Market Watch: Reflections on the past year and resolutions for 2025

General Market Commentary

In his year-end speech for 2024, Bank of Canada Governor Tiff Macklem confirmed that inflation is back at the Bank’s 2% target and noted the policy rate decrease by 50 basis points to 3.25%, the fifth consecutive decrease since June.

“We’ve come a long way in the past two years. Monetary policy has worked to restore low inflation. Interest rates have come down substantially, and household spending has begun to pick up. But I am not here to give a victory speech,” said Macklem, who notes that the nation needs to achieve price stability to give Canadians confidence about their cost of living.

The Bank of Canada has been conducting a review of the policy actions taken to restore financial stability and support the economy during the pandemic. This work is nearly done, according to Macklem. Once complete, the Bank will publish a review together with an assessment by an independent panel of experts.

Macklem explained that the spike in inflation in 2022 was a reminder that even though inflation was relatively low and stable for 30 years leading up to the pandemic, central banks cannot take public trust for granted.

For 2025, the Bank has set three priorities to help deliver for Canadians in a more uncertain world. “We need to work with our international partners to try and shape the future. Canada’s G7 presidency next year is an opportunity to lead,” explained Macklem. “We also need to improve our analysis, using richer information and better tools to respond to inevitable shocks. And finally, we need to ensure our monetary policy framework is fit for purpose.”

When it comes to trends in the cleantech market, an annual industry-wide report provides insight on compensation awards and practices, and analysis about the global cleantech industry with a focus on Canadian and U.S. companies with market caps under $10 billion.

The 2024 Report on Board and Executive Compensation in the Clean Technology Industry, released by The Bedford Group, provides detailed compensation data from over 175 publicly traded cleantech companies listed on the major stock exchanges, covering over 860 named executive officers and 1,200 board members.

“The cleantech industry continues to face challenges like rising turnover and increasing pressure on executive salaries,” said Amrit Sandhu, client partner at Bedford Consulting Group. “But what stands out is the resilience and resourcefulness of these companies. They’re finding ways to navigate labour shortages and funding constraints by making smarter, more strategic executive hires that position them for long-term success.”

Hot Sector News

Before we turn our attention to 2025, we’d like to recall your favourite stories from 2024.

1. More sustainable manufacturing in Canada (12,148 views)

This piece put the spotlight on Burnaby, British Columbia-based Nano One Materials Corp.  (TSX: NANO). The clean technology company was founded in 2011, featuring a patented, scalable, low carbon intensity industrial process for the low-cost production of high-performance lithium-ion battery cathode materials. This cleantech can be applied to electric vehicles, energy storage, consumer electronics and next-generation batteries — essentials for a zero-emissions future.

Mary Ng, Minister of International Trade, Export Promotion, Small Business and Economic Development (centre) greets a European Union delegation at Nano One’s Candia facility in Quebec. (Credit: Nano One Materials Corp.)

2. Conquering industrial carbon emissions with Canadian engineering (3,590 views)

This edition opened our eyes to the Ottawa-based Thermal Energy International (TSVX: TMG), which provides energy efficiency and emissions reduction solutions to Fortune 500 and other large multinational companies. With a suite of 10 proprietary technologies, the company’s customized solutions are designed to save customers money by reducing their energy use and cutting their carbon emissions. The custom engineered solutions are providing financial and environmental benefits for a growing number of customers.

Thermal Energy International’s William Crossland took on the CEO role in 2009, and has increased the company’s number of proprietary thermal energy efficiency technologies from one to 10 both organically and via acquisitions.

3. Canadian cleantech growth and stocks on the rise (1,014 views)

The focus on BIOREM (TSX: BRM), a leading Canadian cleantech provider headquartered in Guelph, Ontario, revealed a solid surge in stock value. Over the past three decades, the company has established a reputation for providing reliable air abatement solutions, specializing in tackling the exceptionally difficult and universal problems of odor, volatile organic compounds (VOCs), and hazardous air pollutants.

Founded in 1990, BIOREM is a global cleantech engineering company with one objective: engineer, design, manufacture and distribute the most innovative and effective air emissions abatement technologies in the world. Derek Webb, president and CEO of BIOREM (centre), received the 2023 Skip Willis Award.

When it comes to our new year’s resolutions, we’re committed to exploring new companies and executives in this column, as we delve into market dynamics and developments that impact the green economy.

Next edition we’re putting the spotlight on Northland Power’s new President and CEO, Christine Healy.

Do you have a suggestion for future editions of Market Watch this year? Don’t hesitate to reach out.

Stocks to Watch

Here is a list of Canadian cleantech stocks that we are monitoring for this column. This list of public companies is by no means complete, and we are open to suggestions from our advisors and readers.

*The authors of this column own equity. It is not meant to be an endorsement, but simply a statement of this fact.

James Sbrolla is a veteran of the financial and environmental industries.

Connie Vitello is editor of Environment Journal.

Featured image credit: Getty Images