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ENHANCING
CAPACITY
A basis for greening development
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Message from the OECD Secretary-General

Sound environmental management is fundamental for green growth, sustainable development and
poverty reduction. This core message from the 1992 Rio Earth Summit remains all the more valid
today as we prepare for Rio+20.

Emerging-market economies and developing countries are heavily reliant on their endowments of
environmental resources. Therefore, improved management of these resources can have huge
benefits in terms of industrial production, job creation and incomes, export growth and fiscal
revenues. However, despite sustained efforts to promote better and more effective environmental
management over several decades, the natural resource base continue to deteriorate in many
parts of the world. The greatest impact is felt by developing countries with fewer financial
resources to address the challenges of environmental degradation, to adapt to changing
environments and to pursue green growth strategies.

To reverse this trend, developing countries and donor agencies have to work together to better
integrate environmental issues in their policy reform agendas. Such a strategy can have many
advantages and positive policy spill-overs: strengthened capacity for environmental management
will empower individuals, organisations and society as a whole, and it can create a more
transparent governance of environmental and natural resources. While capacity development for
the environment is the responsibility of domestic actors, international donors can play an important
role in supporting developing countries.

This summary is based on an OECD guidance document titled Greening Development: Enhancing
Capacity for Environmental Management and Governance. It distils lessons learned from the
experience of donors and partner countries in incorporating the environment at the national and
sectoral levels. It also reflects a shift from the traditional view of capacity development as a purely
technical process to one that recognises the importance of country ownership at different levels in
governments and society. Furthermore, it advocates the application of country systems as entry
points for capacity development for the environment.

Outlined in this summary are a number of steps to be considered when building capacity for
effective integration of environmental issues into national development plans, national budgetary
processes and key economic sector strategies. It identifies the key actors to be engaged in
decision-making processes, outlines possible capacity needs and suggests how these can be
addressed. In addition, it provides recommendations for donors on how they can support partner
countries in strengthening capacity development for the environment and what internal capacity
donors themselves may need in order to effectively provide this support.

We hope that this summary will assist international donors and developing country partners in their
efforts to achieve greener and more inclusive growth. OECD stands ready to support these efforts.

Angel Gurría
OECD Secretary-General

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What does greening development mean?

INDIA: Green accounting Environmental resources and services make a Greening development means building
Case study

of forest resources vital contribution to economic growth and well- sustainable environmental management into such
being in developing countries. Their natural key areas of development as national planning,
The Indian state of Himachal
Pradesh has broken new
resource sectors drive economic growth and national budget processes, and economic sector
ground in sustainable resource provide the poor with livelihoods and an important strategies. It is a process by which better
management by developing its safety net in times of crisis. Endowments from stewardship of natural capital can contribute to
capacity to carry out a full environmental resources and services account for achieving national growth and development
economic valuation of its forests an estimated 26% of total wealth in low-income objectives, while also addressing critical
and the environmental services
countries compared to 2% in industrialised challenges such as natural resource depletion,
they provide. The valuation
revealed that the state’s forests countries. climate change, energy and food shortages.
could contribute a staggering Furthermore, it can create new business activities,
USD 26.7 billion a year to the Economic growth based on the unsustainable markets, and job opportunities in areas like green
country’s GDP. Yet the state use of natural resources is no longer viable in a agriculture, clean energy technologies, and
receives just USD 10 million a
world facing the pressures of a growing services provided by ecosystems.
year in revenue from its forests
and the sale of timber and other
population, climate change and increasing risks of
forest products. In order to food shortages. Against this background ensuring
ensure that the true value of its the sustainability of the natural resource base is
forests is properly recognised, crucial. This requires a rapid transition to a
Himachal Pradesh now applies greener development path.
a levy on anyone using forests
in a way that affects the
services they provide.
Source: www.lead.org.

