GOVERNMENT FUNDING & NEWS

The Government of Canada referred the Port of Vancouver Gateway Strategy to the Major Projects Office (MPO), seeking to accelerate the port’s expansion. This strategy and associated pillars, including the Roberts Bank Terminal 2 project, reflect the type of nation-building infrastructure projects the Building Canada Act aims to urgently advance to diversify and grow trade capacity, reach more global markets such as the fast-growing Indo-Pacific region, and drive economic growth, the government said.

The Gateway Strategy focuses on four key pillars to support capacity growth at the port:

1.  Roberts Bank Terminal 2 (RBT2) – is being referred to the MPO for potential listing as a project of national interest under the Building Canada Act to provide regulatory certainty and future financial success. The Vancouver Fraser Port Authority (VFPA)-led RBT2 is a proposed three-berth container terminal at Roberts Bank that would increase the port’s container capacity by 50 percent, enabling $100 billion of new container trade capacity annually, contributing over $3 billion to Canada’s GDP per year, and supporting the creation of 17,000 ongoing jobs across the supply chain during operations.

RBT2 has undergone more than a decade of regulatory reviews, including a robust environmental assessment approval process and consultation with Indigenous groups. The VFPA has mutual benefit agreements in place with 27 First Nations. The project completed a federal impact assessment in 2023, receiving key environmental approvals and is awaiting final permits.

2.  Land use and infrastructure for bulk terminals – The port hosts 29 major marine terminals, many of which handle Canada’s most important exports, including grain, potash, petroleum products and canola oil. Dry and liquid bulk account for approximately 70 percent of total Port of Vancouver tonnage. To double non-U.S. trade by 2035, new land, modern terminals and other export-focused infrastructure needs to be built.

On July 20, the VFPA will launch a process to select an operator for its 40-acre Fraser Wharves terminal site in Richmond – the first major terminal opportunity at the port in a decade. The MPO may support VFPA with this process to ensure the project is efficiently advanced, while respecting Indigenous rights and safeguarding the environment.

As part of the Land Use and Infrastructure for Bulk Terminals pillar, Alberta’s West Coast Oil Pipeline proposal located in the Delta Area of B.C. will be reviewed and considered.

Under the Gateway Strategy, the MPO and the VFPA will cooperate to identify similar opportunities for export terminal expansion.

3.  Rail Infrastructure optimization and expansion – The majority of cargo moving through the port is transported by rail. The current system requires investment to diversify Canada’s trade. Without targeted expansions of the port’s rail infrastructure, Canada’s transportation network will become congested, which increases shipping costs and reduces the competitiveness of Canadian businesses.

In partnership with the railways, the MPO and Transport Canada are developing a rail infrastructure strategy to increase capacity and enhance supply chain efficiency, reliability, and resilience.

4.  Environmental Protections – B.C. and Canada’s environmental protections ensure that growth at the port occurs responsibly. As part of the Spring Economic Update 2026: Canada Strong For All, the federal government committed more than $258 million over five years to renew and enhance funding for protection of whales and their habitats. One Canadian Economy

The Assembly of First Nations (AFN) National Chief said she’s willing to go to court to ensure the rights of First Nations are protected as the government starts the process to fast-track projects deemed to be of national interest. Cindy Woodhouse Nepinak was speaking at the AFN’s annual meeting in Ottawa. The AFN, which represents more than 600 First Nations across Canada, backed a resolution opposing any federal reforms that weaken environmental protections, undermine oversight, limit meaningful consultation, compress review timelines or circumvent First Nations free, prior and informed consent in relation to major projects and regulatory streamlining. Last month, the government announced the first three projects it intends to fast-track under the Building Canada Act. All three are in northern locations. Woodhouse Nepinak said the government’s plans to fast-track major infrastructure projects will “fundamentally alter the way Canada protects or does not protect our planet.” In her speech, she said First Nations are for economic growth that will drive Canada’s prosperity. “But not at the expense of our rights or of the Crown’s legal obligations to our people.” She said it’s critical that First Nations are part of the federal Major Projects Office’s process. Senior federal cabinet ministers appearing before the AFN meeting said consultation with First Nations is a key piece of the government’s major projects policy agenda. Woodhouse Nepinak also said she is concerned about addressing the First Nations infrastructure gap – the schools, roads housing and other infrastructure required to bring life for First Nations to a level consistent with the rest of Canada – which she said would cost $350 billion to address. The Globe and Mail

Prime Minister Mark Carney announced a new strategic partnership with General Dynamics Land Systems-Canada (GDLS-Canada). Through this partnership, the government will invest nearly $2 billion over four years to build and deliver 190 additional armoured combat support vehicles (ACSVs). This will expand Canada’s fleet from 360 to 550 vehicles, giving Canadian troops the equipment they need to protect Canadians and support our allies. The new ACSVs will keep soldiers protected, mobile and mission-ready in the most demanding environments. They combine advanced armour to protect against mines, improvised explosive devices and enemy fire, with the mobility to keep pace with front-line forces. Every vehicle will be designed by Canadian engineers, built with Canadian materials and assembled by Canadian workers at the GDLS-Canada factory in London, Ont. The work carried out at GDLS-Canada draws on more than 600 Canadian suppliers, in over 100 communities across the country. GDLS-Canada is Canada’s first strategic partner under the Defence Industrial Strategy’s Strategic Partnership Framework. Companies selected as strategic partners commit to invest in Canadian research and development, grow domestic supply chains and hire a Canadian workforce. In return, the federal government will act as an anchor customer – accelerating approvals and opening doors to new export markets. Prime Minister of Canada

National Defence Minister David J. McGuinty announced the launch of the Uncrewed Systems Defence Innovation Secure Hub (UxS DISH) under the federal Bureau of Research, Engineering and Advanced Leadership in Innovation and Science (BOREALIS) in Mirabel, Quebec. An Espace Aéro-led consortium will receive $29.6 million over two years to establish and operate the UxS DISH. The consortium includes 30 organizations from industry, academia, and the not-for-profit sector. Through the hub, participants will collaborate to accelerate the transition of promising Canadian technologies from research and development into field-ready solutions that support Canada's defence and security priorities. DISHs are secure, mission-oriented hubs established to enable collaboration between government, industry and academia in support of Canada’s defence and national security priorities. They provide trusted environments, infrastructure and services that support the design, testing, validation and transition of advanced technologies toward operational use. Sponsored by the Canadian Joint Forces Command (CJFC), the UxS DISH will provide a secure environment where government, industry, academia and innovators can collaborate to develop, test validate and integrate emerging uncrewed and autonomous systems technologies into operational capabilities. CJFC was created to address gaps in how joint capabilities are generated, developed, managed and sustained to facilitate a centralized approach to improve coherence, accountability and innovation. National Defence

The Canadian Federation of Independent Business (CFIB) gave the Government of Canada and the Government of Ontario each an A+ for their progress on internal trade, in the 2026 State of Internal Trade: Interprovincial Cooperation Report Card. Much of this progress is tied to growing adoption of mutual recognition legislation, including a pan-Canadian agreement that will allow goods approved in one province to be sold in another without additional regulatory requirements, CFIB said. CFIB said it applauds the significant progress made, but cautions that these high scores reflect commitments more than actual progress felt on the ground. Nearly seven in 10 small businesses (69 percent) reported not noticing meaningful changes in doing business across Canada over the past 12 months, with 16 percent reporting it has become more difficult. Many continue to face challenges related to regulatory differences, certification requirements and delays, all of which add costs. Awareness also remains an issue, with more than half (57 percent) of business owners not yet familiar with recent reforms. When it comes to tackling select barriers to internal trade, the highest grade – a C-minus went to Nova Scotia. Manitoba, Saskatchewan, Quebec, Prince Edward Island, Alberta and British Columbia each received a D. CFIB

Health Canada said over the last three months, the department approved 537 new drugs and medical devices to help Canadians manage and treat a range of health issues. This includes three generic versions of semaglutide, the first G7 country to do so. From April 1 to June 30, 2026, Health Canada approved 15 new drug submissions and 481 new medical devices, along with 31 generic drugs and 10 biosimilar drugs. In addition, to help bring more medications and treatments to Canada sooner, Health Canada published a Ministerial Reliance Order. The order allows the department to review certain parts of drug submissions faster by using decisions or documents produced by select foreign regulators. This approach maintains Canada's requirements for safety, efficacy and quality while reducing unnecessary duplication, Health Canada said. A more efficient process will also encourage manufacturers to bring products to Canada. The first classes of drugs that will be accepted by Health Canada under the order include drugs for pediatric use and veterinary drugs. Health Canada also is seeking feedback on a proposed approach to prioritize the review of certain generic drug submissions that involve Canadian manufacturing. Supporting Canada's generic pharmaceutical and life sciences sector will play a key role in enhancing the security of the drug supply and preventing harmful shortages that could negatively impact the health of Canadians, the department said. Health Canada

A group of prominent Canadians is urging the Government of Canada to support plans for a voluntary National Youth Service program that would include basic military training. Engage Canada submitted a proposal to the House of Commons Standing Committee on Finance in May, seeking support to develop the program. Under the proposal, young people aged 18-25 would complete the military training before serving in areas such as emergency preparedness, climate resilience and community service. The proposal has attracted support from business, military, Indigenous, academic and community leaders, including former Quebec premier Jean Charest, former British Columbia premier Christy Clark, Paralympian Rick Hansen, and Chief Wilton Littlechild. Michael Burns, chair of Engage Canada, said the initiative is designed to address two challenges facing the country: helping young people transition into the workforce while also strengthening Canada’s ability to respond to national needs. Engage Canada is asking the federal government to allocate $18.75 million over two years in Budget 2026 to support the program, which would include a competitive application process and compensation for participants’ work – though Burns says the question of what would be a fair wage is yet to be determined. Germany and France both introduced voluntary national service for young people last year, while Norway, Sweden, Finland and Denmark all have forms of conscription, meaning enlisting in national service is mandatory for certain demographics of the population. National Post

The Government of Québec signed an operational cooperation agreement on artificial intelligence with the Government of Alberta. This five-year agreement, with no financial commitment, aims to accelerate the deployment of AI in public administration. Its objectives are to improve the performance and efficiency of the government and to offer citizens and businesses simpler, faster and more tailored services. The agreement provides for the sharing of knowledge and best practices in AI, the pooling of reusable technological assets, and the development of training and retraining programs for staff. It also focuses on strengthening expertise in data governance, cybersecurity, privacy protection and AI-related risk management. The Quebec government said the collaboration will facilitate the transition from pilot projects to large-scale deployments, producing concrete and measurable results for the public: reduced processing times, improved access to information, enhanced service quality in customer service centres and more proactive and personalized public services. Government of Québec

The Government of Canada and the Government of Québec announced the renewal of the Quebec Fisheries Fund (QFF), with a budget of $50 million over five years. The QFF supports the sustainable, long-term growth of Quebec’s fish and seafood sector by increasing the value of products derived from sustainable practices and strengthening their recognition in the marketplace. Investments will help boost productivity and competitiveness, with a strong focus on opening new markets and adapting to changes in the ecosystem. The QFF is built on four pillars. To be eligible, projects must align with the following areas: 

1. Innovation – develop new products, processes, technologies or equipment that improve productivity, competitiveness, sustainability or market access in the sector. 
2. Infrastructure – adopt, adapt or install new processes, technologies or equipment that improve productivity, competitiveness, sustainability or market access in the sector.
3. Scientific partnerships – improve knowledge or adaptive capacity in response to ecosystem changes and their impacts on commercial fisheries.
4. Market development and diversification – contribute to expanding market access and diversification, both within Canada and internationally, by reducing the impact of trade barriers while supporting growth in the value of Quebec seafood products. Fisheries and Oceans Canada

