Financial support

for reducing emissions

To help you to capture the opportunities that decarbonisation can create, this section of the SME Climate Hub is designed to help you find the most appropriate financial support for your business’ journey to net zero.

Financial support is becoming available on improved terms for businesses reducing their emissions – called here ‘discounted lending’ or ‘financial support on preferential terms’.

Climate finance for your business may be available from:

Customers (buyers)

Banks

Grants and other forms of government support

Balance sheet and investors

By clicking on any of the above sources of funding, you will be taken
to information on:

Why funding from this source may be available, including an example
Who to speak with about this source of funding
How to prepare for conversations
What to ask, including a sample conversation

You will find eight stories of businesses that have found financial support and are taking action to decarbonise

Success Stories

Eight stories of businesses that have found financial support and are taking action to decarbonise

‘It’s just part of our DNA’: Numi Organic Tea on Prioritizing the Climate Across its Supply Chain

September 21, 2022

Sustainability has been a priority for California-based Numi Organic Tea since its founding over two decades ago. Today, it continues to lea…

TACOFINO and VANCITY

Advisory services and loan

Tacofino, a restaurant based in British Columbia, Canada, was looking to reduce its emissions when opening a second restaurant in Vancouver.

Designing for the Climate: Architectural Collaborative on their Journey to Net Zero

September 21, 2022

Architectural Collaborative, a small architecture firm in Athens, Georgia, sets ambitious climate goals to mitigate climate change that also…

‘SMEs’ commitment to the climate initiative enhances their competitiveness’, says Sheikh Khalifa

September 23, 2020

GULF TIMES: The SME Climate Hub, co-hosted by the International Chamber of Commerce (ICC), the Exponential Roadmap Initiative, the We Mean B…

Abrir las puertas a un nuevo capitalismo

July 13, 2023

“El consenso científico global, reflejado en el último Informe de Síntesis del IPCC, es contundente sobre la situación climá…

How to choose which financial support is
best for you

Understanding which avenue of financial support is best for you will depend on the specifics of your business, geography and, importantly, what you are looking to invest in.

Be sure to visit the SME Climate Hub’s short course, which includes advice on how best to rank available financial opportunities.

To ensure that financial support for SME decarbonisation continues to improve, over the next year the SME Climate Hub will work with banks and buyers to explore what new forms of finance they might be able to offer. If you would like to be involved with this research and development you can.

Potential sources of financial support – summary table

Stakeholder	Motivation for providing financial support	Examples of what financial support might be available	Examples of who you could speak with to learn if support offered
Customers (buyers)	Climate commitments by companies that include reducing the emissions of their supply chain Improve the resilience of their supply chain to new policies aimed to avert climate change or the negative impacts of climate change Protect supply chain from increased costs associated with carbon, such as ‘dirty’ energy	Improved purchasing terms (eg, days receivable reduced so working capital improves for small business) Access to preferential invoice finance (eg, borrow against outstanding purchase orders to access funds sooner) Advice and mentoring	Procurement representative
Banks	Commitments by banks to support customers to reduce emissions Reduce the risk and carbon footprint of bank lending Strengthen relationships and generate business opportunitie	Working capital solutions, e.g. trade finance Loans for investments that reduce emissions Emission calculators and advice	Relationship manager Sector specialist (eg, transport)
Grants and other forms of government support	Local, national and international objectives for action on climate change	Grants to encourage investment in emissions reduction Discounted lending distributed by a development bank, such as KfW Access to investors or other sources of funds dedicated to climate action	Accountant Local council enterprise officer Local municipality Bank NGOs offering financial support in your area
Balance sheet and investors	Lower operational expenditures Improve the commercial positioning of the business (eg, including alignment with buyers’ climate-related procurement policies) Investors’ climate objectives	Self-funded from balance sheet (cash, asset sales, etc.) New shareholder investment (equity)	Accountant Current shareholders Prospective investors