The Short Report: January 22, 2025

GOVERNMENT FUNDING

 Ottawa provides more than $95 million for Lab to Market networks across Canada

The Government of Canada announced $95.3 million over five years through the Lab to Market grants to support four networks of post-secondary institutions and organizations from private, public, not-for-profit and health services sectors. The four networks are:

• Red River College Polytechnic - College-University Lab to Market Network for Entrepreneurship & Research Commercialization (about $24 million in funding).
• Dalhousie University - Lab2Market: Canada’s National Network for Innovation, Commercialization, and Entrepreneurship Skills Training of Students, Researchers, and Highly Qualified Persons (about $32 million).
• Simon Fraser University - National Invention to Innovation (i2I) Network (about $23 million).
• University of Guelph - Sustainable Food Systems for Canada Innovation Platform (about $16 million).

The funding will establish Dalhousie University as the headquarters of Lab2Market, a national entrepreneurial skills training program that was a joint venture between Dalhousie, the University of Toronto, and the non-profit research organization Mitacs.

The University of Alberta (U of A) is a partner in all four networks and will collaborate with the College-University Lab to Market Network and the Lab2Market network to provide training on the commercialization of research results.

Part of the work will be helping trainees recognize what might have commercial potential, as well as providing tools to help them commercialize technologies and other advances.

The U of A is the lead institution for the Alberta hub of the Lab2Market network and recently launched the 16-week Lab2Market Validate program, which takes participants through the process of unlocking the business potential of their research ideas.

The Validate program is currently funded by Prairies Economic Development Canada, Alberta Innovates and Mitacs, and will be delivered jointly with the University of Lethbridge and Innovate Calgary.

The four networks bring together 243 partner organizations, collaborators and co-applicants across the country, from academia, private, public, not-for-profit and health services sectors.

These multidisciplinary networks aim to foster the development of entrepreneurship skills and commercialization capacity across the academic community.

The networks will provide researchers with access to the tools, resources and expertise they need to transfer scientific, social and service innovation to market or to community users. This support includes digital resources to enhance awareness and knowledge of commercialization processes, mentorship and business coaching, financial assistance, and opportunities for collaboration and sharing best practices.

The Lab to Market grants initiative stems from Ottawa’s commitment in the 2022 federal budget to launch a new national program to help students and researchers take their work to market. Natural Sciences and Engineering Research Council of Canada, University of Alberta

See also: Network for entrepreneurial grad students and post-docs keeps growing, launches new startup program

Pilot program for young entrepreneurial academic researchers expands across Canada

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The Government of Saskatchewan announced the second intake of the Technology Fund, with more than $50 million available to help Saskatchewan industries reduce their greenhouse gas emissions. During the first intake, the Technology Fund provided more than $25 million to 13 projects, that are projected to reduce more than 4.5 million tonnes of carbon dioxide equivalent emissions, attract approximately $277 million in private-sector investment, and unlock nearly five million gigajoules of energy savings. Successful proposals from the first intake included projects from Whitecap Resources Inc. and Batex. Regulated emitters interested in applying can visit Saskatchewan.ca/Tech-Fund for details on eligibility and application guidelines. Govt. of Saskatchewan

Agriculture and Agri-Food Canada (AAFC) announced $9.4 million for crop-related research, in addition to $5.4 million in co-funding from industry partners for a combined total of $14.8 million in 2025. Invested through Saskatchewan's Agriculture Development Fund (ADF) under the Sustainable Canadian Agricultural Partnership, the commitment supports a total of 53 approved research projects on a variety of topics that will help advance the industry. This investment is part of Saskatchewan's 2024-25 budget of $37 million for agriculture research.

The range of topics covered by the 2025 ADF projects include mapping soil carbon sequestration in Saskatchewan cropland, examining alternative genetic mechanisms for resistance to the wheat stem sawfly, and studying the effects of a pea-based beverage on bone health to prevent osteoporosis and bone fracture. AAFC

The federally funded Canada’s Ocean Supercluster (OSC), based in Atlantic Canada, announced three new ocean innovation projects valued at more than $9 million, including the $4.5-million Forecast AI Project led by Victoria, B.C.-based MarineLabs. The OSC is investing $1.8 million in this new collaborative OSC project, which includes partners Go Deep International in Saint John, N.B., and LeeWay Marine in Dartmouth, N.S. MarineLabs’ Forecast AI enables hyper-localized, highly accurate weather forecasts for the marine industry. Current publicly available forecasting models struggle to capture the precise topographic features influencing local wind and wave formation, hindering marine operations such as mariner working conditions and port approaches for vessels. The use of AI combined with extensive observed data from MarineLabs’ expanding sensor network will provide access to high-accuracy forecasts from numerous coastal locations around an area of interest, such as a port, offering actionable insights to optimize maritime operations, improving safety and reducing greenhouse gas emissions. The other two new OSC-industry projects are:

• $3.8 million- (including a more than $1.5-million investment from OSC) AI-Powered Vessel Automation Toolkit Project, led by Halifax, N.S.-based Marine Thinking in partnership with ACEL Power in Vancouver, B.C. The project aims to deliver an AI-powered vessel automation toolkit, which will transform existing vessels into smart vessels that have autonomous navigation capabilities and improved operational efficiency. The project will improve fishing operations, increase competitiveness in ocean AI and enhance existing infrastructure. 
• $940,000-Amphibian UWILD Remote Robotic Platform Project, led by Marine Thinking in partnership with Innvotek and Innovate UK, both in London, England. The project will increase the speed and accuracy of ship hull inspections and reduce the risks associated with diving crews, benefitting the shipping industry in Canda, the U.K., and globally. Canada’s Ocean Supercluster

Natural Resources Canada (NRCan) announced more than $8.8 million for nine projects in Atlantic Canada under NRCan’s Climate Change Adaptation Program (CCAP) and Climate-Resilient Coastal Communities (CRCC) Program. These projects aim to support regions and sectors in Atlantic Canada in adapting to a changing climate. The projects will focus on developing and improving strategies, tools and resources; strengthening the knowledge and skills of practitioners; and implementing innovative adaptation actions to address climate change risks and adaptation gaps. The funding comes from a total investment of $39.5 million, announced on November 14, 2024, through the CCAP and the CRCC Program to reduce climate change risks and build more-resilient communities across the country in support of the National Adaptation Strategy. NRCan

Agriculture and Agri-Food Canada (AAFC) announced a joint federal and Ontario governments’ investment of up to $7.18 million through the Sustainable Canadian Agricultural Partnership in 70 projects across the province to enhance and modernize dairy processing capacity and food safety. The funding, cost-shared by the dairy sector, is expected to generate approximately $22 million in total capital investments while reinforcing the supply of safe, high-quality Ontario milk on store shelves. The Dairy Processing Modernization Initiative is over 90 percent subscribed and still accepting applications from cow, goat, sheep and water buffalo milk processors. Successful applicants can receive up to $200,000 in cost-shared funding to enhance processing efficiency and food safety in their facilities. The funding can be used to help cover the costs of new or refurbished equipment, one-time training and more. AAFC

The Government of Ontario is investing more than $7 million in 17 projects to accelerate research, development and commercialization of innovative technologies to help the province meet the increasing global demand for critical minerals needed to manufacture batteries and electric vehicles. The funding, delivered through the Critical Minerals Innovation Fund, will help stimulate investment in Ontario’s critical minerals supply chain and create jobs in the mining sector. The projects receiving funding span a range of focus areas such as mineral exploration, extraction, processing, advanced manufacturing and recycling of minerals. Examples of projects include:

• $495,740 to NetZero Metals to support low carbon, low-cost nickel processing capacity in Timmins.

• $223,552 to EV Nickel Inc. to advance its bioleaching process and prepare the final design for its pilot plant in Timmins to produce high-grade clean nickel to support the EV supply chain. Govt. of Ontario

The Government of British Columbia is contributing up to $5.1 million, through the BC Manufacturing Jobs Fund, to seven forest sector capital projects and five planning projects in communities throughout the province. These projects are supporting forest product manufacturers to innovate their business lines and grow their operations, supporting a sector throughout B.C. focused on producing leading-edge, high-quality wood products and biomaterials. For example, Maple Ridge-based Cedarland Forest Products Ltd. will receive as much as $1.3 million to buy and install new high-temperature kilns and a moulder, allowing the company to diversify its fibre sources to include underutilized species and reduce its reliance on old-growth cedar. The project will enable Cedarland to produce new thermally modified wood products, access new markets and create 23 new forestry jobs. Govt. of B.C.

