Ensuring buy-in for long, loud, and legal policy and price signals requires strong collaboration with a wide range of stakeholders. Such dialogue can inform the design of government interventions and secure ongoing commitment by both public and private actors in the transition to a greener economy (Jones, 2012).
Dialogue with the financial sector throughout the process of green policy, regulation and financial planning processes can significantly reduce the cost of transitions, by allowing for mutual understanding of the respective risk profiles of public and private actors, uncovering opportunities to actively mitigate risks through complementary actions. In the case of the California Renewable Energy Program, a thorough upfront stakeholder consultation process which included representatives from industry and utilities enabled broad public commitment to the program and facilitated the development of the California Clean Energy Jobs Act.
In South Africa, there was extensive consultation with key stakeholders during the preparation of its National Climate Change Response Strategy. The consultation and research programs funded through international co-operation informed the design of the Green Fund so that it could target areas of greatest need. The initial call for proposals was 12-times oversubscribed which demonstrates that the fund was on target.
Close dialogue between countries and development partners can help to enhance the effectiveness of a financing program with green growth objectives. This was true in the case of a climate change policy loan for Vietnam, where the government and donors worked together to define policy actions through regular technical meetings. These meetings were also used to share information on progress and lessons learned during implementation of policy actions, and provided opportunities to identify challenges at early stage and introduce any required modification.