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Sustainable Development Technology Canada

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Sustainable Development Technology Canada
Technologies du développement durable du Canada
Agency overview
Formed2001
Dissolved2024
JurisdictionGovernment of Canada
HeadquartersOttawa, Ontario
Agency executive
  • Ziyad Rahme, Chief Operating Officer
Websitewww.sdtc.ca

Sustainable Development Technology Canada (SDTC; French: Technologies du développement durable Canada) was an arm's-length foundation created by the Government of Canada to fund new clean technologies.

History

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In 2001, the Government of Canada created Sustainable Development Technology Canada (SDTC) as an arm's-length foundation[1] to “demonstrate new technologies to promote sustainable development, including technologies to address issues related to climate change and the quality of air, water and soil.”[2] These clean technologies, such as fuel cells and biofuels, are developed through public-private partnerships with SDTC acting as a funder.[3]

On 8 November 2023, SDTC board chair Annette Verschuren told the Canadian House of Commons Standing Committee on Access to Information, Privacy and Ethics that she had approved grants worth more than $200,000 to her energy storage firm NRStor Inc., with the money having originally been part of the SDTC's efforts to fund SDTC-linked companies with existing funding arrangements during the COVID-19 pandemic.[4] On 10 November, Leah Lawrence resigned as CEO of SDTC in connection with the payment, which was revealed via a whistleblower complaint in early 2023.[5] Verschuren announced on 19 November she will resign as chair of the Board of Directors in relation to the scandal effective 1 December.[6]

On 12 December 2023, the whistleblower, a former SDTC employee, testified before the Canadian House of Commons Standing Committee on Industry, Science and Technology that the SDTC had misspent millions of dollars in public funds, including $40M worth of special payments to SDTC-linked companies in 2021.[7] The SDTC had allegedly determined the companies had no need for these payments as they already had a sufficient amount of money to spend on their activities without suffering from the economic effects of the COVID-19 pandemic. The whistleblower also alleged that the SDTC had created a toxic workplace environment by firing several human resource managers.

On 4 June 2024, the SDTC was disbanded as an independent arm's-length foundation and folded into the National Research Council Canada following a report from Auditor General of Canada Karen Hogan, who revealed that the fund had awarded $59 million to 10 projects who were ineligible for funding and had frequently overstated their projects' benefits.[8] Former senior civil servant Paul Boothe will lead a three-person board to help the SDTC transition into an agency directly under the control of the government.[9]

On 24 July 2024, ethics commissioner Konrad von Finckenstein found Verschuten to be in violation of ethics for the scandal.[10]

Investments

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SDTC has invested in about 300 projects throughout Canada.[11] On average 33% (up to 40%) of projects costs can be covered the program.

Governance

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Leah Lawrence was the president and CEO of Sustainable Development Technology Canada until her resignation in 2023 in relation to the aforementioned scandal.[12] Its current interim president is Ziyad Rahme. Until 2024, SDTC was overseen by a Board of Directors, with Annette Verschuren formerly as the chair.[13] It will now be overseen by a three-person board to help the fund transition into a government-controlled fund, led by former senior civil servant Paul Boothe as chair, along with former senior civil servants Cassie Doyle and Marta Morgan.

References

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  1. ^ "Canada falling behind U.S. in clean-energy efforts: experts". Nationalpost.com. December 26, 2009. Retrieved November 12, 2011.
  2. ^ "Canada Foundation for Sustainable Development Technology Act". Laws-lois.justice.gc.ca. Retrieved November 12, 2011.
  3. ^ "We must take lead on clean energy front". Pqasb.pqarchiver.com. Archived from the original on January 31, 2013. Retrieved November 12, 2011.
  4. ^ Leblanc, Daniel (November 9, 2023). "MPs grill federal green fund chair who took part in decision to grant her own firm $217,000". www.cbc.ca.
  5. ^ Leblanc, Daniel (November 10, 2023). "Head of federal green fund targeted by whistleblowers resigns". www.cbc.ca.
  6. ^ "Sustainable Development Technology Canada chair resigns as agency faces fresh probe". The Globe and Mail. November 19, 2023. Retrieved April 5, 2024.
  7. ^ Leblanc, Daniel (December 12, 2023). "Whistleblower testifies about 'gross mismanagement' at federal green fund". www.cbc.ca.
  8. ^ "Ottawa abolishes green fund in response to scathing AG report". CBC. June 4, 2024. Retrieved June 6, 2024.
  9. ^ "What does the future look like for SDTC?". The Globe and Mail. June 4, 2024. Retrieved June 6, 2024.
  10. ^ "Ethics commissioner flags conflict at Sustainable Development Technology Canada". CBC News. July 24, 2024. Retrieved July 24, 2024.
  11. ^ "About Us - Sustainable Development Technology Canada". Sdtc.ca. Retrieved October 29, 2021.
  12. ^ "People & Partnerships - Sustainable Development Technology Canada". Sdtc.ca. Retrieved October 29, 2021.
  13. ^ "Board & Committees - Sustainable Development Technology Canada". Sdtc.ca. Retrieved December 31, 2015.
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