In the fifth issue of the IPA Observer, UNCTAD examines how investment promotion agencies (IPAs), in different locations and circumstances, can contribute to green and sustainable development through innovative approaches tailored to local conditions.
The transition to a green economy, as required by the Sustainable Development Goals (SDGs) and the new global climate change goals, calls for profound transformations in energy, transportation, and most industries. Facing a financing gap of trillions of US dollars in this 'going green' endeavor, many developing country governments have tasked their IPAs with mobilizing green foreign direct investment (FDI) to meet their needs.
The paper examines how IPAs, in different locations and diverse policy and market circumstances, can contribute to the greening of their economies. It features three case studies of IPAs and economic development agencies from the Republic of Korea, South Africa and the United States of America, showcasing their tailor-made approaches to identifying the right opportunity areas and designing strategies taking into account each agency's resource constraints and location-specific conditions.
HIGHLIGHTS
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Government policies and initiatives matter for green sectors.
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IPAs should 'think outside the box' to identify opportunities and ways to use FDI to green their economies.
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IPAs can improve visibility of green investment opportunities through successful pilot projects and the preparation of pipelines of bankable projects.
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Promoting green FDI requires sector knowledge and a focused strategy.
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Partnerships and networks can play a key role in developing investment opportunities in the green economy.
