APF Canada Investment Monitor Report Highlights Opportunities for Canadian Companies in Asia’s Expanding Cleantech Supply Chains

VANCOUVER, British Columbia, Feb. 25, 2024 (GLOBE NEWSWIRE) -- The Asia Pacific Foundation of Canada is pleased to announce the release of Climate Solutions and Cleantech: Building a Greener Indo-Pacific Region Through Foreign Direct Investment providing timely analysis of two-way Canada-Asia investments in renewable energy and electric vehicles (EVs).

APF Canada’s second Investment Monitor Report of 2024, Climate Solutions and Cleantech captures C$29 billion in bilateral investments between Canada and Asia in the renewables sector from 2003 to 2023. The report was released today ahead of the Canada-in-Asia Conferences 2024 event in Singapore (Feb. 26-29), co-hosted by APF Canada and Universities Canada and focused on transpacific collaboration on climate solutions and agri-food.

Understanding major trends in the Canada-Asia renewable energy and EV investment relationship over the past 20 years will better position today’s Canadian cleantech companies for successful integration into regional supply chains across the fast-growing and dynamic economies of the Indo-Pacific region.

Highlights of Climate Solutions and Cleantech: Building a Greener Indo-Pacific Region Through Foreign Direct Investment include:

  • In the renewables sector, Canadian outward investment accounted for 70% of two-way renewables investment between Canada and the Asia Pacific during the 20 years between 2003 and 2023. In the EV sector, meanwhile, 64% of two-way investment was driven by Asian economies.

  • At the national level, the report shows Canadian investment diversification from China, with an increase in two-way investment with Australia, Taiwan, India, and South Korea that started in the 2010s and has since grown to comprise 67% of total two-way investment.

  • China is Canada’s fifth-largest investment partner, with C$3.4B exchanged between 2003 and 2022, but this is primarily due to investments in the 2000-2010 period and is not a reflection of recent trends.

  • At the subnational level, three of Australia’s states – New South Wales, Western Australia, and Queensland – accounted for 25% of Canadian investment in renewable energy and EVs in the region.

  • On the Canadian side of the investment relationship, the province of Ontario has been the largest recipient of Asian investment in renewables and EVs in Canada, attracting almost 90% of this investment (C$10.4B) over the past 20 years. Nearly one-half of this amount was invested in Ontario in the last four years, suggesting that province’s push to become an EV hub may be starting to pay off.

  • State-owned-enterprises (SOEs) play an outsized role in Canada-Asia clean technology investment; over the past decade, the majority of SOE investment was from Canadian SOEs, all of which were Canadian pension funds, accounting for 74% of total two-way SOE investment since 2003.

  • Furthermore, 98% of this investment from Canadian pension funds occurred in the past five years, which suggests these Canadian SOEs are anticipating continued growth in the clean technology sector.

Climate Solutions and Cleantech: Building a Greener Indo-Pacific Region Through Foreign Direct Investment draws on data from the Asia Pacific Foundation of Canada’s Investment Monitor database, which provides information on Canada-Asia Pacific investment flows at the national and sub-national levels. The database is publicly available on the Investment Monitor website, investmentmonitor.ca.

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The Asia Pacific Foundation of Canada is a not-for-profit organization focused on Canada’s relations with Asia. Learn more about the Foundation at www.asiapacific.ca

Media Contact:

Asia Pacific Foundation of Canada
Michael Roberts, Communications Director