in a groundbreaking ceremony to showcase the expansion of Finland-headquartered Nokia’s Ottawa facility. Nokia’s work will include the use of artificial intelligence and machine learning to develop new innovations and applications in advanced networking. Advanced 5G networks will bring transformative economic and technological benefits to Canadians, and this next step in wireless networking is expected to add over $200 billion to Canada’s economy by 2040, the government said. The federal government contributed $40 million to this project through the Strategic Response Fund, while the Government of Ontario contributed a $30-million loan through Invest Ontario. Nokia is revitalizing and growing its core lab space as well as undertaking a new suite of R&D activities that represents the next step in 5G advanced wireless networking. Tobi Lütke, CEO of Shopify, said in a post on X that government is essentially bribing Nokia “to put these jobs into Canada by paying hundreds of thousands of dollars per job from taxpayer money.” This sort of foreign direct investment is “toxic” and isn’t good for Canada’s economy, and American and overseas branch offices can employ Canadians at half the cost to all the Canadian companies around them “due to these subsidies,” Lütke said. Innovation, Science and Economic Development Canada

The Government of Canada is investing up to $210 million, through the Strategic Response Fund, in IBM’s $662-million project to expand semiconductor packaging and commercialization capabilities at IBM Canada’s Bromont, Que. facility and the MiQro Innovation Collaborative Centre in Bromont. This investment will bring new advanced packaging and R&D capabilities for next-generation semiconductors to Canada, while also helping Canadian companies accelerate commercialization of their products and supporting supply chain resiliency here at home, the government said. IBM will be able to develop and assemble more complex semiconductor packaging for the latest generation of transistors. Canada is investing to strengthen domestic production of semiconductors, including AI and high-performance computing components that will drive the competitiveness and resilience of Canada’s AI ecosystem, the government said. Innovation, Science and Economic Development Canada

[Editor’s note: The federal government is providing a total $250-million contribution to IBM and Nokia – both foreign-headquartered firms, each with multi-billion-dollar annual revenues. After Budget 2025 was released, the Council of Canadian Innovators (CCI) said Ottawa needs to make economic sovereignty its No. 1 priority to ensure federal spending benefits Canadian-headquartered companies, not foreign firms. The cutting-edge technologies developed at IBM and Nokia’s facilities, and the intellectual property associated with them, will benefit Finland and the U.S. – not Canada. These subsidies to foreign companies don’t bode well for Canadian-headquartered companies when it comes to how the Mark Carney government will spend Budget 2025’s $656.9-million allocation to Innovation, Science and Economic Development to spur commercialization of dual civilian-military solutions across aerospace, artificial intelligence, biodefence, and life sciences and other key industries. As the CCI said, the government needs a “serious conversation” about economic sovereignty, as well as a clear legislated definition of a Canadian technology company].

 The Government of Canada, through Atomic Energy of Canada Limited (AECL) and Canadian Nuclear Laboratories, is contributing $33 million in research activities over three years to the new Centre for Fusion Energy in Ontario. This includes support for General Fusion, and investing in Fusion Fuel Cycles, a joint venture between Canadian Nuclear Laboratories and Kyoto Fusioneering, which is pursuing the UNITY-2 test facility for the demonstration of the fusion fuel cycle, to be located at AECL’s Chalk River Laboratories. The Government of Ontario will contribute $19.5 million through Ontario Power Generation. Stellarex, a Toronto- and Princeton, N.J.-based firm that spun out of Princeton University, will contribute $39 million. The centre will work to develop fusion energy capabilities and advance research and development in the field. Canadian Nuclear Laboratories

Canada is stuck in a “vicious circle” of low productivity and needs to lower the regulatory burden for companies and increase competition to improve the country’s growth prospects, said Nicolas Vincent, deputy governor of the Bank of Canada. Vincent said Canada is facing a “systemic problem” when it comes to productivity – essentially output per worker, or how efficiently labour and capital are combined to produce goods. Canada’s productivity growth has lagged peer countries for the past two decades, leaving Canadians poorer than they would otherwise be and the economy less resilient to shocks, such as U.S. tariffs. This is the result of structural problems that lead to low business investment, limit competition and prevent companies from growing, Vincent said. “To put it bluntly, we’re stuck in a vicious circle. When productivity is weak, it’s much harder to meet current challenges and seize opportunities for the future,” he told a group of economists in Quebec City, according to the text of his speech. “There is no quick or easy way to improve productivity, and no single sector can do it alone. The challenge is complex, and long-standing structural issues are at play. If we want to fix this, we’ll need to be thoughtful, systematic and resolute,” Vincent said. He suggested three areas policymakers should focus on: improving the country’s investment climate, increasing competition and developing talent. Bank of Canada

Sean Fraser, Minister of Justice and Attorney General of Canada and Minister responsible for the Atlantic Canada Opportunities Agency (ACOA), appointed members the first-ever Atlantic Economic Panel. Ottawa said the panel’s work will reflect the urgency of this moment – one shaped by shifting global trade, rapid technological change, and the need for bold, practical solutions that raise productivity and unlock long-term growth for Atlantic Canada. The members of the panel are:

• Don Mills (Chair) – President of Crane Cove Holdings; co-founder of Narrative Research; former CEO of Corporate Research Associates; co-author of the book Toward Prosperity: The Transformation of Atlantic Canada’s Economy.
• Cathy Bennett – Co-founder of Sandpiper Ventures; former CEO of Bennett Group; experienced leader in energy, tech and public policy.
• Joyce Carter – President and CEO of Halifax International Airport Authority; recognized for driving economic growth and aviation leadership.
• Mike Cassidy –  CEO of the Cassidy Group, which owns Coach Atlantic and Maritime Bus. He is an entrepreneur with 40+ years in diverse sectors; leads companies in transportation, tourism, agriculture, and real estate.
• J. Scott McCain – Chairman of McCain Foods; President of JSM Capital; former senior executive at Maple Leaf Foods.
• Chief Terry Richardson – Chief of Pabineau First Nation; former Canadian Armed Forces member; advocate for mining programs and community health.
• Anne Whelan – CEO and principal shareholder of Seafair Capital; lead director of the Bank of Canada; corporate director with CSA Group and Nova Leap Health; Vice-Chair of The Gathering Place.

