As governments and businesses accelerate their efforts to meet climate targets, many small and medium-sized enterprises (SMEs) are struggling to play their part in the green transition. Financing is a key prerequisite for SMEs to green their business models and drive the transition through eco-innovations; yet many small businesses lack the human and financial resources to undertake green actions.

The OECD High-level event on Financing SMEs for Sustainability in the COP26 brought together the OECD, public financial institutions focused on SME financing, and the business sector to discuss the main drivers and challenges for sustainable financing of SMEs, promising sustainable finance models and instruments for SMEs, as well as the role of policy in accompanying SMEs on their journey to net zero. The event highlighted the role for international cooperation in this area, and announced the creation of the OECD Platform on Financing SMEs for Sustainability hosted by the OECD Centre for Entrepreneurship, SMEs, Regions and Cities.