Here is a look a clean technology in Canada

1. Government Policy –
Clean Technology –
Canada – April 2019
Paul Young CPA, CGA
April 15, 2019

2. Paul Young - Bio
• CPA, CGA
• Financial Solutions
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com

3. Agenda
• Canada Clean Technology Business – 2017
• Clean Technology MFG vs Other Manufacturing
• Power Generation
• Business losses – Clean Technology
• Clean Technology / FDI
• Financial Post / Clean Technology
• Climate Index (2019 vs 2019)
• Blog #1 – Clean Technology
• Blog#2 – Clean Technology
• Blog #3 – Clean Technology
• SDTC - Results
• Electrical Car
• Brett Wilson / Investment
• Toxic Rare Metal
• Child Labor / Rare Metals
• Pollution Taxes
• Rare Metals

4. Introduction
• Clean Technology is very important segment. The problem is clean technology
has to be economic viable
• Government subsidies for wind turbine were foolish
• There needs to be right balance between the economic and environment

5. Canada Clean Technology Business - 2017

6. Power Generation / Canada

7. Clean Technology loses money -
Source - https://www.bnnbloomberg.ca/awash-in-red-ink-canadian-clean-tech-
struggling-despite-ottawa-s-green-goals-1.729679

8. Canada Clean Technology Manufacturing vs Other
Manufacturing

9. Business Losses / Clean Technology
Source - https://www.bnnbloomberg.ca/awash-in-red-ink-canadian-clean-
tech-struggling-despite-ottawa-s-green-goals-1.729679
Canadian clean technology companies are struggling to stay afloat and falling behind global peers
even as Ottawa promises to boost the sector and move the country toward a low carbon future, a
report released on Thursday showed.
Analytica Advisors said in its seventh annual report that despite years of publicly funded support for
research and development, losses for clean tech companies widened to $3.56 billion in 2015 from $3.18
billion in 2014, and shareholder returns limped in below the Canadian average. Figures for 2016 are
not yet available.
Those metrics have made it difficult to convince pension funds and other investors to put money into
the sector even as Ottawa has made a string of promises designed to boost the green economy.

10. Clean Technology / FDI
Source - https://business.financialpost.com/commodities/energy/lack-of-canadian-tax-competitiveness-discourages-even-
renewable-energy
You know Canadian competitiveness is in big trouble when even investors in renewable energy –
favored by Canadian governments through subsidies, plus carbon taxes and regulatory overload on
competing fossil-fuel energy — are leaving because they like lower U.S. taxes even more.
Juno Beach, Fla.-based NextEra Energy Partners LP said Monday the sale of its wind and solar
generation assets in Ontario to the Canada Pension Plan Investment Board for US$582.3 million was
specifically motivated by U.S. tax reform.
“We expect the sale of the Canadian portfolio to enable us to recycle capital back into U.S. assets,
which benefit from a longer federal income tax shield and a lower effective corporate tax rate,
allowing NextEra Energy Partners to retain more … in the future for every $1 invested,” Jim Robo,
chairman and chief executive officer, said in a statement.

11. Climate Index

12. Blog – Clean Technology
• https://www.slideshare.net/paulyoungcga/immigration-crisis-canada
• “The plan will move the province to a low-carbon future, said Horgan, who introduced the plan with Green Leader Andrew
Weaver.” - https://www.canadianmanufacturing.com/environment-and-safety/b-c-climate-change-plan-aims-to-build-economy-
around-renewable-energy-2-223399/
• BC Carbon Tax is not revenue neutral - https://www.fraserinstitute.org/blogs/bc-budget-acknowledges-the-carbon-tax-
was-not-revenue-neutral
• Clean technology companies continue to bleed moneys - https://www.bnnbloomberg.ca/awash-in-red-ink-canadian-
clean-tech-struggling-despite-ottawa-s-green-goals-1.729679
• BC generates 94% - https://www.neb-one.gc.ca/nrg/sttstc/lctrct/rprt/2016cndrnwblpwr/prvnc/bc-eng.html Natural
Gas is required as backup
• BC is very expensive to live - https://globalnews.ca/news/4194216/provinces-cities-canada-highest-lowest-rent/
• SK court case - https://globalnews.ca/news/4733155/trudeau-government-reject-jason-kenney-carbon-tax-court-fight/

