
Contents
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I. Climate-Related Risks Can Be Particularly Challenging for MSME to Address I. Climate-Related Risks Can Be Particularly Challenging for MSME to Address
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II. Regulatory and Infrastructure Support for MSME in the Transition II. Regulatory and Infrastructure Support for MSME in the Transition
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i. Financing for the MSME Sector in Respect of Climate Action i. Financing for the MSME Sector in Respect of Climate Action
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III. MSME Governance of Climate Risk and Opportunity III. MSME Governance of Climate Risk and Opportunity
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i. Women Will Help Lift Up Micro and Small Businesses i. Women Will Help Lift Up Micro and Small Businesses
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9 Climate Governance for Micro, Small, and Medium Enterprises
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Published:November 2020
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Abstract
Chapter 9 explores why management of climate-related risks can be particularly challenging for micro, small, and medium enterprises (‘MSME’) to address. MSME comprise about 99 per cent of all businesses globally and they often lack the infrastructure and resources to manage deep shifts in their business activities. This chapter explores how one could build financing and infrastructure to support the MSME sector to advance in their transition to net zero. It discusses how the European Union has taken the lead globally on microfinance for vulnerable groups that want to set up or develop their businesses and microenterprises. It is building the institutional capacity of microcredit providers and supporting development of social enterprises by facilitating access to finance. It also examines climate governance for MSME, offering examples of toolkits being developed for micro and small businesses. The chapter concludes with a discussion of contributions that women entrepreneurs and micro-business owners are making in the transition to net zero.
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