The Short Report: February 5th, 2025

GOVERNMENT FUNDING 

Ottawa delays increase in capital gains tax inclusion rate but Council of Canadian Innovators wants it scrapped 

Dominic LeBlanc, federal minister of Finance and Intergovernmental Affairs, announced that Ottawa is deferring – from June 25, 2024 to January 1, 2026 – the date on which the capital gains inclusion rate would increase from one-half to two-thirds on capital gains realized annually above $250,000 by individuals and on all capital gains realized by corporations and most types of trusts.

The capital gains inclusion rate represents the portion of capital gains that is taxable.

To ensure most middle-class Canadians do not pay more tax once the capital gains inclusion rate is increased, the government said it will maintain or enhance existing capital gains exemptions while creating a new investment incentive.

The capital gains exemptions being maintained and created include:

• Maintaining the Principal Residence Exemption to ensure Canadians do not pay capital gains taxes when selling their home. Any amount they make when they sell their home will remain tax-free.
• A new $250,000 annual threshold for Canadians, effective January 1, 2026, to ensure individuals earning modest capital gains continue to benefit from the current one-half inclusion rate. Capital gains, including on the sale of a secondary property, such as a cottage, will be eligible for the $250,000 annual threshold, meaning a couple selling a cottage with a $500,000 capital gain would not pay more tax.
• Increasing the Lifetime Capital Gains Exemption to $1.25 million, effective June 25, 2024, from the current amount of $1,016,836 on the sale of small business shares and farming and fishing property. With this increase, Canadians with eligible capital gains below $2.25 million would pay less tax and be better off, even after the inclusion rate increases on January 1, 2026, the government said.
• A new Canadian Entrepreneurs’ Incentive to encourage entrepreneurship by reducing the inclusion rate to one-third on a lifetime maximum of $2 million in eligible capital gains. This incentive would take effect starting in the 2025 tax year, and the maximum would increase by $400,000 each year, reaching $2 million in 2029. Combined with the new $1.25 million lifetime capital gains exemption, when this incentive is fully rolled out, entrepreneurs would pay less tax and be better off on capital gains of up to $6.25 million, Ottawa said.

The proposed implementation date for the increase in the Lifetime Capital Gains Exemption and the introduction of the Canadian Entrepreneurs’ Incentive would not change.

The government said it will introduce legislation effecting the increase in the capital gains inclusion rate, the increase in the Lifetime Capital Gains Exemption and the introduction of the Canadian Entrepreneurs’ Incentive “in due course.”

However, opposition parties have vowed to bring down the Liberal government this spring on a non-confidence vote.

Conservative Party leader Pierre Poilievre, who has called the increase to the capital gains inclusion rate “outright insanity,” has promised to eliminate the increase if his party wins this year’s federal election. 

Liberal Party leadership contenders, including Mark Carney, Chrystia Freeland and Karina Gould, all have indicated they would repeal the increase to the capital gains tax inclusion rate.

Benjamin Bergen, president of the Council of Canadian Innovators (CCI), said the federal government hasn’t yet committed to reversing course. “They are simply delaying a tax increase that will have serious consequences for investment, talent attraction and business growth in Canada.”

“The reality is that the government is leaving entrepreneurs and investors in limbo by still refusing to admit they were wrong,” he said in a statement.

“This policy uncertainty continues to erode investor confidence and sends mixed signals about Canada’s economic strategy at a time when we need clarity and stability,” Bergen said. “Providing real certainty to Canadians would be to admit once and for all that this was a mistake and move on.” Finance Canada

Agriculture and Agri-Food Canada (AAFC) announced the expansion of the On-Farm Climate Action Fund (OFCAF), which will provide an additional $300 million to 13 initial recipients to help farmers become more climate resilient over the next three years. The 13 recipients are: B.C. Investment Agriculture Foundation, Canadian Forage and Grassland Association, ECOCERT Canada, Manitoba Association of Watersheds, Manitoba Métis Federation, Newfoundland and Labrador Federation of Agriculture, New Brunswick Soil and Crop Improvement Association, Ontario Soil and Crop Improvement Association, Perennia Food and Agriculture Inc., Prince Edward Island Federation of Agriculture, Results Driven Agriculture Research, Saskatchewan Association of Watersheds and L'Union des producteurs agricoles. For additional project details, visit the OFCAF page. Direct support to farmers falls under these target areas:

• Cover cropping: activities such as fall- or spring-planted cover crops (intercropping) and full-season annual or perennial cover crops in a rotation. Planting cover crops, like clover and alfalfa, covers the soil rather than being harvested, in turn adding nutrients that build organic matter, increase water access and reduce soil erosion.
• Nitrogen management: activities like optimizing nitrogen use by increasing legumes in rotations and using manure and other fertilizer substitutes can provide lasting benefits to soil, air and water quality.
• Rotational grazing: practices include new fencing and watering systems and activities to implement low-methane pastures. Rotational grazing is the practice of containing and moving livestock through pasture to allow forage plants to recover, deepen their root systems and improve soil health. (AAFC) 

The Pacific Development Agency of Canada (PacifiCan) announced over $17 million for 10 organizations to help businesses in key sectors, such as life sciences, clean technology and construction, scale up their operations. Launched in October 2023, PacifiCan’s Business Acceleration Pilot (BizAP) responds directly to the unique needs of businesses across the province. The funded projects will help small and medium-sized businesses to grow by enhancing access to investment capital, customers and commercial networks in B.C., across Canada and in international markets. For example, Life Sciences BC, which supports and represents B.C.’s life sciences business community, is receiving over $1.1 million to deliver the Global Business Development Program and the Life Sciences Showcase. These initiatives will equip businesses with the skills and knowledge to attract private capital, build global networks and create an opportunity to showcase their companies to investors. Also receiving BizAP funding are:

• Accelerate Okanagan
• Circle Innovation Solutions
• Discovery Foundation
• Foresight Canada
• Hubspace
• Light House Sustainability Society
• Simon Fraser University
• University of British Columbia
• Victoria Innovation, Advance Technology and Entrepreneurship Council. PacifiCan

Natural Resources Canada (NRCan) invested nearly $13.4 million to improve made-in-Alberta carbon capture technologies, making them more affordable, efficient at reducing emissions and easier to use across industrial sectors. This investment also will result in better tools and data to assess these technologies and explore new ways to remove carbon dioxide from the atmosphere. Funding recipients are:  

• Ionada Canada: $4.7 million to demonstrate cost-effective carbon capture and sequestration.
• University of Calgary: $4.3 million to support three carbon capture, utilization and storage research projects.
• InnoTech Alberta Inc.: $2.5 million to study enhancements to amine capture systems.
• University of Alberta: $1.89 million to support two carbon capture, utilization and storage research projects. NRCan 

The Atlantic Canada Opportunities Agency (ACOA) announced investments totaling more than $3.55 million for 2024-25 through the Community Futures Program for 13 Community Business Development Corporations (CBDCs) in Nova Scotia and the Nova Scotia Association of CBDCs. This funding will enable the CBDCs to offer essential financial assistance, specialized training, expert guidance and customized local initiatives to the rural businesses, organizations and communities they support. The investment is part of the $12.6 million allocated by the Government of Canada, through ACOA, to support the 41 CBDCs in Atlantic Canada under the Community Futures Program. ACOA

The Federal Economic Agency for Northern Ontario (FedNor) invested $3.25 million to help Wabi Iron & Steel Corp. in New Liskeard, Ont. innovate, grow, increase sales and exports, and create jobs in northern Ontario. Provided through FedNor’s Regional Economic Growth Through Innovation Fund, this investment will be used to upgrade and expand Wabi’s foundry, the only facility of its kind in northern Ontario. The foundry expansion was identified in Wabi’s strategic plan as a key priority to support the success and sustainability of the company for the next 100 years. The investment will allow Wabi to purchase specialized energy-efficient equipment, produce larger products, and increase production and market share, while tripling its revenue by 2027. FedNor

Natural Resources Canada (NRCan) announced over $2.7 million for five projects in northern Ontario under NRCan’s Climate Change Adaptation Program (CCAP). These projects aim to support professionals, decision-makers and First Nation communities in northern Ontario and across Canada to advance the implementation of climate change adaptation plans and actions through the development and delivery of tools, training and resources. One of the projects will also identify lessons learned from previously implemented adaptation actions. The funded  recipients and projects are:

• Climate Risk Institute (Sudbury), $1.3 million for CanAdapt: Advancing a Climate-Ready Workforce Through Courses and Networks.

