ProjectStudy for Rio+20: “Policy Measures to Support Inclusive and Green Business Models”

Project context

Realising synergies between inclusion and greening requires innovative technologies and business models. While they are developed and implemented by the private sector, both policy makers and donors can play a key role in supporting them. To support such developments, the Green Growth Working Group (GGWG) was formed under the Donor Committee for Enterprise Development (DCED) with the objective to generate and share knowledge, as well as to raise awareness on the private sector's actual and potential contribution to Green Growth, as well as green issues related to the business enabling environment.

Project objective

To support DCED’s work, the German Federal Ministry for Economic Cooperation and Development (BMZ) commissioned a study to map policy measures to support new and innovative business models that bring together both greening and inclusion. The study was based on desk research and interviews with experts, investors, policy-makers and business owners. They shared their insights into how policy measures affect the development of green and inclusive business models.

Project output

The report, Policy Measures to Support Inclusive and Green Business Models, shows how mission-driven organizations that employ market-based mechanisms to address social and environmental challenges often take on the risky pioneering work, while traditional businesses scale successful models. Both mission- and business-driven organizations are supported by a diverse set of actors, such as impact investors, NGOs, MFIs, research organization, donors and policy-makers. The latter particularly matter in providing stable and secure, yet flexible regulatory frameworks. They can also influence market mechanisms by designing subsidy and incentive systems for green and inclusive innovations and facilitate cooperation and partnerships between actors.

The study was presented and discussed at DCED’s session on 'Enabling Green and Inclusive Markets: A Case for Public Private Collaboration' on 18 June 2012 within the Corporate Sustainability Forum at Rio+20.

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