The panel members will meet with people and businesses across Atlantic Canada in 2026 to hear what is working, what is holding the region back and where Atlantic Canada can win. They will identify not only sector-specific opportunities, but also the structural, regulatory and cultural barriers that may be limiting the region’s full economic potential. The panel will deliver a final set of recommendations by September 2026. ACOA

Build Canada Homes’ new investment policy focuses on deploying public capital to attract investment from private, philanthropic and other orders of government to back mixed income and affordable housing projects. The new agency won’t fund firms’ technology or other capital needs unless they are needed to directly support a proposed delivery of Build Canada Homes affordable housing or portfolio of projects. Budget 2025 allocated $13 billion over five years to build affordable housing using modern methods like prefabrication. Build Canada Homes has started looking for qualified builders to develop parcels of federal land in Edmonton, Winnipeg, Toronto and Ottawa. The agency hopes to drive demand for innovative builders, and said businesses that need other support should look to their regional development agencies or the government’s Strategic Response Fund. Build Canada Homes

The dangers children face online constitute a national emergency, said a coalition of child advocates and medical organizations that called for the Government of Canada to take action. “Unlike every other industry that affects children, from cars to pharmaceuticals to toys to food safety, the tech industry has been allowed to self-regulate with tragic consequences,” said Andrea Chrysanthou, chair of the board for Children First Canada, at a press conference on Parliament Hill. The advocates say children are being exploited, extorted, bullied – and in some cases, kids have died as a result of online harms. “Increasingly, online harms are contributing to a public health crisis among youth with devastating effects on their mental health, self-esteem, and even their physical safety,” said Dr. Margot Burnell, president of the Canadian Medical Association. In recent months, the growing availability of AI chatbots has led to new concerns about their effect on children, including cases involving suicide. John Matheson, Canada lead for Reset Tech, a global non-profit that researches digital media exploitation, said the new federal online safety law should cover both AI chatbots and online scams. Federal Artificial Intelligence Minister Evan Solomon said in late October his upcoming privacy bill could include age restrictions on access to AI chatbots to protect children. The Canadian Press

Competition Bureau Canada is investigating Vancouver-based Well Health Technologies Corp., a consolidator of medical clinics and health-technology companies, over concerns that some of its biggest acquisitions this year are lessening competition for AI transcription and medical-record software. The Bureau filed an application in Federal Court on November 12 for a court order to obtain information from Well Health, with a hearing set for December 9. The request is related to Well Health’s acquisition of a controlling interest in Healwell AI Inc. on April 1 and Healwell’s concurrent acquisition of Orion Health Holdings Ltd., a major global provider of medical-record software based in New Zealand. The Competition Bureau is seeking internal documents and communications, some of which go back to 2022, and has requested written information, such as how the companies plan to store, use and monetize patient data. Well Health owned 227 medical clinics – a mix of primary care, diagnostics and executive-health locations – as of September. 30, according to third-quarter financial filings. Along with Telus Health and a Loblaw-owned subsidiary, QHR Technologies Inc., Well Health is one of the three major providers of medical-record software for doctors’ offices in Canada. The Globe and Mail

The Government of Ontario and the Marten Falls First Nation signed a community partnership agreement to accelerate development of the all-season Marten Falls Community Access Road (MFCAR), a key link in the proposed road network leading to critical mineral deposits in the Ring of Fire in northern Ontario. The MFCAR will connect the Marten Falls First Nation to the broader provincial highway network, supporting economic opportunity and access to critical services. Construction of MFCAR is to start as soon as August 2026. The Ontario government is providing the Marten Falls First Nation with up to $39.5 million for community infrastructure. The agreement also reaffirms Ontario and Marten Falls First Nation’s commitment to the completion of the planning, development and co-completion of the planning, development and construction of the proposed Northern Road Link. Govt. of Ontario

The Government of Ontario approved Ontario Power Generation’s (OPG) $26.8-billion plan to refurbish four CANDU nuclear reactors at the Pickering Nuclear Generating Station. The refurbishment will extend the facility’s operations to deliver affordable, reliable and clean power for up to 38 years. Pending final licensing approvals from the Canadian Nuclear Safety Commission, OPG will begin the Project Execution Phase to refurbish Pickering “B” units five to eight in early 2027, with completion expected by the mid-2030s. Once completed, Pickering will generate an increased capacity of up to 2,200 megawatts of electricity, equivalent to powering 2.2 million homes. The Pickering "B" refurbishment is also expected to secure a long-term supply of Cobalt-60, a life-saving medical isotope used worldwide in cancer treatments and in the sterilization of medical equipment and food products, while supporting the government’s work to double the number of medical isotopes produced in the province over the next four years. Govt. of Ontario

The Government of British Columbia will introduce legislation next spring to modify its zero-emission vehicle sales targets to bring them in line with the reality that electric vehicle sales are falling across North America, including in B.C., said Energy Minister Adrian Dix. “People will know that those current targets, which are at 90 percent by 2030, and 100 percent by 2035, are no longer realistic,” he said, blaming the federal government’s ending of its rebate program and the policies of U.S. President Donald Trump for declining EV sales. Asked what the new targets will be, Dix said he and his team are awaiting a review of the government’s climate plan and will use its findings to work with Ottawa on a new target that he hopes will be implemented across Canada. In the meantime, he said the government will be introducing regulatory changes that expand the types of vehicles that count toward the target and give manufacturers credit for making efforts such as lowering prices, offering low-cost or no-cost financing, and helping install charging infrastructure. Vancouver Sun

Innovate BC rolled out a new Microgrant Platform designed to speed up funding for early-stage companies across the province. The first call under the platform, called the Go-To-Market Microgrant, offers between $10,000 and $50,000 in non-repayable funding to help B.C. startups with proven technologies move toward commercialization and early revenue. The funding can cover activities like building brand awareness, launching marketing campaigns, or investing in materials and talent to land first customers. Companies need to contribute at least 25 percent of project costs in cash, with Innovate BC covering up to 75 percent. The program promises a streamlined four-to-six-week turnaround from application to contract, with funded activities needing to wrap up by March 20, 2026. To qualify, companies must be for-profit, headquartered in B.C., and have a product or service either in market or ready to sell. They also need to show clear market opportunity, some secured funding or early revenue, and the capacity to execute. The intake window for this first call closes November 30, 2025. Innovate BC

The Government of Alberta proposed legislation that would pave the way for data centres to bring their own power generation. Bill 8, the Utilities Statutes Amendment Act, 2025, includes amendments that would see data centres that bring their own generation prioritized, accelerating the approval process and supporting their connection to the grid. This would support both the reliability of the power grid for Albertans and speed access to market for industry, the government said. The changes would also ensure that data centre projects – not Alberta ratepayers – would pay for necessary transmission upgrades for data centre grid connections. If passed, Bill 8 also would build on changes made in the spring through the Energy and Utilities Statutes Amendment Act, 2025 to support the implementation of the Restructured Energy Market. This includes the finalization of the market’s framework, based on extensive industry engagement by the Alberta Electric System Operator. Bill 8 also proposes changes to enhance electricity transmission policy, recognizing incumbent generators and incentivizing more efficient use of existing power infrastructure. It will also enable Alberta’s hydrogen-blended natural gas regulatory framework around hydrogen blending pilot projects. Govt. of Alberta

The Government of Alberta proposed legislation that would give doctors flexibility to work in both the public health care system and private settings. “Dual practice” would allow physicians to continue providing insured services through the provincial health insurance plan while also delivering private services. The proposed changes comply with the Canada Health Act, the provincial government said. Dual practice exists in New Brunswick and Quebec and is widely used in countries with top-performing health systems, including Denmark, the Netherlands, United Kingdom, France, Germany, Spain and Australia, the government said. If passed, this dual practice model would be closely monitored to protect Alberta’s public health care system. The government, for example, would ensure that dual practice physicians maintain separate records for the services they provide, so no public funding subsidizes private services. The government also is proposing separate legislation that would make private drug plans, for those who have them, the first payer, with public programs acting as a “safety net.” Govt. of Alberta

