COP29 Side Event Explores How to Empower SMEs in the Western Balkans for a Net-Zero Economy

Amidst COP29's broader goals

With SMEs constituting 99% of businesses in the Western Balkans and employing 75% of the workforce, their involvement in sustainable practices is important to meet both national and global climate objectives.

The event was opened by State Secretary Nenad Vitomirović, Ministry of Ecology, Sustainable Development and Northern Region Development of Montenegro. “Just green transition is key – small and medium-sized enterprises must have access to fair conditions and resources in order to successfully adapt to sustainable business practices, while maintaining their market position.”

The event brought together distinguished speakers, including Nayoka Martinez Bäckström, First Secretary, Environment & Climate Change and Deputy Head, Development Cooperation Section, at the Embassy of Sweden in Dhaka; Dr. Teodora Obradovikj Grncarovska, North Macedonia’s State Counsellor on Climate Change, Ministry of Environment and Physical Planning; Dragana Radulović, Head of Climate Change Mitigation Division, Ministry of Environmental Protection, Serbia; Milena Rmuš, Secretary of Coordinating Board for Energy Efficiency and Environment Protection, Chamber of Economy, Montenegro; and Helvetas’ Elene Tkhlasidze, Deputy Program Manager, RECONOMY, to deliberate on strategies that could address barriers to SME participation in the green economy.

“Sweden’s support to the Western Balkans is built on a reform agenda that aligns economic growth with climate goals, supporting these countries as they move toward a sustainable future. Our approach combines development assistance with initiatives that build climate resilience, promote green technologies, and strengthen local capacity to meet international environmental standards and that boosts trade. Through our partnerships, we aim to bolster the private sector’s role in this transition, particularly by empowering SMEs to drive innovation and green supply chains,” Martinez Bäckström said.

Key themes

Moderated by Matthias Herr, Director for Eastern and Southeastern Europe at Helvetas, the side event addressed several key themes essential to accelerating the green transition for SMEs, including:

• Policy innovations that could create incentives for SMEs, encouraging investment in green technologies and resource-efficient practices.
• Access to affordable climate finance, which remains a core challenge. Discussions highlighted the need for financial mechanisms that could offer flexible loans and grants, making clean technology investments viable for SMEs.
• Cross-border cooperation among Western Balkan countries, which can significantly enhance the capacity of SMEs by pooling resources, sharing best practices, and fostering an environment conducive to sustainable growth.
• The importance of ensuring SMEs have access to the latest clean technologies and capacity-building initiatives to successfully implement low-carbon production methods.

Looking ahead: Focus on new business opportunities for SMEs

In his closing remarks, Herr stressed that we often focus on challenges such as access to finance, regulatory compliance, and knowledge gaps, when considering SMEs in the transition to a more sustainable and just future. “It’s equally important to highlight the economic opportunities of the green transition. The key question is how to scale these successes into transformative change. This requires building business-enabling ecosystems, with roles for both public and private actors.”

“In the Western Balkans, cross-country cooperation is crucial. More joint effort is needed to understand and develop these ecosystems to support SMEs in the green transition, both in the region and beyond,” Herr added.

Learn more

To learn more about the event, visit our COP29 event page.