Cleantech trends: Opportunities for Canadian exporters in 2026

At EDC’s 2025 Cleantech Export Summit (CES) in October, industry leaders identified four trends shaping cleantech markets in 2026: Market diversification beyond the U.S., the convergence of energy security with decarbonization, innovations in artificial intelligence (AI) and new funding dynamics.

These insights reflect global cleantech trends for 2026, including the rise of clean energy investment worldwide, which surged to nearly US$2 trillion in 2024, while the cost of renewables continues to fall—solar by 41% and wind by 53% cheaper than fossil alternatives, according to EDC’s cleantech report 2025.

This article draws on insights from the summit to explore these key trends and what they mean for Canadian exporters in 2026 and beyond.

These four trends highlight how global cleantech markets are evolving and what that means for exporters.

1. Why is global market diversification in cleantech critical for exporters?

Global demand for cleantech is growing, yet Canadian cleantech exports still rely heavily on the United States (U.S.). Expanding into promising markets across Europe, the Indo-Pacific and the Americas creates opportunities for sustainable growth and revenue diversification.

Global cities and regional governments are also major drivers of cleantech adoption. David Miller, managing director of the C40 Centre (think tank helping cities shape urban policy on climate change) and former Toronto mayor, says cities consume close to 75% of the world’s energy, generate most greenhouse gas emissions and generate more than 80% of the world’s gross domestic product (GDP). Urban networks, like C40—nearly 100 major cities worldwide—are pushing climate budgets, stricter building codes and electrified transit.

 “If we take the best ideas that are happening somewhere and do them everywhere, the world will be able to get back on a path to address climate change,” Miller says.

To succeed in new regions, exporters should research local regulations and climate policies early and build relationships with buyers, distributors and government agencies well before market entry, he says.

Which global regions offer the best opportunities for Canadian cleantech?

While the U.S. is a primary destination for cleantech, there are other high-potential growth areas.

In this CES panel recording, industry leaders and a Canadian exporter share practical strategies on how to successfully enter new markets. 

2. How are energy security and decarbonization converging?

Energy security is reshaping net zero plans worldwide. Countries are looking for domestic, low-carbon energy sources to reduce import reliance and risks.

Gryseels says, “We’re moving from a world where sustainability was focused on values to sustainability that is focused on value.” This shift is driving measurable returns like cost savings and risk reduction.

Key changes include:

• Countries are reducing reliance on Russian supply, which along with high power prices, is accelerating investment in clean baseload power and renewables.
• Some institutions are softening net zero commitments, yet capital is still flowing where the economics are strong—such as renewables, energy storage, nuclear, liquified natural gas (LNG) and biofuels.
• Asia and Africa are scaling solar and wind to meet growing demand, making renewables the cheapest and most practical option.

These shifts open doors for Canadian exporters to provide electrification technologies, battery storage systems (BESS) and grid resilience solutions.

Looking for more insights? Industry experts explain how exporters are navigating energy security and shifting global demand in this CES panel recording on trends in power generation and energy transition.

3. What impact does artificial intelligence (AI) have on climate and cleantech innovation?

AI is transforming how companies develop and deploy clean technologies. For Canadian exporters, this could bring benefits such as lower costs, smarter shipping routes and faster breakthroughs in areas, like battery chemistry and carbon capture. At the same time, there are massive energy demands needed to power AI and data centres.

Anthony Schiavo, senior director and principal analyst at Lux Research, says AI’s impact on sustainability is more nuanced than the headlines suggest. While data centre demand is set to rise, he says rapid gains in energy efficiency, chips and cooling could help keep emissions in check.

He also flagged a near-term risk: AI investment may pull capital away from cleantech solutions that are ready to deploy today, even as AI helps accelerate longer-term innovation.

Practical uses of AI, including improving operations, improving grid management and speeding up research and development (R&D), are becoming essential tools for exporters looking to scale more efficiently. For many companies, AI already enables R&D and day-to-day operations.

Looking for more insights? Stay tuned—our full article on this emerging trend is coming soon.

4. How are cleantech funding dynamics evolving?

In 2024, about $8 billion was invested in venture capital in Canada, but today, investors are focusing on businesses that show a strong market fit. Additionally, first-of-a-kind (FOAK) projects are facing funding challenges as lenders grow more cautious.

