What's Happening?
At the Davos economic forum, there is a call to focus on small- and medium-sized enterprises (SMEs) as key players in global resilience and climate action. SMEs make up 90% of businesses worldwide and are crucial for economic growth, especially in developing
nations. However, they also account for 50% of global business sector emissions and face significant barriers to adopting sustainable practices. The SME Climate Hub and other initiatives are helping these businesses access tools and resources to reduce emissions and improve resilience.
Why It's Important?
SMEs are vital to the global economy and play a significant role in climate action. Their participation in sustainability efforts is crucial for reducing emissions and achieving global climate goals. By supporting SMEs, especially in developing regions, the global economy can become more resilient and equitable. This focus on SMEs at Davos underscores the need for inclusive economic policies that consider the unique challenges faced by smaller businesses in the transition to a low-carbon economy.
What's Next?
To support SMEs in their climate goals, there is a need for practical tools, financial resources, and policy support. Major economic events like Davos are encouraged to give SMEs a larger platform to voice their needs and challenges. Collaboration between large corporations, governments, and SMEs is essential to create a supportive environment for sustainable business practices. This includes simplifying trade policies and providing access to green finance, especially for SMEs in the Global South.
