WORLD TRADE  
ORGANIZATION   
WT/COMTD/AFT/W/31 
8 February 2012 
 (12-0764) 
Committee on Trade and Development 
Aid for Trade  
 
 
 
BACKGROUND NOTE ON AID FOR TRADE, SUSTAINABLE DEVELOPMENT 
AND GREEN ECONOMY 
Joint Communication from the OECD and WTO Secretariats1 
 
 
I. OVERVIEW 
1. This note discusses the contribution of Aid for Trade (AfT) to sustainable development and 
green economy.  It is intended as a background note to inform discussion at the workshop on this topic on 29 February 2011.  The workshop is set against the background of the 17
th Conference of the 
Parties (COP-17) to the United Nations Fram ework Convention on Climate Change (UNFCCC) 
which was held in Durban, South Africa on 28 No vember - 9 December 2011 and the forthcoming 
United Nations Conference on Sustainable De velopment (commonly known as Rio+20) on 
20-22 June 2012.   
2. One of the guiding principles of Aid for Trade is that it "should be rendered in a coherent 
manner taking full account, inter alia , of the gender perspective and of  the overall goal of sustainable 
development".2  Trade's contribution to the economic deve lopment pillar of sustainable development 
was recognized at the original United Nati ons Conference on Environment and Development 
(UNCED) 1992 Rio "Earth Summit" and Johannesbur g World Summit on Sustainable Development.  
The "intersection" of trade with the broader sustai nable development agenda was highlighted by the 
Third Global Review as an area of particular releva nce - and one which should be examined further in 
the AfT work programme for 2012-2013 "Deepening Coherence".   
3. The 2011 monitoring and evaluation exercise high lighted that sustainable development is 
beginning to influence the AfT policy objectives of partner countries, South-S outh partners, bilateral 
and multilateral donors.  The monitoring exercise also  harvested case stories of how AfT projects are 
meeting both trade and sustainable development obj ectives.  This background note highlights the 
evolving synergy between sustainable development and Aid for Trade. 
4. OECD data on AfT flows further underscores this  evolving synergy.  Some 30 per cent of aid 
for economic infrastructure is contributing to "env ironmental objectives".  Furthermore, many of the 
issues to be addressed by climate change funds, fo r example sustainable renewable energy, address 
the same trade-related infrastru cture constraints targeted by the Aid-for-Trade Initiative.   
5. From recognition of sustainable development as a key principle to guide the Aid-for-Trade 
Initiative, a growing body of work is now emergi ng which underscores the contribution which Aid for 
Trade is making to sustainable development in practice.  
                                                      
1 This document has been prepared under the res ponsibility of the OECD and WTO Secretariats and 
without prejudice to the positions of Members and to their rights and obligations under the OECD or WTO. 
2 Recommendation of the Task Force on Aid for Trade WT/AFT/1, 
http://www.wto.org/english/tratop_e/dda_e/implementing_par57_e.htm. WT/COMTD/AFT/W/31 
Page 2  
 
