Bbk canada energy efficiency v2 150114

Energy Efficiency in Buildings and Industry

CANADA - ENERGY EFFICIENCY STUDY

OFFICIAL PROGRAM

PARTNER

ENERGY EFFICIENCY STUDY 2014 The goal of this report was to evaluate opportunities for growth and collaboration in the energy efficiency industry in Canada for Swiss exporters.

Based on a comparative analysis of information gathered, a series of recommendations have been made, highlighting the opportunities for growth, innovation, and collaboration in the energy efficiency industry in Canada for Swiss firms.

Date: November 2014 Language: English Number of pages: 33 (inclusive of cover and Appendix) Author: Pidari Consultancy Other sectorial Reports: Are you interested in other Reports for other sectors and countries? Please find more Reports here: www.s-ge.com/reports

DISCLAIMER Such information is intended, but not guaranteed, to be correct, complete, and up-to-date. The information is general in nature, subject to change, and is provided without any warranty, either expressed or implied as to quality, accuracy or fitness for a particular purpose. The information must not be relied upon in connection with any investment decision, without prior verification by user.

Readers are responsible for assessing the relevance and accuracy of the content of this publication. Pidari Consultancy will not be liable for any loss, damage, cost, or expense incurred or arising by reason of any person using or relying on information in this publication.

Contents

5.4.

Main Challenges ______________________ 24

5.5.

Market Opportunities __________________ 24

EXECUTIVE SUMMARY __________________6

5.6.

Key Competitors ______________________ 26

BUSINESS OPPORTUNITIES IN EE IN

6.

MARKET ENTRY STRATEGIES ___________ 27

GENERAL _____________________________8

6.1.

Relevant Regulations ___________________ 28

3.1.

Energy Efficiency in Canada _______________ 9

6.2.

Free-Trade Agreement __________________ 29

3.2.

Relevant Regulations ___________________ 10

6.3.

Follow what opinion leaders have to say ______ 29

3.2.1.

Ontario ____________________________ 10

3.2.2.

Quebec ____________________________ 10

7.

APPENDIX ____________________________ 30

3.3.

Energy prices _________________________ 11

7.1.

References __________________________ 30

3.4.

General Opportunities ___________________ 11

3.5.

Key Competitors ______________________ 14

4.

ENERGY EFFICIENCY IN RESIDENTIAL AND

1.

FOREWORD____________________________5

2.

3.

COMMERCIAL BUILDINGS ______________15 4.1.

Market Size _________________________ 15

4.2.

Market Environment ____________________17

4.3.

Relevant Regulations ___________________ 18

4.4.

Main Challenges ______________________ 19

4.5.

Market Opportunities __________________ 20

4.6.

Key Competitors ______________________ 22

5.

ENERGY EFFICIENCY IN INDUSTRIAL BUILDINGS/PROCESSES ________________23

5.1.

Market Size _________________________ 23

5.2.

Market Environment ___________________ 23

5.3.

Relevant Regulations ___________________ 23

5.3.1.

ecoENERGY Efficiency for Industry _________ 23

5.3.2.

CIPEC _____________________________ 23

5.3.3.

ISO 50001 __________________________ 24

List of Figures

Figure 1. Cleantech Sectors. Source: Cleantech Group. ................................................................................................................... 8 Figure 2 Energy Efficiency Gains in Canada ...................................................................................................................................... 9 Figure 3. Regulated Products. Source: Natural Resources Canada................................................................................................ 12 Figure 4 Final energy demand. Source: Statistics Canada. ............................................................................................................. 13 Figure 5 Commercial Sector. Energy Use. Source: Energy Use Data Handbook Tables: Commercial/Institutional Secondary Energy Use by End-Use, Office of Energy Efficiency, Natural Resources Canada. ...................................................................... 15 Figure 6.Value of building permits. Source: Statistics Canada. ....................................................................................................... 16 Figure 7. Expected Benefits from EE Features (According to Building Owners. Source: The Business Benefits of Green Building SmartMarket Report. ............................................................................................................................................................ 17 Figure 8. Importance of Green Office majority of tenants for Tenants/Employees. Source: The Business Benefits of Green Building SmartMarket Report ............................................................................................................................................................. 17

1. Foreword Green Energy and the significant increase of energy efficiency is undoubtable one of the key challenges in the 21st century. But Canada’s energy consumption per capita is one of the highest in the world. Therefore a lot of opportunities arise for Swiss companies in the field of energy efficiency in Canada.

This report shows how Swiss companies already in the market use the potential to grow in energy efficiency and examines the success factors for market entry strategies. Switzerland is in a good position because of it’s reputation being one of the global leaders in the cleantech industry.

According to the first IEA energy efficiency market report 2013, the world EE market volume totaled in 2011 over 300 billion USD. With greenhouse gas emissions of about 20 tonnes / inhabitant in 2010, Canada is the third largest CO2 emittor in the world, behind the USA and Australia. Emissions are well above the OECD average of 12,5 tonnes / inhabitant. “Positive Energy Buildings” have a huge potential for growth.

Swiss companies are well positioned to take advantage of this trend with Switzerland being one of the leading countries in clean technologies and sustainable development. Companies are actively promoting their products and services to deliver better solutions for the future.

This report evaluates the Canadian market conditions and opportunities for Swiss companies in the special field of energy efficiency to promote the transition of the economy. In some special niches the report shows interesting growth markets, e.g. ecofriendly construction materials, high performance windows, heating equipment, energy measurement and monitoring equipment and energy management services and engineering.

We are convinced that these market insights are valuable for all Swiss companies engaged in the energy efficiency market.

Special thanks go to the Swiss Business Hub director in Canada, Mr. Markus Reubi as well as to Pidari Consultancy who has done this study for Switzerland Global Enterprise.

If we can support your company in Canada with more specific information, consultancy or contacts please contact Mrs. Alexandra Schär-Schiller, Senior Consultant for Canada, based in Zurich (aschaer@s-ge.com, +41 44 365 52 12).

We wish you an inspiring and helpful reading.

Markus Reubi Swiss Business Hub Canada Montreal, October 2014

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Chris Watts Regional Director Americas Zurich, October 2014

2. Executive Summary Canada’s energy consumption per capita is one of the highest in the world. Relatively low energy prices have provided little incentives for private households as well as for industry to invest in energy efficiency over the past years.

However, things are changing in Canada, just like elsewhere in North America and the rest of the world. A relatively high general awareness (at least in certain provinces and industries), a clear path towards higher environmental standards and higher energy prices as well as international competition and increasing demand from pioneers are likely to create market opportunities for Canadian and foreign providers of energy efficiency technologies.

The goal of this report was to evaluate opportunities for the promotion of growth and collaboration in the energy efficiency industry in Canada for Swiss exporters. The report: Refines some cleantech/energy efficiency definitions, terms, and concepts; Evaluates possible business opportunities in the energy efficiency sector in Canada for Swiss companies; Identifies the barriers and incentives for energy efficiency efforts in the residential/commercial building and industrial fields in Canada; Highlightes opportunities for growth, innovation, and collaboration for the energy efficiency sector within the Canadian industry; Gives some advice with respect to market entry strategies

• • • • •

Swiss companies like ABB, Belimo, Bühler, Endress & Hauser, Holcim, Oerlikon, Sika, Sulzer and many others enjoy an excellent reputation in terms of efficient use of energy and advanced solutions for the Canadian market. They are faced with the challenge of longer payback periods, compared to Europe. The mentatility of Canadian investors is also different: they are generally looking for shorter payback periods of a maximum of one to three years and for higher returns of investments Pidari Consultancy conducted a series of interviews with company representatives, regulators, and thought leaders in Canada and Switzerland. Many different publications, surveys, studies, and articles were consulted. Based on a comparative analysis of information gathered, a series of recommendations have been listed, highlighting the opportunities for growth, innovation, and collaboration in the energy efficiency industry in Canada for Swiss companies.

Although the challenges facing the cleantech industry and the energy efficiency (EE) subfield must be addressed, the market opportunities for Swiss exporters in Canada are authentic. There is a substantial amount of potential economic savings in the energy efficiency sector, and there is a strong cost orientation in Canada. For instance, financial incentives and automation systems, such as controls and smart building technology, have been used to change human behaviour and save money.

However, until Canada raises its energy costs through measures such as a carbon tax (fully implemented in British Columbia), the so-called “low-hanging fruit,” will dominate in the sector. Due to the short pay-back periods of many projects, the energy efficiency sector is becoming increasingly prominent within the cleantech industry.

The report concludes that the focus in the Canadian energy efficiency field for Swiss exporters should be on:

• • • • • •

energy-efficient building design know-how, especially in renovation and retrofitting of buildings; renewable energy building technology (heat pumps / heat exchangers / wall panels); system engineering and integrated planning and consulting services; monitoring and certification services; smart system communication technology in buildings; equipment for Canada’s oil and gas production industry.

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Switzerland is a leader of cleantech and energy efficiency and has invested time and money into energy-efficient building technology that is generally more advanced than that of Canada. That having been said, Canada has huge potential and opportunity from an efficiency improvement perspective, which is the ideal market entry strategy for Swiss companies to showcase their capabilities and build long-term relationships.

Geographical focus is important in a large country like Canada. In addition, regulation is different from one province to another. There is currently no coherent national strategy for the reduction of energy in place. Therefore, Swiss exporters should focus on those provinces which present the highest potential for energy efficiency projects (mainly: Ontario, Alberta, QuĂŠbec and British Columbia).

Cultural aspects of a region also affect energy consumption within that region, and the increasing importance of energy efficiency and cleantech makes the market environment and opportunities in this field ever more favourable. The key findings from this report translate into direct opportunities for Swiss companies in the Canadian energy efficiency sector, in both the residential/commercial building and industrial fields.

There is no doubt that Canada is not just another market – for companies ready to invest and to be there before changes in regulation and energy prices occur, the North American country presents interesting and stable growth opportunites and the existing EFTA-Free-Trade-Agreement at the moment represents a competitive advantage on the Canadian market for Swiss companies compared to companies from the EU.

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3. Business Opportunities in EE in General Energy efficiency can be defined as the goal to reduce the amount of energy required to provide products and services. There are many motivations to improve energy efficiency. Reducing energy use reduces energy costs and may result in a financial cost saving to consumers if the energy savings offset any additional costs of implementing an energy efficient technology. Reducing energy use is also seen as a solution to the problem of reducing carbon dioxide emissions. According to the International Energy Agency (IEA), improved energy efficiency in buildings, industrial processes and transportation could reduce the world's energy needs in 2050 by one third, and help control global emissions of greenhouse gases (IEA, 2010).

In this report Energy Efficiency is considered to be one of eighteen different sectors of ‘clean technology’ (Montalvo, 2008). Growth and development of cleantech varies amongst sectors. Some sectors have experienced a decline in investments recently (e.g. renewable energy). The energy efficiency (EE) sector, on the other hand, has become a prominent division in today’s cleantech industry

The Cleantech Group has an annual compilation of the top 100 cleantech companies internationally, called the Cleantech 100. This list also highlights sectors of cleantech and trends in the cleantech industry. As solar power, energy storage, and biofuel companies fall from the listing, energy efficiency cleantech companies dominated the list for 2013. Out of 100 of the top companies, 27 focus on EE, 7 more than in 2012.

Figure 1. Cleantech Sectors. Source: Cleantech Group.

Within EE, several subcategories exist. The top subcategories, as determined by Cleantech Group are: lighting, efficient heating and cooling, home energy management, energy services, and efficient electronics.

The International Energy Agency (IEA) estimates that investment in key energy efficiency markets worldwide totalled up to $300 billion in 2011. This is a conservative estimate based on an assessment of direct and leveraged investment in identifiable energy efficiency initiatives by the public sector, multilateral finance institutions, and major private institutions.

Investment in EE has also contributed to reducing the amount of energy needed to produce each unit of gross domestic product (GDP). Detailed analysis of 15 IEA member countries revealed the important role that EE has played in reducing energy intensity over the past two decades, alongside structural developments in their economies, and how this has allowed these countries to generate more GDP for each unit of energy consumed. Across the 15 IEA member countries, EE effects have contributed more, on a cumulative basis, to reducing energy intensity than structural economic changes have done.

A survey of cleantech companies highlights the 5 most important reasons why companies seek to increase their energy efficiency: • •

A large majority (77%) of companies pursued greater energy efficiency to reduce costs, while 31% did so to improve the reliability of their energy supply.

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• • •

Another 23% were concerned with carbon emissions, and 15% with energy price volatility.

Another 15% of the survey respondents indicated their choices were driven by concerns about regulatory compliance.

From the same population, 92% of companies had the objective of reducing energy costs: • • •

Over 60% aimed to reduce their company’s carbon footprint, and 59% aimed to reduce exposure to fossil-fuel fluctuations, while 37% wishes to reduce exposure to fossil-fuel availability risk (Ernst & Young, 2012).

3.1. ENERGY EFFICIENCY IN CANADA With greenhouse gas emissions of about 20 tonnes / inhabitant in 2010, Canada is the third largest CO2 emittor in the world, behind the USA and Australia. Emissions are well above the OECD average of 12.5 t / inhabitant. Although Canada is one of the countries with the highest CO2 emissions, the government is committed to reduce emissions in the long term. For example, Canada is trying to reduce its greenhouse gas emissions by 17% in 2020 on the basis of the Copenhagen agreement.

However, the energy policy in Canada is subject to concurrent legislation, which varies considerably depending on the province, particularly in the area of energy efficiency. As a consequence, conditions are different in each province. In Alberta, for example, the current market is largely liberalized, while transmission and distribution networks remain state controlled. The market in Ontario is partialy liberalized.

EE is seen as the most important element in Canada’s strategy to reduce greenhouse gas (GHG) emissions and fight climate change. Several governmental and private initiatives are active in the field of EE, particularly in the building industry, which results in business opportunities, and the size of the market is growing. There are currently numerous regulatory and policy shifts occuring in Canada, and across the globe, pertaining to the cleantech industry, and more specifically to energy efficiency.

In 2013, the Office of Energy Efficiency at the Department of Natural Resources Canada (NRCan) has estimated the EE Potential for 2011-2035. Estimated untapped EE potential per category is listed below: • • • •

Industry 57% Transportation 64% Power Generation 80% Buildings 82%

The IEA recommends that efficiency improvements more than double the 1980-2010 rate in order to capture these benefits.

Furthermore, energy productivity in Canada has improved, leading to 25% improvement in energy use intensity per capita vs. energy use intensity per GDP (data from 1990-2000). Due to technological improvements in the past, energy efficiency gains in the Canadian economic sector (1990-2010) are estimated to be: ENERGY EFFICIENCY GAIN SECTOR Industry

PERCENTAGE INCREASE

AMOUNT OF SAVINGS (CAD)

20%

$6.1 billion

Transportation

24%

Passenger $8.2 billion; freight $3.4 billion

Commercial/institutions

30%

$5.6 billion

Residential

36%

$9.0 billion

Figure 2 Energy Efficiency Gains in Canada

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3.2. RELEVANT REGULATIONS There are currently no binding federal limits on greenhouse gas (GHG) emissions in Canada. Interms of regulation, Canada's Energy Efficiency Act was passed by Parliament in 1992 on a national level and provides for the making and enforcement of regulations concerning minimum energy-performance levels for products, as well as the labelling of energy-using products and the collection of data on energy use.

It cannot be stressed enough that due to the federalistic structure of Canada, regulations and standards for EE strongly vary between different provinces. The report focusses on two provinces, Ontario and Québec, which are home to 21 Mio. inhabitants, or 2/3 of the Canadian population. The two Canadian provinces are considered to be among the leaders in EE in Canada and have seen up to a 6 to 1 return on their investment.

It is difficult to predict the future of cleantech and/or the energy efficiency. There is an effort to bolster the EE industry in Canada, but there are also pending regulatory changes that will impact the market environment and competing local/foreign companies. Though there is an emphasis on EE in Canada, it is currently a short-term mindset – this serves as a market opportunity for companies, such as Swiss exporters, that can fill gaps in technology that are not covered by foreign companies, especially with the onset of more strict regulations.

3.2.1. Ontario The Green Energy and Green Economy Act was passed by the Ontario government in the spring of 2009 following an extensive campaign by the Ontario Sustainable Energy Association (OSEA) and its alliance of environmentalists, farm organizations, community and labour groups, and First Nations. Prior to its passage, OSEA had been highly successful in persuading the government to establish its Renewable Energy Standard Offer Program in 2006. This program, with its limited tariffs, was one of the most progressive pieces of energy legislation in North America in more than a decade, and a precursor to the Green Energy Act (OSEA, 2014). However, the program did not go far enough to truly spur the development of renewable energy. What was needed was overarching legislation that would establish renewable energy as a priority and clear some administrative and regulatory obstacles that were hindering the generation of renewable energy. Thus, the Green Energy and Green Economy Act was born.

In the midst of possible provincial party changes and a pending provincial election next year, Ontario could choose to follow British Columbia’s lead and introduce a tax on the emission of greenhouse gases, i.e. a carbon tax. Such a tax would be applied to the consumption of all major types of fossil fuels, based on the fuel’s carbon content, and it could represent a practical blending of fiscal and environmental policies. Although the intermittent debate in Canada about policies to address climate change continues to be extremely focused on the damaging effect of taxes, it is more and more widely agreed that a new Ontario carbon tax could fill the province’s fiscal hole, avoid the economic damage caused by higher income taxes, dodge the unpopularity of increasing the HST, and improve Canada’s performance on a critical environmental challenge (Pew, 2014).

3.2.2. Quebec Just like on the federal, various support programs and incentives for increased use of energy efficiency measures, equipment and processes are in place on the provincial level. In Québec you find for example: • •

an Energie Efficiency plan, also called the Stratégie énergétique 2006-2015 / L’énergie pour construire le Quebec de demain.

In line with the adopted Programme d'appui au secteur it is Manufacturier companies are offered financial assistance for the implementation of Energy efficiency analysis and for the implementation of energy efficiency measures.

The EE market in the province is currently in a growth spiral with investment from the provincial government and the creation of regulatory conditions, forcing private investment in the implementation of such technologies. This is in line with the overarching energy strategy they adopted almost 10 years ago, and which guides the course of future regulatory development.

Thus, Quebec can be seen as a market with a stable vision, which has been keeping track of the issue in spite of political change (Ecotech Quebec, 2012).

Though British Columbia (BC), Ontario (ON), and Quebec (QC) are likely to be the provincial leaders in energy efficiency in Canada, it is not black-and-white when regulatory changes will occur. There have also been many subsidy programs in various Canadian provinces, especially in Quebec. The future of these programs is uncertain, and it is recommended for exporters to continue to study their particular market closely.

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3.3. ENERGY PRICES The per capita consumption of energy in Canada is more than Switzerland due to differences in cost of energy. In Canada, where the cost of energy is much lower than in other nations, energy conservation is not a priority for citizens or for investors who experience a longer payback period than those in other countries. The topic of energy consumption is more prominent in Switzerland due to higher energy costs. Residents are forced to adapt in order to maintain their quality of living, while businesses attempt to maximize potential profits and minimize costs. Compared to Canada, Swiss energy consumption is relatively low. According to the World Bank estimates, Switzerland consumes 3189 (kg of oil per capita) kWh/pc, compared with Canadian consumption of 7270 (kg of oil per capita). Environmental responsibility is not motivating enough in Canada to push business towards investments and commitment in energy-efficient practices. A business model which yields monetary incentive is a more effective driver.

