Macroscope

Net zero is out of reach unless we help SMEs decarbonise too

SMEs, a major contributor of industrial emissions, are very much left out of the global climate strategy

We need to start treating them like small countries and applying ‘loss and damage’-style solutions

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A demonstration at the COP27 climate submit on November 12 in Sharm el-Sheikh, Egypt. The global debate on corporate emissions has often focused on big companies, especially fossil fuel producers, neglecting SMEs. Photo: AP

Chee Yik-wai is a Malaysia-based intercultural specialist, a serial social entreprenur who co-founded Crowdsukan focusing on sport for good.

Published: 8:30pm, 7 Dec 2022

The COP27 UN climate change conference in the Egyptian resort town of Sharm el-Sheikh ended with a victory of sorts for developing countries with the “loss and damage” deal. But the role of small and medium-sized enterprises in making the critical transformation to net zero is still not getting the attention it deserves.

The global debate on corporate emissions has often focused on big companies, especially fossil fuel producers, when SMEs are a major culprit too. As a group, SMEs are responsible for 60-70 per cent of industrial pollution in Europe alone, according to the Organization for Economic Cooperation and Development.

Reaching net zero is impossible without a strong global SME decarbonisation strategy, especially when they are an integral part of global supply chains. Yet discussions on the role of SMEs in decarbonisation remain largely limited to the local level in many countries, and the perspectives of SMEs and entrepreneurs are not considered in global climate policies.