What are Green SMEs

Green SMEs adopt green processes and/or those producing green goods using green production inputs. A judicious exploitation of techno-commercial opportunities and redevelopment of business models, often neglected by established companies, have been the major hallmarks of green SMEs.

For example, SMEs operating in eco-design, green architecture, renewable energy, energy efficiency and sustainability are spearheading the transition to green economy across a wide range of industries. The path to green economy is achieved by making use of production, technology and management practices of green SMEs. Impact investment platforms allows individuals to invest in environmentally sustainable companies.

Categories of Green Industries

Key Drivers

The key motivations for a green entrepreneur are to exploit the market opportunity and to promote environmental sustainability. A green business help in the implementation of innovative solutions, competes with established markets and creates new market niches. Green entrepreneurs are a role model for one and all as they combine environmental performance with market targets and profit outcomes, thus contributing to the expansion of green markets.

Some of the popular areas in which small green businesses have been historically successful are renewable energy production (solar, wind and biomass), smart metering, building retrofitting, hybrid cars and waste recycling.

As far as established green industries (such as waste management and wastewater treatment) are concerned, large companies tend to dominate, however SMEs and start-ups can make a mark if they can introduce innovative processes and systems. Eco-friendly transformation of existing practices is another attractive pathway for SMEs to participate in the green economy.

The Way Forward

Policy interventions for supporting green SMEs, especially in developing nations, are urgently required to overcome major barriers, including knowledge-sharing, raising environmental awareness, enhancing financial support, supporting skill development and skill formation, improving market access and implementing green taxation.

In recent decades, entrepreneurship in developing world has been increasing at a rapid pace which should be channeled towards addressing water, energy, environment and waste management challenges, thereby converting environmental constraints into business opportunities.

The post Green SMEs: Catalyst for Green Economy first appeared on BioEnergy Consult.

This is definitely the case when it comes to the environment, but is now really the ideal time for a developing a green and sustainable economy?

What is a Green Economy and Why Should the World Care?

Of course, the Covid-19 outbreak came on the back of global environmental protests by organisations such as Extinction Rebellion, which sought to drive radical change and introduce a green economy that would make the UK carbon neutral by 2025.

This was deemed to be incredibly ambitious by some commentators, although the current Conservative government has pledged to create a greener, carbon neutral economy by 2050.

OK, we hear you ask, but what exactly is a green economy? In simple terms, this refers to an economy that aims to actively reduce the environmental risks posed by business and wealth generation and ecological scarcities, while also driving sustainable development without degrading the environmental landscape.

While regulations and multilateral agreements such as the Paris Climate Change Agreements take care of the first element of this, it’s socially responsible investment that drives the second.

The best example of the latter exists in the form of investment in renewable energy technology, which is arguably the single most important dynamic for future infrastructure spending throughout the global community.

Can Covid-19 Trigger Increased Green Technology Spending?

With this in mind, the importance of green economics and increased renewable energy technology spending is clear, while the sharp decline in emissions during the coronavirus outbreak has raised hopes that a green global economy may be on the horizon.

Remember, China was already emerging as the world’s leading investor in renewable technology prior to the outbreak, with a global report also highlighting the continuing decline of oil values as being indicative of a changing global landscape.

Of course, there’s some argument as to whether the record decline in oil prices is triggered primarily by an ongoing imbalance between supply and demand, while the recent fluctuations of the US dollar may also be influential.

Still, there’s no doubt that fossil fuel consumption is set to decline incrementally in the coming years, and this is definitely a factor when appraising the issues faced by oil of late.

Ultimately, these facts hint at a greener and more sustainable future, and it cannot be denied that most developed economies were investing in renewable energy sources at record levels prior to the pandemic.

The question that remains, of course, is to what degree the recent emissions reductions across the globe have been inspired by such changes? The answer is telling, particularly if it turns out the reduction in CO2 emissions over the course of the last two months was solely driven by the widespread lockdown measures that curbed road and air travel.

Regardless, now is clearly the ideal time to push a greener agenda and continue laying the foundations for a more sustainable future.

The post Why Now is a Great Time for Developing a Green Economy first appeared on BioEnergy Consult.