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Engaging the Private Sector for Green Growth and Climate Action: An Overview of Development Co-Operation Efforts

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  • Naeeda Crishna Morgado
  • Bérénice Lasfargues

Abstract

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.

Suggested Citation

  • Naeeda Crishna Morgado & Bérénice Lasfargues, 2017. "Engaging the Private Sector for Green Growth and Climate Action: An Overview of Development Co-Operation Efforts," OECD Development Co-operation Working Papers 34, OECD Publishing.
    • Handle: RePEc:oec:dcdaaa:34-en
    DOI: 10.1787/85b52daf-en
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    Keywords

    climate change; climate finance; development co-operation; development finance; green growth; green investment; private sector development; Private sector engagement;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • 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

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