Details on transfer payment programs over $5 million

NRCan’s Green Construction through Wood (GCWood) Program is aimed at supporting the use of wood in non-traditional construction projects, such as tall buildings, low-rise non-residential buildings and bridges. The GCWood Program launch follows the Government’s Budget 2017 announcement of $55M over five years, starting in April 2018, to undertake this initiative.

The GCWood Program supports Canada’s transition to a more wood-inclusive construction industry by funding projects that encourage:

• Greater adoption and commercialization of wood-based products in the construction of innovative tall wood buildings, timber bridges, and low-rise non-residential wood buildings;
• Replication of demonstrated innovative non-traditional wood-based buildings and timber bridges;
• Research that addresses the gap in technical information needed to facilitate revisions to the 2020 and 2025 National Building Code of Canada (NBCC) to allow tall wood buildings beyond the current 6 storey limit; and,
• Development and provision of training/education programs, life-cycle assessment and other tools for students, and design and construction professionals interested in building with wood and wood products.

The Program provides non-repayable contributions of up to 100% of a project’s eligible incremental costs for the demonstration of innovative engineered wood products and systems. The funding is intended to offset the cost of being the “first mover” of wood-intensive projects, and to fund the development of knowledge and tools to support the success of future projects.

The GCWood program had great success in 2021-22, seeing a number of mass timber demonstration projects completed or well underway. 16 demonstration projects have funding agreements in place, providing over $33 million in support for industry toward over $1.3B in construction activity. Two more demonstration projects were publicly announced in 2021-22, including the first mass timber bridge announcement.

GCWood provided continued support to the code change process in Canada by funding key R&D activities at the National Research Council (NRC) to address research gaps identified by the Task Groups and Working Groups of the Canadian Commission on Building and Fire Codes (CCBFC).  These activities helped support the inclusion of encapsulated mass timber buildings up to 12-stories in height in the 2020 National Building Code of Canada (NBCC) which was published on March 28, 2022.  GCWood as well help lay the groundwork for the inclusion of performance-based codes in future editions of the NBCC and the announcement of funding in Budget 2022 to NRC to see these efforts undertaken.

GCWood continued to support efforts to advance wood education at engineering and architectural schools across Canada by funding the development of key educational resources and tools required to support wood design education, such as: curricula, handbooks, technical guides, and course materials. Significant growth in graduate timber courses has been observed with a 220% increase from 5 courses in 2018/19 to 16 in 2021/22, and over 6,700 students have enrolled in wood courses across Canada since 2018.

The program also launched a State of Mass Timber in Canada (SMTC) Report, and Interactive Map which looked at the history of mass timber in Canada and the current state of construction and manufacturing capacity. The Interactive SMTC Map is updated regularly and now contains information on over 700 mass timber buildings and 20 manufacturing facilities. Both tools have been well received by industry, governments, and other stakeholders, domestically and abroad.

To showcase innovative Canadian engineered wood products, design and engineering, and construction techniques arising from GCWood supported projects, several investments through the Green Construction through Wood program were publically announced, including investing:

• $887,000 to support the replacement of the Duchesnay Creek Bridge that connects the City of North Bay and the Nipissing First Nation. This funding supported the design and construction of the new replacement bridge and was made with the intention of maintaining the original timber aesthetic of the old bridge. By building with wood, this project will result in a total carbon benefit of 991 metric tonnes of CO₂. The bridge opened in August 2021.
• $900,000 to support the design and construction of oN5, a four-storey mass timber office building. oN5 was the first office building in Canada constructed as an infill project with tight lot lines. The project integrates high-performance cross-laminated timber panels and showcases the potential for mass timber in commercial construction by incorporating several sustainable building technologies — most notably, the use of mass timber and strategies based on Passive House principles, making oN5 energy-efficient, comfortable, affordable and sustainable.

No evaluation in 2021-22.

Evaluation of Green Construction through Wood is planned for completion by October 2022.

Program applicants are supported through the establishment of a dedicated program website (nrcan.gc.ca/gcwood), which includes access to program guides, eligibility requirements, project announcements, and program administration details. The program also has a dedicated in-box to respond to inquiries (nrcan.gcwood-cvbois.rncan@canada.ca).

GCWood issued a public Call for Expressions of Interest for each aspect of the demonstration component (tall wood (2017), low-rise non-residential (2018), and bridges (2019)) which was promoted through the NRCan website and social media, as well as through partner organizations across the country. The program likewise takes unsolicited proposals from industry for education and design tool projects.

Selected program recipients are further engaged through regular contact with program administrators to monitor project progress and report against set objectives.

• Natural resource sectors are innovative
• Clean technologies and energy efficiencies enhance economic performance
• Canada’s natural resources are sustainable

The Clean Technology Challenges form part of the Government of Canada’s Impact Canada Initiative (ICI), designed to help departments accelerate the adoption of innovative funding approaches to deliver meaningful results to Canadians.

The Clean Technology program ($75M over 4 years) stream will address areas such as climate change, clean growth, and the application of new technologies to reduce negative environmental impacts. Five Clean Tech challenges were launched in 2018-19 and a sixth in July 2019.

For each Challenge, a mix of tools (e.g. contribution agreements, grants, micro-grants) will be used, based on technical, market and environmental circumstances, in order to achieve breakthroughs in clean technology and leverage as much innovation activity as possible from a given award level.

Contribution payments made under this program are non-repayable.

Following rigorous assessments, in 2021-22 the Impact Canada Initiative (ICI) Clean Tech Challenges announced the final prizes for all six of the ICI Clean Tech Initiatives. Early program results demonstrated a high demand for energy RD&D funding, with 59 projects selected out of nearly 400 proposals received and was successful in mobilizing new talent. To date, ICI Clean Tech Challenges have advanced 28 innovative clean growth technologies, solutions and/processes; helped to build Canada’s clean energy ecosystems, including laying the foundations for new supply chains; supported the growth of new enterprises; and built critical skills and capacity among individuals and enterprises.

Women in Cleantech Challenge ($6 million):

In coordination with delivery partner MaRS Discovery District, the Impact Canada Women in Cleantech Challenge held its Finale event on November 30, 2021, where Amanda Hall (CEO, Summit Nanotech) was announced as the $1M Grand Prize winner. Summit Nanotech developed an improved extraction process which has the potential to create an inexpensive and sustainable source of green lithium for batteries. All six women entrepreneurs made significant strides during the Challenge, raising $52.2M in investments and increasing paid employment by the ventures by 725%. The Challenge also resulted in a spin-off Women in Cleantech Accelerator, delivered by MaRS and sponsored RBC to support a new diverse group of women entrepreneurs.

The Sky’s the Limit Challenge ($14 million):

All four finalists under Impact Canada’s The Sky’s the Limit Challenge successfully produced the required amount of Sustainable Aviation Fuel (SAF). Enerkem was awarded the $5M Grand Prize for their advanced biochemical processes to convert municipal solid waste, forestry and agricultural biomass into sustainable chemicals and biofuels, including sustainable aviation fuel. Several of the finalists have already secured follow-on investments to further develop fuel and/or to scale-up or develop new processing facilities. The Challenge also resulted in the validation of multiple Canadian-sourced sustainable feedstock options, stimulated the growth of the SAF industry in Canada, including the establishment of new consortiums and collaborations to develop SAF supply and value chains. 

Crush It! Challenge ($10 million):

The six Challenge finalists received $860,000 over a 24-month period and completed their work to develop, test and validate their technologies and solutions for cleaner, more efficient processes for crushing and grinding rocks, or comminution, which is one of the most energy intensive processes in the mining industry. Following a rigorous competition and assessment process, in Spring 2022, the Canadian Mining Innovation Council’s cleantech solution CanMicro was announced as the $5 million Grand Prize winner for achieving 35% energy savings across several commodities.

Indigenous Off-Diesel Initiative (IODI) ($20 million):

Charging the Future Challenge ($4.5 million) and Power Forward Challenge ($20 million) :

In February 2022, five Charging the Future and seven Power Forward finalists showcased their innovative battery and smart grid solutions to groups of investors, adopters and other stakeholders. Grand Prize winners were announced at the Globe Forum in Vancouver on March 30, 2022.The Power Forward Challenge aimed at accelerating smart grid technology and, in collaboration with the United Kingdom, awarded $1 million to Equilibrium Engineering for their Alba Nova project developed in partnership with Scotland-based StorTera. Toronto-based e-Zinc was awarded the $1 million Grand Prize under Charging the Future, aimed at accelerating battery innovations that have the potential to substantially reduce GHG emissions.

The Joint Audit and Evaluation of Impact Canada – Clean Technology Stream was completed in January 2022.

The engagement found that:

• the program is relevant and making progress towards immediate outcomes;
• governance structures, processes and mechanisms were defined, established and operating effectively;
• processes and controls are in place to support compliance with relevant departmental guidance and the Treasury Board Policy on Transfer Payments;
• the design of focus areas under the ICI-CTS was consistent with principles of Impact Canada and best practices in challenge models; and
• Impact Canada uses innovative approaches that necessitate new methods and strategies for measuring program outcomes and impacts.

Stakeholder engagement in co-design was recognized as a key strength for the program.

