Middle Income Countries (MICs) can lead shift to green industrial development

Manila, 28-29 April, 2025 - Middle-income countries (MICs) can increase their competitiveness and lead the global shift towards a green industrial system by ensuring that policies on climate resilience are integrated into their industrial planning, concluded experts at a panel discussion organized by the UN Industrial Development Organization (UNIDO) as a side event to the High-Level Conference on Middle-Income Countries (HLC-MIC). The panel focused on industries’ role in the transition to a green economy. 

Fatou Haidara, UNIDO Deputy Director General, explained that MICs currently produce a large share of the world’s economic goods, but also high carbon emissions; by implementing clear and coherent policies and investments for low-carbon, resource-efficient production, these developing countries are in a strategic position to advance sustainable industrialization.

“By aligning industrial expansion with environmental stewardship, MICs can unlock a new era of shared prosperity that safeguards our planet for generations to come,” she said.

UNIDO supports MICs in making the green transition through targeted policy advice, capacity building initiatives and facilitating investment and technological advancements. Programmes and strategies for MICs encourage decarbonization of industrial processes and promote circular economy business models.

In the Philippines, the organization’s technical assistance includes low-carbon cold storage solutions, initiatives on safe and sustainable industrial waste disposal, and support towards a shift to renewable energy.

“UNIDO's strategic framework for MICs is a shining example of how the UN system can provide dedicated and tailored support to industrial development in MICs,” said Ambassador Antonio Lagdameo, Chair of the Like Minded Group of MICs, and the Permanent Representative of the Philippines to the United Nations in New York.

Marcel Silvius, Country Representative for the Philippines of the Global Green Growth Institute, cautioned that while MICs have the opportunity to lead efforts for green industrialization, these countries must still overcome many challenges.

These include the difficulties of phasing out old-fashioned high-carbon ways of production and creating enabling policies and financing strategies for development. They also need to overcome a perception that the green transition is a risk rather than an opportunity and increase their capacity to carry out this transition, he added.

One tangible initiative developed by UNIDO to help MICs navigate the green transition has been the creation of an international framework for the development of eco-industrial parks, providing a holistic approach to sustainable industrial production. The framework includes 64 benchmarks and detailed guidance to governments and industrial park managers on how to meet them. 

According to Salil Dutt, Chief Technical Adviser of UNIDO’s Eco-Industrial Parks Programme, the programme has been implemented in 12 countries across Latin America, East Europe, Africa and Southeast Asia, the project aims to support policy and regulatory framework to incentivize industrial parks to transform into eco-industrial parks. He said the industrial parks have sparked innovation in countries like Indonesia, Egypt, Colombia and other participating countries in the programme, which may be replicated in other MICs.

(For more on how eco-industrial parks support sustainable development, see this article from Indonesia.) 

Knowledge exchange among eco-industrial parks is an example of south-south and triangular Industrial cooperation (SSTIC), which refers to exchanges of resources, technology, and skills between developing countries in the Global South that are facilitated by multilateral organizations like the United Nations. 

UNIDO SSTIC Director Shenhong Yao emphasized that SSTC enables the transfer of knowledge across borders and builds capacities to allow MICs to become engines of innovation.

“SSTC is vital and effective in promoting inclusive, sustainable industrial development in the Global South,” he said.

Philippine industry representative Danilo Lachica, President of the Semiconductor and Electronics Industries Association, echoed the sentiment that knowledge sharing is critical to boost the country’s sustainability initiatives. He said the country’s industrial sector has slowly begun adopting greener practices, but more needs to be done so these can be adapted by both smaller enterprises and large-scale industries. 

The successful side-event panel discussion marks a significant step forward in UNIDO’s ongoing partnership with MICs. As a co-organizer of the HLMIC and a collaborator in shaping the action plan for MICs, UNIDO has further solidified its commitment to supporting sustainable economic and industrial development in these countries. This engagement not only reinforces the organization’s strategic framework for partnering with MICs but also ensures that UNIDO remains responsive to their evolving priorities and challenges, paving the way for deeper cooperation and impactful outcomes in the years ahead.

This article was first published by UNIDO News.