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G20 compendium on investment promotion, attraction and facilitation for sustainable development : emerging G20 IPA strategy and best practice
(UN.ESCAP, 2023-12-13)
<p>This Compendium seeks to understand how the national IPAs of the G20 promote, attract and facilitate FDI for sustainable development, particularly in terms of the incorporation of sustainable development objectives into their foreign direct investor identification, engagement, support and monitoring activities and the extent to which G20 IPAs measure the sustainable development payoffs, or impacts, of their investment promotion, attraction, and facilitation efforts. Since the G20 attracts most of the world’s FDI, understanding what its IPAs are doing to better gauge and track the sustainability of the FDI they attract and service can significantly influence and encourage other IPAs to do the same.</p>
<p>G20 IPAs are now firmly committed to promoting sustainable development and to attracting investment in sectors that contribute directly to key SDGs. Encouraging as this is, it is important to emphasize that this is still in a nascent phase and confined to a relatively small group – even within the G20. Outside this small sub-group, however, investment promotion seems to continue to largely be business as usual – in the traditional way. Findings suggest that for many G20 IPAs, ‘investment promotion for sustainable development’ still seems to be a secondary and subsidiary task to their real job of bringing in any and as much investment as they can and have been doing for decades. In other words, investment promotion in the G20 has not yet ‘gone sustainable’ enough across the board to ensure that all G20 members meet their 2030 Agenda targets.</p>
<p>To this end, the Compendium stresses the crucial need to make investment in sustainable development the core, driving principle for mission statements, investor messaging, investor services and incentives. Interrelatedly, it highlights an urgent need for capacity building to equip IPAs with the necessary skills and knowledge to attract, support and expand sustainable investment. Crucial is also to increase IPA cooperation to drive sustainable investment principles to the forefront internationally and create synergies between IPAs and economies.</p>...