• Climate Risk Institute, $442,851 to develop recommendations for national professional associations to integrate climate change adaptation competencies into the profiles and responsibilities of specific professions.
• Climate Risk Institute, $259,045 for Analysis and Reporting on Lessons Learned From Adaptation Implementation.
• Laurentian University of Sudbury, $546,195 for Partnership for Indigenous Climate Change Adaptation GeoHub and Microcredential Capacity Building Tools.
• Canadian Institute of Forestry (Mattawa), $190,687 for Development of a National Climate Adaptation and Resilience Professional Development Program for Forest Professionals. NRCan
  
  

The Canada Space Agency (CSA) awarded a contract valued at $1.6 million to Toronto-based SFL Missions Inc. to develop concept designs for:

• the Canadian satellite for the HAWC (High-altitude Aerosols, Water vapour and Clouds) mission.
• the Aerosol Limb Imager, an instrument flying on the Canadian satellite to measure mid- to high-altitude aerosol particles. 

Canada is taking the lead in the HAWC mission as part of its contribution to the NASA-led Atmosphere Observing System (AOS) Earth observation satellite constellation. Canada is also providing the Spatial Heterodyne Observations of Water instrument for the HAWCSat satellite. The country is contributing another instrument, called TICFIRE (Thin Ice Clouds and Far InfraRed Emissions), on a NASA AOS satellite This instrument will observe water vapour and ice cloud properties and also measure the energy that Earth’s atmosphere radiates to space, providing better information on how the atmosphere cools. HAWCSat is currently scheduled to launch in 2031. CSA 

Prairies Economic Development Canada (PrairiesCan) announced federal funding of $1 million for the Regina, Sask.-based Petroleum Technology Research Centre (PTRC) to develop an Energy Innovation Hub. This funding will allow the PTRC to enhance physical research, testing, lab capabilities and training to support the evaluation and deployment of sustainable technologies in the energy sector. The Energy Innovation Hub (EIH) will help a wide range of organizations in sectors that include energy production, business, mining, academia and policy development. The EIH seeks to encourage collaborative energy research between universities, industry and governments and plays a key role in supporting energy transformation initiatives to help Canada’s energy sector move toward a sustainable, more efficient future. The EIH’s services will include research and development, testing new and improved technologies, evaluating the potential of sustainable energy projects, geological core analyses, and computed tomography scanning, education and training opportunities. PrairiesCan

The Government of Alberta announced a new Crown corporation to oversee the province’s “rainy day” Alberta Heritage Fund. The Heritage Fund Opportunities Corp. is to direct policy for the Heritage Fund which, for the most part, will still be managed by the Alberta Investment Management Corp. The new Crown corporation is also mandated to independently manage the investment of new deposits. Alberta Premier Danielle Smith said she aims to grow the fund to at least $250 billion by 2050, at which point the province can use a portion of the annual interest accrued to offset any decreases in resource royalties, invest in key provincial infrastructure, and grow and protect the Alberta tax advantage. As of September 2024, the Heritage Fund was worth $24.3 billion. With a $2-billion commitment from Alberta’s Budget 2024, the fund is projected to increase to more than $26 billion by the end of the 2024-25 fiscal year. If all of the Heritage Fund’s investment income had been reinvested since the fund’s inception in 1976 instead of being transferred to the general revenue fund, the Heritage Fund’s value would be upwards of $250 billion today, generating about $20 billion annually. Govt. of Alberta

Shared Services Canada, the federal IT agency, identified 329 conflicts of interest among its employees last year, according to a cabinet briefing note. Blacklock's Reporter said the note sheds light on concerns about public servants moonlighting as contractors, a practice described as “fairly common” in federal departments. “Employees are to report all outside employment, activities, assets and interests,” stated the September 26, 2024 note. Of the reported conflicts, 44 percent involved “outside activities,” though no further details were provided. The Values and Ethics Code for the Public Sector requires managers to take “all possible steps to prevent and resolve any real, apparent, or potential conflicts of interest,” the briefing note said. One past case involved a full-time Shared Services analyst who served as the director of a Vancouver-based green technology company that successfully obtained a $10,735 federal grant. The House of Commons public accounts committee narrowly voted 6 to 5 last March to request a ban on federal employees engaging in insider contracting. The motion followed testimony from David Yeo, an IT specialist at the Department of National Defence earning $98,000 annually, who also served as CEO of Dalian Enterprises Inc., a defence contractor that received $91 million in military contracts. Both Yeo and his company were later suspended. Then-Comptroller General Roch Huppé told the public accounts committee that no government-wide estimate exists of how many federal employees engage in outside contracting. Western Standard

RESEARCH, TECH NEWS & COLLABORATION  

Six Canadian universities made it into the Top 50 in one or more subject areas in the Times Higher Education World University Rankings by subject for 2025, which evaluates the performance of universities in 11 subject areas. The rankings used data from the 2022 academic year to rank subjects, with evaluations based on the number of students, student-to-staff ratio, percentage of international students, and female-to-male student ratios. The six Canadian universities in the top 50 were: McGill University, McMaster University, Université de Montréal, University of British Columbia (UBC), University of Toronto, and University of Waterloo. The University of Toronto ranked No. 21 globally – the highest-ranked Canadian university. UBC ranked No. 41 globally and McGill No. 45. McGill ranked among the top 90 universities in all 11 subject areas, placing six subjects in the top 50. Times Higher Education 

The Government of Canada, in partnership with the Government of Nova Scotia, announced the coming into force of legislation to enable the development of offshore renewable energy for the first time in Canada. This follows the passage of Bill C-49 and Nova Scotia’s mirror legislation, Bill 471, which amended the federal and provincial versions of the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act. Ottawa said this legislation will unlock the enormous potential of offshore renewable energy, increase Nova Scotia’s prosperity, create thousands of jobs, attract billions in investment, help protect the environment and strengthen the economy. While Nova Scotia has already adopted mirror legislation, Newfoundland and Labrador is expected to advance consideration of its legislation this year, which is required to bring its portion of Bill C-49 into force. Natural Resources Canada 

François-Philippe Champagne, minister of Innovation, Science and Industry, said he will review the country’s business relationship with Amazon following the company’s decision to pull out of Quebec. The e-commerce retail giant announced in January it would close seven operation sites and cut roughly 1,900 jobs in Quebec, including 250 recently unionized warehouse jobs, over the next two months. In an open letter posted to X and addressed to Amazon president and CEO Andy Jassy, Champagne urged the company to reconsider its decision immediately. Amazon’s decision is inconsistent with its expressed interest in being a leader and strategic partner within Canada’s industrial economy, Champagne said. “The decision [to pull out of Quebec] is not one that will instill confidence, and it raises questions about your commitment to Canada and your Canadian partners,” he said. “You will undoubtedly understand that such action calls for a review of the business relationship that exists between Amazon and the Government of Canada.” Amazon has denied that the warehouse closings were related to the unionization of more than 200 employees last May at one of its facilities in Laval, Quebec. That facility became the first Amazon warehouse to successfully unionize in Canada. François-Philippe Champagne on X

The Government of Saskatchewan’s Innovation Saskatchewan has signed a memorandum of understanding with the German Academic Exchange Service (DAAD) to enhance academic partnerships and exchanges in areas such as life sciences, climate change and clean energy. Germany is a global leader in research and innovation and the world's fifth-largest submitter of international patents. The DAAD is one of the world's largest and most important funding organizations for the international exchange of researchers and students. Germany also is a significant trade and investment partner for the province and home to one of Saskatchewan's nine international offices. As a result of the MOU with DAAD, Innovation Saskatchewan and the University of Saskatchewan also signed an agreement for a three-year, $60,000-pilot project to support and operationalize future collaborations between Germany and the university, including for on-campus research institutions like the Vaccine and Infectious Disease Organization and the Canadian Light Source. Funding will be allocated to initiatives focused on research collaboration in areas such as health, synchrotron sciences, quantum computing and artificial intelligence, food security, nuclear and alternative energy, agriculture and the environment. Govt. of Saskatchewan