The Government of Alberta plans to use AI technology to draft a forthcoming piece of legislation. Dale Nally, Minister of Service Alberta and Red Tape Reduction, has been asked to lay out the standards for a product to be legally labelled as “Alberta whisky," and he said the task represents the right sort of test case for the burgeoning technology. The legislation is going to be “laying out a process from the grains to the water and how things are distilled; if a mistake is made, we can course-correct,” he said. Alberta would potentially be the first jurisdiction in Canada to use AI in such a way, Nally said. Jonathan Schaeffer, a professor emeritus of computer science at the University of Alberta and the former Canada Research Chair in artificial intelligence, sees the move as "innovative and groundbreaking" – as long humans must understand what the legislation is saying, what it's missing and what needs to be fixed. CBC News

The Government of Alberta proposed legislation to protect AIMCo, the province’s pension fund manager, from being sued for decisions it made before November 2024. AIMCo, which manages about $180 billion in assets for public pension plans in the province, faces a potential claim of $1.3 billion from some public sector pensions after it suffered roughly $2 billion in losses tied to a risky investment strategy in 2020. The change “will protect taxpayers from financial risk arising from past investment decisions made by the prior AIMCo leadership,” the government said. Separate proposed legislation would shield companies from “unfair lawsuits” under the federal greenwashing law when they make “good-faith” climate-related financial disclosures. Another piece of proposed legislation would introduce a provincial corporate income tax levy of up to two percent of the value of computer equipment for large data centres (with 75 megawatts of power or more). Data centres that bring their own power generation would pay a lower rate. Govt. of Alberta

RESEARCH, TECHNOLOGY & INNOVATION

Funding cuts by the Trump administration are hobbling research, clinical trials and international collaborations in Canada

Funding cuts by the Trump administration to the U.S. National Cancer Institute (NCI) and other federal agencies are negatively impacting research, clinical trials and international scientific collaborations Canada.

The Pediatric Brain Tumor Consortium – a network of 15 centres across the U.S. and Canada that are funded by the NCI – announced in August that it would be stopping people from enrolling in its clinical trials across North America, after losing U.S. federal funding beyond March 2026.

Meghann Lloyd, a physical-activity and disability researcher at Ontario Tech University in Oshawa, investigates the incidence of preventable health conditions among children with disabilities globally.

In June 2024, Lloyd was part of a team that submitted an NIH grant application with a U.S. colleague. The team heard in May 2025 that the research was “not aligning with the goals of the [U.S.] administration.”

 Lloyd said it seems as if “disability has been enveloped or absorbed under this anti-equity, diversity and inclusion [rhetoric].”

Health scientist Jean-Christophe Bélisle-Pipon at Simon Fraser University in Burnaby studies the ethical, legal and social impacts of medical artificial intelligence, and his core research is NIH-funded.

Bélisle-Pipon said he met with the NIH program officer, “and they reviewed my research program to make sure that I don’t engage any more on DEI (diversity, equity and inclusion).” Leah Cowen, vice-president for research, innovation and strategic initiatives at the University of Toronto, said that because of various U.S. executive orders and subsequent legal challenges, in vaccine-hesitancy research “we’ve seen programs in that space specifically paused.”

Five NIH projects with sub-awards held by researchers at the University of Manitoba, worth a total of US$220,000 in the 2025-26 fiscal year, have been terminated.

Stefanie Colombo, a specialist in aquaculture nutrition at Dalhousie University’s agriculture campus in Truro, focuses on improving nutrition for farmed seafood, and typically works in partnership with the U.S. Department of Agriculture.

Now, bi-national projects have shifted fundamentally or been eliminated, a move that Colombo said stymies innovation in research that benefits crop, animal and aquaculture-based food industries.

Jérôme Marty, executive director of the International Association for Great Lakes Research, said the Trump administration’s cuts are affecting scientists working on projects all around the lakes, from invasive species control to cleaning up legacy pollution, according to an article by science journalist Brian Owens in University Affairs.

Collaborations with NASA have also been thrown into disarray as projects are cancelled and scientists fired or forced into retirement.

The Canadian Space Agency is providing one satellite and three scientific instruments to NASA’s Atmosphere Observing System mission, a constellation of four satellites to measure aerosols, clouds and water vapour in the atmosphere and how they affect weather, air quality and climate.

But now the mission is in jeopardy, targeted by the Trump administration because of its connection to climate science, said Aldona Wiacek, an atmospheric scientist at Saint Mary’s University in Halifax.

In addition, NASA’s contribution to the Canadian Micro-Pulse Lidar Network – part of a global network coordinated by NASA to track wildfire smoke and other pollutants in the atmosphere –appears to be on the chopping block, and the long-time NASA scientist who built and ran the network has taken early retirement.

While the loss of funding is a blow to many researchers, the disruption to longstanding research relationships is just as damaging.

“People who have built collaborative relationships with labs in the U.S. over 20 years are suddenly being forced to find someone else to work with,” said Vincent Poitout, vice-rector of research and innovation at Université de Montreal. “That’s not something you can measure in terms of money.” Nature, University Affairs.

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Ontario is the “engine” of Canada’s artificial intelligence economy, according to a new report from the Toronto-based Vector Institute, done by Deloitte. AI-related jobs in Ontario contributed between $42 billion and $52 billion over the last five years – nearly half of the estimated $82 billion to $100 billion contributed by AI-related jobs nationally, the report said. Ontario has attracted $446 million in federal AI-related investment, and most recently for every federal dollar invested, there was $9.53 in private sector investment. Future adoption of AI is poised to generate an additional $122 billion in cumulative real GDP in Ontario by 2035, and Canada as a whole is projected to achieve $298 billion in AI-driven economic growth. The number of companies investing in AI in Ontario has increased by 149 percent since 2019. This growth has created over 17,000 new AI-related jobs in the past year alone, bringing total AI-related employment to 39,327 positions. This is expected to increase average real wages by $1,028 for Ontario workers by 2035 and boost labour productivity by 1.6 percent by 2035, the report said. For every dollar of federal investment of $1.1 billion nationwide there was $10.64 in private sector investment. AI is projected to create 41,500 new jobs annually across the country by 2035 and boots national labour productivity by 1.5 percent by 2035. Vector Institute

The University of Toronto (U of T) will receive more than $52 million to upgrade one of the fastest supercomputers in Canada – a shared resource housed at U of T that allows researchers across the country to address key challenges in areas such as health care, drug discovery, sustainable transportation, AI and advanced manufacturing. In a recent announcement, the Digital Research Alliance of Canada – a non-profit organization funded by the Government of Canada and the Government of Ontario – committed to investing more than $95 million in advanced research computing in Ontario at host sites at U of T and the University of Waterloo.  The more than $52 million earmarked for U of T’s SciNet – which includes matching funds from the province and Compute Ontario – will go toward replacing the Niagara supercomputer with a new computer network with roughly three times the raw computing power, more GPU capacity and storage boosted by an estimated 80 percent. U of T

Mila, the Quebec Artificial Intelligence Institute, and the Technology Innovation Institute (TII), the applied research arm of Abu Dhabi’s Advanced Technology Research Council, announced a new strategic partnership. Through this partnership, TII researchers will collaborate and contribute to Mila’s world-class innovation ecosystem. TII will also create a corporate research lab within Mila, enabling daily collaboration with AI scientists and establishing TII’s presence in Canada. “Mila and TII share a deep commitment to pushing the frontiers of AI while advancing real-world applications in areas such as large language models, sustainable energy, robotics, and AI safety,” said Valérie Pisano, president and CEO of Mila. “By bringing our teams together, we are creating the conditions for an ambitious collaboration.” The partnership comes at a moment of rapidly strengthening Canada-UAE ties in artificial intelligence, including the Canada-UAE memorandum of understanding to support new investments in shared priorities such as digital infrastructure and AI adoption. Mila