There was an opportunity to improve the retention of documentation related to key decision processes.

A total of three recommendations were made.

• Clean technologies and energy efficiencies enhance economic performance
• Natural resource sectors are innovative
• Canada’s natural resources are sustainable

• Energy Efficiency
• Energy Innovation and Clean Technology

The objectives of the program are to:

• increase the energy efficiency of consumer and commercial products
• enhance commercial, institutional and residential building sector performance
• encourage the implementation of cleaner and more energy efficient technologies and practices in the industrial sector
• support low carbon options for the on-road transportation sector.

Contribution payments made under this program are non-repayable.

Energy Efficiency Program:

• Administered and ensured compliance with energy efficiency standards for products under Canada’s Energy Efficiency Regulations, undertook studies to advance new regulations, and worked with stakeholders and provinces and territories to socialize the Market Transformation Roadmap and plan next steps to support transition to energy efficient, low-carbon space and water heating technologies.
• Supported improvement in industrial energy performance and recognized verifiable energy achievements through the ENERGY STAR for Industry program in Canada.
• Supported capital investment projects to improve energy-use and encourage the transition to lower carbon fuels in Canadian automotive manufacturing plants.
• Supported implementation of energy management solutions, such as the ISO 50001 Energy Management System Standard in industrial facilities and in the commercial and institutional buildings sector, including Indigenous communities and government buildings.
• Collaborated with the US Environmental Protection Agency to continue Integrating Canadian content into the ENERGY STAR Portfolio Manager benchmarking tool and supported ENERGY STAR certification in industrial facilities and commercial and institutional buildings.
• Developed building energy codes for new and existing buildings; and
• Co-funded provincial/territorial demonstration programs, providing necessary evidence on the cost effectiveness of adopting more stringent building codes; as well as targeted industry calls to drive innovation and enable the construction of highly energy efficient buildings across Canada.

Energy Efficient Buildings Research, Development and Demonstration (RD&D) Program:

NRCan is investing $48.3 million to fund projects that will accelerate the development and adoption of net-zero-energy-ready codes and cleaner technologies to promote highly energy-efficient building design and construction practices, provide cost-effective building solutions, and validate their applications with real-world demonstrations. In 2021-22, the program completed its third call for proposals, selecting eight projects seeking a total of $27 million in NRCan funding. In total, 18 projects were supported as of 2021-22. Projects have been successful in leveraging investments, with an average of $2 dollars invested for every $1 of NRCan funding. In 2021-2022, four projects were announced, including:

• $4.4 million to the Canadian Home Builders’ Association (CHBA) to fund deep energy retrofits in houses and low-rise multi-unit residential buildings to identify the most cost‐effective approaches to net-zero home retrofits and inform the development of energy codes for existing homes.
• $547,500 to the Ottawa Community Housing Corporation (OCHC) for a first-of-its kind pilot in Canada to retrofit affordable housing, retrofitting four townhomes into net-zero homes that will produce as much energy as they consume in a year. The project seeks to develop replicable solutions that can be used across other buildings, especially in the affordable housing sector.

No evaluation in 2021-22.

Evaluation of the Energy Efficiency Program is planned for completion by November 2025.

Energy Efficiency Program

Working closely with provinces and territories, industry, associations, and research groups, NRCan advances long-term energy efficiency efforts that drive Canada’s transformation to a low-carbon economy.

Initiatives to engage applicants and recipients include:

• hosting workshops and webinars;
• undertaking targeted outreach and engagement, including engagement sessions and award recognition nominations; and,
• knowledge and capacity-building activities such as case studies.

The Office of Energy Efficiency is also supporting policy, program, and service experimentation to drive energy efficiency across all sectors and to encourage energy efficient behaviours to Canadians. Programming includes activities and partnerships to:

• improve energy efficiency standards for equipment and appliances;
• develop and drive adoption of more stringent national energy codes for new and existing homes and buildings, in collaboration with provinces, territories, and industry;
• implement energy management systems in large buildings and industrial facilities to improve energy efficiency and reduce costs; and,
• support energy labelling and disclosure initiatives using EnerGuide Rating System

Energy Efficient Buildings RD&D Program:

The program continued its engagement with industry, associations, provinces and territories, and research and policy groups to help inform the scope of calls for proposals. In 2021-22, the program pursued meaningful engagement with the Green Municipal Fund, The Atmospheric Fund, the Recover Initiative, and the Pembina Institute. The Program also strengthened its engagement with the Canada Mortgage and Housing Corporation, the Canadian Home Builders Association, and other key policy organizations such as Efficiency Canada.

The program’s Local Energy Efficiency Partnerships (LEEP) initiative aims to foster the construction industry’s capacity and confidence in net-zero-energy ready (NZER) technologies. In 2021-22 LEEP developed technical materials for a series of stakeholder and industry workshops; delivered workshops; collaborated with building science experts and educators to produce training videos for the construction industry; developed web applications for HVAC professionals and a Material Carbon Emissions Estimator (MCE²) Tool for residential construction; and improved LEEP’s Cost Benefit Analysis Tool (CBAT), which allows builders and homeowners to compare the relative costs of different energy conservation options, and developed a French-language version of the CBAT.

The purpose of the Expanding Market Opportunities (EMO) program is to support the competitiveness of the Canadian forest sector by maintaining and growing international wood product markets, expanding wood use domestically in non-traditional construction, and promoting the strong environmental credentials of Canadian forest products.

This transfer payment program provides non-repayable contributions.

The program signed contribution agreements with 13 organizations, delivering 149 projects in established and emerging international forest product markets to promote, educate, inform or facilitate the use of Canadian forest products or wood construction systems.

The program continued to partner with industry and provinces to maintain offshore offices and staff to promote the performance and environmental credentials of Canadian wood products, as well as grow opportunities for Canadian wood product producers, in China, Japan, South Korea, Vietnam, India and Europe.

As just one example of success, EMO funding was pivotal in helping Canada Wood Japan advance Nail Laminated Timber (NLT) in Japan’s construction industry. 2021-22 saw the first two commercial projects adopt NLT floor assemblies in midrise construction with the Mitsui Home Inagi Project and the Maeda Kensetsu Tokyo University of the Arts Project. Canada Wood Japan, in collaboration with the Tokyo Building Works Branch of Maeda Construction Company, has broken ground on Japan’s 1st NLT large-scale demonstration project. The project is a five-storey International Exchange Centre at Tokyo’s University of the Arts, located in the heart of the Ueno neighbourhood. The building is an innovative hybrid combination of steel and wood construction.

EMO Domestic – 2021-22 highlights:

Technical advisors in Canada, funded through the EMO-Domestic program, influenced the use of wood in 270 non-traditional and mid-rise construction projects between April 1, 2021 and March 31, 2022, resulting in incremental wood sales of $219 million in non-traditional construction. It is estimated that 337kt of GHGs were sequestered through the use of wood in these construction projects.

During the second year of the pandemic, the Wood Works! Program continued to successfully deliver the majority of its in-person education program in an online environment, delivering over 60 wood education events to 14,525 people who earned over 25,000 accredited learning hours.

In 2021-22 NRCan supported domestically:

• The launch of the Forestry for the Future campaign led by Forest Products Association of Canada to increase awareness of the sustainability of Canadian forests;
• Council of Forest Industries’ new Hem-Fir technical products, website and product promotion campaign; 
• FPInnovation’s Market Research Roadmap which included a series of market surveys to increase industry market share and manufacturing intelligence;
• Phase II of a Mass Timber Value Chain Map and Linkages project to support the findings of the growing demand for mass timber products necessitates a significant increase in production capacity, and build a business case template for pitching new manufacturing facilities; and
• Ecohabitation’s comparative analysis of mid-rise buildings in Quebec to demonstrate the benefits of wood construction.

No evaluation in 2021-22.

Evaluation of Forest Sector Competitiveness Program is planned for completion by December 2024.

On November 8, 2021, EMO issued its annual call for proposals (CFP) for FY21/22 announced by email and through the NRCan website.  Proposals were submitted through its online funding management system (FMS) which was developed in FY19/20 for applicant proposal submissions and recipient reporting.

Engagement remained high during FY21/22 as measures to restrict the spread of COVID-19 continued to impact the delivery of work plans, and program officers supported recipients to pivot to adopt alternative methods to deliver their programming.

Since 1997, NRCan has contributed to the Youth Employment and Skills Strategy (YESS) through the Science and Technology Internship Program (STIP), which supports youth between the ages of 15 and 30 develop the skills and gain the practical experience they need to join the natural resources sector workforce, including in Energy, Forestry, Mining and Earth Sciences sectors.

Using a third party delivery model, the program provides funding for youth placements through non-repayable contribution agreements. The third-party delivery organizations take responsibility for delivering the funding to employers.

The program has evolved over time to support the various government priorities as it relates to skills & employment, equity, diversity & inclusion, investing in the green economy and the economic recovery post COVID-19. This program also supports the Minister’s commitment to assist in the development and promotion of Canadian scientific and technological capabilities, and to address labour shortages in STEM fields.