The Federal Economic Development Agency for Southern Ontario (FedDev Ontario) announced over $3.5 million for Toronto Metropolitan University (TMU) to establish the Centre for Housing Innovation (CHI), an accelerator led by TMU’s DMZ entrepreneurial organization. The CHI will act as a central hub, bringing together innovators, developers, contractors and municipalities to advance the development and commercialization of housing technologies. The CHI will help to foster innovative companies ready to address critical housing supply chain challenges through two cornerstone initiatives: the Accelerator for Housing Solutions, and the Training Program for Housing and Manufacturing Innovation. The cohort-based Accelerator for Housing Solutions will launch in the spring of 2025 and will provide participating entrepreneurs with access to industry experts, resources, state-of-the-art facilities and mentorship, as well as the opportunity to develop and pilot solutions to housing supply challenges in real-world settings. The Training Program for Housing and Manufacturing Innovation will provide industry professionals, including manufacturers, developers and contractors, the opportunity to build their knowledge and skills in new homebuilding techniques, sustainable design, regulatory compliance and cutting-edge building materials. The training programming will launch later this year. FedDev Ontario

Prairies Economic Development Canada (PrairiesCan) announced federal funding of $988,100 for the University of Saskatchewan (USask) to expand its Opus startup incubator, providing additional entrepreneurship training and support services to new founders and innovators within the university’s research and development network. Opus, created in 2022, has developed an array of programs to help innovators transform their ideas into successful products and services. Their student ambassadors help spread the word about Opus and potential founders can participate in various programs including:

• Idea2Explore, to learn more about entrepreneurial thinking and the benefits of entrepreneurship.
• Innovation2Build, which provides access to entrepreneurial programming, infrastructure and a network of experts, tailored to the unique needs of USask founders.
• Impact2Market, which provides graduates of Innovation2Build with more training, funding and access to infrastructure.

Saskatchewan’s tech sector recorded $845.5 million in revenue in 2022 and accounted for 10 percent of all jobs created in the province between 2016 and 2023, according to a report by Innovation Saskatchewan. Industry growth is projected to triple by 2030 and incubators and accelerators are a big part of this success. PrairiesCan

The Natural Sciences and Engineering Research Council of Canada (NSERC), Social Sciences and Humanities Research Council, and Canadian Institutes of Health Research – in collaboration with the IVADO AI research consortium in Quebec – are partnering with the French National Research Agency (ANR) to fund collaborative research projects on artificial intelligence. This call will support international, collaborative multi- and interdisciplinary research projects that address generative AI and the security and safety of embedded AI. Eligible Canada-based researchers working in partnership with France-based researchers could receive up to Cdn$100,000 per year and up to $20,000 per year in supplemental funds from IVADO, for two to three years. NSERC

External information technologies contractors working for four federal departments and agencies cost between 22 percent and 25.7 percent more in fiscal year 2022-23 than staff experts did, according to a report by the Parliamentary Budget Officer (PBO). The federal government spent $2.7 billion on “informatics services” in FY 2022-23, out of a total of $18.6 billion spent on professional and special services, according to the report. With the data that was provided, the PBO’s office said it was unable to determine the underlying reason for these premiums and whether these premiums were justified. The report was based on a request from the Standing Committee on Government Operations and Estimates for the fiscal cost of task-based IT contracting. For a more in-depth analysis of the use of task-based IT contracting, the PBO suggested that parliamentarians may wish to ask the Office of the Auditor General to conduct an audit, as the PBO is limited to the data it receives through information requests submitted to departments and agencies. PBO

RESEARCH, TECH NEWS & COLLABORATION

Council of Canadian Innovators launches new policy institute focused on homegrown innovation, economic leadership and defence

The Council of Canadian Innovators (CCI) launched the Canadian SHIELD Institute, supported by a $10-million donation from Jim Balsillie, the CCI’s co-founder and chair and former BlackBerry co-CEO.

The new policy institute is focused on securing homegrown innovation, economic leadership and defence – or SHIELD.

The institute will act as a catalyst for bold ideas, fostering collaboration among expert public policy leaders, government and industry pioneers to secure Canada’s long-term prosperity and resilience, the CCI said.

The plan is for the institute to work with other industry leaders, visionaries and philanthropists to scale up the organization and ensure its long-term impact on Canada’s prosperity and resilience.

The institute will operate as a separate entity from CCI, with opportunities for the two organizations to collaborate.

Building on the success of CCI’s policy reports and initiatives – such as CCI’s Talent & Skills Strategy, SR&ED reform, and Building Winners: Strategic Procurement in the Age of Innovation, the institute will provide a robust platform for thought leadership, expert research and impactful communications across a broader spectrum of policy areas.

The Canadian SHIELD Institute plans to disseminate its research and policy ideas through events, research papers, think pieces and policy recommendations. The institute’s focus areas include:

• Sovereign Approaches to Economic Development.
• Strategic Leadership in National Security and Defence.
• Transformative Tax Policy for Global Competitiveness.
• Modernizing Governance through Institutional Reform.
• Building Abundance in Energy, Housing and Critical Infrastructure.
• Positioning Canada at the Forefront of Deep Technology.
• Innovation Strategies for Energy, Minerals, Agriculture, Forestry, Fisheries, Housing and Health Care.
• Championing Canadian Democracy, Culture and Values.

The Canadian SHIELD Institute is launching at a pivotal moment, as Canada grapples with significant challenges to its sovereignty, productivity and economic resilience.

From navigating the economic and security implications of the new U.S. administration’s protectionist policies to responding to complex geopolitical rivalries, the need for fresh, strategic, innovative policymaking has never been greater, the CCI said.

In a National Post op-ed last week, Balsillie criticized Canada’s current industry policies, arguing that the federal government failed to recognize the new knowledge-based intangibles economy, lacks a national strategy to capture wealth, and that a large portion of federal innovation funding has gone to foreign entities.

“No country with our potential inflicts as much damage to its own economic prosperity and sovereignty as Canada,” Balsillie said.

The Canadian SHIELD Institute's work is grounded in the belief that Canada’s long-term prosperity depends on building a sovereign, self-reliant economy that’s able to compete and win in global value chains and that leverages homegrown talent, technology and innovation.

“As Canada faces unprecedented economic and national security challenges, we also stand at a crossroads for rebuilding our nation’s resilience and growth,” Benjamin Bergen, CCI’s president, said in a statement.

“The Canadian SHIELD Institute is our answer to the growing demand for deeper industry engagement and bold, forward-thinking solutions to safeguard Canada’s long-term prosperity.” CCI

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The University of Saskatchewan (USask) will receive more than $1 million over the next five years from Canada’s pork industry to support an extension of the university’s Chair in Swine Welfare. The funding comes from 14 partners who work in the pork industry, including producers, processors and veterinarians. USask’s Western College of Veterinary Medicine associate professor Dr. Yolande Seddon, PhD, will continue to provide leadership in swine welfare research and industry expertise as the renewed chair. Seddon, whose research focuses on the behaviour and welfare of farmed pigs, served as the first Natural Sciences and Engineering Research Council of Canada Industrial Research Chair in Swine Welfare at USask from 2018 to 2024. More than 7,000 pig farms across Canada produce over 25 million pigs each year for commercial pork production. As the third-largest pork exporter in the world, Canada’s swine industry annually generates nearly $5 billion in exports. USask

Ontario Power Generation (OPG) is exploring building up to 10,000 megawatts of new nuclear generation near Port Hope on Lake Ontario. OPG already owns about 525 hectares at the Wesleyville site near Port Hope, where an oil-fired generating station has sat dormant for 45 years. The Town of Port Hope and the Williams Treaties First Nations have expressed an interest in exploring the potential for new nuclear generation at the site, OPG said. The site is already zoned for electricity generation, has proximity to transmission, and is ideally located within a southern Ontario region that has access to necessary resources and is experiencing significant growth, OPG said. OPG also is exploring its Nanticoke and Lambton former coal-fired generation sites in southwest Ontario for new generation potential to help meet Ontario’s demand for electricity – expected to grow by 75 percent by 2050. OPG

The Government of Ontario helped secure a $40-million agreement between Laurentis Energy Partners, a subsidiary of Ontario Power Generation, and Orlen Synthos Green Energy (OSGE) during a trade mission to Poland and Estonia. In Warsaw, Stephen Lecce, Ontario’s minister of energy and electrification, joined Rafal Kasprow, CEO of OSGE, for the signing of the agreement that will see Laurentis Energy Partners support the deployment of small modular nuclear reactors in Poland. Under the agreement, Laurentis will support the completion of a preliminary safety analysis report, a comprehensive study required by Poland’s National Atomic Energy Agency. In Tallinn, Estonia, Lecce joined Kalev Kallemets, CEO of Fermi Energia, for the signing of a memorandum of understanding with Laurentis Energy Partners to explore opportunities relating to small modular nuclear reactor development in Estonia. Govt. of Ontario

The Government of British Columbia will enable the BC Energy Regulator (BCER) to act as a one-window regulator for permits necessary to support the North Coast Transmission Line (NCTL) and other high-voltage electricity transmission projects. To ensure that BC Hydro’s NCTL can deliver clean power to regional industries and businesses as quickly and efficiently as possible, the government will make legislative amendments in the spring of 2025 to enable the BCER to adjudicate permits and authorizations associated with the construction of the 450-kilometre NCTL, between Prince George and Terrace, and other major high-voltage transmission lines. The amendments will leverage the BCER’s experience with linear infrastructure and one-window lifecycle regulation to expedite the permitting, approval and construction of the NCTL in partnership with the government, BC Hydro and First Nations. The north coast of B.C. is seeing significant growth and prospective investment in many areas, including ports, critical mineral exploration and mining, and LNG and hydrogen initiatives, all driving demand for clean electricity. The area is currently served by one 500-kilovolt transmission line running from Prince George to Terrace, that does not have the capacity to serve the increasing demand. Govt. of B.C.