A copyright infringement lawsuit several media companies launched against Toronto AI developer Cohere Inc. will be allowed to proceed, a U.S. court has ruled. New York Judge Colleen McMahon labelled Cohere’s arguments to dismiss the lawsuit as being “without merit” and said the publishers have made “adequate” allegations. The decision comes months after publishers including the Toronto Star, Condé Nast and McClatchy had alleged Cohere infringed on their copyright by scraping their articles from the internet without the publishers’ permission or compensation. The group of outlets, which also includes Forbes Media, Guardian News, the Los Angeles Times, Vox, Politico and the Atlantic, asked the court to stop Cohere from using their copyrighted works for training or fine-tuning AI models. They want the company to pay up to $150,000 for every article they allege the firm unlawfully reproduced, distributed and displayed. Cohere argued that the case should be dismissed because media companies deliberately used its software to “manufacture” a case and Cohere has no reason to believe any real customer has ever used its technology to infringe on publisher copyright. The Canadian Press

Toronto-based Stablecorp Digital Currencies Inc., a Canadian digital asset infrastructure company, said QCAD Digital Trust has received regulatory approval for what Stablecorp is calling the country’s first compliant Canadian dollar stablecoin. The company said the QCAD Digital Trust has received a final receipt for its prospectus under the Canadian regulatory framework for stablecoins. QCAD Digital Trust is an Ontario trust that holds the reserve assets on behalf of holders of QCAD digital tokens. QCAD maintains a stable value of one Canadian dollar, by holding one-to-one dollar reserves for each issued QCAD token at regulated financial institutions. Stablecorp said the digital tokens will help individuals and businesses to send and receive funds across Canada and around the world at a lower cost than traditional methods. The federal government outlined plans in Budget 2025 to regulate stablecoins, saying the move will help make them safer and build trust in digital payments. Canada Stablecorp. Inc.

Vancouver-based Svante Technologies Inc., which offers solid sorbent-based carbon capture and removal solutions, announced that Södra, Sweden’s largest forest-owner association, will test Svante’s carbon capture technology at its Värö industrial site in early 2026  and evaluate opportunities for large-scale capture in the future. This pilot project marks Svante’s first deployment in the European Union forestry sector and represents a significant step toward scaling biogenic carbon capture in pulp and paper production, the company said. The pilot will evaluate the performance of Svante’s proprietary solid sorbent filters in capturing biogenic CO₂ emissions from Södra’s pulp operations, with the goal of enabling new circular value chains and supporting Sweden’s climate targets. Södra’s pulp production generates biogenic CO₂, which is a renewable carbon source with potential applications across food, water purification, chemical manufacturing, and e-fuels. By capturing and refining this CO₂, the pilot aims to unlock new revenue streams and extend the value of forest raw materials without increasing harvesting. Svante Technologies

Calgary-based ag-tech company Sultech Global Innovation Corp. signed a memorandum of understanding with ADNOC Sour Gas, to bring commercially proven next-generation micronized elemental sulphur technology to the United Arab Emirates. The partnership will transform sulphur – a by-product of sour gas processing – into a high-value and clean tech agricultural fertilizer. Under the MOU, the companies will conduct a feasibility study and pilot production program to establish the UAE’s first commercial micronized sulphur manufacturing facility. The initiative will integrate Sultech’s patented micronization process within ADNOC’s sulphur granulation at the Shah Gas Plant, the world’s largest ultra-sour gas operation. In parallel with the UAE initiative, Sultech is finalizing plans for a new facility in Alberta, co-located with the natural gas sector to minimize sulphur disposal, cut emissions and advance circular-economy practices. The project was made possible with the support of Emissions Reduction Alberta, through a $5-million investment. The site will serve as a North American manufacturing and export hub, leveraging Canada’s expertise in responsible resource development and agricultural innovation. Sultech

Montreal-based carbon removal company Deep Sky announced it’s deploying direct air capture (DAC) technology developed by Airbus, Europe's largest aerospace company, at Deep Sky's flagship facility, Deep Sky Alpha, in Innisfail, Alberta. The DAC unit has the capacity to remove 250 tons of CO₂ per year and was successfully delivered recently after only eight months of engineering and manufacturing. The modular hardware unit captures carbon dioxide from ambient air. Its technology is derived from Airbus (Defence and Space) life-support systems aboard the International Space Station, and was brought to market in 2023. The system inside the module employs a solid amine-based filter to capture CO₂, which is then heated to release highly concentrated CO₂ while returning CO₂ lean air to the atmosphere. Deep Sky

University of Toronto graduate Vishar Yaghoubian, co-founder of Toothpod, alongside chief technology officer Brian Webb, launched online sales of Toothpod, a chewable tablet designed to enhance dental hygiene. Inspired by the prevalence of untreated tooth decay affecting over 2 billion people globally, Toothpod aims to provide an accessible dental care solution. The product, which is not a replacement for brushing, is intended to be chewed after meals to clean the mouth, maintain acidity levels, and leave a fresh taste. Active ingredients include magnolia bark extract, resveratrol and hydroxyapatite. Toothpod has already sold over 20,000 units to U.S. dental clinics, with plans for Canadian manufacturing and further clinical studies in Boston. The company is backed by notable investors, including former AstraZeneca Canada CEO Michael Cloutier. Startup Ecosystem Canada

Meta halted internal research that purportedly showed that people who stopped using Facebook became less depressed and anxious, according to a legal filing. The social media giant was alleged to have initiated the study, dubbed Project Mercury, in late 2019 as a way to help it “explore the impact that our apps have on polarization, news consumption, well-being, and daily social interactions,” according to the legal brief, filed in the United States District Court for the Northern District of California. The newly released legal brief is related to high-profile multidistrict litigation from a variety of plaintiffs, such as school districts, parents and state attorneys general against social media companies like Meta, Google’s YouTube, Snap and TikTok. The plaintiffs claim these businesses were aware that their respective platforms caused various mental health-related harms to children and young adults, but failed to take action and instead misled educators and authorities, among several allegations. “We strongly disagree with these allegations, which rely on cherry-picked quotes and misinformed opinions in an attempt to present a deliberately misleading picture,” Meta spokesperson Andy Stone said in a statement. CNBC

VC, PRIVATE INVESTMENT & ACQUISITIONS

Jolt Capital, the Paris-based leading European private equity firm dedicated to growth deep tech, announced the first closing of its new fund, Jolt Capital V, at 600 million euros (nearly $1 billion), with a hard cap of 1.1 billion euros. This first closing is supported by a broad base of sovereign wealth funds, some already familiar with Jolt Capital and others subscribing for the first time. Other categories of investors (insurance companies, European banks and pension funds, family offices) are also well represented. The Paris-based private equity firm, which has a second headquarters in Montreal, is aiming to raise up to €1.1 billion (almost $1.8 billion) for its fifth fund to back intellectual property-heavy scaleup companies. Jolt Capital