• In 2021-22, STIP invested over $40M and created 1,697 internships and training opportunities for youth ages 15 to 30 in the natural resources sectors.
• Investments contributed to Canada’s economic recovery, enhanced the employability of youth during Covid-19 pandemic, and assisted workers and young people affected by rapidly transforming natural resource sectors.
• Internships and training opportunities took place in all provinces and territories.
• Preliminary results for 2021-22 are:
  • 64% participation by employment equity seeking groups (i.e., women, Indigenous Peoples, visible minorities, and persons living with disabilities).
  • 17% participation of Indigenous youth
  • 2% of work experiences supported in the Territories and 18% of youth participants live in rural and remote communities.
  • 4% participation of youth living with disabilities.
  • 85% of youth found full-time employment.
  • 6% of youth are returning to school.
  • 79% of placements in clean tech sector.
• Over 50% of hiring organizations were small and medium-sized enterprises.

No evaluation in 2021-22.

Horizontal evaluation of the Youth Employment and Skill Strategy, led by ESDC, is expected to be completed by March 2025.

Initial Recipients (Delivery organizations)

• Monthly check-ins with delivery organization to assess progress.
• November 26, 2021: Roundtable discussion with selected delivery organizations and NRCan senior management to discuss labour needs and equity, diversity and inclusion in the natural resources sector.

Ultimate Recipients (Hiring organizations)

• Website updates
• Video testimonial

Youth

• Video testimonials
• Post-placement survey completed by each youth to gauge the skills acquisition and overall experiences.

• Natural resource sectors are innovative
• Clean technologies and energy efficiencies enhance economic performance
• Canada’s natural resources are sustainable

The Clean Growth Program will provide $155M over five years to support clean technology research and development (R&D), and demonstration projects in Canada’s energy, mining, and forest sectors.

The program is designed to advance emerging clean technologies towards commercial readiness so that natural resource operations can better reduce their environmental impacts on air, land, and water, while enhancing competitiveness and creating jobs.  

To support innovation by small and medium sized enterprises (SMEs), the CGP includes the novel Science and Technology Assistance for Cleantech (STAC) initiative, which provides SMEs funded under the CGP with access to scientific and technical resources at federal research centers to help them overcome a lack of technical expertise and research infrastructure.

The program provides both conditionally repayable and non-repayable contributions in support of project activities.

The Clean Growth Program continued to support clean technology RD&D in the energy, mining, and forestry sectors. The CGP has funded 43 projects, with 30 successfully completed as of 2021-22, as the program begins to wind down. Projects include, for example:

• Canfor Pulp Ltd. carried out a Front-End Engineering Design (FEED) study to support a commercial-scale demonstration plant that will produce advanced liquid biofuels for transportation ($4.6 million in CGP funding)
• Woodland Biofuels Inc. completed a FEED study and demonstration trials for their first commercial renewable fuel plant, which will use a mix of wood waste from forestry, construction and demolition ($3.4 million in CGP funding)

During 2021-22, 95% of projects had at least one participant other than NRCan or the project proponent, well exceeding the program target of 30%. Every $1 of NRCan’s funding was leveraged by an average of $3 in contributor funds, well exceeding the leveraging target ratio of 1:1. The program met its target with more than half (58%) of projects advancing one or more technological readiness levels. Projects also filed for 27 patents or licences and informed 7 codes or standards. Projects are on track to meet or surpass the 2027 environmental outcomes targets; in 2021-22, projects reduced GHG emissions by 14,131 tonnes of CO₂, reduced water use by 13,712,426 m³, and reduced waste by 70,896 tonnes. Projection data indicates that projects will reduce GHG emissions by 0.2 megatonnes by 2023. Additionally, CGP projects created over 1,075 direct and indirect job years of employment per year (419 direct) and 42% of projects had already achieved progress towards their 2027 economic goals such as reduced costs, increased investments, and revenue.

Under the Science and Technology Assistance for Cleantech (STAC) initiative, NRCan provided support to clean energy innovators to collaborate with federal research experts. Twenty CGP projects led by small to medium sized enterprises received funding for in-kind scientific and technical resources at federal research centres to help them overcome technical capacity gaps.

No evaluation in 2021-22.

Evaluation of the Clean Growth Funding Program is planned for completion in June 2022.

As planned during the design of the CGP, the program regularly communicates with its proponents through the Integro funding portal and the CGP mailbox for all program-wide relevant information. Project-specific communication takes place between the proponent and project advisor. The program engaged with Trusted Partners on a regular basis.

COVID-19 support and impact mitigation mechanisms were communicated and offered to proponents as required. The program continued to engage proponents on options to help them overcome impacts of the pandemic.

• Natural resource sectors are innovative
• Clean technologies and energy efficiency enhance economic performance
• Canada’s natural resources are sustainable

The Energy Innovation Program (EIP) advances clean energy technologies that will help Canada meet its climate change targets while supporting the transition to a low-carbon economy. It funds research, development and demonstration projects and other related scientific activities. Through the EIP, clean energy innovation is supported across four missions:

1. Improving efficiency and processes to reduce emissions from energy end use;
2. Accelerating electrification and maximizing benefits of low emitting heat and power;
3. Developing cleaner hydrocarbon and renewable fuels pathways; and,
4. Maintaining safe and resilient energy systems to protect Canadians in the changing energy landscape.

The EIP runs targeted calls and other strategic collaboration and investment programs. Recent years have included funding calls under Breakthrough Energy Solutions Canada (BESC) and the Canadian Emissions Reduction Innovation Network (CERIN), as well as other grants and contributions addressing a variety of energy technology innovation topics. Budget 2021 announced new funding under the EIP to focus on carbon capture, utilization and storage (CCUS); a first call for proposals related to CCUS was launched in 2021-22.

Contributions under this program are non-repayable, since the activities and benefits from the contributions are pre-commercial.

In 2021-22, the Energy Innovation Program (EIP) supported 36 external research, development, and demonstration (RD&D) projects aimed at reducing GHG emissions while increasing competitiveness, affordability, and reliability in Canada’s energy sector. The projects fostered innovations in the key areas of decarbonizing industry, communities, and transportation. EIP projects were successful in encouraging investments, leveraging an average of $2.50 in contributor funds for every $1 of NRCan’s funding, well exceeding the leveraging target ratio of 1:1. Given that results from RD&D projects often do not accrue after until projects are completed, EIP projects^{Footnote 1} report on results for at least five years post-project funding. EIP projects have made advances in technology and research, with proponents filing for 27 patents or other intellectual property; influencing 28 codes and standards, which can often effect large-scale change; and producing 78 scientific publications and technical reports. Additionally, EIP projects supported 1,063 direct and indirect jobs per year and are on track for meeting 2030 GHG reduction targets, achieving 2.19 Mt of direct GHG reductions in 2021-22.

In 2021-22, the EIP also launched two new funding calls focusing on research, development, and demonstration (RD&D) related to industrial decarbonization:

• August 2021: A $50M Carbon Capture, Utilization, and Storage (CCUS) Front-End Engineering and Design (FEED) study call to advance projects with the potential to significantly mitigate emissions, as part of the $319M B2021 CCUS Research, Development and Demonstration (RD&D) Initiative. 96 expressions of interest (EOIs) were received, representing an oversubscription rate of 10 times the available funding. 23 projects were invited to submit full project proposals and 11 of these were selected to receive funding.
• December 2021: $53M funding call to accelerate development of technologies to decarbonize industry under three focus areas in hard-to-abate sectors: Industrial Fuel Switching, Clean Fuels Production, and Hydrogen Codes and Standards. 134 EOIs were identified as eligible from the 151 received, with an oversubscription rate of 6 times the available funding.

Under the EIP’s Breakthrough Energy Solutions Canada (BESC) initiative, NRCan held a second Tech-2-Market (T2M) accelerator sessions, where the cohort of businesses receiving BESC funding learned from experts and pitched their companies and technologies to potential investors.

Under the Canadian Emissions Reduction Innovation Network (CERIN), a funding stream under EIP, NRCan and Alberta Innovates funded projects, established collaborative networks across Canada and increased access to testing facilitates, including a fully operational natural gas testing facility, to accelerate the development of technologies to reduce methane in the oil and gas sector.

No evaluation in 2021-22.

Evaluation of the Energy Innovation and Clean Technology Program is planned for completion by July 2024.

NRCan regularly communicates with external EIP proponents on project specifics via one-on-one emails. Program-wide updates and requests are sent via the EIP’s mailbox to ensure clear and consistent messaging for all proponents. The program has also encouraged the use of the Clean Growth Collaboration Community for various federal support updates and news, including the recent COVID-related supports made available by the Government of Canada. Newer initiatives such as BESC continue to engage with proponents via the Integro funding portal for project reporting.

In Fall 2021, the EIP launched a new Request for Information (RFI) tool to gather information on stakeholders’ needs, issues, and perspectives on electric vehicle grid readiness. Findings from the 44 responses received from a range of stakeholders were incorporated into a zero emissions vehicles Memorandum to Cabinet and will support the development of future targeted innovation funding calls under the EIP.

To make funding available to Indigenous groups potentially impacted by the Trans Mountain Expansion Pipeline Project (TMX) and the Line 3 Replacement Project (Line 3) to:

• Enhance their capacity to participate in the Indigenous Advisory and Monitoring Committees;
• Pursue other Committee objectives including those supporting their mandate to provide advice to regulators on environmental, safety, and socio-economic issues related to the performance of the projects and compliance with conditions; and
• Address other environmental concerns related to the broader pipeline corridor over the full lifecycle of development.