Graeme Millen, vice-president of strategic finance for Farm Credit Canada (FCC), says, “The moral imperative, unfortunately, is not a sustainable investment thesis for limited partners (LPs) or for investors. Cash will follow high-performing businesses.”

For cleantech exporters to stand out, they need to secure:

• Non-dilutive financing: Financing that doesn’t require giving up ownership—such as grants, royalty financing, debt, or investment tax credits. These help companies stretch their available funds and reduce risk.
• A co-ordinated capital stack: Combining funding from banks, government programs and private investors to support sustainable growth.

For cleantech companies preparing to grow their business abroad, developing a funding plan that aligns with your market-entry timeline is increasingly important. Exporters often combine equity with non-dilutive options to strengthen their capital strategy, preserve ownership and reduce risk.

Looking for more insights? Explore our two CES panel recordings on cleantech funding:

• Venture capital and public-sector finance experts discuss how exporters can attract investment capital.
• Bank and public-sector finance leaders explain how non-dilutive funding can strengthen a capital stack.

At the Cleantech Export Summit, Anthony DeOrsey, research manager for the Cleantech Group, highlighted several high-potential sectors for Canadian cleantech:

• Critical minerals and battery supply chains: Canada’s strengths in direct lithium extraction, hydrometallurgy (extracting metal from ore) and processing of key minerals, like cobalt and nickel, position exporters to supply both raw materials and refined products. U.S. restrictions on Chinese battery recycling favour Canadian suppliers, but cost competitiveness and rapid scaling are still challenges.
• Nuclear fission, fusion and small modular reactors (SMRs): Canada is poised to lead in next-generation nuclear technologies, with the world’s first commercial SMR outside China and Russia expected by 2030. As DeOrsey says, “We’re going to need a template for how to actually operationalize these new types of nuclear and finance them.” There’s also renewed momentum in fusion as part of the shift to new baseload power sources.
• Clean energy infrastructure: There are significant opportunities in grid enhancements, including long-duration energy storage, reconductoring (replacing older power lines with higher-capacity ones) and more advanced grid management systems. Canada already uses AI for grid optimization and could expand that capability to improve grid resilience and support industrial systems. DeOrsey also highlighted opportunities in subsurface monitoring, like geothermal monitoring, which benefit from Canada’s strong mining and AI capabilities.

He says Canada should double down on these strengths, rather than investing heavily in areas where global competitors are already well established.

Those emerging sectors align with findings from EDC’s cleantech report, which also identified three mature clean technologies: Renewable energy, electrified transport and electrification. Those technologies offer strong commercial opportunities for Canadian exporters and are resilient to political and economic uncertainty.

In his CES presentation, DeOrsey goes beyond sector headlines to explain why focusing on those strengths will matter more than ever in 2026.

At CES, EDC’s Deputy Chief Economist, Ross Prusakowski, highlighted how economic uncertainty is reshaping export decisions. He says, “The biggest change since the start of (2025) is U.S. tariffs and it’s really weighing on global growth.”

• Policy and investment uncertainty: Evolving trade rules and the risk of expanding tariffs make it harder for companies to forecast costs, price competitively and commit capital, especially for first-of-a-kind projects.
• Financing and delivery risk: Volatile markets are making investors and lenders more cautious, especially for capital-intensive clean technologies with longer development timelines.
• Slower market growth: While U.S. consumer demand has held up so far, Prusakowski says margins are tightening and investment decisions are already being delayed. Weaker growth prospects in Europe and increased global competition are only adding to slower growth.

EDC’s latest Global Economic Outlook shows trade volatility is here to stay, underscoring the need for cleantech exporters to focus on resilience and strategy.

EDC provides financing tools and market intelligence to Canadian cleantech exporters. In 2025 alone, EDC supported more than 545 cleantech companies, working with firms of all sizes to help scale solutions that drive the energy transition forward.

“We’re seeing continued momentum in cleantech, driven by the ecosystem of companies, funders and partners working together to scale Canadian innovation. This shared commitment is what helps exporters compete globally and contribute to a cleaner, more resilient future,” says Jeremy Melhuish, EDC’s vice-president of Sectors and International Advisory Services.

Our thanks to the partners and panelists whose perspectives shaped the CES and helped us deliver practical insights Canadian cleantech companies can use to grow globally.

For more information, explore our cleantech insights and resources.