The Sturgeon Lake Cree Nation is calling on the Alberta government to “cease and desist” with plans for a $70-billion AI data centre proposed by celebrity investor Kevin O’Leary on its traditional territory. On January 13, Sturgeon Lake Cree Nation wrote an open letter to Premier Danielle Smith, stating it first learned about the proposed project – described by O’Leary Ventures as “the largest AI data centre industrial park in the world” – through a press release. O’Leary Ventures is collaborating with the Municipal District of Greenview to develop the data centre as part of the Greenview Industrial Gateway in northwestern Alberta. The facility is meant to be built on land the Sturgeon Lake Cree Nation shares with the Crown under a treaty agreement, Chief Sheldon Sunshine said in a statement. “Our people are here to remind Mr. O’Leary and Greenview of the international treaty, Treaty No. 8, that allows us all to share this land,” Sunshine said. “There has been no consultation,” he said. “The way they act and talk, it’s as if our land and water is there for the taking and we are expected to get in line to receive the so-called economic benefits.” All projects of this scale require regulatory approvals and, in accordance with the Constitution and Treaty No. 8, they require consultation and accommodation with the Sturgeon Lake Cree Nation when they impact or could impact their traditional territory, Sunshine said. The Energy Mix

Las Vegas, Nevada-based Gryphon Digital Mining has signed an agreement to acquire a 344-hectare industrial site south of Pincher Creek, about 175 kilometres southwest of Calgary, that’s owned by Captus Generation, a subsidiary of Calgary-based BTG Energy. The U.S. company plans to use natural gas to power an AI and high-performance computing data centre. Gryphon scoured North America for a couple of months before finding the site, which sits above a depleted natural gas reservoir that can be used to sequester carbon emissions. Gryphon has an experienced technical team, led by Captus CEO Harry Andersen, former chief operating officer of Pembina Pipeline, working on the project. After the sale closes around April, Gryphon will need to go through a regulatory process. By the end of 2026, Gryphon hopes to bring online its first 100 or so megawatts of power and plans to add a significant amount of power every quarter after that. Calgary Herald

Two Canadian companies that received funding from the Canadian Space Agency (CSA) will demonstrate their technologies during Texas-based Firefly Aerospace’s Blue Ghost Mission 1, which launched on a Falcon 9 rocket on January 15. The technologies are Canadensys’ 360-degree imaging system on the Blue Ghost lander and NGC Aeropsace’s global lunar navigation system. The Blue Ghost lunar lander has a target lunar landing date of March 2, 2025. Humans are going back to the Moon with long-term exploration goals. To achieve this, innovative technologies are needed that will allow people to live and work on the lunar surface. The CSA, through its Lunar Exploration Accelerator Program, helps accelerate the development of new lunar technologies, which will contribute to Canada's competitive advantage in space. CSA

Two Canadian teams were among the 10 winning teams globally in NASA’s 2024 International Space Apps Challenge. The Canadian teams were Western University’s WMPGang and the University of Regina’s Asteroid Destroyer. The WMPGang participated in the Waterloo event and won in the “Best Use of Science” category. Their SkyShield app identified near-Earth object threats and satellite collision risk zones. Using real-time data, their web application was designed to help protect Earth and satellites from potential space hazards. The Asteroid Destroyer team participated in the Saskatoon event and won in the “Global Connection” category. Their winning project analyzed exoplanets using machine learning and other data-processing techniques. The project aimed to support the Habitable Worlds Observatory by mapping exoplanets based on features like size, temperature and distance. Canadian participation in the Space Apps Challenge broke records, with 17 Canadian cities and 1,862 participants across the country. 2024 NASA International Space Apps Challenge

The Bank of Montreal, TD Bank Group, CIBC and the National Bank all quit the United Nations-backed Net Zero Banking Alliance (NZBA), just a couple of days before president-elect Donald Trump’s inauguration. The Bank of Nova Scotia also left the NZBA on January 20, the day of Trump's inauguration. In leaving the alliance, the Canadian lenders follow the largest U.S. banks to bail on the organization against a backdrop of legal and antitrust worries, especially in the U.S. In a statement, BMO spokesman Jeff Roman said that despite its exit from the NZBA, the bank is still committed to meeting its climate targets and helping clients with their decarbonization goals. “We have robust internal capabilities to implement relevant international standards, supporting our climate strategy and meeting regulatory requirements,” Roman said. The exodus of North American banks from the NZBA raises questions about its future as an organization designed to marshal massive funds needed for the shift to low-carbon economies. Financial Post

Belgrade, Serbia-headquartered Asteroid Energy opened a new research and development associate office in Vancouver. The office will focus on the research, development and extraction of rare earth metals, a critical  innovation area for the company. The expansion aligns with Asteroid Energy's mission to revolutionize the mining industry using advanced technologies to tap into the vast reserves of rare earth metals. The new Canadian office will focus on several key research areas, including the development of advanced mining systems, resource extraction techniques, and the processing of rare earth metals such as neodymium, lanthanum and dysprosium. These metals are essential for the manufacturing of electric vehicles, wind turbines, smartphones and a wide range of electronic devices. In addition to conducting technical research, the Vancouver office will also foster partnerships with Canadian academic institutions, government agencies and private sector organizations. Asteroid Energy

San Francisco-based AI developer OpenAI is calling for U.S. governments to speed up permitting and provide financing for data centres and power projects in designated parts of the country. In the company’s newly published “economic blueprint,” OpenAI also said the U.S. should form a network of countries with shared security rules to invest in AI infrastructure and set international standards for how the technology is used. “Chips, data, energy and talent are the keys to winning on AI – and this is a race America can and must win,” the company said. There is an estimated US$175 billion in global funds waiting to be invested in AI infrastructure, OpenAI noted. “If the U.S. doesn't move fast to channel these resources into projects that support democratic AI ecosystems around the world, the funds will flow to projects backed and shaped by the CCP (Chinese Communist Party).” OpenAI calls for a free market promoting free and fair competition that drives innovation. AI developers and users should have the freedom to work with and direct AI tools as they see fit, “in exchange for following clear, common-sense standards that help keep AI safe for everyone, and being held accountable when they don’t.” U.S. President Donald Trump has named David Sacks, former chief operating officer of PayPal, as his “White House AI & Crypto Czar.” OpenAI

The U.S. Supreme Court unanimously upheld a law that would ban the social media platform TikTok on app stores and web hosting services effective January 19, unless its Chinese parent company ByteDance sells it. In a ruling, the Supreme Court acknowledged Congress’s “well-supported” national security concerns about TikTok’s relationship with China and said a ban would not violate the U.S. Constitution’s First Amendment protection of freedom of speech. The app can remain on American users’ phones, but new users won’t be able to download it and updates won’t be available. TikTok has claimed the ban will cost small businesses more than US$1 billion in revenue and creators almost US$300 million in lost earnings in one month. Trump said in a post on Truth Social he would issue an executive order on January 20 following his inauguration to delay the federal ban on TikTok until a deal can be worked out to protect U.S. national security. Shortly after Trump's post, TikTok started restoring service to U.S. users. CTV News

The Government of the United Kingdom launched its AI plan which includes dedicated AI Growth Zones to speed up planning and permission for AI infrastructure. The first zone will be  in Culham, Oxfordshire – home to the U.K.’s Atomic Energy Authority. In a marked move from the previous government’s approach, Prime Minister Keir Starmer agreed to take forward all 50 recommendations set out by Matt Clifford, chair of the U.K.’s Advanced Research and Invention Agency, in his AI Opportunities Action Plan. Clifford also has been appointed as advisor to the PM on AI opportunities. The government’s plan includes building a new supercomputer and increasing compute capacity by 20-fold by 2030. A new digital centre of government will be established within the Department for Science, Innovation and Technology, and a National Data Library will be created to safely and securely unlock the value of public data and support AI development. Also, a dedicated AI Energy Council, chaired by the Science and Energy Secretaries, will be established, working with energy companies to understand the energy demands and challenges that will fuel the technology’s development. The International Monetary Fund estimates that if AI is fully embraced, it can boost productivity by as much as 1.5 percentage points a year. If fully realized, these gains could be worth up to an average  £47 billion to the U.K. each year over a decade, the U.K. government said. The plan comes as three major tech companies– Vantage Data Centres, Nscale and Kyndryl – have committed £14 billion investment in the U.K. to build the AI infrastructure the nation needs to harness the potential of AI technology and deliver 13,250 jobs across the U.K. Govt. of U.K.