Energy prices in Canada vary significantly, depending on the province. This is particularly the case for electricity prices which vary greatly depending on the predominant energy source. Provinces such as Quebec, British Columbia and Manitoba with high amount of hydropower usually have lower prices than provinces with nuclear power and fossil fuels as primary energy source. Fro industrial consumers, Québec currently has some of the lowest prices overall.

Electricity prices for commercial and industrial customers are generally below the prices for private households. In the past ten years, prices for industrial customers decreased by approximately 3.3% while prices for commercial and private customers increased by 4.0% and 7.9%. In its forecasts, the National Energy Board estimates that by 2035 prices will increase by about 43%, mainly due the cost of developing new energy sources of improved grid.

3.4. GENERAL OPPORTUNITIES General statements are very difficult to make, but it is clear that higher energy prices and new incentive programs will create new opportunities for companies who are willing and able to enter the Canadian energy efficiency market at an early stage. The example of the German wind turbine producers and their success in provinces like Ontario after the introduction of a new feed in tariff system shows that companies have to be ready and react fast if changes occur.

Any changes in the law such like the Energy Efficiency Act can lead to new opportunities. Future amendments are planned and will roll out in the next 2 years: Amendment 13 will: • increase the stringency of the minimum energy performance standards (MEPS) for 15 currently regulated products: (1) chillers, (2) commercial self-contained refrigeration products, (3) gas water heaters, (4) general service incandescent reflector lamps, (5) general service fluorescent lamps, (6) oil-fired water heaters, (7) packaged terminal air-conditioners and heat pumps, (8) room air-conditioners, (9) residential refrigerators, (10) residential freezers, (11) residential dishwashers, (12) residential clothes washers, (13) residential clothes washer-dryers, (14) commercial clothes washers, and (15) residential clothes dryers. With the exception of gas water heaters all standards are aligned with those in force or about to be in force in the US; • introduce a standard for mercury vapour lamp ballasts used in outdoor applications that will have the same effect as the ban on mercury vapour lamps in the US; • update the scope, reporting and compliance requirements for 7 currently regulated products: (1) exit signs, (2) external power supplies, (3) gas fireplaces, (4) gas furnaces, (5) general services lamps, (6) large commercial air conditioners and large heat pumps, (7) televisions to reflect updated standards both in the US and Canada; Amendment 14 will: • increase the stringency of the minimum energy performance standards (MEPS) and/or update reporting and compliance requirements for 6 currently regulated products: (1) central air-conditioners and heat pumps, (2) vending machines, (3) oil furnaces, (4) fluorescent lamp ballasts, (5) dry-type transformers, and (6) large air-conditioners and heat pumps; • introduce new MEPS and associated reporting and compliance requirements for 11 products: (1) metal halide ballasts, (2) commercial boilers, (3) line voltage thermostats, (4) pre-rinse spray valves, (5) tankless gas water heaters, (6) commercial water heaters, (7) commercial refrigeration with remote condensing unit, (8) small electric motors, (9) microwave ovens, (10) walk-in refrigerators, and (11) pool heaters; • These requirements will be aligned with standards in the US, unless there are unique Canadian circumstances.

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Legislation will also have consequences for imported goods and create new opportunities for products and service with high environmental standards. Canada’s Energy Efficiency Act and Energy Efficiency Regulations prohibit the importation of certain energy-using products (for the purpose of sale or lease) unless specific requirements are met by importers/dealers, as can be seen in Figure 3.

HOUSEHOLD APPLIANCES

HEATING AND COOLING EQUIPMENT

LIGHTING PRODUCTS

COMMERCIAL PRODUCTS

Clothes dryers

Boilers: gas, oil-fired, electric

Packaged terminal air conditioners and heat pumps

Exit signs

Automatic ice-makers

Clothes washers

Chillers

Room air conditioners

Fluorescent lamp ballasts

Dry-type transformers

Washer/dryer combinations

Fireplaces: gas

Large air conditioners, heat pumps and condensing units

General service fluorescent lamps

Refrigerated beverage vending machines

Dehumidifiers

Furnaces: gas, oil-fired

Gas unit heaters

General service incandescent reflector lamps

Commercial selfcontained refrigerators and freezers

Dishwashers

Heat pumps: ground-source, internal water loop

ELECTRONIC PRODUCTS

General service lamps

Commercial clothes washers

Freezers

Compact audio products

Torchieres

ELECTRIC MOTORS

Ranges: electric, gas ovens, cooktops

Digital television adapters

Compact fluorescent lamps

1-500 HP (0.746-375 kW)

External power supplies

Traffic signal and pedestrian modules

WATER HEATERS

Ceiling fans and ceiling fan light kits

Electric, gas, oil-fired

Refrigerators

Air conditioners (central) and heat pumps: split-system, singlepackage, single-package vertical

Televisions Wine chillers Video products Figure 3. Regulated Products. Source: Natural Resources Canada.

As an example, technical specification for many heating, ventilation, and air conditioning (HVAC) equipment have been updated over the last year. The same is the case for windows. For products set to change in 2014 and beyond, there is further information available on the Natural Resources Canada (NRCan) website. This includes the United States’ Environmental Protection Agency (EPA) ENERGY STAR Program. Feel free to visit http://oee.nrcan.gc.ca/regulations/17311 for the most upto-date information. The global windows and HVAC market is large and growing.

General conclusion 1: Further changes in the law will be made and new incentive programs will be introduced sooner or later, thus new opportunities for Swiss products and sevices in the respective fields arise. If one is delivering a high-quality product as a Swiss exporter and one is present on the Canadian market early enough, one can take advantage of such changes and quickly become a preferred supplier.

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Among the provinces, Ontario, Alberta and Quebec (with ON as the top consumer, and QC as the second largest) consume the most energy (74% of total energy demand in 2010, as can be seen in the chart below). The regions with the highest demand of energy will also offer the highest potential for EE.

Figure 4 Final energy demand. Source: Statistics Canada.

General conclusion 2: For a Swiss provider, it is recommended to concentration on certain provinces like Ontario, Québec, B.C. or Alberta and to follow a targeted approach.

Since energy conservation is not a priority for citizens or for investors in Canada, large and expensive investments with a long payback period are not implemented.

General conclusion 3: Until Canada raises its energy costs and exert greater pressure for EE, the so-called “low-hanging fruit,” will dominate in the sector. Swiss exporters should focus on energy-efficient upgrades with high returns and short payback periods.

With governments developing stricter energy efficiency standards, the field of energy audits and energy efficiency training will certainly experience further growth and provide new business opportunities. The province of Quebec has the enviable position of being able to count on several research chairs in energy efficiency (e.g., Chair in Industrial Energy Efficiency-Sherbrooke, Industrial Research Chair T3E-ÉTS), research centres in GHG reduction and energy consumption (e.g., CanmetENERGY-Varennes), renewable energy integration (e.g., NGTC-Boucherville) and industrial process optimization (e.g., INO, Optech). The economic fabric of Quebec, which is predominantly manufacturing, combined with the province's hot summer and cold winter weather, makes it a prime candidate for energy efficiency project development and testing and industrial process optimization (Ecotech Quebec, 2012).

The Canadian Market for Clean Technology Opportunities and Challenges for Swiss Companies report argues that the main areas with high potential for Swiss companies to set foot in the cleantech field in Canada are in the waste, green building, renewable energy and GHG‐emission sectors (van Dijk, 2010). Presence and concrete interests of Swiss companies in the market confirm that the following energy-efficiency fields should be looked at: 1.

2.

3.

4.

5.

building design know-how (both residential and commercial) renewable energy building technology (heat pumps / heat exchangers / wall panels) system engineering and integrated city planning services waste management technologies smart system communication technology

General conclusion 4: Opportunites in EE can be found in many different sectors, both for products and services. Providing expertise in the form of consulting, auditing, analyzing, measuring and testing is often seen as an entry point and/or is offered in connection with high-quality products.

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3.5. KEY COMPETITORS In order to look at successful competitors you have to define precisely the kind of market that you are interested in. Generally speaking there are some interesting Canadian companies which are usually supported by various Canadian governmental programs. This is giving them a home advantage, while generally being faced by lack of international exposure or international experience limited to North America.

Some of the most interesting and succesful Canadian companies based in Ontario and Quebec are included here: •

•

•

•

•

•

•

• •

•

•

CARNOT REFRIGERATION designs and produces top-end, custom-made energy efficient systems using environmentally friendly methods. It specializes in energy-recovery refrigeration systems for supermarkets, refrigerated warehouses, and arenas (www.carnotrefrigeration.com).

Effenco is leading the way towards improved energy efficiency in the field of transportation. The HEAD hydraulic hybrid system helps refuse trucks reduce fuel consumption by 15-25%. Fleet operators can also diminish their greenhouse gas emissions by 19 to 28 tonnes per year for each hybrid truck (www.effenco.com).

ENBALA Power is an operator of a network enabling large electricity users to deliver demand-side regulation services to the grid. The company uses sophisticated software to connect and control distributed electricity loads that can be increased or decreased rapidly and frequently to help keep the grid balanced (www.enbala.com).

FilterBoxx is a supplier of containerized waste and wastewater. It is the leading provider of packaged potable water and wastewater treatment systems to drilling, mining and pipeline camps, small municipalities, and Aboriginal communities (www.filterboxx.com).

Frygy Cube International is specialized in refrigeration systems used to transport merchandise. Frygy Cube has developed a new ecological and economic cold storage system used primarily to deliver fresh and frozen foods (www.frygycube.com).