Kanata, Ont. based software-as-a-service security platform provider Augmentt raised $18 million in a Series A financing round. The round was led by Camber Partners, a New York City-based growth equity firm focused on investing in and scaling high-velocity business-to-business software companies. The additional capital will allow Augmentt to rapidly accelerate its product roadmap, expand go-to-market operations, and deepen its partnerships in response to strong demand from managed service providers (MSPs), third-party firms that provide information technology services and support to other companies and organizations. Camber Partners

Saint John, N.B- and Waterloo-based MedReddie, which helps to streamline hospital procurement, has raised $1.55 million in equity financing and secured $500,000 in grants, bringing its latest round of capital to $2 million. The equity round was led by MaRS Investment Accelerator Fund, with participation from the New Brunswick Innovation Foundation, Business Development Bank of Canada’s Thrive Lab, and strategic angel investors. The company said the new capital will support international expansion, beginning with Europe, and further development of its AI-driven procurement platform. The company’s AI agent generates sourcing documentation and aggregates regulatory, clinical and performance data into a single interface. MedReddie said this gives procurement teams a clearer view of options and helps them move more quickly on value-based purchasing decisions. Entrevestor

Furble, a new online marketplace, has launched everywhere in Canada except Quebec to help “pet parents “fill prescriptions for their furry companions online (or browse other food and wellness products) and get them delivered to their door. The company was founded earlier this year by CEO Lisa MacIntyre-Smith, chief strategy officer Aaron Eckler, and chief relationship officer Matt Friesen. After recommending a medication, a veterinarian can send the pet’s prescription to one of Furble’s licensed pharmacy partners, which can process and deliver the order directly to the pet parent’s door. Furble enables pet parents to stay at home, compare products, view transparent pricing and select fulfillment options. BetaKit

 A First Nation in Ontario is looking to create what it’s calling a “sovereign wealth fund” to bypass government and move major projects forward faster with Indigenous participation. The First Nations Sovereign Wealth Fund, proposed by Chippewas of the Thames First Nation in southwestern Ontario, seeks to make it easier for First Nations to buy into major projects in their territories, sidestepping government programming and giving First Nations more authority over their investments. Chief Joe Miskokomon said the fund would be a “critical step” forward in bolstering the economic capacity of First Nations. The Canadian Press

El Salvador-headquartered crypto company Tether bought just over one million shares in Toronto-founded video-streaming firm Rumble for about US$5.7 million, bringing its stake in the company to about 48.5 percent, according to a U.S. Securities and Exchange Commission filing. Tether, which issues the world’s largest stablecoin – a crypto asset pegged to the value of the U.S. dollar – invested US$775 million in Rumble last year. In September, Tether announced plans to use Rumble’s platform to distribute a new stablecoin that’s compliant with U.S. regulations. U.S. Securities and Exchange Commission

 Calgary-based Virtual Gurus sold its Virtual Assistant division to U.S.-based Zirtual, marking what is believed to be Canada’s first tech exit by an Indigenous woman founder. The deal, structured as an asset purchase, is part of Zirtual’s aggressive scale-up strategy to consolidate leading players in the virtual assistant market into a more integrated, AI-powered platform. Financial terms of the deal weren’t disclosed. Founded in 2016 by Bobbie Racette after being laid off from the oil and gas sector, Virtual Gurus began at Racette’s kitchen table. What started as an idea to match businesses with virtual assistants who were often overlooked in traditional hiring cycles became one of North America’s most recognized talent-as-a-service platforms. Following the acquisition, Elliot Schneier will assume the role of CEO of Zirtual, leading the company into its next phase of integration and growth. Schneier took the reins of Virtual Gurus from Racette earlier this year. Calgary.tech

Kitchener-Waterloo, Ont.-based FluidAI Medical, a health company that develops novel hardware, software and artificial intelligence solutions, announced an acquisition deal with engagement Emmetros Limited, which develops an engagement platform, SparxConnect, that helps health providers tailor their patient care. Financial terms of the deal weren’t disclosed. The acquisition enhances Stream Inara™, an AI-powered patient education and engagement platform within FluidAI’s product portfolio that extends surgical care beyond the hospital. This is FluidAI’s second acquisition deal after Medsix. FluidAI Medical

Eighty-eight percent of Canadian venture capital and private equity firms now have at least one woman on investment committees – up from just 63 percent in 2021, according to a report by BDC Capital.  Forty-five percent of general partners now have senior investment teams made up of at least half women (up from 38 percent), and 50 percent have at least half visible minorities (up from 40 percent). Visible minority representation on investment committees jumped to 76 percent, up from 55 percent in 2021. However, for junior team members in general partner organizations, visible minority representation is declining, which could impact the future pipeline of diverse leadership if the trend continues. BDC Capital

Foreign investment in Canada dropped to $18.2 billion in the third quarter of 2025 down from $21.9 billion in the previous quarter, and an 18-month low, according to Statistics Canada. It’s the least amount of money invested in the country since early 2024. Earnings reinvested in Canadian affiliates by their foreign parents (+$9.6 billion) and cross-border merger and acquisition transactions (+$5.4 billion) were the largest contributors to the activity in the third quarter. Foreign investors increased their holdings of Canadian securities by $80.3 billion in the third quarter, a significant increase following a total divestment of $22.4 billion in the first half of the year. Canada’s trade in goods and services deficit narrowed from $19.1 billion in the second quarter to reach $10.6 billion in the third quarter. Imports of commercial services increased 2.2 percent to $33.9 billion in the third quarter, led by charges for use of intellectual property (+three percent to $7.3 billion), and scientific and technical services (+7.3 percent to $3.0 billion). Statistics Canada

REPORTS & POLICIES

Most Canadian businesses are using generative artificial intelligence but few are seeing a return on their investments

A majority of Canadian business leaders say their organizations are using generative artificial intelligence, but few have integrated it fully across their operations and only a small fraction are seeing a return on their investments, according to a report by KPMG Canada.

In a survey of 753 business leaders across Canada, most (93 percent) said their organizations are using AI in some form – up from 61 percent last year.

However, only three in 10 (31 percent) have fully integrated generative AI solutions across their core operations and workflows.

Another 32 per cent have partially adopted generative AI by integrating it across some workflows and operations, while 20 percent are still experimenting or piloting projects.

“Only a small sliver of Canadian businesses are generating growth from their AI investments today, and that’s understandable – new technologies take time to be adopted and demonstrate identifiable return on investment,” Stephanie Terrill, Canadian managing partner of digital and transformation at KPMG Canada, said in a statement.

“However, Canada is facing near-term threats to its economic competitiveness and grappling with declining productivity and prosperity, so waiting years for AI investments to create value isn’t realistic in this environment – in fact, it’s downright risky,” she said.

“Canadian organizations need to accelerate AI implementation into core operations to start achieving near- to medium-term productivity gains if we hope to become more economically competitive as a country,” Terrill said.

Nearly half (46 percent) of respondents to KPMG Canada’s survey are focusing their AI investments on hiring new tech talent like developers, while four in 10 (41 percent) are focusing on purchasing generative AI tools and solutions and one-third (33 percent) on change management and adoption.

Despite growing adoption, only two percent of respondents said their organizations are seeing a return on their generative AI investments. Most (63 per cent) were large companies with at least $1 billion in annual revenue.

