PARIS - The OECD FDI Qualities Initiative provides governments with the policies, data and expertise they need to encourage sustainable investment that is greener, promotes quality jobs & upskilling, improves gender equality, and contributes to a more productive and innovative economy.
Even before COVID-19, it was estimated that achieving the Sustainable Development Goals (SDGs) required financing of USD 2.5tn per year - a gap which may have since increased by 70%. Meanwhile, fulfilling the commitments made in the Paris Agreement to curb climate change requires investment in renewable energy to triple by 2030. Foreign direct investment (FDI) is an important source of finance to help meet these global commitments to sustainable development. Beyond the quantity of FDI, its quality also matters.
The OECD FDI Qualities Indicators provide governments with the data to measure FDI's sustainability impacts, while the OECD FDI Policy Toolkit is designed to help governments identify priorities for reforms to attract and retain sustainable investment. The Recommendation on FDI Qualities represents the first multilateral agreement on using FDI to achieve the SDGs. These outputs are supported by a rich programme of country and regional assessments and networks bringing global investment practitioners and policy makers together.
FDI Qualities Indicators
Foreign direct investment (FDI) is an important source of finance for sustainable development. But, beyond the quantity of FDI, its quality also matters. The FDI Qualities Indicators, first developed in 2019, seek to measure the impact of international investment on sustainable development, focusing on productivity and innovation, job quality and skills, gender equality, and decarbonisation.
The 2022 update of the FDI Qualities Indicators includes two special focus sections on Green Economy and Resilience to the COVID-19 Pandemic. These indicators serve to inform policymakers in using the FDI Qualities Policy Toolkit to identify policy and institutional reforms to attract sustainable investment.
FDI Qualities Policy Toolkit
Foreign direct investment (FDI) is an important source of finance for governments looking to meet global commitments on sustainable development. But, beyond the quantity of FDI, its quality also matters. The FDI Qualities Policy Toolkit complements the OECD Policy Framework for Investment by providing more detailed and tailored guidance on priorities for policy and institutional reforms that can enhance the impacts of investment in four areas of the Sustainable Development Goals (SDGs): productivity and innovation, job quality and skills, gender equality, and decarbonisation.
FDI Qualities Recommendation
This Recommendation will be the first multilateral instrument that provides guidance to governments on leveraging foreign investment to finance the SDGs, fulfil the commitments made in the Paris Agreement, and optimise the strength and quality of post-crisis recovery.
