Financing for SMEs in Sustainable Global Value Chains

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Increasing access to financing for small and medium enterprises (SMEs) has been a long-standing G20 priority under the GPFI. Strengthening SMEs in global value chains (GVCs) was highlighted as a G20 goal at the Hangzhou Summit in 2016, where G20 leaders reaffirmed their intention to support the development of SMEs and linkages to GVCs. Under its presidency in 2017, Germany has underscored the importance of SME finance in sustainable GVCs by further aligning this agenda with the G20’s Sustainability Development Goals (SDGs), and by emphasizing the need for companies to adhere to basic labor, social and environmental standards.

This report demonstrates how governments, financial institutions and businesses can work together to support financing models that encourage SMEs to upgrade their production processes to comply with sustainability standards in GVCs.