Improving incentive frameworks and capacity for green, climate-related investments in Eastern Europe, Caucasus and Central Asia
As of: August 2019
Objective and activities
Within the project, OECD works with selected partners in Eastern Europe, Caucasus and Central Asia to promote investment-enhancing policy reforms for climate-friendly economic activities and infrastructure planning, both public and private. This includes national-level and cross-country analysis of investment, enterprise and environmental strategies to support political decision making. A focus is placed on small and medium-sized enterprises (SMEs) and the private banking sector. Thereby capacities to access international mechanisms of climate finance will be increased. Work at the national level will feed into regional policy dialogue, facilitated by OECD, to share experiences, disseminate best practices, and replicate results.
State of implementation/results
- A survey of 410 SMEs (in the Poltava region) covering the sectors agriculture, fisheries and forestry, mining and quarrying, food and non-food manufacturing, construction, and hotels and restaurants was conducted. Based on the results a guidance on simplified environmental regulation for SMEs will be developed.
- A follow up stakeholder workshop was offered, where stakeholders discussed the draft pilot project report containing policy recommendations, guidance on several simplified regulatory regimes suitable for installations with low environmental impact, as well as general binding rules and registration. In addition, specific recommendations were presented for environmental regulation of small combustion installations and petrol storage and handling facilities.
- The project started to analyze the conditions that enable commercial banks to support investments in green projects and the mode of access to private finance for green investments on the side of SMEs. Georgia:
- Launch of the project “Promoting better environmental performance of small and medium-sized enterprises in Georgia” with the Ministry of Environment and Natural Resources Protection as key counterpart.
- A survey of 400 SMEs covering the same activity sectors as in Ukraine was conducted, showing that only approximately 13% of SMEs have an environmental permit or license but must comply with general environmental protection requirements, while the majority of enterprises (74%) complies with national environmental legislation, but does not wish to go beyond these requirements. In response to the survey a further in-depth study on the adaptation of existing SME support tools, as they are envisaged in a SME Development Strategy, is being requested.
- Key policy recommendations had been developed in view of a third stakeholder workshop in February 2016. Regional:
- As part of the project, green public investment programmes will be designed in line with international good practices; training sessions on medium-term environmental investment planning and management for environmental authorities will be conducted; a summary report will be prepared; and the contribution to and participation in an international conference on access to finance for green investments being organized by the OECD will be offered.