Improving Green Competitiveness for Inclusive Transformation

The document argues that traditional nationalistic industrial models must shift toward collaborative frameworks to avoid excluding developing nations from green value chains. It suggests strategies such as disaggregating energy-intensive production to regions with abundant renewables, moving from 'technology transfer' to 'sharing of know-how', and utilizing industrial clusters to reduce costs and aggregate demand. The paper emphasizes the role of Multilateral Development Banks (MDBs) in providing concessional capital and the potential for 'climate-smart' public-private partnerships, including philanthropic funding, to bridge financial gaps. It highlights the importance of regional trade frameworks and the need to recycle revenues from carbon border measures back into developing economies to catalyze green industrialisation.

• The document advocates for a shift from nationalistic industrial interests to 'cooperative green competitiveness', suggesting that energy-intensive industrial stages, such as steel production, be located in regions with abundant renewable energy to improve efficiency and create roles for developing countries in green value chains.
• To ensure sustainable and equitable supply chains for transition minerals, the document argues that resource-rich developing countries should be supported in developing local refining and processing capacities, though it notes that such strategies must be country-specific and depend on existing infrastructure and skilled labour.
• The paper proposes moving beyond simple technology transfer toward a 'holistic sharing of know-how', citing the Industrial Transition Partnerships (ITP) between India and Sweden as a template for co-developing technology and mobilizing finance through bilateral commitment.
• The document suggests that jurisdictions implementing carbon pricing or carbon border trade measures should create co-innovation and technology diffusion funds, potentially in partnership with regional banks like Afreximbank, to recycle funds back into developing economies.
• Industrial clusters are identified as a means to drive transformation by bringing supply chains closer to production (e.g., EV value chains near lithium mining), aggregating demand for renewable energy to lower costs, and utilizing 'climate-smart' public-private partnerships (PPPs) and philanthropic capital to fill venture capital gaps.
• Multilateral Development Banks (MDBs) and International Financial Institutions (IFIs) are described as critical for addressing systemic constraints through long-term concessional capital and by mitigating foreign exchange risks and debt vulnerabilities for borrower countries.
• The document highlights the Türkiye Industrial Decarbonisation Investment Platform, led by the EBRD in partnership with the World Bank Group and IFC, as a model for coordinating IFI support to deploy $5 billion in investments by 2030.

APA

African Future Policies Hub (2025). Improving Green Competitiveness for Inclusive Transformation. https://img1.wsimg.com/blobby/go/b2d05cc3-7b8c-4f0d-a62a-66af7434f28f/downloads/db3d2377-57b3-4d50-938d-c0a5cfc1030f/Improving%20Green%20Competitiveness%20for%20Inclusive%20.pdf?ver=1780902966003

Chicago

African Future Policies Hub. Improving Green Competitiveness for Inclusive Transformation. 2025. https://img1.wsimg.com/blobby/go/b2d05cc3-7b8c-4f0d-a62a-66af7434f28f/downloads/db3d2377-57b3-4d50-938d-c0a5cfc1030f/Improving%20Green%20Competitiveness%20for%20Inclusive%20.pdf?ver=1780902966003.

Wikipedia

{{cite report |author=African Future Policies Hub |title=Improving Green Competitiveness for Inclusive Transformation |date=May 2025 |url=https://img1.wsimg.com/blobby/go/b2d05cc3-7b8c-4f0d-a62a-66af7434f28f/downloads/db3d2377-57b3-4d50-938d-c0a5cfc1030f/Improving%20Green%20Competitiveness%20for%20Inclusive%20.pdf?ver=1780902966003 |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{africanfuturepolicieshub2025improving, author = {{African Future Policies Hub}}, title = {{Improving Green Competitiveness for Inclusive Transformation}}, institution = {African Future Policies Hub}, year = {2025}, month = may, url = {https://img1.wsimg.com/blobby/go/b2d05cc3-7b8c-4f0d-a62a-66af7434f28f/downloads/db3d2377-57b3-4d50-938d-c0a5cfc1030f/Improving%20Green%20Competitiveness%20for%20Inclusive%20.pdf?ver=1780902966003}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }