Document Type

Article

Publication Date

Fall 9-25-2025

Abstract

The first GST concluded that the current rate of climate action, the terms of the Paris Agreement will not be achieved and will only remain achievable with a significant increase in action (UNFCCC, 2023). Yet despite this, policy pertaining to the GHG emissions and climate action of SMEs remains limited therefore leading to their underutilisation with GST follow up actions. Furthermore, SME are particularly vulnerable to climate hazard related costs, which present significant risk to global economic stability due to their contribution to global GDP and crucial role in supply chains. This paper identifies that low SME engagement in climate action is due to a lack of financial capacity, data, knowledge and expertise along with existing policies which have engaged SMEs in climate action. Following this, policy of: (1) inaction, (2) access to climate action funding for SMEs engaged in 'Race to Zero, (3) National SME Emissions Standards, and (4) Capacity Building for SMEs. It is this paper's recommendation that Regional SME Emission Standards with interlinked specific capacity building should be created and supported by the creation of a managing body for these standards within the UNFCCC.

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