The OECD has recently completed the project on Green Business Models and published the report “Why New Business Models Matter for Green Growth“.

 This report explores the potential contribution of new business models to green growth and examines how successful models can be scaled up and accelerated through appropriate policy action. It draws on 55 case studies from 14 OECD countries, combined with broader OECD research.

Close the Loop was OECD’s project coordinator for Greece which participated in the project with 6 leading eco-innovations, including the energy management and gamification business model of Close the Loop’s partner Intelen.

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New business models can make an important contribution to the transition to green growth. While some
new business models involve large firms, others are small start-up firms that seek to exploit technological
or commercial opportunities that have been neglected ornot yet explored by more established firms. New
firms tend to engage in more radical innovation than existing firms, and scaling up new business models
can therefore help reduce environmental pollution, optimise the use of natural resources, increase
productivity and energy efficiency, and provide a new source of economic growth. Although the market for
green goods and services is growing, the development of new business models is affected by a range of
barriers, many of which can be addressed by well-designed policies. Key areas for policy action include:
  • Strengthening market demand for green products and services by providing long-term and stable incentives for firms to internalise the environment and natural resources in their decision making, including through a well-designed regulatory framework and supportive demand-side policies.
  • Enhancing access to financing, including risk capital, by supporting market development for risk financing and the development of entrepreneurial skills.
  • Removing perverse subsidies support for existing business models and incumbent firms, such as energy subsidies; reducing the barriers to entry, exit and growth of new firms and business models; and improving the regulatory environment for start-up firms and new business models.
  • Reducing the costs of intellectual property rights, in particular for small and start-up firms.
  • Supporting skills development, including for existing workers.
  • Supporting R&D and innovation, including testing, demonstration and verification.
  • Improving governance, to ensure that nationaland regional policies for green growth are well aligned.