1 item1 sme greening toolkit
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SME Greening Toolkit:
Policy instruments to promote better
environmental performance
Eugene Mazur
OECD Environment Directorate
Development of the SME Greening Toolkit
• Based on the experience of OECD countries
• Review of existing policies in EaP countries
– enhanced through pilot projects, including surveys
• Regional expert meeting: Kyiv, February 2015
• First edition – May 2015
• Rollout presentations in all EaP countries
• Issue-specific guidance for pilot countries included as annexes
– Simplified EMS certification (Armenia)
– Multi-stakeholder information scheme (Moldova)
– Simplified environmental regulation of SMEs (Ukraine)
– Green certification in the hospitality sector (Georgia)
Current use of green practices in the region
• Willingness to go beyond the requirements of environmental legislation varies from 4% in Armenia to 54% in Moldova
• Still, many SMEs already implement resource efficiency measures
Key drivers for green practices
• Growing prices for energy, water and raw materials
• Rising awareness that greening may lead to a competitive advantage
• Regulatory and financial incentives are very weak
Support for green practices: the biggest gap
• Ministries of economy are taking the lead but efforts insufficient
• Environment ministries provide regulatory info but don’t reach SMEs
• Donor-sponsored initiatives unsustainable in the long term
Government policies for SME greening
• Regulatory tools
• Information-based instruments
– Providing information, advice and guidance
– Recognising green practices
• Economic tools
– Financial incentives
– Market creation
• Institutional partnerships
Making regulatory tools smarter
• Replacing customised permits with general rules
– Low-risk activities, many operators, similar technologies
– Important to preserve notification of competent authority
• Incentives for EMS certification
– Privileges in the permitting process
– Reduced in monetary penalties
– Reduced inspection frequency
• Sectoral approach to compliance assurance
– SMEs respond primarily to compliance promotion messages adapted to their sector
– Inspection campaigns
– Partnerships with non-environmental regulators and trade associations
Providing information, advice and guidance
• Mix traditional and advanced communication tools
– “Regulatory watch”: e-mail, magazines, newsletters
– Web-based guidance
– Direct contacts between inspectors and operators
• Make the business case for green practices
– Emphasise efficiency gains and market opportunities
• Offer concise and clear guidance
• Distinguish legal requirements from good practice
• Simplified environmental management systems
– Multi-tier EMS: focus on simple, accessible improvements in management practices
• Sector-specific green certifications
• Eco-labels
• Environmental recognition awards
Recognising green practices
Financial incentives
• Tax privileges
– Accelerated amortisation
– Reduced property or corporate taxes
• Soft loans
– Encourage banks and insurance companies to provide incentives for green practices
• Subsidies for consultancy services
– Initial public funding is necessary
– Gradual transition to fee-based services
Market creation
• Green public procurement – environmental criteria of procurement decisions
– Compliance with environmental requirements
– Green certification
– Eco-labels
• Supply chain management – encourage large firms to form partnerships with smaller suppliers to improve their environmental performance
Building institutional partnerships
Government authorities:
• Compliance promotion is part of environmental regulators’ job
• Closer collaboration between ministries of economy and environment and business support organisations
• Multi-stakeholder coordination
Business and trade associations:
• Signposting
• Developing marketing and promotional materials
• Sector-specific technical assistance, not just lobbying
• Increase the membership of SMEs
SME Greening Toolkit online
• English:
http://www.oecd.org/env/outreach/Greening-SMEs-policy-toolkit-eng.pdf
• Russian:
http://www.oecd.org/env/outreach/Greening-SMEs-policy-toolkit-rus.pdf