This session examines the role of green industrial policies in fostering sustainable economic growth and job creation in developing economies, addressing challenges like geopolitics, high capital costs, and balancing climate goals with development priorities.

In recent years, we have seen an increasing use of green industrial policy instruments. This shift marks a departure from traditional economic paradigms and highlights the growing recognition that sustainable industrialization is not just an environmental necessity, but an economic opportunity. For emerging and developing economies, green industrial policies offer a pathway to enhanced competitiveness, job creation, and long-term resilience in a rapidly changing global economy.

Despite these opportunities, structural challenges persist. Changing geopolitical conditions, high capital costs, and protectionist policies threaten to slow the green transition; additionally, many developing countries are having to balance climate commitments with pressing development priorities. The current fragmentation of multilateral cooperation further complicates efforts to support low-carbon industrialization at scale.

This session will explore questions such as the following: What role must the state play in competitiveness, and job creation? How can governments effectively design green industrial policies that align with national development strategies and global economic shifts? What mechanisms—ranging from multilateral agreements to targeted financing instruments—can enable emerging economies to adopt [ML3] sustainable economic models? How can green technology deployment be accelerated to reduce transition costs while also ensuring continued material progress?

It will also explore actionable strategies for promoting green and inclusive industrialization approaches, addressing economic and political constraints and leveraging green technologies to drive sustainable economic development. It will highlight how a well-designed green industrial strategy can unlock new growth pathways and position developing economies as leaders in the industries of the future.