Canadian SMEs represent 99% of businesses nationally, employing 9 out of 10 private sector workers and contributing more than half of our GDP. Despite being the backbone of our economy, they generate an estimated 52% of commercial greenhouse gas emissions and have been chronically overlooked in national climate strategies.
In our latest submission for the 2026–2029 Federal Sustainable Development Strategy, Green Economy Canada outlines a clear roadmap to futureproof our small businesses, secure our clean energy grid, and rapidly build out the infrastructure of tomorrow.
Here is how we can unlock the massive, untapped potential of Canada’s SMEs.
Canadian SMEs represent 99% of businesses nationally, employing 9 out of 10 private sector workers and contributing more than half of our GDP. Despite being the backbone of our economy, they generate an estimated 52% of commercial greenhouse gas emissions and have been chronically overlooked in national climate strategies.
In our latest submission for the 2026–2029 Federal Sustainable Development Strategy, Green Economy Canada outlines a clear roadmap to futureproof our small businesses, secure our clean energy grid, and rapidly build out the infrastructure of tomorrow.
Here is how we can unlock the massive, untapped potential of Canada’s SMEs.
1. Support SMEs in the Transition to a Low-Carbon Economy
Many small businesses want to do their fair share for the environment, but they face steep time, knowledge, and financial barriers. When funding programs do open up, they are historically oversubscribed and rarely designed with the unique needs of an SME in mind.
To bridge this gap, Green Economy Canada calls for the creation of a $3B Green Economy Fund for SMEs.
The Vision for the Fund:
1. Support SMEs in the Transition to a Low-Carbon Economy
Many small businesses want to do their fair share for the environment, but they face steep time, knowledge, and financial barriers. When funding programs do open up, they are historically oversubscribed and rarely designed with the unique needs of an SME in mind.
To bridge this gap, Green Economy Canada calls for the creation of a $3B Green Economy Fund for SMEs.
The Vision for the Fund:
Direct Financial Support:
Cover up to 50% of project costs (up to $100,000) for energy retrofits and clean technology adoption. This could help more than 30,000 SMEs kickstart their net-zero journey.
Direct Financial Support:
Cover up to 50% of project costs (up to $100,000) for energy retrofits and clean technology adoption. This could help more than 30,000 SMEs kickstart their net-zero journey.
Support to Track GHG Data & Provide Staff Training:
Provide incentives for SMEs to develop greenhouse gas (GHG) inventories to accurately track their carbon footprints, while funding training programs to build green skills among existing employees.
Support to Track GHG Data & Provide Staff Training:
Provide incentives for SMEs to develop greenhouse gas (GHG) inventories to accurately track their carbon footprints, while funding training programs to build green skills among existing employees.
SME-First Application Design:
Small businesses don’t have the resources to spend too much time applying for funding that may or may not materialize. The application process must be short, simple, and feature fast turnaround times so business owners can use their time wisely and make informed decisions.
SME-First Application Design:
Small businesses don’t have the resources to spend too much time applying for funding that may or may not materialize. The application process must be short, simple, and feature fast turnaround times so business owners can use their time wisely and make informed decisions.
Equity-Focused Streams:
Dedicated priority streams could be structured to support First Nations, Inuit, and Métis-owned businesses, rural and northern communities, and other equity-deserving groups.
Equity-Focused Streams:
Dedicated priority streams could be structured to support First Nations, Inuit, and Métis-owned businesses, rural and northern communities, and other equity-deserving groups.
2. Decarbonize and Strengthen the Clean Electricity Grid
While 82% of Canada’s electricity is already emissions-free, the carbon intensity of provincial grids varies wildly. For SME manufacturers in regions like Alberta, Saskatchewan, New Brunswick, and Nova Scotia, reducing Scope 2 (electricity-based) emissions is an uphill battle because local grids still rely heavily on fossil fuels like natural gas.
We need the federal government to use both carrots and sticks—incentivizing new clean generation and interregional transmission lines while decreasing emissions through the Output-Based Pricing System. As we expand this infrastructure, Indigenous communities must also be engaged as full partners, encouraging a rising trend of Indigenous ownership and co-ownership of clean energy projects.
2. Decarbonize and Strengthen the Clean Electricity Grid
While 82% of Canada’s electricity is already emissions-free, the carbon intensity of provincial grids varies wildly. For SME manufacturers in regions like Alberta, Saskatchewan, New Brunswick, and Nova Scotia, reducing Scope 2 (electricity-based) emissions is an uphill battle because local grids still rely heavily on fossil fuels like natural gas.
We need the federal government to use both carrots and sticks—incentivizing new clean generation and interregional transmission lines while decreasing emissions through the Output-Based Pricing System. As we expand this infrastructure, Indigenous communities must also be engaged as full partners, encouraging a rising trend of Indigenous ownership and co-ownership of clean energy projects.
3. Triple the Budget for EV Infrastructure (ZEVIP)
Transportation accounts for a quarter of Canada’s greenhouse gas emissions. If we want to reach Canada’s target of 100% zero-emission vehicle (ZEV) sales by 2035, the infrastructure has to keep up.
The appetite for this shift is massive. For example, when Green Economy Canada opened a new $1M tranche of EV Charger funding last year, we received 186 applications within just 48 hours. Ontario-based SMEs alone requested $10.4M—exceeding the available funding tenfold.
Small businesses want to build out charging infrastructure, but they can’t shoulder the cost alone. We urge the federal government to triple the current budget of the Zero Emission Vehicle Infrastructure Program (ZEVIP) to $2B, securing the way for 350,000 new charging stations across the country
3. Triple the Budget for EV Infrastructure (ZEVIP)
Transportation accounts for a quarter of Canada’s greenhouse gas emissions. If we want to reach Canada’s target of 100% zero-emission vehicle (ZEV) sales by 2035, the infrastructure has to keep up.
The appetite for this shift is massive. For example, when Green Economy Canada opened a new $1M tranche of EV Charger funding last year, we received 186 applications within just 48 hours. Ontario-based SMEs alone requested $10.4M—exceeding the available funding tenfold.
Small businesses want to build out charging infrastructure, but they can’t shoulder the cost alone. We urge the federal government to triple the current budget of the Zero Emission Vehicle Infrastructure Program (ZEVIP) to $2B, securing the way for 350,000 new charging stations across the country
The Bottom Line
A strong Canadian economy depends on a strong small business community, and a strong small business community is one that is prepared for the needs and opportunities of a low-carbon economy.
By investing directly in our SMEs, the government won’t just hit climate targets—it will spur a powerful economic multiplier effect, reducing operating costs, driving green job creation, and keeping Canadian businesses globally competitive.
Let’s ensure the 2026–2029 Federal Sustainable Development Strategy builds a resilient, inclusive net-zero future that leaves no business behind.
The Bottom Line
A strong Canadian economy depends on a strong small business community, and a strong small business community is one that is prepared for the needs and opportunities of a low-carbon economy.
By investing directly in our SMEs, the government won’t just hit climate targets—it will spur a powerful economic multiplier effect, reducing operating costs, driving green job creation, and keeping Canadian businesses globally competitive.
Let’s ensure the 2026–2029 Federal Sustainable Development Strategy builds a resilient, inclusive net-zero future that leaves no business behind.
Read our Submission
To read our full submission to the Federal Sustainable Development Strategy, you can download the PDF below.
Read our Submission
To read our full submission to the Federal Sustainable Development Strategy, you can download the PDF below.