Countries with Moderate Income Levels (MICs) Could Facilitate Transition to Eco-Friendly Industrial Growth
Manila, 28-29 April, 2025 - Middle-income countries (MICs) can propel the global move towards a green industrial system by integrating climate resilience policies into their industrial development, according to experts at a panel discussion hosted by the UN Industrial Development Organization (UNIDO) during the High-Level Conference on Middle-Income Countries (HLC-MIC). The event centered on the role industries play in transitioning to a sustainable economy.
Fatou Haidara, UNIDO's Deputy Director General, underscored that MICs account for a substantial portion of the world's economic products, but they also generate high carbon emissions. By adopting clear and harmonious low-carbon, resource-efficient production policies and investments, these developing nations are poised to drive sustainable industrialization, Haidara explained.
"By uniting industrial growth with environmental responsibility, MICs can usher in a new era of shared prosperity that protects our planet for future generations," she stated.
UNIDO aids MICs in green transformation through tailored policy advice, capacity building initiatives, and facilitating investment and technological advancements. For instance, UNIDO's assistance in the Philippines encompasses low-carbon cold storage solutions, initiatives for safe and sustainable industrial waste disposal, and support for renewable energy adoption.
Ambassador Antonio Lagdameo, Chair of the Like Minded Group of MICs, and the Philippines' Permanent Representative to the United Nations in New York, commended UNIDO's strategic support to MICs' industrial development. Marcel Silvius, the Philippines' Country Representative for the Global Green Growth Institute, however, warned of challenges that MICs must confront.
Among these challenges are the hurdles of phasing out conventional high-carbon production methods, devising enabling policies and financing strategies for development, and overcoming the perception that the green transition is risky instead of advantageous. MICs must also bolster their capacity to implement the transition, Silvius added.
One initiative devised by UNIDO to aid MICs in navigating the green transition is the creation of an international framework for eco-industrial parks. The framework offers a comprehensive approach to sustainable industrial production, including 64 benchmarks and detailed guidelines for governments and industrial park managers to meet.
According to Salil Dutt, Chief Technical Adviser of UNIDO's Eco-Industrial Parks Programme, the programme is implemented in 12 countries, including Latin America, East Europe, Africa, and Southeast Asia. The initiative supports policy and regulatory frameworks to incentivize industrial parks to become eco-industrial parks, spurring innovation in countries like Indonesia, Egypt, Colombia, and others.
Knowledge exchange among eco-industrial parks is an example of South-South and Triangular Industrial Cooperation (SSTIC), which refers to the exchange of resources, technology, and skills between developing countries in the Global South facilitated by multilateral organizations like the United Nations. UNIDO SSTIC Director Shenhong Yao stressed that SSTC enables the transfer of knowledge across borders, fostering innovation in MICs.
Philippine industry representative Danilo Lachica, President of the Semiconductor and Electronics Industries Association, concurred that knowledge sharing is essential for advancing the country's sustainability initiatives. Lachica noted that the country's industrial sector has slowly started adopting greener practices, but there is still room for improvement to enable these sustainable practices to be adopted by small and large-scale industries.
The panel discussion in Manila marks a significant step in UNIDO's ongoing collaboration with MICs. As a co-organizer of the HLC-MIC and collaborator in shaping the action plan for MICs, UNIDO has reinforced its commitment to fostering sustainable economic and industrial development in these countries. This collaboration not only solidifies UNIDO's strategic partnership framework for MICs but also ensures the organization remains responsive to their evolving priorities and challenges, paving the way for deeper cooperation and impactful outcomes in the years to come.
- By leveraging eco-industrial parks, MICs can foster innovation and drive sustainable industrialization, as demonstrated through UNIDO's initiatives in the Philippines, such as low-carbon cold storage solutions and support for renewable energy adoption.
- The finance sector plays a crucial role in propelling MICs towards a green industrial system, as they grapple with challenges like devising enabling policies, financing strategies, and overcoming the perception that the green transition is risky, as emphasized by Marcel Silvius from the Global Green Growth Institute.
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