This flow chart shows how the federal government funds most applications to the Sustainable Development Technology Fund.

Government funding

Government funding involves Parliament and Innovation, Science and Economic Development Canada.

Parliament annually authorizes the government to spend public money through transfer payments.

Innovation, Science and Economic Development Canada enters into multi-year contribution agreements with the foundation Sustainable Development Technology Canada, provides transfer payments to the foundation, and monitors and assesses the foundation’s compliance with contribution agreements between the department and the foundation.

The government funding process to provide contributions to the foundation is as follows:

• Parliament authorizes public money to be spent.
• The department reviews the foundation's cash flow forecasts.
• The department provides transfer payments to the foundation.

Application

The application process involves Sustainable Development Technology Canada and ultimate recipients.

The foundation reviews the eligibility of project applications against contribution agreement criteria, awards funding to board-approved ultimate recipients, assesses progress against milestones and provides subsequent funding to ultimate recipients, and reports its annual performance and other required information to the department.

An ultimate recipient applies for project funding to develop new sustainable development technologies and enters into a project funding agreement with the foundation.

The process for most applications to the foundation is as follows:

• Funding applications are received by the foundation.
• Foundation staff review and assess applications.
• The Project Review Committee of the foundation's board screens and assesses applications.
• The foundation's board approves applications.
• The foundation enters into a project funding agreement with ultimate recipients.
• Initial funding is provided.
• Milestones are managed.
• Subsequent funding is provided.

This flow chart shows the 2 ways that directors can be appointed to the board of the foundation Sustainable Development Technology Canada.

Eight directors are appointed by the foundation’s members. Seven directors are appointed by the Governor in Council—1 chair and 6 directors.

Process for directors appointed by members

• The selection process is initiated by the board’s Governance and Nominating Committee.
• The Governance and Nominating Committee, supported by a human resources recruitment firm, manages the process and recommends the appointment to the members.
• The members approve the appointment, and the Governance and Nominating Committee chair notifies the successful candidate.
• The director is appointed to the board.

Process for Governor-in-Council appointees

• The selection process is open to all Canadians.
• The Minister of Innovation, Science and Industry, supported by Innovation, Science and Economic Development Canada, manages the process and recommends the appointment to the Governor in Council.
• The Privy Council Office ensures that the proposed appointment meets all requirements.
• The Governor in Council makes the appointment, and the minister notifies the successful candidate.
• The director is appointed to the board.

This diagram shows the results of the applications to 3 streams of the foundation Sustainable Development Technology Canada for the period from 1 March 2017 to 31 December 2023.

During the period, there were 532 projects that applied for funding and submitted detailed proposals. Sustainable Development Technology Canada also received 804 applications during the audit period that did not submit a detailed proposal.

Of the 532 detailed proposals that were submitted, 150 were rejected by the foundation.

The remaining 382 detailed proposals that were submitted were reviewed and assessed by the foundation.

Of the 382 detailed proposals that were reviewed and assessed, 134 were rejected by the foundation.

The remaining 248 detailed proposals that were reviewed and assessed were assessed and screened by the board’s Project Review Committee.

Of the 248 detailed proposals that were assessed and screened, 22 were rejected by the board.

The remaining 226 detailed proposals that were assessed and screened were approved by the board. There was $836.2 million approved.

The 226 detailed proposals that were approved by the board can be broken down as follows:

• There were 51 projects completed by ultimate funding recipients. There was $164.3 million approved and $188.2 million spent. Amounts spent can exceed amounts originally awarded when the board and foundation agree to project modifications.
• There were 138 projects ongoing by ultimate funding recipients. There was $517.9 million approved and $326.3 million spent.
• There were 37 projects cancelled or terminated by the foundation. There was $154.0 million approved and $35.2 million spent ($6.2 million considered a debt to the Crown).