Climate change solutions and cleantech in investment

Canada Asia Pacific Foundation Investment Monitor Report Climate solutions and cleantech: Building a greener Indo-Pacific region through foreign direct investment Provides new insights into two-way foreign direct investment flows between Canada and Asia in the renewable energy and electric vehicle (EV) clean technology sectors.

Canada’s 2022 Indo-Pacific Strategy identified clean technology and renewable energy as priority areas for future economic partnership between Canada and Asia. Understanding the key trends in Canadian and Asian renewable energy and EV investment relationships over the past 20 years helps today’s Canadian cleantech companies navigate regional supply chains across the Indo-Pacific’s fast-growing and dynamic economies. will be in a better position for successful integration.

Important points

• Climate change solutions and cleantechIn the 2nd Annual Investment Monitor Report of 2024, you will find: Renewable energy sectorshare of Canadian foreign investment 70% Proportion of two-way renewable energy investments between Canada and the Asia-Pacific region over the 20-year period 2003-2023. EV fieldmeanwhile, 64% The share of two-way investment was driven by Asian economies.

• At the national level, the report shows that Canada is diversifying its investments from China and that two-way investment with China is increasing. Australia, Taiwan, India, and South Korea It started in the 2010s and since then. 67% Total bilateral investment. China is Canada’s fifth largest investment partner. 3.4 billion Canadian dollars was replaced between 2003 and 2022, which is mainly due to investments in the period 2000 to 2010 and does not reflect recent trends.

• At the local level, three of them AustraliaStates – New South Wales, Western Australia and Queensland – occupy twenty five% Share of Canadian investment in renewable energy and EVs in the region. Regarding investment on the Canadian side, Ontario Canada is the largest destination for investment in renewable energy and EVs from Asia and attracts most investors. 90% This investment (10.4 billion Canadian dollars) for the past 20 years. Nearly half of that amount has been invested in Ontario over the past four years, suggesting the province’s efforts to become an EV hub may be starting to pay off.

• Climate solutions and cleantech: Building a greener Indo-Pacific region through foreign direct investment Ends with an overview of the role State-owned enterprises (SOEs) A discussion of Canada and Asia’s role in clean technology investment and how the report’s findings may impact future investments.

• The data reveals that the majority of state-owned enterprises’ investments are from. canadian state owned companyall Canadian pension funds; 74% Percentage of total SOE two-way investment since 2003. 98% Of this investment from Canadian pension funds, past 5 yearswhich suggests that these Canadian SOEs expect continued growth in the clean technology sector.

• Finally, the findings of this Investment Monitor report suggest a deepening investment relationship between Canada and Asia in clean technology. Many countries (including Canada, Australia, Japan, and South Korea) have committed to net-zero emissions by 2050, and achieving these goals will require expanding the production and use of clean technologies. This common purpose provides opportunities for collaboration between Canada and Asia through two-way investment in natural resources, EVs and renewable energy, and the sharing of expertise.

This report draws on data from the Canada Asia Pacific Foundation’s Investment Monitor database. This database provides information on Canadian and Asia-Pacific investment flows at the national and subnational levels. This database is publicly available on the Investment Monitor website. investmentmonitor.ca.

The Asia Pacific Foundation of Canada is grateful for the sponsorship and support received from Export Development Canada for the Investment Monitor project.