Regional Policy Dialogue Meeting “SMEs in a Green Economy”, 09 March 2018, Paris Session 2, "Policy Instruments to Promote Better Enviromental Performance", Eugene Mazur, OECD Environment Directorate

1. SME GREENING TOOLKIT:
POLICY INSTRUMENTS TO PROMOTE
BETTER ENVIRONMENTAL
PERFORMANCE
Eugene Mazur
OECD Environment Directorate

2. • Targeted to Eastern Partnership countries
(Armenia, Azerbaijan, Belarus, Georgia, Moldova
and Ukraine) – comparable with Western Balkans
• Project of the EAP Task Force (now GREEN Action
Task Force), 2014-16
• Based on the experience of OECD countries
• Supported by pilot projects, including SME
surveys, in Armenia, Georgia, Moldova and
Ukraine
Development of the SME Greening
Toolkit

3. • 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
Current use of green practices

4. • 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
Key drivers for green practices

5. • 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
Support for green practices:
the biggest gap

6. • Regulatory tools
• Information-based instruments
– Providing information, advice and guidance
– Recognising green practices
• Economic tools
– Financial incentives
– Market creation
• Institutional partnerships
Government policies for SME greening

7. • Replacing customised permits with general rules
– Low-risk activities, many operators, similar technologies
• Incentives for EMS certification
– Privileges in the permitting process
– Reduced monetary penalties
– Reduced inspection frequency
• Sectoral approach to compliance assurance
– SMEs respond primarily to compliance promotion
messages adapted to their sector
– Partnerships with non-environmental regulators and
trade associations
Making regulatory tools smarter

8. • 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
Providing information, advice and
guidance

9. • 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

10. • 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
Financial incentives

11. • 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
Market creation

12. 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
Building institutional partnerships

13. http://www.oecd.org/env/outreach/Greening-SMEs-
policy-toolkit-eng.pdf