Apple and Amazon have successfully fought off a class action lawsuit in the U.K. over alleged collusion between the tech giants to remove resellers of new Apple products from Amazon's website. The lawsuit was brought by consumer law academic Christine Riefa on behalf of around 36 million British consumers who had bought Apple or Beats products. Riefa's lawyers alleged that Apple and Amazon reached an agreement in 2018 to bar the vast majority of resellers of Apple and Beats-branded products from Amazon's marketplace in the U.K., reducing competition for those products. Apple and Amazon said the case, valued at £494 million (US$602 million) plus interest, was without merit and asked the Competition Appeal Tribunal to refuse to let it proceed. The tribunal, in refusing to certify the case, ruled that the case could not continue because Riefa had not demonstrated "sufficient independence or robustness" to represent the claimant class, in relation to third-party funding for the litigation. Reuters

VC, PRIVATE INVESTMENT & ACQUISITIONS

Toronto-based health care platform League secured a US$100-million credit facility with RBCx, the technology and innovation arm of the Royal Bank of Canada. This financing deal will support League’s continued investments in platform development, sales capacity and potential mergers and acquisitions, the company said. League offers a health care consumer experience platform that allows users to navigate their coverage and claims, participate in rewards programs, and integrate third-party health apps. RBCx

Calgary-based The51, which invests in women-led and gender-diverse businesses, closed its $51-million The51Food and AgTech Fund, with financial support from Alberta Crown corporation ATB Financial. The amount of support wasn’t disclosed. The early-stage venture fund is dedicated to investing in diverse science and technology founders who are transforming agriculture. The fund has already invested in six companies to date, including Erthos in Mississauga, Ont., ArkeaBio in Calgary, and Synergia Biotech in Calgary. The51 Food and AgTech Fund recognizes the vital role of deep science and advanced technology in addressing agricultural issues, from enhancing crop yields and soil health to minimizing environmental impact and improving the efficiency of the global food supply chain, The51 said. Canada Newswire

Vancouver-headquartered Moment Energy raised US$15 million in a Series A round co-led by Amazon’s Climate Pledge Fund and Voyager Ventures, with participation from Version One Ventures among other investors. Moment will use the capital to develop its technology and fund construction of a new gigafactory in Taylor, Texas, to repurpose used electric vehicle batteries in energy storage systems for non-automotive settings such as offices, data centres and industrial facilities. The U.S. Department of Energy has granted the firm US$20.3 million for its new Texas facility, designed to produce one gigawatt-hour worth of batteries every year at full capacity. Moment Energy

Alberta Enterprise Corporation (AEC) invested $10 million into Luge Capital's $93-million Fund II. The investment gives emerging Alberta fintech startups the opportunity to access capital and growth support from a team dedicated to building global fintech leaders. Luge is also establishing a full-time presence in Alberta by hiring experienced investment manager Chelsea Gillett. Luge has already invested in two Alberta fintechs: Edmonton-based HonestDoor and Calgary-based OneVest. Luge Capital is an early-stage, fintech-focused venture capital firm with approximately $180 million under management across two funds. Luge leverages deep domain expertise and extensive industry insights to back the most promising fintech companies in Canada and the U.S. AEC

Montreal-based software startup Vasco secured US$8 million in an all-equity seed financing round led by Inovia Capital, with participation from Framework Venture Partners, BY Venture Partners and angel investors. Vasco said the funding will empower the company to accelerate product innovation, expand its global reach, and enhance AI-driven capabilities to help business-to-business (B2B) revenue teams achieve predictable, sustainable growth. Vasco’s clients use the company’s software to pull in and analyze data from all the specialized tools that their sales, marketing and customer service teams use. The firm’s AI system can identify what kinds of customers a B2B firm should target, where it might be missing opportunities to grow revenue, and what campaigns aren’t hitting. Vasco

Toronto-based Boardy AI raised US$8 million in a seed round led by Stockholm-based Creandum, with participation from existing backer Garage Capital, angel investors including ex-Bonobos CEO Andy Dunn, and founder and ex-CEO of TaskRabbit Leah Solivan. Boardy’s CEO is Andrew D’Souza, who previously co-founded and led e-commerce funding firm Clearco. Boardy’s technology adds AI to the networking process, fielding introductory calls from users and then connecting them to others with shared interests. TechCrunch

Toronto-based Enhanced Medical Nutrition (EMN) raised US$5 million in a Series A financing round by dsm-firmenich Venturing and the corporate venture capital arm of Ajinomoto Co., Inc. with participation from PeakBridge, Elder Ventures, angel investors and existing shareholders. EMN said the funds will be allocated to scale the company’s expansion of ENROUTE^®, an innovative nutrition program designed for the dietary management of surgery. By addressing the importance of nutritional requirements for patients undergoing surgical procedures, EMN is a food-as-medicine company that commercializes novel, evidence-based medical nutrition products to improve outcomes in surgery. EMN is a member of Natural Products Canada. EMN

Toronto-based Borderless AI raised US$5 million in a seed round extension backed by Cohere co-founders Aidan Gomez and Ivan Zhang. Borderless, led by CEO Willson Cross, develops AI tools to automate onboarding and paperwork for remote international hires. Now available in Canada and California, the company also launched HRGPT, a free tool for handling human resources inquiries and tasks. HR teams can use HRGPT for essential tasks like generating employment agreements, creating job descriptions and compensation benchmarking. Initially built on Cohere’s language models, Borderless now uses multiple AI providers. Borderless AI

Toronto-based Lyteflo secured $3 million in a seed funding round led by Diagram, with participation from Whitecap Venture Partners and Amplify Capital. Founded by CEO Ryan Osten and chief technology officer Dominick Rivard, Lyteflo integrates into dealership websites to help auto dealers move their electric vehicle inventory faster and appraise EV batteries with precision, offering a one-stop shop to help dealerships win the electric future. Lyteflo’s EV Revenue Platform consists of a suite of tools that provides information such as fuel and maintenance savings, state, federal and local tax incentives, a charger and trip planner, personalized ownership reports and EV data enrichment. BusinessWire

Santa Clara, California-based chip manufacturer Intel Corporation announced it will separate Intel Capital, its global venture capital arm, into a standalone fund. The new fund will bring Intel Capital’s corporate structure into alignment with other leading venture firms, enabling greater autonomy and the flexibility to attract external capital, Intel said. Intel will remain an anchor investor in the new company. Standalone operations are expected to begin in the second half of 2025, at which time Intel Capital will operate under a new name. The existing Intel Capital team will move to the new company and business operations will continue as normal throughout the transition. Intel Capital’s Canadian investments include chipmaker Untether AI, connectivity startup RouteThis and AI developer Element AI (acquired by California-based ServiceNow). Intel

Kitchener-Wateroo, Ontario-based workforce training platform Uvaro acquired Toronto-headquartered tech education company Lighthouse Labs for an undisclosed amount. The acquisition creates a national platform and network that provides individuals, businesses and communities with the in-demand skills and tools to thrive in a fast-changing economy, Uvaro said. The company said the acquisition is a strategic move that aligns with wider job market trends, including the federal government’s launch of AI-focused programming and investments in a digitally skilled workforce. Lighthouse will operate as a Uvaro subsidiary under the leadership of CEO Jeremy Shaki, who will also become Uvaro’s chief revenue officer. Uvaro

REPORTS & POLICIES

Canada needs new domestic supply chain routes and should consider expanded trade corridors: Standing Committee report

The federal government should establish new domestic supply chain routes and reduce the reliance on rail- and truck-based shipping by exploring options for short-distance shipping by water, according to a report by the House of Commons Standing Committee on International Trade.

Ottawa also should enhance its efforts to ensure there is adequate and well-maintained trade-related infrastructure in Canada and consider whether additional or expanded trade corridors would be beneficial, said the report, Canada’s Supply Chains and Expanded International Trade: Challenges and Measures.

The 12-member committee’s report was chaired by Judy A. Sgro, Liberal MP for Humber River-Black Creek, Ontario.

According to Statistics Canada, in 2023 the country’s top five export markets for services trade were: the United States, at $104.6 billion; India ($10.1 billion); the United Kingdom ($8.9 billion); China ($7.3 billion); and France ($5.5 billion), the report said.

According to Innovation, Science and Economic Development Canada, in 2023 Canada’s top five export markets for merchandise trade were: the United States, at $594.7 billion; China ($30.5 billion); Japan ($15.8 billion); the United Kingdom, ($15.2 billion); and Mexico, ($8.8 billion).

Global Affairs Canada’s State of Trade 2024 states that, in that year, Canada’s five highest-valued merchandise exports were energy products, motor vehicles and parts, metal and non-metallic mineral products, consumer goods, and industrial machinery, equipment and parts.

Witnesses told the standing committee that factors that negatively affect Canada’s supply chains include: trade-related infrastructure, both generally and in relation to specific transportation modes and regions; regulations; labour-related actions, including work stoppages, issues in specific sectors, and forced and child labour; and climate change-induced disasters.

When it comes to regulations, L'Institut de recherche en économie contemporaine asserted that disparities in product quality and safety standards among Canada’s trading partners can lead to some of “the most significant distortions in the functioning of supply chains.”

The Canadian Chamber of Commerce characterized “increased red tape and differing certification and technical standards” as major challenges for supply chains.

According to the Western Grain Elevator Association, Canada’s regulatory frameworks are “unnecessarily rigid, redundant, [and] antiquated,” and they limit commercial investments to improve supply chains.

The Canadian International Freight Forwarders Association contended that work stoppages at Canada’s ports and railways are “a chronic problem” that affects the country’s reputation as a reliable trading partner.

In the Western Grain Elevator Association’s opinion, those stoppages are “hampering Canada’s ability to reliably deliver to customers,” with even short disruptions of supply chains affecting  product availability and price.

As for investment, the Canadian Manufacturers & Exporters claimed that government investments in transportation- and trade-enabling infrastructure “have been made sporadically rather than on a sustained and strategic basis.”

Like the Canadian Chamber of Commerce, the Canadian Manufacturers & Exporters supported the proposal made by certain trade associations for the development of a federal investment strategy for trade-related infrastructure that is both integrated and long term.

The Arctic Gateway Group suggested that increased funding to expand the Port of Churchill is “essential” if Canadian firms are to have a reliable Arctic trade corridor. The group argued that the Port of Churchill provides “a critical gateway” to the Arctic, and can play a significant role in diversifying and de-risking Canada’s supply chains.

