- Canada made noteworthy progress in the 2023 S&P Global's Renewable Market Attractiveness Rankings, reaching 14th place and drawing attention from major players like Northvolt.
- This Swedish battery producer's interest underscores Canada's potential as a clean energy hub.
- Yet, despite these achievements, Canada faces looming challenges that question its long-term sustainability commitment.
In 2023, Canada achieved a commendable rise in the S&P Global’s Renewable Market Attractiveness Rankings.
Climbing six positions, Canada now stands at the 14th rank out of 37 countries. This remarkable jump was attributed to the Canadian government’s initiatives to encourage clean energy investments.
Canada’s Rise in Rankings
Timothy Stephure, S&P’s director of global power and renewables, accentuated the influence of the new investment tax credits from Ottawa’s recent budget.
This move was seen as Canada’s response to Washington’s extensive clean energy spending from the previous year. While the U.S. took the lead in the rankings, it was closely trailed by Germany, China, Japan, and France.
The assessment criteria encompassed 18 distinct factors such as policy framework, market size, and investor friendliness.
Canada’s Clean Energy Initiatives and Challenges
2023 is deemed a pivotal year for clean energy, with Canada at the forefront.
Major collaborations between the federal and Ontario governments resulted in two significant deals with Volkswagen AG and Stellantis for battery factories in Ontario. Moreover, Northvolt, a renowned Swedish battery producer, is speculated to build a substantial factory in Quebec.
Climate Institute’s president, celebrated the 2023 federal budget as a milestone for Canada’s clean growth.
Nevertheless, a comparative report by Clean Prosperity and The Transition Accelerator pinpointed areas where Canada’s incentives lagged behind those in the U.S. While Canada’s efforts are noteworthy, they did not secure a spot in S&P’s “most attractive” category. Factors like Alberta’s hesitance on large wind and solar projects raised questions on its dedication to net-zero objectives.
Path Forward for Canada
Canada’s progress in bolstering clean energy investments is evident. However, challenges persist. Crafting a national strategy that synergizes economic expansion with ecological conservation will be pivotal for Canada’s ascent in subsequent evaluations.