Sustainable Development Technology Canada

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.

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]

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

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.

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