Canada and The Climate Opportunity:

Yesterday was Canada Day, the country's national holiday.  So this week, we are taking a look at how Canada is becoming a launchpad for U.S. Climate and Energy Innovation.   As Yin Lu, Partner at MCJ Capital Partners writes, "As U.S. climate and energy startups navigate ongoing trade volatility and shifting tax credit policy landscapes, many are increasingly treating Canada as a complementary go-to-market (GTM) region, not a replacement for the U.S., but a way to parallelize growth, diversify incentives, and accelerate deployment.

Across sectors such as carbon utilization, building electrification, geothermal, and energy storage, early-stage U.S. companies are piloting in Canada to access funding, navigate simpler permitting frameworks, and gain traction with customers in a policy environment that may differ materially from the U.S."

BCG analysis from their proprietary Green Tech Portal shows that Canada has a thriving and rapidly growing climate-tech ecosystem, with investment in Canadian climate tech ventures up 4X. 

Canada's focus on reaching Net Zero, along with its operational compatibility with the US (from interconnected power grids to common building codes and electrical standards), makes Canada a natural partner for US go-to-market climate tech strategies.  This friendly environment is likely to be further helped by Canada's new(ish) Prime Minister Mark Carney, who, since his time in the banking world, has worked to bring the private sector into the climate fight towards net zero emissions, calling the green transition, "the greatest commerical opportunity of our time."

All of this is to say that when it comes to the next stage for your climate tech growth journey, it is time to take a closer look at Canada.

The Market: Recent Data Shows That VC Climate Tech Allocations Are Slowing, But Institutional Investors Are Still Interested 

Data from PitchBook suggests that 2024 was the third consecutive year in which both deal value and deal count for climate tech venture capital investment declined.  The deal value is down 21% and the deal count is lower by 11%.

However, the data indicate that institutional investor interest in climate tech opportunities remains steady, with the latest figures showing that institutional investors continue to participate in high-value VC climate tech deals. 

The PitchBook Analyst Note from June 2024 also noted that the impacts of tariffs and supply chain challenges remain key for investors and VC-backed companies in the climate tech space, particularly for US-based companies.

To download the full report, go to: https://pitchbook.com/news/reports/q2-2025-pitchbook-analyst-note-vc-investment-in-climate-tech

Good News: ZeroAvia

Summer is travel season, which means flights.  This week in good news, have a look at ZeroAvia, which is tackling the formidable challenge of decarbonizing aviation by designing and manufacturing zero-emission hydrogen-electric engines. The company manufactures its engine components in-house and plans to supply parts to other companies working in sustainable aviation. Plus, it has backing from Bill Gates’ Breakthrough Energy Ventures.

Opportunities & Events:  Red Sky Summit Applications Now Open 


The Red Sky Summit is the premier gathering of wildfire thought leaders who share a common objective:

To develop and scale innovative, technology-based solutions to our wildfire crisis. Attendees comprise a diverse group of leaders, including members of the fire service, foresters, practitioners, technology entrepreneurs, utility and insurance executives, philanthropists, non-profit leaders, researchers, and elected officials.

Founded in 2023, the Summit aimed to bring together these traditionally siloed industries to accelerate the adoption of new technology through collaboration. In the past 3 years, the Summit has grown to host over 400 attendees from top organizations.

The Red Sky Summit is hosted by Convective Capital, with support from the Gordon and Betty Moore Foundation and other philanthropic sponsors. Applications to attend are available here: https://redskysummit.com/