This transfer payment program has non-repayable contributions.

In 2021-22, the Indigenous Advisory and Monitoring Committees (IAMCs) for the Trans Mountain Expansion (TMX) and Line 3 Replacement projects delivered approximately $25.7M in funding through 198 contribution agreements.

The IAMC for TMX provided approximately $15.2M in contribution funding in 2021-22 to:

• support Indigenous participation on the IAMC-TMX;
• provide capacity funding to Indigenous communities through the Capacity Building Funding Program and Continuous Funding Program in the areas of stewardship, protection and meaningful participation;
• support Indigenous monitoring;
• address Indigenous inclusion in emergency prevention, preparedness and response;
• reduce harm and mitigate impacts of work camps;
• maximize knowledge-gathering and promote information sharing, including Indigenous knowledge and protocols;
• support employment, training and business opportunities;
• support the Indigenous Caucus to provide advice to the Canada Energy Regulator; and,
• deliver the IAMC-TMX Indigenous Monitoring Program, which to date has trained 20 Indigenous monitors who have spent 129 days out in-the field participating in 52 regulatory activities.

The IAMC for Line 3 provided approximately $10.5M in contribution funding in 2021-22 to:

• support Indigenous participation on the IAMC-L3 including through line wide gatherings and three regional engagement sessions;
• implement the IAMC-L3 Indigenous Monitoring Program, including 40 inspections with the CER, a monitoring activity with landowners, one Emergency Table Top Exercise and two Emergency response activities, with a focus on transitioning from construction, which includes the decommissioning of the old line, to the operations phase of the Project;
• conduct monitoring training initiatives and support Emergency Management capacity development;
• Engage various government departments and officials following up on the advice to government that the committee provided in December 2019; and
• Develop various training including an extensive regulatory training program with numerous e-learning modules available through the L3-IAMC website.

No evaluation in 2021-22.

Horizontal Evaluation of the Indigenous Advisory and Monitoring Committees, led by NRCan, is planned for completion by September 2022.

The IAMCs engaged potential applicants and recipients through email distribution, websites, social media, newsletters, meetings and engagement activities such as regional information sharing sessions for Line 3 and a line wide gathering for TMX as well as Indigenous Caucus outreach.

NRCan engaged recipients to ensure compliance with the requirements of the contribution agreements.

Lower carbon transportation is both an essential component of longer-term decarbonisation of the economy as well as a short-term means for reducing emissions.

As outlined in the Pan Canadian Framework for Clean Growth and Climate Change, coordinated and targeted green infrastructure investments to support electrification and fuel switching in the light-and heavy-duty vehicle sectors are two pillars of the framework to lower emissions from the transportation sector. These investments are required to eliminate barriers that currently impede the adoption of clean transportation choices and to spur the wide-scale deployment of low-carbon vehicles, which will enable further greenhouse gas emission reductions across the transportation sector.
This investment will support:

• The establishment of a coast-to-coast network of fast-chargers for electric vehicles (EV), natural gas refuelling stations along key freight corridors, and hydrogen refuelling in metropolitan areas, where vehicles are most likely to be deployed. These investments address consumer and commercial fleets’ concerns regarding the low availability of recharging/refuelling infrastructure investor concerns regarding the financial risk to investment. This will help to accelerate market deployment of electric and alternative fuel vehicles and fuels; and,
• The development of binational codes and standards for low-carbon vehicles and refuelling infrastructure, meeting commitments made through the Regulatory Cooperation Council.

This program, along with investments made for the Zero Emission Vehicle Infrastructure Program (ZEVIP), aims to address barriers to uptake of low-carbon vehicles in Canada. While this program focuses on a coast-to-coast network of zero-emission vehicle recharging and refuelling stations, the ZEV Infrastructure program will help meet growing charging demand by increasing the availability of localized charging opportunities where Canadians live, work and play.

This initiative will use repayable contributions (with the Government of Canada providing up to 50% of total project costs) to decrease the risk of investing in EV and alternative fuel infrastructure. These projects will be monitored for ability to repay over 10 years, following project completion.

No evaluation in 2021-22.

No evaluation is currently planned for this program, as it was evaluated in September 2019 and the program is not ongoing.

• Natural resource sectors are innovative
• Clean technologies and energy efficiencies enhance economic performance
• Canada’s natural resources are sustainable

• Energy Innovation and Clean Technology
• Electricity Resources

Through the $100 million Green Infrastructure: Smart Grid Program, NRCan is promoting the modernization of grid infrastructure by funding the demonstration of promising, near-commercial smart grid technologies and the deployment of smart grid integrated systems across Canada. While the program was originally slated to end in FY 2021-22, program funds were reprofiled to extend timelines for certain projects into FY 2022-23 in order to compensate for impacts of COVID-19, e.g. supply chain disruptions, reduced work crews due to social distancing, difficulties accessing worksites due to lockdowns, and withdrawal of some partner funding.

While the program is funding 22 projects, 28 contribution agreements have been signed (projects that have a demonstration and deployment component are considered hybrids and require two contribution agreements). Twenty-one projects have now been announced. As of March 31, 2022, the program had committed $41.0 million to ten deployment projects, $13.2 million to six demonstration projects and $31.7 million to six hybrid projects ($15.4 million for deployment, 16.3 million for demonstration). For demonstration projects active in 2021-22, NRCan funds were leveraged by contributor funds at a ratio of 3:1 (contributors: NRCan), surpassing the program’s target of 1:1. For deployment projects, the leveraging ratio was 4:1, surpassing the target of 3:1.

This transfer payment program is repayable as follows:

• Demonstration stream: Contributions under this Program are non-repayable, since the activities and benefits from the contributions are pre-commercial. 
• Deployment stream: Repayable, if the deployment leads to a profit within five years following the project commissioning. The requirements for reporting profits are detailed in the contribution agreement, along with the process for repayment.

Through the $100 million Green Infrastructure: Smart Grid Program, NRCan is promoting the modernization of grid infrastructure by funding the demonstration of promising, near-commercial smart grid technologies and the deployment of smart grid integrated systems across Canada. While the program was originally slated to end in FY 2021-22, program funds were reprofiled to extend timelines for certain projects into FY 2022-23 in order to compensate for impacts of COVID-19, e.g., supply chain disruptions, reduced work crews due to social distancing, difficulties accessing worksites due to lockdowns, and withdrawal of some partner funding.

While the program is funding 22 projects, 28 contribution agreements have been signed (projects that have a demonstration and deployment component are considered hybrids and require two contribution agreements). Twenty-one projects have now been announced. As of March 31, 2022, the program had committed $41.0 million to ten deployment projects, $13.2 million to six demonstration projects and $31.7 million to six hybrid projects ($15.4 million for deployment, 16.3 million for demonstration). For demonstration projects active in 2021-22, NRCan funds were leveraged by contributor funds at a ratio of 3:1 (contributors: NRCan), surpassing the program’s target of 1:1. For deployment projects, the leveraging ratio was 4:1, surpassing the target of 3:1.

The following projects won Awards of Excellence in 2021:

• Saint John Energy won the International Smart Grid Action Network Award of Excellence in 2021 for its Smart Energy Project (supported by $6.3M from the Smart Grid Program). The 2021 theme was "Excellence in Smart Grids for Future Proofing the Grid Operation via Advanced Digitalisation & IoT.” The award attracted international investment from Norway to secure new partnerships with Saint John Energy in order to deploy leading smart water heating technology and energy forecasting techniques developed by OSO Energy, Kongsberg Digital and Epos Consulting. This international and private sector investment in the region marks an important step which could lead to further jobs and growth for the region. It also leverages a legacy of patient innovation capital from NRCan since prior to 2010 through to the current Smart Grid Program project.
• Hydro-Québec’s Lac-Mégantic Microgrid project won a Prix Novae 2021 award. The eighth edition of the Novae 2021 competition featured 20 outstanding projects that applied innovation and originality to address social and environmental issues and have demonstrated the relevance and efficiency of their approaches. The unique partnership between Hydro-Québec and the town of Lac-Mégantic led to the development of Québec’s first microgrid and a technology showcase.

No evaluation in 2021-22.

Evaluation of Smart Grids Program and Emerging Renewable Power Program is planned for completion by March 2023.

NRCan organized its third Smart Grid Symposium in October 2021 over two days to accommodate an online format for Program recipients on the first day and the general public on the second day. The event profiled the program recipients, and preliminary results and observations across projects. The symposium was attended by over 400 participants, representing utilities, energy service companies, different government agencies, private consultants, and various other sectors. The agenda included a presentation from NRCan on the Smart Grid Program including highlights from the annual report and overarching themes and challenges. Speakers from SaskPower, Bracebridge Generation Ltd., and Alectra presented on their projects and participants were provide with an opportunity to ask questions.

