Third Capacity Building Study Visit

This third capacity-building study visit explored "Accelerating Energy-Efficiency Investments among SMEs in the Western Balkans". The event was co-organised with the Ministry of Foreign and European Affairs of Croatia under the OECD project Digital and Green SMEs: Accelerating the Twin Transitions in the Western Balkans, financed by the Government of Croatia.

The event provided a platform for representatives of the six Western Balkan economies to discuss the state of play of energy-efficiency investment among businesses in the region, including the main drivers and barriers to investment, as well as opportunities and good practices to overcome these challenges and advance the green transition. Through two panel sessions, the workshop explored financing models that can help SMEs overcome financial barriers to energy-efficiency investment, as well as the wider ecosystem of technical assistance, collaboration, knowledge exchange, and practical tools for identifying and communicating the wider benefits of energy-efficiency investments. The discussions highlighted relevant good practices from Croatia and the Western Balkans. The workshop was complemented by field visits to businesses in the region of Istria, Croatia that have successfully implemented energy-efficient measures or processes.

• Agenda
• Presentations
• Event summary (available soon)
• Photos
• Briefing note: Accelerating Energy-Efficiency Investments among SMEs in the Western Balkans (available soon)

Energy-efficiency investments are increasingly recognised as an effective way to strengthen businesses’ competitiveness while advancing the green transition. Measures such as upgrading machinery and production processes, improving building insulation, installing efficient heating and cooling systems, and investing in on-site renewable energy generation can reduce operating costs, improve productivity and lower firms’ environmental footprint. While the OECD Western Balkans Enterprise Survey shows that improving energy efficiency is already among the more commonly adopted greening measures, only 38% of surveyed firms report having made investments in energy-efficiency measures (Figure 1).

Despite the long-term benefits, SMEs continue to face barriers to investing in energy efficiency, including limited access to finance, information and technical expertise. A lack of investment-ready projects can also discourage financial institutions from expanding their green offerings, while limited availability of dedicated financial schemes provides firms with fewer incentives to invest in project preparation. Together, these challenges can make it difficult for SMEs to identify viable investment opportunities, prepare bankable projects and implement investments effectively.

The objectives of the study visit were to:

• Explore financial instruments and financing models that can help SMEs overcome financial barriers to energy-efficiency investments, including initiatives that mobilise both public and private capital.
• Understand how the wider ecosystem of technical assistance, institutional collaboration, and business support can help SMEs build networks and prepare investment-ready projects.
• Examine how government institutions, the private sector and chambers of commerce can work together to deliver integrated financial and non-financial support for energy-efficiency investment, showcasing practical examples and their impact on businesses.

Cameron Gethings, OECD South East Europe Division, Cameron.GETHINGS@oecd.org

Merima Smajic, OECD South East Europe Division, Merima.SMAJIC@oecd.org