Market systems development for a just transition: What does it really mean for donors and practitioners?

A transition to sustainable economies is essential. Globally, this will involve economic restructuring, and downsizing carbon-intensive sectors and technologies while scaling up sectors and technologies that are environmentally sustainable and more resilient to climate change. This means social and economic opportunities on one hand and risk for enterprises and workers on the other.

This brief explores the potential contributions that market systems development (MSD) programming can make towards a just transition in developing countries. It discusses some concrete steps that funders and practitioners can take to be intentional in applying the MSD approach to promote a just transition, and the role that MSD programming can play in supporting countries achieve a shift towards environmentally sustainable economies that maximize opportunities for inclusive growth and decent work, while minimizing challenges.

This brief is a joint product by the ILO Systems Change Initiative and ILO Priority Action Programme on Just Transitions Towards Environmentally Sustainable Economies and Societies (AP/JT).