  II. TRADE AND SUSTAINABLE DEVELOPMENT 
6. Trade openness has the potential to lead to a mo re efficient use of resources and stimulates 
growth and income levels.  This can support con servation, sustainability and efforts to eradicate 
poverty.  Trade promotes production efficiency via sp ecialization, exploitation of economies of scale, 
technology transfer, and enhanced competition.  Openness can help countries compete by not only 
offering new opportunities for sales (i.e. exports), bu t also making available to producers the widest 
range of inputs at the highest quality and lowest prices (i.e. imports). 
7. Trade can play a key role in helping the envi ronment, in part because it serves as a channel 
for green technology transfer.  Openness to trade ma y provide access at lower cost to a greater variety 
of imported goods and services involving environmenta lly-friendly technologies.  It can also increase 
the size of the markets for producers of final goods and suppliers of components, thus raising the 
returns from innovation for those people involved in  the production networks involving green goods.  
The ability to market innovations globally makes it  possible to increase specialization and provides 
incentive to produce green goods requiring intensive research.   
8. The UNCED was held in Rio de Janeiro in 1992.  It followed on from work undertaken by the 
World Commission on Environment and Development (known as the Brundtland Commission).  In its 
1987 report, Our Common Future, the Commission defined sustainable development as "development that meets the needs of the pres ent without compromising the ability of future generations to meet 
their own needs".  Consisting of three pillars, sust ainable development entails  economic development, 
social development and environmental protection.   Both the UNCED 1992 and Johannesburg World 
Summit on Sustainable Development in 2002 recognized  that international trade is a key component 
of economic development pillar – and can also positi vely interact with the other two pillars.   
9. The Rio+20 conference in June 2012 will focus on two themes:  (a) a green economy in the 
context of sustainable development and poverty erad ication;  and (b) the institutional framework for 
sustainable development.  During preparations fo r Rio+20, countries have discussed the contribution 
of a green economy to key goals such as poverty erad ication, food security, sound water management, 
universal access to modern energy services, sustaina ble cities, management of oceans, public health, 
human resource development, and sustained, in clusive and equitable growth that generates 
employment.   
10. Sustainable development is an objective of the WTO.  It is set out in the Marrakesh 
Agreement Establishing the WTO, the 2004 Minister ial Decision on Trade and Environment and is 
strongly reaffirmed, inter alia , in the Doha Ministerial Declaration.  The Doha Ministerial Declaration 
states that:  "We recognize that under WTO rule s no country should be prevented from taking 
measures for the protection of human, animal or plan t life or health, or of the environment at the 
levels it considers appropriate, subj ect to the requirement that they are not applied in a manner which 
would constitute a means of arbitrary or unjus tifiable discrimination between countries where the 
same conditions prevail, or a disguised restric tion on international trade, and are otherwise in 
accordance with the provisions of the WTO Agreements."  
11. Various WTO Agreements cover measures taken to achieve environmental protection goals.
3 
WTO rules recognize Members' right to adopt trade-re lated measures for legitima te objectives such as 
the protection of the environment, subject to the condition that they do not arbitrarily or unjustifiably discriminate between countries or constitute a disguised restriction on international trade; in short, these measures should not be taken with protectionist intent.  
                                                      
3 For more information see:  "Harnessing trade fo r sustainable development and a green economy", 
WTO, 2011, http://www.wto.org/english/res_e/publications_e/brochure_rio_20_e.pdf  WT/COMTD/AFT/W/31 
 Page 3 
 
 
  12. Amongst its other functions, the WTO acts as a re pository for trade policy information.  WTO 
Members are committed to provide their trading partners with information on their trade and 
trade-related policies through periodic notifications.  Many of these notifications may cover measures 
related to sustainable development.  The transparen cy that these notifications provide is central to 
WTO goals of:  ensuring as much certainty and pr edictability in trade as possible;  monitoring the 
implementation of Members' obligations;  and enab ling Members to take action if measures have a 
negative impact on trade.   
13. Since 2002, the Doha Development Agenda (DDA) negotiations have targeted three key areas 
related to the environment: liberalization of environmental goods and services; negotiations on the 
relationship between multilateral environmental ag reements (MEAs) and the WTO; and fishery 
subsidies.  Other negotiating areas are also relevant for sustainable development.   
14. Members and observer organizations periodically report to relevant WTO Committees, 
including the Committee on Trade and Environment,  on their trade-related technical assistance 
activities on trade and the environment.  The importa nce of technical assistance and capacity building 
in the field of trade and environment to developing countries, and in particular LDCs, is recognized in 
the Doha Ministerial Declaration.  Technical assi stance and capacity building has also been discussed 
in the Committee on Trade and Environment in Speci al Session (CTESS).  Discussions have focused 
on the assistance needed to implement the specific  trade obligations of MEAs and the proposed 
establishment of a group of experts on trade and envi ronment to give advice to developing countries.4  
III. AID FOR TRADE AND SUSTAINABLE DEVELOPMENT 
15. The Aid-for-Trade Initiative was launched at  the Hong Kong Ministerial Conference in 
December 2005 with the aim of helping "developi ng countries, particularly LDCs, to build the 
supply-side capacity and trade-related infrastructure that they need to assist them to implement and 
benefit from WTO Agreements and more broadly to expand their trade".  The Task Force 
Recommendations on operationalizing Aid for Trade s ituated it as that part of official development 
assistance (ODA) which addresses the trade-related development priorities identified in recipient 
country's national development strategies.  It also  included a series of six categories for the global 
monitoring of AfT flows.   
16. Aid for Trade is about assisting developing co untries, and in particular LDCs, to increase 
export of goods and services, to integrate into th e multilateral trading system, and to benefit from 
liberalized trade and increased market access.  As such, developing trade in environmental goods and 
services are an integral part of the Initiative; so too is technical assistance and capacity building in the 
field of trade and the environment. 5/6   
IV. SUSTAINABLE DEVELOPMENT AND THE 2011 AID-FOR-TRADE  MONITORING 
EXERCISE 
17. The 2011 monitoring and evaluation exercise highlighted that sustainable development 
objectives are beginning to influence the AfT policy objectives of partner countries, South-South 
partners, bilateral and multilateral donor s.  The exercise also harvested practical examples, in the form 
                                                      
