Inclusive Green Growth Workshop Summary of discussion

1. Inclusive Green Growth WorkshopSummary of discussion

2. 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.

3. Inclusive Green Growth WorkshopSummary of discussion 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: • Lack of capacity for domestic policy reform and processes • Addressing structural change and cluster industries (e.g. Sierra Leone, Vietnam) • Risk perceptions, policy predictability and access to finance (Vietnam, Rwanda, Philippines, Moldova) • Delivering green jobs and human resource skills development (e.g. Mozambique)

4. Session IV – Looking Ahead: The way forward on Inclusive Green Growth in the G20 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)

5. 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. ­­­­