13. Blog #2 – Clean Technology
• This is laughable! I guess F/S and profitability are not something the left reads, right?
• https://www.slideshare.net/paulyoungcga/climate-change-carbon-pricing-and-clean-technology-
canada
• 103B that runs losses nearly 4B, right?
• https://www.bnnbloomberg.ca/awash-in-red-ink-canadian-clean-tech-struggling-despite-ottawa-
s-green-goals-1.729679
•
• https://www.forbes.com/sites/energyinnovation/2018/08/13/ontarios-economic-investment-
outlook-dims-with-new-government-energy-actions/#3668ca083b0a
•
• https://business.financialpost.com/news/economy/investment-outflow-from-canada-already-
underway-in-real-time-rbc-head

14. Blog #3 – Clean Technology
• @cathmckenna You do realized going behind someone back is not a good
approach when deal with people, right?
• https://www.ctvnews.ca/politics/feds-select-ontario-business-as-first-recipient-of-
new-climate-money-
1.4248106?fbclid=IwAR0yRMPFgrgUJt7Q1qQiuJ6GXNIL2nMn5sy3CQIyL0QTiC
P9LXBma9TKZac
• I like to see the business case that supports this grant. This company was created
via City of Toronto then sold to an asset manager.
https://nationalpost.com/posted-toronto/councillors-debate-how-to-spend-huge-
profit-from-sale-of-citys-stake-in-enwave-energy . The company in the past has
donated to the liberal party.
• Clean Technology companies in general have not made a profit -
https://www.slideshare.net/paulyoungcga/clean-technology-business-for-canada-
january-2019

15. SDTC Annual Report
Source - https://www.sdtc.ca/en/engage/reports/sdtc_20172018_annualreport_final/
• Performance Audit needs to be completed
on SDTC – The next audit is 2017-2018 -
https://www.nrcan.gc.ca/plans-performance-
reports/dpr/2016-2017/20138 - The results
will not be available until after the next
election
• The problem is still with commercialization
and profitability -
https://business.financialpost.com/uncategor
ized/joe-oliver-governments-can-solve-
some-market-problems

16. Financial Post / Clean Technology
Source - https://business.financialpost.com/opinion/philip-cross-statcan-just-exposed-how-worthless-green-industries-
are-to-canadas-economy?fbclid=IwAR1Vha21aU66ZkMWUI1VOoBLqsHE_FLsmNPbc_41wiOyZgPJ4bTIZ3QTvo0

17. Electrical Vehicle Sales
Source - https://insideevs.com/july-2018-plug-in-electric-vehicle-sales-report-card/ or https://www.desrosiers.ca/sales/ or https://www.scotiabank.com/ca/en/about/global-
economics/global-auto-report.html or https://insideevs.com/monthly-plug-in-sales-scorecard/ or https://insideevs.com/us-plug-in-electric-car-sales-charted-november-2018/ or
https://cleantechnica.com/2019/02/09/tesla-model-3-1-best-selling-electric-car-in-world-7-of-global-ev-market/
Total USA vehicle sales 16.5M with less than 1% vehicle sales being
electric

18. Anatomy of
Electrical Car
 Metals – Steel, aluminum,
nickel, copper,
 Rare Earths, vanadium,
lithium
 Rubber
 Plastics,

19. Cost
Competitiveness
Source - https://www.canadianmanufacturing.com/sales-and-marketing/after-years-of-promise-battery-cars-about-to-go-mainstream-228289/
GENEVA—For years, there have been lots of electric cars proudly rolled out at auto shows but few
on the streets or at dealers. That could be about to change.
The electric cars under the lights at the Geneva International Motor Show promise to be the
leading edge of more affordable, longer-range vehicles that start to move battery cars out of their
niche—as a product for environmentalists willing to put up with limited range and wealthy
enthusiasts of new technology willing to pay for buzz and the robust but silent acceleration the
cars offer.
Several broad underlying trends are converging to increase the likelihood that larger numbers of
battery cars will be on the roads in the next several years.
Prices are falling for batteries, consumers are turning away from diesel engines after Volkswagen’s
emissions scandal, and governments in Europe and China are enforcing tougher emissions rules.
As more electric cars roll off assembly lines, the trick will be getting more people to buy them. A
key factor will be price—of the battery to the manufacturer, and consequently of the car to the
customer.
Volvo Car Group’s Polestar 2 and Peugeot’s new electric 208 compact are electric offerings
aimed at bringing battery-powered cars within reach of more people. The Polestar 2 launch
version, expected in 2020, starts at US$55,500 after the $7,500 U.S. tax incentive; the Europe price
starts at 59,000 euros. A less expensive model is envisioned after the first year. Polestar says the
model is aimed at the same potential customers as the Model 3 electric compact from California
carmaker Tesla.
Tesla said last week it will close its stores and move to online sales only so it can cut costs and
reach its goal of selling the Model 3 for $35,000. Before the announcement the lowest price was
$42,900.
Electrical subsidies cost
the USA treasury about
1.5B per year.

