Catalyzing Investment for Green Growth : The Role of Business Environment and Investment Climate Policy in Environmentally Sustainable Private Sector Development
Developing countries today confront an unprecedented combination of challenges of the need for inclusive growth, worsening environmental degradation, and the impacts of the Coronavirus (COVID-19) pandemic. A successful response must be founded on t...
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| Language: | English |
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World Bank, Washington, DC
2021
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| Online Access: | http://documents.worldbank.org/curated/en/464811610960949219/Catalyzing-Investment-for-Green-Growth-The-Role-of-Business-Environment-and-Investment-Climate-Policy-in-Environmentally-Sustainable-Private-Sector-Development http://hdl.handle.net/10986/35056 |
| Summary: | Developing countries today confront an
unprecedented combination of challenges of the need for
inclusive growth, worsening environmental degradation, and
the impacts of the Coronavirus (COVID-19) pandemic. A
successful response must be founded on the principles of
sustainable development, circular economic systems, and
green growth. By transforming private sector activity
through sustainable investment, countries can accelerate
recovery and stimulate growth. Achieving this transformation
will require robust environmental policies to address
externalities and to drive sustainable investment. This
paper considers the unique role that business environment
and investment climate policy can play in meeting these
goals and transitioning to green private sector growth in
developing countries. The paper is organized around three
key questions. First, how does a country’s investment
climate help enable green economic growth? Second, how can
efforts to improve the domestic business environment through
business regulation reform take account of the need for
environmental protection and sustainability? Third, how can
policies related to foreign direct investment (FDI) be
adjusted to play a stronger role in promoting sustainable
sectors and business practices? Together, the answers to
these questions establish key concepts and principles that
can make investment climate reform an effective and integral
component of a green growth strategy. |
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