OECD Development Co-operation Working Papers

OECD Development Co-operation Working Papers cover work on understanding aid flows, strengthening aid delivery and improving development policy. Topics include, among others, aid statistics and architecture, aid effectiveness, capacity development, development co-operation systems and management, evaluation of development programmes, as well as the relationship between development and trade, conflict and fragility, environment, gender equality, governance and poverty reduction.


Engaging the Private Sector for Green Growth and Climate Action

An Overview of Development Co-Operation Efforts

The private sector plays an important role in supporting green growth in developing countries. As a result, there is increasing emphasis for development co-operation providers to integrate private sector engagement (PSE) approaches into their programmes on green growth and climate change. This paper provides an overview of activities in this area, estimating that 22% of climate-related development finance supported PSE activities in 2013. It also presents a stock-taking of efforts to: mobilise private climate investment, promote green private sector development and harness skills and knowledge of private actors. The paper highlights some challenges and lessons learned, such as the need for PSE to target a wider range of environmental issues, the importance of investing in integrated approaches to enable the development of pipelines, and the need to align private sector approaches with national contexts. The findings in this paper contribute to the discussion on how development co-operation providers can improve the effectiveness of PSE approaches to promote green growth and climate action, and may be a useful starting point to guide evidence-based policy relevant research.


Keywords: Private sector engagement, green investment, private sector development, development co-operation, green growth, climate finance, development finance, climate change
JEL: O44: Economic Development, Innovation, Technological Change, and Growth / Economic Growth and Aggregate Productivity / Environment and Growth; Q56: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth; O19: Economic Development, Innovation, Technological Change, and Growth / Economic Development / International Linkages to Development; Role of International Organizations; O13: Economic Development, Innovation, Technological Change, and Growth / Economic Development / Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
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