The OECD defines capacity as:

Greening national processes:

distinctive features of developing countries

n Natural resources: The centrality of natural n Opportunity for leapfrogging: The low
resources to developing countries’ economies level of infrastructure that characterises most
makes it particularly important to include the developing countries provides an opportunity
value of environmental assets and services in to move straight to modern, efficient
national and corporate accounts. This can technologies. But this opportunity will only
encourage the development of policies to be realised with sufficient technical capacity
safeguard their value. and a supportive policy environment.

n The informal sector: A significant number n Governance: Developing countries can

of people in developing countries work in suffer from weak governance. Effective,
informal sectors, which poses challenges for inclusive and equitable governance is an
implementing environmental standards. enabling condition for, and a measure of
The complexity of many informal sector greening development. It is, therefore,
activities means that the implementation of important that governance processes and
environmental policies contributing to greening mechanisms for greening development
development relies on the capacity of respond to the needs and interests of
stakeholders to develop and implement marginalised groups.
appropriate measures.

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Greening development requires capacity

Awareness is growing of the intrinsic link case for greening development to non- Commitment on capacity
between natural resource management and environmental staff and policy makers. It also development in the Paris
Declaration on Aid
sustainable development. Indeed, developing seeks to develop more environmentally specific
Effectiveness:
countries – with assistance from development skills, such as:
support providers – have made substantial n Developing countries
efforts over the years to build and improve their n identifying environmental challenges and commit to integrate specific
capacity to manage their natural resource base. priorities and their implications for capacity strengthening
However, there is still limited integration of the development; objectives in national
development strategies and
environment into various levels of decision
pursue their implementation
making. A consequence of this has been that the n monitoring environmental changes through through country-led
natural resource base continues to deteriorate. green accounting; capacity development
strategies where needed.
It is clear that a new approach to capacity n sending price signals that prompt changes in
n Development support
development for environmental management and behaviour;
providers commit to align
governance is required. Moving beyond the their analytic and financial
traditional approach, the focus of capacity building n reforming environmental fiscal systems to support with partners’
for greening development needs to extend beyond encourage more sustainable resource capacity development
environment ministries and environmental consumption. objectives and strategies,
protection. It should encompass the finance, make effective use of
existing capacities and
planning and line ministries, civil society groups, A key obstacle for many developing countries
harmonise support for
the private sector and local communities. in meeting this greening development objective capacity development
is a lack of the above mentioned capacities and accordingly
Enhancing capacities for greening development skills. This brief summarises how countries can Source: OECD (2005), Paris Declaration
means improved understanding of the natural work with development support providers to on Aid Effectiveness, OECD. Paris.

resource base, and the ability of environment address these gaps and unlock the benefits
ministries and agencies to make the economic from greening development.

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Capacity building for greening development

should be country based

RWANDA: Programmatic
Case study

approach to capacity
development for
environmental integration

The Government of Rwanda

systematically integrates
environmental concerns into its
national plan, budget cycle and
sub-national planning process.
It has programmed capacity
development activities into this
mainstreaming effort, which
has benefited from a high
degree of country ownership:

n The enabling environment

has been greatly enhanced
by convincing the Ministry
of Finance of the
importance of the
environment to national
development goals and
sector strategies.

n The environment agency

and relevant stakeholders
have become involved in
the poverty reduction
strategy and in the budget
process. This has helped
build organisational
capacity.

n Individual capacities have

been developed through Developing country contexts vary line ministries, parliament, the national audit
“learning-by-doing”, e.g. tremendously. Any approach to build and office, citizens and civil society groups.
valuing ecosystem services, enhance capacity for greening development
costing environmental
must therefore be flexible by design and should Line ministries may have their own environment
degradation, drafting
guidelines for incorporating
make use of countries’ own systems. units which come together in inter-ministerial
the environment into local groups to address the links between the
planning. Using countries’ institutional and regulatory economy and the environment. The inter-
Source : www.unpei.org. arrangements to deliver capacity development departmental nature of such groups reflects the
support helps to strengthen ownership of cross-cutting nature of the environment. More
capacity building efforts. It also enables informal governmental networks are also
countries to better align development conducive to sharing information, experience
assistance with their national priorities and and good practices.
policies.
Although capacity building involves non-
Furthermore, using a developing country’s governmental stakeholders, the government
public financial management system helps to must take the lead in integrating greening
strengthen accountability and promote development objectives into national policy
transparency between the ministry of finance, processes.

