The Missing Middle: Barriers to Scaling Climate-focused MSMEs and the Role of Blended Finance

Book cover showing a sunlit cave interior; title The Missing Middle, Malaysia; UNDP logo.

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The Missing Middle: Barriers to Scaling Climate-focused MSMEs and the Role of Blended Finance

June 25, 2026

The Missing Middle: Barriers to Scaling Climate focused MSMEs and the Role of Blended Finance explores why many climate focused micro, small and medium enterprises (MSMEs), despite their important role in supporting Malaysia's low carbon transition, continue to face challenges in accessing the finance needed to grow. Drawing on a survey of 100 climate focused MSMEs and 22 investors, the report identifies key financing barriers and demonstrates how blended finance and other innovative financing approaches can unlock private capital, bridge funding gaps and help scale climate solutions.

To read a web-based synthesis of the report, click here: MyClimate Insights