Skip to content

Canada's Business and Tech Newsroom

  • Professional Subscription
  • Partnerships & Advertising
  • Licensing & Syndication
Log In Subscribe
Welcome,
  • My Account
  • Log Out
  • Business
  • Tech
  • National
  • The Big Read
  • Briefings
  • Commentary
Search
Log In Subscribe
Welcome,
  • My Account
  • Log Out
News

NRC taking over federal cleantech agency after AG slams financial mismanagement, conflicts of interest

The federal government’s scandal-plagued cleantech funding agency will be absorbed by another federal research body, Industry Minister François-Philippe Champagne announced Tuesday. 

News

NRC taking over federal cleantech agency after AG slams financial mismanagement, conflicts of interest

SDTC can resume funding cleantech companies, eight months after government suspended it

By Catherine McIntyre
Minister of Innovation, Science and Industry Francois-Philippe Champagne speaking as a bunch of people hold microphones in their hands.
Minister of Innovation, Science and Industry Francois-Philippe Champagne at the cabinet meeting on Parliament Hill in Ottawa, on June 4, 2024. Photo: The Canadian Press/Spencer Colby
Jun 4, 2024
A A
A Small A Medium A Large
Share

Gift

Share

The federal government’s scandal-plagued cleantech funding agency will be absorbed by another federal research body, Industry Minister François-Philippe Champagne announced Tuesday. 

The announcement came on the heels of a scathing report Tuesday, in which auditor general Karen Hogan found Sustainable Development Technology Canada (SDTC) mismanaged taxpayer dollars by granting money to companies that didn’t meet the government’s eligibility criteria, and with which directors and consultants had conflicts of interests.

Talking Point

  • Sustainable Development Technology Canada will be absorbed into the National Research Council of Canada after auditor general Karen Hogan found the cleantech-granting foundation violated conflict of interest policies in dozens of instances, and mismanagement of taxpayer dollars

Sustainable Development Technology Canada (SDTC) will become part of the National Research Council of Canada. Its board members have all resigned, with three government-appointed directors taking their place. 

“The various reviews conducted―including the auditor general’s report—have revealed serious weaknesses in SDTC’s governance, prompting a new delivery approach to government support for the cleantech sector,” Champagne said in a statement. 

The National Research Council (NRC) is the country’s main national science and technology research agency. SDTC’s programming will eventually be delivered by the Canada Innovation Corporation, an arm’s-length federal agency designed to help commercialize innovation, and set to be operational by 2027. In the meantime, however, SDTC can resume funding cleantech companies immediately, after being barred from doing so for the last eight months. 

“We’re moving to a model with additional oversight that will allow us to restore confidence and continue support for the sector,” Champagne told The Logic Tuesday afternoon. 

In a review of SDTC’s business from March 1, 2017 to December 31, 2023, Hogan found 90 cases in which the agency didn’t follow conflict of interest policies, representing nearly $76 million awarded to projects. Hogan’s office identified 10 projects that were not eligible for funding, but received about $59 million anyway. Two of those involved conflicts of interest, the investigation found. 

Related Articles

Federal cleantech agency claims conflict-of-interest report contained factual inaccuracies, omitted evidence

By Catherine McIntyre

Ottawa’s suspension of SDTC funding threatens deal pipeline, stakeholders warn

By Catherine McIntyre

The auditor general also found that Innovation, Science and Economic Development (ISED), the department that oversees SDTC, failed to properly monitor the foundation for conflicts of interest or assess whether it was following its contribution agreements with the government. 

“Like all organizations funded by Canadian taxpayers, Sustainable Development Technology Canada has a responsibility to conduct its business in a manner that is transparent, accountable, and compliant with legislation,” Hogan said in a statement Tuesday. “Our findings show that when this doesn’t happen, it’s not always clear that funding decisions made on behalf of Canadian taxpayers were appropriate and justified.”

SDTC has been shrouded in controversy since a group of whistleblowers lodged conflict-of-interest and governance complaints against the leadership and board last year.

The allegations prompted Champagne, the minister responsible for the federal innovation department, to order a third-party investigation into SDTC. While its findings validated some of the whistleblower complaints, the investigation didn’t find clear evidence of wrongdoing. Champagne nevertheless suspended SDTC from granting new money until the agency implemented a series of corrective measures. 

The saga has included resignations from SDTC’s top personnel, CEO Leah Lawrence and board chair Annette Verschuren. Both have denied all wrongdoing.

SDTC chair Annette Verschuren spoke before the Standing Committee on Access to Information, Privacy and Ethics in Ottawa in November 2023. Photo: Screencap/ParlVu

SDTC is a major source of public money for early-stage green technology projects in Canada. It provides grants for companies from the seed-to-scale-up phase, and typically draws in private investors. It approved $856 million to 420 projects over the seven-year review period. 

Chief among the conflict-of-interest complaints was former board chair Annette Verschuren’s role in approving pandemic relief grants for NRStor, a portfolio firm of Sustainable Development Technology Canada and a company Verschuren also leads as CEO and board chair. Hogan’s report did not explicitly address the specific claims. However, it noted that in 63 cases, directors voted to approve pandemic relief payment while having previously declared conflicts of interest. 

In a statement responding to the report, SDTC said it accepted Hogan’s findings, but said that its due diligence was more robust than shown by its records—on which the auditor general based the report. “SDTC has strong monitoring processes in place to ensure that every project payment—every dollar—is accounted for and has been correctly disbursed to the innovative cleantech projects and technologies that Canada needs to succeed in the new economy,” it claimed in a statement.  

The organization said it has taken “significant steps to strengthen its conflict-of-interest policies and improve documentation and reporting processes to align with best practices” and has introduced “clearer guidelines for board responsibilities.” 