The Government of Alberta rescinded its moratorium on new coal exploration and development in the Eastern Slopes of the Rocky Mountains. In a letter to the Alberta Energy Regulator posted to its website, Brian Jean, the province’s energy minister, said lifting a 2022 moratorium will “reduce regulatory confusion” around coal mining. Jean also directed the regulator to give “due consideration” to the government’s new policy intention, first announced in December. Under that plan, the government said it will require companies to show how they can prevent toxic selenium from leaching into watersheds from mining operations. However, that policy, led by industry consultations, has yet to be fully developed or implemented. The end of the moratorium comes as five coal companies are taking the Alberta government to court, seeking more than a combined $15 billion in lost revenues and sunk costs they say they’re owed as a result of the government’s back-and-forth policy manoeuvres. The 1976 coal policy remains in effect, restricting all exploration and development on Category 1 lands, which include parks, wilderness areas and wildlife sanctuaries. Nigel Bankes, professor emeritus of law at the University of Calgary, said other than those lands, “it’s open season” for coal development in areas currently leased. The Canadian Parks and Wilderness Society’s Alberta chapter said the change means new coal mine exploration and development on more than 1,880 square kilometres of leases could begin as early as this spring. The Canadian Press

Transport Canada announced the successful construction of a new prototype building at the drones and robotics test field on the grounds of the former Killaloe Airport near Killaloe, Ont. The small, 380-square-foot building, using pre-made, lightweight connectable panels designed and manufactured by B.C.-based FLEX Structure, was built in only eight days – as seen in a timelapse video. Traditional construction of infrastructure can be costly and time-consuming, particularly in remote areas. A building of comparable size to the prototype test building could take several weeks or months to build using traditional construction methods. Transport Canada is researching rapid construction technology as a possible way to quickly build structures. Potential use of the technology could include the construction of utility and storage buildings, operation centres, outbuildings and emergency response structures that can be torn down after use, flat-packed and shipped elsewhere. Invest Ottawa, which is Transport Canada’s testing partner on the project, will examine the building’s durability and suitability as a multi-purpose structure. Funding for this project was made possible through Innovative Solutions Canada, a program from Innovation, Science and Economic Development Canada. Transport Canada 

The Global Institute for Food Security (GIFS) at the University of Saskatchewan is now the first Revio PacBio Certified Services Provider in Canada. To obtain this status, GIFS underwent a rigorous evaluation process through which it demonstrated its capabilities and expertise to conduct complex genome assemblies, transcriptomics, epigenetics and more. The designation recognizes GIFS as a trusted source for high-quality genetic sequencing and data generation utilizing PacBio’s sequencing technology. The Omics and Precision Analytics Laboratory in GIFS provides genomics, transcriptomics and bioinformatics services to researchers. In 2023, GIFS became one of the first service providers in Canada to offer automated library preparation and genomic analyses using Revio, PacBio’s latest long-read sequencing technology. The resulting HiFi data is supporting a wide range of large-scale genomic projects that are advancing innovation in the agri-food sector and beyond. University of Saskatchewan

Saskatoon-based DEEP Earth Energy Production Corp. announced a strategic collaboration with Houston, Texas-based global energy technology company Schlumberger Limited (SLB) to develop Canada’s first next-generation geothermal power project, located in southeast Saskatchewan. SLB will provide engineering design and integrated well construction services for the early phases of the geothermal project in Torquay, Sask., including the development of two production and two injection wells in phase one, and up to 18 wells in phase two. The feasibility phase is now complete, and the project is poised to produce up to approximately 30 megawatts of emissions-free, baseload power upon completion of its initial two phases. Despite Canada’s vast geothermal potential, the resource has remained largely untapped due to economic and technical challenges tied to conventional extraction methods. DEEP’s geothermal project will leverage proven approaches from conventional field development in oil and gas to deploy advanced horizontal drilling techniques to access some of the most productive zones in the formation, as well as production-enhancement technologies to optimize the output of geothermal energy generation – a first-of-its-kind application for geothermal development in Canada. “With this approach, we hope to establish a blueprint for the development of additional commercial geothermal projects in Canada,” Kirsten Marcia, president and CEO of DEEP, said in a statement. The first five-megawatt phase of the project is planned for full commissioning by 2026. DEEP Earth Energy Production

Shell Canada Ltd. is exiting Alberta’s oil sands in a deal with oil sands producer Canadian Natural Resources Ltd. that will see Shell increase its stake in the Scotford upgrader and Quest carbon capture and storage (CCS) facility. Shell is swapping its remaining 10-percent stake in the Albian oil sands mines – part of the Athabasca Oil Sands Project – in exchange for a 10-percent interest in the Scotford upgrader and Quest CCS facility. The deal, which underscores Shell’s strategy of moving toward assets with lower greenhouse gas emissions, will boost the company’s interest in the upgrader and carbon capture facility to 20 percent. Shell is the operator of the Scotford upgrader and Quest CCS facility, located next to the Shell-owned Scotford refinery and chemicals plants near Edmonton. The Quest project, launched in 2015, has captured and sequestered 7.7 million tonnes of carbon dioxide as of the end of 2022. The Canadian Press

Some natural gas producers are still hoping to lure data centre developers to Western Canada by offering alternatives to relying on congested power grids. Calgary-based Pine Cliff Energy Ltd. in January struck a 25-year deal with an unnamed data centre developer to supply between 3.2 and 4.8 million cubic feet per day of natural gas, which represents around five percent of its production. Pine Cliff said its partner plans to construct and operate a sub-100-megawatt data centre adjacent to one of Pine Cliff’s gas-gathering facilities near Drumheller, Alta., and use large natural gas engines to power its off-grid operations. Financial Post

Chevron, the second-largest oil and gas company in the U.S., plans to build natural gas-fueled power plants that will feed energy directly to data centres. Chevron is working with Engine No. 1, a San Francisco-based investment firm. The companies said they have ordered critical equipment, scouted potential sites and can have their first data centre online within three years. In December, Exxon said that it, too, wanted to get into the business of selling electricity to data centres. Constellation, which has a fleet of nuclear power plants, agreed in January to buy rival Calpine, which owns many natural gas plants, for $16.4 billion. NextEra Energy also said it was planning to build more natural gas-fueled power plants. A recent study by the Lawrence Berkeley National Laboratory estimated that data centres are projected to use up to 12 percent of U.S. electricity in 2028, up from 4.4 percent in 2023. The New York Times

RBC has withdrawn from a global alliance of financial institutions formed to direct capital to meeting climate targets, making it the last of Canada’s big banks to quit the group. With the move, RBC joins numerous Canadian and U.S. banks that have bailed on the Net-Zero Banking Alliance (NZBA) in the past two months, fearing political backlash, legal action and loss of business in the U.S. after President Donald Trump’s return to the White House. As they have cut ties with the NZBA, most of the institutions have said they intend to stick with their own efforts to meet decarbonization goals, even as federal and state Republican politicians pledge to stamp out corporate environmental, social and governance programs. The NZBA still counts about 135 banks from 44 countries as members, representing a total of US$57 trillion in assets. However, NZBA’s North American ranks are vastly depleted, with just five institutions remaining, including two B.C. credit unions. The Globe and Mail

The University of Waterloo (UWaterloo) received a total of $1.2 million from Natural Resources Canada’s (NRCan) Climate Change Adaptation Program for two projects aimed at strengthening climate change adaptation capacity in Canada and abroad. The first project, led by the Waterloo Climate Institute, will accelerate the integration of climate change adaptation knowledge into Canadian professional degree programs. Five UWaterloo departments are collaborating on this project. The second project, also led by the Waterloo Climate Initiative, will map, create and test disaster-risk reduction tools with Canadian businesses. McMaster University was awarded $721,000 from NRCan’s Climate Change Adaptation Program to produce resources that will help practitioners in Canada’s electricity sector incorporate climate change data into their work. UWaterloo

