The European Union's financial framework has inadvertently placed significant bureaucratic burdens on European small and medium-sized enterprises (SMEs) without providing notable financial benefits, a comprehensive study by the Union of European Chambers of Commerce and Industry (Eurochambers) and SMEunited found. This study was carried out on behalf of the European Commission's platform for sustainable financing.

According to a statement by KEVE, a member of Eurochambers, the research was based on feedback from 2,141 companies across 25 EU member states. While nearly 60% of the companies surveyed made investments in sustainability over the past two years, SMEs struggle to access sustainable financing options. The study highlighted that only 35% of these investments were funded by external sources, which is insufficient for the large-scale investments required for transformation.

The findings also suggested a stark contrast to larger companies, which seem to secure sustainable funding from capital markets with relative ease. Commenting on the results, Vladimír Dlouhý, President of Eurochambers, expressed that while SMEs are keen to ramp up their sustainability efforts, they face disproportionate challenges in doing so.

He further emphasized the need for the sustainable financing framework to bridge the gap between SMEs' incentives and means when it comes to the green transition. A pressing concern, Dlouhý added, is the indirect shifting of reporting obligations from larger corporations and banks onto SMEs. Such obligations, initially intended for bigger entities, often burden SMEs, whether they are bank clients or suppliers in larger value chains. Without the infrastructure and capacity to manage these overarching disclosure requirements, SMEs are at a disadvantage.

Furthermore, Dlouhý highlighted that the situation is exacerbated by the fact that accessing public grants or subsidies for sustainable projects is cumbersome. Often, these are tied to intricate application processes, making it harder for SMEs to leverage them effectively.