The Federal Economic Development Agency for Southern Ontario (FedDev Ontario) announced an investment of over $20 million to support nine businesses and organizations in the Greater Toronto Area. This funding will help businesses, such as Accuenergy Canada, Beachman, Blade Air, Corwin Metal Products, and REMAP Network, adopt advanced technologies, including artificial intelligence, to expand capacity and increase their competitiveness across the different sectors. Additionally, this funding will support businesses like Toronto Global, Sheridan College and the University of Toronto to attract and anchor high-growth companies in the region. The funding includes $1.75 million of the $8.5-million cost for a 40,000-square-foot wet-lab space run by Cambridge, Mass.-based BioLabs at the MaRS Discovery District in downtown Toronto. FedDev Ontario

Canada Economic Development for Quebec Regions (CED) announced more than $13.8 million in contributions (60 repayable and three non-repayable) for 63 Quebec organizations. These investments are being made under the Regional Artificial Intelligence Initiative, which supports projects aimed at either developing and marketing AI solutions or integrating these solutions into SMEs’ operations and activities. These projects will enable businesses to innovate more quickly, better seize new business opportunities and improve their daily efficiency. CED

Natural Resources Canada (NRCan) announced over $4.5 million in funding from NRCan’s Smart Renewables and Electrification Pathways Program for the Saint-Jean-Baptiste Regional Electricity Cooperative’s Electricity Distribution System Modernization Project, which services 16 municipalities in Montérégie and Estrie. This project will:

• Improve the reliability and resilience of the local electricity grid.
• Support the integration of renewable energy and battery energy storage.
• Support the electrification of new end-uses.
• Help cooperative members better manage their energy use through the deployment of up to 7,500 digital metering technologies, such as smart meters. NRCan

Prairies Economic Development Canada (PrairiesCan) announced $3.5 million in federal support for EMILI (Enterprise Machine Intelligence and Learning Initiative). The investment will help EMILI support more digital agriculture companies as they test, grow and bring new technologies to market. This year alone, EMILI is working with 24 innovators on 33 projects across 10,000 acres at its Innovation Farms sites in Grosse Isle and MacGregor. These projects help companies test new technologies in real farming conditions and move practical solutions closer to market. Through this support, EMILI will continue to advance digital adoption, innovation and green economic development in Manitoba’s agriculture and value-added agriculture industries. The organization is also expanding its reach as a co-founder of the Agriculture, Innovation, Validation and Adoption Network, which connects agriculture innovation across Alberta, Saskatchewan, Manitoba and Ontario. PrairiesCan

Environment and Climate Change Canada (ECCC) announced the completion of a nearly $1-million project, funded through the federal government’s Low Carbon Economy Fund, to support the Children’s Hospital of Eastern Ontario's (CHEO) Deep Energy Retrofit Program, helping to reduce greenhouse gas emissions through increased energy efficiency. With this contribution, CHEO has modernized its heating, ventilation and air conditioning systems by incorporating new energy-efficient technologies. The project includes, among other things, the installation of an energy recovery system, the modernization of the ventilation system to improve fresh air intake, and the addition of two heat pumps that will reduce reliance on natural gas-fired boilers. These improvements provide a healthier and more comfortable indoor environment for patients, their families and employees, while significantly reducing the hospital’s energy consumption and environmental footprint. ECCC

 RESEARCH, TECHNOLOGY & INNOVATION

The Natural Sciences and Engineering Research Council of Canada (NSERC) and the U.S. National Science Foundation announced an additional three projects to be funded through the Call for proposals: Designing Materials to Revolutionize and Engineer our Future. The three partnerships announced today will receive $1.2 million over four years from NSERC, bringing the total for this call to $3.13 million over four years to eight international partnerships.

Awarded projects are:

• Engineering Novel Quantum Material Platform at Twisted Multilayer Interfaces.
  Christoph Ortner, University of British Columbia, $400,000.
  S. Principal Investigator (PI): Ke Wang, University of Minnesota
• Data-Driven Materials by Design for High Performance Organic Mixed Ionic-Electronic Conductive Polymers and Devices.
  Simon Rondeau-Gagné, University of Windsor, $400,000.
  S. PI: Wenjie Xia, Iowa State.
• Codesign of Highly Entangled Materials Through the Lens of Network Science.
  Eitan Grinspun, University of Toronto, $400,000.
  US P.I.: Carlos Portela, MIT.

For a full list of funded projects, please visit the funding decisions page. NSERC

The Natural Sciences and Engineering Research Council of Canada (NSERC)  and the Fonds de recherche du Québec (FRQ) launched the sixth edition of the NSERC–FRQ NOVA program for junior researchers. The NOVA program supports research projects led by junior researchers at Quebec universities in collaboration with researchers from other Canadian provinces and territories. By fostering new interprovincial research partnerships in the natural sciences and engineering, the program aims to strengthen research capacity, enhance the competitiveness of Canadian researchers, and generate new knowledge with social, environmental, technological and economic benefits for Quebec and Canada. Successful teams may receive up to $75,000 per year for up to three years, including $45,000 from NSERC and $30,000 from the FRQ, to support collaborative research projects. To apply, researchers must submit their application to the FRQ through the FRQnet  portal and a separate letter of intent to NSERC through NSERC's online system  by September 10, 2026, before 4 p.m. ET. NSERC

Memorial University in St. John’s, Nfld. is supporting Canada’s defence priorities as one of the founding members of the first integrated Canadian Arctic Maritime Security Consortium. The group represents end-to-end maritime capability to support Canada’s evolving defence priorities while strengthening Atlantic Canada’s role in the country’s sovereign defence industrial base. The consortium is designed to accelerate the transition of Canadian-led capabilities into defence and security programs that support Arctic operations, maritime surveillance, autonomous systems, workforce development, industrial and technological benefits and next-generation defence capabilities. A key early initiative is the development of a Canadian Centre of Excellence for Maritime and Arctic Training, bringing together advanced simulation, operational training, applied research and digital technologies to prepare Canada’s future Arctic workforce while supporting the evolving needs of the Canadian Armed Forces, the Canadian Coast Guard and Canada’s marine industries. Other founding members  are Calian, Genoa Design International, Horizon Naval Engineering, Newdock, PolArctic Canada and the Arctic Economic Development Corporation. Memorial University

The University of Toronto (U of T) is advancing its commitment to responsible artificial intelligence adoption at scale through a multi-year partnership with Toronto-based AI developer Cohere. Cohere, founded in 2019 by former U of T students Aidan Gomez, Nick Frosst and Ivan Zhang, has grown into the world's leading sovereign AI company and the only Canadian company developing frontier models. It builds enterprise-grade models and purpose-built AI solutions that enable businesses and governments to deploy AI with greater control, trust and ownership. Cohere's secure, privately deployable agentic AI platform, North, will support co-ordination of complex tasks across different systems (often referred to as an “orchestration layer”) within U of T’s forthcoming enterprise-wide AI platform. U of T’s AI Kitchen provides secure environments for AI projects, including those with Cohere, with appropriate data access, vetted AI applications and technical frameworks for procurement and data handling – all with the goal of enabling human-centered, responsible AI adoption.   Now in its pre-launch phase, the AI Kitchen is engaging with members of the U of T community to understand what tools, products and services they want to see. University of Toronto

Bell Canada and the Université de Sherbrooke (UdeS) signed a memorandum of understanding to collaborate on quantum technologies, post‑quantum cybersecurity and sustainable data centre infrastructure. The agreement reflects a shared objective to advance next-generation computing capabilities in Canada by connecting Bell’s national network and infrastructure expertise with UdeS’s leadership in quantum research and cybersecurity. Together, the organizations will explore opportunities to develop advanced computing environments that bring together high-performance computing, quantum systems and secure data infrastructure – supporting the integration, testing and scaling of these emerging technologies in real-world environments. As part of this collaboration, Bell and UdeS will also partner with Queen’s University to explore approaches to seamlessly link the national high-performance computing environment with frontier quantum capabilities to support Canadian research, enterprise and public sector applications, while helping keep sensitive data and innovation within Canada. The collaboration is intended to help bridge the gap between research and large-scale deployment by creating opportunities to test and refine new computing architectures in operational environments. Bell

Calgary-based Quantum City launched a new Global Challenge Call: Quantum Enhanced Fibre-Optic Sensing. The global competition invites startups, researchers, students and industry affiliates to explore how quantum optical technologies can improve the sensitivity, reliability and scalability of fibre-optic sensing in real-world energy environments. This Challenge is a direct opportunity to apply quantum capabilities to a defined, real-world industry problem with potential impact extending well beyond the energy sector. Participants will propose novel approaches – theoretical, experimental or hybrid – that use quantum states of light or quantum-informed detection methods to improve the sensitivity, spatial resolution and/or signal-to-noise of distributed fibre-optic measurements. Submissions are opened until November 2026, with results announced in January 2027. Quantum City

Mila - Québec Artificial Intelligence Institute and PolArctic Canada announced a new partnership at Mila’s 2026 Indigenous AI Gathering to advance AI-powered sea ice forecasting and operational decision-support tools for the Canadian Arctic. This collaboration combines Mila’s world-renowned machine learning expertise with PolArctic Canada's predictive system, which is grounded in traditional Inuit knowledge, cutting-edge ocean science and remote sensing technology. Led by Inuit technology founder and AI entrepreneur Leslie Canavera, PolArctic Canada combines AI, ocean science, satellite data and Indigenous knowledge to forecast changing sea ice conditions, insight that shipping companies, fisheries and other operators depend on to navigate the Arctic safely amid an increasingly unpredictable environment. The partnership reflects a shared commitment to building sustainable northern economies through solutions grounded in both Western science and the lived expertise of Arctic communities. Through this partnership, PolArctic Canada gains collaboration opportunities with Mila’s leading network of AI researchers, recruitment access to a pipeline of top-tier AI talent and high-level knowledge-sharing. Mila

Reinforcement learning pioneer and Turing Award winner Richard Sutton is founding a new AI research lab focused on real-time learning that will reduce compute demand. Sutton and his colleague Khurram Javed both announced they were leaving positions at Keen Technologies – an AI research firm founded by virtual reality-pioneer John Carmack – to found their own boutique firm called Oak Lab. Sutton and Javed’s new venture is described on Oak Lab’s website as focusing on developing intelligence from experiential learning, rather than large data sets, allowing AI to operate with significantly less compute demand. Sutton and Javed’s new lab is operating from the perspective of the duo’s “big world hypothesis,” which posits that the world is too large for any AI model to pre-learn everything. Oak Lab’s algorithms instead train on real-time experiential learning, rather than relying on the massive datasets that have been used to train most modern AI systems. Oak Lab said the company’s algorithms learn without storing or replaying data, reducing compute and energy demands. The company has a “holy grail” goal of creating a trillion-parameter AI agent that can learn and plan on just 20 watts of energy – roughly as much as it would take to power a few lightbulbs. Sutton founded the University of Alberta’s (U of A) Reinforcement Learning and Artificial Intelligence Lab and is still a professor of computing science at U of A. BetaKit