The NRC will eventually take over all work previously done by SDTC. Champagne said the NRC’s record of supporting innovative tech firms makes it a good fit to manage SDTC. “As a Government of Canada organization, the NRC is subject to rigorous and stringent oversight of its personnel and finances. This structure will help rebuild public trust while increasing accountability, transparency and integrity.” 

Gift the full article

SDTC staff will be offered positions at NRC, according to the statement. ISED has also appointed a new chair to SDTC’s board, Paul Boothe, as well as two new directors, Catherine Doyle and Marta Morgan—all three are former senior public servants. 

“We look forward to the next chapter in our evolution as part of the National Research Council,” SDTC said in a statement. “There are significant synergies between our respective mandates, and we will work to ensure this transition is as seamless as possible for the companies we serve.”

#Annette Verschuren #auditor general #climate #economy #François-Philippe Champagne #Karen Hogan #leadership #Leah Lawrence #NRC #SDTC #Tech

Sponsored Content

The road to risk-smart regulation

By Deborah Aarts

Why cybersecurity needs to match pace with AI

By Jessica Aftimus Rosa

How to shift your workforce from AI experimentation to adoption

By Jessica Aftimus Rosa
Paid promotional content

Loading...

Thanks for sharing!

You have shared 5 articles this month and reached the maximum amount of shares available.

Close
This account has reached its share limit.

If you would like to purchase a sharing license please contact The Logic support at [email protected].

Close
Want to share this article?

Upgrade to all-access now

Close
Gift the full article!

You have gifted 0 article(s) this month and have 5 remaining.

Copy link and gift
Copy Link
Email to a friend
Send Email
Gift on Social Media

Recipients will be able to read the full text of the article after submitting their email address. They will not have access to other articles or subscriber benefits.

Minister of Innovation, Science and Industry Francois-Philippe Champagne speaking as a bunch of people hold microphones in their hands.

Photo: The Canadian Press/Spencer Colby

SDTC chair Annette Verschuren spoke before the Standing Committee on Access to Information, Privacy and Ethics in Ottawa in November 2023.

Most Popular This Week

News

RBC’s AI chief sounds the alarm over AI agents

By Chaimae Chouiekh
News

Underperforming AI agents at big banks face a very human pressure: Losing their jobs

By Claire Brownell
News

Brookfield’s new CEO flexes the firm’s soft power with its $50B Canadian bet

By Anita Balakrishnan
A shot taken through laboratory equipment of a researcher injecting liquid into a tube. The worker is wearing blue, latex gloves, and is a white lab coat with the VIDO logo on it.
News

Panel decries Canada’s chaotic way of funding world-class science

By David Reevely

In-depth, agenda-setting reporting

Great journalism delivered straight to your inbox.

News

Ottawa is softening its ban on stablecoin yield

By Claire Brownell

Briefing

Rio Tinto gets nearly $165M in additional federal funds for Quebec aluminum

By Anita Balakrishnan   |   Oct 23, 2026 | 3:43 PM ET

U.S. to lift tariffs on some Canadian products crucial to Maine: Collins

By Joanna Smith   |   Oct 23, 2026 | 3:41 PM ET

Carney warns of tech dependence after Starlink disruptions in Ukraine

By Catherine McIntyre   |   Oct 23, 2026 | 2:42 PM ET

Best business newsletter in Canada

Get up to speed in minutes with insights and analysis on the most important stories of the day, every weekday.

Exclusive events

See the bigger picture with reporters and industry experts in subscriber-exclusive events.

Membership in The Logic Council

Membership provides access to our popular Slack channel, participation in subscriber surveys and invitations to exclusive events with our journalists and special guests.

Recent Popular Stories

News

Brookfield’s new CEO flexes the firm’s soft power with its $50B Canadian bet

By Anita Balakrishnan   |   Oct 21, 2026
Commentary

Carmichael: Canada needs tax reform. Carney shouldn’t make it up as he goes along

By Kevin Carmichael   |   Oct 17, 2026
The Big Read

Beacon is building an AI empire by fixing Main Street’s software

By Murad Hemmadi   |   Oct 19, 2026
A man in glasses and a blue knit sweater outdoors on a city street, with brick buildings softly blurred behind him
News

A tech firm born from post-Brexit trade chaos sets its sights on Canada

By Joanna Smith   |   Oct 13, 2026
A shot of a freight truck passing beneath a gantry that bears signs directing traffic through the Port of Belfast.
News

RBC’s AI chief sounds the alarm over AI agents

By Chaimae Chouiekh   |   Oct 22, 2026
News

Anthropic revealed as client for EverWind’s $10B Nova Scotia data centre

By Catherine McIntyre   |   Oct 16, 2026

Canada's most influential executives and policymakers are reading The Logic

  • CPP Investments
  • Sun Life Financial
  • C100
  • Amazon
  • Telus
  • Mastercard
  • bdc
  • Shopify
  • Rogers
  • RBC
  • General Motors
  • MaRS
  • Government of Canada
  • Uber
  • Loblaw Companies Limited
logic-logo

Canada's Business and Tech Newsroom

100% human-crafted journalism

Newsroom

  • News Tips
  • AI Policy
  • Editorial Disclosures
  • Story Pitches

Company

  • About Us
  • Terms of Service
  • Privacy Statement
  • Corporate Information

Contact

  • Contact Us
  • Advertise
  • FAQs
  • Work at The Logic

© 2026 The Logic Inc. All Rights Reserved.

Trusted by leaders

Error

Account creation failed.

Please email us at [email protected].

Create Account

[wppb-register form_name=”cozmo-registration-form-for-modal”]

I do have an account
Login
or

[wppb-login]

I don’t have an account