{"id":85906,"date":"2024-04-10T13:55:42","date_gmt":"2024-04-10T17:55:42","guid":{"rendered":""},"modified":"2024-11-29T17:55:35","modified_gmt":"2024-11-29T22:55:35","slug":"what-does-canadas-net-zero-future-mean-for-your-business","status":"publish","type":"rbc_my_money_matter","link":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/business\/right-sized-business-advice\/commercial\/what-does-canadas-net-zero-future-mean-for-your-business\/","title":{"rendered":"What does Canada\u2019s net-zero future mean for your business?"},"content":{"rendered":"<div class=\"wp-block-rbc-single-article-header\">\n\t<section class=\"section-grey cover pad-t-hlf\">\n\t\t<div class=\"section-inner w-half w-mob-full centered-margin cover section-grey pad-tb-0\">\n\t\t\t\t\t\t\t<div class=\"inline-block pill-container pill-taxonomies\">\n\t\t\t\t\t<div class=\"mar-b-hlf mob-mar-b snipe pill is-style-blue-pill\">\n\t\t\t\t\t\t<a class=\"primary-taxonomy\" href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/topic\/commercial-client-success-stories\/\">\n\t\t\t\t\t\t\t<span>Commercial Client Success Stories<\/span>\n\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<h1 class=\"mar-b-hlf mar-t-0 mob-pad-lr-hlf h2 has-black-color\">What does Canada\u2019s net-zero future mean for your business?<\/h1><p class=\"mar-b-0 mob-pad-lr-hlf author-text\">By Lisa Felepchuk<\/p>\t\t\t\t\t<div class=\"featured-image-wrapper pos-rel\">\n\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2024\/03\/iStock-1415703636.jpg?quality=80\" class=\" cover-image  wp-post-image\" alt=\"Person standing in contemplation in urban city with nature trees composite, Shenzhen, China\" srcset=\"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2024\/03\/iStock-1415703636.jpg 2121w, https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2024\/03\/iStock-1415703636.jpg?resize=300,200 300w, https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2024\/03\/iStock-1415703636.jpg?resize=768,512 768w, https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2024\/03\/iStock-1415703636.jpg?resize=1024,683 1024w, https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2024\/03\/iStock-1415703636.jpg?resize=1536,1024 1536w, https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2024\/03\/iStock-1415703636.jpg?resize=2048,1365 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t<\/section>\n\t<div class=\"article mar-t-dbl\">\n\t\t\t\t<section>\n\t\t\t<div class=\"section-inner socials-section\">\n\t\t\t\t<div class=\"top-socials-bar mob-mar-b-hlf\">    <div class=\"social-links mob-mar-b-hlf mob-mar-t-hlf\">\n            <a class=\"social-button-wrapper sharing-custom sharing-email\" href=\"mailto:?subject=What does Canada\u2019s net-zero future mean for your business? &#038;body=Hi, I thought you might be interested in this article from RBC My Money Matters: https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/business\/right-sized-business-advice\/commercial\/what-does-canadas-net-zero-future-mean-for-your-business\/\">\n        <img decoding=\"async\" src=\"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/plugins\/rbc-blocks\/assets\/img\/icons\/icon-email.svg\"\n          alt=\"envelope icon\">\n        <span>\n          Email        <\/span>\n      <\/a>\n      <div class=\"social-button-wrapper sharing-copy-wrapper\">\n        <button class=\"sharing-custom sharing-copy\" data-url=\"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/business\/right-sized-business-advice\/commercial\/what-does-canadas-net-zero-future-mean-for-your-business\/\">\n          <img decoding=\"async\"\n            src=\"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/plugins\/rbc-blocks\/assets\/img\/icons\/icon-related.svg\"\n            alt=\"copy icon\">\n          <span id=\"sharing-copyUrl-Label\">\n            Copy URL          <\/span>\n        <\/button>\n        <input type=\"text\" class=\"sharing-copy-text\" aria-labelledby=\"sharing-copyUrl-Label\">\n      <\/div>\n    <\/div>\n  <\/div>\n\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section>\n\t\t\t<div class=\"section-inner w-half w-mob-full centered-margin pad-tb-0 mob-mar-t-hlf mob-mar-b\">\n\t\t\t\t<p class=\"cover-pub-line text-xs mar-b-hlf\">Published April 10, 2024 \u2022 5 Min Read<\/p>\t\t\t<\/div>\n\t\t<\/section>\n\t<\/div>\n<\/div>\n\n\n\n<section class=\"wp-block-rbc-section-block  pos-rel\" style=\"border-radius:0px\">\n<div class=\"wp-block-rbc-section-inner-block  section-inner w-half w-mob-full\" style=\"border-radius:0x\">\n<p><strong>Prepare your company to eliminate greenhouse gasses and support Canada\u2019s 2050 net-zero target.<\/strong><\/p>\n\n\n\n<p>There will always be strength in numbers. We\u2019re better when we work together. Be it on a large global scope or at the community level, change happens more quickly and effectively. Eliminating greenhouse gasses (GHGs) from coast to coast is no different. Canada\u2019s ability to become a net-zero nation by 2050 will be made possible by businesses, particularly small- to medium-sized ones, that take action now.<\/p>\n\n\n\n<p>It makes sense. More than 99% of <a href=\"https:\/\/ised-isde.canada.ca\/site\/sme-research-statistics\/en\/key-small-business-statistics\/key-small-business-statistics-2022\" target=\"_blank\" data-dig-id=\"LP-85906-97efa6bb\" data-dig-category=\"LP\" data-dig-action=\"link click\" data-dig-label=\"businesses \" rel=\"noreferrer noopener\" class=\"rbc-link-format\">businesses <\/a>in Canada are small- and medium-sized enterprises (SMEs). Small businesses in particular, which are considered companies with 99 or fewer paid employees, account for nearly 68% (8.2 million people) of the private sector workforce; medium-sized businesses (100\u2012499 employees) make up another 20%.<\/p>\n\n\n\n<p>\u201cWe often see that the perception from these sizes of businesses is that they are too small to make a difference when it comes to reducing their carbon footprint, but the reality is that the world is transitioning and it is going to impact every business in every industry,\u201d says Priyanka Lloyd, Executive Director of <a href=\"https:\/\/greeneconomy.ca\/\" target=\"_blank\" data-dig-id=\"LP-85906-1b9f6382\" data-dig-category=\"LP\" data-dig-action=\"link click\" data-dig-label=\"Green Economy Canada\" rel=\"noreferrer noopener\" class=\"rbc-link-format\">Green Economy Canada<\/a>.<\/p>\n\n\n\n<p>That\u2019s what makes organizations like Green Economy Canada so important. Green Economy Canada works with SMEs to develop achievable action plans that help move companies closer to a low-carbon future. Currently there are 250 organizations in Green Economy Canada\u2019s network and to-date they\u2019ve worked with over 600 businesses nation-wide to collectively reduce more than 225,000 GHGs. That\u2019s equivalent to taking 69,000 cars off of the road for one year.<\/p>\n\n\n\n<p>\u201cWe can transition the bulk of our economy, but if we don\u2019t engage the bulk of the businesses that the economy is formed of, which is small- to medium-sized businesses that make up more than half of our GDP and employ almost nine in 10 private sector workers, the reality is we\u2019re not going to get to where we need to be,\u201d says Lloyd.