Sustainability Meets Growth 2025

Finance While funding is not the sole support mechanism needed, it is emerging as a key priority to overcome the capital expenditure (capex) barrier that challenges many SMEs and mid-sized players from the outset. Grants and tax breaks are traditional examples of funding initiatives but are not the only types of financial support that can have an impact. Governments can offer “matching” grants, where the funding amount corresponds to the cost savings identified through efficiency projects undertaken by SMEs and mid-sized companies. This approach encourages accountability and amplifies impact. The Energy Trust of Oregon17 exemplifies such an approach in its commercial incentives programme. Another area of support needed is in applications for funding. Of the companies surveyed for this paper, 69% have not obtained external funding, primarily due to unsuccessful efforts in searching for and applying for it. Governments can also provide financial assistance in the form of loan application support specialists. Loan application specialists with sustainability expertise can help translate efficiency project data into formats that align with banking requirements, thereby increasing the likelihood of loan approval. The Green Industry Platform demonstrated the effectiveness of such support with a Kenyan tea leaf co-operative. Without loan application support, the co-op had only a development bank willing to fund a part of the project. With the application support, the co-op received approval from three traditional banks.18 Sustainability Meets Growth: A Roadmap for SMEs and Mid-Sized Manufacturers 19