More than half (57 percent) described their return on investment as between five and 20 percent, while nearly one-third (31 percent) were unable to quantify it.

Three in 10 respondents expect their AI investments to start generating a return within the year, while six in 10 (61 percent) said between one to five years.

Many organizations are still in the experimentation phase and have not yet deployed AI at scale or into production, Terrill noted.

The survey’s key workforce highlights are:

• 35 percent strongly agree that their employees have the right skills to fully leverage the benefits of generative AI (48 per cent agree somewhat).
• 37 percent strongly agree their organization provides mandatory generative AI skills training for leaders and employees to increase their expertise (45 percent agree somewhat).
• 37 percent strongly agree their organization has considered how to restructure the work, workforce and organization to gain value from AI (51 percent agree somewhat).
• 34 percent strongly agree their organization plans to or is already redesigning or restructuring jobs, roles and activities to realize the value of generative AI (48 percent agree somewhat).
• 36 percent said their organization has a policy mandating employees to use AI in their role (39 per cent agree somewhat).

Some organizations lack consistent methods to track and report AI-driven outcomes, while others are using outdated or irrelevant methodology that doesn’t account for the full value AI brings. This is where businesses need to get innovative in their approach to capturing and measuring their return on investment (ROI) on AI, Terrill said.

“To realize the full value of AI, organizations need clear ROI frameworks that measure not just financial impact, but strategic and capacity gains. Paired with strong governance and accountability, that’s how businesses will turn AI ambition into measurable results,” she said.

Terrill recommended a holistic approach that combines hard financial metrics such as cost savings, revenue growth and operational efficiency with softer strategic metrics such as improved decision-making, improved employee experience, customer loyalty, and successful and sustained adoption to measure AI’s ROI. KPMG

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Canadian businesses are adopting AI at an unprecedented rate, with “significant” economic benefits

Canadian businesses are adopting artificial intelligence at an unprecedented rate – faster than the global uptake of the internet, according to a new report from Amazon Web Services (AWS).

Unlocking Canada's AI Potential, conducted by Strand Partners for AWS, found that about 650,000 Canadian businesses now use AI, including 160,000 new adopters in the past year. This represents 33 percent year-over-year growth, or one new adopter AI every three minutes.

The findings also show significant economic benefits: 89 percent of AI-using companies report revenue growth, averaging a 26 percent increase tied to AI-enabled improvements, and 73 percent report significant productivity gains.

Optimism is high, with 81 percent of leaders expecting AI to boost growth next year.

However, to unlock AI’s full potential, the report said Canada must tackle three critical issues:

• creating a pro-innovation environment that attracts global investment.
• closing the digital skills gap.
• accelerating adoption across sectors and business sizes through public sector leadership.

AI adoption is accelerating, but how organizations use it still varies widely, according to the report.

Most businesses (65 percent) remain focused on basic applications (workflow automation, content generation, and other early-stage uses) which deliver value but only incremental gains.

Fewer (20 percent) are integrating AI across multiple functions, and only 15 percent are using it to redesign operations, launch new products or build models tailored to their business.

Startups are moving much faster, with 31 percent leveraging AI for its most advanced uses. Free from legacy systems, startups embed AI into their business models from day one, are more likely to have a clear AI strategy, and are more confident AI will reshape their industries within five years.

“Canada is at a crossroads,” Eric Gales, managing director, AWS Canada, said in a statement.

“Startups are building with AI from day one, but many businesses are moving cautiously. If we allow that gap to become structural, we risk a future where only a subset of companies benefit from AI-driven growth and the rest fall further behind,” he said.

Despite rising interest, four barriers continue to slow AI adoption in Canada:

• Skills Gaps – The biggest hurdle is talent: 51 percent say skills shortages prevent them from adopting or expanding AI, and only 29 percent feel prepared. Companies expect AI literacy to be critical for 40 percent of jobs within three years.
• Rising Compliance Costs – Businesses estimate $36 of every $100 in tech spend goes to compliance (higher than many G7 peers), and three-quarters expect those costs to keep rising as AI regulation becomes a priority.
• Regulatory Uncertainty – Without clear AI-specific rules, uncertainty is slowing decisions. Fifty-six percent worry new regulation will hinder innovation, and 46 percent cite a lack of legal clarity for deploying AI.
• Perceived Costs – Nearly 49 percent cite upfront costs and 46 percent want clearer return on investment —despite 89 percent of adopters reporting revenue gains averaging 26 percent.

“Together, these barriers risk slowing Canada’s AI momentum unless businesses and policymakers work together to close skills gaps, reduce uncertainty and accelerate responsible adoption,” the report said.

[Editor’s note: It is curious that AWS’s survey found that 89 percent of AI adopters reporting revenue gains averaging 26 percent. In contrast, KPMG Canada’s survey found that more than half (57 percent) of AI adopters described their return on investment as only between five and 20 percent – significantly lower both in percentage of adopters and percentage of ROI. The difference suggest either different survey methods or a need to better measure and quantify AI’s actual return on investment.

One area where both surveys appear to agree is the need for talent to adopt AI. AWS’s survey said the biggest hurdle is talent: 51 percent say skills shortages prevent them from adopting or expanding AI, and only 29 percent feel prepared. KPMG Canada’s survey said only a little over one-third (35 percent) strongly agree that their employees have the right skills to fully leverage the benefits of generative AI (48 per cent agree somewhat)].

Canadian businesses say they are being strategic in how they adopt AI, prioritizing choice and flexibility. Four in five leaders view access to both Canadian and global AI providers as essential, and two-thirds prefer a hybrid model that blends domestic tools with those built or hosted internationally.

They want the freedom to choose the right tool for each task and adjust those choices as technology and business needs evolve.

Canada’s momentum is real but scaling it requires coordinated effort, according to the report. AWS is calling on policymakers to prioritize four key measures to unlock the Canada’s full AI potential:

• Strengthen AI and digital skills: More than half of Canadian businesses say skills shortages are limiting progress. Expanding access to flexible, job-aligned training is essential to help workers succeed and businesses grow.
• Turn research strength into commercialization: Canada excels in AI research but must better convert it into scale. Improving funding access, supporting high-growth firms, and helping innovators reach global markets will ensure Canadian technologies are built and scaled here.
• Create a predictable, pro-innovation environment: Businesses want clarity and confidence. Regulatory frameworks should support responsible adoption without adding friction that slows innovation or competitiveness, making Canada a more attractive destination for global investment.
• Lead through public sector adoption: 64 percent of businesses say they are more likely to adopt/expand their AI use when government leads, and 53 percent of startups say that public sector adoption is crucial to their ability to scale. Modernizing services with responsible AI builds trust, accelerates adoption and improves the services Canadians rely on.

“Canada has the foundation – leading research, talent, infrastructure, and entrepreneurship—to compete globally in AI. The opportunity now is to connect these strengths, close innovation gaps, and unlock the country’s full potential,” Gates said.

AWS said the company is committed to working with Canadian governments to build a competitive environment and support broad AI adoption. This includes investing approximately $24.8 billion in building and operating its Montreal and Calgary Infrastructure Regions by 2037 – supporting more than 9,300 full-time equivalent Canadian jobs annually and adding $43.02 billion to Canada’s GDP.

Since 2017, AWS said it has trained over 300,000 Canadians in sought-after cloud and AI skills.