4 For more information see the report by the Ch airman of the CTESS to the Trade Negotiations 
Committee (TN/TE/20). 
5 Coverage of the term "environmental goods and services" is the subject of on-going negotiation 
within the CTESS.  Annexes II and II.A of the report by the Chairman of the CTESS to the Trade Negotiations 
Committee (TN/TE/20) provides an update on the status of negotiations.   
6 WTO organized 42 separate training and technical  cooperation activities for developing countries on 
trade and the environment between 2005-2010.   WT/COMTD/AFT/W/31 
Page 4  
 
  of case stories, of how AfT projects are meeting sustainable development objectives, submitted by a 
broad range of different authors, including the private sector.   
18. The AfT monitoring questionnaires requested the following information on sustainable 
development:   
 For partner countries, green growth was given as one of the options for changes in AfT 
objectives.
7   Greater environmental sustainability was also given as an option for defining the 
success of Aid for Trade and as an impact which had been achieved.  
 For donors and South-South partners, climate ch ange and green growth was given as both an 
option in the list of changes which might have occurred in AfT strategies and as an option for future changes.  Greater environmental sustai nability was also given as one of the priorities 
for donors' AfT strategies.   
19. It should be noted that other objectives such  as expanding trade, increasing economic growth 
and reducing poverty ranked were more often cited as the most important AfT objective.   
20. Around half of the donors changed their Af T strategies since 2009 and among partner 
countries 33 changed the objectives of their national development strategies (approximately 
30 per cent).  Figure 1 below shows the ranking give n to green growth as a reason for change among 
partner countries, bilateral and mu ltilateral donors.  Eleven donors also noted that climate change and 
green growth would lead to changes in their AfT objectives in the next two years.  Figure 2 below 
shows ranking given to environmental sustainability as an AfT goal.   
 
Figure 1:  Green growth and changes to AfT objectives 
 
 
 
Source:   Aid for Trade at a Gl ance 2011: Showing Results, 
http://www.wto.org/english/res_e/ publications_e/aid4trade11_e.htm 
 
                                                      
7 The joint monitoring and evaluation exercise used the OECD term "green growth".  The OECD 
defines green growth as a subset of sustainable development which aims to "foster economic growth and 
development, while ensuring that natural assets continue  to provide the resources and environmental services on 
which our well-being relies. To do this, it must catal yse investment and innovation which will underpin 
sustained growth and give rise to new economic opportunities".  Towards Green Growth:  A summary for policy 
makers, OECD May 2011.   
 WT/COMTD/AFT/W/31 
 Page 5 
 
 
  Figure 2: Greater environmental sustainability as an AfT goal 
 
051015202530354045
Most
ImportantImportant Less
importantNot
impotantNo	answerPartner	countries
Donors
South‐South	Partners
 
