Policy Approaches to Support Green Financing of Micro, Small, and Medium-Sized Enterprises

This report draws on the experience of Asia-Pacific Economic Cooperation members to highlight ways of improving much-needed green financing for micro, small, and medium-sized enterprises (MSMEs) by increasing capacity, harnessing technology, and building knowledge.

Noting the crucial role of MSMEs in creating jobs and driving economic growth, the report outlines how challenges such as high costs and compliance hurdles restrict their access to finance such as green bonds, loans, and insurance. It shows how policies designed to develop the use of fintech, support MSME training, and work with the private sector to improve data collection can expand green finance access, accelerate the low-carbon transition, and support inclusive growth.