Friday, May 2, 2025
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 per cent 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 has released two new reports that demonstrate how small and medium manufacturers in Atlantic Canada and Ontario can lead the transition to the net-zero economy.
Fast Forward:
Enabling the Net-Zero Transition for SME Manufacturers in Atlantic Canada
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.
This project was made possible thanks to support from CBCL Limited and the Pembina Institute, and the financial support from the Atlantic Canada Opportunities Agency.
Unlocking
Net-Zero Pathways
for SME Manufacturers’
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.
This project was made possible thanks to support from the Pembina Institute, the Delphi Group, and the financial support of the ECHO Foundation, Ivey Foundation, Trottier Foundation, and TD.
Featured image credit: Getty Images