Artificial intelligence could transform the economy faster than any previous technology, and policymakers must move equally quickly to figure out how to respond, a group of prominent economists and researchers warn. “A.I. may become radically more powerful over the next 10 years,” the researchers said in a statement, adding that the technology “could bring risks, including large-scale job displacement, as well as opportunities such as major gains in living standards.” The statement, titled “We Must Act Now,” was signed by nearly 200 people, including 15 Nobel laureates and the chief economists of two of the leading A.I. labs, Open AI and Anthropic. Other notable signatories include Jack Clark, a co-founder of Anthropic; Eric Schmidt, the former chief executive of Google; and Vinod Khosla, a prominent venture capitalist. The signatories warn that the effects of A.I. could be “larger than the Industrial Revolution, but unfolding over a vastly shorter time frame.” The statement calls on economists, policymakers and industry leaders to “act now to understand the economics of transformative A.I.” and to put in place policies that will “steer A.I. in a direction that complements humans and benefits society.” But it does not include any specific policy recommendations. The New York Times

The Macdonald-Laurier Institute (MLI) said foreign intelligence agents cloned its website to “recruit Canadians to supply sensitive and even classified information.” Early in June 2026, MLI was informed by Canadian security and law enforcement officials that an organization linked to a hostile foreign intelligence service had cloned its website, mirroring the very large site essentially in its entirety. “We had every reason to believe that this organization was using its mock MLI website and associated infrastructure to, among other things, recruit Canadians to supply sensitive and even classified information by offering research and other contracts that appeared to be from a reputable and prestigious Canadian think tank,” MLI said. MLI said in 2023, Russia’s “Federal Service for Supervision of Communications, Information Technology, and Mass Media” attempted lawfare to have its website taken down. MLI said it has been formally sanctioned by the Kremlin and blacklisted by Beijing. After MLI discovered the fraudulent website address, it was suddenly deactivated and now leads to a broken link. Macdonald-Laurier Institute

The Canadian Securities Administrators’ examinations of 73 financial firms’ cybersecurity practices found that 55 percent could have stronger cybersecurity policies, such as better controls on electronic communications and handling of electronic devices. The sample included firms registered in the categories of investment fund manager, portfolio manager, restricted portfolio manager, exempt market dealer, and combinations thereof. Several of the firms, particularly larger firms, had robust cybersecurity policies and procedures. Eight percent of firms did not have any written cybersecurity policies and procedures. Other findings included:

• Cybersecurity policies and procedures were not reviewed and updated with sufficient frequency.
• Firms’ cybersecurity policies and procedures did not match their actual firm practices.
• 21 percent of firms did not provide any cybersecurity training to their employees.
• 21 percent of firms that provided training could have provided more comprehensive training.
• Sixteen percent of firms that provided training had no documentation or limited documentation to support the cybersecurity training provided to their employees.
• 45 percent of firms conducted cybersecurity risk assessments during the examination period that could have been more robust.
• 12 percent of firms had no documentation of a cybersecurity risk assessment during the examination period.
• 41 percent of firms could strengthen their cybersecurity oversight of third-party service providers.
• 62 percent of firms had no documentation or limited documentation to support their cybersecurity oversight of third-party service providers.
• 15 percent of firms did not have a written cybersecurity incident response plan at all.
• 53 percent of firms with a written incident response plan could have had a stronger plan.
• 63 percent of firms with a written incident response plan should have tested their plan on a more regular basis. Canadian Securities Administrators

The world’s leading AI models are more biased toward giving Canadian-like answers than American, according to a study by Toronto-based AI company Transformer Lab. The company analyzed how large language models, including ChatGPT, Claude and Grok, express cultural and political values, and found they consistently aligned more with Canadian public opinion than American opinion. In 69 percent of statistically significant comparisons (57 of 83, out of 112 run), a model's default answer distribution landed closer to Canadian public opinion than American. Each comparison was stress-tested with 2,000 bootstrap resampling iterations, over 200,000 statistical tests in all. Every single model leaned Canadian. The Canadian bias is strongest when models answer questions about trust in government, immigration and national pride. It fades to a dead heat on religion and actually reverses on interpersonal trust. Transformer Lab said it doesn’t know why the AI models have a Canadian bias, but it may be because of the values of the people who aligned these models, not the raw internet text underneath them. Recent work by Bladon and Bent (2026) argues that cultural bias in language models originates primarily in post-training, not pre-training. The annotators and developers steering that process tend to be highly educated tech workers whose collective preferences – tolerance, diplomacy, trust in institutions – may map closer to average Canadian opinion than to the polarized American public. “Or, put more simply: nobody programs a model to be Canadian. But when a Silicon Valley company sets out to make one perfectly polite, universally tolerant, highly trusting of institutions, and afraid of ever saying anything too extreme, it may end up building a Canadian by accident.” Transformer Lab

Siemens announced a major expansion of its Saskatoon research and development hub, strengthening Siemens’ EDA (electronic design automation) business within Siemens Digital Industries Software to support rising global demand for advanced semiconductor and artificial intelligence technologies. The expansion adds 10,000 square feet at the Innovation Saskatchewan Research and Technology Park, bringing the site to approximately 45,000 square feet and enabling continued growth in AI software development for next-generation chip design. As semiconductor designs become more complex, AI-enabled electronic design automation software plays an increasingly critical role in helping engineering teams manage scale, performance and energy efficiency. Siemens’ investment in Saskatoon supports the development of AI capabilities that help customers design and verify advanced semiconductor systems more efficiently while aligning with Siemens’ broader Industrial AI and comprehensive Digital Twin strategy. The expansion is expected to support the creation of up to 100 new highly skilled roles over the next two years, growing the local workforce from approximately 300 to 400 employees. Siemens

More than 20 igam­ing com­pan­ies are racing out the gate as Alberta gives private online gambling the green light. Online plat­forms approved by reg­u­lat­ors can now offer online casino games and sports bet­ting through web­sites and smart­phone apps. Legal oper­at­ors are required to show the Alberta igam­ing Cor­por­a­tion's seal of approval. The market launch comes after two years of devel­op­ment. Service Alberta Minister Dale Nally said the goal behind reg­u­lat­ing these private gambling com­pan­ies is to get people who already gamble on unreg­u­lated off­shore sites onto reg­u­lated ones that pri­or­it­ize pro­tec­tions and pay taxes. Oper­at­ors must pay 20 percent of rev­en­ues to the province, which is expec­ted to gen­er­ate $76 mil­lion in the mar­ket's first year. Two percent of rev­enue is also ear­marked for First Nations com­munit­ies, while one percent will go to efforts in respons­ible gambling and treat­ment for prob­lem gam­blers. Twenty-two oper­at­ors were live on launch day, while more than 50 oper­at­ors have now applied to be a part of Alberta's igam­ing mar­ket. Calgary Herald

Canadian small and mid-sized businesses focused on the semiconductor industry say the United States’ artificial intelligence boom is creating opportunities too good to pass up, despite ongoing trade uncertainties and geopolitical friction between the two countries. Big Tech investment in AI infrastructure will exceed US$700 billion this year, according to the financial statements of Meta Platforms Inc., Amazon.com Inc., Alphabet Inc. and Microsoft Corp., while Goldman Sachs Group Inc. estimates that tech’s AI spending will surpass US$5 trillion by 2030. But Jerry Zhai, founder and chief executive of Toronto-based MaxEpic Inc., said no one company is able to offer an all-encompassing solution, which creates opportunities for Canadian companies. He said MaxEpic’s potential business pipeline and revenue for its energy-efficient devices – chiplets that reduce power consumption for AI systems – have “expanded significantly” over the past few years. Mani Sethi, chief executive of Brampton, Ont.-based Advanced Micro Consulting Inc., which offers chip design and consulting services for semiconductor and technology companies, said business slowed down in early 2025 as companies scrambled to determine how U.S. president Donald Trump’s trade war would impact them, but it bounced back and is now booming. Last month, 13 Canadian companies travelled to Oregon on a semiconductor-focused trade mission, meeting with U.S. chip giants including Intel Corp. and chipmaker Micron Technology Inc., to help set the stage for future collaboration. Financial Post

The Regina-based, federally funded Protein Industries Canada global innovation cluster announced a new project with BC Food & Beverage (BCFB), the University of British Columbia (UBC) and Cultivated Food Labs (CFL), to develop and deliver a new coordinated skills training program. A total of $1 million has been committed to the project, with Protein Industries Canada committing $760,000 and the partners together committing the remainder. Canada’s ability to “Make More Here” presents an opportunity to unlock $25 billion in GDP and upwards of 17,000 new innovation-based jobs, Protein Industries Canada said. BCFB, UBC and CFL are combining their expertise to ensure enough skilled talent is ready to fill these jobs, providing companies across Canada with the workforce needed to help reach new growth potential and new markets. Aimed at Canadian SMEs across the food production and value-added agriculture sector, the program will combine academic coursework, applied technical training and industry mentorship, addressing gaps in skills training identified through industry stakeholder consultations. It will reduce reliance on outsourced expertise, supporting faster product development cycles and an increase in innovative job creation across Canada. Protein Industries Canada

Protein Industries Canada announced a new project with Summerland, B.C.-based Crush Dynamics and Kelowna, B.C.-based Atomic47 Labs to develop a revolutionary AI-enabled fermentation platform that uses existing industrial sensors and advanced machine learning to continuously infer fermentation conditions, food safety indicators, energy performance and process health in real time. By transforming conventional fermentation from a manually managed process into an intelligent, autonomous system, the technology has the potential to significantly reduce energy consumption, improve product consistency, increase production efficiency and unlock new value from agricultural byproducts, creating a new model for smart and sustainable food manufacturing. A total of $1.4 million has been committed to the project, with Protein Industries Canada committing $607,000 and the partners together committing the remainder. Through the project, Crush Dynamics and Atomic47 Labs will integrate AI into Crush Dynamics’ commercial fermentation platform, enabling real-time process monitoring, prediction and optimization. By making fermentation more predictable, scalable and cost-effective, the project will accelerate the conversion of agricultural byproducts into high-value food ingredients and help advance a more sustainable and competitive Canadian food manufacturing sector. Protein Industries Canada

Bell Canada said it reached a key milestone toward launching satellite-to-mobile coverage after it finished building a ground station in Quebec. Last fall, the telecommunications company announced plans to launch space-based cellular service through a partnership with Texas-based AST SpaceMobile using low-earth orbit satellites. Bell said testing has begun at the ground station facility, which connects with AST SpaceMobile’s satellite constellation to integrate its space-based cellular broadband network with Bell’s terrestrial network. The site will form part of the Canadian infrastructure supporting direct-to-device satellite service. The company has completed integration testing, including text messaging, data connectivity, voice call and video call tests on standard smartphones through its ground station, with plans to test video streaming, Internet-of-Things and public alerts in the coming weeks. The technology is meant to keep Bell customers connected in areas beyond the reach of traditional wireless networks, such as northern communities and remote coastal regions. Bell is aiming to launch its satellite coverage early next year. The Canadian Press

The author of a university-led audit that tested whether popular artificial intelligence chatbots are issuing advice on committing self-harm and cyberbullying wants the federal government to institute “mystery shopping” exercises to test whether AI tools are meeting safety standards after Ottawa’s Safe Social Media bill becomes law. Bill C-34, introduced in June, would establish a Digital Safety Commission that would enforce new safety rules for major social media platforms and AI chatbots. Aengus Bridgman, associate director of the Centre for Media Technology and Democracy at McGill University, was part of a team that carried out a recent audit of AI chatbots and a co-author of the corresponding study, released in late June (See item under “Research, Technology & Innovation” in the July 8 Short Report). Bridgman said that actively testing if chatbots are providing advice on harmful behaviour should be “a key part of the regulatory framework” under the federal bill. This practice would test the claims companies are making about the safety features built into their chatbots, he said. The Globe and Mail