In February 2022, the Smart Grid Program partnered with Electricity Human Resources Canada (EHRC) and other NRCan programs (e.g., the Clean Energy for Rural and Remote Communities Program) to deliver a workshop for electricity utilities focusing on advancing equity, diversity, and inclusion (EDI) in the electricity sector. The event delivered insights on activities and considerations for EDI across the sector through expert presentations and participant breakout sessions. The workshop also informed the potential role of federal programs to support and inform program proponents and sector actors in advancing EDI across the industry. This event partially satisfies a program commitment to support NRCan’s contributions under the Gender Leadership Accord, and subsequent Equal by 30 commitments

• Electricity Resources
• Energy Innovation and Clean Technology
• Forest Sector Competitiveness

The program will reduce reliance on diesel and fossil fuels in rural and remote communities by deploying and demonstrating renewable energy projects, encouraging energy efficiency and building skills and capacity.

Contribution payments made under this program may be repayable or non-repayable based on program stream.

In 2021-22, NRCan continued to advance the government’s commitment to reduce reliance on diesel and other fossil fuels for heat and power in Canada’s rural and remote communities by supporting community-led renewable energy projects. After two rounds of intake, program funding was fully allocated, with 112 projects supported and 115 agreements signed: 41 for the BioHeat stream, 17 for Demonstration, and 57 for Deployment and Capacity Building. To date, 26 projects have been completed.

New projects completed in 2021-22 include:

• Kapawe’no First Nation (near High Prairie in Alberta) built and commissioned a biomass-fueled district heating system that will use locally sourced wood chips to displace propane for heating and diesel fuel for electricity generation. As a result, the community is generating its own renewable energy source of heat and increasing its energy independence.
• The Old Crow Solar project will deploy 940 kW of solar PV generation, a 480 kW AC energy storage system, and micro-grid controller. The project will integrate with the existing diesel generator in the community. This project has numerous community benefits, such as a training program, jobs during construction and operation, and revenue generation. The Program provided $2,450,437 towards this project, and the Proponent will share knowledge and experiences with other northern Indigenous communities interested in renewable energy. 
• The Qikiqtaaluk Business Development Corporation (QBDC) completed a front-end engineering and design (FEED) study for the demonstration of a small microgrid with renewable generation to provide heat and power to the Aqsarniit Hotel and Conference Centre. The Centre, located in Iqaluit, Nunavut, is 100% Inuit owned by Qikiqtaaluk Corporation and the 18,000 Inuit represented in the Qikiqtani Region. The $1.2 million FEED study identified the optimal mix of energy sources, obtained necessary permits, and led to a completed system design for the first phase of the community energy system. By exploring community-level sustainable energy, the project hopes to set a model for future community development in the north.

New project underway in 2021-22:

In British Columbia, the District of Sicamous is building a district heating system that will provide heat produced from locally sourced biomass for its growing industrial park, replacing propane and heating oil. The project is expected to reduce over 200 tonnes of CO greenhouse gas emissions. The system will be owned and operated by the municipality, providing a new source of revenue, and increasing activity in the regional bioenergy sector.

No evaluation in 2021-22.

Evaluation of the Clean Energy for Rural and Remote Communities Program is planned for completion by June 2023.

This Program will help expand the portfolio of renewable energy technologies available to reduce emissions in Canada’s electricity sector and provide job opportunities along the entire length of their supply chains.

The Emerging Renewable Power Program funding is conditionally repayable should the project yield a return on investment above and beyond the total project costs less the federal contribution.

Under the Green Infrastructure (GI) stream of the Investing in Canada Plan, which supports the Pan Canadian Framework on Clean Growth and Climate Change, Natural Resources Canada (NRCan) is investing in the demonstration and deployment of clean energy infrastructure through several programs: Smart Grids, Energy Efficient Buildings, Emerging Renewable Power, and Clean Energy for Rural and Remote Communities

The six projects funded through the Emerging Renewable Power Program (ERPP) support three emerging renewable technologies (geothermal, in-stream tidal and bifacial solar). As such, the program is helping expand the portfolio of commercially viable renewable energy sources in Canada.

No evaluations in 2020-21.

Evaluation of the Smart Grids Program and Emerging Renewable Power Program is planned for completion by March 2023.

The Climate Change Adaptation Program released 4 new reports in the National Knowledge Assessment series including its flagship report; Canada in a Changing Climate: National Issues Report. These reports document the impacts of climate change on our communities, environment, and economy and how Canadians are adapting. To date, the National Issues Report (pdf) has been downloaded over 10,000 times.

In 2021-22, investments in training and knowledge exchange activities through the Building Regional Adaptation Capacity and Expertise (BRACE) Program resulted in increased availability of an adaptation-skilled workforce across all provinces. To date, these activities include delivery of over 70 new climate change adaptation courses/modules, increasing the skills and knowledge of over 6,300 professionals including planners, engineers, architects, accountants and natural resource managers.  

No evaluation in 2021-22.

Evaluation of Climate Change Adaptation is planned for completion in September 2022.

Phase II of the Early Intervention Strategy (EIS) for Spruce Budworm (SBW) is a research program investigating a new pest management approach that could avoid an outbreak and the associated socio-economic impacts in Atlantic Canada, where forestry is one of the largest economic sectors.

The Phase II program includes a suite of integrated research activities and operational insecticide applications to validate the EIS’s scientific foundation, enhance its efficacy for any emerging outbreaks of SBW, and protect the region’s forests.

Through the Forest Pest Risk Management Program, the initiative will contribute to the Departmental Result “Canadians have access to cutting-edge research to inform decisions on the management of natural resources” by implementing and validating a novel forest pest management approach supported by science knowledge and tools to address a forest pest issues that could have significant negative impacts on Canadian forest values and resources.

This approach will be available to forest managers across Canada for application to any impeding outbreaks of SBW to mitigate risks to forest resources or other related values.

The Program is based on a 60:40 federal to provincial and industry cost-sharing requirement. There are no repayable contributions.

Expected results: Effective annual treatment of Atlantic Canada’s forest at risk of a spruce budworm outbreak

Performance indicator: Percentage of forest areas eligible for treatment where spruce budworm population remain below outbreak threshold

2021-22 results:

• 98% of eligible forest areas in New Brunswick were successfully treated (94,442 ha)
• 98% of eligible forest areas in Newfoundland and Labrador were successfully treated (144,347 ha)
• Spruce budworm populations remain below outbreak levels throughout Atlantic Canada

Expected results: Access to scientific knowledge, surveillance solutions, and response solutions pertaining to spruce budworm outbreaks and the Early Intervention Strategy

Performance indicators: Number of advisory committees and boards involving the sharing of knowledge and information on forest pests and related risk   s to governments, industry, and non-governmental organizations; Number of publications, reports, and presentations.

2021-22 results:

Knowledge was shared with the Healthy Forest Partnership research consortium and general public through:

• Heathy Forest Partnership webpage;
• 27 scientific journal articles;
• 22 advisory committees and boards;
• 24 stakeholder presentations; and
• 8 media articles.

No audit in 2021-22.

Joint Audit and Evaluation of the Spruce Budworm Early Intervention Strategy – Phase II was completed in July 2022.

No evaluation in 2021-22.

Joint Audit and Evaluation of the Spruce Budworm Early Intervention Strategy – Phase II was completed in July 2022.

• Lower Carbon Transportation
• Energy Innovation and Clean Technology

The $750 million Emissions Reduction Fund (ERF) supports capital investments and research to reduce GHG emissions, with a focus on methane, from onshore and offshore oil and gas operations in Canada.

The ERF provides funding primarily in the form of repayable contributions.

• Onshore deployment program ($675 million): uses a mix of repayable and non-repayable contributions.
• Offshore deployment program ($42 million): repayable contributions.
• Offshore RD&D program ($33 million): non-repayable contributions.

Continued to implement the $750 million Emissions Reduction Fund (ERF) to support capital investments, clean technology deployment, and research to reduce methane and other greenhouse gas (GHG) emissions reductions from onshore and offshore oil and gas. The ERF has three streams:

Onshore deployment program ($675 million)

The Onshore deployment program is pulling forward high-impact, cost-effective projects that will eliminate methane emissions from intentional venting and flaring from existing and already scheduled oil and gas production. To date, the program has funded 92 projects across Alberta, Saskatchewan, British Columbia, and Manitoba representing an estimated $147,940,292 in ERF funding.

Projects funded to date are anticipated to achieve methane emission reductions of approximately 4Mt of CO2e in the first twelve months following project completion, which is equivalent to removing about 1 million passenger vehicles from our roads for one year. When amortized over 10 years these projects represent an average cost of less than $9 per tonne of CO2e reduced.

The Onshore Program’s final application intake closed on March 31, 2022, and projects submitted are currently under review.

Offshore deployment program ($42 million)

The program is supporting three projects from Newfoundland and Labrador’s offshore service and supply sector. Two are targeting offshore GHG emissions reductions while the other aims to improve the environmental performance of oil spill-related activities.

Based on program results to-date and feedback from industry, NRCan is considering how best to proceed given unused program funding.

Offshore RD&D program ($33 million)

In 2021-22, the Offshore Research, Development and Demonstration (RD&D) Program ($33M) supported 18 applied projects, which will help reduce emissions in the offshore oil and gas sector. Projects have already met the short-term outcome to increase collaboration between academia, industry, and the public sector, with ultimate funding recipients having an average of 3.19 partners – which surpasses the target of 1 partner per project. Projects are also making strides towards developing new research, knowledge, and solutions. All the projects have produced technical reports, peer review publications or presented at conferences and 88% are expected to generate new intellectual property, software or tools. Funding also supported 81 FTE jobs (direct) annually.