Source:  Aid for Trade at a Glance 2011: Showing Results, 
http://www.wto.org/english/res_e/ publications_e/aid4trade11_e.htm 
21. The Aid for Trade at a Glance 2011:  Showing Results publication also provides further 
information on sustainable development actions provi ded in AfT questionnaire responses, such as:   
 Austrian Development Co-operation Agency  co-operation on building trade-related 
infrastructure and renewable energy with ECOWAS and SADC;  
 Brazil's focus on climate change and green grow th, notably through support to biofuels and 
agriculture, particularly in Africa;   
 Chinese Taipei's focus on climate change and environmentally sustainable development; 
 Finland's expansion of energy and environment partnerships; 
 Germany's aim to elaborate the relationshi p between Aid for Trade and green growth; 
 IADB's cross-sectoral priorities on environm ent/climate change and green growth;  
 Korea's Green Village and Provision of Wate r Utilising Renewable Energy in Kazakhstan; 
 New Zealand working to "climate-proof" infrastru cture projects, notably in the Pacific;  and 
 Singapore's plans to provide more technical  assistance programmes in trade and green 
innovation for the benefit of APEC and other Asian-Pacific economies. 
22. Submissions of case stories provide a diverse pi cture of how sustainable development is also 
starting to influence AfT implementation on th e ground.  Various case stories were submitted 
providing specific examples of how AfT funding is  promoting such areas as:  organic standards and 
value chain development, compliance with sanitary  and phytosanitary measures, sustainable land WT/COMTD/AFT/W/31 
Page 6  
 
  management and renewable energy.
8  Table 1 provides examples of how case stories intersect with the 
categories of assistance identified by the Aid for Tr ade Task Force for global monitoring.  Compiled 
using the joint OECD-WTO compilation of case stories, the list of case stories in Table 1 is not exhaustive and may neglect case stories in whic h sustainable development is not a prominent 
objective.  It includes case stories submitte d by both the public and private sector.
9  
Table 1:  Categories of AfT support and examples of  
sustainable development activities 
 
Category of 
assistance Examples of 
actions in support 
of sustainable 
development Examples from case 
stories submitted Website link 
Trade policy 
and 
regulations Training of officials 
in trade policy 
relating to 
environmental 
goods and services 
and environmental 
protection 
measures, specific 
trade obligations of  
multilateral 
environment 
agreements and 
participation in 
regional and 
multilateral 
trade/environment 
negotiations Australia: Australia 
Fumigation Accreditation 
Scheme. 
 
Caribbean Community 
Secretariat: Establishment 
of the Caribbean 
Agricultural Health and 
Food Safety Agency  
 
Kenya: Creation of the 
Centre of Phytosanitary 
Excellence 
 
Inter-American Institute 
for Cooperation on 
Agriculture (IICA) 
Initiative for the Americas 
on Sanitary and 
Phytosanitary Measures10  
 
Standards and Trade 
Development Facility 
(STDF): Promoting Agri-
Food Exports that Meet 
International Sanitary and 
Phytosanitary (SPS) Requirements: The Role 
of Multi-Stakeholder 
Partnerships
11 http://www.oecd.org/dataoecd/31/49/47341463.pdf 
 
 
 
http://www.oecd.org/dataoecd/38/44/47479430.pdf 
 
 
 
 
 
http://www.oecd.org/dataoecd/44/25/47745751.pdf 
 
 
 
http://www.oecd.org/dataoecd/3/48/48181826.pdf 
 
 
 
 
 
 
http://www.oecd.org/dataoecd/6/24/47798001.pdf 
 
 
 
 
  
 
 
                                                      
8 For an overview of the inter-relationship between SPS and sustainable development objectives, see: 
Implications of Climate Change on Sanitary and Ph ytosanitary (SPS) Issues and Development Objectives. 
(http://www.standardsfacility.org/files/ClimateCha nge/STDF_Coord_292_BackgroundNote_Jun09.pdf) 
9 All case stories can be accessed at  www.aid4trade.org/ Private sector  case stories were submitted as 
part of an exercise led by the World Bank.  Analysis of the case stories is included in "The Role of International 
Business in Aid for Trade: Building Productive Cap acity in Developing Countries", (http://gem.sciences-
po.fr/content/publications/pdf/Cattaneo_Hoekman_AidForTrade072011.pdf) 
10 IICA submitted two further case stories on  capacity building for active participation in the WTO SPS 
Committee CS Ref. no. 252, (http://www.oecd.org/dataoecd/3/46/48181844.pdf)  and application of the IICA's 
Performance, Vision and Strategy (PVS) tool.  CS Ref. no. 253, 
(http://www.oecd.org/dataoecd/3/47/48181835.pdf)  
11 STDF submitted two further case stories on  indicators to measure the performance of national SPS 
systems (CS Ref. no. 250) (http://www.oecd.org/dataoecd/3/50/48181750.pdf) and use of economic analysis 
methodologies to inform SPS decision-making. CS Ref. no. 268,   
(http://www.oecd.org/dataoecd/3/49/48181789.pdf)   WT/COMTD/AFT/W/31 
 Page 7 
 
