The Mitigating Effect, Mechanism of Action, and Optimization Path of Green Finance on Financing Constraints of Small and Medium-Sized Enterprises

DOI

10.2991/978-94-6239-801-6_93How to use a DOI?

Keywords

Green Finance; Small and Medium-Sized Enterprises (SMEs); Financing Constraints; Green Credit; Green Inclusive Finance

Abstract

In the context of “dual carbon” goals and high-quality economic development, green finance has become a key tool to support the low-carbon transformation of the real economy. However, small and medium-sized enterprises, which have long been constrained by information opacity and insufficient collateral, face further exacerbation of their “difficult, expensive, and slow financing” issues due to the high investment required for green transformation. Based on existing literature, this paper systematically reviews the mechanisms, practical dilemmas, and optimization paths of green finance in alleviating financing constraints for SMEs. The study finds that green finance can improve SMEs’ financing constraints through four major mechanisms: direct alleviation mechanism, indirect transmission mechanism, synergistic enhancement mechanism, and constraint regulation mechanism. At the same time, green finance also optimizes capital allocation and reduces misallocation of financial resources through environmental access, information disclosure, and green-washing governance mechanisms. However, current green finance services for SMEs still face issues such as insufficient standard system adaptation, homogenization of financial products, weak corporate environmental information disclosure, imperfect risk compensation mechanisms, and uneven development across regions and industries. In the future, it is necessary to promote the deep integration of green finance with inclusive finance, digital finance, fiscal policy, and environmental regulation to build a green finance service system for SMEs that covers a wide range, has controllable risks, and provides effective incentives.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Sicong Jiang
PY  - 2026
DA  - 2026/10/23
TI  - The Mitigating Effect, Mechanism of Action, and Optimization Path of Green Finance on Financing Constraints of Small and Medium-Sized Enterprises
BT  - Proceedings of the 2026 2nd International Conference on Financial Innovation and Marketing Management (FIMM 2026)
PB  - Atlantis Press
SP  - 889
EP  - 897
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-801-6_93
DO  - 10.2991/978-94-6239-801-6_93
ID  - Jiang2026
ER  -