Invest in Canada is an arms-length Government of Canada organization that collaborates directly with global businesses to encourage, incentivize, and promote foreign direct investment across multiple sectors, including the aviation and aerospace industries.
You have served in a range of roles across both the private and public sectors in law and politics. What was it that drew you to join Invest in Canada in 2022?
I couldn’t think of a more amazing opportunity for someone who has lived across Canada to advocate for a strong economy nationwide. Bringing my perspective on regional differences and areas of expertise across the country, I could tell Canada’s story in a meaningful and granular way.
My past life as a litigator, where I became an expert for each case I was working on, was good training for this role because one day I’m talking about life sciences or hydrogen or ocean tech, and the next I'm talking about aviation. We as a team have to learn all the industries, know the value proposition, and be able to talk to global companies about why they should invest in Canada.
Aerospace is a key sector. Can you tell us more about Canada’s historic contribution to the industry as well as its key hubs?
Canada has a strong tradition of military aviation dating back to World Wars I and II, leading to growth and development in the aerospace sector. Companies like Bombardier, founded in Quebec in the 1940s, produce business jets, regional airliners, and the renowned Q-series turboprop aircraft.
Today, Canada’s aerospace industry is among the largest globally, ranking first in civil flight simulator production, turboprop engines, and helicopter engines, third in civil engine production, and fourth in civil aircraft production. The industry employs over 200,000 people and contributes $27 billion to Canada’s economy. Montreal is the third largest aerospace hub in the world, following Seattle and Toulouse.
Are you seeing new emerging hubs outside of Montreal also making their name in the aviation industry?
Absolutely. There are strong aviation clusters and think thank communities that propel the country’s industry forward across the country. Ontario is known as a manufacturing hub, where many global companies have established themselves. I grew up in Alberta where aerospace manufacturing is one of the most advanced sectors, with niche manufacturing and special technologies across the country. Most recently, Boeing invested towards the Saskatchewan Aviation Learning Centre (SALC) at the Saskatchewan Indian Institute of Technologies (SIIT) to train more key players in Canada’s aerospace system as they see the demand for commercial aeroplanes doubling by 2042.
Exciting developments are happening in British Columbia, which has an aerospace and technology cluster focused on advanced technology R&D and commercialization of new technologies. On the Atlantic side, Pratt & Whitney’s presence in Nova Scotia contributes to shaping the future of helicopter and regional aviation with dependable, new-generation engines.
Can you tell us how Canada's natural resources are being leveraged to help advance sustainability, particularly in aviation?
Canada takes sustainability seriously, which includes sustainable aviation fuel (SAF). Canada’s strong credibility in sustainable solutions stems from being a traditional energy producer now driving a green agenda. With significant R&D incentives and federal investments like $350 million for sustainable aviation technology and $500 million in clean fuel compliance payment revenues, Canada is positioned well for global companies seeking sustainable solutions. Our extensive free trade agreements further enhance our position as a solutions provider in the aerospace industry.
When it comes to foreign direct investment, where are you generating the most excitement and interest from?
We have had many great successes in recent years that Invest in Canada has been proud to support. Recent ones include supporting UK-based Ricardo in establishing an aerospace center in Montreal and a multi-year deal with Pratt & Whitney Canada for hybrid electric propulsion technologies. U.S.-based Pratt & Whitney has reinvested in Canada since 1928, with a broad footprint across the country. Marshall Aerospace expanded to New Brunswick, and in 2019, Mitsubishi Aircraft Corporation established a footprint in Montreal. L3 Harris Technologies invested in Ontario, and there are notable activities in British Columbia.
While we have significant historical partnerships with the U.S., UK, and Europe, there has been notable interest from the Asia Pacific region. Japanese trading houses, Korean companies, and other Asia Pacific firms are increasingly engaging with us. Their focus on sustainability aligns with Canada’s strengths, making it an appealing destination for companies from the Asia Pacific region looking to invest in sectors like automotive and aerospace. Ultimately, when global companies of this caliber come here and stay for the long term, it speaks to the high standards of Canada’s aerospace industry.
What kind of programs or incentives for foreign investors does Canada offer for companies to establish operations in Canada?
A key interest in Canada is its sustainable future, especially in the aviation industry. Sustainable aviation fuel (SAF) could contribute 65% of the emissions reductions needed by aviation to reach net zero by 2050. Financial commitments include $350 million for sustainable aviation technology and $775 million to support clean fuel projects. The Canada Infrastructure Bank’s $500 million investment in biofuel production also highlights our commitment.
Additionally, there are incentives that allow write offs for machinery and equipment for manufacturing and processing, as well as tax incentives to encourage businesses to conduct research and development in Canada.
What are the biggest barriers to foreign direct investment into Canada’s aviation industry at the moment?
Challenges in the aerospace industry mirror those in other sectors, like the drive towards net zero emissions by 2050, which requires significant innovation and capital. The green revolution is complex but necessary. The demand for commercial air travel remains high, making the development of a sustainable aviation ecosystem crucial. Sustainable aviation fuel is a key path to decarbonization. Canada is addressing these challenges head-on, with eight dedicated SAF projects expected to produce over 500 million liters annually by 2030.
For any major transformation, you need a partnership between governments and industry, and we are continuing to work hard to deliver that across a range of sectors, including aerospace Overall, the country – and Invest in Canada - is focused on supporting projects that accelerate the green industrial transformation of the aerospace industry.
You attended COP11 in 2005 as Minister of Environment for Ontario and more recently COP28 last year as Invest in Canada CEO. What was your biggest takeaway from the conference this time around?
The biggest difference from 2005 compared to now is the strong presence, participation, and commitment of industry leaders to sustainability. The government can regulate, but you need innovators to create opportunities. The industry’s commitment to finding sustainable solutions made me much more hopeful. At COP, the energy industry’s dedication to a sustainable future was evident, and that’s crucial. Invest in Canada plays a part in this, and seeing industry leaders actively engaging in sustainability efforts was a significant positive evolution.
This momentum is what drives us forward: We are committed to supporting business expansion plans into Canada that focus on energy transition. As such, we work with partners across the country to support global projects in the aviation industry, with hopes to drive innovative and sustainable solutions with lasting impact on Canadians.
