Driving the Growth of Green Start‑ups in Canada

Annex A. Mapping of green start-up support policies in Australia, Canada, Denmark, Portugal and the United States

Australia

Table A A.1. Policy mapping for national green start-up support policies – Australia

Name of policy measure	Type of policy measure	Description
Australian Renewable Energy Association (ARENA)	Direct support for green start-ups	ARENA provides funding and support to accelerate the development and commercialisation of renewable energy technologies, reduce emissions, and contribute to Australia's renewable energy goals. This includes grants and pilot opportunities to help new projects get off the ground. Business development managers work closely with start-up applicants to ensure project success.
Clean Energy Finance Corporation (CEFC)	Direct support for green start-ups	The CEFC is Australia’s specialist climate investor, dedicated to reducing emissions in the pursuit of net zero. The CEFC invests in cutting-edge technologies to generate, store, manage, and transmit clean energy. Through its discounted finance programs, the CEFC facilitates the transition to sustainability for Australians. Early-stage and growth capital are available through the CEFC’s Clean Energy Innovation Fund, which targets start-ups with scalable clean energy technologies. The CEFC also offers accelerator programmes and co-working opportunities for start-ups.
Renewable Energy Target (RET)	Direct support for green start-ups	The RET is an Australian Government scheme that creates a market to incentivise the generation and use of renewable energy, supporting the transition towards a more sustainable and less carbon-intensive energy system. It creates a revenue stream for green start-ups through renewable energy certificates, which companies can access by producing solar, wind, or hydro power and which can be traded or sold.
Powering Australia	Direct support for green start-ups	Powering Australia is a comprehensive plan to help the Australian Government achieve its emissions reduction targets of 43% by 2030 and net zero by 2050. The plan includes funding and support for the commercialisation of renewable energy technologies, access to industry growth centres and common user facilities to reduce costs and risks for start-ups, and the facilitating of connections between start-ups, manufacturers and other supply chain actors.
Commonwealth Scientific and Industrial Research Organisation’s (CSIRO) ON programme	Direct support for green start-ups	The ON programme equips researchers with the entrepreneurial and commercialisation skills they need to help them engage with business and drive greater uptake of their research and ideas. It includes accelerator programmes for green start-ups, access to R&D support through CSIRO’s research expertise and capabilities, collaboration opportunities between green start-ups and industry partners, and funding opportunities.
Energy Lab	Building green entrepreneurial ecosystems	EnergyLab is a climate tech accelerator that offers a range of programmes tailored to overcome the barriers climate tech start-ups face when scaling up their technologies. These programmes are often funded by public entities. Energy Lab also collaborates with ARENA to help start-ups with access to grants and supports services.
Environmentally Sustainable Procurement (ESP) Policy	Building green entrepreneurial ecosystems	The ESP Policy is the new guide that Australian Government departments and agencies will use in their procurement decision-making when choosing suppliers. It aims to improve environmental sustainability across three focus areas: climate, the environment and circularity. The ESP will help the Australian Government to use its significant purchasing power to drive change across the industry. It establishes, for the first time, a measurement and reporting framework to track environmental outcomes. The reporting framework specifies a range of metrics, including Green Star certification, that suppliers can use to measure sustainability outcomes.
Australian Carbon Credit Unit (ACCU) scheme	Building green entrepreneurial ecosystems	To encourage carbon abatement activities, the Australian Government provides incentives called Australian Carbon Credit Units (ACCUs). This is a voluntary initiative that supports projects that reduce emissions or store carbon, rewarding participants with ACCUs, which can be sold to generate income. This provides a revenue stream for green start-ups, who can sell tradable carbon credits on carbon markets. It also boosts demand for green start-ups’ goods and services by encouraging individuals and businesses to run projects that reduce emissions or store carbon by, for example, using new technology, upgrading equipment, changing business practices to improve productivity or energy use, and changing the way vegetation is managed.
Climate Active	Building green entrepreneurial ecosystems	Climate Active is an Australian Government programme that drives voluntary climate action by Australian businesses. The brand represents Australia’s collective effort to measure, reduce, and offset carbon emissions to lessen the negative impact on the environment. The Climate Active trademark makes it easier for consumers to identify and choose brands committed to sustainability, boosting demand for green products and services. Climate Active claims are subject to independent third-party verification to support the integrity of the carbon neutral claim.