Phoenix, Arizona-headquartered Nikola Motors, once seen as a promising player in the electric truck market, is now facing the possibility of bankruptcy. The company is reportedly in urgent need of funding, with nearly 1,000 jobs at risk. According to Bloomberg, Nikola is closer to insolvency than ever before. In 2021, Nikola’s founder and former CEO, Trevor Milton, was convicted of fraud and sentenced to three years in prison. Despite this, Nikola managed to survive, continuing to develop and produce hydrogen and electric trucks. Now, with its financial reserves nearly depleted, the company is exploring options to secure capital, including selling off parts of the business. Nikola's stock has seen a dramatic decline, losing 95 percent of its value over the past year. The company's leadership previously indicated that it had enough resources to continue operations until the first quarter of 2025. Fisker Inc., another American EV startup, also faced financial difficulties and recently saw its stock trading suspended ahead of bankruptcy negotiations. A leasing company has since purchased Fisker’s remaining North American inventory, but concerns remain about the availability of software updates and service for existing customers. MSN

Sweden-based Northvolt asked more than 100 shareholders at a meeting in January to provide $1.29 billion over the next two years to help restore the bankrupt battery maker's business, according to Reuters. Investissement Québec has invested $510 million in the company, while the Caisse de dépôt et placement du Québec has invested about $200 million. Other Northvolt shareholders include Goldman Sachs, BMW, Volkswagen and Scania. Northvolt filed for Chapter 11 U.S. bankruptcy last November after talks for fresh funding with investors collapsed amid production and other problems. Former CEO and co-founder Peter Carlsson told journalists in November that the company would need between $1 billion and $1.2 billion in the long term but did not give a specific timeframe. The request for funding to last until 2027 comes as Northvolt intensifies a search for investment before its cash reserve runs out, which is expected sometime this month. In September, Northvolt reaffirmed its commitment to large-scale battery-cell production at its planned $7-billion gigafactory near Montreal. Reuters

The Invisible Institute, a Chicago-based nonprofit coalition of journalistic, legal and human rights organizations, has developed the National Police Index (NPI). The database, using officer employment history records, tracks the career history of police officers across 26 states, including California, Florida, Illinois and Texas. The tool provides data going as far back as the 1960s, detailing information on active officers such as those with multiple employers or prior terminations, although the accuracy depends on local police department reporting. While the NPI does not contain reports of misconduct, it does track officers over their careers and shows the reported reasons for their separation from an agency. The Invisible Institute said the tool aims to improve transparency in law enforcement by helping policymakers, journalists and the public better understand officer mobility and its potential impact on accountability and trust. Source New Mexico

VC, PRIVATE INVESTMENT & ACQUISITIONS

New York-based Blackstone Inc., the world’s largest alternative asset manager, secured US$630 million from a fundraising effort that targeted wealthy Canadian investors, bringing assets in its first private equity fund for individuals to about $8.5 billion, BNN Bloomberg reported. The money for the fund, known as BXPE, came from Royal Bank of Canada clients, a source said. RBC, with one of the largest networks of financial advisers in Canada, has been talking with money managers about ways to steer more clients into private markets. Blackstone structured the Canada offering of BXPE so clients could choose whether to have the investment in Canadian or US dollars. BNN Bloomberg

The Canada Infrastructure Bank (CIB) is lending $60.7 million to help the Metlakatla Development Corporation and the Prince Rupert Port Authority develop the Indigenous-led South Kaien Import Logistics Park at the Port of Prince Rupert in B.C. Funding comes from the CIB’s Indigenous Community Infrastructure Initiative and will be used for site infrastructure needed to develop 56 acres of flat, serviced land in proximity to Fairview Terminal, CN Rail and the recently announced CANXPORT facility. More than half of the logistics park is leased for a logistics and warehousing complex that significantly expands and strengthens import transloading and related capabilities at the Port of Prince Rupert. Most of the site preparation work is expected to be completed within two years and relates to heavy civil construction, land removal and levelling bedrock. A subsequent phase will see private sector investment build transloading and warehousing infrastructure. This will create approximately 100,000 20-foot-equivalent units of capacity to transload marine containers into domestic 53-foot containers, providing much-needed capacity, flexibility and resiliency for Canadian supply chains. The federal government previously backed the project with a $43.3-million grant from the National Trade Corridors Fund. CIB

Waterloo, Ont.-based VueReal raised US$40.5 million (Cdn$58.4 million) in an all-equity Series C funding round and plans to use the investment to scale production and expand its global ecosystem. The round was led by Export Development Canada with participation from Cycle Capital, BDC Capital's Cleantech Practice and TDK Ventures. VueReal, founded by former University of Waterloo professor Reza Chaji, uses nanotechnology to improve the production process for microLED displays, used in devices such as smartphones and smartwatches and other products requiring semiconductor technology. The company said this new investment will help enhance its ecosystem and support partners in integrating microLEDs in commercial production. Communitech

Canadian-founded, New York-based Clay, an artificial intelligence startup, officially secured “unicorn” status (a company valued at $1 billion or more) after raising US$40 million (Cdn$57.5 million) in a funding round that valued the company at US$1.25 billion. The round was led by Meritech Capital, with participation from existing investors Sequoia Capital, First Round Capital, BoxGroup, and Boldstart Ventures. Clay makes software that automates customer research. The company was launched in 2017 by two McGill University graduates and repeat entrepreneurs, Kareem Amin and Nicolae Rusan, looking to make computer programming more accessible. Clay on LinkedIn

Delta, B.C.-based Mangrove Lithium closed a $35-million financing round to support a lithium refining plant in Delta. Participants in the round included new investors Mitsubishi Corporation, Asahi Kasei Corporation, InBC Investment Corp. (InBC), Orion Industrial Ventures, and Export Development Canada. Also joining the round were Mangrove’s existing investors Breakthrough Energy Ventures, BMW i Ventures, and BDC Capital. Mangrove’s state-of-the-art facility – with construction already underway and the plant scheduled to be operational by late 2025 – will produce sufficient battery-grade materials to power approximately 25,000 electric vehicles each year. The facility is built around Mangrove’s electrochemical process, which eliminates harmful reagents, reduces waste and significantly cuts production costs and the carbon footprint of battery-grade lithium, the company said. As North America’s first electrochemical lithium refining facility, the plant will significantly enhance the lithium supply chain and bolster regional energy security, which is important given China’s proposed export ban on lithium processing technology. BusinessWire

Calgary- and Toronto-based OneVest, a wealth management technology platform, raised $29 million in an all-equity Series B equity funding round. The round was led by Salesforce Ventures with participation from new investors Allianz Life Ventures and TIAA Ventures. Returning investors included OMERS Ventures, Deloitte Ventures, Fin Capital, Luge Capital, and Pivot Investment Partners. OneVest’s platform is designed modularly and flexibly, allowing firms to roll out their full end-to-end solution, while large enterprises are able to pick and choose specific modules to modernize their wealth programs. OneVest said it plans to use the new capital to fuel its product development plans and continued U.S. expansion. OneVest

Canadian-led, San Francisco-based Nue raised $28.8 million in an all-equity Series A funding round led by Montreal-based Inovia Capital (which will gain a board seat with Nue) with participation from Information Venture Partners, Bluefish Capital, NextWorld Capital, NJP Ventures, and Operator Stack Fund. Nue’s Revenue Lifecycle management software helps companies build, manage and keep track of quotes, customer lifecycles, billing and revenue. Nue said it will use the new capital to accelerate product innovation of its platform, enhance customer success and expand globally. Nue