San Francisco-based OpenAI added expanded parental controls on ChatGPT as it positions the AI platform as a learning tool for teens. For accounts it tags as belonging to teens, ChatGPT will now by default suggest learning-focused prompts for tasks it can help with. Parents with accounts linked to those of their children can also now remotely turn on “study mode,” which walks users through problems step by step rather than simply generating the answers. In a blog post, OpenAI claimed that keeping teens from using AI would leave them “less prepared to use one of the defining technologies of their time.” Nearly nine in 10 teens on ChatGPT use it for learning, information, skill-building or productivity in a single week, the company said. The B.C. government has retained lawyers in B.C. and California to pursue legal action against OpenAI for its failure to notify law enforcement of threats made on its platform prior to the mass shooting at Tumbler Ridge Secondary school. Also, a New Brunswick woman has filed suit against OpenAI and its CEO Sam Altman, claiming the company’s ChatGPT chatbot encouraged her daughter’s death by suicide. OpenAI

California-based Meta launched new tools to alert parents when their teens talk about suicide or self-harm with the company's chatbot, Meta AI. Parents who have set up the supervision feature for their teens on Instagram will get a notification on their own device if a teenage user shows signs of crisis in conversations with Meta AI on any of Meta's platforms, the company said in a blog post. Meta AI is accessible on all Meta platforms including Instagram, WhatsApp and Facebook Messenger, as well as at the standalone Meta.ai website. The new rules are an expansion of Meta's guardrails. Prior to this, when a teen suggested they were considering self-harm or suicide, the AI chatbot would redirect them to crisis help lines and encourage them to reach out to a parent or other trusted person. If teen Instagram users repeatedly make searches related to self-harm and suicide using the platform's regular search function, that also already triggers a notification to parents. Meta, the parent company of Instagram and Facebook, said the new feature is live for users in Canada, the U.K., the U.S. and Australia. CBC News

The European Union will move to limit young children's access to social media across the 27-member bloc, European ​Commission President Ursula von der Leyen said, in what ‌would be the biggest such effort to date to guard against online dangers. Von der Leyen presented a paper from two experts recommending a tiered approach, with under-13s only ​allowed to use social media for limited periods under the ​supervision of parents, caregivers and teachers. The curbs would be lifted ⁠gradually as teenagers got older. "The question is no longer ​if children face risks online, but what can we do to give children a safer start online," she said. Von der Leyen indicated that she was likely to follow ​the experts' suggestions and that the Commission would present a concrete proposal ​after the summer. She is expected to announce it at her state of the ‌union ⁠address in September. Australia, Britain, Canada, China, India and the United States have already imposed a social media ban for children or are considering one. Reuters

Toronto-based Intact Financial Corporation announced that catastrophe losses and large losses were higher than expected in the second quarter this year. Combined, these losses were $247 million above the company’s expectations on a pre-tax basis and net of reinsurance ($1.08 per diluted common share after-tax). Total catastrophe losses for the second quarter impacting continuing operations were approximately $416 million on a pre-tax basis and net of reinsurance. In Canada, catastrophe losses were driven by weather events, including torrential storms causing flooding, water and wind damage across several regions. The insurer has seen a broad-based increase in fire claims. Morningstar DBRS analysts said the first half of last year was one of the costliest on record for global natural-disaster insurance claims amid wildfires in California, Canada and Europe, and predicted at the end of last year that Canadian insurers were likely to see more volatile results in 2026 for the same reason. Intact Financial Corporation

Shell-led and Kitimat, B.C.-based LNG Canada and its joint venture participants announced a historic equity option agreement with MNT Investments LP, a limited partnership of the economic development organizations of five First Nations: Gitga’at First Nation, Gitxaała Nation, Haisla Nation, Kitselas First Nation, and Kitsumkalum. Under the deal’s terms, the First Nations – whose territories neighbour LNG Canada’s facility in northwest British Columbia – could invest up to $1 billion to acquire a majority stake in the giant LNG storage tank planned for the facility’s expansion, if it goes ahead. If completed, it would rank among the largest Indigenous ownership deals in Canada. LNG Canada would continue to operate and maintain the facility, tank and associated infrastructure. LNG Canada and its joint venture partners have safely shipped over 100 liquified natural gas cargoes since operations began on June 30, 2025. LNG Canada

Vancouver-based fusion energy company General Fusion Group Ltd. began trading on the Nasdaq – the first publicly listed nuclear fusion firm – following the completion of its previously announced merger with special purpose acquisition company Spring Valley Acquisition Corp. III. General Fusion is entering the public markets with approximately US$150 million in cash, inclusive of net transaction proceeds from the private placement and trust capital, to advance its practical fusion energy technology. This capital is expected to fund General Fusion’s Lawson program through several key technical milestones, which the company aims to complete in 2028, with the goal of demonstrating and de-risking its Magnetized Target Fusion technology in a commercially relevant way. Listed as $GFUZ on the Nasdaq, the stock opened on July 13 at US$12.80 per share. By July 20, the price had dropped to about US$8.80 per share, reflecting typical early-trading volatility and market repricing for a pre-revenue deep-technology company. General Fusion

Montreal-based CAE and Saab signed a memorandum of understanding to collaborate on advanced training, simulation and mission support capabilities for the Gripen fighter aircraft in Canada, should the Government of Canada choose to make the Gripen part of its future fighter capability. Under the proposed collaboration, CAE would play a key role in establishing and operating a Canadian-based training ecosystem for Gripen pilots and technicians, supporting advanced pilot training, simulator operations, technical training and sustainment services. CAE and Saab would also explore opportunities to support mission systems development and sustainment in Canada, combining Saab's platform expertise with CAE's world-class training, simulation, and operational support solutions. The agreement includes collaboration on research and development initiatives focused on next-generation capabilities. CAE

Mississauga, Ont.-based lithium-ion battery maker Electrovaya announced a commercial agreement with Amazon. The company sells batteries for forklifts and other vehicles that move materials in warehouses. The arrangement is expected to support the continued deployment of Electrovaya’s Infinity battery technology in material handling operations and potential expanded engagement on robotics and energy storage. Electrovaya agreed to let Amazon buy up to nearly 14 million common shares at fixed prices over 10 years. The warrants will become fully vested once Amazon purchases US$280 million worth of Electrovaya’s product, with some vesting immediately upon signing the deal. Electrovaya

Emerald Energy Technologies, a wholly-owned subsidiary of Calgary-based Tourmaline Oil Corp., is planning to build a power-generation facility and a data centre called Malachite One in west-central Alberta. The power-generation facility could cost up to $5 billion, with the data centre infrastructure costing up to $15 billion. The proposed site is on Crown land, adjacent to Tourmaline’s active Banshee Gas Plant about 40 kilometres southwest of Edson in Yellowhead County. If approved, the plant would convert 150 million cubic feet of natural gas daily into one gigawatt of electricity to power the data centre, which would serve as a warehouse for computer equipment that processes data at high speeds. Emerald Energy Technologies is proposing to build the facility as early as 2027, in hopes of attracting an operator for the facility. CBC News

Council in Vulcan County municipal district, about 120 kilometres south of Calgary, approved rezoning land for the site of a proposed AI data centre, opening the door for the applicant to apply for a permit approving the project. Council last month rezoned 350 hectares to rural industrial from rural general to allow for the development of a data centre campus, which applicant Eric Steeves, a fifth-generation farmer, said would likely see a project of 1,000 megawatts dedicated to IT computation built over several phases. Steeves is working with the Alberta Electric System Operator on the grid connection and plans to apply to the Alberta Utilities Commission this fall. If the schedule stays on track, he’ll likely apply for a Vulcan County development permit next spring. During a public hearing last month, citizens raised numerous concerns relating to the sheer size of the project, water use and noise effects. Calgary Herald

New York became the first U.S. state to halt construction ​of large new data centres, imposing a one-year moratorium as concerns grow that the facilities driving the artificial intelligence boom are raising power costs, straining water ‌supplies and burdening local communities. The moratorium positions New York at the forefront of a growing national debate over how to manage the infrastructure needed to support AI. While technology companies are racing to build new data centres, lawmakers and regulators in dozens of states are weighing measures to limit their effect on electricity grids, utility bills and local communities. New York Governor Kathy Hochul said she would ​also pursue legislation to repeal sales tax exemptions for large data centres. The construction ban will apply to data centres that use 50 megawatts ⁠or more of power, officials in the governor's office said. During the moratorium, the state's Department of Environmental Conservation will not issue any discretionary permits not already deemed complete, the ​governor's office said. Instead, Hochul directed state officials to develop a Generic Environmental Impact Statement to ensure that new data centres coming online are held to "consistent standards," as well as examine the ​potential environmental impacts of the construction and operation of data centres in the state. The ban will be lifted once the state finalizes those standards, according to Hochul's office. Reuters

The European Commission announced a 46-percent green electricity target for the bloc's economy by 2040. The move is intended to cut dependencies on imported fossil fuels. The European Union's economy should reach a 46-percent electrification target in transport, industry and buildings by 2040 in order to cut €260 billion per year in imported fossil fuel costs, the EU Commission said as it unveiled a set of proposals to ease the process. The proposed measures include reforms to fees charged by energy network operators, energy taxation and building efficiency. Brussels is stepping up its electrification efforts as part of a scramble to find quick solutions to offset the loss of oil and gas from the Strait of Hormuz, which exposed the EU's severe dependence on imported fossil fuels. However, without incentives to reduce high electricity prices, the Commission's plan to electrify the economy could be a hard sell. Brussels has recognized that electricity remains more heavily taxed than gas in some EU countries. As previously noted by Commission President Ursula von der Leyen and Council President António Costa, this weakens incentives for households and businesses to switch to cleaner technologies such as heat pumps and electric vehicles. To address this imbalance, the Commission is proposing a legal principle requiring member states to ensure that electricity is not taxed more heavily than gas, while leaving governments free to determine the structure of their national tax systems under the EU's energy taxation rules. The EU's electrification pace has progressed more slowly than anticipated – stagnant at 23 percent over the past decade – despite its importance for achieving the EU's climate, competitiveness and energy security objectives. The remaining 77 percent of the economy is mostly run on fossil fuels. Euronews

VC, PRIVATE INVESTMENT & ACQUISITIONS

Ontario Teachers’ Pension Plan’s Venture Growth unit invested in a US$1.5-billion Series D funding round for California-based Fireworks, the platform for specialized intelligence, enabling companies like Uber and Shopify to train and serve custom models. The round was led by Atreides Management, Index Ventures, and TCV, with participation from existing investors Evantic, Lightspeed Venture Partners, and NVIDIA. The amount of the Ontario Teachers’ Pension Plan investment wasn’t disclosed. Fireworks said it will use the new funding to continue expanding its engineering team and global compute capacity to meet skyrocketing enterprise demand, and deepen partnerships with cloud partners like Microsoft and NVIDIA. Ontario Teachers’ Pension Plan

 Toronto-based Radical Ventures led a US$130 million Series A funding round for San Francisco-based AI model maker Prime Intellect. The round also included NVIDIA Ventures, Intel Capital, Dell Technologies Capital, existing investors and numerous angel investors. Prime Intellect is a “neolab” building frontier AI models to rival those of market leaders Anthropic and OpenAI. Instead of spending huge sums to train an all-powerful system up front, the firm’s approach is to use reinforcement learning –a technique, to simplify greatly, based on getting better by trial and error – so that its technology keeps improving as customers use it. Prime Intellect

