The outbreak of the COVID-19 pandemic severely impacts societies, economies and business around the world. Micro, small and medium-sized enterprises (MSMEs), as the backbone of Serbian economy, are particularly vulnerable to the economic consequences of the pandemic. Returning to business as usual after the pandemic is not an option in the face of the ongoing climate and biodiversity crises. As a result, the concept of green recovery has emerged, with the aim to “build forward better”. Green economy transition and the financing for recovery from COVID-19 is a major challenge, but also an opportunity for changing unsustainable patterns of resource consumption. This publication offers practical insights into challenges and opportunities associated with Serbian MSMEs green investments. To identify the existing potentials, shortcomings, and needs that MSMEs have in making green investments, UNDP Serbia and EU Delegation performed a qualitative and quantitative research in the period September 2020 - February 2021 with the Serbian MSMEs, commercial banks and international financial institutions (IFIs). The results allow for drawing concrete measures for businesses, domestic financial sector and policy makers in order to scale-up sustainable finance for MSMEs in Serbia while supporting the post COVID-19 recovery of the economy.