Fueling the Future of Climate Innovation in Quebec

In a strategic move that signals the growing importance of climate tech innovation in Quebec, Desjardins Group has committed 400,000 CAD to the “Lab to Start-up” initiative led by Cycle Momentum, a leading cleantech startup accelerator. Funded through the Fonds du Grand Mouvement, this investment represents a critical leap toward commercializing climate solutions born in university labs and scaling them into real-world startups.

This commitment marks Desjardins as the first major financial institution in Quebec to invest in a cleantech startup acceleration program, reinforcing the province’s leadership in clean technology and sustainable economic development.

 

Why Climate Tech in Quebec Matters More Than Ever

Quebec’s Environmental Targets Demand Innovation

Quebec has committed to reducing greenhouse gas (GHG) emissions by 37.5% by 2030, compared to 1990 levels, and reaching net-zero emissions by 2050. Achieving this requires transformative technologies in areas such as:

  • Renewable energy and energy storage

  • Carbon capture and utilization

  • Sustainable agriculture

  • Smart mobility and electrification

  • Green building and construction

  • Industrial decarbonization

These innovations demand long-term R&D and ecosystem support, an area where Quebec is gaining global recognition.

Quebec’s Cleantech Industry at a Glance

According to MaRS Cleantech and SDTC:

  • Over 50% of Canada’s climate tech startups are concentrated in Quebec and Ontario.

  • Quebec accounts for more than 400 cleantech companies, many emerging from Montreal, Sherbrooke, and Quebec City.

  • The Canadian cleantech sector is projected to be worth over $107 billion by 2030, with Quebec leading key segments like electric vehicles, clean hydrogen, and smart energy grids.

 

Desjardins Group: Leading Sustainable Finance in Quebec

As the largest cooperative financial institution in North America, Desjardins Group has a long-standing commitment to sustainable finance. With $464.7 billion in assets (as of Q3 2024) and top-tier ESG ratings, Desjardins has invested significantly in projects tied to social impact, climate resilience, and green economic growth.

This $400,000 contribution to Cycle Momentum’s Lab to Start-up initiative reflects a shift from passive ESG reporting to active impact investing, targeting early-stage innovation where funding gaps are most acute.

“By supporting Cycle Momentum, we reaffirm our vision for a sustainable Quebec. Climate tech is not just about innovation – it’s about empowering a new generation of entrepreneurs to build a better world.”

– Isabelle Garon, EVP, Marketing, Communications, Cooperation, and the President’s Office, Desjardins

Cycle Momentum: Building the Future of Cleantech

About Cycle Momentum

Cycle Momentum is an internationally recognized cleantech accelerator and open innovation platform based in Montreal. Founded in 2015 as part of the Cycle Capital platform, its mission is to identify, support, and scale technologies that solve major ecological challenges.

It operates:

  • Acceleration programs for early-stage climate tech ventures

  • Startup-industry collaboration programs with large corporate partners

  • Investment matchmaking through its Origo program, co-funded by the Government of Quebec

  • Partnerships with top research centers and universities in Quebec

 

Track Record and Impact

  • Over 120 startups accelerated since 2015

  • Portfolio startups have raised more than $250 million in funding

  • Strategic partnerships with Hydro-Québec, Investissement Québec, CN, and more

  • Alumni include emerging leaders in green energy storage, carbon capture, and electric mobility

 

“This partnership with Desjardins marks a crucial milestone. We are accelerating the creation of a new generation of climate tech startups from Quebec’s university research.”

– Patrick Gagné, CEO, Cycle Momentum

Inside the “Lab to Start-up” Initiative: Quebec’s First Academic-to-Startup Pipeline for Cleantech

 

The Lab to Start-up initiative is a first-of-its-kind model in Quebec, designed to translate academic research into cleantech startups with global impact. Drawing inspiration from models like MIT’s The Engine and Stanford’s TomKat Center, this program aims to:

  • Identify high-potential clean technology from Quebec universities

  • Support researchers with business modeling, IP strategy, and market validation

  • Match researchers with co-founders, advisors, and early investors

  • Rapidly prototype and test real-world solutions

  • Support startup launch and scale through Cycle Momentum’s accelerator

Key Goals of the Program

  • Expand Quebec’s cleantech startup pipeline

  • Bridge the gap between academic R&D and commercial readiness

  • Retain top STEM talent within Quebec’s innovation ecosystem

  • Promote regional economic development through green innovation

Core Consortium Partners

 

By uniting academia, finance, and municipalities, the “Lab to Start-up” model builds a full-stack innovation pipeline to tackle both climate change and economic resilience.

A Cooperative Model for Climate Innovation

 

Desjardins’ involvement goes far beyond writing a cheque. Through its Fonds du Grand Mouvement, the institution has already committed over $250 million in impact investments across Quebec, spanning:

  • Renewable energy infrastructure

  • Sustainable agriculture co-ops

  • Affordable green housing initiatives

  • Environmental innovation labs

 

This $400,000 investment in Cycle Momentum places Desjardins at the intersection of:

It sends a signal to private sector players, pension funds, and philanthropic organizations: climate tech is a strategic asset class – not just an environmental obligation.

How This Investment Strengthens Quebec’s Startup Ecosystem

Unlocking Early-Stage Innovation

One of the biggest challenges for cleantech ventures is the “valley of death” between lab innovation and market traction. This funding:

  • De-risks commercialization for university spinouts

  • Accelerates time-to-market for breakthrough technologies

  • Builds founder teams with both technical and business expertise

  • Creates inclusive economic opportunities across Quebec’s regions

 

Supporting Quebec’s Regional Development Goals

The program will work closely with universities across Quebec, including:

This regional focus ensures that climate innovation is not limited to urban centers, but becomes a driver of job creation and resilience across the province.

 

A Broader Vision: From Local Initiative to Global Leadership

Quebec is already gaining attention as a hub for bilingual cleantech commercialization, due to:

  • A robust research and engineering talent pool

  • Access to low-carbon electricity from Hydro-Québec

  • Supportive provincial and federal policies (e.g., tax credits, SDTC grants)

  • Cultural alignment with both European and North American markets

By strengthening its academic-to-startup pipeline, Quebec is laying the foundation to become a world-class exporter of clean technologies – from battery recycling to agri-biotech to energy optimization software.

 

Looking Ahead: What Success Looks Like

Over the next 24 months, the “Lab to Start-up” initiative aims to:

  • Launch 25+ new climate tech startups

  • Generate $10M+ in follow-on funding

  • Facilitate 100+ research-to-startup transitions

  • Place Quebec among top 10 global cleantech startup hubs

As climate risks increase, regions that build adaptive innovation ecosystems today will emerge as leaders tomorrow. This partnership is a step in that direction.

Final Thoughts: Strategic Capital for a Sustainable Quebec

Desjardins’ $400K investment into Cycle Momentum isn’t just about funding startups, it’s about investing in the long-term resilience, prosperity, and leadership of Quebec.

In a world where climate crisis and economic uncertainty collide, solutions must be local in roots but global in reach. With this strategic alliance, Desjardins, Cycle Momentum, and the Quebec government are proving that public-private partnerships can build that bridge.