Financing the Transition: Empowering Canadian SMEs to Decarbonize Their Buildings

  • Client

    BDC

  • Year

    2022 - On-going

  • Region
    • North America (USA-Canada)
  • Service
    • Innovative Financing Mechanisms
  • Countries

    Canada

  • Provinces

    Canada-wide

  • Sector
    • Financial institutions
Econoler

Canadian small and medium sized enterprises (SMEs) play a critical role in the country’s economy, yet many face challenges in reducing energy consumption and greenhouse gas emissions in their buildings. To help address this gap, the Business Development Bank of Canada (BDC), in collaboration with Econoler, developed a nationwide pilot program designed to support SMEs in considering energy efficient retrofits and green building certifications. The program aimed to clarify available options, outline potential pathways, and help businesses better understand next steps toward more sustainable buildings.

Encouraging Sustainable Building Decisions 

In 2022, BDC sought a consulting partner to help design solutions that would encourage Canadian SME owners to reduce their buildings’ energy use and carbon footprint. Financed by BDC, the pilot program combined financial incentives with high-level guidance on energy efficiency and green building certifications, supporting informed decision-making aligned with Canada’s broader climate and energy efficiency objectives. 

Econoler was selected for its recognized expertise in energy efficiency, green building certifications, and advisory support related to retrofit initiatives. 

The program was offered nationwide, with participating SMEs located across multiple provinces, including Ontario, Quebec, British Columbia, Alberta, Prince Edward Island, Newfoundland and Labrador, New Brunswick, and Manitoba. Econoler’s experts delivered support through a combination of virtual and in person sessions, ensuring accessibility for SMEs across Canada. 

Designing a Dual Path Program

To respond to the diverse needs and readiness levels of SMEs, the pilot program was structured around two participation paths:

1. Retrofit Path 
SMEs could explore the implementation of at least two energy efficiency measures, with the objective of achieving a minimum 20% reduction in energy consumption. 

2. Green Building Certification Path 
SMEs could pursue one of several recognized green building certifications, based on their building type, objectives, and level of readiness. 

Econoler’s role focused on providing high-level guidance on retrofit pathways and green building certification standards, helping SMEs understand requirements, benefits, and key considerations associated with each path.

Supporting SMEs Across Canada

Between 2022 and 2025, Econoler supported BDC in delivering the pilot program through several core components:

  • Program Design: Contribution to the development of a pilot program tailored to the Canadian SME market, addressing common barriers to energy efficient retrofits and green building certifications.
  • Consultation Support: One-on-one consultation sessions, typically 30 to 60 minutes in length, to explain the two participation paths and discuss financial, technical, and business considerations.
  • Business Advice Reports: For the Retrofit Path, Econoler analyzed energy consumption and greenhouse gas emissions, identified potential reduction measures, and provided recommendations to support SME decision-making.
  • Green Certification Guidance: Support in understanding green building certification options and navigating associated technical requirements.

Following the pilot phase, BDC continued the Green Building Certification offering as an ongoing program, with Econoler providing targeted, session-based guidance on certification standards when requested.

Advancing Sustainable Building Practices

The program helped translate sustainability ambitions into practical guidance for SMEs across Canada by:

  • Providing access to a national program focused on energy-efficient retrofits and green building certifications
  • Offering expert guidance to help SMEs better understand available options and pathways
  • Contributing to BDC’s positioning as a financial institution supporting SMEs in their exploration of sustainable building practices

Benefits for Stakeholders

The program delivered differentiated value for both the financial institution and participating businesses considering building retrofits or new construction projects.

For BDC

  • A structured offering within its services portfolio addressing green building and energy efficiency
  • Access to technical expertise through collaboration with Econoler

For SMEs

  • Personalized consultation sessions to support retrofit or certification decision-making
  • Access to BDC financing solutions aligned with energy-efficient and green building projects
  • Improved understanding of the potential long-term benefits associated with energy efficiency and green building certifications, including resilience, marketability, and energy performance

Looking Ahead

The pilot program demonstrated the value of pairing financial incentives with high-level guidance on green building certification standards and retrofit pathways for SMEs considering sustainable building practices. Building on the pilot’s foundations, BDC has continued the Green Building Certification program beyond the initial phase, with Econoler maintaining its role as a technical partner by providing ongoing guidance on certification standards and pathways.

Together, BDC and Econoler continue to support Canadian SMEs as they explore more sustainable approaches to building performance.

Learn more about our work with financial institutions