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A framework for greening national, budgetary,

and economic sector planning

The national planning process is critical for 3. Identifying opportunities to shape Capacity on three levels:
greening development. The main entry points organisational incentives, including finding
n Individual level:
for enhancing capacity for greening possible entry points, setting priorities and
Knowledge and skills to set
development are national development plans, outlining the appropriate timescale, targets and achieve objectives. This
budgetary processes and economic sector and resources needed to tackle the identified includes the capacity to
strategies. capacity needs. build relationships, trust and
legitimacy (“soft” capacities)
A five-step framework should be applied when 4. Identifying awareness / knowledge and technical, logistical and
managerial skills (“hard
undertaking capacity develop initiatives at each needs and existing analytical tools, such
capacities”).
of these levels. The five steps are not as raising awareness of the role the
necessarily sequential. Nor do all five steps environment plays in achieving economic n Organisational level:
have to be applied. development, becoming familiar with existing Organisational structures
knowledge products and adopting and using and systems that bring
individual capacities
1. Assessing the political and institutional technical tools to make the economic case
effectively together.
context, by conducting an analysis of the for environmental programmes and measures. Organisational capacity
national context, understanding incentive preserves institutional
structures and gaining familiarity with country 5. Identifying options for policy response, continuity when staff
level analysis of natural resource constraints ranging from revised priorities and turnover is high.
and opportunities. implementation strategies to specific
n Enabling environment
environmental management measures and
level: Policy, legal,
2. Identifying key actors and their capacity investments. regulatory, economic and
development needs, such as government social support systems in
officials, private sector representatives and The capacity development process should set which individuals and
members of civil society groups. This process a realistic timeline and match planning and organisations operate. It is
determined by policies, rule
needs to go beyond the institutional level and policy cycles. It is a cyclical process that
of law, accountability,
also consider the political and economic develops over the long term. Regular reviews transparency and flow of
dimensions that influence the commitment should be conducted and findings channelled information.
and performance of stakeholders. back into the process.

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Enhancing capacity for greening national

development planning

Questions to ask when National development planning is an important n capacity to shape effective institutional
building capacity for driver of a country’s environmental management mechanisms that systematically provide
greening national planning
system. Greening national development plans environmental input to the national
n What political and
involves clear prioritisation, realistic targets, and a development planning process;
institutional context shapes programmatic approach developed over several
the national planning planning cycles. It is particularly important to n capacity to frame environmental issues in the
process? And does it foster have a strong participatory approach that creates language of the policy maker and to enable
linkages between domestic ownership and accountability, facilitates other stakeholders to relate environmental
environment and
learning, and enshrines the involvement of civil issues to development priorities like growth
development outcomes?
society. and poverty;
n Who are the key actors in
greening national planning What capacities are required for participatory n capacity to co-ordinate initiatives funded
processes and do they green development planning? domestically and by development support
have the relevant
providers.
capacities?
n capacity to help build long-term environ-
n How can capacity mental constituencies and include all affected
development be designed stakeholders;
as a programme of
prioritised activities tailored
Steps for enhancing capacity for greening national development planning
to the particular process,
entry points, targets,
timescale and resources
required?
Assess national planning cycle and
institutional setup;
n What organisational
capacities should be Link greening development objectives
to national policy process;
prioritised to facilitate
Enlist officials aware of environment-
greening development development linkages.
planning?

