Digital and Green SMEs Project Launch Event

The objective of this event was to officially launch the new project Digital and Green SMEs: Accelerating the Twin Transitions in the Western Balkans. The event was organised on the sidelines of the Dubrovnik Forum and gathered high-level stakeholders from the six Western Balkan economies (WB6), Croatia, and OECD member states.

Building upon its long-standing expertise in undertaking in-depth policy assessments and providing policy advice to the Western Balkan economies, the OECD, with the support of the Croatian government, will support the twin transitions of SMEs in the region.

The event provided an opportunity to:

• Share global and regional insights on accelerating SMEs' green and digital transitions in the Western Balkans,
• Assess current efforts and barriers to developing the green-digital nexus in the Western Balkans,
• Establish regional policy priorities and key reform areas in line with OECD recommendations.

As one of the regions in Europe most affected by air pollution and carbon dependency, the WB6 must ensure that the digital transformation of its business environment is sustainable. Making up for more than 99% of businesses in the region, the SMEs will have an important role to play in twin transitions.

Despite their potential, SMEs in the WB6 often face barriers to accessing strategic resources necessary for engaging in these transitions such as finance, knowledge, skills and technology. In particular:

• Only 35% of SMEs in the region reached at least a basic level of digital intensity (compared to 69% in the EU),
• 36.4% of individuals in WB6 have basic or above level of digital skills (compared to 54% in the EU),
• Only slightly over half of all businesses currently use technologies like smart grids, energy-efficient computing, and renewable energy management systems.
• None of the WB6 economies have introduced systematic monitoring and evaluation for SME greening policies.

An enabling environment for governments to learn from each other and from international good practices will be key to accelerating the twin transitions in the region. This project will provide platforms for peer learning and exchange of good practices, while identifying key challenges hindering the digital and green transitions for SMEs in the Western Balkans.