Mr. Chair, and committee members, I'm honoured to join you today on behalf of the Montreal-based water accelerator, AquaAction.
AquaAction's recommendations speak to Canada's strategic national interests at the confluence of fresh water and economic security.
In our view, these practical and common sense suggestions belong in every party's platform. It's time to treat Canada's freshwater protection as both an economic and environmental issue.
Let me be blunt: Canada's water-tech sector must be treated as a core component of our freshwater protection strategy. Right now it's not.
Due to a lack of focus and specific federal support for water technology to address the water crisis, Canada's water innovators are being lured south and abroad by more enticing jurisdictions, along with their start-ups, IP and jobs.
We appreciate the government's important net-zero investments, but we would argue that these measures position Canada for a low-emission economy without adequately positioning us for a water-constrained economy. It's important to remember that the climate crisis is a water crisis. We hear this over and over.
The Canada water agency's coordination mandate and its data and science strategy are important to freshwater protection, but also for it to lead and deliver water security results it needs to be coordinating a whole-of-government approach around Canada water innovation.
What can be done?
First, we recommend that the government must synchronize ISED's clean-tech initiatives with the Canada water agency's watershed protection efforts. Currently, the agency lacks the necessary mandate and resources, which fall under ISED's remit through programs like IRAP, the clean growth hub, SDTC and SIF. It's crucial to align the CWA's science and data strategy on fresh water with ISED's tech programs. It would help if Minister Champagne and Minister Guilbeault issued that direction to their officials.
Part of this challenge is that ISED's clean-tech programs don't specifically focus on water tech, and they should, especially considering Canada's growing water scarcity and related environmental challenges.
On the same point, establishing a partnership between the National Research Council, which is also under ISED, and the CWA would enhance collaboration in water-tech research and industrial innovation.
We suggest that the NRC develop or upgrade its R and D facility specifically for water technology. Accessible, state-of-the-art facilities would enable innovators to conduct testing and validation of their technologies.
Second, we recommend increasing direct support for water-tech accelerators at both the federal and provincial levels. Establish targeted performance-based grant programs for enablers like AquaAction, Cteau, and Foresight across Canada.
We are better positioned to effectively de-risk and allocate resources in line with regional water innovation needs and to demonstrate tangible impact. AquaAction has proven this model in Quebec. The AquaEntrepreneur program, supported by the ministry of economy, innovation and energy, has led to successful adoption of new technologies at the municipal level and industries across Quebec, positively impacting the environment and generating well over $100 million in annual revenue for the economy to address this water crisis. By matching federal support to such provincial investments, Canada can significantly amplify the success of its water tech sector.
Third, we recommend recognizing the importance of local municipalities and the crucial role of the Federation of Canadian Municipalities in building climate and water resilience at the city level. The federal government must find ways to incentivize water-tech projects with cities to facilitate young innovators' access to real-world test sites in our own towns and cities. You just heard this from Patricia.
This would allow for quicker market entry and, by extension, our freshwater protection. On this point I would urge this committee to recommend that Canada expand the scope of the green municipal fund to include pilot projects related to water technologies. If budget constraints make it difficult to increase GMF funding, then reallocate funding within the GMF envelope and empower the Canada water agency to facilitate these changes.
Finally, we recommend that Canada expand fiscal measures, like the investment tax credit for clean technology manufacturing to specifically include water-tech investment. It does not.
The recently announced fiscal measures should be designed by Finance Canada to ensure broader applicability beyond clean energy or carbon capture or emissions-reducing technology. Targeted fiscal support is crucial for competitiveness. I see this starkly in the Great Lakes region, where AquaAction operates.
To summarize, it's time to treat Canada's freshwater protection as both an economic and environmental issue. Technology is the execution piece we have been ignoring.
Technology is the execution piece we have been ignoring. Without focused programming and fiscal supports for water tech innovation, Canada, water start-ups will keep leaving Canada, along with their IP and jobs. We just heard about this.
Our recommendations will enhance Canada's fresh water protection, nurture innovation and build our competitiveness in a water-constrained economy—