n What mechanisms can

raise awareness and
improve access to high
quality knowledge products Integrate results from environmental Identify key actors and their capacity
that support a green assessment into national planning development needs for greening
processes; national processes;
development path at both
Enhance environmental governance Key actors include staff in environment,
organisational and individual and accountability; finance, planning and line ministries/
levels? Legalise the rights of non-
agencies, civil society groups, private
sector and other “champions”.
governmental stakeholders to
n What kind of training and participate in processes to green
national development plans.
technical support can be
provided to use specific
analytical tools for greening
development?

n How can citizens engage in

Equip key actors with tools for Create incentives for planning
the national planning ecosystem assessment and economic officials to consider the role of the
process and influence analysis to make the case for greening environment in meeting development
national development plans; objectives;
specific outcomes?
Build capacity to integrate technical Involve environment officials in
analysis into national planning national planning processes (e.g. in
processes; working groups).
Collect data to strengthen the case for
greening development planning.

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The role of support providers in greening national

planning processes

Development support providers play an implementation to build a ‘results orientation’ SRI LANKA: Greening the

Case study
important role in assisting developing countries at all levels of decision making. Poverty Reduction Strategy
Paper (PRSP)
to enhance the capacity to green their national
development planning processes. They should n Making effective use of mechanisms for
The integration of
also help countries to assume leadership of the co‐ordinating development support in environmental issues into Sri
capacity development process. order to promote a consistent approach to Lanka’s PRSP in 2003 was
greening development and the associated the result of more than 10
As development support providers increasingly capacity development efforts. Where such years of gradual capacity
development that involved a
channel their assistance through budget co‐ordination mechanisms are weak or non-
set of reforms of the
support, they need to ensure that their existent, support should be provided to institutional structure:
commitments are in line with the principles of the develop them;
aid effectiveness agenda. Among the action n In 1990, an inter-ministerial
points they should undertake to help green n Demonstrating good practice by integrating committee led by the
Ministry of Environment
development at the national level are: environmental issues into the execution of their
prepared the first National
own funding instruments to set an example. Environmental Action Plan
n Expanding the focus from policies and They should also collaborate to develop shared of an Asian country.
plans on capacity development to actual knowledge products from lessons learned.
n In 1991 a powerful inter-
ministerial National
Environmental Steering
Committee (NESC), chaired
by the Secretary to the
Treasury, was established.

n Subsequently, ten sectoral

Committees on
Environmental Policy and
Management were
established, chaired by the
respective secretaries of the
line ministries (Energy,
Transport, Health, Water,
etc.).

n By the end of the process,

the Ministry of Environment
acted as a facilitator and
succeeded in creating an
enabling environment that
encouraged the line
ministries to take leadership
and ownership for
integrating environmental
issues into their
development plans.
Source: Bojö, J., et al. (2004),
“Environment in Poverty Reduction
Strategies and Poverty Reduction
Support Credits”, World Bank
Environment Department Paper,
No. 102, World Bank, Washington, DC.

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Enhancing capacity for greening national budget

processes

Annual environmental Reforming the budget process is likely to be Providers should target their capacity develop-
protection budgets generally more challenging than that of the planning ment initiatives at weaknesses in existing
account for between 1% and
process – the stakes for entrenched actors are environmental management and foster
2.5% of public spending.
higher because national budget processes are collaboration between finance and environment
Source: Lawson, A. and N. Bird (2008),
Environmental funding: How to increase the the mechanisms through which national ministries and agencies. A capacity develop-
effectiveness of public expenditure in resources are appropriated and distributed. ment framework for the budget process should
developing countries, ODI, London.
build on:
Capacity development for greening the national
budget process needs to be strategic. It n good fiscal knowledge;
includes the capacity needs of finance and n involvement and commitment of all
environment ministries and agencies. A key government players and stakeholders;
priority is to ensure that environment officials n training and human resource development;
have the capacity to present evidence on how n targeting of key weaknesses;
the environment achieves specific development n working with existing synergies;
outcomes in a language that can be n improving cross-sector linkages.
understood by budget officials.
Traditionally environment agencies account for low
In order to do so, environmental actors must have shares of national budgets, while finance ministries
a good understanding of the budget cycle control revenues from major sources like fossil fuel
(formation, approval, execution and oversight), the taxes. But as climate change climbs the political
decision points for introducing budget reforms, agenda, environment ministries and agencies
and demands on fiscal policy. Important skills are are increasingly part of budget formulation and
data collection, management and priority setting. interact more closely with finance ministries.