To help researchers accelerate the speed of discoveries with AI, AWS and the University of Alberta launched the Artificial Intelligence Discovery Place. Programs like AWS Activate support with credits, funding and mentorship, helping startups build in Canada and scale globally. Amazon Web Services

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Federal government should hit the brakes on its zero emissions vehicle mandate, or align it with consumers preferences

The federal government should suspend its zero emissions vehicle (ZEV) mandate until the shape of Canada’s auto industry – and availability of ZEVs on the market – are made clearer by the outcome of negotiations between Canada and the U.S. regarding new U.S. tariffs, and between Canada and China, the world’s largest exporter of electric cars. according to a report by the C. D. Howe Institute.

If not implementing a pause in the mandate, Ottawa should revise the current trajectory for its mandated percentage of ZEV sales to align with consumer preferences and with the actual availability of vehicles, the report, by Brian Livingston, senior fellow at the C. D. Howe Institute.

Also, the proceeds from the sale of “excess credits” should be sent to the federal government rather than be kept by the selling company, the report said.

In addition, pure or non-plug-in hybrids (and not just plug-in hybrids) should be counted towards mandated targets.

Until September 5, 2025, when it was waived by Prime Minister Mark Carney, Canada’s federal Zero Emissions Vehicle mandate for 2026 required 20 percent of new light-vehicle sales to be ZEVs, equivalent to 380,000 units. 

 “With U.S. protectionist actions already straining Canada’s auto industry, and other emissions-reduction mechanisms still binding on the industry, a legitimate question is whether some form of mandate is even warranted,” Livingston’s report said.

Based on the volume of 270,000 ZEV sales expected for 2026, Canada would have been unlikely to achieve its mandated ZEV sales target for that year, which would have been 20 percent of projected light-vehicle sales, or 380,000 units, according to the report.

“The targets are similarly unattainable beyond 2026,” the report noted. “The point for 2026 and beyond is that the mandate on its own does not generate the increase in demand needed to close this gap.”

As a result of not meeting the target, automakers, under the mandate scheme, might have had to collectively spend a considerable sum of money in 2026 – an unknown amount to purchase “excess credits” (when a company sells more ZEVs than required) and over $200 million to create Charging Fund Credits for investing in charging station infrastructure.

Given these penalties, manufacturers in this scenario might have had to comply with the required percentage by restricting sales of non-ZEVs, the report said. Such regulatory constraints could have reduced vehicle supply by over 400,000 vehicles in 2026. 

In 2024, ZEVs accounted for about 14.5 percent of the 1.85 million light vehicles sold in Canada, but sales dropped to just eight percent of the total in the first eight months of 2025 following the expiry of federal and provincial purchase incentives. 

Many Canadians still have concerns about buying ZEVs, particularly battery-electric vehicles – as reflected in a Nanos Research poll commissioned by the C.D. Howe Institute. These include concerns about range, affordability due to upfront purchase cost, cold-weather performance, and the adequacy of charging infrastructure continue to limit demand.

“Ultimately, Canadian companies can sell only what consumers are prepared to buy. Public policy must take this reality into account if it is to achieve its intended outcomes,” Livingston’s report said.

“Taken together, these findings raise the question of why the federal government would continue to impose a mandate that is forecast to fall short of its goals, add costs to Canadian automakers, deprive Canadians of vehicles they need, and benefit foreign producers without Canadian manufacturing operations.”

At a time when U.S. tariffs on Canadian vehicle exports are already placing a heavy strain on the domestic industry, the ZEV mandate risks compounding the damage, the report said. C. D. Howe Institute

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Rapid growth in the federal public service has produced only “acceptable” service at best for small businesses

Despite rapid growth in the federal public service, small businesses are getting “acceptable” service at best and are often facing slow and inconsistent responses from key government departments, according to a report from Canadian Federation of Independent Business (CFIB).
“Over the past decade the public service has ballooned by 36 percent, far outpacing both population and private sector job growth, yet on average only 16 percent of SMEs rate the service as good,” said Michelle Auger, CFIB’s director of trade and marketplace competitiveness and lead author of the report. “We’re seeing government get bigger but there’s been no clear payoff.”  
CFIB analyzed small business interactions with the five most dealt with federal departments: Canada Revenue Agency (CRA), Canada Border Services Agency (CBSA), Statistics Canada, Employment and Social Development Canada (ESDC), and Immigration, Refugees and Citizenship Canada (IRCC). 
Seventy-three of SMEs express concern about the growing size of the federal government, citing persistent challenges in accessing timely, reliable and effective services.

Among those who interacted with CRA, only 18 percent felt they received “good” quality service, and just 15 percent rated the timeliness of responses as good.

The CRA, the largest federal department, grew by 43 percent between 2013 and 2024, adding nearly 18,000 new employees.

While part of this expansion was driven by the need to administer COVID-19 support programs, the CRA’s workforce was growing before and continued to rise even as pandemic-related programs wound down, with a jump in staffing observed between 2022 and 2024.

Small businesses were most unhappy with IRCC, while CBSA ranked second to last. Those who interacted with ESDC and Statistics Canada had more mixed reviews.

IRCC has seen one of the largest workforce expansions among federal departments, almost tripling its staff over the past decade. Since 2013, the department has added more than 8,000 new positions, an increase of 170 percent in their workforce.

Among the five federal departments reviewed, IRCC received the highest level of dissatisfaction from small business owners, with 40 percent rating the quality of service as “poor,” and 49 percent rating timeliness as “poor.”

In contrast, only 10 percent felt they received “good” service, and just nine percent rated the timeliness of response as “good.”

IRCC consistently falls short of its own “Client Support Centre” targets, leaving businesses and their foreign workers without timely updates on essential processes like work permit approvals, the report noted.

For small and medium-sized businesses, dependable and responsive client support is vital, and this is where IRCC must significantly improve, the report said.

ESDC has experienced one of the most significant workforce increases among federal departments, growing from just over 20,000 employees in 2013 to more than 39,000 in 2024. This represents a 95-percent increase in staff over the past decade.

“It is reasonable to question whether such massive growth is really needed and useful,” the report said.

While some SMEs find certain programs relatively straightforward, others struggle with unclear requirements, inconsistent service, and delays in receiving responses or approvals. For smaller businesses without dedicated human resources staff, ESDC’s complex systems and processes can be particularly burdensome.

Over the past decade, Statistics Canada has experienced growth, with its workforce expanding by approximately 59 percent. This increase represents the addition of over 2,600 new positions over the last decade.

Small and medium-sized businesses typically engage with Statistics Canada through participation in mandatory business surveys, which seeks to collect economic, financial, or operational data. While business owners understand the value of data collection, many find the process burdensome and time-consuming.

Like many other federal departments, the CBSA has steadily grown its workforce over the years, adding more than 3,000 employees, which represents a 21 percent overall increase since 2013.

Small business owners reported the lack of accessible information, rigid rules and processes, slow response times and technical issues, as major challenges when interacting with government departments.
For the federal government, the CFIB recommended:

• Committing to fiscal prudence to limit the growth of the bureaucracy. Take a strategic approach to workforce reduction.
• Publishing transparent and ambitious service standards across all departments.
• Implementing hiring limits based on population or GDP.
• Speeding up regulatory reforms, such as adopting a “two-for-one” rule that applies to all regulations, legislation and policies.
• Leveraging technology to improve customer service.

