US-EIN-521257057-BUS_P4G_NL 2nd phaseWorld Resources InstituteThe UN Sustainable Development Goals (SDGs) have become a globally recognized standard to align action, including between public and private-sector organizations. Meeting the SDGs will require solutions that the private sector can deliver. Residents of low- and middle-income countries (LMICs) represent a large and growing market for SDG-aligned business innovation. Businesses are in the midst of a paradigm shift from an industrial era where the business bore no or minimal penalty for environmental and social externalities, to a post-industrial era where businesses work in partnership with government to provide social and environmental value that drives the economic growth of people living in the world’s poorest and often most climate-vulnerable communities. Developing countries carry a disproportionate burden of the negative economic and social impacts of extreme climate events. High-income countries contribute the most to climate change, while communities in developing countries carry a much higher burden compared to their contributions to the climate challenge. For example, the World Bank estimates that 74 of the world’s poorest countries account for less than one tenth of global greenhouse gas emissions. Meanwhile, these countries—along with communities around the world who are in the same economic bracket— are the most vulnerable to extreme weather patterns, natural hazards and food and water shortages. In the past 10 years alone, they have experienced eight times43 as many nature disasters, and unchecked change may force mass migrations. It has been estimated that by 2030 climate change could push more than 120 million additional people into poverty. The “Decade of Action” declarations of 2020 have increased the focus on accomplishing the SDGs and addressing climate needs in developing countries from public and private sectors around the world. From an institutional side, this increased focus is reflected in the Danish strategy for development cooperation, “The World We Share,” which describes a proactive approach to establishing innovative partnerships with civil society, the business community and public authorities. The Netherlands and the Republic of Korea also take similar approaches in their policy documents for development cooperation: “Do What We Do Best” and the “3rd Mid-term Strategy for Development Cooperation (2021‒2025)” respectively. Similarly, the private sector has shifted from an initial SDG-related perspective of doing business responsibly and doing no harm, to an approach that more directly focuses business solutions on addressing global or local challenges in a manner that creates positive social and environmental impacts. A rapidly increasing number of innovative businesses are able to provide products that are affordably priced for the poor. These are also working in regions that lack access to core SDG-related services, such as food, water, sanitation and energy, and suffer the economic growth-stifling effect that the lack of such services carries. For example, one cannot have refrigeration for either a grocery store or a clinic without access to electricity. The provision of such services is directly tied to economic growth, with studies showing that for every increase in basic energy service levels, average household revenue will also increase. The companies providing these innovative and affordable climate-friendly products in Overseas Development Assistance (ODA)-eligible countries face considerable challenges in getting the investment needed to start and to grow their businesses. From the outset, LMICs have difficulties in attracting private investments because risks are perceived as too high, and the enabling environment is not conducive. This results in private capital costs being prohibitively expensive and prevents private capital flow to LMICs. To meet this challenge, many programme initiatives aim to enable investment, e.g., including early-stage project development that proves the bankability of business solutions and blended finance mechanisms where public funds are engaged to make private investments possible. The following are the objectives of P4G Phase 2 program as conceptualized between 2023 to 2027.1. Businesses supported by P4G become investment ready 2. Government and private-sector leaders contribute to improving the green growth enabling systems based on inputs by P4G partnerships 3. Knowledge mobilization (incorporating MEL) engages knowledge partner stakeholders who can influence enabling systems and country transitions in food, water and energy systems.Early stage businessesNetherlands - Ministry of Foreign AffairsWRI Global OfficeNetherlands - Ministry of Foreign Affairs+31 70 348 7549www.government.nl/ministries/bzColombiaEthiopiaIndonesiaKenyaSouth AfricaVietnamWorld80000011000003550804216625321829438000001100000355080421662532182943800000Netherlands - Ministry of Foreign AffairsWRI Global Office111668.56Netherlands - Ministry of Foreign AffairsWRI Global Office