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Access to Green Finance for SMEs in Georgia

image of 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.

English Also available in: Georgian

Energy, Environmental and Climate Policy of Georgia

This chapter looks at the sustainable energy and climate policy in Georgia, and the emerging policy context for green investment, particularly for small and medium-sized enterprises. This includes key strategic documents such as the Low Emission Development Strategy and Nationally Appropriate Mitigation Actions. It also includes emerging policy documents such as the National Energy Efficiency Action Plan and National Renewable Energy Action. After reviewing the most recent relevant policy developments, the chapter concludes with a discussion of potential areas that need further strengthening. Relevant themes include renewable energy targets, environmental regulations and enforcement, energy prices, public procurement and non-renewable energy options.

English Also available in: Georgian

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