More than six million small and medium-sized enterprises (SMEs) around the world are calling on world leaders to take urgent and coordinated action to advance business-led climate action, warning that the path to net zero will stall without their involvement.
In an open letter published ahead of the UN Climate Change Conference (COP30) in Brazil, the SME Climate Hub and its global partners called on governments to adopt consistent policies that enable green finance, simplify climate advice and create meaningful incentives for smaller companies to take action.
SMEs make up 90 percent of global businesses and generate more than half of global GDP. Yet they receive the least support for decarbonization. Despite their critical role in local economies and international supply chains, most small businesses still face significant barriers to climate action. A recent SME Climate Hub survey found that 80 percent of respondents either reported minimal government support or were unaware of existing climate-related incentives.
“Global climate change cannot succeed if SMEs are left behind,” said Pamela Jouven, director of the SME Climate Hub. “Governments have the power to turn climate risks into business opportunities. We call on heads of delegations at COP30 to adopt a practical policy framework that empowers SMEs and recognizes them as key contributors to the transition to net zero.”
The open letter calls on governments to strengthen national frameworks so that SMEs are officially recognized in climate and biodiversity strategies and included in consultation processes. She also advocates for the integration of small businesses into public procurement systems to ensure that they can compete fairly for green contracts and become part of sustainable value chains.
Jouven and her co-signatories argue that governments must do more to demonstrate the economic case for decarbonization, including funding research that quantifies the commercial benefits of net-zero strategies – from energy efficiency savings and improved resilience to risks to access to new markets and customers.
Another important priority is clarity. Many SMEs are held back not by reluctance but by confusion. The letter calls on policymakers to develop consistent, centralized guidance to help small businesses navigate reporting requirements and access credible resources for climate change adaptation and emissions reduction.
Above all, the group emphasizes that progress depends on the development of financial resources. It calls on financial institutions and governments to develop financing models that meet the needs of smaller businesses, including tailored green loans, grants, tax incentives and government-backed guarantees.
“Small businesses are the backbone of economies and global supply chains,” Jouven added. “Empowering them to take climate action will accelerate the implementation of national net zero targets and strengthen the resilience of the entire global economy.”
The publication of the letter comes at a time when climate finance is expected to dominate the agenda at COP30 in Belém, Brazil. With SMEs employing two billion people worldwide, the SME Climate Hub warns that failure to equip them for the green transition would not only jeopardize climate goals, but also risk leaving large parts of the economy unprepared for the low-carbon future.
