Innovative green-technology SMEs as an opportunity to promote financial de-risking
15.03.2018
Céline Bak (Centre for International Governance Innovation CIGI); Elena Verdolini (Fondazione Eni Enrico Matte); Joël Ruet (CNRS-CEPN, i3-CRG-Ecole Polytechnique, The Brdige Tank); Anbumozhi Venkatachalam (Economic Research Institute for ASEAN and East Asia – ERIA)
Economics: The Open-Access, Open-Assessment E-Journal 12 (2018-14): 1–12
The authors recommend that the G20 target innovative green-technology SMEs as an opportunity to promote financial de-risking while addressing Paris Agreement commitments and UN Sustainable Development Goals. This should be achieved by creating signals for private investors through: (1) a reporting system that can help monitor the scale-up of green-technology SMEs; (2) the use of public funds to signal innovative green-technology SMEs to investors; and (3) the inclusion of SMEs in the design of green finance platforms. By implementing these recommendations, the G20 will ensure that innovative, low-carbon SMEs become attractive, low(er)-risk investment opportunities for the private sector.