No net zero without SMEs: Accelerating the green transition of SMEs

Dec 5, 2023 | 11:30 AM - 1:00 PM

Description

With small and medium-sized enterprises (SMEs) generating around 40% of business-sector greenhouse gas (GHG) emissions, there can be no net zero without SMEs. Equally, SMEs, start-ups and the entrepreneurs behind them, are important drivers of the many innovations that can advance sustainable development and the green transition. However, smaller businesses and entrepreneurs face numerous challenges in advancing on the green transition. Improving access to finance, for example, will be essential. Despite the recent and significant growth in the sustainable finance market, most SMEs still face barriers in tapping into this pool of funds. This, in part, reflects a lack of awareness, but also reflects challenges in measuring and reporting on environmental performance, not least because reporting requirements across and within countries remain heterogeneous. This session will explore the importance for regulatory and policy frameworks to support the active participation of SMEs and entrepreneurs in the green transition, taking SME specificities into account upstream. It will also consider how innovation policies are key for green start-ups and green innovation in SMEs, while upskilling and business support services can help small business owners assess their environmental performance and take concrete actions.

Moderated by

Marija Kuzmanovic

OECD Centre for Entrepreneurship, SMEs, Regions and Cities

Policy Analyst and Project Coordinator

Speakers

Lucia Cusmano

OECD Centre for Entrepreneurship, SMEs, Regions and Cities

Acting Head SMEs and Entrepreneurship Division

Nancy Goudreau

Desjardins

Managing Director Sustainable Financing

Matteo Grazzi

Inter-American Development Bank

Senior Specialist, Competitiveness Technology and Innovation Division

Philippe Mutricy

Bpifrance

Director of Evaluation, Studies and Foresight

Petri Salminen

SMEunited

President

Find out more Related resources

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SMEs and entrepreneurs are of critical importance for reaching climate objectives. They have a significant environmental footprint on aggregate, but also make important contributions to reaching net zero through their innovations and greening efforts. This paper discusses the importance of taking entrepreneurs and SMEs into account in climate and environmental policies. It analyses the drivers and barriers of green entrepreneurship and the greening of SMEs, and discusses policy options to support these objectives.

This paper presents the first estimates of the OECD project “Towards a pilot dashboard of SME greening and green entrepreneurship indicators”, which is part of broader work of the OECD Committee on SMEs and Entrepreneurship (CSMEE) to support governments in making SMEs active players in the green transition. The paper first explains the rationale behind this measurement exercise, which relates to the importance of monitoring carbon emissions and energy consumption in the business sector, including SMEs, as governments strive to achieve their climate objectives

Addressing the climate crisis requires the net zero transition of millions of SMEs globally. SMEs have a significant aggregate environmental footprint and need to adopt cleaner business models. As eco-entrepreneurs and eco-innovators, they also have a key role to play in devising innovative climate solutions. Access to finance is essential for SME investments in net zero, but small businesses face considerable challenges in tapping into the growing pool of sustainable finance.

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