External audit by the Commissioner of the Environment and Sustainable Development (CESD), “Emissions Reduction Fund – Natural Resources Canada” was completed in November 2021.

CESD found that Natural Resources Canada did not design the Onshore Program of the Emissions Reduction Fund to ensure credible and sustainable reductions of greenhouse gas emissions in the oil and gas sector or value for the money spent.

CESD also found that Natural Resources Canada did not follow key greenhouse gas accounting principles or a standard when preparing its estimates of expected reductions in emissions. As a result, the department’s expectation that the Onshore Program could achieve 3.7 megatonnes of carbon dioxide equivalent Mt CO2 eq of emission reductions per year as of 2023 was an overestimate and was not reliable.

Six recommendations were made.

No evaluation in 2021-22.

No evaluation is planned for this program, as it is not ongoing and therefore section 42.1 of the FAA does not apply. The need for evaluation is low as the program was audited by the CESD in November 2021.

Onshore deployment program ($675 million)

The Onshore Program refocused its third and final intake to better support the government’s ambitious climate change goals. The refocus resulted from supportive comments on the program from environmental non-governmental organizations, supportive cooperation from the industry, feedback following the recent audit of the program prepared by the Commissioner of the Environment and Sustainable Development (CESD), and lessons learned through the first two intakes of the program.

Following the launch of the third intake, NRCan staff held a series of Technical Information Sessions, which included over 300 participants, to support applicants through the application process and to better understand the refined criteria for the program. NRCan offered an email concierge service to applicants and recipients of the program to ensure that all program-specific questions were addressed throughout the application process. NRCan staff engaged directly with individual applicants and funding recipients via calls and video conferences to address program-specific questions, negotiate contribution agreements with successful applicants, and provide guidance on GBA+ measures to promote the ongoing development of workforce diversity. NRCan staff also discussed directly with unsuccessful applicants the reasons for which their proposed projects were out of scope.

NRCan leveraged an extensive network within the oil and gas sector, including industry associations (Explorers and Producers Association of Canada (EPAC), Canadian Association of Petroleum Producers (CAPP), Canadian Society for Unconventional Resources (CSUR) to improve program awareness and uptake, through a series of webinars and meetings.

Offshore deployment program ($42 million)

The program engaged directly with applicants via calls, emails, and video conferences to address program-specific questions. Staff worked closely with Newfoundland and Labrador’s Offshore Oil and Gas Industry Recovery Assistance (OGIRA) fund to identify co-funding opportunities, which resulted in seven (7) meetings with prospective applicants. Staff also regularly engaged with successful applicants to negotiate and administer contribution agreements.

Offshore RD&D program ($33 million)

Energy Research & Innovation Newfoundland & Labrador (ERI-NL) finalized the negotiation of the remaining ultimate recipient contribution agreements. They engaged with all ultimate recipients on an ongoing basis to monitor project progress, reimburse eligible claims, and obtain project reporting as needed. Numerous ultimate recipients and ERI-NL participated in industry conferences throughout the fiscal year.

The Investments in Forest Industry Transformation (IFIT) Program offers non-repayable contributions towards capital projects, feasibility studies, and outreach activities undertaken by Canadian forest industry firms to implement first-in-kind technologies, products, and processes. IFIT contributions help to de-risk innovation and enable the forest sector to adopt a more diverse product mix including bioenergy, biomaterials, biochemicals, and next generation building products.

The Program funds innovative projects at the pilot and commercial scales that direct wood fibre and by-products from wood processing into higher value usages which:

• Increase the total revenues available from wood fibre;
• Diversify product lines for the forest industry, improving economic performance and job growth; and,
• Produce renewable energy and other bioproducts that are beneficial to the environment and the emerging bioeconomy.

By providing funding to Canadian forest firms to advance these technologies towards full, commercial-scale implementation, IFIT will broaden and build upon previous investments in forest sector transformation.

In fiscal year 2021-22, the program invested $47.4M in 37 projects to support the competitiveness of Canada’s forest sector.

An example of a project includes $4.07M to Haliburton Forest Biochar for the expansion of the Biochar Production Facility in Haliburton, ON. The facility will have the potential to generate a net reduction of 4,200 tonnes per year of CO2 equivalent emissions and offset more than 7,500 tonnes per year of CO2 equivalent emissions, as the biochar produced will be used to displace fossil fuel products in advanced manufacturing processes on a pound-for-pound basis.

No evaluation in 2021-22.

Evaluation of the Forest Sector Competitiveness Program planned for completion by December 2024.

The purpose of the FIP is to enable transformation in the Canadian forest industry. More specifically, the FIP will help drive forest sector transformation, sparking enterprises in their move beyond a dependence on commodity products toward value-added, high-value and specialty products – sustainably extracting the maximum value from the fibre resource. To achieve this, the FIP will facilitate and promote a value-chain approach that addresses innovation from the seed to the end markets and products in which the right fibre is matched to the right product.

This transfer payment program does not have any repayable contributions.

In 2021-22, the program funded FPInnovations to support 20 research projects that support the forest sector’s innovation agenda.

FIP funds Transformative Technologies and Initiatives through FPInnovations. All FIP-funded projects were reviewed and endorsed through long-standing advisory and approval processes to ensure all forest-based research and development and deployment programs are aligned to address key opportunities and threats facing Canada’s forest sector.

Examples include baseline testing for a forestry truck platooning mobile mapping system, a pulp mill decarbonization plan that was accepted by members and has a long-term vision to reduce emissions by up to 5.2 MT CO2e/y, and the 2022 edition of the Technical Guide for the Design and Construction of Tall Wood Buildings in Canada.
For the Canadian Wood Fibre Centre, a focus to date has been on tools and technologies needed to improve the assessment of forests and wood fibre such as LiDAR (Light Detection and Ranging) technologies to better create forest fibre inventories.  

No evaluation in 2021-22.

Evaluation of Forest Sector Competitiveness Program is planned for completion by December 2024.

The Contribution Program is designed to support the Government of Alberta in the management of mountain pine beetle (MPB) in order to protect forest resources and communities from the negative socio-economic and environmental impacts of the current MPB infestation in Alberta.

The contribution agreement will be directed towards two activity streams: A) MPB management operations, and B) MPB research that supports the efforts of the Government of Alberta to mitigate risks and impacts of the MPB infestation.

The objectives of the Program are to:

• Limit the spread of MPB and mitigate negative consequences of the beetle in Alberta; and,
• Generate knowledge and innovative management techniques through research on MPB.

This program provides non-repayable contributions.

Expected Result: Effective control of MPB populations in Alberta’s forests

Performance indicator: An increased percentage of surveyed sites with decreasing or static MPB populations

2021-22 results:

• 89% of infested sites surveyed in the MPB management area had static or decreasing populations, a further reduction from 43% in 2020-21.

Expected Result: Protection of Alberta’s pine forests at risk from MPB infestation

Performance indicator: Percentage change in the number of infested trees detected in Alberta.

2021-22 results:

• From 2020 to 2021, there was an 81% decrease in the number of infested trees detected during aerial surveys in Alberta.

Expected Result: Forest sector has access to enhanced scientific knowledge pertaining to MPB infestations and related risks

Performance indicator: Number of publications on MPB and related risks

2021-22 results:

There were no peer‐reviewed publications in the 2021‐22 fiscal year. In 2021-22, 22 research projects were selected, and each produced an introductory project summary. MPB-related publications are expected to increase in future years.

No evaluation in 2021-22.

No evaluation is currently planned for this program, as this three-year program is not ongoing and the need for evaluation is low.

The objective of this program is to support Indigenous participation in energy infrastructure projects in British Columbia and Alberta.

This Transfer Payment Program does not include any repayable contributions.

No evaluation in 2021-22.

No evaluation is currently planned for this program. The program is scheduled to end in March 2022, and the need for evaluation is low due to extensive recent evaluation work on closely related programs. If additional funding is secured, then the program will continue to be considered in NRCan’s annual departmental evaluation planning exercise, in accordance with section 42.1 of the FAA and the TB Policy on Results.

NRCan pays 50% of the operating costs of the Canada-Newfoundland and Labrador Offshore Petroleum Board. The province pays the other 50%. This is done pursuant to section 27 of the Canada-Newfoundland and Labrador Atlantic Accord Implementation Act. The funds are drawn from the Consolidated Revenue Fund. Cost recovery regulations put in place in 2016 allow the Board to cost recover up to 100% of eligible costs from industry, which are remitted to the government of Canada and the province of Newfoundland and Labrador on a 50-50 basis.

This transfer payment program does not have any repayable contributions.

The last cycle of the Continuous Audit of Offshore Revenues and Transfers was completed in October 2021.

As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch conducts audits and reports annually on select processes. The Continuous Audit covering March 2020 to March 2021 found that 14 of 15 key controls tested were effective, while one was partially effective.

In respect of each fiscal year and pursuant to the Accord Acts, the Board is required to submit a budget request to Governments for approval by the Minister of NRCan and the Provincial Minister. NRCan officials engaged with the Board to understand the budgetary request and also consulted with the province.

