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Policy Instruments to Promote Better Enviromental Performance

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Policy Instruments to Promote Better Enviromental Performance

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Regional Policy Dialogue Meeting “SMEs in a Green Economy”, 09 March 2018, Paris
Session 2, "Policy Instruments to Promote Better Enviromental Performance", Eugene Mazur, OECD Environment Directorate

Regional Policy Dialogue Meeting “SMEs in a Green Economy”, 09 March 2018, Paris
Session 2, "Policy Instruments to Promote Better Enviromental Performance", Eugene Mazur, OECD Environment Directorate

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Policy Instruments to Promote Better Enviromental Performance

  1. 1. SME GREENING TOOLKIT: POLICY INSTRUMENTS TO PROMOTE BETTER ENVIRONMENTAL PERFORMANCE Eugene Mazur OECD Environment Directorate
  2. 2. • Targeted to Eastern Partnership countries (Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine) – comparable with Western Balkans • Project of the EAP Task Force (now GREEN Action Task Force), 2014-16 • Based on the experience of OECD countries • Supported by pilot projects, including SME surveys, in Armenia, Georgia, Moldova and Ukraine Development of the SME Greening Toolkit
  3. 3. • Willingness to go beyond the requirements of environmental legislation varies from 4% in Armenia to 54% in Moldova • Still, many SMEs already implement resource efficiency measures Current use of green practices
  4. 4. • Growing prices for energy, water and raw materials • Rising awareness that greening may lead to a competitive advantage • Regulatory and financial incentives are very weak Key drivers for green practices
  5. 5. • Ministries of economy are taking the lead but efforts insufficient • Environment ministries provide regulatory info but don’t reach SMEs • Donor-sponsored initiatives unsustainable in the long term Support for green practices: the biggest gap
  6. 6. • Regulatory tools • Information-based instruments – Providing information, advice and guidance – Recognising green practices • Economic tools – Financial incentives – Market creation • Institutional partnerships Government policies for SME greening
  7. 7. • Replacing customised permits with general rules – Low-risk activities, many operators, similar technologies • Incentives for EMS certification – Privileges in the permitting process – Reduced monetary penalties – Reduced inspection frequency • Sectoral approach to compliance assurance – SMEs respond primarily to compliance promotion messages adapted to their sector – Partnerships with non-environmental regulators and trade associations Making regulatory tools smarter
  8. 8. • Mix traditional and advanced communication tools – “Regulatory watch”: e-mail, magazines, newsletters – Web-based guidance – Direct contacts between inspectors and operators • Make the business case for green practices – Emphasise efficiency gains and market opportunities • Offer concise and clear guidance • Distinguish legal requirements from good practice Providing information, advice and guidance
  9. 9. • Simplified environmental management systems – Multi-tier EMS: focus on simple, accessible improvements in management practices • Sector-specific green certifications • Eco-labels • Environmental recognition awards Recognising green practices
  10. 10. • Tax privileges – Accelerated amortisation – Reduced property or corporate taxes • Soft loans – Encourage banks and insurance companies to provide incentives for green practices • Subsidies for consultancy services – Initial public funding is necessary – Gradual transition to fee-based services Financial incentives
  11. 11. • Green public procurement – environmental criteria of procurement decisions – Compliance with environmental requirements – Green certification – Eco-labels • Supply chain management – encourage large firms to form partnerships with smaller suppliers to improve their environmental performance Market creation
  12. 12. Government authorities: • Compliance promotion is part of environmental regulators’ job • Closer collaboration between ministries of economy and environment and business support organisations • Multi-stakeholder coordination Business and trade associations: • Signposting • Developing marketing and promotional materials • Sector-specific technical assistance, not just lobbying • Increase the membership of SMEs Building institutional partnerships
  13. 13. http://www.oecd.org/env/outreach/Greening-SMEs- policy-toolkit-eng.pdf

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