Halifax-based medical device company Sound Blade Medical Inc. raised $23.8 million in a Series A funding round, co-led by Amzak Health and Lumira Ventures with participation from Invest Nova Scotia. Sound Blade said the funds will be used to accelerate the development and clinical validation of the company’s technology designed to bring the benefits of precision ultrasound therapy to a wide range of patient conditions. Sound Blade, a spinout from Dalhousie University, is developing handheld ultrasound-guided histotripsy technology, a non-invasive, non-ionizing and non-thermal ablation technology guided by real-time imaging that uses focused ultrasound delivered from outside the body to mechanically destroy targeted tissue, including liver tumours. Compared with conventional open surgery, histotripsy offers the possibility of dramatically improved patient outcomes including less blood loss, fewer complications, reduced recovery time and decreased chance of infection. Sound Blade Medical

Paris, France-based fintech Formance raised US$21 million in a Series A funding round led by Montreal-based Portage and PayPal Ventures with participation from existing investors Y Combinator, Hoxton Ventures, and Axeleo. Formance initially focused on programmable financial ledgers, helping businesses track money flows across multiple bank accounts and payment providers. Now, the company is evolving into a broader fintech infrastructure platform offering mass payout solutions, a connectivity hub, payment orchestration and automated reconciliation. Formance said it will use the funding to open a New York office to accelerate U.S. expansion, grow its engineering and product teams, and develop new financial operations modules. Founders Today

Saskatoon- and Regina-based Conexus Venture Capital (CVC) has re-entered Saskatchewan’s venture capital scene with an investment in Regina-based parking software startup Offstreet’s $2.4-million seed round. It is Conexus’ first capital deployment in just under two years and marks the VC firm’s first investment through its $30-million-target Fund II, which held its first close last May and focuses on early-stage Saskatchewan-based tech startups. Conexus Credit Union, of which CVC is a venture offshoot, is the fund’s first limited partner. Founded by University of Regina graduates Matt Fahlman and Kyle Smyth, Offstreet makes licence plate-based parking validation software. The service allows parking managers to manage paid parking exemptions at ungated lots and garages, while drivers can use an app to validate their parking spots. Offstreet said the funds will be used to accelerate product development, expand market reach and add 10 to 15 new hires to their current team of 25 employees. BetaKit

Alberta Investment Management Corp. eliminated 19 jobs in non-investment areas months after the Alberta government ordered changes at the pension fund manager and fired its chief executive officer and the board. The employee responsible for Aimco’s diversity, equity and inclusion program is one of the 19 positions cut. Nate Horner, Alberta’s finance minister, stunned Aimco executives on November 7 by firing CEO Evan Siddall, other senior executives and the entire board of directors, saying they had allowed expenses to soar to unacceptable levels. The government named Ray Gilmour as interim CEO and installed Stephen Harper, former Canadian prime minister, as board chair. Aimco’s investment team, which manages about $169 billion, wasn’t affected by the 19 job cuts. BNN Bloomberg

Global climate tech equity financing fell 40 percent in 2024, signaling an uphill battle for emerging decarbonization technologies. There were 1,200 deals for a total of nearly $51 billion last year, compared with almost $84 billion in 2023, according to new BloombergNEF research. This is the third straight year that venture capital and private and public equity financing have dropped for climate-focused companies. While climate tech funding dropped, venture capital funding for all sectors increased. Among clean energy startups, nuclear companies raised the most as fusion efforts drew particular attention due to their potential to power data centres. AI companies experienced a huge bump in equity funding last year, reaching nearly $100 billion, while climate tech venture funding fell by $20 billion to $32 billion. Despite the dreary outlook for equity deals, overall investment in the global energy transition rose to more than $2 trillion for the first time, according to BNEF. Bloomberg News

Canadian fintech firm Nuvei Corporation acquired Paywiser Japan Limited, the Japanese subsidiary of British payments company Paywiser, and its license from the Japanese Ministry of Economy, Trade, and Industry. Financial terms of the deal weren’t disclosed. The acquisition allows Nuvei to expand further into the Asia Pacific region, including with a new Tokyo office. Nuvei can now offer direct acquiring services in Japan for every major credit card scheme and also extend its direct connectivity with alternative payment methods in Japan. Nuvei previously launched an operational hub in China in 2023 and has also acquired local licenses in Hong Kong, Australia and Singapore. Fintech Hong Kong

Payments company Plutera Capital in Montreal has acquired the assets of Montreal-based Hardbacon, including the Hardbacon.ca domain, following the fintech startup’s closure last year. Financial terms of the deal weren’t disclosed. Plutera operates affiliate marketing platforms that connect consumers with financial products and services. Hardbacon offered a free budgeting app and generated revenue through lead generation and affiliate marketing for financial products. Most of Hardbacon’s Google traffic vanished following some updates to the search giant’s algorithm. Plutera Capital on LinkedIn

REPORTS & POLICIES

AI development dominated by major tech firms could hobble competition in Canada

Canada’s Competition Bureau released a report titled Consultation on Artificial Intelligence and Competition: What We Heard, following the Bureau’s consultation on artificial intelligence (AI) and competition. 

The Bureau’s consultation on its AI discussion paper received 28 submissions. These came from a range of domestic and international respondents, including individuals, consumer advocacy groups, think tanks, members of academia and the legal community, industry associations and large technology companies.

The report outlines key themes and considerations raised during the consultation and includes four key takeaways:  

1. There is rapidly evolving advancement in all parts of AI technology, from AI inputs and foundational models to end products and services. AI advancements are introducing new market dynamics that can either promote or hinder competition.

AI development relies heavily on resources such as computing power, data centres and specialized chips. These resources are often controlled by major tech firms, and the dominance of large incumbents in controlling data “can create significant barriers to entry” and influence the competitive landscape, the report said.

2. Massive investment – key to technological growth – is occurring across the AI sector. In particular, investment by large incumbent firms is an area to monitor, given these firms’ potential to leverage their market power to stifle competition and innovation.

Large AI firms such as Amazon, Google, Microsoft, IBM and Meta have high market shares and substantial investment capacities, “saturating the infrastructure layer of the AI technology stack.” 

The AI industry is characterized by exclusive agreements between cloud infrastructure providers and major developers of large language models. These agreements can prevent smaller companies from accessing key AI technologies and inputs, such as training data, because they may be locked out by agreements.

3. AI can facilitate certain anti-competitive conduct. It remains to be seen whether existing antitrust laws are able to effectively address such practices or whether new or revised enforcement mechanisms are required.

The U.S. Department of Justice has argued that the use of shared pricing algorithms among competitors should be treated as a price-fixing offence under existing law.

Algorithmic pricing differs from traditional price-setting by quickly incorporating a wide range of competitive data, such as rivals’ pricing strategies, supply levels, demand trends and individual customer details.

The U.S. Federal Trade Commission has challenged Amazon's "Project Nessie" algorithm, alleging that it constitutes an anticompetitive practice under Section 5 of the FTC Act.

The Preventing Algorithmic Collusion Act in the U.S. is a legislative proposal aimed at addressing these challenges by making it illegal to use or distribute pricing algorithms trained on nonpublic competitor data.

The U.K.'s Competition and Markets Authority (CMA) has also expressed concerns about algorithmic pricing facilitating collusion. In its AI strategic update, the CMA highlighted the risks associated with firms using algorithms to set prices in ways that could sustain higher prices and reduce competition.

4. Respondents positively viewed the consultation exercise and the Competition Bureau’s role in ensuring a competitive marketplace. They also offered a number of ideas for future consultation and collaboration. Competition Bureau of Canada 

Treasury Board consultation identifies risks of AI being used in the federal public service, including areas where AI should not be used

The Treasury Board of Canada released a report on what it heard during consultations on the artificial intelligence strategy for the federal public service. The consultation process included more than 300 submissions and consultations. 

Work is underway to release the federal government’s AI strategy in the spring of 2025, the Treasury Board said. “The strategy will provide a roadmap outlining best practices to facilitate the ethical, secure and successful use of AI.”

The Treasury Board identified four key pillars to define the strategy:

1. Human-centred
2. Collaborative
3. Ready
4. Trusted.

The Treasury Board heard that for the public, AI should streamline service delivery, reduce wait times and consistently provide more accurate information. 