Canada

Table A A.2. Policy mapping for national green start-up support policies – Canada

Name of policy measure	Type of policy measure	Description
National Research Council of Canada’s Industrial Research Assistance Program (NRC IRAP)	Direct support for SMEs	NRC IRAP has been in place for more than 75 years. With an annual budget of around CAD 515 million in 2025-26 and 275 Industrial Technology Advisors (ITAs), it is a key source of financial and non-financial support for innovative SMEs in Canada. While NRC IRAP as a whole is sector agnostic, it provides tailored assistance for SMEs through its cleantech sector team. NRC IRAP also has a new IRAP Cleantech programming, to replace Sustainable Technology Development Canada.
Innovative Solutions Canada (ISC)	Direct support for green start-ups	ISC is the only government-wide programme that leverages procurement to connect federal departments to Canadian SMEs and their innovative technologies. ISC offers three streams to support the development and commercialisation of Canadian technologies: Challenge: Grants and contracts to develop new and novel solutions that enhance operational capabilities of government or address market gaps. Testing: R&D contracts for the testing of prototypes in real life settings to address operational needs of government. Commercialisation: Government purchases of successfully tested innovations that are market ready. By combining grants with procurement, ISC allows the government to act as a first customer of innovation and use its purchasing power as a flexible and strategic tool for funding the development, testing and adoption of Canadian-made solutions.
Impact Canada	Direct support for green start-ups	Impact Canada is based within the Impact and Innovation Unit of the government’s Privy Council Office. It issues challenges and prizes relevant to green entrepreneurs, an example being the recent CAD 20 million Food Waste Reduction Challenge. This funded several projects to develop prototypes and demonstrate new technologies that can reduce food waste.
Energy Innovation Programme (EIP)	Direct support for green start-ups	Natural Resources Canada’s EIP provides support for ventures involved in research, development, and demonstration projects in the energy sector. It is structured around periodic funding calls for projects in specific fields, with recent examples being the calls for proposals on Clean Fuels, Mining Decarbonization Demonstration, and National Energy Systems modelling. A range of different types of organisations receive funding through the EIP, which is delivered in the form of grants.
BDC Capital’s Cleantech Practice	Direct support for green start-ups	BDC Capital launched the CAD 600 million Cleantech Practice in 2018, which now has a portfolio of 50 companies. For each CAD 1 invested via the fund, CAD 7.3 has been raised by the companies via private investors, amounting to more than CAD 3.5 billion in private investment. The Cleantech Practice is no longer making new investments, focusing instead on supporting its current portfolio.
BDC Capital’s Climate Tech Fund	Direct support for green start-ups	The CAD 500 million Climate Tech Fund aims to provide patient capital and support for firms developing technologies that can reduce greenhouse gas emissions. It generally invests large amounts over long time horizons in relatively capital-intensive ventures, with a focus on stimulating private investment alongside their commitments. .
BDC Capital’s Sustainability Venture Fund	Direct support for green start-ups	BDC Capital’s CAD 150 million Sustainability Venture Fund invests in early-stage businesses developing technologies that contribute to a net-zero economy. The Sustainability Venture Fund focuses on “capital-light” ventures, including software-based business models and hardware-enabled software companies.
Canada Growth Fund (CGF)	Direct support for green start-ups	The CGF is an arms-length, CAD 15 billion public investment fund. Green technologies are the CGF’s core focus, with emissions reductions being one of its key strategic objectives towards fulfilling its mandate of supporting the growth of the Canadian economy as it progresses on its path towards becoming greener. Since its launch in 2023, it has made a total of 13 investments totalling CAD 2.6 billion, as of May 2025. These are a combination of investments into private funds, established companies, and new cleantech companies
Strategic Response Fund	Direct support for green start-ups	The Business Innovation and Growth component of ISED’s Strategic Response Fund (formerly the Strategic Innovation Fund, or SIF) provides funding for Canadian companies to develop and commercialise innovative products and services. The SRF provides a minimum of CAD 10 million in funding to projects aligned with the fund’s current priorities, among which are clean technologies, critical minerals, and industrial transformation.
Low Carbon Economy Fund (LCEF)	Direct support for green start-ups	The LCEF was launched by the Canadian government in 2017 and was recapitalised in 2022-23 via the 2030 Emissions Reduction Plan issued under the Canadian Net-Zero Emissions Accountability Act. The LCEF comprised four funding streams. The Challenge Fund had an allocation of CAD 170 million to support the deployment of proven, low carbon technologies at Technological Readiness Levels of 8 or above, with funding amounts ranging from CAD 1 to 25 million. Meanwhile, the Implementation Readiness Fund, tended to focus on projects at a less advanced stage.
Trade Commissioner Service (TCS)	Direct support for green start-ups	The TCS of Global Affairs Canada works with companies with viable products that are ready for export. It helps entrepreneurs to find first customers abroad by leveraging a large network of well-connected experts and advisors – including cleantech specialists – based in the TCS’ six regional offices in Canada and its 160 offices worldwide. The TCS has a cleantech team for supporting the internationalisation of green companies specifically and dedicated support for cleantech companies is available in approximately 120 of the TCS’ international offices. Meanwhile, TCS’ 12 Canadian Technology Accelerators (CTA) provide soft-landing opportunities for high-potential, high-growth Canadian companies to explore market opportunities in 12 locations worldwide.
Export Development Canada (EDC)	Direct support for green start-ups	EDC is an export credit agency and a provider of loans and equity investment. It also provides knowledge services and connections with potential customers in other countries Dedicated support for cleantech companies is available through the EDC’s climate tech practice, with approximately 500 companies having been assisted through the practice.
Clean Growth Hub (CGH)	Direct support for green start-ups	Throughout its existence, the CGH helped clean technology innovators and adopters to navigate the public support landscape. It provides tailored advice to cleantech companies and makes introductions to relevant programmes or organisations.
Pan Canadian Approach to Pricing Carbon Pollution (PCAPCP)	Building green entrepreneurial ecosystems	The PCAPCP was introduced in 2019 to establish a unified minimum carbon price of CAD 20 per tonne of CO2 that would apply for large industrial emitters across the country. The framework also stipulated that the national carbon price would increase by CAD 10 per tonne of CO2 each year so as to reach CAD 50 per tonne by 2022. Provinces and territories have the option of developing their own carbon pricing systems provided that they comply with the minimum national stringency standards. The government subsequently proposed in the Healthy Environment and a Healthy Economy Plan to further increase the national carbon price by CAD 15 per tonne of CO2 each year from 2023 to 2030, although this is now under review and liable to change.

