SEED - Financing and capacity building for micro and small climate-smart enterprises

Sustainable Entrepreneurship

Small and medium-sized enterprises (SMEs) make a significant contribution to the global economy, create jobs and offer disadvantaged actors a sustainable way out of poverty. In addition, they have great potential to contribute to climate change mitigation and adaptation.

As hosting partner of SEED, adelphi carries out this project financed by the International Climate Initiative of the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU). The project combines the comprehensive and systematic strengthening of capacities and capabilities for socially inclusive and climate-friendly SMEs with the promotion of favourable financial and political conditions. Thus the project helps small and growing climate-smart enterprises to bridge the missing middle finance gap - so called because these enterprises are too big for microfinance on the one hand, too small and risky for banks and private equity firms on the other hand. It promotes innovative market-oriented solutions that contribute to a low-carbon, green and socially inclusive economy in the target countries, thus supporting the implementation of the Paris Agreement and the 2030 Agenda for Sustainable Development.

Between 2013 and 2022, outstanding SMEs contributing to climate change mitigation or adaptation from the target countries Colombia, India, Vietnam, Tanzania and Uganda and from 2019 onwards also from Ghana, South Africa, Thailand and Indonesia will be awarded with the SEED Low Carbon Award. The winners are supported by the SEED network, receive short-term advice on their business development, and are brought together with potential partners and sponsors. Furthermore, adelphi works with service providers and financiers to integrate the needs of inclusive and climate-friendly SMEs into funding and financial instruments. Through dialogue processes and extensive advocacy and networking, the importance of these SMEs in achieving NDCs and SDGs is presented vis-à-vis policymakers and key actors.

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