Gedden is recognized globally for its innovative, flexible and efficient solutions to stimulate greenhouse gas (GHG) emissions reduction. Gedden's solutions provide a variety of businesses with sustainable management alternatives focussed on re-using waste, optimizing transportation and increasing energy efficiency. By measuring and quantifying GHG reduction efforts, these efforts can be converted into carbon credits exchangeable on national and international markets (www.gedden.com).

Mechtronix Environment Inc. (MEI) has developed and markets Valoris, the clean solution for the treatment of sludge and digestate. ValorisTM offers municipalities and industries a safe and environmentally-friendly sludge management system. Energy efficiency, safety and the production of valuable by- products like fertilizer, green energy and clean water are the primary competitive advantages of Valoris (www.mechtron.cpanel.modulis.ca).

Newterra is a developer and manufacturer of technology for treatment of wastewater, greywater and process water, as well as groundwater remediation, for industrial and municipal markets (www.newterra.com).

Ostara Nutrient Recovery Technologies is a Provider of solutions recovering phosphorus and nitrogen from used water streams and transforming them into environmentally responsible, slow-release fertilizer (www.ostara.com).

Pulse Energy has developed a software platform that allows utilities to engage with their commercial customers to help them understand and manage their electricity consumption. Pulse Energy has gained recognition and traction across both North America and Europe for its software. Pulse Energy, in collaboration with SES Consulting, was also named one of Canada’s Clean50 top 15 projects (www.pulseenergy.com).

Also focused on energy data, Toronto-based Zerofootprint’s VELOplatform encourages consumer engagement and conservation in a variety of areas, including electricity consumption, carbon footprinting, and fleet and fuel optimization. Zerofootprint has won several awards for its software, including the Popular Choice Award Grand Prize in the Apps for Energy contest hosted by the United States Department of Energy (www.zerofootprintsoftware.com).

For some other examples of successful Canadian cleantech businesses, please refer to SDTC’s portfolio of 250+ companies in this subfield: http:// sdtc.ca/uploads/Portfolio_English.html.

Depending on the area, US and other foreign competitors are quite present. Looking at specific countries, particularly the US and Germany are pushing exports to Canada and encourage companies to increase their presence on the Canadian EE market by means of specific programs and initiatives.

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4. Energy Efficiency in Residential and Commercial Buildings Energy consumption in buildings comprises a substantial portion of overall national energy consumption. In Canada, buildings account for 40% of all energy consumed and contribute 8% of GHG emissions. Office buildings in particular are responsible for a large portion of energy use among commercial buildings globally. This results in much room for improvement in Canada via new construction and retrofitting. The recent widespread recession has resulted in less new construction and greater attention to retrofitting and rehabilitating older buildings to improve energy efficiency (Dustin, et. al, 2014).

In 2010, the Canadian commercial/institutional buildings sector used approximately 1057 petajoules of energy. In most commercial buildings, the majority of that energy is used for lighting, heating and cooling, motors for large equipment such as elevators and water heating (Energy Efficiency Trends in Canada, Natural Resources Canada 19902010, Office of Energy Efficiency).

The following chart depicts the energy use breakdown of a typical commercial building.

Commercial Sector Energy Use Auxiliary equipment

1% 8% 17%

Auxiliary motors 8%

Lighting Space cooling

49% 11% 6%

Space heating Street lighting Water heating

Figure 5 Commercial Sector. Energy Use. Source: Energy Use Data Handbook Tables: Commercial/Institutional Secondary Energy Use by End-Use, Office of Energy Efficiency, Natural Resources Canada.

4.1. MARKET SIZE In 2011, the construction industry in Canada outpaced the overall economy (GDP growth of 2.6%) in both output and employment growth. Construction accounted for 6.0% of Canada’s GDP in 2011, contributing $76.5 billion, and the industry grew 4.2% from 2010. The strongest component was engineering, repair, and other construction activities, which gained 7.0%. Roughly 1.3 million people worked in construction in 2011, making it the fifth-largest employer by industry and accounting for 7.3% of jobs among all industries (Statistics Canada, 2011). Small and medium sized companies are predominant (90% of companies are SME).

The value of building permits issued has increased every year since 1995, except during the 2008–2009 recession.

In 2011, the total value was $74.0 billion, up 2.1% from 2010, and just below the pre-recession peak of $74.4 billion in 2007.

Among the provinces, Ontario had the highest value of building permits with $28.0 billion, down 0.4% from 2010; Quebec was second with $15.5 billion, up 4.4% from 2010 (Statistics Canada, 2011).

In 2011, 193’950 housing starts were registered in Canada, up 2.1% from 2010. There were 174’437 houses under construction at the end of 2011, a 9.3% increase from 2010. The majority of housing starts were in Ontario (67’821 units) and CANADA - ENERGY EFFICIENCY STUDY

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Quebec (48’387 units), up 12.2% and down 5.8% from 2010, respectively. The value of residential building permits rose from $20 billion in 2000 to $44 billion in 2011. The value of non-residential building permits rose from $17 billion in 2000 to $30 billion in 2008. It decreased to $26 billion in 2009, then increased to $29 billion in 2011 (Statistics Canada, 2011).

Figure 6.Value of building permits. Source: Statistics Canada.

Until 2020, the Construction Service Council expects investments to grow by 23% within the residential market market, by 26% in the non-residential market and by 18% in retrofitting.

Integration of new efficient technologies within renovation bypasses the slow property planning process and reuses the existing infrastructure, making it a quicker option than demolition (Dustin, et. al, 2014). The decision between refurbishment or demolition and new construction of older buildings has been a controversial topic. Surprisingly, demolition tends to be a more costly and slower process. Contrary to retrofitting existing buildings, the process of demolition and reconstruction may generate substantial adverse reaction in the affected community. The so-called ugly site can damage adjacent properties by decreasing investment in the neighbouring areas (Power, 2008).

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4.2. MARKET ENVIRONMENT Due to the highly regulated banking system and control of the mortgage market, the Canadian building market can be considered as rather secure and stable in international comparison.

Decisions of owners of buildings in Canada and elsewhere in North America are typically based on return on investment calculations and little influenced by design-factors, at least compared to Europe. Therefore, the expected benefits for EE features in a building, from the perspective of the building owner, are also different than those in Europe.

There is a high cost orientation in Canada, which is reflected in Figure 7. The same report showed that a so-called green office has significance for tenants/employees for differing reasons, which is reflected in Figure 8.

Figure 7. Expected Benefits from EE Features (According to Building Owners. Source: The Business Benefits of Green Building SmartMarket Report.

Figure 8. Importance of Green Office majority of tenants for Tenants/Employees. Source: The Business Benefits of Green Building SmartMarket Report

The Canada Energy Efficiency Alliance (CEEA) has recently published a survey. Some survey findings point to the fact that the majority of Canadian companies want to make improvements when it comes to energy efficiency. For instance, 73% of the business sample said energy efficiency was a high priority for their organizations, and 76% of builders and architects share this view. The motivation to make energy efficiency improvements is higher among those with a higher concern about energy costs. Canadian companies perceive cost savings or greater efficiency in operations or production as the most important benefit to them from undertaking energy efficiency measures (CEEA, 2014). The benefit to the environment or their environmental record is secondary, which tends to be different in Switzerland or Europe in general.

Despite the overwhelming concern and interest, there is much more companies can do when it comes to energy efficiency.

Only 27% believe they are doing all they can; most (56%) have done or are doing some things. Smaller employers and those with the least operating space tend to be those who have yet to undertake any energy efficiency measures (14%); less than half (38%) have set targets for energy efficiency and cost savings. Furthermore, one third of renters said they leave most decision-making regarding energy efficiency and related initiatives to their landlord (CEEA, 2014).

Among those who have not done all that they can, the initial cost of implementation was the most common (41%) reason why they have not done more to boost their organization’s energy efficiency; lack of time (16%) and knowledgeable personnel (9%) were secondary reasons.

Those that have invested in energy savings with upfront costs have mostly invested in lighting and improved heating and air; 26% replaced or upgraded equipment, appliances, or trucks; 14% engaged in building renovations; 13% installed vehicle or equipment trackers and usage meters; few have conducted energy efficiency audits, with the exception of the institutional/public sector (12% among them). As with upfront investments, initiatives that required no investment most commonly include lighting and heating or air; employee/ customer engagement as another, though usually secondary component. Despite the preference to deal with heating, air conditioning or lighting, the building sector (construction and architects) believes the market places about the same importance on efficient heating and air as they do on building design efficiency (CEEA, 2014).

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Most building owners and managers (68%) would support more stringent energy efficiency standards in building codes, even if they raised the cost of real estate. There is majority support in the building sector for stricter energy standards in building codes, even if it raises cost of commercial real estate, especially among architects. Builders and architects suggested a range of measures to help overcome barriers: 21% said reduced costs or incentives; 14% said codes and standards or regulations; 17% said public awareness or education, and 2% said awareness of financial benefits; and the final 6% said knowledge, expertise or education for the sector.

The majority of building owners and managers would be willing to consider an investment in something like an energy efficiency retrofit, if they knew they could make their money back in 2 years, which again shows the high cost orientation in Canada. Interest drops significantly if they made their investment back in 5 years.

Though it can be seen that many think that EE is important, there is less than ideal amount of action in Canada, due to the low energy costs, large influence of the energy lobby groups, and lack of awarenes, amongst other factors.

4.3. RELEVANT REGULATIONS National regulation is manly related to the National Building Code 2011 and the Model National Energy Code for Buildings 2011. Generel guidelines (“opt-in”) and standards of the National Research Council Canada tend to influence building codes on the provincial and municipal level.

