Orkhan Mammadov: Problems of SMEs in green transformation are universal

There is significant potential for widespread adoption of green policies and strategies in the SME sector, Chairman of the Small and Medium Business Development Agency (SMBDA) under the Ministry of Economy of Azerbaijan Orkhan Mammadov told a conference themed “The Role of Small and Medium Businesses in the Green Economy” organized by SMBDA in Baku.

According to Mammadov, analyses have been conducted in collaboration with international development organizations, revealing three main groups of challenges faced by SMEs in enhancing their role in the green economy: “These include lack of information and knowledge, low potential and skills, and limited access to financial resources.”

Mammadov noted that efforts are ongoing to implement the green concept, with the ecological, social, and governance (ESG) standards subgroup under the Commission on Business Environment and International Ratings working on developing a green business standard. SMBDA has also joined the UN Global Compact since February this year.

“The Memorandum of Understanding with ACWA Power aims to support SMEs’ transition to the ‘green economy’ through joint cooperation measures,” the SMBDA chairman said.

Mammadov emphasized that the challenges faced by SMEs in green transformation are universal, and proposed a global initiative reflected in the Baku Coalition Declaration for the Green Climate Transition of SMEs:

“The declaration consists of a Preamble and an Operational Solution section, addressing the importance of SMEs in the global economy, their significance in preventing environmental pollution, and the necessity of mobilizing global resources. It also proposes the establishment of Green SME Resource Centers to ensure global networking and an institutional coordination platform.”

Mammadov expressed readiness to conduct a promotion campaign and coordination efforts under the Ministry of Economy for the international adoption of the Baku Coalition Declaration and the involvement of more stakeholders in the SME sector. He also expressed the desire to present the declaration to the COP29 Presidency for support within the framework of COP29.