Naviga Supply Chain Inc. advocated for a national reindustrialization strategy to coordinate and prioritize efforts to design supply chains that would support business productivity.

Witnesses identified some challenges experienced when seeking to expand Canada’s international trade, including: trade agreements, non-tariff barriers to trade and protectionism; regulations, taxes and other costs; and knowledge, expertise and federal measures.

Export Development Canada (EDC) officials characterized the energy and agri-food sectors as “sectors of opportunity” for international trade because of global concerns about energy security and food security.

They stated that in 2023 Export Development Canada facilitated record values of exports and foreign investment, as well as trade development activities, for Canadian firms in the clean technology sector. EDC officials also underlined other priority sectors, including advanced manufacturing and digital industries.

Global Affairs Canada officials stated that Canada is on track to achieve the National Trade Diversification Strategy’s goal: by 2025, the value of Canada’s goods and services exports to foreign markets other than the U.S. should be 50 percent higher than the value in 2017.

Other recommendations in the standing committee’s report include that the federal government:

• continue its collaboration with provincial and territorial governments, as well as with other relevant parties, with the goal of identifying and addressing both existing and expected future challenges relating to Canada’s supply chains.
• take actions designed to increase the value of Canada’s international trade. These actions could include enhancing further the international competitiveness of Canadian firms, as well as ensuring that the country’s firms are adequately and appropriately supported in their efforts to export to foreign markets. In taking these and other trade-related actions, the government should continue to prioritize sectors with high potential to expand their exports.
• ease congestion at Canada’s major ports of entry, enable supply chain redundancy and reduce emissions from rail- and truck-based shipping by shortening land shipping distances through establishing a permanent Canada Border Services Agency presence at additional commercial ports of entry. In this regard, the government should consider such a permanent presence at such smaller ports of entry as Hamilton-Oshawa, Picton, Port Alberni, Quebec City and Salaberry-deValleyfield.
• improve the performance of Canada’s ports by accelerating efforts to implement a fully digitized Maritime Single Window, which became mandatory on January 1, 2024 under the terms of the International Maritime Organization’s Convention on Facilitation of International Maritime Traffic, to which Canada is a signatory.
• continue with and enhance its collaborative efforts with Canada’s trade partners designed to harmonize rules and technical standards that regulate parties involved in similar supply chains. In this regard, the government should prioritize the agricultural and transportation sectors.
• recognize the right to freedom of association that is enshrined in the Constitution Act, 1982 and the right to engage in work stoppages that is legislated throughout Canada. Moreover, the government should affirm the rights of employees and employers to engage in a strike or lockout, respectively, notwithstanding the impacts of labour disruptions on supply chains. Standing Committee on International Trade

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Canada needs a national supply chain strategy, say C.D. Howe Institute researchers

Canada needs a comprehensive national supply chain strategy that recognizes supply chains’ vital role in the nation’s prosperity, de-risks chokepoints and fortifies Canada’s position within the critical supply chains that serve the country’s major trading partners, according to researchers at the C.D. Howe Institute.

Canada’s supply chain woes have emerged from multiple fronts, Ari Van Assche, fellow-in-residence with the institute and co-director of the International Institute for Economic Diplomacy at HEC Montréal, and Daniel Schwanen, senior vice-president at the C.D. Howe Institute, wrote in a brief.

COVID-19 starkly exposed how breakdowns in distant parts of the supply chain can quickly lead to crippling goods shortages in the Canadian market, they said.

Geopolitical tensions, such as the U.S.-China trade war and U.S. President Donald Trump’s tariff threat have further complicated supply chain dynamics, compelling businesses to adapt and reconfigure their operations – sometimes through friendshoring and reshoring – to maintain efficiency and competitiveness.

Domestically, infrastructure issues and due diligence legislations have compounded these supply chain challenges, the authors said.

Canada’s vast geography and reliance on a limited number of transportation corridors make the country particularly susceptible to disruptions. Rail blockades, port strikes and extreme weather events have all contributed to significant supply chain disruptions that have increased costs for Canadian businesses.

Laws such as Canada’s modern slavery act, while necessary, have added further complexity, mandating companies to take concrete steps to “know their suppliers” to prevent human rights and environmental violations within their supply chains.

“In the face of such persistent challenges, it is imperative for Canada to develop a comprehensive supply chain strategy that can strengthen the efficiency and resiliency of its supply chains,” Van Assche and Schwanen said.

“The stakes are high – Canada’s prosperity depends on it. Well-functioning supply chains are key for tackling issues such as affordability, productivity and security, which are essential for improving the standard of living for all Canadians.”

The cornerstone of Canada’s supply chain strategy must be to invest in and support the formation of open, diverse, reliable and socially responsible international supply chains, the authors said.

For most products, the globalized nature of supply chains is a boon for Canada’s prosperity, they noted.

“To further streamline them, we must take concrete actions to facilitate trade both within and across Canadian borders, invest in our aging transportation infrastructure and develop robust traceability standards that can improve our firms’ global supply chain mapping capabilities.”

De-risking supply chains is vital in strategic industries that are central to Canada’s economic stability, the authors argued.

To safeguard these sectors from supply chain disruptions, Canada needs an integrated, data-driven approach to its supply chain strategy, they said.

The strategy would identify strategic sectors vital to Canada’s national interests, monitor potential chokepoints within their associated supply chains and determine preferred risk-mitigation strategies. This could include diversifying Canada’s supplier base, investing in domestic production capabilities, and forging stronger international partnerships.

A similar data-driven approach would pinpoint Canada’s strongpoints within the critical supply chains that support the country’s major trading partners, Van Assche and Schwanen said.

They pointed out that, “By understanding the importance of Canadian products in the supply chains that serve the United States, China and others such as critical minerals, energy resources, medical technology and automotive components, we can better withstand tariff threats and shape our strategic engagements with these nations.”

Investing in these strongpoints not only boosts Canada’s economic resilience but also strengthens the country’s position in the global market, they added.

Canada’s supply chains are at a crossroads, the authors warned. The Canadian government, by adopting a comprehensive supply chain strategy, would not only stabilize the current trade environment but also position Canada as a resilient and competitive player in the global market, the C.D. Howe Institute authors said.

“The time for action is now, and with the right strategy Canada can boost its chances for a prosperous economic future.” C.D. Howe Institute

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Primary metals, food and beverage manufacturing, chemicals, machinery and aerospace are likely to be hardest hit by U.S. tariffs: Desjardins report

Canada’s primary metals (including aluminum), food and beverage manufacturing, chemicals, machinery and aerospace are likely to be most affected by potential U.S. tariffs, according to a report by Desjardins Securities.

The wood, pulp and paper, non-ferrous metals and plastics industries also could be hit hard by tariffs, the report says.

The transportation and wholesale trade sectors also would suffer significant indirect effects from potential tariffs, as would agriculture, fishing and forestry.

“Tariffs are more likely to be imposed in sectors where the U.S. has access to substitutes to meet its needs. This is particularly the case in several subsectors of manufacturing and mining, as well as livestock and fishing,” the report says.

Industries less exposed to trade should fare better, including many service sectors. However, they could  still experience ripple effects of any tariff-induced economic slowdown.

The report, by Florence Jean-Jacobs, principal economist at Desjardins, weighted the impact of tariffs according to Desjardins’ estimate of the likelihood of tariffs being imposed on a given industry.

“For example, we believe that the energy and automotive sectors are likely to benefit from tariff exemptions, though there’s still a lot of uncertainty around that,” the report says.

However, such exemptions are unlikely for other sectors where Americans have access to alternative suppliers (both foreign and domestic), according to the report.

Alberta Premier Danielle Smith, who met with president-elect Donald Trump prior to his inauguration on January 20, said she didn’t think Alberta’s oil and natural gas would be exempted from tariffs.

Jean-Jacobs’s report says Trump’s previous announcements suggested that implementing 10-percent tariffs would be part of his first actions as president.

Shortly following Trump's inauguration on January 20, a Trump administration official told Reuters that the president will hold off on the tariffs for now and instead direct agencies in a memo to "investigate and remedy persistent trade deficits and address unfair trade and currency policies by other nations." The memo will single out China, Canada and Mexico for scrutiny, the official said.

However, in the evening of January 20, Trump told reporters that he's thinking of implementing 25-percent tariffs on Mexico and Canada on February 1 and is proceeding with creating an External Revenue Agency to collect the tariffs.

Canada’s oil extraction and auto and parts manufacturing sectors are the most dependent on exports to the U.S. But Desjardins doesn’t believe they’re the most at risk under the new Trump administration.

In the case of crude oil, U.S. production is insufficient to meet U.S. domestic needs, the report notes. Also, with imports from Canada representing 58 percent of U.S. oil imports, tariffs risk significantly raising prices, which would run counter to Trump’s promises to reduce energy prices.

In the case of automotive manufacturing, the U.S. industry is highly reliant on Canada and Mexico. The North American auto industry is particularly integrated, with over 50 percent of Canada-U.S. trade involving parent companies, one-third of U.S. supply directly dependent on imports, plus one-fifth of U.S. production relying on imported intermediary inputs.

In the case of primary metals (including aluminum), more than 50 percent of domestic production, or more than $16 billion, depends directly on U.S. demand.

