REEEP, in cooperation with ICETT and PFAN, will be organising a side event at COP22 in Marrakech about finance pathways for SMEs in developing countries. SMEs make up an overwhelming share of many developing country economies, and are vital to creating inclusive and sustainable development. Yet SMEs are underrepresented in climate and development financing schemes. The session will discuss ways to mainstream SMEs into NDC-led climate finance schemes.
Small and Medium sized Enterprises (SMEs) are important drivers of growth and account for up to 90% of all businesses in developing country markets. Supporting their growth and competitiveness should therefore be a central component for any NDC implementation strategy. Access to finance, particularly for high start-up costs, is a serious challenge for many SMEs that want to adopt the use of climate friendly technologies, and they often find it difficult to access large scale public funding mechanisms. Much of the finance needed for NDC implementation will have to be filled from a combination of public and private sources i.e. blended finance.
Technology Needs Assessments are a prerequisite for the implementation of NDCs. These can be administered primarily via so-called Platforms for Market Change which promote technology and knowledge transfer among a larger group of public and private stakeholders and ensure anchoring in local institutions, country ownership and engagement with relevant market stakeholders (including governmental entities, private sector and finance). The primary objective of such platforms is to amplify learning in the market, coordinate with stakeholders to promote synergies, avoid duplication of efforts, and harmonize policies that will minimize market distortions and support the reduction of greenhouse gasses in the long term.
The panel will discuss how innovative financing solutions and closer stakeholder engagement can help developing countries reach and exceed their NDCs, and how to ensure SMEs play a meaningful and central role in this effort.
Moderator: Martin Hiller, Director General of REEEP
Panelists:
- Prince Lekan Fedina, Former Minister of Economy, Government of Nigeria (invited)
- Syamsidar Thamrin, Deputy Director Weather and Climate, Ministry of National Development Planning (Bappenas), Government of Indonesia
- Ari Huhtala, Deputy CEO – Policy and Programmes, CDKN and Governing Board Member of REEEP
- Peter Storey, Global Coordinator of the Private Finance Advisory Network (PFAN)
- Mark Fogarty, First Energy Asia and Governing Board Member of REEEP
This event will take place in Room Pacific.
