This brief documents the European Commission's new approach to capacity development. European development assistance aims to develop capacity and produce sustainable results, in line with the European Commission (EC) commitment to the Paris Declaration on Aid Effectiveness and the Accra Agenda for Action. This is reflected in its approach to capacity development (CD) which: (i) recognizes the fundamental importance of local ownership of CD processes, (ii) encourages co-ordination of CD support by different donors, and (iii) seeks to provide adequate quality assurance. All CD processes supported by the EC are to be designed, managed and monitored with local partners in the lead to ensure that they are demand-driven and contextually appropriate.