Sustainable finance to drives green transition for Tokyo SMEs

The Tokyo Metropolitan Government has signed an agreement aimed at boosting sustainable finance, addressing economic inequality, and supporting small and medium-sized enterprises (SMEs) in their shift to eco-friendly operations.

Key points of the initiative include:

• • Financial Support for SMEs: The agreement provides practical financial tools to help smaller businesses overcome barriers in accessing funds for green transformation.

• Balanced Local Economy: By equipping SMEs with the necessary support, the government hopes to foster a more equitable and resilient local economy.
• Green Transition: Local officials described the agreement as a vital instrument for stimulating a sustainable shift in business practices.

A government spokesperson explained that by extending sustainable finance to SMEs, the community is investing in a greener future and building a robust business landscape. This targeted approach is seen as a novel solution, especially as most sustainable finance efforts have traditionally focused on larger corporations.

This move is aligning Tokyo City with global trends where financial policies are being used to support sustainable business models and address economic disparities.