<\/p>\n\n\n\n<p>The Canadian Net-Zero Emissions Accountability Act, a law that came into place on June 29, 2021, solidified Canada\u2019s commitment to net-zero emissions by 2050. It\u2019s the foundation to GHG elimination nation-wide. More recently, the <a href=\"https:\/\/www.canada.ca\/en\/environment-climate-change\/news\/2022\/03\/2030-emissions-reduction-plan--canadas-next-steps-for-clean-air-and-a-strong-economy.html\" target=\"_blank\" data-dig-id=\"LP-85906-04b798cd\" data-dig-category=\"LP\" data-dig-action=\"link click\" data-dig-label=\"2030 Emissions Reduction Plan\" rel=\"noreferrer noopener\" class=\"rbc-link-format\">2030 Emissions Reduction Plan<\/a> (2030 ERP), a framework that received input from 30,000 Canadians, including business owners, Indigenous Peoples, youth, and more, outlines specific and actionable items to help meet the 40 to 45% GHG reduction by 2030. The 2030 ERP is ambitious and includes initiatives like reducing energy costs for homes and buildings, encouraging the use of electric vehicles, addressing carbon pollution in the oil and gas sector, changing infrastructure to support renewable electricity, and more.<\/p>\n\n\n\n<p>Lloyd agrees that the challenge now is to follow through on these commitments. As a nation, Canada has work to do.<\/p>\n\n\n\n<p>According to the Government of Canada\u2019s <a href=\"https:\/\/www.canada.ca\/en\/services\/environment\/weather\/climatechange\/climate-plan\/climate-plan-overview\/emissions-reduction-2030\/2023-progress-report.html\" target=\"_blank\" data-dig-id=\"LP-85906-aafdd314\" data-dig-category=\"LP\" data-dig-action=\"link click\" data-dig-label=\"2023 Progress Report\" rel=\"noreferrer noopener\" class=\"rbc-link-format\">2023 Progress Report<\/a> on the 2030 ERP (released December 2023), we\u2019re behind target. The <a href=\"https:\/\/climateinstitute.ca\/reports\/2030-emissions-reduction-plan\/\" target=\"_blank\" data-dig-id=\"LP-85906-44efea8d\" data-dig-category=\"LP\" data-dig-action=\"link click\" data-dig-label=\"Canadian Climate Institute\" rel=\"noreferrer noopener\" class=\"rbc-link-format\">Canadian Climate Institute<\/a>, a nonpartisan policy think tank, conducted an independent assessment of the latest progress report and found that if we had not adopted any new policies since 2015, our national emissions would be 7% higher than they are today and 41% higher than the projected emissions in 2030. With the current policies in place, we\u2019re on track to reduce emissions 34% to 36% by 2030, which is behind the 2030 ERP\u2019s projection of 40% to 45%.<\/p>\n\n\n\n<p>Still, it\u2019s still within reach, though wider adoption is needed<\/p>\n\n\n\n<p>\u201cPolicy can only do so much and the change is going to be driven by what happens in our homes, in our businesses, and in our local communities,\u201d says Lloyd.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Government funding to supporting small- and medium-sized businesses in Canada<\/h2>\n\n\n\n<p>In the murky world of initiatives and grants, services like <a href=\"https:\/\/grantmatch.com\/\" target=\"_blank\" data-dig-id=\"LP-85906-7b46d1fb\" data-dig-category=\"LP\" data-dig-action=\"link click\" data-dig-label=\"GrantMatch \" rel=\"noreferrer noopener\" class=\"rbc-link-format\">GrantMatch <\/a>offer business owners and leadership teams a helping hand. With insight into available programs, many of which are highly competitive, along with the technical expertise required to be a successful applicant, GrantMatch uses its inhouse software alongside its teams of specialized grant writers to pair companies with appropriate options and secure funding to make impactful and lasting change. It has collectively secured over $300 million in government funding for its client base, spanning a variety of industries, from food and beverage, manufacturing, agriculture, technology and more.<\/p>\n\n\n\n<p>\u201cThe cost of borrowing money for businesses continues to rise and it\u2019s becoming increasingly challenging to get business loans. Grants are a non-dilutive option,\u201d says Gibson Ingram, Director of Product Marketing and Growth at GrantMatch. \u201cThey\u2019re not a loan, they\u2019re not repayable, and so grants are becoming more and more important to help get businesses to the next step.