Development Co-operation Report 2014

Mobilising Resources for Sustainable Development

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The Development Co-operation Report (DCR) is a yearly report by the Chair of the Development Assistance Committee (DAC) that addresses important challenges for the international development community and provides practical guidance and recommendations on how to tackle them. Moreover, it reports the profiles and performance of DAC development co-operation providers and presents DAC statistics on official development assistance (ODA) and private resource flows.

The Development Co-operation Report 2014: Mobilising resources for sustainable development is the second in a trilogy (2013-15) focusing on “Global Development Co-operation Post-2015: Managing Interdependence”. The report provides an overview of the sources of finance available to developing countries and proposes recommendations on how to mobilise further resources. It also explores how to mobilise resources to finance the provision of global public goods: for example, to combat climate change, promote peace and security, and create a fair and equal trading system.

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Finding synergies for environment and development finance

Environment and development are inextricably linked: without further policy action, local and global environmental risks threaten to reverse development gains made to date by raising water, food and other resource scarcity risks as well as extreme weather disaster risks. Recognition of the two-way relationship between the environment and development is a foundation for the design of the Sustainable Development Goals, which are to replace the Millennium Development Goals post-2015. Development finance for the environment – and especially climate change – is on the increase, largely driven by international commitments and financial mechanisms under the Rio conventions. Effective responses to global environmental issues necessitate international co-operation and co-ordinated global level action. This chapter outlines this complex financial landscape and the potential for countries to take action to tap the potential synergies among growing new sources of environment finance and traditional sources of development finance. Transitioning to low-carbon, climate-resilient and sustainable development pathways requires a holistic approach to finance and investment, shifting public and private finance from brown to green investments, scaling-up green finance, and integrating environmental considerations into all relevant investments and government activities.This chapter also includes an opinion piece by Manuel Pulgar Vidal, Peru’s Minister of Environment, on making well-financed climate change action central to the post-2015 goals.

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