The capacity needed Enabling environment Organisational level Individual level

Stakeholders understand Stakeholders involved in the Finance ministry has Finance staff are aware of economic
the importance of institutional process for incentives and mechanisms value of environmental policies and
environmental issues preparing national budget to assess economic value of programmes
environmental policies

Environment agencies Finance ministry agrees on role Finance and environment Environment staff understand how
formally involved in national of environment agency in officials understand how budget process works and how to
budget process budget process environment stakeholders engage effectively
may participate

Analyse links between Budget allocations to spending Finance ministry has Environment staff skilled in economic
environment and ministries in accordance with incentives to include valuation, programme costing and
development – make the national plan and priorities environmental priorities and stating the environmental case to
economic case measures in budget budget officials
formulation

Formulate environmental Budget process includes Environment agency Environment staff can analyse and
management measures and environmental management participates effectively in communicate benefits of budgeted
environmental fiscal reform measures, environmental fiscal drafting budget proposals and environmental measures, economic
in budget instruments, subsidy reform finance ministry adopts its instruments, subsidy reform
guidance

Environment-development A well functioning national audit Environment and line Environment staff skilled in project
indicators and monitoring system promotes sound ministries have management screening, management and
mechanisms used expenditure management in all systems to disburse funds monitoring/evaluation skills
government agencies efficiently to meet policy
priorities

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The role of support providers in greening

budget processes

Providers of capacity development support for environmental policies and preparing public COSTA RICA: Capacity

Case study
greening budget processes should: environmental expenditure reviews. development for financial
analysis of climate
investments
n Work with developing countries on how n Support the preparation of guidelines on
to integrate environmental issues into the how environmental programmes can be UNDP has provided support
budget process. They should also ensure developed to align them with the budgetary to Costa Rica as part of a
that environment agencies (widely funded process and demonstrate their contribution global programme on capacity
from off-budget sources) are not to poverty reduction. development. The programme
aims to raise the awareness
marginalised as they switch to funding from
and technical skills needed by
the national budget. n Provide the resources needed to green government bodies – including
budget processes while national experts set finance and line ministries – to
n Support the acquisition of skills such as the priorities. Such an arrangement complies assess the investment needs
valuing the economic costs and benefits of with commitments to use country’s existing for climate change adaptation
in key sectors. Specific
systems.
capacity development
activities include collaborative
initiatives to identify adaptation
Steps for enhancing capacity for greening national budget processes priorities and actions and to
develop costing
methodologies used to assess
the financial requirements to
carry out these activities.
Assess budget cycle and institutional
set-up; Some lessons learned are:
Link greening development objectives
to budget allocations; n Measures must include an
Enlist officials aware of environmental accurate assessment of
implications in budget planning. costs and set priorities to
be considered and included
in a country’s financial plan;

n It is useful to distinguish
investment costs from
Use results from environmental Identify key actors and their capacity
analysis in budget planning; development needs for greening operation and maintenance
Consider proposals on environmental
national budgets; costs to adequately
fiscal reform; Key actors include staff in finance, consider trade-offs between
planning, environment and line measures;
Broaden stakeholder participation in
ministries/agencies, civil society
budget process.
groups and other “champions”.
n A cost assessment of
various options is
particularly challenging in
sectors with greater
uncertainty and less
experience in public policy,
such as biodiversity
Provide environment staff with a Create incentives for budget officials conservation.
better understanding of the budget to assess costs/ benefits of Source: www.undpcc.org
process; environmental assets and services;
Enhance communication and Enable environment staff to provide
negotiation skills of environment support or participate budgetary
staff to participate in budget process; planning (e.g. through collaboration
Offer budget officials training on how with budget officials).
to undertake and apply economic and
assessment tools for environmental
valuation.