 
  Category of 
assistance Examples of 
actions in support 
of sustainable 
development Examples from case 
stories submitted Website link 
Tonga: Comparison of 
two quarantine standards 
programmes  
 
WTO: ITTC case story on 
WTO trade capacity 
building  
 
World Bank: 
Environmental Goods and 
Services 
 http://www.oecd.org/dataoecd/63/50/47747338.pdf 
 
 
 
http://www.oecd.org/dataoecd/29/35/48413638.pdf 
 
 
 
http://www.oecd.org/dataoecd/29/35/48413638.pdf 
 
 
Trade development Institutional 
support and 
business support services for 
environmental 
goods and services, 
including trade 
promotion, market 
analysis and 
development Argentina: Technical 
assistance to fishermen in 
Nicaragua to improve their sustainable fishing 
techniques 
 
Denmark: African 
business partnership 
(Ugandan African Organic 
and the Danish company 
Solhjulet) 
 
International Solidarity 
Foundation of Finland 
Nicaraguan:  Export of 
organic coffee and honey 
Nicaragua.   
 
Nestlé Nespresso: 
Accelerating Progress on 
the AAA Sustainable 
QualityTM Program in 
Central America 
 
Peru: Public-Private 
Partnership and 
Biodiversity: The case of 
Maca  
 
Switzerland: Economic 
Success through Resource 
Efficient and Cleaner 
Production 
 
Switzerland: Cotton 
Initiative in C-4 countries 
(Benin, Burkina Faso, 
Chad and Mali)  
 
United Nations 
Conference on Trade and 
Development (UNCTAD): 
Biotrade Initiative 
Programme in Uganda 
 
 
 
 http://www.oecd.org/dataoecd/33/0/47449508.pdf 
 
  
 
 
http://www.oecd.org/dataoecd/31/1/47343784.pdf 
 
 
 
 
 
http://www.oecd.org/dataoecd/40/55/48293990.pdf 
 
 
 
 
 
http://www.oecd.org/dataoecd/37/57/48367316.pdf 
 
 
 
 
 
http://www.oecd.org/dataoecd/56/52/47765182.pdf 
 
 
 
 
http://www.oecd.org/dataoecd/10/55/47428242.pdf 
 
 
 
 
http://www.oecd.org/dataoecd/11/35/47428114.pdf 
 
 
  
http://www.oecd.org/dataoecd/12/14/47718768.pdf 
 
 
 
 
 
 
 
 WT/COMTD/AFT/W/31 
Page 8  
 
  Category of 
assistance Examples of 
actions in support 
of sustainable 
development Examples from case 
stories submitted Website link 
United Nations 
Environment Programme 
(UNEP) adoption of the 
East African Organic 
Products Standard  
 
UNCTAD-UNEP 
cooperation to support the 
production and trade of 
organic agricultural 
products in East Africa http://www.oecd.org/dataoecd/11/62/47719232.pdf 
 
 
 
 
 
http://www.oecd.org/dataoecd/11/36/47718557.pdf 
Trade-related 
infrastructure  Construction or 
renewal of trade-
related 
infrastructure e.g.   sustainable energy, 
transport and water 
systems.  Using 
telecommunications 
and ICT networks 
for sustainable 
development.   Asian Development Bank: 
Green Power Development 
Project - Cross-border 
Power Export from Dagachhu 
 
Qualcomm - Using 
Technology to help Fishers 
and Entrepreneurs http://www.oecd.org/dataoecd/46/44/48651659.pdf 
 