“Small business owners are not measuring government’s success by how many people they’re hiring. It’s about how quickly they’re picking up the phone, how consistently they’re resolving issues and how clearly they’re sharing information. Too many departments are not delivering the results expected for the price we pay,” said Jasmin Guenette, CFIB’s vice-president of national affairs.

“Ottawa needs to reduce the size and costs of bureaucracy and focus on improving service and response times. Small businesses deserve better, and they expect the public sector to do better,” CFIB

THE GRAPEVINE – News about people, institutions and communities

The recipients of the Social Sciences and Humanities Research Council’s (SSHRC) 2025 Impact Awards were announced. These awards are SSHRC’s highest honours, recognizing outstanding Canadian researchers and their achievements, which includes research training, knowledge mobilization and outreach activities funded partially or entirely by SSHRC. The recipients are:

• Myriam Denov, from McGill University, received the Gold Medal, SSHRC’s highest research honour, for her unparalleled research on the effects of war on children. Through her work, she is advancing our understanding of gender, violence, trauma, mental health and the intergenerational impacts war has on families.
• Joshua Steckley, from Carleton University, received the Talent Award for his research on environmental politics and rural development. His work explores the complex relationship between biotechnology and the labour market, exposing the ethical tensions in industries aiming to profit from engineering new life.
• Kamari Maxine Clarke, from the University of Toronto, received the Insight Award, for her groundbreaking ethnographic work in Africa. Her research showcases the strengths and challenges of using Big Data and digital tools in human rights law and advocacy.
• Tara McGee, from the University of Alberta, and Amy Cardinal Christianson, from the Indigenous Leadership Initiative, received the Connection Award. Together they co-lead the First Nations Wildfire Evacuation Partnership, producing accessible research and recommendations on wildfire evacuations as well as mitigation for communities and agencies.
• Jason Edward Lewis, from Concordia University, received the Partnership Award for his leadership as primary investigator and director of the Initiative for Indigenous Futures, a partnership between scholars, creators, technologists, and policymakers who are working to envision Indigenous futures and guide societal progress. SSHRC

The Canadian Institutes of Health Research (CIHR), announced the appointment of Dr. Mary Jung as scientific director of the CIHR Institute of Nutrition, Metabolism and Diabetes (CIHR-INMD) for a term of four years, starting January 1, 2026. During Jung’s term, CIHR-INMD will be located at the University of British Columbia Okanagan (UBC Okanagan). Jung is one of Canada’s leading experts in the development and evaluation of evidence-based interventions to promote healthy behaviours and prevent chronic health conditions. She is a professor in the School of Health and Exercise Sciences at the UBC Okanagan and director of UBC’s Centre for Health Behaviour Change and the Diabetes Prevention Research Group. With funding from CIHR, Dr. Jung has studied the clinical- and cost-effectiveness, implementation, and sustainability of Small Steps for Big Changes, a diabetes prevention program developed and tested in her laboratory. CIHR

CQDM presented the 2025 RSRI Innovation Award at the Association for the Development of Research and Innovation of Quebec Innovation Awards Gala to Philippe Joubert, Yohan Bossé, BioMark Diagnostic Solutions, and their valued collaborators. They were recognized for a collaborative project that is transforming lung cancer screening in Quebec. Supported by CQDM and Quebec’s Ministry of Economy, Innovation and Energy, this $4.42-million project is the result of a collaboration between Institut universitaire de cardiologie et de pneumologie de Québec (IUCPQ) – Université Laval (Joubert, Bossé and their collaborators), BioMark Diagnostic Solutions, the IUCPQ Foundation, AstraZeneca, and Pfizer. The project has achieved a simpler, faster, more affordable and less invasive lung cancer screening test, thanks to a metabolomics-based approach. The project has stimulated the growth of BioMark, which secured an additional $4.85 million in investments, and enabled the research team to obtain $1.2 million in grants, while fostering strategic synergies between the public and private sectors. CQDM

Bank of Montreal  hired former Alberta Investment Management Corp. (AIMCo) chief executive officer Evan Siddall as vice-chair of the bank’s capital markets division, according to three sources. The Alberta government dismissed Siddall and the AIMCo board last year, citing the need for a clean slate owing to rising costs at the public sector pension manager. As a vice-chair at BMO, Siddall will work with various teams in an advisory capacity with the bank’s most senior clients, according to one of the sources. Prior to AIMCo, Siddell was the CEO of the Canada Mortgage and Housing Corp. He has also worked in investment banking positions at Goldman Sachs, Lazard and BMO, as well as in advisory roles with the Bank of Canada and as a senior executive at Irving Oil Ltd. The Globe and Mail

Guillame Mercier, a partner in BDC Capital’s Industrial Innovation Fund, announced his departure. In a LinkedIn post,  Montreal-based Mercier called his time at BDC “rewarding” and said he was sad to leave “close friends” behind. He also expressed appreciation for business creators. Mercier said he was leaving to “pursue fresh opportunities” and a “new energy” in his career, but he didn’t indicate where he was going next. Mercier joined BDC in the partner role in 2020. Since then, he has also served in senior vice-president roles for impact and strategic priorities, as well as advisory services and business strategy. Guillaume Mercier LinkedIn post

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Microneedle patch technology can detect food spoilage, then kill contaminants

Researchers at McMaster University have developed microneedle patches that can be adhered to food packaging, such as raw meat or ready-to-eat meals, said researcher Akansha Prasad.

The patches can indicate when bacteria are present and deliver bacteriophages to kill them.

“In a country that wastes nearly half of the food it produces and in a time of growing food insecurity, it’s critical we innovate in this industry,” Prasad says.

The PhD candidate in biomedical engineering is working with professors Tohid Didar, Zeinab Hosseinidoust and Carlos Filipe to not only develop the technology, but to leverage their entrepreneurship experience to address commercial requirements in an industry with strict standards.

This work was also co-authored by Shadman Khan, a recent PhD graduate from the Didar Lab. Two papers – one in Advanced Science and one in Science Advances – by the McMaster team are advancing understanding of this novel application, putting particular attention on disrupting consumer-level waste.

Creating a gel-cast microneedle patch in their lab, the McMaster team found a non-destructive method to assess freshness, especially in sealed products like packaged meat.

The microneedles are rigid and shelf-stable in their dry form, similar in strength to frozen needles. This allows them to pierce food packaging without causing damage. Once inside, they rehydrate upon contact with the moisture-rich tissue of the food, transforming into a soft hydrogel that begins to monitor spoilage.

As food degrades, microbial growth and toxin accumulation cause pH levels to shift. So the McMaster team turned to a “secret ingredient” – red cabbage anthocyanin, a natural pH indicator.

As pH shifts, the patch turns from purple to blue, indicating spoilage. The technology lets consumers know in real time whether the product they’ve purchased or plan to purchase is fresh. The researchers were able to load the microneedle patches with bacteriophages to deliver antibacterial agents directly into food, especially moist, high-risk items like raw beef and ready-to-eat chicken, without affecting taste or texture.

Some tests in Hosseinidoust’s lab showed that E Coli and salmonella were reduced to food industry-safe levels using phages via microneedle patch. McMaster University

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