In the transportation equipment industry, exports to the U.S. account for about 22 percent of Quebec manufacturers’ sales (33 percent for aerospace specifically).

From the point of view of American multinational corporations with operations in Canada, import tariffs would entail significant costs – especially since more than half of the total value of Canada’s exports to the U.S. involves related companies, meaning the exporter and importer have a common owner. For example, half of the pickup trucks sold by General Motors in the U.S. are actually imported from its plants in Canada or Mexico.

When it comes to individual U.S. states, Canada is the largest supplier of imports for almost half of them (23 out of 50). For states such as Montana, Maine and Vermont, which get more than two-thirds of their imports from Canada, “the impact of tariffs would be significant.”

Crude oil and motor vehicles and parts are the main products imported by U.S. states, as are petroleum products, aircraft products and parts, aluminum and nonferrous metals.

U.S. dependence on imported inputs is particularly pronounced in three industries: automotive manufacturing, petroleum product manufacturing (made from crude oil, particularly from Canada), and primary metals, which depend on imported mined ores. Even industries such as air transportation and construction depend to a considerable extent on imported inputs (fuel, metal and lumber).

However, the report points out that the U.S.’s lower import dependence for certain products makes these products more vulnerable to tariffs. These products include wood and paper products, nonmetallic mineral products (with some exceptions, including potash), non-automotive transportation equipment (including aerospace), and agriculture and agrifood products.

Uranium ore is likely to be exempt from tariffs, as almost all of U.S. demand is met by imports, including 27 percent from Canada, 25 percent from Kazakhstan and 12 percent from Russia, according to the report. Canadian uranium mining is entirely concentrated in Saskatchewan.

Potash, a key ingredient in potash fertilizers used in agriculture, could also be exempted, since it’s used extensively on American farms but isn’t mined in the U.S. and there are few substitution options, the report says. Canadian potash production comes entirely from Saskatchewan.

Considering that the U.S. Department of Defense has invested in Canadian projects to secure access to the critical minerals cobalt and graphite to reduce U.S. dependence on Chinese supplies, it’s likely that Canada would benefit from import tariff exemptions on these two minerals, according to the report.

“Clearly, businesses need to plan ahead as they navigate today’s shifting trade winds and find strategies to mitigate their risks, like boosting interprovincial trade, diversifying exports away from the U.S. and investing in innovation and modernization.” Desjardins

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Over two-thirds of a million Canadians in gig economy doing work through a digital platform: Statistics Canada

About 675,000 Canadians, or 2.3 percent of the population aged 15 to 69, did paid work through a digital platform in the 12 months ending in December 2024 by providing services, renting out accommodation, goods or equipment, or selling goods through websites or apps that coordinated their work activities or managed payments, according to a Statistics Canada (StatsCan) report.

This included 498,000 Canadians who provided services through digital platforms. The most common services included the delivery of food or other goods (266,000 people compared with 278,000 in 2023), personal transport (154,000 people compared with 135,000 in 2023), and the creation of content, such as videos or podcasts (39,000 people).

In addition, 54,000 Canadians rented out accommodation through a digital platform and performed work as part of their rental activity in 2024, while 141,000 sold goods to earn income using platforms that coordinated their work activities or managed payments.

Larger proportions of South Asian (5.2 percent), Black (4.3 percent), and Chinese Canadians (3.1 percent) did paid work through a digital platform, compared with Canadians who were not racialized or Indigenous (1.6 percent).

In addition, immigrants who were admitted to Canada in the previous five years were more than three times more likely (5.8 percent) to have done paid work through a digital platform compared with persons born in Canada (1.6 percent).

Men (2.9 percent) were also more likely than women (1.7 percent) to have done paid work through a digital platform in 2024.

StatsCan also reported that in 2024, around 1.8 million people, representing 8.8 percent of Canada’s total employment, worked in industries where 35 percent or more of jobs depended on U.S. demand for Canadian exports.

Industries with the highest proportion of employment dependent on U.S. demand included oil and gas extraction (74.3 percent), pipeline transportation (71.7 percent), primary metal manufacturing (60.8 percent) and transportation equipment manufacturing (56 percent).

Those industries, jobs and communities will be the most exposed if U.S. President Donald Trump follows through on his threat to impose a tariff of up to 25 percent on goods imported from Canada into the U.S., StatsCan said.

Among economic regions in 2024, Wood Buffalo-Cold Lake, Alberta (where the province’s oilsands industry is located) had the highest share of employment in industries dependent on American demand for Canadian exports (22.8 percent).

Other economic regions with above-average proportions of employment in these industries in 2024 included Centre-du-Québec (17.8 percent), Edmundston-Woodstock, New Brunswick (17.3 percent), Southern Nova Scotia (17.3 percent), Banff-Jasper-Rocky Mountain House and Athabasca-Grande Prairie-Peace River, Alberta (16.7 percent) and Windsor-Sarnia, Ontario (15.4 percent).

In 2024, workers with a high school diploma or a lower level of education (11 percent) and those with post-secondary education below a bachelor's degree (9.4 percent) were more likely to work in industries dependent on American demand for Canadian exports compared with those with a bachelor's degree or a higher level of education (6.7 percent).

Men (12.5 percent; 1.3 million workers) were also more likely to work in these industries than women (4.7 percent; 455,000).

Employment in industries dependent on U.S. demand for Canadian exports tends to pay above-average wages. In 2024, the average hourly wage of employees working in these industries was $37.24, 6.5 percent higher than for employees in other industries ($34.97). Statistics Canada

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Governments need to improve and better coordinate assistance for communities susceptible to workforce disruption due to energy transition: IRPP report

Nearly 10 percent of the Canadian population lives in 68 communities that are susceptible to workforce disruption as Canada and the world reduce greenhouse gas emissions, according to a policy report by the Institute for Research on Public Policy (IRPP).

Workforce disruption can be driven by investments in new technologies, a decline in certain industries or growth in new opportunity sectors. Such disruption may be beneficial to some communities in the long run, but support will still be needed to manage the transformation, the report says.

The report, Empowering Community-Led Transformation Strategies, was authored by Rachel Samson, IRPP’s vice-president of research, research associate Abigail Jackson, and lead data analyst Ricardo Chejfec.

The report is part of the IRPP’s new Community Transformations Project, designed to provide Canadian communities with tools and knowledge to help them navigate changes that will unfold over the coming years.

The project so far includes community profiles of Estavan, Saskatchewan and Ingersoll, Ontario, susceptibility analysis (including an interactive map) and the new policy report.

“Susceptible communities may ultimately come out ahead, with a stronger economy and more skilled workforce, but the process of getting from here to there can be painful,” Samson said in a statement. “There are things governments can do to improve the resilience of communities and help make transformations easier.”

Susceptible communities have smaller populations (with an average population of 53,000) and are generally more remote and less economically diversified, according to the report.

On average, susceptible communities have economic diversity scores that are 36 percent below those of communities that are not susceptible, based on the Hachman Index developed by U.S. economist Frank Hachman.

The top five sectors affected by each susceptibility challenge include resource-based industries, manufacturing, food production and truck transportation.

Susceptible communities face a range of challenges and opportunities, with unique local assets and circumstances. Some, such as auto manufacturing communities, are already in the process of transformation while others, such as those producing natural gas, may have decades before transformation occurs.

Tailored, community-driven strategies are more likely to succeed than top-down, one-size-fits-all approaches, the IRPP report says.

Existing federal, provincial and territorial economic development programs provide some support, but they are not equipped to guide communities through large-scale economic and societal transformations, the report notes.

Many programs also lack adequate community engagement and do not have a structured approach to consider community needs in decision-making.

For example, of the 137 announced projects supported by the $18.5-billion federal Strategic Innovation Fund (SIF) between 2018 and 2024, only a single project is directly located in a community identified by the IRPP as most susceptible.

When a 30-kilometre commuting buffer is considered, only two SIF-supported projects are located near communities in the most susceptible group.

In another example, the federal Framework to Build a Green Prairie Economy, published in 2023 in response to the legislation, identified a foundational principle of “place-based solutions [that] reflect and adapt to the unique interests, priorities and circumstances of Prairies’ communities.” However, the framework doesn’t commit to any specific measures to accomplish that goal.

In the 2030 Emission Reduction Plan released in 2022, the federal government committed to establishing a $2-billion Futures Fund to support local and regional economic diversification in Alberta, Saskatchewan, and Newfoundland and Labrador.

However, the report points out that there has been no further elaboration on the fund since that time and a focus on only three provinces would miss several communities shown to be susceptible in the IRPP’s analysis.

To reduce community susceptibility and promote lasting resilience, the report recommends:

• Federal, provincial and territorial governments should do more to consider location when evaluating funding for projects and financial incentives for investment.

Similar to the approach taken in the U.S., where “energy communities” were allocated additional funding from Inflation Reduction Act incentives, Canadian governments could establish eligibility criteria for certain communities to receive special consideration and greater incentives for private investment.

For example, the federal Strategic Innovation Fund could favour projects in and around susceptible communities or cover a higher proportion of their project costs. Tax incentives for clean energy and manufacturing could also be more generous for projects in susceptible communities.

• The federal government should expand the mandate and financial resources of Community Futures Organizations in and around susceptible communities.