For public servants, AI should automate routine tasks and free up employees to focus on more complex tasks.

As for collaboration, participants emphasized the need for the federal government to work with various parties when adopting AI, including Indigenous communities, equity-seeking groups, academia and industry.

International cooperation is also key. “Aligning AI policies with international efforts to rally around a common approach will ensure Canada continues to be a leader on the global AI stage.”

When it comes to readiness, participants highlighted the need for scalable and secure AI systems, as well as for continuous training and purposeful upskilling so that public servants have the skills to use AI technologies effectively.

The foundational role for data in AI solutions was also identified. Participants repeatedly noted that reliable and trusted data, such as that provided by Statistics Canada, is the backbone of successful AI initiatives. “The output of AI systems is only as good as the data going into it or being used to train it; considerable effort may be required to make existing government databases AI ready.” 

Continued investments in data governance frameworks ensure that data will be accurate, complete and relevant for AI applications, the report said.

Robust IT infrastructure, including cloud computing and high-performance computing capabilities, is essential for AI deployment. Participants also suggested that the federal government should develop in-house AI capabilities to better manage infrastructure and reduce reliance on external vendors.

As for trust, participants stressed the importance of transparency and accountability and of understanding biases in AI models to prevent discrimination and ensure fairness in AI-driven decisions.

This is key for the public service, as it includes AI for delivering representative and inclusive government programs and services to all Canadians.

To build public trust, the government must communicate clearly about how and when it uses AI. For example, it must label AI-supported content and provide explanations and recourse when AI is involved in decision-making.

“Privacy and security are paramount, and the GC needs a strong focus on requirements to protect sensitive data and maintain public trust.”

When consultation respondents were asked about where they think AI could be used in the federal government, they said:

• Administrative efficiency, such as automating the creation, sorting and management of documents and reducing the time spent on administrative tasks. 
• Public service delivery, such as AI-powered chatbots managing routine inquiries from citizens and translating large volumes of text quickly and accurately.
• Data analysis and decision support, including analyzing large datasets to predict trends and outcomes and helping to analyze policy impacts by processing large amounts of information and providing insights that can inform decision-making.
• Human resources, such as streamlining the recruitment process and screening applications to search for specific combinations of skill sets or mark written exams.
• Public health and social services, such as helping to find patterns and support public health decisions. 
• Security and compliance, including monitoring transactions and activities to detect and prevent fraudulent activities. 
• Environmental management, such as optimizing the use of natural resources by analyzing data on consumption and availability and modelling and predicting the impacts of climate change.
• Public engagement, such as analyzing public sentiment on social media and other platforms to gauge public opinion. 
• Legal and judicial support, including helping to review legal documents, identify relevant information, ensure compliance with legal standards and prioritize cases.

Participants’ comments centred on four areas: procurement, sustainable AI practices, talent and training, and ethical use.

They emphasized that addressing these areas is crucial to ensuring that AI technologies are properly integrated, aligned with sustainability goals, supported by a skilled workforce, and governed by strong ethical standards. 

When it comes to procurement, participants said:

• The government should shift to a flexible and agile, outcome-based procurement model, which would emphasize achieving operational outcomes and providing value to citizens, rather than simply meeting technical requirements and specifications. 
• Procurement of AI must be ethical, and procurement processes must ensure transparency in the tools that are bought. 
• Supporting Canadian businesses, particularly small and medium-sized enterprises, should be considered essential for promoting innovation and economic growth. 
• Participants emphasized sovereignty and prioritizing Canadian AI solutions in procurement decisions, which can help make sure critical AI technologies and services are developed and retained in the country, enhancing national security and self-reliance but also stimulating local innovation and job creation. 

As for sustainable AI practices, participants said:

• The government should consider the environmental impact of AI technologies when making procurement decisions.
• Instead of using vast amounts of data, the government should use relevant data in smaller, optimized models because they use less energy to store and process data. This approach can result in better performance with less environmental impact.
• The government should consider requiring AI tools to be energy efficient and vendors of these tools to have environmentally friendly data centres in making procurement decisions.

When it comes to talent and training, participants said:

• Federal public servants at all levels need training in AI. AI literacy programs should cover the basics of potential applications, as well as ethical considerations. 
• To attract and retain top AI talent, the government will have to provide competitive salaries, career development opportunities and a supportive work environment. 
• Many respondents stressed the need for departments to work together to share AI knowledge, tools and best practices. Partnerships with companies and academic institutions can help the government tap into external expertise and resources.
• AI teams in the government need to be diverse. Diversity brings together different perspectives, which helps identify and address biases in AI models, including in data and algorithms. 

As for ethical use of AI, participants said:

• Comprehensive ethical guidelines for AI use in the federal public service are essential. These guidelines should cover fairness, transparency, accountability and bias prevention. 
• Respondents called on the government to put in place mechanisms to mitigate, detect and correct biases in AI systems. 
• Robust privacy protections are critical to make sure personal data is handled responsibly and in compliance with privacy laws.
• Strong security measures are also essential to protect AI systems from cyber threats and unauthorized access.
• Participants insisted that humans must oversee AI decision-making processes, particularly in high-stakes areas such as health care and law enforcement.
• Ethics committees should be set up to make sure AI systems are developed and deployed in compliance with ethical standards.
• Raising public awareness about AI benefits and risks through education campaigns and transparent communication is an essential element of a successful AI initiative.

Consultation participants expressed concern about the risks of using AI, including: 

• the risk of reinforcing biases in automated decision-making.
• threats to privacy and civil liberties from AI-driven surveillance.
• the potential for bias in employment-related decisions.
• the limitations and lack of empathy of AI in political decision-making and policy recommendations.
• risks of unfair exclusions in decisions about eligibility for social services.

Many participants mentioned several areas where the government should not use AI, including:

• Automated decision-making in criminal justice, such as in sentencing, parole decisions and predictive policing.
• Surveillance and mass data collection, including government use of AI for tracking individuals in public spaces or monitoring dissent, which could suppress free expression and infringe on personal privacy.
• Employment-related decisions, such as AI tools used in hiring, promotion or firing decisions that could propagate bias. 
• Political decision-making and policy recommendations, which require human judgment, ethical considerations and democratic processes that AI alone cannot provide. 
• Social services eligibility determination, which could unfairly exclude people because of algorithmic bias and error. Humans should always be involved in administrative decisions. Treasury Board of Canada 

Canada ranks only middling among G20 in competitiveness of the global food and beverage sector

Canada is ranked No. 13 among G20 nations in the competitiveness of the global food and beverage sector, according to a new report from Dalhousie University.

The report, Global Agri-Food Most Influential Nations Ranking, by Dalhousie’s Agri-Food Analytics Lab, is a first-of-its-kind report, commissioned by leading professional services firm MNP.

Canada’s No. 13 ranking puts it slightly behind Australia and Russia, in 11th place overall.

"Canada's ranking reflects its potential, but also the need for urgent action,” Matt MacDonald, national leader for food and beverage processing at MNP, said in a statement. “By focusing on innovation and streamlining regulatory processes, we can transform challenges into opportunities to cement our leadership in the global agri-food sector." 

The report identifies three key areas for improvement: 

• Support for Entrepreneurs: Small businesses face significant hurdles due to complex regulatory frameworks, reducing their ability to scale and innovate. “Too often, small 

businesses are forced to look to larger corporations for financial support before having the opportunity to realize the founder’s vision.”

• National Food Strategy: Canada lacks a cohesive food policy, limiting its ability to address food security challenges and capitalize on its agricultural strengths. 
• Innovation and R&D: Insufficient investment in research and development hampers advancements in agri-tech, sustainability, and value-added processing. 

Key findings of the report include:

• Food Security Leadership: Canada ranks among the highest globally for food security, bolstered by its advanced agricultural technologies and natural resources. 
• Trade Challenges: Despite having a $13.3-billion agricultural trade surplus, Canada’s exports remain heavily focused on raw materials, missing opportunities to capture greater economic value through processing. “While Canada excels in producing raw materials, the benefits of transforming these commodities into high-value products are frequently realized by other countries.”
• Logistics and Geography: The country’s vast landscape and high transportation costs hinder competitiveness, necessitating investment in infrastructure and supply chain modernization.

