British Columbia’s $1.8 Billion Cleantech Sector

British Columbia cleantech is one of the fastest growing sectors in the province according to a report released by KPMG and the CEO Alliance. The report data came from survey results from over 270 cleantech companies in the region and found that many believed the government was yet to offer enough support to further grow the sector. The survey defined ‘cleantech’ as an umbrella of companies that have the primary purpose of developing new technologies. These technologies are usually related to clean energy transmission, water treatment and management and/or efficiency in energy.

Jonathan Rhone, Chair of the B.C. Cleantech CEO Alliance and President of the industrial waste water company Axine, stated that over the past five years, the province of British Columbia has emerged as a hub for cleantech companies. As a result, they have been able to create numerous jobs for the state’s population. In addition, the state has attracted billions of dollars of investment from firms all over the world. Specifically, the cleantech sector employs nearly 9,000 people in the province and 14,000 at large. The average annual wage for a British Columbia cleantech employee is $84,000.

The 2016 survey was also able to deduce the various sources of equity for the companies. The results showed that certain programs from the federal and provincial governments were behind the success of this sector. Specifically, half of those who participated in the survey stated that they used SR&ED tax credits. Another program that was common was IRAP (Industrial Research Assistance Program). The various respondents indicated that an increase in funds for these government programs would further boost the sector, with 33 percent suggesting higher SR&ED tax credits for the cleantech industry.