Canada Investment Summit Draws Global Investors and Nearly $500 Billion in New Commitments
Canada Investment Summit Draws Global Investors and Nearly $500 Billion in New Commitments
TORONTO — Canada’s first-ever Canada Investment Summit brought global investors, business leaders and government officials to Toronto this week as the federal government sought to attract new capital for major projects across the country.
Held September 14 and 15, the summit was hosted by Prime Minister Mark Carney in partnership with the Canada Pension Plan Investment Board and the Public Sector Pension Investment Board. The federal government said investors from nearly 30 countries, representing more than $100 trillion in assets, took part in the event.
The summit produced announcements representing nearly $500 billion in new investment commitments to Canadian businesses, infrastructure and strategic industries, according to the federal government. The commitments included investments from pension funds, banks and private investment firms.
Among the largest announcements was a new $50-billion Maple Fund, launched by CPP Investments and Brookfield Asset Management, to invest in critical infrastructure and strategic industries across Canada.
Several major Canadian financial institutions also announced plans to provide or mobilize hundreds of billions of dollars in financing over the coming years. The government said the commitments are expected to support projects involving energy, critical minerals, transportation, artificial intelligence, defence and digital infrastructure. Canada PM
The summit also featured the announcement of a major new tax measure known as the Productivity Mega Deduction. The federal government says the measure will allow businesses to immediately deduct the cost of a much wider range of capital investments, including equipment, software, mining property, pipelines, vehicles, aircraft, rail infrastructure, bridges and roads.
According to the government, the measure will reduce Canada's marginal effective tax rate on new business investment from roughly 13 per cent to 6.4 per cent. Draft legislation was released September 15.
Another major announcement involved Canada's airports. The federal government said it plans to seek private investment through long-term concessions to operate the country's four largest airports while retaining public ownership of the underlying assets. Officials said capital raised through the arrangements could be directed toward other infrastructure projects, including regional transportation and broadband.
The government also unveiled a prospectus featuring 167 major investment-ready projects valued at approximately $327 billion. The projects span eight sectors, including energy, critical minerals, digital infrastructure and advanced manufacturing.
One of the largest projects announced alongside the summit was a planned $52.5-billion artificial-intelligence infrastructure hub in Saskatchewan involving Bell Canada and the provincial government. The project is expected to create more than 4,500 jobs in construction, operations, management and related industries, according to the federal government.
The summit comes as Canada seeks to diversify its economy and reduce vulnerabilities associated with its heavy reliance on trade with the United States. Speaking to investors in Toronto, Carney said Canada intends to build stronger economic relationships around the world while developing domestic energy, technology, infrastructure and critical-mineral industries.
The federal government has set a goal of catalyzing $1 trillion in total investment in Canada over five years. The investment summit was designed as one part of that broader effort to bring together government, businesses and institutional investors.
While the announcements represent substantial proposed and committed capital, the long-term economic impact will depend on whether individual projects proceed, receive necessary approvals and attract the additional financing required for construction.
For Canadian communities, the investment push could mean new infrastructure, construction activity and employment opportunities, while also increasing development in sectors ranging from energy and mining to artificial intelligence and transportation.
The federal government is now expected to focus on turning the commitments and proposed projects announced during the summit into completed investments across the country.