Market Overview
The environmental technologies sector covers a large variety of processes and activities across the Canadian economy. These technologies are generally categorized by specific categories (air, water, and soil) and include industrial goods and services that:  
- Foster environmental protection and physical resource efficiency in industrial settings;  
- Generate compliance with environmental regulations;  
- Prevent or mitigate pollution;  
- Manage or reduce waste streams;  
- Remediate contaminated sites;  
- Design, develop, and operate environmental infrastructure; and  
- Afford the provision and delivery of environmental resources.  
The Canadian environmental technologies sector consists of a complexity of goods, services, and other intangible components such as Intellectual Property (IP). It includes also a large variety of common product groups such as electric and mechanical machinery, process controls, and ICT systems.  
The market size evaluation in this report is focused on product categories specific to the environment, including filtering and purification machinery; apparatus and the surveying instrumentation; and apparatus for atmospheric, hydrographic, and geophysical purposes (HS842121, HS842129, HS842139, HS842199, HS9015, HS9025, HS9026, and HS902710). The total Canadian market for these product groups is evaluated at approximately $4 billion (See table below).  
In 2019, the total value of Canadian imports was $3.3 billion, roughly consistent from the previous year. Approximately 61% of imports originated from the United States. However, Canada’s environmental technologies sector also has a strong domestic manufacturing base, which is highly integrated in international trade, supplying foreign markets. The market registered solid growth in recent years. 
Table: Canada Environmental Technology Data (US $ Millions)
|
   
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2017 
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2018 
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2019 
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2020 (Estimated) 
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Total Local Production  
|
2,414 
|
2,683 
|
3,032 
|
3,093 
|
|
Total Exports  
|
1,820 
|
2,072 
|
2,265 
|
2,412 
|
|
Total Imports  
|
2,987 
|
3,300 
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3,315 
|
3,448 
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Imports from the US  
|
1,880 
|
2,024 
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2,035 
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2,117 
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|
Total Market Size  
|
3,580 
|
3,912 
|
4,082 
|
4,128 
|
[Total market size = (total local production + imports) – exports] 
Source: Statistics Canada reports in US$ 
Exchange Rate 2019 annual average: US$1 = CAD$1.327 (April 6, 2020 spot: US$1 = CAD$1.41)  
The Canadian regulatory framework is coordinated from the federal level by the Ministry of Environment and Climate Change Canada (Environment Canada). The Ministry’s mandate is to coordinate policies and programs and to preserve and protect the quality of the natural environment. The Ministry also administers the compliance of products with applicable regulations. Provincial governments develop and enforce policies, regulations, legislation, and standards. Product regulations and certifications are very similar to those in U.S. and products potentially impacting the environment are subject to Canadian certifications and registrations. 
POTENTIAL IMPACTS OF COVID-19:
The first two month of 2020 showed an 8% increase of imports and roughly 14% increase in manufacturing and exports, over the previous year. Canadian policies continue to support the protection of the environment and the affiliation to international agreements for environment protection. The trend for the rest of 2020 is expected, however, to be impacted by the COVID-19 pandemic, which has already affected many sectors of the economy. The slow down and closure of many economic sectors which began in March, is likely to continue till summer 2021, resulting in slower annual growth compared with the current trend. A gradual reopening is expected in summer or fall 2021.  
LEADING SUB-SECTORS:
- Filtering or Purifying Machinery and Apparatus - For Gases ($1.09 billion)  
- Filtering or Purifying Machinery and Apparatus - For Water ($328 million)  
- Thermometers, Pyrometers, Barometers, Hydrometers, other Measuring Equip. ($172 million)  
- New Tertiary Membrane Treatment Plants  
- Chlorine Tanks  
- Upgrades to Secondary and Tertiary Treatment Facilities  
- UV Disinfection Systems  
Market Opportunities
The Canadian Government estimates that approximately $10 billion is required in investment toward modernization over the next 30 years. One in every four wastewater treatment plants needs upgrades to comply with the 2012 Systems Effluent Regulations. More than 800 wastewater treatment plants require upgrade. High-risk systems are required to meet standards by 2020, medium-risk by 2030, and low-risk by 2040.  
The federal and provincial governments implemented significant air, water, and soil pollution limits, which are important drivers for the market. They also have support programs for environmental technologies.  
In January 2018, the Government of Canada announced that it would invest approximately $532 million in clean technology innovation over the next five years, to grow the industry, protect the environment, and increase the number of jobs. This is part of its 2017 budget, which allocated over $1.8 billion for clean technologies – the largest public investment ever pledged to this industry in Canada. In addition, in December 2016, a Pan-Canadian Framework on Clean Growth and Climate Change was adopted by the provincial Premiers and the Prime Minster of Canada outlining critical actions for growing the economy while reducing GHG emissions.  