Toronto-based InsideDesk Inc., a provider of AI-powered revenue cycle management solutions for dental service organizations, raised $12.6 million in financing led by Pender Ventures with participation from existing investors Round13 Capital and Graphite Ventures. InsideDesk gives its clients greater visibility and helping us recover insurance receivables more efficiently and effectively across our organization. The financing will accelerate the company's AI platform and support its mission to help dental service organizations automate the revenue cycle, improve collections and reduce administrative burden at scale. InsideDesk

St. John’s, Nfld.-based SiftMed raised $5 million in seed funding for its AI software that reviews medical claim documents. Toronto's Staircase Ventures led the all-equity, all-primary round, with new investor The51 and existing backers Pelorus VC and Sandpiper Ventures participating. SiftMed ingests, structures and analyzes thousands of pages of records in a fraction of the time human reviewers need. Dealroom.co

Vancouver-based GroundedAI raised $2 million to accelerate the expansion of its underground intelligence platform into the tunnelling sector. The financing round was led by Stand Up Ventures, with participation from SOSV, Accelia, BoxOne, The51, LOI VC, and other investors. GroundedAI is developing technology designed to help construction teams understand changing subsurface conditions before they lead to costly delays and budget overruns. The startup is targeting the opportunity created by a major wave of Canadian investment in transit, energy, water infrastructure, pipelines and critical-mineral projects – much of which will require tunnelling or other underground work. GroundedAI said it will use the new capital to accelerate its entry into the tunnelling market as governments and private-sector investors prepare to fund new infrastructure, energy and critical-mineral developments across Canada. Techcouver

Ottawa-based Assent Inc. acquired Germany-based IPOINT for an undisclosed amount. Assent provides product compliance and supply chain management solutions. IPOINT is a product compliance and sustainability software provider. Assent said the acquisition, the first in the company’s history, marks a significant step in Assent’s strategy to expand beyond supply chain compliance and deliver comprehensive product lifecycle intelligence, helping manufacturers manage evolving product requirements, sustainability performance and regulatory obligations from design through end of life. Assent

Chicago-headquartered F2 Strategy, a consulting firm focused on technology in the financial sector, bought Toronto-based Intelligo Partners, a consulting firm specializing in investment technology consulting, for an undisclosed amount. F2 Strategy said the acquisition expands the company’s investment platform implementation capabilities, strengthens its leadership in Canada and advances the firm's strategy to build the premier North American consultancy focused on asset and wealth management technology. Business Wire

Toronto-based Thomson Reuters Corporation sold a 51-percent majority stake in its book publishing business to New York-based investment firm KKR for US$500 million. This new joint venture will hold an exclusive license to distribute the content in print and on ProView, Global Print’s eBook platform. Thomson Reuters will maintain intellectual property rights and full editorial control over its content portfolio. The Thomson Reuters Global Print business provides legal and tax information in print format and via ProView to customers around the world and provides commercial printing services to a wide range of book publishers. Thomson Reuters

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Canadian guidebook on “green” investment will include decarbonization projects for oil and gas production, which some environmental groups oppose

The scope of a Canadian guidebook aimed at attracting billions of dollars for climate-friendly investments is being expanded to cover decarbonization projects for oil and gas production, a contentious move that environmental activists warn could slow the shift to a low-carbon economy.

The Canadian Taxonomy and Transition Planning Council, which is leading the effort, began a five-week public consultation period to gather feedback on its methodology report for the new taxonomy. The document is aimed at helping to fill a need for at least $115 billion in capital annually for Canada to meet its net-zero targets by 2050.

The draft guidebook had previously been split into two categories for eligible investments: Green, covering non-emitting projects such as renewable energy; and Transitionary, including activities that decarbonize high-emitting industrial processes.

Now, the council is recommending a third option – abatement measures. It would comprise such projects as methane reduction, as well as carbon capture, utilization and storage in oil and gas production, processing and distribution.

Abatement would include “robust guardrails” to ensure projects meet specific climate goals, the council said in its draft for public comment.

Institutional investors have pushed for a taxonomy that meets standards that are in use, or are soon to be, in 70 jurisdictions around the world.

Earlier this month, a coalition of three dozen environmental organizations called Credible Taxonomy published a report explaining why they believe oil- and gas-related projects should be excluded outright.

The coalition, including Environmental Defence, Climate Action Network Canada, and West Coast Environmental Law, among others, said allowing such investment could be used as cover while fossil fuel production increases.

That could erode the taxonomy’s “interoperability” – the ease with which its features can be compared with those in other countries, it said.

None of that investment would address the highest proportion of emissions from fossil fuels – the burning of petroleum products by end users – Credible Taxonomy said, adding that it opens the door to potential greenwashing.

“A taxonomy is providing a gold star, and any gold star to oil and gas is muddying the waters instead of clarifying them,” said Julie Segal, senior manager of climate finance for Environmental Defence. The Globe and Mail

 REPORTS & POLICIES

Canada needs action now to address growing gaps in digital technologies adoption in agri-food sector

Adoption of digital technologies at commercial scale and system-wide integration by Canada’s agri-food sector continues to lag, according to a report by the Ottawa-based Canadian Agri-Food Policy Institute and EMILI (Enterprise Machine Intelligence and Learning Initiative).

Gaps in digital adoption are widening, despite Canada’s strong research capacity, promising technology firms and a growing agri-food innovation ecosystem, the report said.

Digital capability is increasingly tied to productivity, resilience and competitiveness, especially since Canadian agri-food operates in an increasingly volatile environment, according to the report.

“Global market dynamics, climate pressure, labour shortages, geopolitical instability and rapid technological change are all shaping how decisions get made across the sector,” the report said.

According to the report, $4.1 billion was invested in Canadian agri-food technology from 2014 to 2024. Funding for Canadian agri-food tech was $263 million in 2024.

The report builds on a 2025 report by CAPI and EMILI that undertook a first comprehensive examination of digital agriculture in Canada.

That work established a baseline. It documented Canada’s uneven adoption profile and highlighted the oft-repeated structural constraints, including connectivity limitations, uncertain returns on investment, data governance and technology trust concerns, skills and advisory gaps, and fragmented pathways for technologies to scale.

This latest report identifies the key barriers and sets out actions to address them. It also widens the lens, moving beyond the farm-gate. Gains in primary production will only translate into stronger performance if they are matched by increased digital capacity in processing and throughout the supply chain.

The key takeaways in the report are:

1. Digital transformation is inevitable, regardless of system readiness. Digital tools are no longer optional; they are becoming foundational to productivity, resilience, traceability and competitiveness. The choice facing Canada is whether to actively shape and accelerate this transition, or risk falling behind peers who move more decisively.
2. Gaps in digital adoption are widening. Canada has no shortage of digital tools, promising firms or early-stage activity, but uptake remains concentrated among larger and better-resourced operations. Without deliberate action, smaller farms and food manufacturers will continue to lose ground to their competition, limiting sector-wide productivity and resilience.
3. The opportunity is bigger than the farm gate. Digital transformation in agri-food cannot be understood only through an on-farm lens. Processing, logistics, traceability, manufacturing and supply chain coordination all shape whether digital gains are captured or lost. If those parts of the system do not keep pace, pressure simply moves downstream.
4. Canada’s digital agriculture ecosystem is growing in size and activity, but it remains fragmented and poorly connected. Various initiatives within Canada’s food system are building positive momentum across AI, connectivity, data governance and capital, yet these efforts continue to operate in silos. Digital transformation depends on coordination across actors who rarely engage directly – academia and industry, startups and government – but there are limited mechanisms to convene them. Without these shared spaces, scaling remains difficult to navigate and misaligned with adoption goals and desired outcomes.
5. Scaling requires coordinated action. Moving from pilots to widespread adoption requires deliberate action in several key areas: reducing risk through validation and testing sites, addressing growth-stage capital gaps, improving regulatory predictability, establishing clearer data governance, and strengthening system-wide coordination.

Digital adoption across farms remains uneven, according to the report.

Only 36 percent of smaller farms (less than 2,000 acres) have adopted digital technologies, compared with 80 percent on larger farms (more than 5,000 acres).

The report found that digital adoption still feels risky for farmers because of:

• High upfront cost.
• Integration complexity.
• Uncertain return on investment.
• Data trust concerns.
• Operational risk.

A fundamental challenge is an overly cautious mindset that cuts across the entire system. Agri-food is, by nature, a risk-averse sector. Returns on investment are difficult to quantify, and every farm or firm is different.

When a technology decision fails, the operational consequences can be lasting – even crippling. “These hesitations are grounded in the realities of farm business management.”

The report recommended several actions:

ACTION 1: Invest in a coordinated national network of commercial validation infrastructure to de-risk adoption.

Prioritize funding for commercial-scale validation infrastructure that proves real-world performance, reduces adoption risk and accelerates uptake across diverse farming and processing environments. Integrate these test sites to ensure national coordination and data-sharing. Adoption only comes when there is credible reduction in risk for a producer involved in acquiring a new tool and they can concretely understand the measurable return in benefit it will provide for their operations. If the expected return on a new product or service does not clearly outweigh the cost, disruption and learning curve involved, adoption does not occur, regardless of how impressive its innovation promise may be.

ACTION 2: Deploy dedicated growth-stage capital for agri-food innovation.

Design and deploy growth-stage financing tools that reflect longer development timelines, capital intensity and validation requirements in agri-food.

The digitization of agri-food is here; the opportunities are being seized. And yet there remains a constraint on capital availability for the vast majority of Canada’s IP to scale at home.

A national ecosystem scan estimates that $4.1 billion was invested in Canadian agrifood tech between 2014 and 2024 and reports an 8.4-percent compound annual growth rate.

However, AgFunder’s 2025 global investment report shows that Canadian agrifood tech funding fell to $263 million across 65 deals in 2024, a pullback driven by a global shift toward profitability and a systemic venture capital gap that leaves Canada heavily reliant on public grants.

While innovation activity remains high, the combination of limited private scale-up capital and unresolved structural issues has significantly slowed the flow of investment into Canada.

RBC’s recent work highlights that agri-food accounts for only about two percent of federal government backed growth, venture and infrastructure funds, and about four percent of total growth funds invested in Canada over the past five years.

The Canadian Food Innovation Network found that about 30 percent of food‑tech investment rounds still depend on public grants, a far higher share than in the U.S. or U.K., and that scaling capital becomes particularly scarce at later stages.

Ultimately, Canada generates strong intellectual property and early-stage research, but value frequently dissipates before innovations transition from proof-of-concept to de-risked, investable products.

As RBC noted, one challenge is the limited availability of growth capital in Canada for companies seeking rounds of funding greater than $15 million.

“The lack of growth capital invested in Canadian agri-food and agtech has resulted in startups being undercapitalized or seeking foreign capital, constraining their ability to build traction in the Canadian market and grow into mature companies.”

ACTION 3: Create predictable, time-bound regulatory pathways for agri-food innovation.

Set defined timelines and provide upfront regulatory direction to enable faster, more predictable commercialization decisions and to keep commercialization in Canada.

Canada is widely seen as a small country with a heavy regulatory overlay, which can create a chilling effect on investment. Investors and innovators weigh potential regulatory hurdles alongside cost, disruption and return on investment.

If the unknown risk of compliance is not signaled or clarified early, adoption and investment decisions are deferred or moved abroad. Clear, early and consistent regulatory guidance is a signal of intent: Canada is open for business and capable of supporting innovation.

ACTION 4: Develop a national agricultural data governance framework.