Denmark

Table A A.3. Policy mapping for national green start-up support policies – Denmark

Name of policy measure	Type of policy measure	Description
Export and Investment Fund of Denmark	Direct support for green start-ups	As part of the 2022 Agreement on Strong and Innovative Companies, the Danish Growth Fund, Export Credit Agency (EKF) and Danish Green Investment Fund were merged into a single fund: the Danish Export and Investment Fund. A focus of this fund is to strengthen the green transition, including through support for green start-ups.
Innovation Fund Denmark	Direct support for green start-ups	Innovation Fund Denmark is a public investment fund that supports entrepreneurs, businesses and researchers with the potential to develop solutions to societal challenges. Investments are evaluated based on social welfare and environmental factors in addition to financial results, and there is a focus on supporting high risk and high potential projects that may have otherwise found it difficult to obtain finance. One of the three areas that the fund prioritises is climate, environment and green change.
Technology Development and Demonstration Programmes	Direct support for green start-ups	Denmark has a number of technology development and demonstration programmes, which are an important source of funding for entrepreneurs looking to develop innovative technologies. Of relevance to green entrepreneurs are the Environmental Technology Development and Demonstration Programme, the Energy Technology Development and Demonstration Programme – which supports new technologies in the field of energy that contribute to Denmark’s climate objectives – and the Green Development and Demonstration Program, which funds projects that solve important challenges for the Danish food industry.
Export Credit Agency (EKF)	Direct support for green start-ups	EKF provides support to start-ups and firms looking to export. It operates an accelerator programme dedicated to Danish companies looking to export clean technologies. A total of DKK 30 million has been made available to finance preparatory business activities as well as short-term visits to potential export markets. EKF also issues credit guarantees, which allow Danish businesses to offer finance to their overseas customers without assuming any credit risk or delay in payment.
Climate Agreement for Waste Management	Direct support for green start-ups	The Climate Agreement for Waste Management sets out a commitment to create a climate-neutral waste sector by 2030 by transitioning from incineration to recycling. This agreement includes measures to improve recycling companies’ access to recyclable waste and support businesses in developing and implementing technologies for recycling.
Beyond Beta	Building green entrepreneurial ecosystems	Denmark’s publicly funded “Beyond Beta” incubator, delivers pre-accelerator and accelerator programmes to high potential start-ups, including those in green sectors.
Business Lighthouses	Building green entrepreneurial ecosystems	The 2022 Agreement on Strong and Innovative Companies set aside DKK 1 billion for the formation of eight local business lighthouses, tasked with future-proofing Danish strengths. The lighthouses are consortia of private and public actors tasked with future-proofing Danish strengths and the majority focus on green technology areas.
National Cluster Organisations	Building green entrepreneurial ecosystems	In January 2021, Denmark launched 13 publicly funded cluster organisations, including a cluster dedicated to the environmental sector (CLEAN) and a cluster dedicated to the energy technology sector. These organisations aim to build a bridge between Denmark’s research and business communities, hosting events which bring companies, research institutions and policy makers together in order to facilitate the formation of strategic partnerships. The national clusters also support entrepreneurs in realising their growth aspirations by connecting businesses with potential domestic and overseas partners to spur innovation.
2020 Climate Act	Building green entrepreneurial ecosystems	The 2020 Climate Act establishes the target of reducing Denmark’s greenhouse gas emissions in 2030 by 70% compared to the 1990 level. The law also stipulates that at least every five years, a new national climate target must be set for the subsequent ten-year period that is at least as ambitious as its predecessor. The Danish Council on Climate Change reports annually to the Minister for Climate, Energy and Utilities on Denmark’s progress in relation to its climate targets.
Climate Agreement for Energy and Industry 2020	Building green entrepreneurial ecosystems	The Climate Agreement for Energy and Industry 2020 includes measures to bolster the demand for green goods and services in Denmark. These include tax incentives to accelerate the transition of the heating sector away from fossil fuels and towards green district heating or electric heat pumps, energy savings requirements for public buildings, and investments in renewable energy and green tech
Partnership for Green Public Procurement	Building green entrepreneurial ecosystems	The Partnership for Green Public Procurement develops common procurement goals that its members commit to implementing. Among its members are 25 municipalities as well as the Ministry of the Environment and certain universities and regional governments. These entities join the partnership on a voluntary basis.

