This report provides an overview of the main trends in financial flows to developing countries (official flows and private investments) and their environmental dimensions. It then examines the conditions attached to these flows in order to ensure that the environmental performance of the projects to which they are destined is taken into account ("supply side"). Next, it provides an overview of the domestic policy context ("demand side"), and the necessary conditions to ensure better environmental performance of investments. The report finishes with a summary of the main findings and suggestions of further steps to strengthen linkages between investment, development and environment.

The annex describes the results of analysis on the relationship between environmental management and performance and structural characteristics of facilities which are typically associated with multinational enterprises (MNEs).