The Organisation for Economic Co-operation and Development (OECD) has released a major new study entitled Scaling Up Public Financial and Non-Financial Support for SME Sustainability: Innovations and Good Practices, offering detailed guidance on how governments and financial institutions can better enable small and medium-sized enterprises (SMEs) to participate in the global sustainability transition.
The report, published as part of the OECD’s Studies on SMEs and Entrepreneurship series, examines how public financial instruments and complementary non-financial support, from green loans to capacity-building services, can help SMEs overcome the persistent barriers that limit their ability to invest in sustainable practices. By drawing on more than 20 case studies from OECD and emerging economies, the study provides actionable lessons for policy design, implementation and scaling of effective interventions. REEEP’s Senior Analysts Kumbirai Makanza and Giulio Franci contributed to the report.
Key insights include:
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The importance of tailoring support for different types of SMEs, innovators, enablers and adopters, each facing unique sustainability-related challenges.
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How public finance can be structured to de-risk early sustainability investments and mobilise private capital.
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The critical role of non-financial support, such as advisory services, simplified reporting tools and training, in enabling SMEs to access and effectively use sustainability financing.
REEEP’s contribution
The report highlights the value of real-world market experience in shaping effective policy recommendations. In particular, the insights and practical lessons from REEEP’s work, in particular on our SOARING programme, have helped inform the OECD’s analysis of non-financial support mechanisms and performance-oriented financing models. Their contributions helped demonstrate how capacity-building, technical assistance and market-development tools can be critical complements to public financing in unlocking sustainability investments for SMEs.
Policy impact and forward outlook
The OECD’s new publication arrives at a critical moment as policymakers globally seek to accelerate progress toward climate and sustainability goals while ensuring that smaller firms are not left behind. With SMEs representing more than 90 % of businesses and a significant share of employment and economic value added worldwide, equipping these enterprises with the right mix of financial and advisory support will be essential to a just and inclusive green transition.
Governments, public development banks and sustainability finance actors are expected to use the findings and good practices outlined in this report to refine programmes that foster SME innovation, boost market diffusion of sustainable technologies, and strengthen local business ecosystems.