20. Canada
Startup
Source - http://www.canadianmanufacturing.com/manufacturing/canadian-electric-car-
maker-inks-manufacturing-deal-chinese-firm-202378/
VANCOUVER—Vancouver’s Electra Meccanica Vehicles Corp. announced
Oct. 2 it has signed a manufacturing agreement with Zongshen Industrial
Group Co., Ltd.—a motorcycle manufacturer based in Chongqing, China—to
produce 75,000 of its SOLO electric vehicles over the next three years.
This uniquely shaped single-seater car is powered by a 16.1 kilowatt hour
lithium-ion battery, has a range of 160 km and a top speed of 130 km/h.
The manufacturing agreement with Zongshen calls for the production of
5,000 SOLOs in 2018; 20,000 in 2019; and 50,000 in 2020.
The company started taking orders for the SOLO in 2016, and Electra
Meccanica says it has so far amassed orders for over 20,000 units.
“We are thrilled that Zongshen has joined us in leading the clean energy
charge and partnered with us in the production of our innovative, new SOLO,”
said Jerry Kroll, CEO, Electra Meccanica. “We have thousands of orders on
the books and we now have the manufacturing capacity to begin filling these
orders for our customers.”
The SOLO’s anticipated manufacturer’s suggested retail price (MSRP) comes
in at a modest $19,888, and the company is currently taking refundable $250
reservations on its website. New deliveries are currently scheduled to be
fulfilled in Q4 2018.

21. End of Rebates
Source - https://canada.autonews.com/retail/nissan-leaf-sales-collapse-ontario-after-incentive-axed
• About 1% of all USA vehicle sales are
electric
• About 2% of all Cdn vehicle sales are
electric

22. BC Govt / Rebates
AG for Ontario said these tax
incentives did nothing for
electrical vehicles. So, why is
BC going the same approach?
@jjhorgan
@Swiftie01
https://www.canadianmanufa
cturing.com/financing/b-c-
budget-includes-child-fund-
climate-plan-indigenous-
revenue-sharing-227260/

23. Plug-in Stations
• Ontario – source - https://www.thestar.com/news/queenspark/2016/07/13/ontario-
plugs-electric-car-plan-with-expanded-charging-network.html
• Electrical boom drive need for plug-in stations – source -
http://www.cbc.ca/news/technology/electric-car-charging-station-congestion-
1.3518353
• Market trends – Plug-in Stations -
http://www.greencarreports.com/news/1102160_top-six-trends-in-plug-in-
electric-cars-through-2020
• MFG plug-in stations -
https://www.canadianmanufacturing.com/financing/ontario-charging-station-
manufacturing-plant-jolt-canadas-electric-car-industry-210535/

24. Brett Wilson / Investor
Key points:
• Brett supports clean technology but not with subsidies
• Trudeau’s govt has been failure/incompetent

25. Rare Metals Market

26. China and Environmental
Source - https://www.theguardian.com/sustainable-business/rare-earth-mining-china-social-environmental-costs or
https://www.theguardian.com/environment/2012/aug/07/china-rare-earth-village-pollution

27. Child Labor / Rare Metals
Source - https://www.cbsnews.com/news/cobalt-children-mining-democratic-republic-congo-cbs-news-investigation/

28. Pollution Taxes
Pollution taxes
There are already taxes on pollution - https://www.slideshare.net/paulyoungcga/carbon-tax-and-pollution-taxation-
all-you-need-to-know-canada-april-2019
The liberals never discuss the complete pass through of the carbon tax and/or discuss the impact the carbon taxation
on small business. https://capforcanada.com/canadian-households-to-pay-1100-per-year-in-carbon-
tax/?fbclid=IwAR02rsYH4ht9Gw3ESA0MsI34UeLjjnZ6sFW40leAoqVLr0FqY56wFuJgpJc or
https://www.slideshare.net/paulyoungcga/the-art-of-taxing-pollution-canada-april-2019

29. Summary
• Clean Technology investment moving to other jurisdiction
• Despite additional funding to clean tech the sector still loses money
• The liberals continue to pick winners and losers
• Clean technology requires raw material, fabrication and installation. No where is
that mentioned when discussing the benefits of clean technology.