Sustainable Development Technology Canada

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

History
In 2001, the Government of Canada created Sustainable Development Technology Canada (SDTC) as an arm's-length foundation 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.” These clean technologies, such as fuel cells and biofuels, are developed through public-private partnerships with SDTC acting as a funder.

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. 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. Verschuren announced on 19 November she will resign as chair of the Board of Directors in relation to the scandal effective 1 December.

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. 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. 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.

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

Governance
Leah Lawrence was the president and CEO of Sustainable Development Technology Canada until her resignation in 2023 in relation to the aforementioned scandal. Its current interim president is Ziyad Rahme. Until 2024, SDTC was overseen by a Board of Directors, with Annette Verschuren formerly as the chair. 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.