The GreenEcoNet team is proud to present the 5the and final policy brief in our series, entitled 'Private Climate Finance Mechanisms for SMEs'.
This final policy brief is based on an expert literature review and conversations with GreenEcoNet stakeholders and other experts. It explores a range of private finance mechanisms to fund climate mitigation and adaptation, and makes the case that they should be part of a much larger package of actions to re-engineer our economy towards a green economy model. This highlights the need to reduce the barriers SMEs experience when trying to access these finance mechanisms.
Check out the abstract below, and click here to read policy brief in full.
Abstract In the post COP21 agenda, dedicated private to private finance mechanisms to fund climate mitigation and adaptations actions are expected to play an increasingly important role. These should be part of a much larger package of actions to reengineer our economy towards a green economy model. In Europe, SMEs provide the majority of employment and generate more than half of the GDP in Europe: Europe therefore needs an enabling policy environment which reduces the barriers they experience when trying to access these finance mechanisms to fully exploit the opportunities offered by the green economy.
Main policy messages
Europe needs a specific and dedicated set of policy measures at the core of European economic policy to facilitate access to green private to private finance instruments for green SMEs, both as recipient, i.e. implementers, and as investors.
This set of measures should be consistent and integrated across scales (European, National, Regional, Local) and across member states, whilst respecting cultural, social, environmental and economic specificities.
The set of policy measures should address the barriers SMEs experience, in particular barriers related to technical and managerial capacity, skills knowledge and information, so that SMEs can exploit all the available private to private finance instruments.
The use of a participatory collaborative approach where SMEs and investors interested in the deployment of green economy solutions are involved in the development of the policy measures directly or through their multipliers, should be investigated, for example through the establishment of permanent investors - SMEs round table.
A mandatory monitoring, reporting and evaluation mechanism which ensures that the flow of investments to and from the SMEs happens, and that investors, funding instruments and recipients meet green criteria in the broader sense should be deployed.
Policy measures should include provisions to encourage the growth of direct peer to peer and citizens to SMEs mechanisms of investment, in particular crowdfunding.
Citation Topi, C., Marini Govigli, V (2016) Private Climate Finance Mechanisms for SMEs. GreenEcoNet Policy Brief No. 5. Weblink