Small and medium-sized enterprises (SMEs) play an important role in Georgia’s economy.
SMEs provide more than 67% of employment and about 62% of gross value added. Although
the environmental footprint of individual SMEs may be low, their aggregate impact
in many respects exceeds that of large businesses. Commercial banks have an important
role to play in providing access to green finance, particularly for SMEs. This report
reviews the experience with green lending in the SME sector in Georgia. The analysis
identifies the main challenges with lending to SMEs for green projects and discusses
possible solutions. The report, in particular, looks at the role of the government
and the policy instruments it can use to stimulate higher demand for green lending
in the SME sector.