COP29 panel explores role of SMEs in green economy transition

During the panel discussion, opinions were shared on the benefits of the green transition for SMEs, the responsible approach of businesses toward the environment, climate financing, and the needs of entrepreneurs in creating green businesses, Azernews reports.

The panel on "The Role of SMEs in the Green Economy" was held as part of the 29th session of the Conference of the Parties to the UN Framework Convention on Climate Change (COP29) in Baku. The event, organized by the Small and Medium Business Development Agency (KOBIA/SMBDA) in the "Green Zone," brought together officials, representatives of international organizations, business leaders, and start-ups working on "green economy" projects.

Manuela Traldi, President of the Italy-Azerbaijan Chamber of Commerce; Orkhan Mammadov, Chairman of KOBIA’s Board of Directors; Dima Al-Khatib, Director of the UN South-South Cooperation Office and Head of SESRIC’s Statistical, Economic, and Social Research and Training Center for Islamic Countries; Zehra Zumrüt Selcuk, Director of the International Trade Center; Vanessa Erogbogbo, Head of the Department at the International Trade Center; and Jonathan Ortmans, Founder and President of the Global Entrepreneurship Network, all participated in the panel discussion.

Speakers addressed the role of SMEs in the global economy and employment, their contribution to combating climate change, climate financing, and the benefits of the green transition for businesses. They also discussed the importance of Environmental, Social, and Corporate Governance (ESG) principles in the green transformation of businesses, along with the responsibilities entrepreneurs have toward the environment.

The event highlighted that the green transformation of SMEs can be achieved through global and national cooperation. Participants were invited to join the "Baku Coalition Declaration for Green Climate Transition of SMEs," an initiative put forward by KOBIA. It was noted that the International Trade Center, Brazil’s Micro and Small Enterprise Support Service (SEBRAE), and UN high-level climate change champion Nigar Arpadarai have already expressed their support by signing the declaration.

The panel also discussed the steps needed to support SMEs during their transition to a green economy and increase their environmental responsibility. In addition, Tim Cheston, Senior Research Manager at Harvard University’s "Growth Lab" Center for International Development, presented the global "Green Growth Portal," developed through a collaboration between the Ministry of Economy and Harvard.