Establish clear, practical rules that define rights and responsibilities for data access and use, supported by common language and standards.

When agribusinesses cannot anticipate or understand how their data will be accessed, shared or monetized, hesitation often follows.

Trust, transparency and predictability in data governance were repeatedly identified as prerequisites for broader digital uptake in Canada’s agriculture and agri-food sector.

ACTION 5: Establish a coordinated, system-wide approach to digital agriculture.

Coordinate policy, research, capital and extension services so innovation translates into sector-wide productivity gains.

Research, funding, commercialization, extension services, data infrastructure and processing capacity are all interdependent. Innovation in one area, without alignment across the system, simply shifts pressure elsewhere and limits the impact of progress.

Conversations with experts highlighted multiple pinch points in the Canadian context that hinder greater resilience and competitiveness of Canadian agriculture, despite the wide availability of proven digital tools and a vibrant domestic agtech ecosystem:

• strong intellectual property and early research that is not commercialized.
• gaps in capital for firms to scale-up; aging or non-existent infrastructure.
• insufficient extension and support services for producers.
• uneven data mobilization and technology uptake.

Each of these is significant on its own, but taken together, they define whether digital agri-food can deliver productivity gains across the sector.

By connecting different nodes of the ecosystem, Canada can ensure that digital technologies are tested, scaled and deployed in ways that generate value at every stage of the agri-food system.

When it comes to public policy, the report noted that digital agriculture is rarely treated as a core, cross-cutting priority with clear objectives, shared definitions and measurable outcomes.

Instead, support appears through a mix of broader innovation, infrastructure and sectoral programming such as Canada’s Connectivity Strategy and time-limited initiatives that vary across departments and levels of government.

Much of the identifiable funding sits outside agriculture-specific channels, which means firms and producers often must navigate multiple departments, program logistics and eligibility frameworks to piece together support.

“Digital agriculture cannot be considered optional,” the report said. “Without digitization, Canada’s agri-food system risks falling behind global peers and will struggle to meet its own productivity, sustainability, and competitiveness targets.” Canadian Agri-Food Policy Institute

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Toronto is one of the world’s most productive AI talent ecosystems but isn’t retaining the AI cluster’s full economic value

Toronto is Canada’s pre-eminent artificial intelligence cluster and one of the most significant AI clusters globally, according to a report by the Innovation Policy Lab at the Munk School of Global Affairs & Public Policy at the University of Toronto.

However, while the region has built one of the world’s most productive AI talent ecosystems, it lacks the institutional architecture and coordination needed to retain the economic value that the cluster generates, the study said.

“There is no coordinated cluster management organization for Toronto’s AI cluster,” said study lead author David Wolfe, professor emeritus of political science and co-director of the Innovation Policy Lab.

Organizations such the Creative Destruction Lab, the Toronto Region Board of Trade, Toronto Global, MaRS, the Vector Institute and the University of Toronto (U of T) all play important roles.

However, “There is no table where all the key actors in the Toronto cluster come together and develop a coordinated strategy,” Wolfe said.

Another important constraint to converting research and talent to anchor companies is weak domestic demand, the study authors said. Large Canadian buyers are often risk-averse, and many startups must seek their first customers outside Canada, making it harder to build credibility at home before expanding internationally.

Toronto ranks 12^th in the world for AI ecosystems (StartupBlink 2024), 3^rd globally for tech talent (CBRE 2025), and is home to North America’s fourth-largest AI talent pool of nearly 24,000 workers, according to the study.

The city accounts for the highest proportion of AI startups in Canada and over 30 percent of all Canadian AI-related patents, the highest percentage of patents related to AI investment in Canada.

Toronto is headquarters for the largest number of AI companies in Canada – attracting nearly $2 billion in investment in 2024.

Demand for AI skills in the Toronto labour market is double the national average, and the city is one of only six Canadian metropolitan areas where demand for AI skills substantially exceeds the national baseline.

The study draws on almost 50 interviews with investors, researchers and entrepreneurs in the community. Co-authors are Katya Bhada, an M.A. graduate of the Master of Urban Innovation at University of Toronto Mississauga’s Institute for Management & Innovation, and Tara Vinodrai, professor and director, Master of Urban Innovation Program, Institute for Management & Innovation.

The study highlights the history of Toronto’s AI ecosystem and its growth from decades of investment in fundamental research, catalyzed by U of T, CIFAR and the Natural Sciences and Engineering Research Council of Canada, and shaped by Geoffrey Hinton’s pioneering work in deep learning and neural networks.

CIFAR’s support for neural networks, including the Neural Computation and Adaptive Perception program launched in 2005, trained more than 2,700 alumni globally.

Hinton’s work at U of T, and the students and collaborators who went on to found or lead major AI companies, established Toronto’s reputation as a birthplace of modern AI research.

U of T remains the foundational anchor of the AI cluster. Its interdisciplinary research strengths extend well beyond computer science into health (through proximity to major research hospitals in the Toronto Academic Health Sciences Network), materials science (through the Acceleration Consortium’s “self-driving labs”), and AI safety and ethics (through the Schwartz Reisman Institute).

The Vector Institute, one of Canada’s three national AI institutes, operates as a talent pipeline and quality filter, supporting over 700 researchers and offering programs that bridge academic training and industry application, including 28 AI-focused master’s programs across Ontario.

Toronto’s talent pool is characterized by depth across career stages, global circulation rather than brain drain, and a culture of loyalty and mission-driven work that distinguishes it from the high-turnover environment of Silicon Valley, the study noted.

However, some interviewees expressed concern about the future visibility of globally recognized AI researchers in the post-Hinton era, warning that without a continued pipeline of prominent academic leaders, the cluster’s ability to attract the next generation of students, researchers and entrepreneurs is at risk.

Toronto’s demographic, disciplinary and cognitive diversity was consistently identified as a core competitive strength.

Interviewees described the city’s openness and multiculturalism as critical factors in assembling global research teams, attracting talent who prefer an inclusive environment, and supporting AI models – particularly in health – that reflect diverse global populations.

The Greater Toronto Area (GTA) region’s diversity has long been an asset for clinical trials, Wolfe said.

“The fact that more than 50 per cent of people living in the GTA were not born in Canada, let alone in Toronto, is an enormous advantage for health research and pharmaceutical companies,” Wolfe said at a recent workshop at the Munk School.

The study identifies financial services and life sciences as two sectors where Toronto’s AI cluster has depth. Major banks – including RBC and TD – have invested heavily in in-house AI capabilities, with RBC’s Borealis Institute deploying a 550-person AI team and TD’s Layer 6 growing from 15 to over 200 employees since acquisition.

In health care, the proximity of U of T to major research hospitals, combined with Canada’s universal health care system and ethnically diverse patient populations, creates exceptional potential for AI-driven health innovation.

The study also highlights the growth of scaling firms such as Cohere, Waabi, and Blue J Legal, and emerging ventures including Xatoms and Ideogram, as evidence of a maturing entrepreneurial base anchored in U of T’s research environment.

The cluster benefits from a dense network of entrepreneurial support organizations, including Vector’s FastLane program for early-stage firms, the Creative Destruction Lab, AXL Venture Studio, and MaRS, which provide stage-appropriate support from early technical translation through to market validation and investor engagement.

On compute access, the study presents a nuanced picture: early-stage firms and researchers rely on a mix of ecosystem-based GPU clusters, academic infrastructure and cloud credits.

Scaling companies transition toward commercial cloud providers and private GPU markets. And the largest firms face the full infrastructural challenges of in-house compute.

The core policy challenge is not just increasing aggregate supply but ensuring continuity across these layers so that firms can scale from subsidized access to sustained infrastructure without exiting the Canadian ecosystem, the study said.

Despite the region’s strengths, the study identifies a key paradox: Toronto excels at producing talent and generating ideas but has proved less successful at converting these assets into domestically anchored, globally competitive firms.

The binding constraint is not just the availability of capital but the absence of sufficient domestic demand, according to the study.

Canada’s oligopolistic market structure dampens the competitive pressure that drives early adoption of new technologies, and risk aversion among large institutional buyers – compounded by fragmented data governance and regulatory caution – means that many of the most promising companies created in Toronto seek their first customers, and eventually their headquarters, abroad.

This dynamic sets up a feedback loop: without domestic validation, firms lack credibility in international markets; without credible scale-ups, the ecosystem cannot retain the senior talent and investment it needs to mature.

Additional challenges include:

• a shortage of mid- to senior-level talent, which forces scaling firms to recruit from the United States.
• a compensation structure that lags global competitors, with Canadian banks resisting pay parity for AI talent despite offering comparable salaries to investment bankers.
• unresolved questions about computing infrastructure at scale.

Access to regulated, high-value data – particularly health data – remains a significant barrier, with Ontario’s centralized health records underutilized.

Most critically, the Toronto cluster lacks a cluster coordinating organization, the study’s authors said.

The city possesses a remarkable density of accelerators, research institutes, hospitals, government agencies and investor networks, but no central cluster management organization exists to align their strategies, link demand from industry with supply from research and startups, or raise the profile of the ecosystem globally.

Governance remains largely voluntary and relationship-based, creating strategic ambiguity for founders and established firms navigating the landscape.

The study makes four interdependent recommendations designed to address the structural constraints identified across the interviews and quantitative analysis:

1. A Toronto AI procurement compact.

The single most consistent finding of the study is that domestic demand is the binding constraint on ecosystem growth.

A multi-sector AI procurement compact would bring together major financial institutions, hospitals and health networks, government agencies and large employers around a shared commitment to procure and pilot Canadian-built AI, thereby addressing the credibility gap that currently pushes firms to seek first customers outside Canada.

The compact should be coordinated with existing federal instruments – the Scientific Research and Experimental Development tax credit, National Research Council-Industrial Research Assistance Program, and the new federal AI strategy – to ensure that procurement incentives align with and reinforce R&D supports already available to SMEs.

2. A coordinated Toronto AI cluster management organization (CMO).

A dedicated CMO – an AI “Hub” – would function as an integrative framework linking five elements: talent development, procurement (through the compact), governance expertise, professional services, and data access.

The AI Hub would provide the connective tissue that the ecosystem lacks, creating a single, accessible pathway from research commercialization through to firm scaling. None of the key organizations involved in the cluster can perform this role under their current mandates, the study said.

3. A regional data access strategy.

A coordinated strategy for regulated, high-value data – health data in particular – would create clear pathways for unlocking the commercial potential of Ontario’s rich datasets while maintaining robust privacy protections.

The strategy should embed Canadian values of trust and public purpose, positioning responsible data governance not as a constraint on innovation but as a competitive differentiator in global markets.

Parallel attention to compute access can ensure that improved data access translates into firm growth within the Canadian system.

4. A talent circulation and retention framework.

Policy should embrace the model of global talent circulation – rather than pursuing permanent retention as an end – while addressing persistent gaps through continued investment in immigration pathways such as the Global Talent Stream, targeted incentives to reduce the effective cost of retaining senior talent domestically, expanded programs bridging academic training and industry roles, and sustained investment in foundational research and academic leadership to anchor the next generation of researchers in Toronto.

The economic value of Toronto’s AI cluster lies in the intersection of its AI talent and other strengths, the study said.

This requires “a coordinated program that moves the region from producing ideas to scaling them, from exporting talent to circulating it, and from fragmented institutional strength to a legible, globally competitive AI cluster.” University of Toronto

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Canada must respond quickly to Trump's quantum-computing challenge

OPINION

By Bruno Couillard

Bruno Couillard is a veteran of the Canadian Armed Forces and the Communications Security Establishment, and the founder of Crypto4A Technologies, a Canadian manufacturer of quantum-safe Hardware Security Modules. This op-ed first appeared here in The Line.

