Unlocking Net-zero Pathways for SMEs
What will it take to help SME manufacturers lead Canada’s transition to net-zero?
Unlocking Net-Zero Pathways for SMEs
What will it take to help SME manufacturers lead Canada’s transition to net-zero?
Unlocking Net-zero Pathways for SMEs
What will it take to help SME
manufacturers lead Canada’s
transition to net-zero?
The Net-Zero Advantage:
How SME Manufacturers Can Lead Canada’s Green Transition
Small and medium-sized manufacturers across Canada are facing a defining moment. As larger organizations look to green their supply chains, and governments tighten regulations, manufacturers proactively embracing decarbonization will position themselves as leaders in the new green economy; cutting costs, staying competitive, and future-proofing their businesses.
SMEs contribute between 30%-40% of Canada’s total emissions, but their unique needs, challenges, and opportunities have been largely overlooked by policymakers.
The good news is that SME manufacturers are uniquely positioned to lead the charge towards a vibrant and inclusive net-zero future. Unlike larger corporations with complex decision-making structures, SME manufacturers can pivot faster, implement changes more efficiently, and integrate sustainability in a way that makes immediate business sense.
Green Economy Canada is excited to release two new reports that demonstrate how small and medium manufacturers in Ontario and Atlantic Canada can lead the transition to the net-zero economy.
Canada has set a goal of cutting its emissions 40-45% by 2030 from 2005 levels and achieving net-zero emissions by 2050. Small and medium sized enterprises (SMEs) make up 99% of businesses in Canada and are the backbone of our economy in communities across the country. Yet how to mobilize SMEs to reduce their emissions, and adapt and thrive in the low-carbon transition has been largely overlooked. SME manufacturers in particular are one segment that will be impacted significantly by the low-carbon transition.
To help address this gap, Green Economy Canada and the Pembina Institute launched a pilot project with ten participants in Ontario focused on identifying the barriers and support SME manufacturers need to transition to a net-zero future. This project combined technical studies on greenhouse gas (GHG) reduction opportunities, alongside qualitative interviews on the barriers the participants face in decarbonizing. We also conducted a scan of what federal and Ontario-level policies exist to help or hinder SMEs on the path to net-zero. Read the report below.
The Unlocking Net Zero Pathways for SME Manufacturers project was made possible thanks to the generous support of the ECHO Foundation, Ivey Foundation, Trottier Foundation and TD.
Green Economy Canada, along with our technical partners, the Pembina Institute and CBCL Limited, completed a study to understand the pathways to net zero for small and medium-sized manufacturers in Atlantic Canada, and the opportunities and barriers they face in making the net-zero transition. We recruited one participant from each Atlantic province to complete net-zero technical studies, conducted a scan of policies and programs that could impact the net-zero transition for small and medium-sized enterprises (SMEs), and interviewed service providers in Atlantic Canada to understand the local capacity to support the transition.
The Fast Forward: Enabling the Net-Zero Transition for SME Manufacturers in Atlantic Canada project was made possible thanks to the generous support from the Atlantic Canada Opportunities Agency.
By taking action today, SME manufacturers have a significant opportunity to reduce energy and operating costs while establishing themselves as a supplier of choice. SMEs with their agility, innovation, and significance to local communities across the country represent a source of untapped potential in accelerating Canada’s transition to a vibrant and inclusive net-zero future. With the right support designed and delivered for SME manufacturers, we can unlock this tremendous potential to hit our climate goals, drive economic growth, increase industry competitiveness, and position Canada as a leader in green economic transformation globally.
If you are an SME manufacturer in Ontario, Atlantic Canada, or other parts of the country, these reports are for you. It’s an opportunity to get ahead of market demands, reduce costs, and build resilience now.
If you are a policymaker or industry leader, these reports are a call to action; it’s time to rethink how we engage SME manufacturers in Canada’s net-zero journey, ensuring they get the support they need to succeed.