For energy efficiency in buildings, volountary standards like LEED have become important drivers of investments.

The Leadership in Energy and Environmental Design (LEED) Certification standard was created in 1998 by United States Green Building Council (USGBC), a non-profit organization composed of various industry stakeholders including building contractors, architects, and environmentalist groups who share an interest in the promotion of green buildings in the US/Canada. Over the past 11 years, the Canada GBC has certified over 1000 LEED buildings in Canada and registered over 4000, the second highest number in the world.

The label is also gaining in importance on an international level. In Switzerland, the recently built Prime Tower in Zurich has been LEED certified and an increasing interest of investors, constructors and architects is noticeable for the certification standard (www.greenbuilding.ch).

Each version of LEED is continuously improved upon as technology changes and global competition rises. Increasing demand for minimizing energy consumption and environmental impact throughout the world creates a competitive nature to the innovative energy efficiency sector. LEED is a crucial aspect to the sector within Canada. This standard has become part of the Canadian building industry terminology and is an effective energy efficient practice as well as marketing strategy (Dustin, et. al, 2014).

LEED has a certification for renovations, which is easier to meet than for newly constructed buildings, thus promoting the renovation of old facilities or brownfields. The second characteristic of the standards is the reassessment of LEED-certified buildings every few years after initial certification. This part of the standard sets it apart from other building standards, such as Minergie. LEED buildings can be re-certified as often as every year, if the building owner chooses. However, buildings are required to be reassessed and recertified at maximum every five years, which ensures that buildings are operating at the efficiency level at which they were first certified (Sims & Meier, 2012). This follow-through aspect of LEED makes it an effective and successful standard within the EE sector.

LEED follows a holistic approach for certification by scoring buildings using various categories such as water management, building materials, and energy efficiency. The use of these categories emphasizes a holistic approach to sustainability, but tends to dilute the focus on energy efficiency. By contrast, Minergie ranks solely on a building’s energy consumption, which pushes buildings toward optimal energy efficiency, but tends to ignore other sustainability goals. LEED’s holistic strategy requires the use of expert certifiers and limits the use of available building materials, which increases the costs of construction and certification compared with Minergie.

Policies applying to new building construction as well as renovation of existing buildings allow for the promotion of energy efficiency. As a result, the Minergie building standard was created in Switzerland, and has become the mandatory minimum standard in many parts of the country. This standard has allowed the country as a whole to grow and promote the development CANADA - ENERGY EFFICIENCY STUDY

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of the energy efficiency sector. Switzerland’s Minergie standard was created to challenge existing energy efficiency laws and to push the government into imposing stricter regulations (Schoch and Von Hunnius, 2010). Similar trends are observed in Canada.

Other standards in Canada, including the Green Globes standard (www.greenglobes.com), are increasingly popular.

Green Globes is an online green building rating and certification tool that is used primarily in Canada and the USA. Green Globes was developed by ECD Energy and Environment Canada, an arms-length division of JLL. Green Globes is licensed for use by BOMA Canada (Existing Buildings). There are Green Globes modules for New Construction/Significant Renovations, Commercial Interiors (i.e. Office Fit-ups) and Existing Buildings (offices, multi-residential, retail, health care, light industrial).

The Green Globes New Construction assessment can be used for a wide range of commercial, institutional and multiresidential building types including offices, school, hospitals, hotels, academic and industrial facilities, warehouses, laboratories, sports facilities and multi-residential buildings.

4.4. MAIN CHALLENGES The decision-making process involved in implementing energy-efficient technology can be highlighted in the (cultural) differences between approaches to new building construction and renovation in Switzerland and Canada.

Prior to the fluctuation of the real estate market, individuals and companies in Canada frequently purchased and sold their properties. This trend led to investing in less expensive properties which had poor energy profiles (Dustin, et. al, 2014). By contrast, Switzerland properties are seen as “once-in-a-lifetime� investments. Individuals and companies were more inclined to invest in buildings that are efficient and simultaneously more cost effective over time, even if the initial costs might be slightly higher (Mosteiro-Romero & Krogmann, 2014). In comparison to a Swiss building lifespan of approximately 100 years, buildings in Canada are made to last until the arrival of new technology (Kneifel, 2009). Normally, this constitutes constructing for 25-50 year periods.

Fluctuations in the Canada market that have accompanied the economic recession have further changed construction activity.

Only in recent times, with less available capital for new building construction, companies have begun to place a greater emphasis on renovation (Dustin, et. al, 2014).

Based on recent cultural studies (Dustin, et. al, 2014), not only does the price of energy act as the major stimulus for the adoption of energy efficiency strategies and technologies in buildings, but the frugal attitudes adopted by the Swiss in the past permeate many aspects of Swiss culture. This includes the ways in which they design, build, operate and regulate their residential and commercial buildings in order to save energy. Such kind of broad tradition and awareness cannot be expected in Canada.

Guidelines for the design and construction of more energy-efficient buildings have been developed in both Switzerland and Canada, with their building standards Minergie and LEED, respectively. While each of these building codes have proven to be quite successful in their respective nations, each country can learn from the other in regards to these standards as well as other policies and programs. For example, the LEED program requires periodic evaluation of key parameters following construction in order to ensure the building continues to perform to the standards of its certification. Minergie does not yet require such reassessment; however, it is much more focused on energy efficiency than the LEED standard. Each of these countries and associated cities has strengths and weaknesses within the sector, which leads to the opportunity for growth and collaboration (Dustin, et. al, 2014). However, European products have to be adapted to the local standard, which requires investment into the development of products and sufficient resources in Canada.

The majority of Canadian residential housing is poorly insulated, with windows accounting for 10-20% of energy losses. Active window coatings can reduce life cycle costs by 30-45% over a 30 year period (Redford, et. al., 2012). As such, this is definitely an opportunity for Swiss exporters in this field.

The average building life cycle in Canada is 40-50 years and thus retrofitting/renovation is an opportunity for Swiss companies in this field (Dustin, et. al, 2014). Exporters must note that building owners may need incentives for adoption. This is due to a market issue in Canada: the building owner has to buy the EE equipment, while the one who rents the building is the one who saves on energy bills.

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4.5. MARKET OPPORTUNITIES Commercial property owners in both Switzerland and Canada face the decision between refurbishing or demolishing (and reconstructing) existing buildings in order to improve energy efficiency. Many avenues exist for obtaining funding for energyefficient retrofits and projects. In general, companies use their internal capital budget to finance projects. In Ontario/Quebec, there is governmental and private assistance available for companies who cannot finance their projects as a capital expense.

Escpecially for institutional clients (schools, municipalities, churches, etc.) that do not have the capital or budget to invest into EE themselves, energy efficient retrofits that come with financing solutions (Energy Savings Performance Contracts ESPC’s) are increasingly popular.

An ESPC is a partnership between a Federal agency and an energy service company (ESCO). The ESCO conducts a comprehensive energy audit for the Federal facility and identifies improvements to save energy. In consultation with the Federal agency, the ESCO designs and constructs a project that meets the agency's needs and arranges the necessary financing.

The ESCO guarantees that the improvements will generate energy cost savings sufficient to pay for the project over the term of the contract. After the contract ends, all additional cost savings accrue to the agency. The savings must be guaranteed and the Federal agencies may enter into a multiyear contract for a period not to exceed 25 years. An example offering this solution is Ecosystems, an independent firm of energy efficiency professionals operating in Canada and the U.S. Ecosystem guarantees all project energy savings, costs and third-party subsidies. In addition, the company is compensated based on the money it saves, not spend, on a project (http://www.ecosystem.ca/index.php/en/about) EE-B conclusion 1: In Canada, like elsewhere, the trend towards renovation and retrofitting is obvious.

Consequently, Swiss companies should look into the retrofit market in Canada – it is easier to break into than the new building market, which is saturated in some cities with numerous developers. On the other hand, the retrofit market is still segmented, and there is much room for improvement, as well as a need for high-quality technologies. Innovative financing solutions like ESCO can be an important competitive advantage when dealing with institutional clients.

Swiss technology has led to the development of decentralized HVAC systems. These systems use fixed windows and fully sealable exterior doors to create an airtight building. Decentralized HVAC systems have been tested in the IUCN building in Geneva, where the airtight building recycles air within the building to eliminate pressure losses from traditional ducting systems. Mathias Achermann, one of the first architects to implement this system at the IUCN building, describes how the system is able to “breathe in unison with its users” (Holcim, 2012). Overall, the decentralized air system allows the structure of the building to be fully used to eliminate the pressure losses from traditional centralized ducting systems (Meggers, et al., 2012). Professor Dr. Hansjurg Leibundgut, who conceived of this idea, believes this system is “moving in a new direction in building design - away from creating prototypes and towards creating high-efficiency systems ready for industrialization” (Holcim, 2012). Such sytems are well advanced of what you find in Canada. The Passif Haus movement with several associations popping up in this field in Canada shows that there is an interest in how other countries approach the topic.

EE-B conclusion 2: Consulting services for high-efficiency systems in buildings could be offered in Canada. The Swiss backgraound, experience and proven track record in this field will be a convincing element.

Swiss firms that help increase building efficiency through the adoption of efficient windows and HVAC will also have many options to offer their products and services in Canada, due to the climate, need for specific and high-quality products, and the current market environment. Furthermore, the current regulation is likely going to change, and there is not much local availability of high-quality heat pumps / heat exchangers / wall panels on the Canadian market.

EE-B conclusion 3: The markets for heat pumps and heat exchangers as well as for wall panels generally present interesting opportunities for Swiss exporters.

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These areas, as well as energy-efficiency windows and glazing as well as energy-efficient building design know-how are lucrative market areas in which Swiss exporters can excel in the Canadian energy efficiency sector.

