Water, our most precious resource, is more than just an environmental issue. It is at the heart of our national sovereignty, economic security, and even a defense imperative.
While Canada holds 20% of the world's freshwater reserves, this treasure is threatened by climate change, pollution, and aging infrastructure. To its credit, the federal government appears attuned to the shifting tides of a water-scarce world. During the last election campaign, Prime Minister Carney announced a National Water Security Strategy and a $100 million water security technology fund, welcome signals that Ottawa recognizes the strategic importance of water.
AquaAction played a lead role to secure these commitments, and we continue to lead the charge among a constellation of water advocates to deliver on these promises.
Our submission for the upcoming federal Budget laid out a plan for how to deliver this Water Security Technology fund, and to do it in a way that aligns with federal priorities.
Increasingly, the world recognizes water as a strategic asset, a critical resource for defense and a vital economic engine. While the U.S. Office of the Director of National Intelligence has classified global water scarcity as a national security threat, Canada has been slow to follow suit. NATO military planners have also identified water-related infrastructure as a strategic vulnerability.
Wars are being fought worldwide for control over water, and unprecedented tensions are arising at borders. In this context, water technologies are not just environmental tools; they are dual-use technologies, crucial for stimulating our economic growth and equipping our defense and security sectors.
That could include technologies such as rugged desalination units, portable filtration systems and atmospheric water extraction that cut down vulnerable supply lines.
Canada risks losing its competitive edge. In the United States, initiatives such as the Inflation Reduction Act, the Infrastructure Investment and Jobs Act, and the One Big Beautiful Bill have mobilized tens of billions of dollars in incentives, tax credits, and subsidies for water technologies.
These measures are attracting significant private capital and boosting the commercialization of American companies. Canada has no such equivalent incentives. Canada has an opportunity jumpstart our water tech ecosystem with targeted fiscal support that boost intellectual property (IP), our talent, and our strategic advantage.
To avoid being left behind, Canada must act. Thankfully, Canada’s water tech sector is brimming with untapped potential, and both the private and philanthropic sector are ready to invest. AquaAction, proposes a three-pronged plan to stimulate an ecosystem of water tech innovators who will strengthen our water security.
AquaAction urges the Government of Canada to honour Prime Minister Carney's platform commitment to establish a $100M Strategic Water Security Technology Fund (WaterTech Fund).
The main objective is to:
- This fund should be managed by the Canada Water Agency, in collaboration with ECCC, National Research Council, Department of National Defence (DND), and Regional Development Agencies, and would focus on pilot projects in at-risk watersheds.
To strengthen Canada's competitiveness, it is imperative that clean economy tax credits explicitly and unambiguously apply to investments in water technologies. Eligibility for these credits should be conditional on Canadian entrepreneurs domiciling their intellectual property in Canada. By recognizing that water technology entrepreneurs are strategic assets for national security, Canada can align its fiscal policies with a new understanding of water sovereignty. Water innovation is inseparable from the transition to a low-carbon industrial economy, and this measure is crucial for Canada's economic future.
Municipalities are the front line of Canada's water security, but they are often under-resourced and overstretched. AquaAction proposes to allocate $20M over 4 years ($5M/year), with matching funding from the philanthropic and private sectors, to expand the proven AquaEntrepreneur Quebec program across the country. This model accelerates water technologies by de-risking municipal pilot projects and facilitating companies' access to real-world testing sites. Expanding this program would allow for the implementation of pilot projects throughout Canada, accelerating the testing and validation phase of technologies and, consequently, strengthening the country's collective water security.
Investing in water technologies is not just a matter of protection; it is also an unprecedented economic opportunity. The global water technology market is expected to reach $600 billion by 2030, with broader infrastructure investments potentially pushing it up to $1 trillion. With targeted support, Canadian companies could capture 2-3% of this market share, which would equate to $20 to $30 billion in annual exports by 2030.
Furthermore, these investments would create skilled and sustainable jobs. It is estimated that every million dollars invested in clean tech commercialization supports 10 to 15 direct jobs. By 2030, the sector could support over 20,000 skilled jobs nationwide, in fields such as AI, engineering, and manufacturing.
The impact of these technologies also extends to municipal economies and our collective resilience. Canadian municipalities lose between 10% and 30% of their treated drinking water due to leaks. Implementing AI-based monitoring solutions could reduce these losses by 50%, saving hundreds of millions of dollars annually. Moreover, by extending the lifespan of water and sanitation infrastructure by 5 to 10 years through predictive maintenance, municipalities could save $2 to $3 billion over the next decade.
By treating water technologies as dual-use assets, Canada can simultaneously protect its freshwater sovereignty, fulfill its obligations to its allies, and seize a trillion-dollar market opportunity. This is how we build a more resilient and prosperous future for all Canadians.
Mark Carney’s Liberals to protect Canada’s Nature, Biodiversity, and Water | Liberal Party of Canada