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Unlocking business dynamism to promote green (sustainable and inclusive) growth: learning from innovation in emerging economies

The Overseas Development Institute, working alongside Gesellschaft für Internationale Zusammenarbeit and the International Poverty Reduction Center in China, have been developing a collaborative, research, policy engagement and knowledge transfer exchange programme. The aim is to provide stakeholders with firm evidence of ways to promote effective investment in green growth. This working paper presents the findings of the programme’s scoping study, conducted in India and China, which sought to identify and better understand drivers for green growth.

The paper begins by outlining the tenets of the green growth paradigm, defining the concept of green growth as being both sustainable and inclusive. It then presents the findings of the scoping study and looks at the evolution of green growth thinking. The authors also explore the potential for sharing lessons learnt, both between India and China and with other countries, and set out a proposal for identifying policy and initiative case studies for further analysis and impact assessment.

The scoping study consisted of:

  • a review of the policy evolution in China and India, including the main drivers/constraints to reform
  • a review of current policies and private sector initiatives, and identification of those with the potential to achieve green growth
  • consultation with experts and stakeholders, both public and private
  • workshops in both countries to identify potential policy and initiative case studies for future analysis.

The study shows that both countries face challenges in ensuring green growth, but they recognise the importance of this goal and are innovating with policies and mechanisms to incentivise such growth. Each are tackling many of the same problems in different ways, offering potential for comparative studies. Overall, the authors make clear that many valuable lessons can be learnt from the present and future policy environment, and propose around ten case studies per country for further analysis.