Canada’s Water Future: Budget 2025 Sends Encouraging Signals, But Leadership Is Still Needed

The federal government recently unveiled its Budget 2025. Amidst promises of "nation-building" investments and the inevitable "sacrifices" demanded, particularly from the public service, one question remained crucial : where does water stand?

AquaAction's position is clear and echoes the government's own slogan: it is impossible to “Build a Strong Canada” without first securing our water future. 

Water is at the heart of everything. It supports our communities and underpins our national defense, energy, agriculture, infrastructure, and public health. Yet, in the face of climate change, pollution, and growing demographic pressure, Canada’s freshwater future is at risk. We must act before a crisis emerges, especially in today’s uncertain global environment.

Budget 2025 Highlights Encouraging Measures

• Urgent investments in water infrastructure
• Support for innovators in water technologies
• Export assistance for companies in the sector

These measures mark a turning point for water innovation stakeholders and the communities that rely on sustainable solutions.

Canada Water Agency Maintained: A Collective Victory

The Canada Water Agency (CWA) has been preserved without major cuts,  a significant win for freshwater protection advocates. Over the summer, rumours of budget reductions threatened the agency’s essential work, even as it continues to develop a National Water Security Strategy, a key pillar for the future of our most vital resource.

The Gaps: Strong Leadership and Strategic Investments

Despite these advances, Canada still needs to demonstrate strong leadership in water security.

The budget does not yet include the national strategy nor the promised $100 million Strategic Water Protection Fund. This fund would be the largest investment in water innovation in our history, with private and philanthropic partners already ready to engage.

Water Innovation: An Underused Economic Lever

The global water technology market is estimated at $600 billion. With targeted support, Canadian companies could capture 2 to 3% of this market, representing $20 to $30 billion in annual exports by 2030.

We applaud the finalization of the Clean Technology Investment Tax Credit, but call for it to be expanded to explicitly include water technologies.

Supporting SMEs and Strengthening Water Security

Budget 2025 offers indirect but promising support for water entrepreneurs:

• $68.5 million over four years for the CanExport
• ProgramProductivity super-deduction measures to catalyze private investments
• $1 billion for the Defence Business Mobilization Program, which could include dual-use water technologies (civilian and military)
  

We were especially delighted to see AquaEntrepreneur alumni Watershed Monitoring specifically recognized as an international success story for its expansion into international markets. With the right support, we could empower exponentially more companies just like them.   

Seed Capital: An Opportunity Not to Miss

The $750 million investment in seed capital and angel networks is excellent news for entrepreneurs.  These funds are essential for turning innovative ideas into concrete, market-ready solutions. We eagerly await the strategy the government plans to develop this year to align these investments with the specific needs of water technology businesses.

Training Tomorrow’s Leaders and Promoting Equity

The budget also supports :

• Expansion of SR&ED tax credits, with the annual spending cap raised to $6 million
• Creation of a Youth Climate Corps with $40 million to train the next generation of environmental leaders
• Continued efforts to eliminate boil water advisories in Indigenous communities

Conclusion: Water Must be a National Priority

The future of freshwater in Canada is at stake. Budget 2025 sends encouraging signals, but still lacks a historic investment and targeted leadership. It’s time to empower the next generation of innovators to solve the water crisis. We can no longer afford to wait.