Micro, small and medium-sized enterprises (MSMEs) are the backbone of economies around the world. They represent around 90% of firms, create60 to 70% of jobs, and contribute to 50% of global gross domestic product.
Agile and deeply rooted in their communities, they bring knowledge and networks that make them essential allies in climate action. They also account collectively for 40 to 60% of greenhouse gas emissions—meaning that the world cannot stay within the Paris Agreement’s temperature limits
without them. The new round of Nationally Determined Contributions (NDCs) under the Paris Agreement—NDCs 3.0 provides an opportunity to drive a full-fledged economic transformation that addresses our climate crisis effectively. But most national climate plans do not meaningfully include MSMEs in their
commitments. For NDCs 3.0 to fully deliver, countries must build a far stronger bridge between economic activity and environmental action, and that means MSMEs must be part of the conversation. With more of these firms increasingly taking part in international trade, NDCs 3.0 must also factor in the role of trade policy and practice