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Enhancing the capacity to green key economic

sectors

Natural resource sectors Governments use a variety of instruments to n In turn, finance and planning ministries or
drive economic growth in influence and shape the development and agencies that usually co-ordinate sector
many developing countries
environmental outcomes of economic sectors. planning need to understand the rationale
n Agriculture is the largest
These include changing regulatory and behind an enhanced role for the environment
economic sector in Africa, enforcement measures, introducing or reducing agency and agree on that role across each
generating over USD 100 fiscal measures, reforming markets or process.
billion annually and deregulating production, and influencing
representing 15% of the consumer demand. n At the same time, government actors need to
continent’s total GDP.
be aware of the role non-govermental actors
Rising global food prices
offer much economic Sectors are also affected by the broader enabling play and involve them in the planning process.
growth potential. But soil environment such as the effectiveness of public This should go beyond simple consultation to
erosion has degraded an financial management, procurement systems, real engagement.
estimated 16% of cropland. oversight, accountability and the engagement of
stakeholders: n Furthermore, sector-based capacity
n The forestry industry
contributes to more than
development should recognise the cross-cutting
10% to GDP and employs n It is critical that the relevant environment ministry nature of the environment. Much current focus
around 40-60 million people or agency understands how sector planning is on how policies and measures can be used to
in developing countries. and budgeting processes operate if it is to green sectors like energy, agriculture, fisheries,
become an integral part of these processes. water and forestry.
n It is estimated that around
95% of the world’s 35
million fishermen live in
Steps for enhancing capacity for greening economic sectors
developing countries. But
fish stocks are declining
fast, further curbing pro-
poor growth.
Sources: McKinsey (2010), McKinsey on
Assess sector planning processes and
institutional set-up;
Africa: A continent on the move,
McKinsey Global Institue, New York; Link sectoral planning to greening
OECD (2008), Natural Resources and development objectives;
Pro-Poor Growth: The Economics and Enlist officials aware of environmental
Politics, DAC Guidelines and Reference implications on sector planning.
Series, OECD, Paris.

Establish environment units in line Identify key actors and their capacity
ministries; development needs for greening sector
planning processes;
Integrate results from technical and
policy analysis to on the role of the Key actors include staff in line
environment in sector strategies. ministries/ agencies, environment
officials, central authorities, civil society
groups and other “champions”.

Raise awareness on the role of the Create incentives for staff in line
environment in achieving sector ministries to learn about environment-
targets; sector linkages;
Provide knowledge products and Create opportunities for environment
technical support for assessment staff to participate in sector planning
and analysis of environmental assets processes.
and services.

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The role of support providers in greening

economic sector strategies

Building capacity for greening economic n Adopt a long-term iterative approach. South-south co-operation
sectors requires that development support Support providers should aim to learn lessons (SSC) is an important
mechanism through which
providers understand the planning processes, from using a programmatic approach and
developing countries can
their entry points, and the pressures to which build these into subsequent planning cycles in develop some of the
their strategies respond. Vested interests may order to achieve a lasting improvement. capacities they need for
make sectors resistant to greening equitable and sustainable
development, while their planning processes n Improve sectoral co-ordination environmental governance
are less clearly formulated than for national mechanisms. This is critical to ensure that in a specific sector.