NRCan provided in-kind support for web development and translation of web content. Any costs incurred by the C-NLOPB for the provision of French language services are excluded from cost sharing agreements.

Statutory: Payments to the Newfoundland Offshore Petroleum Resource Revenue Fund

(Canada-Newfoundland and Labrador Atlantic Accord Implementation Act)

The Minister of Natural Resources is responsible under section 214 of the Canada-Newfoundland and Labrador Atlantic Accord Implementation Act to make payments to the province of Newfoundland and Labrador equivalent to the revenue amounts received by Canada in relation to offshore oil and gas activities in the Canada-Newfoundland and Labrador offshore. The federal Newfoundland Offshore Petroleum Resource Revenue Fund Regulations prescribe the time and manner for making the transfer payments. The funds are drawn from the Consolidated Revenue Fund.

This transfer payment program does not have any repayable contributions.

100% of the payments to Newfoundland and Labrador were processed on time and in accordance with the applicable regulations.

The amount of money transferred to Newfoundland and Labrador is largely based on royalties from offshore oil production and is subject to change.  Royalty amounts vary year-to-year as a result of fluctuations in the crude oil prices, exchange rates, changes in production levels, the timing of sales and Corporate Income Tax (CIT) collected.

Payments during this fiscal year also included some forfeitures of exploration licences and administrative monetary penalties issued by the C-NLOPB.

The last cycle of the Continuous Audit of Offshore Revenues and Transfers was completed in October 2021.

As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch conducts audits and reports annually on select processes. The Continuous Audit covering March 2020 to March 2021 found that 14 of 15 key controls tested were effective, while one was partially effective.

In support of Canada’s commitment for greater electrification of transportation, this program addresses key barriers (e.g. access to chargers and range anxiety) by supporting the deployment of the necessary infrastructure. These investments were made to support Canada’s zero emission vehicle sales targets.

Federal investments in the Electric Vehicle and Alternative Fuel Infrastructure Deployment initiative are supporting the establishment of a coast-to-coast network of fast-chargers (Level 3) along the national highway systems, natural gas refuelling stations along key freight corridors and hydrogen refuelling stations in major metropolitan areas. Building upon this, the ZEV Infrastructure program’s focus is to target market segments not previously addressed through federal investments giving Canadians access to EV charging infrastructure where they live, work and play.

The ZEV Infrastructure Program supports the deployment of new zero-emission vehicle recharging and hydrogen refuelling stations in public places, on-street, multi-unit residential buildings, workplace, as well as strategic infrastructure projects for mass transit, urban delivery, and fleet applications.

The initiative uses repayable contributions (with the Government of Canada providing up to 50% of total project costs) to decrease the risk of investing in EV and alternative fuel infrastructure. These projects will be monitored for ability to repay over 10 years, following project completion.

No evaluation in 2021-22.

Evaluation of the Zero Emission Vehicle Infrastructure Program is planned for completion by March 2024.

The project selection criteria for this initiative is informed by ongoing consultations with provinces and territories, as well as experience gained through the delivery of other EV and alternative fuel infrastructure programming.

The program engages potential applicants through a comprehensive communications plan, including social media, and email – levering an existing network of over 1000 stakeholders who have participated in past RFPs, as well as those involved in clean technology and transportation, and industry associations who have expressed interest.

There will be dedicated information sessions focused on growing interest and capacity in Indigenous businesses and communities. 

All provincial/territorial (P/T) governments are engaged bilaterally to better understand their own programming plans. PT governments are also consulted on each project selected for funding in their jurisdiction.

The Program also works closely with the Federation of Canadian Municipalities to engage municipal governments.

The objective of this program is to support active and meaningful Indigenous involvement in issues related to the Trans Mountain Expansion project to address potential project-related impacts and cumulative effects.

This Transfer Payment Program does not include any repayable contributions.

During 2021-22, Natural Resources Canada (NRCan) established 87 new Contribution Agreements (CAs) with Indigenous groups for the following initiatives:

• The Terrestrial Studies Initiative (TSI), 20 CAs during 2021-22, for a total of 73.
  
• The Terrestrial Cumulative Effects Initiative (TCEI) Capacity Funding, 15 CAs during 2021-22 for a total of 74.
  
• Aquatic Habitat Restoration Fund (AHRF) Capacity Funding, 49 CAs during 2021-22 for a total of 89
  
• Phase IV Participant Funding, 3 CAs during 2021-22 for a total of 15.

Through these CAs, close to 90% of the 129 eligible Indigenous groups have accessed one or more of these initiatives. Indigenous groups accessed 78% of allocated funds in 2021-22.

In light of COVID-19 and other pressures including natural disasters, the eligible expenditure period for these initiatives was extended from March 31, 2021 to December 31, 2022 to provide Indigenous groups with sufficient time to complete their projects.

No evaluation in 2021-22.

Interdepartmental evaluation of the Trans-Mountain Pipeline Expansion – Terrestrial Cumulative Effects Initiative, led by ECCC, is expected to be completed by December 2023.

NRCan worked horizontally with partner departments to engage eligible Indigenous Groups around the four accommodation measures it delivers. Engagement takes place through email distribution lists, website information, bilateral meetings, and virtual engagement activities such as workshops.

Throughout 2021-22, NRCan engaged recipients regularly via email, phone and online meetings to ensure compliance with the requirements of the contribution agreements and to support access to accommodation measure funding in a timely manner. NRCan regularly receives feedback from Indigenous groups related to engagement and modifies its engagement strategies to meet emerging needs.

• Natural resources sectors are innovative
• Clean technologies and energy efficiencies enhance economic performance
• Canada’s natural resources are sustainable

The Electric Vehicle Infrastructure Demonstration (EVID) Program supports the demonstration of innovative solutions to technical challenges and other barriers for the deployment of electric vehicle charging infrastructure, including in multi-residential buildings, for cold-weather operation, public transit, autonomous vehicles and hydrogen trucks.

Key outcomes from the program are expected to address potential technical and non-technical barriers for the deployment of charging and refuelling infrastructure for zero emissions vehicles (ZEVs). Outcomes for the EVID Program include:

• Reduced cost and improved performance (e.g. speed), operational safety, and interoperability of charging stations in Canadian climatic conditions;
• Improved performance, operational safety and reliability of H2 refuelling systems for medium- and heavy-duty vehicles in Canadian climatic conditions;
• Increased knowledge of non-technical barriers and innovative approaches, leading to improved business cases.

Contribution payments made under this program are non-repayable.

The $76M Electric Vehicle Infrastructure Demonstration (EVID) Program continued to support the demonstration of next-generation and innovative electric vehicle charging and hydrogen refuelling infrastructure in Canada. The EVID program has supported over 30 projects in total. In 2021-22, EVID supported over 20 projects, including 10 newly announced projects. Projects supported a number of applications, including: novel charging technologies and business models for multi-unit residential buildings and workplaces; bi-directional charging with energy storage; heavy-duty truck charging and hydrogen infrastructure; transit electrification; and battery repurposing. Program funds were leveraged by contributor funds at a ratio of 2:1 (contributors: NRCan), achieving the program’s target.

Examples of projects announced in 2021-22 include:

• $2.3M to the Alberta Motor Transport Association for the Alberta Zero Emissions Truck Electrification Collaboration (AZETEC) project, which will develop and demonstrate a hydrogen fueling station for highway capable, heavy-duty commercial fleet vehicles.
• $1.3M to Hydro-Québec to demonstrate the viability of ultra-fast charging for different types of electric vehicles at urban and highway sites.
• $2.3M to Anvil Crawler Development Corp. to demonstrate a modular, self-contained electric vehicle charging and load management technology that relies mostly on solar charging and energy storage and can be used on or off the grid.

No evaluation in 2021-22.

Evaluation of the Electric Vehicles Infrastructure Demonstration Program is planned for completion by December 2022.

Helping Canadians make their homes more energy efficient reduces energy demand and supports Canadian environmental objectives while making homes more comfortable and more affordable to maintain, as well as creating good, middle-class jobs in their communities.

The program will provide up to 700,000 grants of up to $5,000 to help homeowners undertake energy-efficient improvements to their homes supported by EnerGuide evaluations, which qualify for reimbursement of up to an additional $600.

As of June 8, 2022, just over a year since the Canada Greener Homes Grant Initiative launched on May 27, 2021, over 171,000 applications have been received through the national portal, with tens of thousands of additional applications being processed by partner programs in Quebec and Nova Scotia. The Initiative has also issued $38 million in grants to 10,300 homeowners. Additionally, 446 new energy advisors have been trained and added to the roster, which now totals 1,400 advisors across the country, and 17 additional agreements have been signed to support the recruitment, training, and mentorship of new energy advisors.

Canadians can find out more about the status of applications and steps that have been taken to improve the process in the “Canada Greener Homes Grant Spring 2022 Update”.

No evaluation in 2021-22.

Evaluation of the Greener Homes Initiative is planned for completion by March 2026.

Consulted with stakeholders of the program, including provincial and territorial governments, national Indigenous organizations, industry associations, and stakeholders representing diverse groups of Canadians to ensure that stakeholders are supportive of the program design and its complementarity with existing provincial programming.