 
  
 
http://www.oecd.org/dataoecd/37/39/48367430.pdf 
Building 
productive 
capacity 
 Supporting capacity 
to produce and 
trade environmental 
goods and services European Union: Support 
to the coffee sector in 
Cameroon  
 
Germany: Introducing 
Rainforest Alliance 
Certification to Cocoa 
Production in Côte d’Ivoire 
 
New Zealand: Women in 
Business Development 
Incorporated, Samoa 
 
Spain: Development of 
sustainable fishing capacities in the Gulf of 
Fonseca, Honduras 
 
Switzerland: Impacts of 
Certification for 
Sustainable Production on 
Coffee Producers in 
Tanzania  
 
Global Mechanism of the 
United Nations Conference 
on Desertification 
(UNCCD): Sustainable 
land management in Mali 
 
UNCCD: A common 
agenda for trade and 
agriculture to achieve 
sustainable land 
management in Uganda 
 
Walmart: Direct Farm and 
Fertile Soil http://www.oecd.org/dataoecd/40/49/47462025.pdf 
 
 
 
http://www.oecd.org/dataoecd/28/37/47405615.pdf 
 
 
 
 
http://www.oecd.org/dataoecd/59/40/47380731.pdf 
 
 
 
http://www.oecd.org/dataoecd/32/9/47450948.pdf 
  
 
 
http://www.oecd.org/dataoecd/11/39/47427864.pdf 
 
 
 
 
 
http://www.oecd.org/dataoecd/28/15/48412851.pdf 
 
 
 
 
 
http://www.oecd.org/dataoecd/63/29/47747804.pdf 
 
 
 
 
 
http://www.oecd.org/dataoecd/38/25/48368733.pdf  WT/COMTD/AFT/W/31 
 Page 9 
 
 
  Category of 
assistance Examples of 
actions in support 
of sustainable 
development Examples from case 
stories submitted Website link 
Trade-related 
adjustment Accompanying 
measures to benefit 
from liberalized 
trade in 
environmental 
goods and services  Overseas Development 
Institute: Aid for Trade and 
Trade Related Adjustment 
in the context of Climate 
Change  http://www.oecd.org/dataoecd/39/12/48288694.pdf 
Source:   WTO Secretariat analysis of case story replies. 
V. AID FOR TRADE AND GREEN GROWTH FINANCING  
23. AfT resources reached approximately US$40 b illion in 2009.  The 2011 monitoring and 
evaluation exercise underlines AfT implementation activities can support sustainable development 
objectives and that sustainable development is an  important objective which many partner countries 
and donors wish to pursue through Aid for Trade.   
24. Since 1998, the OECD's Development Assistan ce Committee has monitored aid targeting the 
objectives of the Rio Conventions through its "Cre ditor Reporting System" (CRS) using the so called 
"Rio markers".  Every aid activity reported to the CRS is screened and marked as either (i) targeting 
the Conventions as a "principal objective" or a "significant objective", or (ii) not targeting the objective.  Figure 3 below shows AfT categories an d the use of the Rio marker for environmental 
objectives – a proxy for sustainable development.   
Figure 3:  Aid for Trade with environmental objectives 
 
 
Source:   OECD.12 
25. In 2009, almost 30 per cent of Aid for Trade to economic infrastructure had an environmental 
objective – a figure which has doubled since 2007.  However, these figures may underestimate the 
extent to which the environment is an objec tive due, for example, to under-reporting of the 
environment marker.  The proportion for building productive capacity is much smaller and as would 
be expected, trade policy and regulation projects have only limited environment objectives (just over 
5 per cent of support to this category in 2009).   
26. Within the category of economic infrastructure, the OECD reports data on aid for energy 
generation.  Within this sub-category of energy  generation, there is reporting on power generation 
from renewable sources, hydro-electric power, geothermal, solar, wind, wave and biomass.  Table 2 below provides data on the evolution of official development assistance to address energy constraints. 
                                                      
12 "Aid for Trade and Green Growth:  Stat e of Play" OECD COM/DCD/TAD(2012)2.   WT/COMTD/AFT/W/31 
Page 10  
 
  Table 2:  Aid for Trade and Sustainab le Energy Generation in USD millions 
 2005 2006 2007 2008 2009 
Total Aid for Trade for 
Energy 4,624 4,851 6,716 7,685 6,735 
Of which: 
Power generation/renewable sources 328 313 859 834 1,301 
Hydro-electric power 
plants 468 652 682 435 30 
Geothermal energy 225 10 8 3 16 
Solar energy 64 53 10 148 292 
Wind power 120 93 138 322 219 
Biomass 15 20 25 105 126 
Source:   OECD Creditor Reporting System. 
 
