The International Labour Organization (ILO), in partnership with the Swedish International Development Cooperation Agency (Sida), organized a two-day learning event on 30–31 October 2025 to explore how a Market Systems Development (MSD) approach can support climate action, social justice, and decent job creation. The event brought together over 100 global participants, including policymakers, donors, UN agencies, and experts, to identify ways to advance sustainable development through systemic market-based solutions.
Developing economies continue to face the harshest effects of climate change despite their minimal contribution to it. The ILO emphasized that the MSD approach helps countries transition toward greener and fairer economies by strengthening small businesses, reducing environmental impacts, and promoting policy reform for large-scale, lasting impact. It supports inclusive economic growth while fostering decent work opportunities.
Moustapha Kamal Gueye, Director of the ILO’s Priority Action Programme on a Just Transition, highlighted the urgency of action, noting that 2% of global labour productivity is expected to be lost by 2030 due to heat stress. He stressed that a just transition must integrate environmental, economic, and social dimensions, ensuring that sustainability benefits both people and enterprises.
The event functioned as a global learning platform, presenting insights from over 25 projects and more than 30 organizations worldwide. Discussions underscored the importance of linking market innovation with policy reform to create green and decent jobs. Participants also called for broader metrics that reflect both human and environmental wellbeing and greater coordination among donors to accelerate collective impact.
Dragan Radic, Chief of the ILO’s Micro, Small and Medium Enterprises Branch, stated that MSD can drive innovation and resilience among micro, small, and medium enterprises (MSMEs), especially amid shifting development finance landscapes. He noted that working with trade unions and employers’ organizations ensures that interventions align with the needs of both workers and businesses.
The ILO-Sida partnership, which extends through 2027, lays a strong foundation for implementing inclusive, human-centered strategies for a green transition. This collaboration underscores the ILO’s commitment to ensuring that climate action and sustainable enterprise development contribute meaningfully to decent work and equitable growth worldwide.
