| dc.description.abstract | Small to medium sized enterprises (SMEs) make up 99% of businesses in the United States (US) and account for almost half of GDP. Collectively, SMEs play a large role in the economy and should play a large role in sustainability as well. SMEs might consume more energy than corporations and have the potential to reduce more greenhouse gases. Even though there has been growing pressure on corporations to reduce greenhouse gas (GHG) emissions, SMEs have not been included in the sustainability conversation, perhaps because it’s been difficult to include them, or due to the perception of their irrelevance. Governments and investors have instead put pressure on corporations, which also have multiple reporting tools, tax breaks and incentives to help urge them to participate. It’s hard for SMEs to engage in sustainability initiatives because they can be costly and require time and human resources. Because few small businesses are engaged in sustainability efforts, there is little information on how they contribute to climate change.
This research aimed to quantify GHG emissions from SMEs in the US and evaluate future GHG emissions and reductions based on a variety of scenarios by addressing four main questions: What percentage of GHG emissions can be attributed to SMEs in the US? If every SME incrementally reduced GHG emissions, how much change would be seen? How much GHG can be avoided under different incentive scenarios? And what policies and incentives are available to motivate SMEs to participate? I aimed to test these hypotheses: 1) If small businesses in America reduced greenhouse gas emissions by 10%, total GHG emissions in the US would be reduced by 1 billion metric tons (t) per year, equivalent to 217 million cars (75% of cars on the road in the US). 2) A financial incentive to achieve LEED or ENERGY STAR certifications could be implemented to avoid 500 million t carbon dioxide equivalents (CO2e).
The Commercial Buildings Energy Consumption Survey (CEBCS) was used to identify building energy consumption. These data were matched with regional power grids, emission factors and global warming potential, and calculated into metric tons (t) CO2e emissions. It was determined that SMEs in the U.S. contribute to climate change by emitting 272 million t of CO2e per year, more than Thailand, the Philippines or Spain, and is responsible for 33% of all commercial building emissions in the US. Over the course of ten years, SMEs will emit almost 3 billion t CO2e just in building emissions.
A variety of scenarios were analyzed to show how measures that can be taken would affect cumulative GHG emissions through the year 2050. The scenario that included building energy efficiencies, consuming carbon free energy and eliminating the use of natural gas and fuel oil indicated that zero emissions could be achieved before 2050.
To motivate change, a synergistic mix of reporting tools to benchmark, incentives to motivate, regulatory requirements to drive performance, and financial assistance to cover upfront costs where necessary are needed. Some of the methods that could be used include incentivizing LEED or ENERGY STAR certification, carbon taxes or caps, and GHG trading systems. If the global goal of “net zero” emissions by 2050 is to be achieved, this small, but collectively large player is essential to include. | |