EE-B conclusion 4: So called ‘low-hanging fruits’ represent energy-efficient projects with high returns and short payback periods. They are likely to succeed in Canada.

Several interlocutors mention smart buildings and internet of things as major trends, with a lot of potential for new market opportunities in Canada. What does it mean? Most facility managers have access to building systems that collect data about operating conditions, but far fewer have the tools to parse that information for insights into future conditions or inefficiencies.

That's about to change. Intelligent, machine-to-machine (M2M) applications that use sensors to collect information about operating conditions combined with cloud-hosted analytics software that makes sense of disparate data points will help facility managers become far more proactive about managing buildings at peak efficiency, said experts participating in the GreenBiz webcast, "Sensors, Buildings and the Coming Internet of Things."

Companies that provide information on energy use through automation systems and additional financial incentives to encourage behavioural changes promote greater awareness of energy consumption and efficiency. For instance, creating a more consistent and even energy distribution throughout the day (that moves energy consumption to off-peak times and pricing) can reduce energy expenses. Furthermore, sub-metering increases individual accountability and has been used in residential homes to decrease energy consumption. However, these types of systems rely on correct programming and are ineffective if operated incorrectly.

EE-B conclusion 5: Companies experienced to working with property owners, developers, construction companies and architects in order to develop a Smart Building practice will find more and more market opportunities. They are focusing on utilizing technology to provide not only greater control of the building systems, but do so in a manner without incremental cost at the construction phase. The correct installation/operation of automation systems requires that building owners/managers check to guarantee continual benefits from the system every few years. Swiss exporters in this field of smart building technology can benefit from this trend.

In addition to Smart Building functionalities, the following services should be considered by companies capable of adding value to investments into energy efficiency in buildings: •

•

•

• •

Safety and security: Increasing security threats are main concerns today, especially in North America. Awareness of the vulnerability of buildings and their occupants has increased and will further lead to a more comprehensive approach towards protection of people, assets, and so on.

Monitoring: Monitoring of water and air quality is increasingly seen as a security issue as well. Accessibility to mission-critical parts of a building, such as water and air treatment, as well as electricity distribution, is made increasingly difficult by design. All relevant design features should be planned with security in mind.

Real-time Localization: With regard to security and safety, real-time location positioning and access management will be key technologies to make security more efficient, and at the same time, less intrusive. Real-time location and access management not only protect against unauthorized access, but also provide value-added information to the business processes taking place in a building, as well as for the participants in an emergency procedure.

Design factors which correspond with new trends in society: “Work and live” in the same building, flexible work spaces, etc. are just some of the key words.

Health factors: An Environmental Protection Agency (EPA) report states that indoor air pollutant levels are about 2-5 times higher than those of outdoor air. Some of these pollutants, such as radon gas, can be attributed to natural conditions, while others such as second-hand smoke are a direct result of human behaviour. However, many of these pollutants are a by-product of the materials used to construct or furnish the building. Volatile organic compounds, or VOCs, can cause serious health consequences in large enough concentrations. These chemicals may occur naturally, but they can also be manmade, and are found most commonly indoors. Products with high concentrations of these chemicals include paints, solvents, carpets, cleaning products, and some household appliances (Environmental Protection Agency, 2014).

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•

Image: Investing in cleantech benefits companies through the triple-bottom line approach of people, planet, and profit. In other words, companies which utilize cleantech seem to experience long-term benefits, despite potentially longer payback periods. The adoption of energy efficiency technologies ultimately saves organizations money by reducing consumption of energy (Tembo, 2009). The investment in cleantech will often pay off in terms of energy savings, as well as more qualitative benefits such as attracting employees, investors, and customers, also based on the creation of a positive corporate image.

EE-B conclusion 6: Additional benefits of investments in EE in buildings have to be communicated clearly. They include better-equipped employees, a more environmentally responsible corporate culture, and eventually a gain in profit.

Finally, it is worth looking at the SDTC (Sustainable Development Technology Canada) programs, as they provide interesting information about new priorities as well as important funding and incentives for construction in Canada. Funded by the government of Canada, SDTC is the primary catalyst in building the country’s sustainable development technology infrastructure (www.sdtc.ca).

4.6. KEY COMPETITORS In order to look at successful competitors you have to define precisely the kind of market that you are interested in. Generally speaking there are some interesting Canadian companies which are usually supported by various Canadian governmental programs. This is giving them a home advantage, while generally being faced by lack of international exposure or international experience limited to North America.

Some of the most interesting and succesful companies based in Ontario and Quebec are included here: •

•

VERT.COM Inc. specializes in the design and creation of energy efficient data centres housed in silos. Its foremost solutions are the Prefab Siloctet and the Rehab Siloctet, two cleantech innovations in the design of silo data centres (www.vert.com).

INOVAE has created SmartmanagerTM which helps provide building managers and experts with a complete and precise overview of their properties by gathering all the data available in a single, easy-to-use "scorecard." Current SmartAppsTM can be used to monitor and manage energy and environmental performance in real-time, provide data for environmental certifications, adjust control systems, analyze all data and determine where to invest to obtain better performance (www.inovae.com).

For some other examples, please refer to SDTC’s portfolio of 250+ Canadian companies in this subfield: http:// sdtc.ca/uploads/Portfolio_English.html.

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5. Energy Efficiency in Industrial Buildings/Processes Canada’s industrial sector accounts for 38% of its energy use and 34% of related GHG emissions (Office of Energy Efficiency, 2013). Policies to reduce these emissions mainly consist of voluntary mechanisms, but the government has plans to introduce new regulatory measures, such as an industrial emissions standards system. The Canadian government has pledged to reduce its GHG emissions by 17% (from a 2005 baseline) by 2020 (Office of Energy Efficiency, 2013). Natural Resources Canada (NRCan) is a key player in this effort.

5.1. MARKET SIZE 63% of the energy is used in the processing industry, 33% in mining and oil/gas exploitation and 3,6% in the construction industry. Within the processing industry, chemical companies, producers of paper and cellulose, aluminum and steel use the highest amounts of energy. A comparison between different provinces show that industries in Ontario and more and more Alberta should particularly be looked at.

5.2. MARKET ENVIRONMENT NRCan works with industrial organizations to promote energy efficiency and reduce GHG emissions. NRCan provides a wide range of program measures through CIPEC, including newsletters, webinars, workshops, and networking.

NRCan also provides information on industrial equipment, standards and regulations, and offers financial assistance to industrial facilities interested in improving their energy efficiency. In addition to providing funding in support of science and technology for the improvement and development of industrial processes and technologies, NRCan conducts various innovative research projects, in particular related to the effective use of energy and reduction of energy consumption. Their unique testing facilities and close ties to industry, especially to steel, metallurgical coal, pulp and paper, and petroleum producers allow NRCan to conduct innovative research programs that provide positive environmental impacts and reduce production costs. NRCan’s clean energy research groups and energy efficiency measures assist Canadian industry to maintain a competitive advantage on the international market (Natural Resources Canada, 2013).

5.3. RELEVANT REGULATIONS 5.3.1. ecoENERGY Efficiency for Industry At the federal government level in Canada, the degree to which financial assistance for energy efficiency is provided to industry varies according to policy priorities and market circumstances. NRCan provides funding for the research, development and demonstration of new and emerging clean energy science and technology, and offers several platforms for industry to receive technical and financial support.

The ecoENERGY Efficiency for Industry program assists in the adoption of an energy management standard, and accelerates energy-saving investments, and the exchange of best-practices information within Canada’s industrial sector. This program: • Supports the Canadian Industry Program for Energy Conservation (CIPEC), which offers networking opportunities for industry to share information, identify common needs and best practices, and improve energy efficiency in more than 25 industrial sectors.

• Supports early implementation of the new ISO 50001 Energy Management Systems standard.

• Provides Dollars to $ense energy management training workshops to help industrial companies reduce energy use by improving energy management practices.

• Provides biweekly newsletters and reports, guides, manuals and other publications to increase awareness of energy efficiency in industrial buildings/processes.

5.3.2. CIPEC The recommendation by NRCan was that the federal government undertake an aggressive education campaign to promote the Canadian Industry Program for Energy Conservation (CIPEC). This program is a key component of Canada’s GHG emissions reduction strategy, which is essential under the United Nations Framework Convention on Climate Change. The Canadian CANADA - ENERGY EFFICIENCY STUDY

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Chamber of Commerce is a member of CIPEC and continues to promote this program and encourage its members to participate in the appropriate task force for their industry sector.

In 2008, CIPEC industries created approximately 27% of the country’s GDP and provided jobs for 3.5 million Canadians.

CIPEC represents more than 5,000 companies, which reduced their combined energy intensity by 8.8% from 19902008, which is an average of 0.5% per year. The mining, manufacturing, and construction sectors improved their energy intensity by an average of 1.5% per year. Between 1990 and 2008, these sectors improved energy intensity by 26.7%. Improved energy efficiency enabled Canadian industry to avoid approximately $3.8 billion in purchased energy in 2008 – enough energy to heat almost 4.8 million Canadian households for one year. Had energy intensity remained constant, GHG emissions would have been 37.1 megatons (Mt) higher (CIPEC, 2008). As of March 31, 2010, close to 2,100 industrial facilities have signed on as CIPEC Leaders.

5.3.3. ISO 50001 NRCan developed the ecoENERGY Efficiency for Industry program to provide industrial companies with financial support for International Organization for Standardization (ISO) 50001 implementation pilots and other energy-related assessments. The recent publication of the Canadian version of this new standard by the Canadian Standards Association (CSA) helps industry members to establish the systems and processes necessary to take a systematic approach to improving energy efficiency, use, consumption, and intensity.