planning and budgeting. Against that cross-cutting issues, such as the

SSC allows countries with a
background, support for capacity development environment are adequately prioritised.
similar natural resource base,
for greening economic sectors should: economic development,
n Set capacity building for individual political structures and social
n Use capacity development initiatives sectors within the wider context. Sectors objectives to help each other
to address priority weaknesses. are complex systems and any capacity reinforce institutional
Common methodologies for reporting development initiatives must be aware of measures and technical
should be developed to help overcome broader national objectives and specific capacities for goals such as
poor accountability due to the political, social and contextual factors. sustainable environment
fragmentation of the economic sector. management.
n Break the task into bite-size pieces.
One such co-operation
n Join forces with other relevant When a sector is too large to deal with
mechanisms is the
programmes. Capacity development for effectively, one should focus on a sub-set of
Mesoamerican Environmental
greening economic sectors can be the sector, while being aware of the broader
Sustainability Strategy (EMSA).
incorporated into on-going programmes sector and to engage a large number of It began in 2008 and brings
for capacity development in each sector. stakeholders within the sub-sector. together the environmental
ministries of Belize, Colombia,
Costa Rica, El Salvador,
Guatemala, Honduras,
Nicaragua, Panama and the
Dominican Republic.

With the objective of achieving

a more sustainable ecosystem
service provision, EMSA
agreed to strengthen the
Mesoamerican Biological
Corridor by putting in place an
inter-connected regional
system of protected areas, an
expert network for integrated
hydrographic basin
management, and a
Mesoamerican system of
economic and social valuation
of ecosystems.
Source : UNCBD (2010), South-South
Co-operation on Biodiversity, Newsletter,
Volume 1, Issue 1, UNCBD, Montreal.

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Development support providers and their

capacity needs

n Paris Declaration on Aid Sustained assistance from development Development support providers face two key
Effectiveness calls for support providers – bilateral and multilateral challenges:
development support
development co-operation and environment
providers to commit to
agencies – helps developing countries build n how to tackle the institutional and technical
aligning their analytical and
financial support with successful capacity for greening development aspects of greening development.
developing countries’ and meet their environmental conservation and
capacity development development objectives. n how to align capacity building for greening
objectives and strategies. development efforts with existing country
In recent years the focus has shifted from systems.
n Over the past three
decades, several technical assistance to collaboration with
development support developing countries. Development support The first step for development support
providers have adopted providers should deliver support that meets providers should be to assess their own
policies, procedures and identified needs, determining priorities in capacity to build enabling environments,
strategies that commit them
response to environmental threats and organisational capacity, and individual skills.
to promote environmentally
sustainable development.
opportunities in developing countries.
They should use the strengths and address
n Environment-related official the weaknesses of local environmental
development assistance was management and governance systems.
USD 26 billion in 2009, a When possible, they should contribute to
45% increase from 2007.
environmental initiatives already underway.

Enabling environment Does the development support provider:

Environmental policy n Have a policy on support to the environment?

framework n Have a policy on integrating environmental considerations into country programming?
n Have a policy consistent with other multilateral and bilateral development organisations?

Environment programme n Treat the environment as a programme or as a sector?

commitment n Propose financial support for environment-related programmes at regional or country level?
n Propose active programmes to support capacity building for environment agencies?
n Run active programmes to integrate the environment into development planning?

Organisational level Does the development support provider:

Environmental staffing and n Have a dedicated environment unit?

responsibilities n Have regional- or country-based environmental advisors?
n Offer environmental training for non-environmental staff members?

Guidance on capacity n Have a dedicated unit specialising in capacity development knowledge and practice?
development and country n Have any internationally endorsed best practice guidance on capacity development?
systems n Offer guidance on applying best practice to support the strengthening of country systems?

Cross-practice programme n Understand needs assessment and determine realistic time frames and outcome indicators?
capacity n Give organisations incentives to build capacities for greening development that meets the needs of the
country concerned?”
n Have mechanisms for cross-practice knowledge management, monitoring and evaluation?