Engaged with Provinces and Territories for opting-in to deliver the program, which would require that they meet or exceed program criteria for co-delivery.

Engaged with homeowners and based on feedback received made amendments to the grant portal to simplify the process and reduce the wait times for EnerGuide evaluations.

This program launched two Calls for Proposals (CFPs) in 2021. The February 2021 CFP resulted in the spending of over $59M to fund 72 projects, with approximately 28.9 million trees planted in the 2021-22 fiscal year, representing over 150 tree species planted in more than 500 sites across Canada. Tree planting projects funded through the February 2021 CFP ranged from restoration of habitat for species at risk, restoration of sites devastated by fire or insects, urban tree planting, and capacity-building. Of these 72 projects, 18% were Indigenous-led and almost 40% were led by conservation authorities and not-for-profit organizations.

The second CFP launched in December 2021 focused on large multi-year agreements that will fuel stable demand and investments in capacity expansion for tree nurseries and seed collection. The program received over 200 proposals for the program’s tree-planting and capacity-building streams, with over $1B in funding requested for new projects and $30M requested for capacity-building. Of these 200 proposals, 21% are Indigenous-led, and 26% are urban projects. Bilateral negotiations with provinces and territories are occurring in parallel.

No evaluation in 2021-22.

Horizontal Evaluation of the Natural Climate Solutions Fund, led by NRCan, is planned for completion by March 2026.

In the 2021-22 fiscal year, the program continued to support ongoing dialogue through meetings, focus groups, and webinars with stakeholders and other levels of government. In early 2021, the program launched a public Request for Information (RFI) to solicit feedback from supply chain stakeholder groups to better understand opportunities and inform program design. The program is also co-developing an inclusive governance model for the Indigenous funding stream based on ongoing engagement with Indigenous partners.

In 2021, the program developed a strategic communication strategy to inform Canadians on our progress. The strategic communication strategy outlines a structured and proactive strategy to provide consistent and coherent messaging to external and internal stakeholders and inform the next phases of the program. The strategy also provides the opportunity for the program to clearly communicate its objectives to stakeholders and gain a better understanding of stakeholders’ ability to participate in the program and the conditions necessary for them to be successful in subsequent calls for proposals (CFPs). Deliverables under this strategy that were achieved in the 2021-22 fiscal year include an update of the website and ongoing outreach and targeted webinars to build awareness with priority stakeholder groups.

The Smart Renewables and Electrification Program (SREPs) provides direct financial support to projects that support the transition towards electrification through the deployment of renewable energy projects capable of providing grid services and transformation of the Canadian electricity grid. The program will also decrease barriers to participation for those underrepresented in the energy sector through its equity, diversity and inclusion requirements. Furthermore, SREPs offers a Capacity Building Stream to support the equitable transition to a cleaner electrical grid, helping communities and organizations acquire the knowledge and tools needed to develop renewable energy and grid modernization projects.

SREPs funding is conditionally repayable for recipients who are for-profit and should the project generate profits within the first five years of operation.

SREPs has no targets or expected results before FY 2024-25. As of November 25, 2021, results include eleven projects approved for a total of 630 Megawatts (MW) of renewable energy. Altogether, the total cost of these projects is $1.2 B, $209 M of which has been requested in SREPs funding. Over 90% of applicants have included an Equity, Diversity, and Inclusion Plan.

Performance Indicators:

• Total number of projects supported by SREPs;
• Megawatts (MW) of new renewable energy directly supported by SREPs;
• Percentage of applicants including Equity, Diversity, and Inclusion Plans or making a public Equity, Diversity, and Inclusion commitment;
• Number of job-years of employment generated by projects; and,
• Total public and private investment in projects supported through the Program.
• GHG emissions reductions directly attributable to SREPs and its supported projects.

No evaluation in 2021-22.

Evaluation of Smart Renewables and Electrification Pathways is planned for completion by March 2026.

During program design, Departmental officials invited industry organizations, governments, academia, Indigenous organizations, and other potential proponents including private developers, electricity system operators, and utilities to information sessions on the program. Following program launch, the Department contacted these groups to notify them, and contacted provincial government representatives, both at the working and management level to solicit general feedback.

Program advisors regularly meet with provincial/territorial representatives in targeted provinces to ensure linkages between federal and provincial support for SREPs projects.

Indigenous representatives and non-government subject matter experts are involved in the evaluation process for capacity building stream proposals.

The Strategic Interties Predevelopment Program (SIPP) is intended to advance interprovincial electricity transmission infrastructure projects including the Atlantic Loop and the Prairie link. Funding is provided to help proponents complete project predevelopment work including for example: engineering assessments, community engagement, and environmental and regulatory studies.

Contributions made under SIPP are non-repayable.

No evaluation in 2021-22.

No evaluation is currently planned for this program. The four-year program is not ongoing, and therefore section 42.1 of the FAA does not apply. The program will continue to be considered in NRCan’s annual departmental evaluation planning exercise, in accordance with section 42.1 of the FAA and the TB Policy on Results.

NRCan engaged in targeted outreach to some proponents following program launch.

During program design, Departmental officials invited industry organizations, governments, academia, Indigenous organizations, and other potential proponents including private developers, electricity system operators, and utilities to information sessions on the program. Following program launch, the Department contacted these groups to notify them, and contacted provincial government representatives, both at the working and management level to solicit general feedback.

Program advisors regularly meet with provincial/territorial representatives in targeted provinces to ensure linkages between federal and provincial support for SREPs projects.

Indigenous representatives and non-government subject matter experts are involved in the evaluation process for capacity building stream proposals.

The Minister of Natural Resources is responsible under section 219 of the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act to make payments to the province of Nova Scotia equivalent to the revenue amounts received by Canada in relation to offshore oil and gas activities in the Canada-Nova Scotia offshore. The Federal Nova Scotia Offshore Revenue Account Regulations prescribe the time and manner for making the transfer payments. The funds are drawn from the Consolidated Revenue Fund.

This transfer payment program does not have any repayable contributions.

100% of the payments to Nova Scotia were processed on time and in accordance with the applicable regulations.

Offshore gas production ended in the Canada-Nova Scotia offshore in 2018. The amount of money transferred to Nova Scotia is subject to change based on provincial royalty audits, forfeitures and re-assessments.

The last cycle of the Continuous Audit of Offshore Revenues and Transfers was completed in October 2021.

As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch conducts audits and reports annually on select processes. The Continuous Audit covering March 2020 to March 2021 found that 14 of 15 key controls tested were effective, while one was partially effective.

To meet our net-zero goal, Canada’s economy will need to be powered by two equally important energy sources – clean power and clean fuels (e.g. clean hydrogen, advanced biofuels, liquid synthetic fuels, and renewable natural gas). Clean fuels are expected to play a critical role in ‘hard-to-decarbonize’ sectors such as industry and medium- and heavy-duty freight. Clean fuels make up less than 6% of Canada’s total energy supply, but between 10%-51% or more (up to 60% according to some projections) of Canada’s national energy demand is expected to be met with clean fuels in 2050 to reach its net-zero goal. The rapid and steady deployment of clean fuels will be necessary for Canada to meet its GHG mitigation targets for 2030 and 2050. To achieve the ambitious climate targets and grow the economy, Canada has introduced key measures to incentivize the production and use of clean fuels, such as the Clean Fuels Fund.

The Clean Fuels Fund provides the private sector with cost-shared, conditionally repayable contributions to support the build out of new or retrofit or expand existing, clean fuel production facilities in Canada.

The Clean Fuels Fund has also established a dedicated funding stream for Indigenous-led clean fuel production projects.

Non-repayable contributions are also available for feasibility studies, basic engineering studies and detailed front-end engineering studies for new facilities, facility expansions or facility conversions.

To ensure clean fuel producers have access to a consistent supply of biomass feedstocks, non-repayable support is also available for the establishment of biomass supply chains to improve logistics for the collection, supply, and distribution of biomass materials (e.g., forest residues, municipal solid waste, and agriculture crop residues) as a feedstock in clean fuel production facilities.

Non-repayable contributions are also available to address gaps and misalignment in codes, standards and regulations related to the production, distribution and end-use of clean fuels. This support ensures that, as new technologies evolve and enter the market, they can do so reliably, efficiently and effectively production, distribution, and use of clean fuels while ensuring they are compatible across jurisdictions.

The program held a call for project proposals for clean fuel production projects that was heavily over subscribed. Proposals are being evaluated, and project selection is expected in summer 2022.

The program also launched an open call for project proposals for Indigenous-led production projects.

No evaluation in 2021-22.

Evaluation of the Clean Fuels Fund Program is planned for completion by March 2026.

The Program has undertaken a comprehensive approach to engaging potential applicants.

Before the program officially launched, information sessions were held to finalize elements of program design, and to signal that calls for proposals would be forthcoming.

Information sessions were held on the day of program launch, as well as twice during the call for proposals, to address questions from the potential applicants.

A comprehensive social media campaign was also undertaken, to raise awareness at each stage of the process.

The program has a dedicated funding stream for Indigenous led projects, and also delivered several Indigenous engagement sessions to build awareness and address questions.