This paper addresses a number of questions dealing with the links between private and public financial flows to developing countries and environmental performance in those countries. In particular it analyses how, and to what extent environmental considerations are shaping the different types of financial flows from OECD countries to developing countries, and through which tools, mechanisms and institutions this is being done. It also looks at how these flows interact in their environmental aspects?
Within the range of environmental issues being addressed, it looks at whether greenhouse gas emissions are considered and, if so, how this dimension of environmental performance is being integrated in investment flows to developing countries. Finally it looks at the conditions which are required in recipient countries to ensure that such flows are able to contribute to environmentally sound investment, and thereby to sustainable development.