Sixty-five percent of Canada’s grocery market share consists of three retailers, the report notes. 

The concentration of market power among a few major players stifles competition, innovation and competitiveness within the agri-food sector, the report says. 

"Other nations are excelling by fostering collaboration between industry and academia. Canada must embrace similar approaches to address systemic gaps and improve sustainability, competitiveness and resilience,” said Janet Music, research program coordinator at the Agri-Food Analytics Lab.

To improve Canada’s ranking and secure its global influence in agri-food, the report recommends: 

• Supporting small businesses by simplifying regulations and ensuring fair market practices under the new Grocery Code of Conduct. 
• Developing and implementing a unified national food strategy. 
• Increasing funding for R&D to foster innovation in sustainability and agri-tech. “Further success will require targeted investments in research, innovation and technology to accelerate entrepreneurial growth.”

"Canada’s agri-food sector has immense promise, but to climb the rankings, we need to align resources with a clear strategic vision. Innovation, transparency and investment in our entrepreneurial ecosystem will be key drivers,” said Dr. Sylvain Charlebois, director of the Agri-Food Analytics Lab. Agri-Food Analytics Lab

Regenerative agriculture yielding benefits in Alberta but requires policy changes and enhanced funding: School of Public Policy

Regenerative agriculture (RA) is gaining traction in Alberta, offering solutions to climate challenges, enhancing soil health and promoting sustainable farming, according to a policy brief from the Simpson Centre for Food and Agricultural Policy at the University of Calgary’s School of Public Policy.

Regenerative agriculture is a farming method that aims to improve the health of the soil, water and biodiversity of a farm. 

RA has shown significant successes in Alberta, including improved biodiversity and soil health through multispecies planting and no-till approaches, say the brief’s authors. They are postdoctoral scholar Tatenda Mambo, research assistant Ohi Ahmed, project coordinator Roshanne Sihota and Anaïs Dardier.  

Alberta's leadership in soil health and grazing management is highlighted by events like the Western Grazing Conference.

The growing interest in RA is fueled by its alignment with sustainability, land stewardship values and pressures from climate change, the brief says.

Despite successes, however, several barriers hinder RA expansion. “There is a disconnect between RA practices and national ecosystem service payment programs, limiting economic incentives for farmers transitioning to RA.”

Also, the limited availability and high certification costs for programs such as Ecological Outcome Verification and insufficient financial support exacerbate the financial burdens faced by producers, according to the brief.

Supply chain gaps present another challenge, as existing infrastructure remains tailored to conventional commodity markets, making it difficult for RA producers to market their products. “Moreover, impatience among stakeholders seeking immediate results undermines the long-term commitment required to realize the cumulative benefits of RA practices.”

To address these challenges, the brief’s authors say policy has a pivotal role to play in expanding RA initially through adopting a forward-looking approach that enables realization of ecological and economic outcomes.

Introducing penalties for unsustainable practices, such as draining wetlands, could generate funding for conservation initiatives, they say.

Developing transparent data-sharing frameworks would address producer privacy concerns, balancing regulatory requirements with incentives for RA adoption.

Fostering RA-specific value chains to promote direct-to-market opportunities can align market demand with ecological benefits.

Expanding RA grants with tiered entry points for beginners and mentorship from experienced practitioners can accelerate adoption and knowledge sharing.

The authors recommend that a dedicated RA Commission should be established to consolidate efforts and increase lobbying power. Aligning with broader agricultural groups such as the Alberta Livestock Group can amplify RA’s influence.

Inclusive programmatic incentives supporting both new and established RA practitioners can ensure sustained engagement.

Collaborative frameworks integrating RA with other ecologically focused farming models can maximize collective impact.

Addressing financial costs, supply chain limitations and program restrictions is essential for unlocking RA’s full potential, the brief’s authors say.

“Strategic policy changes, enhanced funding mechanisms and robust advocacy frameworks are required to sustain and expand RA practices, ensuring a sustainable and resilient future for Alberta's agricultural sector and ecosystems.” School of Public Policy

Canada needs its own space launch capability to fuel growth in the country’s space sector

Canada’s lack of its own space launch capability has slowed the growth of the country’s space sector, according to a report by Polaris Aerospace.

The Montreal-based space business and engineering consulting firm’s report, The Need for Canadian Sovereign Space Launch, said Canada is one of the few space-faring nations without space launch capability and must develop it. “Canada must stand as an equal among its peer nations in the G7 and develop its own space launch capability.” 

“Canada has long lacked a sovereign space launch capability, which has slowed the growth of its space sector, left it reliant on partners for critical space infrastructure, and has left the nation’s economic interests vulnerable to foreign actors,” according to the report.

“Without launch, there could be no space industry,” the report’s authors said. “Given that deriving value from space is only possible with launch, it follows that Canada’s space sector is wholly reliant on foreign services for its continued existence and growth.”

The report outlines the defence and economic benefits of building a sovereign space launch capability and proposes actions that the federal and provincial governments and other participants of the Canadian space sector can take to promote and realize a sovereign space launch capability.

Polaris’ two founding partners are Neil Woodcock and Oleg Khalimonov. Woodcock was chief operating officer of Reaction Dynamics earlier in his career, before moving more into marketing. Khalimonov is currently the program lead for Starsailor, a Space Concordia student project at Concordia University; they plan to launch the first-ever university rocket into space. 

The Polaris Aerospace report’s authors provide nine action points:

• The federal government should incorporate launch as part of a whole-value-chain national space strategy.
• Ottawa should adopt the measures recommended in Deloitte’s and Space Canada’s 2024 report.
• Canada should accelerate and complete its modernized space launch regulations.
• Canada should include space launch as part of its defence strategy, with additional funding earmarked for developing space launch technologies as well as for developing hypersonic and anti-hypersonic systems.
• As the “traffic jam” at spaceports in the U.S. and the United States Space Force’s interest in Canadian spaceports show, launch sites are a critical element in maintaining a sovereign space launch capability.
• The federal government should commit to being a first launch customer for aspiring launch companies.
• Ottawa should take steps to improve talent and capacity-building initiatives for space launch.
• Space Canada and other space industry groups should adopt the framing of the whole-value-chain strategy, recognizing that their efforts are less effective in the long term if they choose not to advocate for space launch as strongly as they advocate for other verticals of the Canadian space sector.
• Space industry members should include space launch in their lobbying to government as an important but missing component of Canada’s space industry. 

"The primary advantage of space launch for Canada is that it completes the national space industry’s value-chain, allowing for missions to be completed end-to-end within Canada,” the report said.

“Space launch is needed as part of a wider space strategy which encompasses the whole space sector. Canada’s space economy must be internally self-sufficient before it can be internationally competitive."

Maritime Launch Services, a Canadian firm founded in 2016 and based in Nova Scotia, is building a spaceport near Canso, N.S. The company plans a first orbital launch as early as 2026 and already achieved a suborbital launch in 2023.

Maritime’s launch facility, in addition to helping to reduce Canada’s reliance on other countries for launch capability, also could provide valuable services to the U.S. as well as score Canada points in convincing Americans it is doing its part on the security front, according to an internal Department of National Defence (DND) briefing obtained by the Ottawa Citizen.

“Canada adding a launch capability on the east coast of North America will allow access to a range of key orbits of interest to the U.S. and would add to Canada’s relevance and credibility in the international space community by also offering additional launch options to other allies and partners,” said the briefing prepared for Defence Minister Bill Blair by then-eputy Minister Bill Matthews.

However, DND and the Canadian Armed Forces haven’t provided any funding to Maritime Launch Servies, nor have they committed to using the company’s capabilities in the future, DND said in a statement.

The federal government has provided a $120,000 repayable contribution to Maritime to prepare for the installation of specialized tracking and communications equipment at its spaceport. SpaceQ, Orbital Today, NordSpace

Alberta government report on the province’s response to the COVID-19 pandemic is “anti-science:” Alberta Medical Association

A Government of Alberta report on the province’s response to the COVID-19 pandemic promotes misinformation and anti-science narratives, said Dr. Shelley Duggan, president of the Alberta Medical Association (AMA).

