Green growth: implications for development planning

This guide by the Climate and Development Knowledge Network (CDKN) provides a framework for national planners and policy makers in developing countries to integrate 'green growth' into economic development planning. It emphasizes the use of economic tools to balance economic growth with environmental and social objectives, such as climate resilience and poverty reduction.

• Green growth is defined as a strategic approach that seeks to promote economic development while simultaneously addressing climate change, the loss of natural capital and resources, and social objectives like poverty reduction.
• The guide proposes a planning framework consisting of six stages: developing a vision, conducting a national baseline assessment and business-as-usual (BAU) scenario development, developing options and interventions, performing impact analysis, producing a roadmap/plan, and implementation and capacity building.
• Planners require three core skills to implement green growth: an understanding of external drivers (such as competitiveness and international political processes), knowledge of various policy instruments (including market and non-market tools), and the ability to identify policy impacts beyond conventional GDP accounting.
• Various economic tools are available for green growth planning, each with specific strengths and limits. Macroeconomic models like Computable General Equilibrium (CGE) can model resource reallocation over time but are often 'black-box' and opaque to policy makers. Microeconomic tools like Cost-benefit analysis provide clear rationales for decisions but require well-defined assumptions.
• Developing countries face significant barriers when applying economic tools, including a lack of data availability and resource capacity, particularly in least developed countries (LDCs). Additionally, models built for developed economies may have invalid assumptions regarding the economic structure, such as the role of the informal economy, in developing nations.
• Rwanda is integrating climate planning into its development pathway through the National Strategy on Climate Change and Low Carbon Development (NSCCLCD), which aims to address vulnerabilities in agriculture and hydropower while positioning the country for international finance by 2050.
• The 'Heart of Borneo' initiative involves Indonesia, Malaysia, and Brunei committing to transform 22 million hectares into a green economy, balancing opportunities like ecotourism and deforestation reduction payments against the need for sustainable logging and land swaps for palm oil companies.

APA

Low, L. P. (2011). Green growth: implications for development planning. Climate and Development Knowledge Network. https://cdkn.org/sites/default/files/files/CDKN-Guide-to-Green-Growth.pdf

Chicago

Low, Lit Ping. Green growth: implications for development planning. Climate and Development Knowledge Network, 2011. https://cdkn.org/sites/default/files/files/CDKN-Guide-to-Green-Growth.pdf.

Wikipedia

{{cite report |last1=Low |first1=Lit Ping |title=Green growth: implications for development planning |publisher=Climate and Development Knowledge Network |date=July 2011 |url=https://cdkn.org/sites/default/files/files/CDKN-Guide-to-Green-Growth.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{low2011green, author = {Low, Lit Ping}, title = {{Green growth: implications for development planning}}, institution = {Climate and Development Knowledge Network}, year = {2011}, month = jul, url = {https://cdkn.org/sites/default/files/files/CDKN-Guide-to-Green-Growth.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }