Participation in Decarbonization by Small and Medium-sized Enterprises: A Comparative Analysis of Canada and the United Kingdom

Canada and the United Kingdom have committed to reaching net-zero greenhouse gas emissions by 2050. Small and medium-sized enterprises (SMEs) make up more than 99% of businesses in both countries and account for a substantial share of business-related emissions, so their participation in decarbonization matters. However, they differ considerably in their size, sector, location, ownership, financial resources and internal capacity. These differences shape their opportunities to decarbonize as well as the barriers they face.

There is also an equity dimension. Equity-deserving SMEs are distributed differently across sectors, business sizes and regions and may face unequal access to financing and support. At the same time, gaps in disaggregated data make it difficult to identify where barriers are greatest and which supports are working. SMEs also need practical skills to understand environmental requirements, measure and report emissions, assess technologies, and navigate financing and procurement opportunities.

Going forward, priorities include improving disaggregated data, tailoring programs to differences in sector, size, ownership and region, expanding practical green skills development, connecting training with financing and technical assistance, making support easier to navigate, and working with SME, regional and community networks to design and evaluate programs. These actions can help more SMEs move from environmental interest and individual practices toward sustained, measurable decarbonization.