Innovation Minister François-Philippe Champagne announced late Tuesday that he asked Sustainable Development Technology Canada (SDTC) to temporarily stop backing firms until it implements an action plan with a Dec. 31 deadline. In a third-party report commissioned by his department, Raymond Chabot Grant Thornton (RCGT) identified cases where the agency was not complying with its government contribution agreement or conflict-of-interest policies. SDTC spokesperson Janemary Banigan said the organization is working to implement the recommendations, and noted that the report “found no clear evidence of wrongdoing or misconduct.” (The Logic)

Talking point: SDTC finances R&D and demonstration projects from Canadian cleantech companies. Portfolio firms include prominent scale-ups like Carbon Engineering, Hydrostor and Semios. While the agency’s contribution agreement targets pre-commercial projects, some that RCGT checked involved commercialization. The review—initiated in March after complaints by some former employees—also found that “COVID-19 relief payments” to existing portfolio firms totalling $38.4 million did not meet the contract. (Identifying details about recipients are redacted in the version of the report the government released to The Logic.) Champagne has ordered SDTC’s board to update its approval process to align with the contribution agreement. Banigan said the agency has not been directed to claw back any funding, and will keep making payments to already-approved projects.