Federally funded Community Futures Organizations, which are located in communities and governed by community leaders, are well positioned to support community transformations with strategic economic development planning but lack the resources to do so.

With more program funding, the Community Futures Network could be mobilized to deliver enhanced in-community supports and services that help rural businesses and address federal priorities.

• The federal government should establish a Canadian Centre for Community Transformation dedicated to providing information to support communities and the design of government programming.

This centralized hub could be housed within Innovation, Science and Economic Development Canada and collect and provide market analysis, community-level data and case studies that support leading community strategies and effective government support programs.

Future recommendations from IRPP’s Community Transformations Project will consider skills and training needs, adjustments to employment insurance, assistance for major employers and enhanced social supports.

By 2026, the project aims to provide a comprehensive body of research and a suite of analyses, data and recommendations. IRPP

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Cost challenges and over-supply of carbon credits threaten oilsands Pathway Alliance’s $16.5-billion CCS project

The Pathways Alliance oilsands group’s $16.5-billion carbon capture and storage network is threatened by cost challenges with total costs approaching thresholds that threaten the project’s profitability, according to a study by the Institute for Energy Economics and Financial Analysis (IEEFA)

There’s also a risk that the oversupply of carbon emission performance credits will reduce revenues from the planned project, says Mark Kalegha, energy finance analyst at Ohio-based IEEFA and author of the study Financial Risks of Carbon Capture and Storage in Canada.

“Without substantial efficiency improvements, the cost per tonne of CO₂ captured [by] the Pathways facility is likely to exceed the revenue that the project can generate for each tonne captured,” the study says.

The Pathways Alliance plans to capture carbon dioxide generated at 13 oilsands processing facilities, compress the greenhouse gas and send it by a 400-kilometre pipeline to a permanent underground storage hub near the Cold Lake region in Alberta.

The project has a targeted capacity of 10 million to 12 million tonnes of CO₂ per year, which would make it one of the largest carbon capture facilities in the world.

Members of the Pathways Alliance, which include Canadian Natural Resources, Suncor Energy, Cenovus Energy, Imperial Oil, MEG Energy and ConocoPhillips Canada, are responsible for 95 percent of the output from Canada’s oilsands.

Publicly available financial information on the Pathways project “is scant,” Kalegha’s study noted. The levelized cost of carbon for the Pathways project hasn’t been made publicly available, and the Pathways Alliance rejected Kalegha’s request for this information.

So his IEEFA’s study analyzed two existing commercial carbon capture facilities in Alberta – the 240-kilometre Alberta Carbon Trunk Line (ACTL) CO₂ pipeline operated by Wolf Carbon Solutions and Shell Canada Energy’s Quest CCS facility at the company’s oilsands bitumen upgrader near Edmonton, together with current policy and provincial carbon market dynamics.

The findings of Kalegha’s study include:

• Total costs including interest, insurance, depreciation and taxes for existing commercial-scale carbon capture plants in Alberta are approaching thresholds that threaten profitability.
• Rising project costs are not being offset by commensurate increases in CO₂ capture volumes and associated revenue. Operating costs are growing at twice the rate of CO₂ captured volumes.
• CCS operating revenue is uncertain. An effective cap on emission performance credit (EPC) pricing of Cdn$170 per tonne by 2030 limits project revenue potential, while a looming oversupply of carbon EPCs in Alberta (more carbon credits available for sale by facilities, but not enough facilities seeking to buy the credits) is an example of one risk to project cash flows. The option to combine federal Clean Fuel Regulation credits with EPCs is available to ACTL, but this significant financial benefit is not available to the Pathways project because emissions from Pathways members’ carbon capture facilities are byproducts of fuel produced for export, not part of the supply chain of fuel used domestically.

If provincial carbon markets become saturated, the price of EPCs, or carbon credits, will fall accordingly, the study says. This would translate to revenue shortfalls that hamper the ability of CCS projects to cover operating and capital expenses from internally generated cash flow.

• Performance risk is financial risk. Without substantial efficiency improvements, the cost per tonne of CO₂ captured is likely to exceed the revenue that the project can generate for each tonne captured.
• An unprofitable carbon capture project will struggle to bring lasting positive economic benefits to host communities and become dependent on external financial subsidies to maintain operations.

“Even under optimal conditions, the Pathways project may struggle to break even, and real-world operations are rarely optimal,” according to Kalegha’s study.

The federal and Alberta governments have rolled out an array of fiscal incentives and grants aimed at CCS project development – covering everything from research and front-end engineering design to construction and operational costs.

Overall, Ottawa and the Alberta government are providing financial support and incentives that cover close to half of total project expenditures at the large-scale carbon capture projects currently operating in Alberta, the study notes.

However, “large-scale public investment in CCS is misguided,” Kalegha argues. “The technology has struggled to achieve meaningful emissions reductions or prove its long-term viability. The lack of demonstrated success and heightened financial risks indicate public investments are unlikely to yield the desired environmental or economic benefits.”

The study points out that CCS technology has consistently failed to deliver on its promises of high efficiency and numerous projects have failed globally, including the Kemper project in Mississippi and the Peta Nova facility in Texas – both of which were touted as breakthroughs.

Kalegha pointed out that the prospect of negative-to-marginal returns from the Pathways’ project is hardly a magnet for investor capital, and management decisions to invest in sub-optimal projects are unlikely to boost market confidence or win shareholder votes.

“This might explain why – despite near record cash flow and sky-high profits – the oilsands industry continues to lobby government officials for additional financial support for the project.”

Given that CCS projects are very expensive to implement, it is unclear if the value of the captured carbon is high enough to justify the significant costs involved in capturing and managing it, according to Kalegha’s study.

“Public funding of CCS is a costly gamble that may not yield tangible returns on Canada’s journey towards achieving net-zero emissions,” the study says.

Government officials face a choice, Kalegha says. “Subsidize and perhaps over-subsidize the project, or invest in more tenable renewable energy alternatives.”

If the Pathways project goes forward, he says, “the primary emitters (polluters) should bear the financial burden and the risk for pollution prevention.” Institute for Energy Economics and Financial Analysis

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Nearly 50,000 international students with study permits reported as “no-shows” at Canadian colleges and universities

Close to 50,000 international students who received study permits to come to Canada were reported as “no-shows” at the colleges and universities where they were supposed to be taking their courses, according to government figures for two months last spring.

Numbers obtained by The Globe and Mail show that the non-compliant students made up 6.9 percent of the total number of international students recorded by Immigration, Refugees and Citizenship Canada (IRCC).

In total, 49,676 international students enrolled in Canadian colleges and universities apparently failed to adhere to the terms of their visas and turn up to study, according to the IRCC figures. In addition to that, colleges and universities failed to report on the status of a further 23,514 international students – representing 3.3 percent in the IRCC records.

Universities and colleges are required by the immigration department to report twice a year on whether international students are enrolled and going to class in compliance with their study permits.

The International Student Compliance Regime, implemented in 2014, was designed to help spot bogus students and assist provinces in identifying questionable schools.

In March and April of 2024, colleges and universities reported to IRCC on students from 144 countries. The top 10 countries of student origin with the greatest number of “no-shows” that spring had widely ranging non-compliance rates.

They included 2.2 percent for the Philippines (representing 688 no-show students); 6.4 percent for China (4,279 no-shows); 11.6 percent for Iran (1,848 no-shows); and 48.1 percent for Rwanda (802 no-shows).

Of the total no-shows, almost 20,000 from India – 5.4 percent of the total number of Indian students tracked by IRCC – were reported as non-compliant with their student visas and not attending schools where they were meant to be studying.

Henry Lotin, a former federal economist and expert on immigration, said one way to dampen abuse of the system would be to require international students to pay fees upfront before coming to Canada.

“Canada has seen an increase in exploitation of its temporary resident visas, including students. What was once a low-risk temporary resident program is now being assessed as higher-risk given changes to the global migration context, including the growing number of conflicts and crises, increased abuse and fraud, and increased organized smuggling,” said Renée LeBlanc Proctor, spokesperson for Immigration Minister Marc Miller. The Globe and Mail

THE GRAPEVINE – News about people, institutions and communities

Prime Minister Justin Trudeau appointed an 18-member Council on Canada-U.S. Relations comprised of leaders in business, innovation and policy. The council will support the PM and the federal cabinet in responding to U.S. President Donald Trump’s threat of tariffs. The members include: former Quebec premier Jean Charest; former Alberta premier Rachel Notley; former Nova Scotia premier Stephen McNeil; business leaders such as Tabatha Bull, president and CEO of the Canadian Council for Indigenous Business, and Tim Gitzel, CEO of uranium company Cameco; labour leaders including Unifor president Lana Payne; tech CEOs including Shahrzad Rafati, CEO of Vancouver-based media tech firm RHEI; Dragon’s Den investors Wes Hall, founder of Toronto-based private equity firm WeShall Investments, and Arlene Dickinson, CEO of Venturepark and the managing general partner of Toronto-based District Ventures Capital; Kirsten Hillman, Canada’s ambassador to the U.S.; and David MacNaughton, Canada’s former ambassador to the U.S. PMO

