The pandemic has laid bare the fragility of the small firms integral to the economies of Asia and the Pacific. That the health crisis has so easily turned back economic gains among small and medium-sized enterprises (SMEs) underscores just how critical it is to secure business continuity and preparedness. As such, amid all the talk of a green recovery and building back better, SMEs will need strong access to green financing to make this work. These small enterprises can make a good business case for going green, including to boost resilience, reduce costs, and raise productivity, and thus support climate change mitigation and adaptation. But they need fine-tuned support to do so.

Small and medium-sized enterprises make up more than 96% of all Asian businesses. They provide two out of three private-sector jobs and, in aggregate, account for a large share of global resource consumption, pollution, and waste generation.

However, the pandemic has crippled economic activity, slashed earnings, remittances, and consumption...-