Green finance for small and medium enterprises is among the priorities of the G7 Environment
Italy has included green finance, with specific focus on the needs of the small and medium enterprises, among the priorities of the G7 Environment to be held in Bologna on June 11-12. To enhance the discussion on this topic the Ministry of Environment organized the preparatory meeting “Mobilising green finance for small and medium sized enterprises”, kicked off by Under Secretary Barbara Degani.
The event was the occasion to present a report that takes stock of existing activities in G7 countries, identifies a range of best practices and suggests possible next steps for G7 actions to improve the relationship between green finance and SME sector. A relationship that still faces several obstacles, such as lack of data on the green financing needs of SMEs among banks and other financial institutions; incomplete integration of environmental performance into the assessment of risks facing SME funding decisions; limited set of green financing products; insufficient diversity of financial institutions offering long-term patient capital; lack of awareness among SMEs regarding the benefits of green investments.
The report identifies two core priority actions: enabling finance for SMEs to improve their sustainability performance and allocating finance for SMEs who are focused on expanding sales of green goods and services.