MSD for a just transition event: key takeaways

MSD for a just transition event: key takeaways

This event happened October 2025 at the ILO in Geneva and was co-organized by Sida and the ILO with support from the DCED secretariat

16 December 2025

The MSD for a just transition event brought together 100 practitioners in fields of private sector development; market systems approaches and a green and Just Transition. This included donor agencies, UN organizations, financial sector institutions,implementing INGOs, foundations and consulting firms. The intention was to gather the latest knowledge on these topics in one room, jointly get inspiration from 12 systems change field examples and come up with a few pointers to where work needed 1to move in the coming years.

The meeting was held in turbulent times. The UN is under massive pressure to scale down operations and the development cooperation system globally undergoing considerable budget reductions in many countries. At the same time climate change is accelerating and environmental degradation is reaching new extremes. Informality and a lack of jobs continue to be urgent problems in most emerging and developing economies. And this is where my reflection on the event starts.

1. There are people and institutions still fighting and working as to resolve socially, environmentally and economically pressing issues by means of development cooperation. We need to keep this exchange and mutual support going at a time when commitments and actions on green and socially fair development are far from the scale needed, and sometimes face a pushback
2. The meeting brought together a wide range of system actors, from global institutions like UNEP and WTO to donor agencies and project implementers on the ground addressing challenges from very different perspectivesresulting in an enabling setting to think differently and holistically about the interconnectedness of challenges for a Just Transition and private sector development
3. Systems thinking and doing is more important than ever in a world where economic resources risk being diverted from the common good. Coalitions of those investing in economic transformation, a green and just transition and decent work need a common vision and aligned strategies as to counter narratives and policies linked to a fossil fuel based and colonial past.
4. A Just Transition holds challenges as to make sure workers and enterprises in brown sectors can sail through the transition, but it also has an important opportunity side where we will see new enterprises and job creation potential emerging in the coming years. It is here where MSD can help shaping private sector development and the engagement of enterprises towards a Just Transition

But back to the more practical realms of what development cooperation can do connecting Just Transition and private sector development. Here are the six areas of work that were distilled out of the conference in which our collective action can move the needle:

• Aligning donor agendas for systemic impact: In times of shrinking resources, funding needs to be allocated to systems change more strategically. Effective donor and national actor coordination matters. Aligning donor funding at country and global levels, reducing overlap and unlocking private capital for systemic impact. Sida, SDC, FCDO, BMZ, AfDB, Luxembourg, Laudes Foundation and IKEA foundation responded to the call to contribute to the conference, more donors need to get on board. If you are a donor agency and want to understand the field better, join or (if already a member) participate more actively in the DCED.
• Ensuring no one loses in a just transition: How can MSD and JT programming address job losses, safeguard existing jobs, and better link policies and social protection systems? How can emerging economic opportunities be made relevant to vulnerable groups and those in situations of fragility? This requires (i) addressing effects on vulnerability in implementation and differentiated reporting on the implementers side and (ii) donors supporting funding structures tied to demonstrating the value for vulnerable groups and poverty
• Demonstrating value, evidence and learning: How can we get better at communicating MSD's value for advancing a Just Transition? How can systems thinking address implementation bottlenecks in translating enterprisedevelopment and job creation policies into effective action towards a Just Transition? How can green goals be effectively embedded socially and economically also in the poorest economies? Is there space for another community of practice to strengthen communication around systemic approaches and PSD in a just transition?
• Measuring and creating green impact without losing systemic depth: How can we practically track environmental results while staying true to systemic change principles? Closer coordination with the DCED and ILO's Just Transition Action Programme will help align definitions, indicators and data collection methods adaptable across contexts. Don't measure everything under the sun, find a limited number of metrics that are relevant for PSD and can be communicated well. Participants also called for shared guidelines for ex-post evaluations as to track progress and sustainable solutions over time
• Connecting just transition MSD to just transition finance: Financial systems analysis should start early and become more integrated with non-financial support for market creation. Better integrating financial system actors in market systems analysis and development can help design finance-informed interventions. A stronger engagement with local and global investors, financial institutions and regulators, aligning finance with NDCs, addressing how to fund the missing middle through development cooperation and better aligning with national just transition commitments.
• Translating global frameworks into country-level action: How can project-level evidence be used upwards to shape national green economic development and employment policies? How can we make sure NDCs move from policy commitments to implementation? How do we ensure that adaptation can be done in a systemic way? With it's grounding in local (economic and social) realities MSD can help using local experience to refine implementation of frameworks like NDCs, supported by cross-agency collaboration and contextualized systems approaches.

Sida has just extended the support to ILO's work on market systems development and a just transition until end 2027.

Please reach out to us (for example by writing to [email protected]) if you want to drive anything of the above forward and let's explore what we can do together!

A few more resources if this got you interested:

The press release on the event: https://www.ilo.org/resource/news/systems-approach-addresses-root-causes-decent-work-deficits-needed-just

For those that were at the event, here is the "howspace" with the agenda and the session contents including presentations done: https://msdforjusttransition.in.howspace.com/agenda

Market systems development for a Just Transition: https://www.ilo.org/publications/market-systems-development-just-transition-what-does-it-really-mean-donors

Mapping Just Transition in the NDCs: https://www.ilo.org/publications/mapping-just-transition-ndcs-30

Adapting at the edge. Climate adaptations in situations of fragility: https://www.ilo.org/publications/adapting-edge-accelerating-climate-resilience-through-market-systems

What is not green about MSD? https://www.ilo.org/resource/article/what-not-green-about-market-systems-development

Just Transition Finance: https://www.ilo.org/publications/just-transition-finance-tool-banking-and-investing-activities

Interested in a Just Transition?

https://www.ilo.org/topics-and-sectors/just-transition-towards-environmentally-sustainable-economies-and-societies

Interested in Market Systems and Decent Work?

https://www.ilo.org/projects-and-partnerships/projects/systems-change-initiative-sci-productive-employment

Merten Sievers, Geneva, December 2025