ENHANCING CAPACITY a Basis for Greening Development CDE Brochure [F] Layout 1 10/01/2012 14:03 Page 15 CDE Brochure [F] Layout 1 10/01/2012 14:02 Page 1

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ENHANCING CAPACITY A basis for greening development CDE brochure [f]_Layout 1 10/01/2012 14:03 Page 15 CDE brochure [f]_Layout 1 10/01/2012 14:02 Page 1

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

What does greening development mean?

INDIA: Green accounting Environmental resources and services make a Greening development means building 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 Case study resource sectors drive economic growth and national budget processes, and economic sector Pradesh has broken new 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 population, climate change and increasing risks of and the sale of timber and other 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 sustainable development. Indeed, developing seeks to develop more environmentally specific Declaration on Aid 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 n making. A consequence of this has been that the 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 for environmental management and behaviour; Development support 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.

Capacity building for greening development should be country based

RWANDA: Programmatic approach to capacity development for environmental integration Case study

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 make use of countries’ own systems. units which come together in inter-ministerial guidelines for incorporating 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 1.Assessing the political and institutional technical tools to make the economic case individual capacities 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 needs to go beyond the institutional level and policy cycles. It is a cyclical process that determined by policies, rule 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.

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 involves clear prioritisation, realistic targets, and a development planning process; n What political and 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 n What organisational institutional setup; 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/ agencies, civil society groups, private levels? Legalise the rights of non- 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 specific outcomes? national development plans; objectives; 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 to enhance the capacity to green their national Paper (PRSP) 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 development at the national level are: environmental issues into the execution of their Ministry of Environment 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.

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 n the national budget. 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 systems. in key sectors. Specific 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 national budgets; Consider proposals on environmental costs to adequately fiscal reform; Key actors include staff in finance, consider trade-offs between planning, environment and line Broaden stakeholder participation in measures; 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.

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 These include changing regulatory and behind an enhanced role for the environment n Agriculture is the largest 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 development should recognise the cross-cutting contributes to more than 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. Assess sector planning processes and Sources: McKinsey (2010), McKinsey on 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 providers understand the planning processes, from using a programmatic approach and mechanism through which 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. n Join forces with other relevant When a sector is too large to deal with One such co-operation 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.

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 opportunities in developing countries. sustainable development. 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

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.

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. www.baselinearts.co.uk . Arts Ltd, Oxford, UK Arts Oxford, Ltd, Baseline

For more information:

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