Greening global economic growth is the only way to satisfy the needs of today’s population and up to 9 billion people by 2050, driving development and well-being while reducing greenhouse gas emissions and increasing natural resource productivity.

Considerable progress has been made in transitioning to green growth. Global investment in renewable energy in 2011 hit another record; up 17% on 2010 to U.S $257 billion. This represented a six-fold increase from 2004 and was 93% higher than in 2007,the year before the global financial crisis. Global agricultural productivity growth rates are exceeding overall population growth rates, and since 1990, more than 2 billion people have gained access to improved drinking water sources. Energy efficiency is widely recognized as providing economic opportunities and improved environmental security,while the fuel efficiency of vehicles has more than doubled since the 1970s.

Developing countries are playing a growing role in scaling up green investment. Cross-border and domestic investment originating from non-OECD countries grew 15-fold between 2004 and 2011 at a rate of 47% per year (compared with 27% per year for OECD-originating investment), albeit from a low base. Clean-energy asset financing originating from developing countries in 2012 is on track for the first time to exceed those originating from developed countries. This investment is due in part to the creation of green growth strategies by a number of developing country governments—to advance water resources, sustainable agriculture, and clean energy. Developing country public finance agencies can accelerate this trend by targeting more of their funds to leverage private finance.