Report on Strategic Investment in Sustainable Manufacturing to Advance Canadian SDGs

A total of $108 million CAD has been allocated to advance sustainable manufacturing technologies within Canada. This investment is comprised of a $37 million contribution from Next Gen Manufacturing Canada (NGen), the organization managing the Canadian Global Innovation Cluster for Advanced Manufacturing, and an additional $71 million from industry partners. The funding supports 13 distinct projects involving 32 companies, directly contributing to Canada’s progress on several United Nations Sustainable Development Goals (SDGs).

Alignment with Sustainable Development Goals (SDGs)

This initiative represents a significant public-private partnership aimed at achieving key sustainability targets. The projects are strategically aligned with the following SDGs:

SDG 9: Industry, Innovation, and Infrastructure

The core of the investment is to foster innovation and upgrade industrial infrastructure. By funding 13 collaborative projects in advanced manufacturing, the initiative promotes resilient, sustainable industrialization. Projects focusing on automated graphene production and carbon nanofibres exemplify the drive towards building cutting-edge industrial capabilities.

SDG 13: Climate Action

A primary objective of the funded projects is to take urgent action to combat climate change. Technologies for carbon capture, utilization, and greenhouse gas reduction are central to this effort. The investment directly supports projects that will lead to a measurable reduction in the carbon footprint of Canadian manufacturing.

SDG 12: Responsible Consumption and Production

The initiative promotes sustainable production patterns by developing more efficient and less wasteful manufacturing processes. As noted by NGen CEO Jayson Meyers, these cleantech efforts are designed to spur “significant productivity improvements,” thereby reducing resource consumption and waste. Projects in sustainable automotive manufacturing and AI-powered energy management are key examples.

SDG 7: Affordable and Clean Energy

By investing in technologies such as artificial intelligence-powered energy management systems, the program aims to improve energy efficiency within the manufacturing sector. This contributes to ensuring access to affordable, reliable, and sustainable energy for industrial processes.

SDG 11: Sustainable Cities and Communities

The development of sustainable building materials is critical for creating resilient and sustainable urban environments. The investment in Carbon Upcycling’s project to produce sustainable cement through carbon capture directly supports the creation of greener infrastructure for future cities.

SDG 17: Partnerships for the Goals

The funding model itself embodies SDG 17, demonstrating a multi-stakeholder partnership between a government-backed cluster (NGen), federal bodies (Environment and Climate Change Canada, NRC IRAP), and private industry. Minister for AI and Digital Innovation, Evan Solomon, highlighted that “these collaborative projects highlight the power of innovation to drive real progress.”

Project Portfolio Overview

The investment is distributed across a portfolio of projects targeting critical areas for sustainable development:

• Sustainable Cement Production: A flagship project by Carbon Upcycling involves a new carbon capture facility at the Ash Grove cement plant. This directly addresses SDG 11 and SDG 13 by reducing emissions from a key industrial process.
• Advanced Materials for Sustainability:
  1. Development of carbon nanofibre-reinforced rods by Carbonova and Oilify, advancing industrial innovation (SDG 9).
  2. Automated, large-scale graphene production by Cobionix, Macrotek, and Universal Matter, fostering new technological capabilities (SDG 9).
• Energy and Resource Efficiency:
  1. An AI-powered energy management system developed by Panevo and Canada Bread Company to optimize energy use (SDG 7, SDG 12).
  2. A project in sustainable automotive manufacturing by Mosaic and Tiercon to improve production patterns (SDG 12).

Strategic Context and Funding Framework

This funding is part of NGen’s broader strategy to accelerate cleantech adoption in manufacturing. It stems from the $100-million Sustainable Manufacturing Challenge launched in March 2024, which called for collaborative projects in high-impact areas like carbon capture and greenhouse gas tracking. This follows previous NGen investments, including $32.3 million for 15 clean manufacturing projects and $21.4 million in deep tech sectors such as EV, quantum, and space manufacturing, demonstrating a sustained commitment to advancing SDG 9 across multiple high-tech fields.

Which SDGs are addressed or connected to the issues highlighted in the article?

SDG 9: Industry, Innovation, and Infrastructure

• The article’s central theme is the investment in “Advanced Manufacturing,” “sustainable manufacturing technology,” and “innovation.” This directly aligns with SDG 9, which focuses on building resilient infrastructure, promoting inclusive and sustainable industrialization, and fostering innovation. The funding for 32 companies and 13 projects, including deep tech like AI and quantum, is a clear effort to advance Canada’s industrial and technological capabilities.