\u201d<\/p>\n\n\n\n<p>The grant landscape can be daunting, Ingram notes, but there\u2019s help out there. <a href=\"https:\/\/grantmatch.com\/hub\" target=\"_blank\" data-dig-id=\"LP-85906-7142e73c\" data-dig-category=\"LP\" data-dig-action=\"link click\" data-dig-label=\"GrantMatch Hub\" rel=\"noreferrer noopener\" class=\"rbc-link-format\">GrantMatch Hub<\/a> is a sound starting point. It connects the dots between companies and current grant programs that are applicable to different businesses based on industry, company size and more.<\/p>\n\n\n\n<p>A number of federal tax credits are also available to help businesses adopt clean technology and Lloyd recommends checking with the local utility company to see what\u2019s potentially available for credits or rebates in your area.<\/p>\n\n\n\n<p>There\u2019s the Climate Action Bootcamp, too, an introductory workshop by Green Economy Canada that helps SMEs understand their business case for reducing emissions along with examples of steps that can be taken to get there. It\u2019s just an hour-long commitment and registration for the upcoming workshops (there will be two held initially) open in April 2024.<\/p>\n\n\n\n<p>\u201cClimate action is one of those untapped levers that you can be using to make your business stronger and more competitive,\u201d says Lloyd. \u201cIt\u2019s one that you need to be paying attention to, so that you\u2019re resilient to the changes that are coming as the world transitions.\u201d<\/p>\n\n\n\n<div class=\"wp-block-group mar-b-hlf has-light-grey-background-color has-background is-layout-constrained wp-block-group-is-layout-constrained\">\n<h3 class=\"wp-block-heading\">Current Federal Grants for Canadian Businesses<\/h3>\n\n\n\n<p><a href=\"https:\/\/natural-resources.canada.ca\/energy-efficiency\/energy-efficiency-for-industry\/green-industrial-facilities-and-manufacturing-program\/20413\" target=\"_blank\" data-dig-id=\"LP-85906-12180ba0\" data-dig-category=\"LP\" data-dig-action=\"link click\" data-dig-label=\"Green Industrial Facilities and Manufacturing Program\" rel=\"noreferrer noopener\" class=\"rbc-link-format\">Green Industrial Facilities and Manufacturing Program<\/a><\/p>\n\n\n\n<p>Eligibility: Manufacturing sector, governments, nonprofits, and commercial businesses<\/p>\n\n\n\n<p>Funding: Up to $20,000,000<\/p>\n\n\n\n<p>Application Status: The Energy Efficiency Solutions track is expected to reopen in 2024<\/p>\n\n\n\n<p><a href=\"https:\/\/www.ontario.ca\/page\/dairy-processing-modernization-initiative-guidelines\" target=\"_blank\" data-dig-id=\"LP-85906-a65f045b\" data-dig-category=\"LP\" data-dig-action=\"link click\" data-dig-label=\"SCAP ON \u2013 Dairy Processing Modernization Initiative\" rel=\"noreferrer noopener\" class=\"rbc-link-format\">SCAP ON \u2013 Dairy Processing Modernization Initiative<\/a><\/p>\n\n\n\n<p>Eligibility: Dairy processors in Ontario<\/p>\n\n\n\n<p>Funding: Up to 50% of eligible costs, maximum of $200,000<\/p>\n\n\n\n<p>Application Status: Opens April 2, 2024<\/p>\n<\/div>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-rbc-rbc-default-collapsible\"><p><button class=\"collapse-toggle collapsed\" data-target=\"#collapse834a1009\" data-toggle=\"collapse\" aria-expanded=\"false\" aria-controls=\"collapse834a1009\" data-dig-id=\"LP-57738-834a1009\" data-dig-category=\"LP\" data-dig-action=\"accordion closed\" action-closed=\"accordion closed\" action-opened=\"accordion open\" data-dig-label=\"Things our lawyers want you to know\"><span>Things our lawyers want you to know<\/span><span>Things our lawyers want you to know<\/span><\/button><\/p><div class=\"collapse-content collapse\" id=\"collapse834a1009\">\n<div class=\"wp-block-rbc-collapsible-inner-block collapse-inner\">\n<p>This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. 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