Portugal

Table A A.4. Policy mapping for national green start-up support policies – Portugal

Name of policy measure	Type of policy measure	Description
Vouchers for Startup – New Green and Digital Products	Direct support for green start-ups	The main financial instrument used to support green start-ups in Portugal is the Vouchers for Startup – New Green and Digital Products. This measure offers non-refundable grants of up to EUR 30 000 for entrepreneurs and start-ups to support projects in the green and digital areas. To be eligible, start-ups must be incorporated in Portugal and be less than 10 years old.
Call INNOV-ID	Direct support for green start-ups	The Call INNOV-ID initiative supports early-stage firms with growth potential in securing venture capital investment, focusing on projects or firms that contribute directly or indirectly to decarbonization, process, product and material sustainability, energy efficiency and sustainability, and the circular economy. Applicants must have growth potential and be in the pre-seed, seed or early stages, working on prototypes, proof of concept, or product or product-market-fit validation. Start-ups (i.e. less than 8 years old ) can receive EUR 100 000 through the scheme, which is managed by Portugal Ventures.
Born from Knowledge (BFK) programme	Direct support for green start-ups	The BFK programe is promoted by the National Innovation Agency. It currently has three programmes to give visibility to scientific and technological research and innovation: BfK Awards, BfK Ideas and BfK Rise. The BfK Awards programme provides visibility and a small cash prize to projects and companies for R&D projects. One of the award evaluation criteria is impact on society, including economic, social, environmental or cultural terms, so winning firms often work on sustainability issues.
Powering Australia	Direct support for green start-ups	Powering Australia is a comprehensive plan to help the Australian Government achieve its emissions reduction targets of 43% by 2030 and net zero by 2050. The plan includes funding and support for the commercialisation of renewable energy technologies, access to industry growth centres and common user facilities to reduce costs and risks for start-ups, and the facilitating of connections between start-ups, manufacturers and other supply chain actors.
Commonwealth Scientific and Industrial Research Organisation’s (CSIRO) ON programme	Direct support for green start-ups	The ON programme equips researchers with the entrepreneurial and commercialisation skills they need to help them engage with business and drive greater uptake of their research and ideas. It includes accelerator programmes for green start-ups, access to R&D support through CSIRO’s research expertise and capabilities, collaboration opportunities between green start-ups and industry partners, and funding opportunities.
Innovation and Incubation Centres	Building green entrepreneurial ecosystems	The planned Innovation and Incubation Centres will be equipped to support new businesses. Some will have specific sectoral specialisations, including potentially in green sectors.
Collaborative Laboratories (CoLABs)	Building green entrepreneurial ecosystems	CoLABs are entities that seek to produce and disseminate knowledge through research and innovation agendas. CoLABs may be established as companies or private non-profit associations and must include at least one company and an R&D unit evaluated and financed by the Foundation for Science and Technology (FCT) or a State Laboratory. Services provided vary across labs, but often include research support, lab facilities, technology transfer supports and more. There are 41 CoLABs, each awarded this status by the FCT. These collaborative laboratories are under the responsibility of the National Innovation Agency and 35 of them are funded through the Recovery and Resilience Programme (RRP). Of these, five are working in the areas of energy and sustainability and another four are working in the areas of climate, space and ocean.
Resolution 123 of 2023 on ecological criteria for public tenders	Building green entrepreneurial ecosystems	The Portuguese Council of Ministers in 2023 published a resolution establishing ecological criteria for public tenders, as part of the national strategy for green public procurement. These criteria include taking into consideration the environmental sustainability of the goods or services procured and establishing minimum environmental sustainability standards.
National Network of Incubators (RNI)	Building green entrepreneurial ecosystems	The RNI, managed by Startup Portugal, facilitates knowledge exchange and resource sharing across incubators to improve the services offered to entrepreneurs. The approximately 140 incubators in the network offer services such as co-working spaces, networking events, mentoring, financial support, strategic consulting, marketing and communication support, accounting and legal services, prototyping support and more
Energy Transition Training Centres	Building green entrepreneurial ecosystems	In 2024, IEFP created Energy Transition Training Centres to deliver new training programmes that offer qualifications in areas such as renewable energy, water efficiency and sustainable mobility.