Donald Trump just did something no U.S. president has done since the Y2K era.

He ordered a whole-of-government push to secure digital infrastructure before a known threat arrives. Canadian companies that want to keep doing business south of the border need to pay attention, because this is now a fresh trade concern.

On June 22, Trump signed two executive orders that together mean Canadian companies – from banks to manufacturing – will need to upgrade their cyber security to be quantum-safe in order to do business south of the border.

The first order requires the United States to build a quantum computer at scale and multiple quantum sensor projects by 2028. The second requires every U.S. federal agency to migrate its sensitive systems to quantum-safe encryption by December 31, 2030, and quantum-safe digital signature by December 31, 2031.

Every contractor selling technology to the U.S. government, every government they partner with, and every supplier – including Canadian companies – will also have to comply. This sets a date firmer than ever before for Y2Q (Year to Quantum).

Quantum computers already exist, and developers are getting closer to error-correcting variants at scale. Quantum computers will be exponentially faster and more powerful than classical computers, rendering the network security we use now utterly obsolete – the sheer power of quantum computers will overwhelm existing methods of encryption.

The massive global efforts that went into updating digital networks for Y2K must happen all over again. At that time, leaders took swift, concrete measures to protect their systems from an impending threat. Governments convened task forces, boards demanded readiness reports and CEOs signed off on remediation budgets. The world took it seriously and moved early.

The difference this time is that quantum-safe migration is technically harder, the hardware replacement cycle is longer, the adversarial dimension is real, and the size of the effort is many orders of magnitude greater than Y2K ever was.

There is no neutral outcome where you simply miss the deadline and systems keep running. The truth is that if your security infrastructure isn’t upgraded before a sufficiently powerful quantum computer exists, your data – and your clients’ data – and the critical infrastructure that society depends on are at risk of being read or taken over by whoever got there first.

Bad actors, likely state-sponsored, who get their hands on a quantum computer will have instant access to our power grids, banks, health records, insurance data, sensitive security data or anything else they want.

The procurement dimension is where this gets urgent for Canada. Within 180 days, the U.S. government will propose rule changes requiring every covered contractor to use U.S. National Institute of Standards and Technology-approved quantum-safe cryptographic standards by 2030.

Canadian defence primes, cybersecurity firms and technology suppliers with U.S. government contracts will have to comply or be disqualified.

Canada is a Five Eyes partner, a NATO member and a NORAD actor. When the U.S. government moves its cryptographic baseline, we do not get to stay behind – not if our Canadian government wants to continue to be part of these elite clubs in good standing, and not if Canadian companies want to continue to produce technologies, products and services for the American market, which is still our largest trading partner.

The Canadian government can follow suit and set hard dates for post-quantum migration of its own classified and critical systems – dates that align with or precede our allies’ targets. Government can identify which domestic suppliers can support that transition and back them with procurement commitments and the resources to scale. (Disclosure: my company, Crypto4A, manufactures quantum-safe hardware, and I already have contracts with Canada’s defence and intelligence establishment).

Canada is already building quantum-safe hardware security module technology – the physical devices that generate, store and protect critical quantum-safe roots of trust and cryptographic keys. This technology is ready now, certified and has put our country at the forefront of the quantum security race. That advantage exists because of knowledge built up at the Communications Security Establishment, and because Canadian engineers committed to solving this problem before the market demanded it.

Here’s what Ottawa should do now to get ahead of this transition. The federal government should pull forward its own quantum-safe migration deadline to align with Washington’s 2030 target and signal that alignment clearly to American counterparts. It should also inventory which domestic suppliers can support that transition and move to contract them now, before the scramble begins and every implementation partner is oversubscribed.

The government also should make Canadian-manufactured quantum-safe hardware a condition of procurement for critical systems, both to secure supply chains and to ensure Canadian companies can compete as the global upgrade cycle begins. The companies that build the quantum-safe infrastructure for their own country will be the ones positioned to sell it to others.

The United States just set the date for Y2Q and the countdown timer is now running. The Canadian government is in a unique position to establish Canada as the world leader in that domain and even beat the Y2Q countdown. However, if we do not act soon, our trade woes will get worse. The Line

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Canada could streamline the approval process for new nuclear power plants by moving to a single regulator: Signal49 report

Moving to a single regulator in Canada for nuclear energy projects could streamline the approvals process, reduce duplicative activities and improve project coordination, according to a report by Signal49.

Canada’s dual-authority regulatory framework, divided between the Impact Assessment Agency of Canada and the Canadian Nuclear Safety Commission, sets the country apart from the United States and France, and introduces additional layers of complexity to the regulatory process, the report said.

“This dual-authority approach for nuclear projects has inefficiencies,” the report said.

Prior to 2019, the Canadian Nuclear Safety Commission led both licensing and environmental assessments, the report noted.

Canada retains one of the highest standards for safety and is ranked third globally for the protection of nuclear power plants and facilities, the report said.

Without being shortlisted as a project of national interest in the Building Canada Act, it is expected to take 7.7 years to complete an impact assessment and obtain a construction and operating license for a new nuclear power plant in Canada, according to the report.

“The licensing timeline in Canada could be higher for projects on new sites that use advanced reactor technologies,” the report said. Such sites could include the small modular reactor being built at the Darlington Nuclear Station in Ontario.

The timeline to complete and impact assessment and obtain construction and operating licenses for a new nuclear power plant in the U.S. is eight years, and in France it is four years, according to the report.

Along with executive orders, the Fiscal Responsibility Act and the Accelerating Deployment of Versatile Advanced Nuclear for Clean Energy Act in the U.S. include transformative provisions that ae expected to generate substantive gains in regulatory efficiency, potentially reducing licensing timeframes well below historical averages for securing construction and operating licenses, the report said.

Similarly, the Acceleration of New Nuclear Facilities Act in France is expected to yield material efficiencies.

While the Building Canada Act in Canada can help, its provisions are restricted to national interest projects, the report noted. “Canada will need targeted regulatory efficiency measures for nuclear energy to compete favourably against its peers.”

As the need for regulatory efficiency intensifies, driven largely by economic and climate considerations, Canada and international jurisdictions elsewhere will need to balance the need for speed with the real and perceived independence and safety standards of nuclear regulators, according to the report.

Regulatory reforms that may lead to inconsistencies with international safety standards should be avoided, the report said. “Maintaining alignment with international safety standards will help preserve long-term social license and public confidence in nuclear energy.”

While countries like the U.S. and France treat nuclear as a strategic national asset with deep policy, innovation, trade and security implications, “Canada has not fully embraced this posture,” the report said.

“Our ability to build a secure net-zero economy depends on nuclear energy deployment alongside other zero-emissions energy technologies.” Signal49

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The missing work of co-ordination in Canada’s skills ecosystem

OPINION

By Laura McDonough and Tricia Williams

Laura McDonough is the associate director of insights and knowledge mobilization at the Future Skills Centre. Tricia Williams is the director of research, evaluation and knowledge mobilization at the Future Skills Centre. This commentary first appeared here in Policy Options.

In the current era of urgently accelerated self-reliance, Canada is intent on building things: more roads, pipelines, homes and large infrastructure projects. To do so requires co-ordinated government and private investments in critical drivers such as technology and materials, but also – critically – in people.

There are significant skill gaps and talent shortages across Canada, and we don’t currently have the workforce to meet our national ambitions. We know that part of the solution lies in skills development and training, but it’s also going to require the tricky work of co-ordinating the many moving parts in a complex skills development universe – pulling levers here, aligning actors there – and a focus on long-term achievement rather than short-term relief.

Since its launch seven years ago, the Future Skills Centre (FSC) – a pan-Canadian leader in the skills and workforce development space – has invested in more than 425 pilot and research projects. Its aim: a deeper understanding of the country’s shifting skills requirements and how to achieve closer alignment between labour supply and demand.

Recently, FSC partnered with the global research and innovation consultancy Behavioural Insights Team to analyze nearly 900 project proposals received in response to multiple funding calls in 2024. Collectively, these proposals offer a snapshot of how the sector defines problems, what solutions it gravitates toward, and where system change runs into roadblocks.

Two patterns stand out.

First, organizations want to address skills gaps focusing on equity, technology and sector-specific issues, particularly in areas like AI adoption, the green economy, health care and the skilled trades. These priorities often reflect Canada’s most pressing needs, however many proposals tended to view technology – especially AI – as a magic wand for transforming Canada’s pool of skills.

What was not proposed? Few sought to tackle issues that affect their own organizations or target populations, but which aren’t easily addressed in the limited timeline of a proposed project. And few if any sought to change their management practices, improve navigation in a disjointed skills ecosystem or address critical (but less cool or marketable) foundational skills like literacy or numeracy.

The proposals also revealed a gap between ambition and implementation. More systemic, transformative ideas – new models of skills assessment, sectoral co-ordination or labour market infrastructure – often lacked realistic pathways to sustain initiatives beyond the funding period. Organizations also struggled to articulate how interventions would resonate with public funders, gravitating instead to easily-understood metrics such as number of people trained.

Meanwhile, proposals designed for rapid implementation tended to favour familiar program models that are easier to deliver but unlikely to modernize system dynamics. Some of these tensions are undoubtedly tied to limitations under the funding calls – for instance, projects less than a year in duration – but nevertheless few submissions proposed a first step towards a longer, more systemic initiative. Instead, most proposals favoured incremental activities that could be accomplished within the funding timeline, with metrics of success hyper-focused on short-term results.

 Why most skills initiatives fall short of real change

These findings reinforce a critical truism: Real change takes both intentional design and commitment. It requires great ideas, thinking that embraces both big picture and fine details, sufficient time and investment, and the license to tackle complex problems.

This has been seen in FSC’s own experience. Projects with the strongest evidence, influence and scale are not always the ones that moved directly from idea to impact. FSC has found that high-impact projects have benefited from strong leadership, sufficient time, and data and evaluation support that promotes reflection, iteration and adaptation.

Big challenges are rarely solved easily and without setbacks. For example, in one project FSC worked with SkillPlan – a training organization for the skilled trades – to expand recruitment of under-represented groups into the construction trades. This herculean effort involved working with dozens of building trades organizations in every province, each with their own recruitment processes, regulations and relationships.

As with many effective initiatives, the journey was a lot bumpier than it seemed from the outside. But nearly five years later, the project has resulted in tens of thousands of people considering the skilled trades as a viable career pathway. 

Improving the skills ecosystem requires managing setbacks and adaptations. Achieving clearer impacts, stable models for creating change, and solutions to workforce challenges is not simple. Those who succeeded often cited the supports provided by FSC – technical assistance, research and evaluation, knowledge mobilization and investment dollars – as critical to success. Regrettably, there are simply too few such partners in Canada’s skills ecosystem.

 Canada needs stronger intermediaries to connect workers and employers

Also critical to system transformations are intermediaries – organizations that provide the crucial interface between supply-side actors (training providers, universities, colleges) and demand-side actors (employers, unions, sectoral associations).

Good intermediaries broker the incentives that each labour market body responds to, mobilizing evidence, connecting parties across silos and supporting implementers – all while keeping larger goals in sight.      

Unfortunately, intermediaries are also rare in Canada, as most skills-development funding goes directly to organizations that deliver training (with varying degrees of employer engagement) rather than to modernizing the skills development dynamic of labour/market co-ordination.

