DTI to help integrate green strategies to MSME sector

CEBU, Philippines - Seeing how slow and reluctant the micro, small and medium enterprises (MSMEs) in adopting efficiency measures to improve their production systems and practices, the trade department has incorporated the green MSME agenda in its department to facilitate the integration of green growth strategies for the sector.

This is according to Department of Trade and Industry (DTI) provincial director Nelia Navarro during the Eko Fest Entrepreneurship Conference that was held at Radisson Blu Hotel. She is also the chairperson of the committee on entrepreneurship for this year’s Cebu Business Month.

Navarro expressed concern for the MSME sector that is increasingly exposed to competitive pressure as well as to the negative effects attributed to climate change. MSMEs account a major contribution to the economy and employment in the country.

Based in the World Risk Report 2011, the Philippines was listed as the 3rd most affected country by the climate change in the world.

“Environmental stress such as pollution of water, air, soil, deforestation among others, erodes the very basis of economic development. The MSME sector exerts considerable pressure on the environment because of its sheer number. Ultimately, the long-term competitiveness of these MSMEs will be greatly affected,” she said.

However, Navarro acknowledged the reluctance and lack of enthusiasm of these small-scale businesses to integrate greening strategies into their policies, processes and operations.

She cited that this could be attributed to the lack of awareness of MSMEs on the environmental impact and environmental laws that affect them.

If the sector is aware, she added, it lacks the in-house expertise to identify and even properly implement environmental mitigating and adaptation technologies.

She also said that these businesses lack the resources to invest in these technologies given the difficulty to access loans and credit due to the stiff collateral requirements set by financial institutions.

“It also does not help that MSMEs has short-term economic perspective and is not inclined to look at positively to the long-term payback period of investments in environmental technologies,” Navarro continued.

In order to enable the integration of green growth strategies for the sector, the green MSME agenda has been incorporated in the MSME Development Plan, Philippine Development Plan and in the National Climate Change Action Plan. 

Navarro cited that the key aspects of these plans include the climate smart industries, eco towns, adaptive mitigation for competitiveness enhancement, and job creation-strategies that would achieve an inclusive sustainable development, otherwise known as green economic development.

“Indeed, sustainability is today’s trend as we face climate change and the gradual depletion of the world’s resources because of the insatiable material demands of civilization,” she said.

Navarro also extended gratitude to the European Union and the Federal Ministry of European Cooperation and Development for the SWITCH-Asia project, the SMEs for Environment Accountability, Responsibility, and Transparency (SMART-Cebu) program.

The project aims to increase the competitiveness of SMEs and contribute to a cleaner environment of Cebu.  It is co-funded by the European Union and the German Federal Ministry for Economic Cooperation and Development.

Now that is implemented in Cebu, twenty five companies in the home and lifestyle industries successfully learned to align to current market realities through sustainable clean production (SCP) principles.

“SMART-Cebu also assisted them with gain access to a nicheof high-end design, quality and a “green” image market in Europe,” Navarro said. /JOB (FREEMAN)