SDG 13: Climate Action

• The article explicitly states that the projects support Canada’s “climate goals.” The funding is directed towards cleantech initiatives such as “carbon capture” (Carbon Upcycling), reducing greenhouse gases (Carbonova), and is supported by “Environment and Climate Change Canada’s Low-Carbon Economy Fund.” This demonstrates a direct connection to taking urgent action to combat climate change and its impacts.

SDG 12: Responsible Consumption and Production

• The focus on “sustainable manufacturing,” creating “more efficient processes,” and “Carbon Upcycling” points to SDG 12. The goal is to produce goods more sustainably by improving resource efficiency and reducing waste. The investment aims to shift the manufacturing sector towards more sustainable production patterns.

SDG 7: Affordable and Clean Energy

• The funding of projects like “AI-powered energy management” and work on “heat generation” directly relates to improving energy efficiency and promoting clean energy technologies within the industrial sector. This aligns with SDG 7’s aim to ensure access to affordable, reliable, sustainable, and modern energy for all.

SDG 17: Partnerships for the Goals

• The initiative described is a multi-stakeholder partnership. It involves a federally-backed organization (NGen), government bodies (Minister for AI and Digital Innovation, Environment and Climate Change Canada), and private industry (32 companies contributing $71 million). This collaborative model, combining public and private resources to achieve sustainable development objectives, is the essence of SDG 17.

What specific targets under those SDGs can be identified based on the article’s content?

Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable

• The article details a $108-million investment to develop and implement “sustainable manufacturing technology.” Projects like Carbon Upcycling’s sustainable cement and carbon capture facility are direct examples of retrofitting industries with “clean and environmentally sound technologies” to make them more sustainable.

Target 9.5: Enhance scientific research and upgrade technological capabilities

• The funding supports 13 advanced projects involving “AI,” “carbon nanofibre,” “graphene production,” “quantum,” and “space” manufacturing. This investment is explicitly designed to enhance research and upgrade the technological capabilities of Canada’s manufacturing sector.

Target 13.2: Integrate climate change measures into national policies and planning

• The involvement of federal entities like NGen and Environment and Climate Change Canada, along with the minister’s statement about supporting “climate goals,” shows that climate change considerations are being integrated into Canada’s industrial and innovation strategies.

Target 12.2: Achieve the sustainable management and efficient use of natural resources

• The article mentions that these cleantech efforts spur “significant productivity improvements” and create “more efficient processes.” The AI-powered energy management project is a specific example of using technology to achieve more efficient use of energy resources in manufacturing.

Target 7.3: Double the global rate of improvement in energy efficiency

• The project by Panevo and Canada Bread Company, which focuses on “artificial intelligence-powered (AI) energy management,” is a direct attempt to improve energy efficiency within the manufacturing process, contributing to this target.

Target 17.17: Encourage effective public, public-private and civil society partnerships

• The entire funding model is a public-private partnership. NGen, a “federally-backed organization,” contributes $37 million, which is combined with $71 million in “industry contributions.” This collaboration between public and private sectors to fund sustainable innovation perfectly illustrates this target.

Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Indicator 9.4.1: CO2 emission per unit of value added

• This is implied by the focus on projects for “carbon capture” and “greenhouse gas tracking.” The success of the Carbon Upcycling project, for example, would be measured by the reduction of CO2 emissions in cement production, directly impacting this indicator.

Indicator 9.5.1: Research and development expenditure as a proportion of GDP

• The article provides concrete financial figures for R&D investment: “$37 million CAD” from NGen and “$71 million” from industry, for a total of “$108-million.” This is a direct measure of financial input for research and development in the advanced manufacturing sector.

Indicator 13.2.2: Total greenhouse gas emissions per year

• This is implied through the stated goal of supporting “climate goals” and funding projects that tackle carbon emissions. The article mentions the “Low-Carbon Economy Fund” and projects by Carbon Upcycling and Carbonova, whose primary purpose is to reduce or repurpose greenhouse gases, thereby contributing to a reduction in total emissions.

Indicator 7.3.1: Energy intensity measured in terms of primary energy and GDP

• This is implied by the “AI-powered energy management” project. The goal of such a system is to reduce the amount of energy required to produce goods, which would be measured as a decrease in energy intensity.

Indicator 17.17.1: Amount of United States dollars committed to public-private partnerships

• The article explicitly quantifies the financial commitments to the partnership: “$37 million CAD” from the public-backed NGen and “$71 million” from private industry. This provides a clear financial metric for the scale of the public-private partnership.

SDGs, Targets, and Indicators Analysis

Source: betakit.com