27. The Asian Development Bank project in Dag achhu, Nepal highlights how AfT assistance can 
help address trade-related infrastructure and suppl y-side constraints, as well as climate change 
objectives.  In 2010, the Dagachhu hydropower project was registered as the world first cross-border Clean Development Mechanism initiative under th e UNFCCC, providing energy from Bhutan to 
India.
13   
28. The architecture of sustainable development financing is an evolving one.  Finance is 
available through various different  channels:  multilateral, plurila teral, bilateral and from private 
sources.  Of particular current focus is climat e change-related finance.  At the UNFCCC's COP-17 
last year, agreement was reached to establish a Green Climate Fund  
(http://unfccc.int/files/meetings /durban_nov_2011/decisions/appli cation/pdf/cop17_gcf.pdf).  In 
November 2011, the OECD published the first co mprehensive data measuring aid in support of 
climate-related objectives.14   
29. Preliminary OECD figures for 2010 show that to tal bilateral climate change-related aid by 
members of the OECD's Development Assistan ce Committee (DAC) was US$22.9 billion in 2010, 
representing about 15 per cent of total official devel opment assistance.  Of this total, two-thirds was 
for mitigation, and one-third for adaptation.  For 60 per cent of the climate-related activities, mitigation or adaptation was the primary objective; for the remainder it was a significant objective.  
Synergy between Aid for Trade and climate change funding is also likely to be strong, again in the 
area of economic infrastructure.  Table 3 provides an overview of sources of climate funding. 
                                                      
13 Asian Development Bank case story:  Cross-border Power Export from Dagachhu Hydropower 
Development  Green Power Development Project (h ttp://www.oecd.org/dataoecd/46/44/48651659.pdf)  
14 First Ever Comprehensive Data on Aid for Climate Change Adaptation, OECD, November 2011 
(http://www.oecd.org/dataoecd/54/43/49187939.pdf)   WT/COMTD/AFT/W/31 
 Page 11 
 
 
  Table 3:  Overview of climate funding 
 
Fund name Website link Managing Institution Focus 
Adaptation Fund http://www.clima tefundsupdate.org/listing/ada
ptation-fund Adaptation Fund 
Board Adaptation 
Amazon Fund  http://www.clima tefundsupdate.org/listing/ama
zon-fund Brazilian 
Development Bank  Mitigation - 
REDD15 
Clean 
Technology Fund http://www.climatefundsupdate.org/listing/clea
n-technology-fund The World Bank Mitigation - 
general 
Congo Basin Forest Fund http://www.climatefundsupdate.org/listing/con
go-basin-forest-fund African Development 
Bank Mitigation - 
REDD 
Forest Carbon 
Partnership 
Facility http://www.climatefundsupdate.org/listing/fore
st-carbon-partnership-facility World Bank Mitigation - 
REDD 
Forest 
Investment 
Program http://www.climatefundsupdate.org/listing/fore
st-investment-program World Bank Mitigation - 
REDD 
GEF Trust Fund - Climate Change focal area (GEF 
4) http://www.climatefundsupdate.org/listing/gef-
trust-fund World Bank Mitigation - 
REDD 
GEF Trust Fund - Climate Change focal area (GEF 
5) http://www.climatefundsupdate.org/listing/gef-
trust-fund Global Environment 
Facility  Adaptation, 
Mitigation - general 
Global Climate Change Alliance http://www.climatefundsupdate.org/listing/glo
bal-climate-change-allianc European Commission Adaptation, 
Mitigation - 
general/ 
REDD 
Global Energy Efficiency and 
Renewable 
Energy Fund http://www.climatefundsupdate.org/listing/geer
ef European Commission Mitigation - 
general 
Indonesia Climate Change 
Trust Fund http://www.climatefundsupdate.org/listing/icct
f Indonesia National 
Development 
Planning Agency Adaptation, 
Mitigation - 
general/ 
REDD 
International Climate Fund http://www.climatefundsupdate.org/listing/inte
rnational-climate-fund Government of the 
United Kingdom Adaptation, 
Mitigation - 
general/ 
REDD 
International Climate Initiative http://www.climatefundsupdate.org/listing/inte
rnational-climate-initiative Government of 
Germany Adaptation, 
Mitigation - 
general, 
Mitigation - REDD 
International 
Forest Carbon 
Initiative http://www.climatefundsupdate.org/listing/ifci Government of 
Australia Mitigation - 
REDD 
Japan's Fast Start Finance - Private 
Sources http://www.climatefundsupdate.org/listing/hato
yama-Initiative Government of Japan Adaptation, 
Mitigation - 
general/ REDD 
                                                      
