Environment and development

Green Finance and Investment in Developing Countries

 

To meet the ambitious goals of the 2030 Agenda and the Paris Agreement, we need to significantly shift and scale up green finance and investment. Large-scale private sector engagement and investment in developing countries will be needed to drive their transition to low-carbon and climate-resilient economies. Development finance can play a critical role, catalysing, leveraging and guiding this investment. But to ensure that approaches are effective and that they deliver results, decisions need to be informed by a clear understanding of what works – and what doesn’t.

The OECD Development Assistance Committee (DAC) promotes effective approaches to climate change, environment and development. It convenes diverse development actors to share good practice encourage collaboration, fuel dialogue and advise on norms and standards. Finally, it pilots new approaches and monitors progress to promote mutual learning and underpin meaningful results.


WHAT'S NEW

OECD and the DAC at COP22

DAC peer learning study on private sector engagement launched

OECD launches the Centre on Green Finance and Investment


EVENTS

22 February 2017

Paris

Rountable on “The role of national development banks, multilateral development banks and bilateral development finance institutions in scaling up investment in low-carbon and climate-resilient infrastructure” (invitation only)

9 November 2016

Marrakesh

Enabling policies for green investment and development

5 November 2016

Casablanca

Roundtable Scaling up climate investment through NDBs, MDBs, and DFIs (invitation only)

20 October 2016

 

Paris

Infrastructure Financing for Sustainable Development: Challenges and opportunities in applying blended finance approaches

14-15 October 2016

Tokyo

3rd Green Investment Financing Forum

1 March 2016

Paris

Workshop on Development Co-operation and Private Sector Engagement for Green Growth

3 November 2015

Paris

Joint AFD-IDB-OECD Workshop on Local Financial Institutions (LFIs) and green finance

 

 WORKSTREAMS

Development co-operation and private sector engagement

Key international agreements in 2015 have all recognised the essential role of the private sector in ensuring sustainable social, economic and environmental outcomes. The OECD provides policy guidance on how development co-operation providers can more effectively engage the private sector for development, drawing on peer learning reviews.

Sustainable Development Investment Partnership

The Sustainable Development Investment Partnership (SDIP) is a joint OECD-World Economic Forum venture that aims to mobilise USD 100 billion in financing over 5 years to infrastructure projects in developing countries. The partnership targets potential private investments by improving and enhancing instruments to reduce potential risks.

Blended finance for sustainable development

In the context of Sustainable Development Goals (SDGs), blended finance has a critical role in strategically using development finance and philanthropic fund to mobilise additional capital flows from private and public sources into emerging and frontier markets in order to foster sustainable development.

 

Tracking private climate and green finance

The OECD-DAC is measuring and monitoring non-ODA financial flows, including instruments that engage the private sector, and their mobilisation effect. The OECD-hosted Research Collaborative on Tracking Private Climate Finance brings together partners to test methods and approaches to track private climate finance.  Combined with OECD-DAC work to improve the quality, coverage and use of climate-related development finance to provide a more comprehensive picture of public and private flows.

Country case studies: green investment policy frameworks in developing countries

Making investment and environment policy goals mutually supportive creates both challenges and opportunities for governments and other stakeholders. The OECD analyses key issues of the relationship between investment and environment in development countries – such as Lao PDR and Viet Nam - to help policy makers address these challenges and opportunities.

 


PUBLICATIONS, WORKING PAPERS AND ARTICLES 

Development co-operation policy brief: Private Sector Engagement to Address Climate Change and Promote Green Growth
Private sector engagement for sustainable development: lessons learned from the DAC
Build more, build right: development finance, infrastructure and climate change, OECD Observer No. 304, November 2015
Official development finance for infrastructure: Support by multilateral and bilateral development partners, OECD Development Cooperation Working Papers, No. 25

 

 

 

 

 

 


FURTHER READING

OECD Centre on Green Finance and Investment
DCED Green Growth Working Group
The OECD Social Impact Investment Initiative

 

 

 

 

 

 

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