Individual level Does the development support provider:

Knowledge and experience of n Have any best practice guidance on capacity development?
– environmental governance n Have any best practice guidance on enhancing capacity for greening development?
and integration, n Have any reviews or evaluations of past initiatives to support capacity development for environmental
– economic and poverty- management and governance?
environment linkages n Have staff members with skills in programme preparation and results-based management?
– results-based management

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How development support providers can enhance

their capacity for greening development

n View capacity development for the n Nurture local ownership. Capacity

environment as underpinning all development support is more likely to be
development support. Capacity successful when it works towards meaningful
development for environmental management and achievable goals that are priorities for
must be seen as a cross-cutting strategic developing countries. Such an approach
issue. As such, it should be a focal point at all encourages countries to invest in leadership,
levels of design, implementation and valuation. oversight and management of support.

n Collaborate across agencies. Development n Focus on results. Measurable results are

co-operation agencies may lack the technical the cornerstone of effective capacity
expertise and operational knowledge to build development. They emphasise the
capacity for environmental integration. They achievement of outcomes and long-term
may delegate some tasks to their national impacts rather than mere measurement of
environment agencies or work with them input and output and enable development
under twinning arrangements. Collaboration support providers to evaluate progress and
maximises the comparative advantages of build on lessons learned.
different agencies within a provider
government. n Implement best practice guidance. Such
guidelines can help identify key principles
n Harmonise work with other development and tools required to deliver effective support
support providers. Harmonisation of for capacity development.
development support is a fundamental
principle of aid effectiveness. It is critical that n Reflect and learn. Support providers
development and environment agencies should regularly evaluate their activities to
operating in developing countries harmonise adjust their strategies and enhance their
their approaches to ensure effective initiatives on capacity building for greening
programme delivery, facilitate exchange of development. “Learning-by-doing” should
knowledge and expertise across agencies, become an integral part of an overall
and to avoid duplication. programmatic approach.

Prioritising capacity development initiatives

Capacity development involves important to consider when n Be transparent and talk but underestimate timeframes.
more than just a transfer of skills prioritising capacity development with key stakeholders. Capacity development often
and is first and foremost about efforts: Capacity development is a responds well to more humble
the collective institutional dynamic process and requires beginnings, associated with a
capabilities needed to achieve n Seek collaboration. It is regular consultation and more gradual learning and
national goals and to contribute essential to have a shared dialogue. Transparency scaling-up process.
to changing social values. understanding of objectives requires the participation of
Country leadership to create the and priorities in addressing a key stakeholders (civil society n Target “pockets of energy”
space for change is critical, but particular challenge and groups, parliament, press, and and opportunities for “win-
the context determines what is readiness for change. Joint others) wherever possible. wins”. The most effective
possible at any given time. approaches allow Those involved will need to initial priorities for support are
development support regularly assess the need for often those where readiness
Setting specific priorities requires providers to understand local political support and how to for change already exists and
a joint understanding and perspectives better, while achieve it. where win-win arrangements
dialogue around a set of ensuring a degree of are possible for both
fundamental questions: capacity developing country ownership n Start small, learn and developing countries and
for what, by whom, why and and leadership of the change adapt. Countries often tend development support
how? Several elements are process. to set overly ambitious targets providers.

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Greening Development: enhancing

capacity for environmental management
and governance
Economic growth based on the unsustainable use of natural resources
is no longer viable in a world facing the pressures of a growing
population, climate change and increasing risks of food shortages.
Against this background ensuring the sustainability of the natural
resource base is crucial. Enhancing capacity for environmental
management is a key element in achieving this transition to a greener
development path.

The OECD’s policy guidance on Greening Development: Enhancing

Capacity for Environmental Management and Governance is intended
to assist developing countries – and providers of development support
– in their efforts to move to a greener development path. This policy
brief outlines the key messages from that guidance. It shows the main
steps required to build capacity for greening national development
planning, national budgetary processes and key economic sector
strategies. It identifies key actors to be engaged in the decision-
making processes, outlines possible capacity needs and suggests
how these can be addressed.
Design, layout and iconography by Baseline Arts Ltd, Oxford, UK . www.baselinearts.co.uk

For more information:

www.oecd.org/dac/environment