Enabling SME access to finance for sustainable consumption and production in Asia

Cambodia has one of the most vibrant microfinancing sectors in the world. Yet, financing that exceeds the smaller sums available from microfinance institutions are difficult to obtain especially for small and medium-sized enterprises (SMEs). Investments in business expansion and upgrading are important for the economic growth of the country. At the same time, investments should not only be made in mere expansion but also in efficiency improvements. The benefit of such efficiency improvements is that the economic productivity is increased and the environmental impacts are reduced. In Cambodia, however, the market for finance for such types of investment is still rather small. This study examines opportunities available for SMEs to obtain capital for sustainable consumption and production (SCP) practices, in particular for green innovations, efficiency improvements and pollution abatement. The study also identifies current challenges that restrain access to (green) finance for SMEs.