ISO 50001 is a regulation that is set to establish the framework for industrial plants; commercial, institutional, and governmental facilities; and entire organizations to manage energy in Canada. Targeting broad applicability across national economic sectors, it is estimated that the standard could influence up to 60% of the world’s energy use.

Established in 2011, Canada already counts some of its biggest manufacturer as certified ISO 50001. Among those are: Broan-NuTone, Chrysler Canada Inc. (Brampton), IBM Canada Limitée (Bromont), Lincoln Electric Company of Canada, New Gold Inc. (New Afton Mine), Soprema Inc., St. Marys Cement (Bowmanville), VeriForm Inc., 3M Canada (London). This list of companies is set to increase with the CIPEC investing resource and energy into making certification of Canadian industry one of their main target (refer to NAGUS, 2014 for full list).

5.4. MAIN CHALLENGES Much of the recent financing for energy efficient projects in the Canadian is derived from governmental incentives, such as tax rebates and grants. Federal, provincial, and local governments provide grants, tax-credits, and loans to industry building owners and cleantech companies to sponsor energy efficient construction and technology. There are organizations such as Sustainable Development Technology Canada (SDTC) and Climate Change and Emissions Management Corporation (CCEMC), which provide funding for projects that focus on reducing GHG emissions.

While tax rebates are a good incentive for building owners, loans are provided to help owners finance their renovations.

Unfortunately, government loans do not usually cover 100% of the project, they are typically quite small, loan payback periods are short, and loans may not be renewed. For projects in which governmental support is not feasible, private investments and outside opportunities for financing energy efficiency are needed.

5.5. MARKET OPPORTUNITIES It can be seen that there is little in terms of current compulsory regulations for industrial energy efficiency in Canada.

Nevertheless, environmentally-responsible companies have, and increasingly will continue to, move(d) towards voluntary regulations, such as ISO 50001.

EE-I conclusion 1: Opportunities for Swiss companies arise when certified companies, such as the aforementioned, require high-quality services from suppliers, with stringent ISO 50001 requirements.

The numbers of ISO 50001 certified companies grow – and with this, opportunities arise.

EE-I conclusion 2: ISO 50001 also presents another opportunity for Swiss companies as well, including those that are experts in the certification process, especially considering that the International Organization for Standardization is headquartered in Geneva. .

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Regarding energy-intensive industrial processes, there are energy-efficient processes for a variety of industries including chemicals, steel, mining and other metals, pulp and paper, cement, and agriculture (Redford, et. al., 2012). This is a large market with moderate growth, with potential for both continuous improvement and disruptive innovation. Industrial processes drive 32% of the global energy consumption today, and moderate (1.1% per annum) growth is expected, with most growth in China (Redford, et. al., 2012).

Current technologies are well-established, with potential for process disruptions. For instance, multiple incremental changes using established technologies can lead to 20-30% energy savings (e.g. system integration across multiple products, minimize waste streams, manage load, power, torque, and speed). Key innovations are in enhanced instrumentation, monitoring, and data interpreting systems to enable real-time control (Redford, et. al., 2012). Though Canada has many energy-intensive industries and small companies with innovative technologies, there are major competitors in the US and EU, including in Switzerland.

EE-I conclusion 3: Switzerland is viewed as a reliable provider of technology and equipment leaders in energy efficiency equipment and processes. As such, this is yet another opportunity for Swiss exporters.

Drawing on the proven expertise of the Swiss cleantech sector, one focus in the energy efficiency field should be: system engineering and integrated planning services.

Looking at Alberta Alberta is Canada’s energy province with 11% of the world’s proven crude oil reserves. This makes Alberta the third largest reserve holder behind Saudi Arabia and Venezuela. Most of the untapped reserves lie in the famous oil sands. In addition, Alberta also accounts for 80% of the Canadian gas production, which makes the country the world’s third largest supplier of natural gas.

Alberta’s economy is booming: Over the past decade, Alberta led the Canadian provinces in GDP, employment, exports and investment growth. Today, Alberta is one of the most attractive places to invest in Canada and North America. This year CHF 95 billion will flow into the economy, which represents more than 25% of the total investments in the country. About half of this amount – CHF 48 billion - will be invested in the oil and gas industry, with CHF 28 billion being directed towards projects in the oil sands.

Alberta is known around the globe for its oil sand mines, but only 20% of the existing bitumen reserves can be produced from these open pit mines. The other 80% are buried more than 60 meters deep under a layer of rock.

These reserves can only be recovered by so-called in-situ methods: Steam is pressed through boreholes into the subsurface.

The heat liquefies the bitumen and the resulting bitumen/water mixture has to be pumped to the surface. The oil is separated from the water and processed further in surface facilities. The in-situ segment of the industry is rapidly growing and in 2015 the production will overtake the volumes from the open pit mines.

Complex processes and technologies are required to produce oil through the in-situ process and the costs are very high: An ever increasing amount of wells has to be drilled and facilities for the steam production and the separation of the oil from the water have to be built. The demand for equipment and energy is steadily increasing, and with the dramatic growth of the industry also the maintenance costs reach higher and higher levels.

Every year during the month of June, the Global Petroleum Show puts Calgary and its most important industry under the spotlight. It is attended by over 2’000 exhibiting companies and 65,000 visitors. The 2014 edition made it even more apparent that two major trends have a tremendous influence on the growing oil industry, especially on the in-situ production: •

•

Demand for technology and equipment has dramatically increased in the in-situ industry. Especially pumps, compressors, gauges, valves, heat exchangers and pressure vessels are required. Instruments for process control and for the measurement of the properties of oil, water and gas are needed.

The expenditures to produce bitumen by in-situ techniques are very high and the profit margins relatively low.

Producers are increasingly focused on reducing inefficiencies along the entire value chain. This

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goes often in parallel with higher eco-efficiency, as methods to reduce energy and water use become key. It creates opportunities for suppliers of energy efficient technology from around the globe (Fig.2). Soil pollution by hydrocarbons around production and processing facilities can also be an issue.

EE-I conclusion 4: There is a growing demand for technology in the in-situ industry in Alberta. Swiss technologies enjoy an excellent reputation and if they contribute to the reduction of inefficiencies in the entire value chain of oil and gas exploitation, they are likely to be in high demand.

5.6. KEY COMPETITORS In order to look at successful competitors you have to define precisely the kind of market that you are interested in. Generally speaking there are some interesting Canadian companies which are usually supported by various Canadian governmental programs. This is giving them a home advantage, while generally being faced by lack of international exposure or international experience limited to North America.

Some of the most interesting and succesful Canadian companies based in Ontario and Quebec are included here: • CVT CORP manufactures and markets continuously variable transmissions (CVT). Variable speed generators can reduce fuel consumption by 25%, provide a return on investment in less than a year and reduce GHG emissions by approximately 100 metric tonnes per vehicle. CVT CORP is also active in the sector of agricultural and heavy machinery. At the present time, several major equipment manufacturers in this market are working with CVT CORP to integrate CVTs in their machines (www.cvtcorp.com).

• SOTECK's mission is to design and implement innovative, reliable and high-performing energy systems to redefine the energy efficiency of industries. The multidisciplinary SOTECK team features the combined expertise and knowhow of some forty professionals with a passion for developing turnkey projects that come with performance guarantees (www.soteck.com).

• Volts Energies is an innovative company that focusses on the design and manufacture of energy efficient systems.

Specialized in the development of new hybrid energy systems, it combines solar photovoltaic, solar thermal, wind, generator, biomass, micro-hydro electricity and cogeneration (www.volts.ca).

• For some other examples, please refer to SDTC’s portfolio of 250+ Canadian companies in this subfield: http:// sdtc.ca/uploads/Portfolio_English.html.

Some larger Canadian companies that are leaders in improving the industrial energy efficiency in the subfield of aluminum include: Alcan, Alcoa, Alumicor Limited, Aluminerie Alouette Inc., Novelis Inc., Ramsden Industries Limited, Recyclage d'aluminium Québec Inc., and Universal Stainless & Alloys Inc. The complete list can be found at: http://www.nrcan.gc.ca/energy/efficiency/industry/opportunities/5233.

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6. Market Entry Strategies In general, Canada is very welcoming to new investments from outside the country. The numerous agreements and incentives are instances of this hospitable manner. Being one of the world’s most open economies for foreign investment, Canada welcomes and actively encourages investment by non‐Canadians, and places few requirements or restrictions on foreign investors. Starting a company or subsidiary in order to serve Canadian clients is rather easy and can be an interesting option for companies looking at developing the energy efficiency market.

However, in order to enter the Canadian market, one has to be prepared for several aspects that are different from European and Swiss standards. For instance, there are differences in the legal standards, acts, permits and regulations, trade unions, measurement system, etc.

The biggest obstacles for companies in the development of clean technologies are market and economic barriers (Huber, 2010). Different sectors have discrete market issues, but one common challenge that affects them is the lack of incentives for developers and the general public to adopt and implement technology. The relatively low cost of energy in Canada makes alternative energy sources and more efficient technologies relatively less competitive. While companies do face municipal and regulatory barriers, the general consensus is that if one wants to adopt technology, one can in most circumstances do so. However, the relatively low cost of energy in Canada provides little incentive for companies to expend the additional effort necessary to overcome the barriers that do exist. The greatest challenge therefore is the lack of incentive and as intial step, it is recommended that before exporting to Canada, a specific business case taking is being developed under such particular circumstances.

Preparation of a market entry for a particular EE product or service could include: • • • • •

•

• •

A clear picture of the size of the market for a particular good or service (market analysis / market flash) Analysis of the certification requirements - a product might need to be adapted to the local market and the relevant provisions are likely to be found on the provincial level An evaluation of the distribution and marketing patterns. For a company without an existing presence in the north American market, it is recommended to consisder partnerships (distribution partner search) If the product needs to be adapted to the market, it might be worth looking into partnerships in R&D. There are several tax incentives and tax credits in Canada, which can be of interest (R&D partner search) Development of a marketing plan – it is particularly important that this plan takes into account local (provincial) circumstances. It is often not recommended to simply use the same marketing strategy as use elsewhere in North America or Europe.

