Inclusive Green Growth Workshop Summary of discussion

The workshop was hosted by the Russian Government in Moscow, 7 July. This workshop was prepared by OECD and the other IO’s (AfDB, UN, World Bank) and the co-facilitators of the green growth pillar Many G20 members attended the workshop, as well as ten developing country representatives; Cambodia, Dominican Republic, Ethiopia, Kenya, Moldova, Mozambique, Philippines, Rwanda, Vietnam, and the Minister of Energy in Sierra Leone. The representatives from developing countries presented many useful contributions, adding value to the discussions.

Discussion highlighted some common starting points and key questions: Emphasis on “inclusive”, poverty reduction and quality of growth. Country examples that this is possible e.g. from Sierra Leone and Cambodia Sharing experience on “how to do things differently” and choices about “how to develop” in a forward looking way IGG Toolkit is a useful and living document to build on country experience How does IGG fit into national development planning? (Examples raised by Ethiopia, Rwanda, Mozambique) Recognition that a mix of public and ODA financing is needed to leverage private finance to implement green growth related investments. What are the most appropriate financial vehicles and de-risking instruments to mobilize institutional investors for IGG? Key challenges include: o Lack of capacity for domestic policy reform and processes o Addressing structural change and cluster industries (e.g. Sierra Leone, Vietnam) o Risk perceptions, policy predictability and access to finance (Vietnam, Rwanda, Philippines, Moldova) o Delivering green jobs and human resource skills development (e.g. Mozambique) Inclusive Green Growth Workshop Summary of discussion

Some common parts of country efforts to advance inclusive green growth: Leadership is needed, combined with bottom-up engagement, to customise strategies and policies to local needs. There is no “one size fits all” Essential to mainstream green growth into development planning and to raise awareness through cross-Ministry efforts and engagement with regions, localities and private sector Innovative financial approaches that can be scaled up and/or replicated e.g. budgetary commitments (Ethiopia), use of remittances (Moldova), mix of donor, domestic and private finance (Philippines, Moldova). Some key tools presented by LIC representatives Greening national development plans and public budgets, use of SEA, land use planning (e.g. Dominican Republic, Ethiopia, Cambodia, Rwanda) Natural resource accounting and valuation (e.g. Mozambique, Dominican Republic, Cambodia, Rwanda) Greening domestic tax systems, use of market finance (e.g. CDM, Vietnam, Ethiopia). Policies and measures to mobilise investment, e.g. South African SRI from pension funds in clean energy infrastructure, FITs in Kenya. Assessing labour/employment impacts and targeting skills and human capacity development (e.g. Mozambique, Sierra Leone, Dominican Republic) Session IV – Looking Ahead: The way forward on Inclusive Green Growth in the G20

What can the G20 do? Timely support for: Country level planning, coordination and mainstreaming of green growth, including enhanced participation of the private sector and other key stakeholders. Regional, South-South and triangular co-operation and lesson sharing to develop capacity on green growth Financing for green growth, including international public development finance but also domestic public and private sources, support for domestic funds created by developing countries Engaging the institutional investors community to scale up green investment by recalibrating financial returns to incorporate development benefits Green research co-operation and technology transfer and increased knowledge sharing and access to information. ­­­­ Session IV – Looking Ahead: The way forward on Inclusive Green Growth in the G20