The paper sets out CDKN’s initial thinking on the drivers and challenges affecting climate compatible development (CCD) policy processes, based largely on the programme’s own national and subnational-level experiences. The authors argue that there is not a straightforward relationship between CCD policies and outcomes such as growth, poverty and equity. There will be winners and losers, and trade-offs among social, economic and environmental goals and between long-term and short-term benefits. This makes the political and institutional dimensions of CCD particularly challenging. Understanding and managing the political economy of CCD is instrumental to promoting and strengthening climate compatible development outcomes and overcoming barriers to implementation.

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