Access to Green Finance for SMEs in Georgia
Small and medium-sized enterprises (SMEs) play an important role in Georgia’s economy. SMEs provide more than 67% of employment and about 62% of gross value added. Although the environmental footprint of individual SMEs may be low, their aggregate impact in many respects exceeds that of large businesses.
Commercial banks have an important role to play in providing access to green finance, particularly for SMEs. This report reviews the experience with green lending in the SME sector in Georgia. The analysis identifies the main challenges with lending to SMEs for green projects and discusses possible solutions. The report, in particular, looks at the role of the government and the policy instruments it can use to stimulate higher demand for green lending in the SME sector.
Also available in: Georgian
Climate finance for SMEs in Georgia
This chapter analyses the provision of green finance to small and medium-sized enterprises (SMEs) in Georgia. It discusses the experience of three banks most active in the Georgian market – Bank of Georgia, ProCredit Bank Georgia and TBC Bank. On this basis, the chapter discusses the sustainable energy challenges in Georgia, and the emerging policy context for green investment. These are analysed in terms of supply-side and demand-side policy measures. The chapter finishes by identifying possible policy responses to scale up green finance for SMEs in the country.
Also available in: Georgian
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