Just Transition Policy Mix for MSMEs

This technical report examines the policy mix necessary for micro, small, and medium-sized enterprises (MSMEs) to effectively contribute to a just transition. It outlines the significant barriers MSMEs face, including limited access to finance, technology, and services, which hinder their ability to adopt greener practices. The report reviews MSME policies from 20 countries, highlighting gaps in policy design, particularly the lack of an explicit just transition approach. While many policies include climate provisions, they often overlook critical areas such as social protection and labor rights. The report emphasizes the need for holistic, inclusive, and data-driven policies that align with the ILO Guidelines on Just Transition. It discusses the importance of integrating MSMEs into national climate agendas and the necessity for improved governance and coordination among various ministries. The report concludes by advocating for policies that ensure no one is left behind, particularly informal businesses and vulnerable workers, to maximize the benefits of a just transition.