Participation in a trade fare. This can be a general fare for clean clean technologies (like Americana Clean Technologies Show http://www.americana.org/fr , Montreal, March 17-19, 2015) or a more specialized, industry specific one (like Construct Canada http://www.constructcanada.com/, Toronto, December 3-5, 2014).

For general business opportunities in the Canadian public sector, it is recommended to visit the following web page: Doing business with the Canadian Public Sector: www.merx.com Dealing with specific legal requirements (see following paragragraph 5.1 for more details)

When performing energy-efficient retrofits, many building owners use a three-step model toward sustainability. The three-step process is used globally: •

•

•

first, by increasing building efficiency through optimization of current systems in the building. Retro-commissioning is a process which involves evaluating and correcting use of equipment in a building. Also, automation systems, such as controls systems and smart building technology, is used to increase building efficiency by reducing the impact of human behaviour on a building’s energy consumption.

The second step to a sustainable building is decreasing energy demand through renovation of a building’s envelope and the systems within the building. Envelope renovations include reducing heat transfer through window replacements, improving insulation, and increasing efficiency of cooling.

The third step is integrating a building within the energy grid. Research is currently being invested in smart grid technology which can evenly distribute energy within a community to reduce energy and financial losses (Dustin, et. al, 2014).

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Switzerland Global Enterprise together with the Swiss Business Hub Canada is able to draw on the experience of experts for such these services. Our general experience is that there are few quick wins in the field of energy efficiency. Developing an understanding of the specifics in the market as well as a network of peers, potential partners, opinion leaders and decision makers is key.

6.1. RELEVANT REGULATIONS In Canada, both federal and provincial governments have jurisdiction over environmental matters, with some overlap. However, generally, matters of national and international importance are dealt with by the federal government, and the provincial governments have jurisdiction over matters of a local nature (van Dijk, 2010). Some areas of particular relevance in EE include: • Contaminated land: Liability for contaminated sites is generally arbitrary. For example, the one who contaminated a land is not always the one who has to clean it up, as the environmental authorities can order anyone who has, or had, control over a site to clean it.

• Waste management: Landfills in Canada are increasingly becoming full, and Canadians focus on other ways to get rid of their garbage, such as waste diversion.

• Environmental Litigation: Canada has a “loser‐pays” system, in which the losing party is responsible for much of the legal costs of the winning party.

• Environmental Offences: Environmental offences are “strict liability offences” in Canada, and fines can get as high as several million dollars a day for an organization.

• Director and Officer Liability: Directors and officers have the responsibility for their corporation to live up to environmental laws. The director of officer can personally be charged for mistakes if breaching some environmental laws as a company.

Some further general information can be useful in the context of the planning of a market entry: • In terms of product liability, the risk of damage is less severe than in the US. Provincial courts deal with this subject. For many businesses establishing and running operations, the situation concerning the product liability law application needs to be professionally considered. Solutions for foreign companies can be to enter a partnership with an existing local company, which has already organized a suitable solution. For instance, a separate legal entity which in case of product liability law suits carries the burden of the respective liability, by this way protecting the operational company. Management staff also needs additional liability insurance for personal protection. The handling of Intellectual Property laws is also comparable to the US. Trademark, patterns, and so on, can be registered and thus protected. There is a federal regime and no particular restrictions exist for companies to do business in Canada (van Dijk, 2010).

• The provincial ministries of Small Business, Technology and Economic Development can be helpful for Swiss companies entering the Canadian market. Their core business is the economic part and the main goals include helping international companies to find partners in the province concerned and helping local companies with export to other countries. The current situation in Canada is dominated by small or midsized organizations.

There are more European companies that bring technology to Canada than the other way around (Evans, 2009).

• Trade unions are very strong in Canada, and many work requirements are imposed by the unions. For each work trade, a separate workman needs to be engaged. For example, only a draftsman is allowed to draw, correct, or change a technical drawing. Unions can be quick in declaring strikes, which Swiss companies may have difficulties to understand. The Canadian Standard Association (CSA) is very strong and strict, and any technical product must get CSA approval. Depending on the workload and the competence of the inspecting people involved in a approval project, this process can be very time-consuming and can therefore become very expensive, so Swiss exporters should take note of this (van Dijk, 2010).

• In general, Canada uses the metric system. This includes weights, measurements, distances, speed limits, and temperatures. This is due to the historical ties with the United Kingdom, the close proximity to the US, and the traditional use of the imperial system in Canada. As most fasteners, machine parts, pumps, piping, and all building materials are sold in imperial or US customary units, engineers in Canada often use imperial units. As in the United States, Canadian engineers are educated in both systems and are keenly aware of the differences between the imperial, U.S. customary and metric systems (van Dijk, 2010). Frequently, both metric and imperial systems are used in trades associated with machine work, such as machinists, automotive and heavy duty technicians. Building trades such as plumbing and carpentry only use imperial units. Rough timber, drywall, plywood, fasteners, pipes and tubing are all sold in imperial units. Nails in hardware stores are sold by the inch and fraction thereof but sold in metric weight packages (van Dijk, 2010). Electricians use metric terms such as volts and amperes, but Canada follows the US American Wire Gauge standard, instead of the international mm2, although the Canadian Electrical Code includes both in its regulations. Industrial and farm equipment that is manufactured in Canada use in general structured steel.

On the contrary, fluids are always in metric measures. As such, non‐metric units and standards are still used in some sectors of the Canadian economy.

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6.2. FREE-TRADE AGREEMENT The European Free Trade (EFTA) Association is an organization that encourages free trade and economic integration to the benefit of its four Member States: Iceland, Liechtenstein, Norway, and Switzerland. Since July 1, 2009, the free trade agreement between Switzerland (and the three other Member States) and Canada is in place. This agreement means benefits for exporters in the aforementioned countries, in the field of supply and value chains. It increases the legal security and the predictability of the economic relations between the partners. In addition, discrimination due to existing or potential future preferential arrangements can be overcome. Having a preferential partnership with a partner before a major competitor has such a preferential trade relation is a competitive advantage. For example, the EFTA States have now a competitive advantage on the Canadian market compared to important competitors, such as the EU or Japan, due to the fact that neither of them has a free trade agreement with Canada yet. On the other hand, Canada profits from the fact that, for instance, the US has no preferential trade relationship with the EFTA States. Regarding the trade of industrial products, Canadian partners of Swiss companies have the same benefits when doing business with customers and partners in other EFTA States (van Dijk, 2010).

6.3. FOLLOW WHAT OPINION LEADERS HAVE TO SAY Interviewees who were consulted agreed that cities everywhere are grappling with the challenges of population growth, fluctuating energy prices, shortages in funds for infrastructure renewal, and so on. It was a consensus among interviewees that there is an urgent need for flexible, yet long-term urban management policies and programs that span from energy and water supply, to transportation, waste management, to infrastructure. Some examples include: • Sustainable Development Technology Canada (SDTC)’s chair, Jim Balsillie, stated continued support for clean technologies, calling it “good business”. It is through innovation, that delivers both economic and environmental benefits, that we will truly put ourselves on a path towards sustainability. He argued that Canada must invest in clean technologies that deliver financial and environmental returns, and ensure these are available to as wide a user base as is possible.

• During an event in Ottawa, Greg Rickford, Canada’s Minister of Natural Resources and Minister for the Federal Development Initiative for Northern Ontario, echoed the above sentiments by stating that: “Our government has a commitment to environmental stewardship and creating high quality jobs in Ontario. By supporting advanced research and technology, our government is investing in Canadian prosperity and a cleaner environment.”

• In the same vein, Steve Hubbard, Head of Sales and Marketing at Lightenco, a Canadian LED company, searches for partnerships that are green and sustainable.

• Tim Sherstyuk, Co-Founder, Gbatteries Energy, argued that both public and private financing for cleantech companies in Canada have improved in the recent past. This is one of the reasons that the cleantech industry in Canada has made a rebound since the downturn thar occurred between 2008-2011 (Bak, et. al, 2014).

• Neil Cameron, Investment Director at Emerald Ventures, a VC firm that has its two offices in Canada and Switzerland, argued that cleantech is having its real rebound now. Similarly, the CEO of Chrysalix (another Canadian cleantech VC firm) Wal van Lierop believes that we will have a global graduation from carbon over the next 20 years, even though he does agree that we are all hooked on hydrocarbons now.

• On the other hand, Oana Labes of Royal Bank of Canada (RBC) stated that the cleantech team (as part of the Knowledge-Based Industries at RBC) is looking for more Canadian success stories.

• Steve Aplin, of HDP Group Inc., a management consultancy, argues that detailed information is fairly easy to dig up, but he almost never hears self-professed environmentally conscious companies even mention it. That is because, unfortunately, many companies appear more interested in talking about carbon than getting into the deeper meaning. There is a huge disconnect in that area, and it is disquieting for him to realize how few are aware of the disconnect. He finds it unfortunate that it has been quite difficult to get practical and real-time data, prior to companies such as Nest and other competitors, especially after literally decades of talk among environmentallyconscious people about reducing carbon emissions. He personally dreams of a future where this environmental data is known and acted upon, and this is another area in which Swiss exporters can help.

The differing tactics and strategies of Canada and Switzerland present opportunities for growth and collaboration within the EE field in these two countries. The goal of this report was to evaluate opportunities for the promotion of growth and collaboration in the energy efficiency industry in Canada and Switzerland.

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