The document outlines the OECD's SME Greening Toolkit, which provides policy instruments to promote better environmental performance among small and medium enterprises. It was developed based on experiences in OECD countries and reviews of policies in Eastern Partnership countries. The toolkit covers regulatory, information-based, economic, and institutional partnership tools that governments can use to support SME greening. It also discusses current barriers like insufficient support for green practices and offers recommendations such as smarter regulatory approaches, information and guidance programs, incentives, and partnerships to overcome these barriers.

1. SME Greening Toolkit:
Policy instruments to promote better
environmental performance
Eugene Mazur
OECD Environment Directorate

2. 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)

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

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. 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

11. 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

12. 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

13. 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