What the Liberal Climate Agenda Means for Canadian SMEs

Canada’s Clean Economy Vision: What You Need to Know

The new Liberal government has put forward an ambitious new plan to accelerate Canada’s transition to a clean, sustainable economy. With a strong focus on investment, innovation, and long-term economic growth, the plan outlines major commitments to clean energy, critical mineral development, and industrial decarbonization. In this blog, we outline the key elements of the plan and their implications for SME’s.

Key Highlights of the Liberal’s Plan

1.     Massive Investment in Clean Energy and Critical Minerals

Significant public and private investment in clean energy infrastructure, EV charging stations, and the full supply chain for critical minerals has been promised. New and expanded tax credits will support mining, processing, and clean tech manufacturing.

2.     Expanding Clean Investment Tools

Canada will issue transition bonds and strengthen clean investment tax credits to attract $200 billion in private capital over five years. This includes incentives for clean technology, electricity, hydrogen, and carbon capture.

3.     Industrial Competitiveness and Emissions Pricing

The Output-Based Pricing System (OBPS) for large industrial emitters will be enhanced to maintain competitiveness while reducing emissions. A Carbon Border Adjustment Mechanism will be developed to ensure fairness for Canadian industries and maintain their competitiveness.

4.     Carbon Removal and Climate Transparency

The plan supports Canada becoming a world leader in carbon removal and carbon sequestration and introduces mandatory climate risk disclosures for companies to increase transparency for investors.

5.     A Focus on Jobs and Economic Growth

Job creation through clean energy, green construction and Indigenous economic participation is emphasized, ensuring the green transition is inclusive and economically beneficial.

Implications for Canadian SMEs

Small and medium-sized enterprises (SMEs) will be key players in this new climate and energy landscape, both as contributors and beneficiaries.

1. Expanded Market Opportunities

SME's in clean tech, construction, EV infrastructure, and critical mineral supply chains could benefit from a surge in investment and demand. Those offering energy efficiency services or low-carbon building products will be particularly well-positioned.

2. Supply Chain Localization

With the government aiming to reduce reliance on imported clean fuels and materials, Canadian SMEs could see new opportunities to serve domestic supply chains — especially in biofuels, renewable power, and mineral processing.

3. Tax Incentives and Support

New and expanded tax credits could reduce costs for SMEs involved in clean technology development or retrofitting operations to reduce emissions. SMEs may also benefit indirectly as large emitters are encouraged to support smaller businesses and households in adopting green technologies.

4. More Stringent Expectations on Climate Disclosure

SMEs should prepare for greater expectations around climate-related disclosures and sustainability reporting as regulations evolve. As the federal government moves to mandate broader climate risk disclosure and develop sustainable investment guidelines, large companies will increasingly expect their suppliers and partners to align with their own sustainability goals. SMEs that provide goods or services to sectors like manufacturing, construction, energy, agriculture, and transportation will likely face mounting pressure to measure and reduce their greenhouse gas emissions and demonstrate how they are managing climate-related risks.

Final Thoughts

The Liberal agenda sends a clear signal: Canada’s economic future is transitioning to a clean economy, and SMEs have a central role to play. Those who align early, by improving energy efficiency, integrating sustainability into their business models, and tracking their emissions, will be better positioned to thrive in the evolving policy and investment landscape.

How Achieve Sustainability Can Help

At Achieve Sustainability, we help SME’s navigate Canada's changing regulatory landscape as it transitions to net zero. Whether you are looking to improve your climate-related disclosure, measure your carbon footprint, or reduce your emissions, our team is here to help. Reach out today to book a complimentary consultation!