For example, FSC funded a Calgary Economic Development retraining initiative to help midcareer workers move into the labour-hungry technology sector. As an intermediary, Calgary Economic Development essentially functioned as the broker of labour between demand (employers) and supply (training institutions).

But because our skills systems have traditionally prioritized implementation over co-ordination, there has been little incentive for intermediaries to emphasize updating the sector-centric or regional workforce planning that Canada needs.

Fortunately, attitudes are evolving. Increasingly there are signs of awareness that large-scale coordination and collaboration will be essential to ensuring that Canada has the right skills, in the right place, at the right time. Programs like the federal government’s Workforce Alliances and the Sectoral Workforce Investment Fund are good examples of that changing vision.

Throughout recent engagements, FSC has heard that success for Workforce Alliances will depend on proactive, cross-industry co-ordination to transition Canada’s labour force from declining sectors into emerging areas of high demand. Rather than viewing labour in isolation, these alliances must develop solutions that facilitate both occupational and geographic mobility, ensuring that workers can transition into industries of the future.

These goals cannot be met with short-term, obsolete training parameters or stand-alone programs. Instead, the Workforce Alliances must work to define a contemporary connective tissue between labour supply and demand that will adapt to supporting both workers and employers in years to come.

Faced with mounting pressure to build faster and more equitably, Canada needs to emphasize long-term strategies and investments in skills and training, and increased support for the intermediaries who ensure the important link of synchronizing actors in order to achieve modern goals. Policy Options

THE GRAPEVINE – News about people, institutions and communities

Two members of Prime Minister Mark Carney’s inner circle are getting a boost as part of a staff shuffle prompted by the appointment of his principal secretary to the Senate and a deputy chief of staff departing to run for office. Scott Gilmore, currently Carney’s senior adviser on foreign, defence and security policy, is being promoted to principal secretary as of later this month, sources told The Globe and Mail. The sources also said that Maia Johnson, currently a senior adviser for Canada-U.S. relations, is taking on an additional role as chief operating officer. The rollout of staffing changes follows Carney’s appointment of his previous principal secretary, Tom Pitfield, to the Senate. And one of his deputy chiefs of staff, Braeden Caley, formalized his resignation from the job to seek the Liberal nomination in a B.C. riding. The title of “chief operating officer” is unusual for the Prime Minister’s Office. Johnson’s role, the sources said, will mirror the corporate sector’s approach of having a person – the COO – in charge of ensuring the day-to-day work of an organization happens as desired. Other changes to staff in the Prime Minister’s Office include Tim Krupa, the former director of policy, becoming a deputy chief of staff and chief economist. Jennifer MacIntyre will become a deputy chief of staff, with a focus on international affairs. She was most recently an assistant deputy minister for international affairs and crisis response at Immigration, Refugees and Citizenship Canada. The Globe and Mail

A former federal scientist in an alleged foreign interference case is accused of copying more than 2,000 documents off a shared departmental server to share with China as his lifelong career was nearing its end, CBC News reported. Dennis Lu faces a jury trial, scheduled for January 2027, in Ottawa’s Superior Court. He researched clean energy with Natural Resource Canada’s (NRCan) Centre for Mineral and Energy Technology for decades, specializing in carbon capture and decarbonization. He was fired during the week of his scheduled retirement in August 2023. The 65-year-old is charged under the Criminal Code with two counts of unauthorized use of a computer and one count of breach of trust relating to his federal duties. The alleged breach dates from the day Lu began a leave of absence to travel to Taiwan and China in 2023 to the date of his arrest in 2024. He had recently returned to Canada after living in China for about a year following his departure from NRCan. Courthouse records prepared by the Crown and defence show there is no evidence of Lu actually sharing the documents he downloaded. Instead the Crown alleges that Lu's devices, seized during the execution of a search warrant at his Ottawa home, contain evidence of questionable affiliations and employment with Chinese companies, universities and academics against NRCan’s internal rules – and that Lu intended to share the documents with China, the records state. Lu was released from custody after he and a surety promised to pay $10,000 each if Lu leaves Ontario, applies for a passport or any other travel permits or documents, or violates any other release conditions. CBC News

Dr. Sarah Knudson, PhD, was appointed the next dean of St. Thomas More College (STM) at the University of Saskatchewan for a five-year term, effective July 1, 2026. The dean is the senior academic officer of STM and a key member of the college’s senior administrative team. The dean oversees the college’s academic programs and planning, faculty recruitment and career development, student services and the dean’s office. Knudson began her career at STM in 2012 as assistant professor of sociology and was promoted to associate professor in 2017. She was promoted to full professor earlier this year. University of Saskatchewan

Kate Moran’s term as president and CEO of Ocean Networks Canada (ONC) concluded on June 30, 2026. Jay Cullen, director of the University of Victoria’s School of Earth and Ocean Sciences, will serve as interim president and CEO, effective July 1, 2026. Moran led ONC for 14 years, during which ONC developed into a Major Research Facility of Canada, and a globally recognized research organization. Moran will continue to lead the Solid Carbon initiative, which is advancing approaches for safe, long-term carbon storage in subsea basalt formations as part of global climate solutions. She will transfer into her new role as professor in the School of Earth and Ocean Sciences at the University of Victoria. Ocean Networks Canada

Gerry Pond, the former telecom executive who championed the startup movement in Atlantic Canada, has died at 82. A former CEO of New Brunswick Telecom, Pond was the driving force behind the startup movement in New Brunswick and was an early investor in Radian6 and Q1 Labs, two of the region’s most successful startups. He was the founding CEO of Mariner Partners and its investment arm, East Valley Ventures. Pond spent more than 45 years in Canada's information and communications technology sector, helping shape both the telecommunications industry and Atlantic Canada's startup ecosystem. Among his many awards, Pond received the Canadian Information Productivity Association's Innovator of the Year Award and Hall of Fame in 1997, the New Brunswick Knowledge Industry Recognition and Achievement Awards Person of the Year in 2002, and he was named Canadian Angel of the Year in 2011 by Techvibes and KPMG. Entrevestor

Toronto-based BenchSci, which provides AI software for biopharma research and development, appointed Dr. Mikael Dolsten as chairman of its board of directors, effective June 2026 – the first chairman role in the company's history. Dolsten joined BenchSci's board as a director in July 2025, a year after retiring as chief scientific officer and president of Pfizer Research & Development, where he oversaw the approval of more than 36 medicines and vaccines and helped lead the company's global COVID-19 vaccine response. Dolsten is taking the chair coming off of BenchSci's launch of EMET – the agentic research environment that gives every scientist an agentic team of PhD scientists, unifying data, models, workflows, coding and scientific reasoning into a single environment purpose-built for preclinical R&D, the same way AI coding tools give every developer a team of expert engineers. Business Wire

Toronto-based Kensington Capital Partners Limited appointed two industry veterans to its executive team, strengthening Kensington's leadership and depth to accelerate the firm's next phase of growth. Saar Pikar, previously head of OMERS Ventures, was appointed as president of Kensington, effective July 28, 2026. Bogdan (Bo) Cenanovic was appointed as senior managing director, head of private equity, effective August 10, 2026. Pikar and Cenanovic will also join Kensington's executive management committee and investment committees of the funds under Kensington's management. Kensington Capital Partners

Fidji Simo, OpenAI's CEO of AGI deployment, said she will step down from her full-time role and pivot to a part-time advisory position at ​the ChatGPT maker, following an extended medical leave for a neuroimmune condition. Simo, previously chief executive of Instacart and the head of the Facebook app ⁠at Meta, was among the three directors that joined OpenAI's board in March 2024 after Sam Altman returned ​as CEO. Simo's exit from the senior role also comes as OpenAI gears up to go public amid demand for the technology. Bloomberg News reported, citing an internal memo, that Simo's product and business responsibilities will be split between OpenAI president ​Greg Brockman, chief financial officer ​Sarah Friar and chief ⁠strategy officer Jason Kwon. Reuters

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University of Alberta researchers develop wireless and battery-free sensor to monitor infrastructure

University of Alberta researchers have developed a wireless and battery-free sensor to measure the structural health of critical infrastructure such as bridges and wind turbines.

Conventional sensors require batteries or extensive wiring, making them difficult and costly to install and maintain. But Dr. Rashid Mirzavand and his team from the Faculty of Engineering found a way to harvest energy from the sensor's surrounding environment so it can, theoretically, last indefinitely without maintenance.

By recognizing subtle environmental changes and recalibrating, the sensor can correct errors – normally caused by its own degradation over time – which can result in false alarms or a failure to detect structural shifts. It can also catch structural dangers early by taking microscopic measurements of tilt, a telltale indication of flaws that can lead to catastrophic collapses.

The eco-friendly sensor could heavily reduce electronic and battery waste, and be used on sensitive ancient monuments and cultural heritage sites without drilling holes for power cables or batteries that require frequent changing.

"This battery-free technology offers a highly scalable solution to prevent infrastructure disasters and improve public safety," said Mirzavand, adding that the cheap "set it and forget it" sensor is entirely self-sufficient, making long-term monitoring of the physical world far more practical.

The team’s work was published in Communications Engineering. The research was supported by the Natural Sciences and Engineering Research Council of Canada, the Innovation for Defence Excellence and Security (IDEaS) program of the Department of National Defence (DND), Alberta Innovates, and CMC Microsystems. University of Alberta

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McGill University researchers develop a light-detecting nanoscale structure mimicking how a neuron processes information

McGill University researchers have developed a light-detecting nanoscale structure that mimics how a neuron processes information.

The neuron-like behaviour emerges from the materials themselves, reducing the energy demand associated with similar devices that rely on circuits or software.

Instead of capturing data first and processing it elsewhere, the device senses and interprets light in the same place, similarly to how the eye processes visual information.

The researchers say the discovery could increase the efficiency of such vision-based technologies as artificial retinas and smart optical sensors. It could also transform how artificial neural networks (ANNs), a foundation of machine learning, are built.

“In our paper, using unique materials and nanostructure, we made for the first time a device that can closely mimic the neuron dynamics we’d see in a biological context,” said Songrui Zhao, lead author and associate professor of electrical and computer engineering.

The researchers built the device by engineering layers of atoms using a technique called molecular beam epitaxy. They then exposed it to light with different colours, intensities and timing patterns, measuring how the electrical signals inside the material changed in response.

By analyzing these signals over time, they showed that the device can combine incoming inputs, store information briefly and trigger a response once a certain threshold is reached.

This resembles how a single neuron processes information, demonstrating that such behaviour can emerge directly from the physics of the material, rather than from software or complex circuitry.

“By carefully engineering the layers, we created a device with a tunable response to light, which forms the basis for emulating how a single neuron behaves,” Zhao said. “We were able to design the flow of electrical current to produce the behaviour we wanted.”

Because ANNs are built from many connected neurons, the device could offer a new way to construct these systems, the researchers said.

“A single artificial neuron is like a cell you can use as a building block, allowing us to construct networks from the bottom up,” Zhao said. “It’s a bit of a crazy idea – to create something like a biological system using an inorganic material.”

Such an approach could lead to more efficient forms of information processing, with potential applications in such areas as advanced computing.

Zhao said future studies will expand the device’s light response range and performance and explore applications such as data encryption, where processing information directly at the sensor could improve security.

Nanowire photodetectors: path to single physical artificial neurons, by Yunqiu Chen, Milad Fathabadi, Mohammad Fazel Vafadar and Songrui Zhao, was published in Nanoscale.

The research was funded by the Natural Sciences and Engineering Research Council of Canada and the Fonds de Recherche du Québec – Nature et Technologies. McGill University

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