A Government of Canada study: The Impact of Regulatory Compliance Costs on Business Performance  identifies that regulatory burden significantly constrains SME growth and productivity. Using data from Statistics Canada and CRA, the analysis found that a one percent increase in compliance cost intensity reduces revenue growth by 1.6%, employment growth by 0.5%, and labour productivity by 0.1% (Government of Canada, 2020). Furthermore, smaller firms bear a heavier burden than larger ones, and unnecessary red tape further erodes competitiveness.

While regulations protect workers, consumers, and the environment, the report underscores the need for streamlined processes and clarity, initiatives like the Paperwork Burden Reduction Initiative and Red Tape Reduction Action Plan aim to address these challenges.

Nova Scotia has emerged as a leader in regulatory modernization through its Office of Regulatory Affairs and Service Effectiveness. The province has saved businesses over $21 million since 2021 by streamlining processes and reducing unnecessary red tape, earning an A- grade in CFIB’s 2025 Red Tape Report Card (Government of Nova Scotia, 2025). Its new Making Business Easier Act (2025) accelerates these efforts by eliminating low risk permits, modernizing outdated regulations, and simplifying approval processes, changes projected to save businesses an additional $800,000 annually (NS Legislature, 2025).

These examples highlight that reducing regulatory complexity is not just an administrative exercise, it is a strategic imperative for unlocking SME capacity, fostering innovation, and ensuring that sustainability and growth objectives are achievable in practice.

Budget 2025: Context and Opportunity

The federal government’s Climate Competitiveness Strategy, outlined in Budget 2025, reframes sustainability as a driver of productivity and security. With over $1 trillion in projected investment over five years, Canada is positioning clean growth as both a moral imperative and a commercial opportunity. These investments aim to modernize grid infrastructure, expand renewable energy, and strengthen Canada’s leadership in clean technology (Canadian Climate Institute, 2025).

Key measures include:

• Clean Economy Investment Tax Credits for low-carbon technologies.
• Expanded eligibility for clean electricity and hydrogen production.
• Carbon Capture, Utilization, and Storage (CCUS) incentives extended through 2035.
• Modernized industrial carbon pricing for long-term certainty.

For Fredericton, New Brunswick and Atlantic Canada, this is a moment of opportunity. Our region is well-positioned to lead in clean energy innovation, attract investment, and support Indigenous equity ownership in renewable projects. Sustainability is no longer a cost, it’s a competitive advantage.

According to the Atlantic Economic Council, Budget 2025 reconfirms Canada’s net-zero target by 2050 and advances regulatory reforms that will reshape energy production and compliance.

These measures align environmental policy with economic opportunity, offering Atlantic Canada, and New Brunswick in particular, a pathway to lead in the emerging clean economy.

The Knowledge Industry Shift: Policy, Partnership, and Clarity

At Shaping the Debate: The Knowledge Industry Shift, a two-day event co-hosted by UNB and the Fredericton Chamber in September 2025, experts emphasized the need for coordination and predictable communication.

By fostering a reciprocal relationship grounded in transparency, shared goals, and mutual efficiency, public and private sectors can co-create impactful solutions. On the first night of the event, a panel discussing “The New Brunswick Advantage: Harnessing a Knowledge Industry powered by Digital for Transformative Change”, addressed the need for coordination, predictable communication and expectations.

Technology adoption often feels risky for SMEs. As Francis P. McGuire, President of 797insights Ltd. noted “the number 1 problem is the fear of the businessperson saying, I don’t understand this… this is risky”. Clear communication and predictable policy can reduce that fear.

On the same panel, Dr. Herb Emery, Vaughan Chair in Regional Economics UNB, presented the need for predictability and stability for both SME businesses, and larger firms. As Dr. Emery stated, “if you want SMEs to scale, you’re going to have to think differently about how you’re going to give them the advantage”.

For example, if a huge portion of a business costs is predicting what property taxes, or power rates, will be next year, how can we expect a business to invest in a new electricity saving project? We must work to coordinate the opportunity for new programs with creating the predictable conditions for a business to adopt them.

The complete series of panels of our Shaping the Debate event can be found on the series website (University of New Brunswick, 2025). The event ultimately presented the power of communication and interdisciplinary approaches to current world problems. Another way to view interdisciplinary approaches , is simply, collaboration. The coordination problem then, can be tackled through collaboration, or to put it another way, effective communication and recognition of value.

Conclusion

Greening operations is not solely about environmental stewardship, it equally holds the power to unlock new economic opportunities, improve efficiency, and help our businesses gain a competitive edge. The value is obvious, but the connections are tenuous, especially when faced with pressing daily demands of capacity concerns, regulatory burden, international tariffs, and general rising costs of doing business.

The value of knowledge and research, the financial incentives for green innovation and technology, and the glaring opportunities in efficiency programs are far too immediate not to take every advantage. We all must do our part to communicate the instrumental value and build connections that result in true collaboration and the necessary coordination.

Why does the green transition matter?

• Intrinsic value: climate action, ethical responsibility
• Instrumental value: efficiency, competitiveness, growth

The green transition is both a moral imperative and a business opportunity. Progress depends on mutual understanding and shared goals, where opportunities for growth are clearly communicated and supported, not imposed. This must start with mutual and clear recognition of value and demands, resources and requirements, and it all starts with communication.

About the Author
Nicholas Sehl is Policy and Strategic Communications Manager with the Fredericton Chamber of Commerce. He oversees policy development, advocacy, and communications initiatives, including public policy research and member engagement across business, non-profit and education sectors.

The University of New Brunswick will host the next in the Shaping the Debate Series in January 2026. To learn more about these conversations and to receive updates, subscribe to the Pond-Deshpande Centre’s Newsletter, here.