This report is anti-science and anti-evidence, Duggan said in an open letter. “It advances misinformation. It speaks against the broadest and most diligent international scientific collaboration and consensus in history.”

Through science and evidence, the medical and other communities were able to learn together while observing and adjusting to the twists and turns of COVID’s destructive evolution, Duggan said. “Science and evidence brought us through and saved millions of lives.” 

The report by a provincial government-appointed task force recommended that the use of COVID-19 vaccines be halted unless more information is provided about risk and an opt-out mechanism from federal public health policy is provided. 

“This report sows distrust,” Duggan said. “It criticizes proven preventive public health measures while advancing fringe approaches. It makes recommendations for the future that have real potential to cause harm.”
 “At a time when our hospitals are struggling to stay afloat and patients are waiting for care every hour of every day, the $2-million price tag for this product could have been much better spent,” Duggan said.

Dr. James Talbot, former chief medical officer of health for Alberta and an adjunct professor at the University of Alberta’s School of Public Health, said the 269-page report cherry-picks information and includes unproven ideas, including that the COVID-19 vaccine is ineffective and potentially harmful.

“We’ve given literally billions of doses of this vaccine around the world with the best surveillance we’ve ever had. This is one of the safest, most effective vaccines that we’ve ever had,” he said.

Talbot said the Alberta government has data that shows who got immunized, how many of those people developed COVID, whether any of them developed rare medical conditions after they received the COVID vaccine, emergency room visits and hospital admissions, ICU admissions and deaths.

Not using those numbers makes the Alberta Health Ministry look either lazy or incompetent, he said.

Talbot, who described the report as “amazingly badly put together,” said if an undergrad student handed the report in, he’d give it a failing grade. 

The 13-member task force was led by Dr. Gary Davidson, who had previously accused the province of exaggerating COVID-19’s impact on hospitals.

Another paid panelist, Jay Bhattacharya, was nominated by U.S. President Donald Trump to run the National Institutes of Health.

Bhattacharya co-authored the Great Barrington Declaration, arguing for protecting at-risk populations but otherwise letting COVID-19 make its way through the population to build up “herd immunity.”

All the task force members had an axe to grind about Alberta’s response to COVID, said Duane Bratt, a political science professor at Mount Royal University. “They had either lost their jobs, or they had filed lawsuits, or they had been public critics.”

“They quote Substack posts as if they’re peer-reviewed articles,” Bratt said. “They cite retracted studies that were flawed and so were removed, so they have to rely on YouTube videos from the study’s primary investigator.”

Dr. John Conly, a specialist in infectious diseases, a professor and former head of the Department of Medicine at the University of Calgary and Alberta Health Services, asked that his name be removed as a contributor to the report, which the Alberta government did. 

Dozens of medical experts wrote an open letter to Alberta Premier Danielle Smith and Health Minister Adriana LaGrange appealing for the government to publicly renounce the report.

The letter was signed by 67 individuals, including professors of virology, immunology, pediatrics, and infectious diseases, among other specialties.

Smith said she’s not sure which recommendations from the report her United Conservative Party government will implement.

Smith told reporters that critics of the report are trying to control the narrative and said she doesn’t want to see “contrarian voices” shut out when reviewing pandemic response measures. AMA, Edmonton Journal

THE GRAPEVINE – News about people, institutions and communities 

Innovate BC announced Elizabeth Dutton as its new chief operating officer. In this role, she will provide strategic leadership to the organization, focusing on operational efficiency, growth and the development of a high-performance team. Prior to joining Innovate BC, Dutton served as vice-president, digital operations at Black Press Media, the largest privately held Canadian media company. She also is a founding partner of Women’s Equity Lab, a series of international women-led venture funds across Canada and the U.S. representing over 400 women investors globally. Dutton is actively involved in B.C.’s innovation and entrepreneurial community, serving as a mentor, advisor and board member for startups across a variety of verticals, including consumer packaged goods, green tech, health care and education. Innovate BC

Andrew Wilkinson and Chris Sparling, co-founders of holding company Tiny, have been named the University of Victoria Peter B. Gustavson School of Business 2025 Distinguished Entrepreneur of the Year Award recipients. Victoria, B.C.-based Tiny owns over 40 businesses, including Letterboxd, the popular social network for film lovers, and AeroPress, makers of the iconic coffee press. The partnership between Wilkinson and Sparling began in 2009 at MetaLab, Wilkinson's first business. At Tiny, their approach challenged traditional private equity models. Instead of quick flips and aggressive optimization, they focused on long-term ownership and preserving what made each business special in the first place. University of Victoria

The Financial Services Regulatory Authority (FSRA) of Ontario named Dexter John as its new CEO and president, six months after the organization’s inaugural CEO stepped down to join the Ontario Energy Board. John, one of FSRA’s board members, is currently CEO of consulting firm Morrow Sodali (Canada) Ltd. He will replace Stephen Power, who stepped into the role of interim CEO last summer after the departure of FSRA’s inaugural CEO, Mark White. FSRA was founded in 2019 to replace the Financial Services Commission of Ontario and the Deposit Insurance Corporation of Ontario. The organization oversees the province’s financial services providers, such as certain areas of insurance, pensions, credit unions and mortgage brokers. The Globe and Mail

Montreal-based CGI Group Inc. named Julie Godin as its new executive chairperson. The Canadian IT and management consulting firm is doing more business with the U.S. government at a sensitive time for Canada-U.S. relations. Godin takes over from her father, CGI founder Serge Godin, who will stay on the board as co-chair and focus on large-scale acquisitions and engagement with customers. Julie Godin started at CGI in July 2009 as vice-president of human resources and organizational development, taking on increasingly senior responsibilities over the years. The Globe and Mail 

David Scandiffio, president and CEO of CIBC Asset Management, will retire from the bank on April 30, 2025, after a decade of leading the retail and institutional business. As of January 22, Scandiffio, who is also an executive vice-president and member of the CIBC Wealth Management executive team, moved into a special advisor role and will continue to support the asset management business. Scandiffio, 54, is an industry veteran with more than 30 years of investment fund experience. The Globe and Mail 

Georgian College in Barrie, Ont. is collaborating with Meta to introduce Intelligent Tutoring Systems (ITS) that are powered by AI. The collaboration will use generative AI and extended reality to advance the development of ITS at the college. Georgian College will be using Meta’s Llama 3 platform to enhance hands-on learning by developing an intuitive AI tutor. Once the ITS is developed, students will be able to use the technology to study and learn course content, view personalized responses to questions, and participate in auditory, visual and tactile experiences. Meta provided Ray-Ban Meta glasses and financial support as part of a three-year collaboration. The first courses in development are anatomy and physiology, with plans to expand to more programs. Georgian College 

TRU launches Honours College to promote interdisciplinary, experiential learning

Kamloops, B.C.-based Thompson Rivers University has announced that it is launching an Honours College this Fall, which it says is the first of its kind in Canada. The Honours College will open the door to more interdisciplinary learning, research, and experiential opportunities for students, as well as tailored academic and personal supports. The college will launch with a University Honours Certificate program that TRU students can add onto their primary degrees. “Academic excellence isn’t just about the grades or credentials students earn — it’s also about the experiences and perspectives students bring,” said TRU Faculty of Student Development Interim Dean Will Garrett-Petts. “The Honours College Certificate invites students from diverse backgrounds to contribute to a dynamic academic environment where all can thrive.” TRU

Lakehead receives $15M from Simcoe for Orillia Campus expansion

Lakehead University will receive $15M over the next 10 years from the County of Simcoe to support the expansion of its Orillia, Ont. Campus. The funding will help construct a new building to expand programming and improve access to education. The new space will include an Indigenous learning and gathering centre, student programming space, and a centralized student services hub. “This [support] will allow our campus to grow to an estimated 3,500 students,” said Lakehead President Dr. Gillian Siddall.  Lakehead

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