BAKU, Azerbaijan, July 11. The involvement of small and medium-sized enterprises (SMEs) in processes to mitigate the consequences and current situation of climate change was discussed during the virtual conference titled "Empowering SMEs for Global Climate Action: Innovation, Finance, and Policy Partnerships" organized by the US-Azerbaijan Chamber of Commerce, or USACC (headquartered in Washington, D.C., operating since 1995), Trend reports.
Speaking at the event, the USACC Executive Director Natig Bakhishov noted that SMEs account for nine percent of enterprises globally, but in some countries, this sector contributes up to 80 percent of GDP.
"The role of SMEs is invaluable, and small and medium-sized businesses are drivers of economic processes, and under the new conditions, they are key to steps to mitigate climate change," said Bakhishov.
According to Mahmud Seyidov from the Azerbaijani embassy in the US, the role of SMEs is particularly important in Azerbaijan due to the active development of renewable energy projects, which can thrive with the cooperation of the public and private sectors and the public-private partnership (PPP) mechanism.
Speaking at the webinar, UN Climate Change High-Level Champion for COP29 Nigar Arpadarai said that involving SMEs in climate action processes is a priority for the COP29 presidency team.
"Significant investments are needed for effective global climate action, and SMEs must be involved in this process. Small and medium-sized enterprises can be the key to the energy transition in Azerbaijan. Organizations overseeing cooperation with SMEs, such as KOBIA (Small and Medium Business Development Agency of Azerbaijan), AZPROMO, and the Entrepreneurs' Confederation, aim to help SMEs adapt to the requirements related to implementing the climate agenda," Arpadarai said.
Vice President for Global Business Development at the US Export-Import Bank (US Eximbank) Benjamin Todd, who participated in the virtual event, discussed Eximbank's interaction with SMEs in financing 'green' projects globally and prospects in Azerbaijan.
"Backed by financial institutions like the US Export-Import Bank (EXIM) and private commercial banks, there is significant potential to expand the global export of green technologies and stimulate meaningful climate action. SMEs play a crucial role due to their flexibility, innovation, and potential," Todd said.
The panel session "Managing Climate Policy: Views of the US Government on Innovation, Finance, and International Cooperation" featured speech of Deputy Assistant Secretary of the US Department of Commerce David De Falco.
"COP29 will have a positive effect on the development of US-Azerbaijan relations across a wide range of interactions, including joint SME projects. An important goal is to open up the use of modern technological solutions for SMEs to timely follow 'green' processes globally," De Falco emphasized.
Other speakers at the event included advisor to the Office of the Special Presidential Envoy for Climate, representative of the US State Department Annie Hills, Senior Vice President for International Factoring at Rosenthal & Rosenthal Peter Clement, CEO of Azerbaijan's Chameleon Group LLC Elmar Baghirov, and Founder and Director of HSSE & Business Consulting LLC (US) Giulia Aliyeva.
Concluding the conference, participants noted the effectiveness of nearly 30 years of work by USACC and the continuation of cooperation, including on issues of joint climate change prevention.