Most wastewater systems in Canada are owned and operated by municipalities, and best prospects usually fall within a municipal jurisdiction. Ontario, Manitoba, Saskatchewan, and British Columbia are top provinces for projects. Municipal water treatment spending in Canada is expected to see significant growth. Wastewater treatment is a category supported by the Provincial-Territorial Base Fund, the Green Infrastructure Fund, the Gas Tax Fund, and the Building Canada Fund.  
The Canadian Government estimates that approximately $10 billion is required in investment toward modernization over the next 30 years. One in every four wastewater treatment plants needs upgrades to comply with the 2012 Systems Effluent Regulations. More than 800 wastewater treatment plants require upgrade. High-risk systems are required to meet standards by 2020, medium-risk by 2030, and low-risk by 2040.  
The federal and provincial governments implemented significant air, water, and soil pollution limits, which are important drivers for the market. They also have support programs for environmental technologies.  
In January 2018, the Government of Canada announced that it would invest approximately $532 million in clean technology innovation over the next five years, to grow the industry, protect the environment, and increase the number of jobs. This is part of its 2017 budget, which allocated over $1.8 billion for clean technologies – the largest public investment ever pledged to this industry in Canada. In addition, in December 2016, a Pan-Canadian Framework on Clean Growth and Climate Change was adopted by the provincial Premiers and the Prime Minster of Canada outlining critical actions for growing the economy while reducing GHG emissions.  
 Most wastewater systems in Canada are owned and operated by municipalities, and best prospects usually fall within a municipal jurisdiction. Ontario, Manitoba, Saskatchewan, and British Columbia are top provinces for projects. Municipal water treatment spending in Canada is expected to see significant growth. Wastewater treatment is a category supported by the Provincial-Territorial Base Fund, the Green Infrastructure Fund, the Gas Tax Fund, and the Building Canada Fund.  
PROJECTS:
Each province has lists of ongoing and planned projects by main sectors including environment. Most of the projects are owned by public service organizations and procurements are posted on public websites. Further links are listed below under web resources. Some of the largest upcoming water treatment construction projects include the following: 
- North End Water Pollution Control Centre, Winnipeg MB, $450 million 
- Riverhead Wastewater Treatment Facility Expansion Project, St John’s NL, $195 million
- Buffalo Pound Water Treatment Plant (BPWTP) Renewal, Pasqua SK, $190 million
- Ashbridges Bay Wastewater Treatment Plant Upgrades, Toronto ON, $110 million
- Mctavish Pumphouse And Water Tank, Montréal QC, $150 million
Competitive Landscape/Market Entry
Competitors
Main competitors in the Canadian market are China, E.U. countries and Mexico.
Market Entry
- Canada’s main trade agreements are the United States – Mexico – Canada Agreement (USMCA), the Comprehensive Economic and Trade Agreement (CETA) with the European Union (EU) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
- There are no trade barriers (under WTO rules) to market entry, however, some factors have been identified as holding the industry back: a risk-averse domestic market and low adoption rates of new cleantech, a certain disconnect between policy targets and regulations, small relative firm size, lack of strategic expertise and market information in targeted bodies, low access to growth capital and limited entrepreneurial soft skills.
- Regulatory compliance with local and provincial legislation: Canadian and U.S. standards are highly harmonized, but it is important to verify registration of new substances (if not already listed in Canada). All products impacting the environment must be registered with ECCC.
- Environmental remediation is an important segment of the E.T. sector. Bioremediation technologies are experiencing important growth in the market.
- There are no I.P. related issues or discussion for alignment in this sector.
- The Canadian Cleantech Alliance figures among the top industry organizations. A comprehensive list of national industry organizations can be found here.
Trade Events
ACWWA Annual Conference  
www.acwwa.ca 
2022 Dates TBD
WEFTEC 2021 Conference and Exhibition  
https://weftec.org/  
New Orleans, LA, October 8-12, 2022  
CWWA National Water and Wastewater Conference  
https://cwwa.ca/national-water-and-wastewater-conference/
Virtual, January 11-February 3, 2022
2021 Annual SWWA Conference  
https://www.swwa.ca/events?search_request=events&keywords=conference#list
Saskatoon, SK, November 2-4, 2022
Contact Us
For additional information on this sector, please contact Commercial Specialist Ozlem Toplu.
Email Ozlem Toplu; Tel: (416) 595-5412 Ext. 238.
Before her current role, Ozlem worked for Natural Resources Canada in Montreal as a Commercialization Officer, the International Civil Aviation Organization (ICAO) and the U.S. Embassy in Ankara as the Economic Specialist in charge of the energy portfolio. With an international background and experience in both government and private sectors, Ozlem holds an MBA and a Bachelor of Science in Economics and Management from the Louis Pasteur University of Strasbourg in France.