United States

Table A A.5. Policy mapping for national green start-up support policies – United States

Name of policy measure	Type of policy measure	Description
Advanced Research Projects Agency-Energy (ARPA-E)	Direct support for green start-ups	ARPA-E funds high-risk, high-reward research in energy technologies, aiming to bridge the gap between basic research and commercial deployment. Since its inception, ARPA-E has supported numerous groundbreaking projects in areas like energy storage and grid modernisation.
Department of Energy (DOE) Loan Programs Office (LPO)	Direct support for green start-ups	The LPO offers loan guarantees and direct loans to innovative clean energy projects that might struggle to secure private financing. This programme has been instrumental in supporting high profile green companies during their formative years. The LPO was awarded a USD 100 billion additional loan authority through the Inflation Reduction Act.
Department of Energy (DOE) Office of Clean Energy Demonstrations (OCED)	Direct support for green start-ups	OCED was established in 2021 to fund and manage more than USD 25 billion worth of demonstration projects spanning a range of fields including advanced nuclear, clean hydrogen, carbon management, industrial decarbonisation, and long-duration energy storage technologies. The funding is distributed through funding opportunity announcements, which invite candidates to apply for funding to demonstrate a particular type of green technology. The awarded amounts per project often extend beyond USD 10 million.
Department of Energy (DOE) Solar Energy Technologies Office (SETO)	Direct support for green start-ups	The SETO offers funding for research and development into solar technologies through open, competitive application processes. SETO focuses on achieving the goals of the SunShot Initiative, which seeks to make solar energy cost-competitive with other forms of electricity. It encourages collaborative partnerships among industry, universities, national laboratories, federal, state, and local governments and non-government agencies and advocacy groups.
Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programmes	Direct support for green start-ups	These programs provide early-stage funding to small businesses developing innovative technologies, including those in the clean energy sector. They serve as a critical source of non-dilutive capital for startups. The US SBIR has federal agencies allocating 3.2% of their extramural research budgets (approximately USD 4 billion). Scholars estimate that SBIR has achieved an 8-10 fold return on investment for the US taxpayer.
Empowering Rural America (ERA) programme	Direct support for green start-ups	Through the Inflation Reduction Act, the ERA has been awarded USD 9.7 billion to support clean energy at rural electric co-operatives. The funding will be allocated to 16 finalists to support them in deploying clean, affordable and reliable energy to rural areas across 23 states.
Greenhouse Gas Reduction Fund (GGRF)	Building green entrepreneurial ecosystems	Established through the Inflation Reduction Act, the Greenhouse Gas Reduction Fund (GGRF) provides USD 27 billion to finance clean energy projects, particularly in underserved communities. Within the GGRF is the USD 14 billion National Clean Investment Fund (NCIF) programme, which awarded funds to three grant recipients to establish national clean financing institutions that deliver accessible, affordable financing for clean technology projects across the country.
Clean Electricity Production Tax Credit (PTC)	Building green entrepreneurial ecosystems	The PTC is available to taxpayers with a qualified facility and energy storage technology placed in service after 31 December 2024. The credit starts at a base rate of 0.3 cents per kilowatt hour of electricity produced at a qualified facility and sold to an unrelated person. A higher base rate (1.5 cents) applies to small facilities, with a maximum output of less than 1 megawatt.
Clean Electricity Investment Tax Credit (ITC)	Building green entrepreneurial ecosystems	The ITC is an emissions-based incentive that is neutral and flexible between clean electricity technologies. It is available to taxpayers with a qualified facility and energy storage technology. The base amount of the ITC is 6% of the qualified investment, increasing to up to 30% for facilities meeting prevailing wage and registered apprenticeship requirements.