Equitable and Fair Financing for a Green Future

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by KnowESG
KnowESG_Fair and inclusive transition to sustainable future
Image courtesy of Dennis Schroeder | NREL

Around 200 stakeholders, including representatives from governments, climate funds, financial institutions, civil societies, academia, think tanks, and the private sector, convened in Bangkok in July for a two-day Just Transitions Forum.

The primary focus was on the crucial matter of financing transitions towards a low-carbon and climate-resilient future that aligns with the Paris Agreement and sustainable development goals.

During the event, participants emphasised the need to extend discussions of just transitions beyond the private and energy industries to encompass other sectors like transport, agriculture, and forestry. The forum explored strategies to integrate just transitions into national policy processes through inclusive governance and robust policy frameworks.

The forum showcased concrete examples of transitions from various countries. For instance, South Africa presented its national Just Transition Framework, focusing on a renewable energy-based economy with local industrial value chains.

India shared its Just Transition Finance Roadmap, emphasising innovative sources of financing and prioritising vulnerable groups like informal labour forces and women. The Philippines highlighted its Green Jobs Act and Green Jobs Certification Programme as effective ways to generate green jobs and foster sustainable growth.

However, it was noted that more detailed national and sectoral plans, along with increased climate finance from various sources, are essential to effectively addressing the challenges and opportunities of just transitions. International development finance and climate funds are vital in supporting developing countries with limited fiscal space and high debt levels.

The forum also emphasised the importance of holistic approaches, encompassing the workforce affected by transitions and safeguarding vulnerable populations, including local communities, women, youth, and those relying on natural resources. Protective mechanisms are required to ensure the well-being of affected communities, such as informal economy structures, small and medium-sized enterprises, smallholder farmers, and resource-dependent individuals.

The Just Transitions Forum, organised by UNFCCC's Standing Committee on Finance and co-hosted by the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) and the government of Thailand, aimed to present its outcomes at COP28 in Dubai later that year.

For more information about the forum, please visit the provided link.

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Source: United Nations Climate Change

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