The Government of Ontario appointed Nevin McDougall as chair of Crown corporation Agricultural Research and Innovation Ontario (ARIO), effective January 18, 2025. McDougall’s leadership will strengthen ARIO’s support of research and innovation across Ontario’s nearly $51- billion agri-food sector, while accelerating the agency’s efforts to promote more commercialization of cutting-edge technologies, the government said. He succeeds Lorne Hepworth who has served as chair since 2019. McDougall brings experience as an accomplished business executive, entrepreneur and private investor with 30 years of experience in industry-leading, innovative agribusiness organizations. Govt. of Ontario

Nivatha Balendra, who founded Montreal-based Dispersa, was named to Forbes’ Top 30 under 30 list for Dispersa’s pursuit of cleaner, greener, bio-based chemicals. Dispersa transforms food waste into sustainable alternatives to the petroleum-based surfactants that dominate a $60-billion market that includes cosmetics, cleaning products and more. The company has raised around $6 million in both equity and non-dilutive capital and expects $2 million in revenue this year. Dispersa is a member of Natural Products Canada. Forbes

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 Telesat Government Solutions, the wholly-owned subsidiary of Telesat in the U.S., named Charles “Chuck” Cynamon as its new president. Telesat Government Solutions focuses on U.S. government civil, military and intelligence sectors. Cynamon brings nearly four decades of experience with him including 24 years in the U.S. Air Force. He has spent over the last 10 years working in industry including two years at MDA Information Systems LLC. Cynamon most recently was senior vice-president at LinQuest Corporation. Telesat also announced that Michel Forest will be Telesat’s new chief technology officer following the retirement of David Wendling at the end of February 2025. Forest will report to Dan Goldberg, Telesat’s president and CEO, and oversee Telesat’s satellite operations, satellite and systems engineering, launch activities and program management. Forest served most recently as Telesat’s vice-president of LEO System Engineering, leading the end-to-end architecture and system performance of the advanced Telesat Lightspeed constellation. Telesat Government Solutions

Ottawa-based e-commerce software firm Shopify hired executives Ray Reddy and Larry Stinson and key R&D staff from Toronto-based takeout app company Ritual Technologies Inc. Reddy, who will become vice-president of retail working on Shopify’s point-of-sale product, said on LinkedIn that Ritual would continue to operate under new leadership and that he would remain a board member and adviser. Ritual was once one of Canada’s fastest-growing technology companies. By late 2019, the food-takeout app provider’s revenues topped US$50 million and it was valued at more than US$300 million. Then the COVID-19 pandemic hit and its core office worker customers stayed home. Revenues collapsed and Ritual never recovered. The Globe and Mail

Raymond Chun will be appointed group president and CEO of TD Bank on February 1, 2025, accelerating the previously announced transition date of April 10, 2025. Upon Chun's appointment, Bharat Masrani will retire as group president and CEO and from the board of directors. Masrani will remain available to TD in an advisory capacity until July 31, 2025; during the transition, he will provide continuity on TD’s critical Anti-Money Laundering remediation effort. Six directors are leaving the bank’s board; five will step down in April, while chair Alan MacGibbon will retire as director at the end of 2025. The bank also slashed a total of $30 million in bonuses for 41 executives, including many no longer with the bank, “to reflect the seriousness” of its U.S. anti-money laundering failures. The C-suite overhaul follows TD’s guilty plea in October to anti-money laundering failures, resulting in a US$3-billion penalty and an asset cap restricting its U.S. retail division from issuing new loans. TD Bank

Jamie Anderson, former general counsel for the operator of the Canadian Securities Exchange, is suing CNSX Markets for wrongful dismissal, alleging abusive treatment by CEO Richard Carleton. The company denies the allegations. Anderson was dismissed without cause in May, 2022 from his position as general counsel and corporate secretary for CNSX Markets, the operator of the Canadian Securities Exchange. According to a statement of claim filed in June, 2024 and reviewed by The Globe and Mail, Anderson is seeking more than $2 million in compensation for wrongful dismissal as well as the company’s “failure to properly carry out an investigation into complaints of harassment, bullying and a toxic work environment.” The Globe and Mail

Ottawa-based Algonquin College’s board of directors at a February 24 meeting will consider a recommendation to close its Perth Campus. The college is facing a projected $32-million loss in the current fiscal year, resulting from a federal government cap on international students and  provincial funding shortfalls, Claude Brulé, president and CEO of Algonquin College, said in a letter. As part of Algonquin’s mitigation measures, the board will consider closing the Perth Campus by the end of August 2026. If the campus is closed, its programming will be transitioned to the Ottawa Campus after the Spring 2026 term. The college also is reviewing additional fiscal mitigation measures and is conducting a full review of study programs and administrative and support services. “These are the most challenging fiscal times in the College’s history,” Brulé said. Perth Mayor Judy Brown, speaking to CTV News, said the closure of the Perth Campus would have negative implications for the region’s economy through the loss of revenue and jobs. This in turn is expected to limit the community’s ability to fund infrastructure projects, such as renovations to its local arena and pool. Algonquin College

Carlton Trail College in Humboldt, Saskatchewan and the global mining company BHP launched the BHP Potash Academy and its inaugural cohort of 13 trainees. This eight-month paid traineeship combines in-class learning with hands-on experience. Graduates of the program will earn a Certificate in Mining Essentials and an Applied Certificate in Industrial Mechanics and will be offered permanent, full-time employment at BHP’s Jansen Mine site in Leroy, Saskatchewan. “With the launch of this new partnership between our College and BHP, we are bridging the gap between workforce need, classroom learning and the real-world application of skills,” said Amy Yeager, president of Carlton Trail College. GlobeNewswire

The University of Guelph-Humber launched an AI Hub where staff and students can ask questions and learn more about AI software usage. Dr. Victoria Chen, a senior academic technology specialist at the university, and two research assistants, Ashnaa Narumathan and Siobhan O'Donoghue, launched the hub after a survey of students revealed that many felt confused about using AI software or were afraid of it. Along with highlighting AI tools, the research assistants provide resources on AI for students, instructors and staff such as the online module AI, Algorithms & You, developed by the University of Guelph-Humber and Humber Polytechnic’s Library Services to introduce students to the basics of algorithms and AI tools, while emphasizing their ethical and responsible use. University of Guelph-Humber

A new Concordia University-led research program is applying Indigenous knowledge systems to reconceptualize AI. Abundant Intelligences is an international, interdisciplinary, multi-institutional research initiative that asserts that AI’s current trajectory is inherently biased against non-Western modes of thinking about intelligence – especially those originating from Indigenous cultures. The program aims to incorporate Indigenous knowledge systems into AI so that the technology is oriented toward promoting human thriving, preserves and supports Indigenous languages, addresses environmental and sustainability issues, re-imagines health solutions, and more. The concept is described in a recent paper in the journal AI & Society. Concordia is directing the program with local work conducted by Indigenous-led research clusters at the University of Lethbridge, Western University, Bard College (New York), Massey University (New Zealand), and the University of Hawai’i-West Oahu. Concordia University

Portage College in Lac la Biche, Alberta, launched a Computer Programming and Information Technology Diploma. Students will take courses in topics such as cloud technology, cybersecurity and artificial intelligence and have the opportunity to gain hands-on experience through a work placement. This hands-on experience is designed to prepare students for successful careers in a variety of roles such as, but not limited to, computer programmer, web designer/web developer, software support analyst and IT business analyst. With this new diploma, students can receive high-quality training without leaving the area. Portage College

A team of international scientists that includes University of Manitoba (UManitoba) researcher Dorthe Dahl-Jensen has drilled an ice core believed to be the longest continuous climate record in history – estimated at more than 1.2 million years old. The Beyond EPICA – Oldest Ice project drilled 2,800 metres down to the bedrock beneath the Antarctic ice sheet and removed an ice core in pieces to be re-assembled in sequence. The sample offers an unprecedented opportunity to explore Earth’s climate and atmospheric history, including the relationship between temperature and greenhouse gases during the most distant periods of the ice age. “When we look at the ice core, we have small bubbles from the atmosphere that’s 1.2 million years old,” said Dahl-Jensen, Canada Excellence Research Chair in Arctic Sea Ice, Freshwater-Marine Coupling and Climate Change. “When we take the air out of these bubbles, we can actually see what the concentration of greenhouse gases were back in time, and that’s really unique.” The project is funded by the European Commission, with support from national partners across Belgium, Denmark, France, Germany, Italy, Norway, Sweden, Switzerland, the Netherlands and the United Kingdom. UManitoba

McGill University post-doctoral fellow Logan James, in a partnership with the Earth Species Project, is using AI and machine learning to understand what animals are saying. Researchers at the Berkeley, California-based nonprofit laboratory, which has attracted some of the technology industry’s wealthiest philanthropists, expect improved interspecies understanding will foster greater appreciation for the planet in the face of climate change. The goal is not to build a “translator that will allow us to speak to other species,” said Jane Lawton, director of impact at the Earth Species Project. However, “rudimentary dictionaries” for other animals are not only possible but could help craft better conservation strategies and reconnect humanity with often forgotten ecosystems, she said. At McGill University, James generates specific calls during simulated conversations with live finches that help researchers isolate each unique noise. The computer processes calls in real time and responds with one of its own. Those recordings are then used to train the Earth Species Project research group’s audio language model for animal sounds. Existing collaborations aim to document the vocal repertoires – the distinct calls and their different contexts – of the Hawaiian crow and St. Lawrence River beluga whales. By 2030, Lawton said, the group expects “really interesting insights into how other animals communicate.” Associated Press

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