15  REDD:  Reduce Emissions from Deforestation and Forest Degradation.   WT/COMTD/AFT/W/31 
Page 12  
 
  Fund name Website link Managing Institution Focus 
Japan's Fast Start 
Finance - Public 
Sources http://www.climatefundsupdate.org/listing/hato
yama-Initiative Government of Japan Adaptation, 
Mitigation - 
general/ REDD 
Least Developed 
Countries Fund http://www.climatefundsupdate.org/listing/leas
t-developed-countries-fund Global Environment 
Facility (GEF) Adaptation 
MDG 
Achievement 
Fund – 
Environment And Climate 
Change thematic 
window http://www.climatefundsupdate.org/listing/md
g-achievement-fund Global Environment 
Facility (GEF) Adaptation 
Norway's 
International 
Climate and 
Forest Initiative http://www.climatefundsupdate.org/listing/nor
way-s-international-climate-and-forest-
initiative Government of 
Norway Mitigation - 
REDD 
Pilot Program for Climate 
Resilience http://www.climatefundsupdate.org/listing/pilo
t-program-for-climate-resilience World Bank Adaptation 
Scaling-up 
Renewable Energy Program 
for Low Income 
Countries http://www.climatefundsupdate.org/listing/scal
ing-up-renewable-energy-program World Bank Mitigation - 
general 
Special Climate 
Change Fund http://www.climatefundsupdate.org/listing/spe
cial-climate-change-fund Global Environment 
Facility  Adaptation 
Strategic Climate 
Fund http://www.climatefundsupdate.org/listing/strat
egic-climate-fund The World Bank Adaptation, 
Mitigation - general/ 
REDD 
Strategic Priority 
on Adaptation http://www.climatefundsupdate.org/listing/strat
egic-priority-on-adaptation Global Environment 
Facility  Adaptation 
UN-REDD 
Programme http://www.climatefundsupdate.org/listing/un-
redd-programme UNDP Mitigation - 
REDD 
Source:  Heinrich Böll Stiftung/Overseas De velopment Institute, Climate Funds Update, http:/ /www.climatefundsupdate.org/ 
30. Sustainable development is growing in influe nce as an AfT policy objective, although other 
objectives still predominate.  Sustainable development is also influencing the design and delivery of 
AfT implementation as developing countries, South- South partners and donors seek to integrate these 
objectives into their assistance activiti es.  In the more narrowly defined area of climate change funds, 
there is clear synergy between adaptation and m itigation activities and the Aid-for-Trade Initiative's 
objectives, notably in the area of aid to economic infrastructure.16  Sustainable development was 
recognized as a key principle to guide the Aid-for-Tra de Initiative;  a growing body of work is starting 
to emerge as to how Aid for Trade is contri buting to this principle in practice.   
__________  
                                                      
16 "Aid for Trade and the Green Growth Agenda", OECD, COM/DCD/TAD(2010)5 . 
(http://www.oecd.org/officialdocuments/publicdispla ydocumentpdf/?cote=COM/D CD/TAD(2010)5&docLangu
age=En)