SMEs are the backbone of the Greek economy—and key to reaching national climate goals. A new transatlantic report by CGI Greece and Perry World House highlights the paradox they face and proposes a hybrid EU–U.S. path forward.
Empowering SMEs for Climate Action – Transatlantic Lessons for Greece
Climate Governance Initiative Greece is proud to share the results of our collaboration with the University of Pennsylvania & Perry World House, resulting in a landmark report offering a transatlantic perspective on climate governance. The study compares EU and U.S. approaches, while proposing a hybrid path tailored to Greece.
Why This Matters
Small and Medium Enterprises (SMEs) are not only the backbone of the Greek economy—representing 99% of all businesses—but also critical actors in achieving national climate goals. Their ability to adapt and innovate will determine Greece’s pace toward a low-carbon future.
A Paradox for SMEs
The report reveals a striking imbalance across Europe:
- 93% of SMEs have adopted at least one resource-efficiency measure
- Yet, only 1 in 4 has a formal climate strategy
This gap underscores the risk of “greenwashing-by-necessity” as companies struggle to meet rising expectations without adequate tools, financing, or capacity.
Key Insights for Greece
- SMEs increasingly face indirect compliance pressures—especially through Scope 3 requirements in global value chains.
- U.S.-style incentives demonstrate that climate action can be achieved with minimal upfront costs.
- The EU’s regulatory path offers scalable and proportionate solutions—but access to green finance and capacity-building remain critical bottlenecks.
Importantly, the EU’s “Stop the Clock” clause under the Omnibus Directive should not be seen as an exemption, but as a strategic window for SME adaptation—a chance to:
✅ Map climate risks
✅ Invest in infrastructure and training
✅ Integrate into low-carbon supply chains
Policy Proposals from the Report
The report calls for a hybrid EU–U.S. model, supported by:
- Decentralized support mechanisms
- A central Greek-language platform with practical tools for SMEs
- Coordinated policies that combine incentives with proportionate regulation
For Greece to lead on climate action, SMEs must be empowered to lead.
Acknowledgments
This project was made possible thanks to the dedication of the Perry World House Student Fellows — Florence Onyiuke, Euel Kebebew, Inaya Zaman, and Michal Wyrebkowski — and the guidance of Lauren Esposito Anderson (Director of Programs, Perry World House), Melissa M. Lee (Klein Family Presidential Associate Professor of Political Science), and John Macri (Student Programs Coordinator).
The full report is available for download here .
