SMEs are pivotal to advancing the green transition, yet their contribution is often held back by limited access to appropriate finance. This report highlights the critical role of public policy in closing these financing gaps and mobilising sustainable investment for SMEs. By segmenting SMEs according to their roles as innovators, enablers, and adopters of green practices, it maps a broad spectrum of public financial and complementary non-financial support measures implemented across OECD countries and beyond. This mapping is enriched by a set of in-depth case studies that provide practical lessons for the effective design and delivery of such programmes.
Drawing on the diverse experiences documented throughout the report and in the case studies, several clear lessons emerge regarding how financing and non-financial support can most effectively enable SMEs to pursue greener business practices.
Scaling up financing for SME greening requires an integrated approach that goes beyond capital provision. Public interventions should be designed to target market gaps, such as high perceived risks, long payback periods, and information asymmetries, while ensuring that supported investments are commercially viable and capable of attracting private capital. Risk-sharing mechanisms, concessional terms, and demonstration effects can all help crowd in private financing providers, multiplying the impact of public resources.
Equally important is the provision of non-financial support to lower entry barriers and strengthen the quality of projects. Advisory services, subsidised audits, reporting guidance, and simplified digital procedures can help SMEs meet eligibility and compliance requirements without diluting sustainability standards. Well-designed technical assistance also builds the long-term capacity of SMEs to manage green investments and embed sustainability in their business models.
Programme design and delivery channels play a decisive role. Selecting skilled intermediaries and partners ensures that financing and support are delivered efficiently, transparently, and at scale, while digital tools can reduce transaction costs, improve monitoring, and create stronger pipelines. By reinforcing the broader ecosystem—developing common standards, building institutional capacity, and mainstreaming sustainable lending practices—public finance can ensure that SME greening can be scaled up and accelerated.
Putting these lessons into practice can enable adoption and scaling of similar solutions in countries around the world, adapted to specific local contexts and the needs of SMEs. The OECD Committee on SMEs and Entrepreneurship, and its Platform on Financing SMEs for Sustainability, will continue their efforts to support governments and financial institutions in enabling SMEs to drive the transition to sustainability.
