Theme · Just Transition

Just Transition

Addressing the effects of the transition on jobs, livelihoods, and households through fiscal policy and public investment.

16 action areas

Just Transition
Action areas
F1 · Reforming economic strategy through shaping national development and climate plans
F1a Participating in the development and implementation of climate and related strategies  How Ministries of Finance can support national climate and biodiversity strategies through economic analysis, fiscal policy, and finance. → F1a(i) Long-term low-emission development strategies (LT-LEDS)  Assessing the economic and investment implications of long-term climate strategies and connecting them with nearer-term policy decisions to support growth and competitiveness. → F1a(ii) Nationally Determined Contributions (NDCs) Assessing the economic implications of national climate commitments and supporting implementation to make commitments affordable and deliverable. → F1c Shaping 21st century industrial and innovation strategies  Contributing to industrial and innovation strategies that support low-carbon sectors, productivity, and employment. → F1d Developing investment strategies, including assessing investment needs  Assessing climate investment needs, establishing priorities, and connecting investment plans with public and private sources of finance. → F1e Identifying and developing bankable projects and programs Supporting project preparation and investment pipelines that translate national priorities into projects ready for financing and implementation. →
F2 · Fiscal policy
F2a Transforming economic incentives through carbon pricing, subsidy reform, and other fiscal policy measures Combining pricing, subsidy reform, and other fiscal measures to influence investment and consumption across the economy. → F2a(i) Carbon taxes and pricing, subsidy reform, and frontiers in environmental taxation Designing carbon pricing, fossil fuel subsidy reforms, and new forms of environmental taxation. → F2a(ii) Creating fiscal incentives and regulations for transforming key sectors  Creating fiscal incentives and regulation to support the transition in key sectors. → F2a(iii) Combining instruments into coherent policy packages Assessing interactions between fiscal and regulatory measures and bringing them together in coherent climate policy packages. → F2c Using public financial management and the budget to drive transformation Using existing PFM systems and the budget cycle to integrate climate and nature priorities into medium-term fiscal strategies and expenditure frameworks, track spending, and inform future allocations. →
F3 · Financing the transition
F3b(i) Greening national development banks and green investment banks  Using ownership and governance roles to support climate investment and risk management through national development and green investment banks. → F3b(ii) Greening sovereign wealth funds and state-owned enterprises  Bringing climate objectives and risk management into oversight of sovereign wealth funds and state-owned enterprises. → F3b(iii) Greening central banks and fiscal and monetary policy coordination How Ministries of Finance and central banks can coordinate on climate risks and the transition. → F3c Accessing deep pockets of private capital Working with financial institutions to develop financing arrangements and coordinate sustainable finance policies to support private investment in the transition. → F3c(i) Using financial sector policy to mobilize private capital for the transition    Working with regulators and financial institutions on climate risk, disclosure, and market frameworks that support investment in the transition. → F3c(ii) Using blended finance and risk sharing instruments   Assessing financing arrangements, including blended finance, which share risks and combine public and private capital for climate investment. → F3c(iii) Bringing sources of finance together in sustainable finance roadmaps Bringing public and private actors together around sustainable finance priorities, responsibilities, and implementation plans. → F3d Providing disaster risk finance and insurance for all Arranging financing before disasters occur to support timely response and recovery, protect vulnerable households and businesses, and reduce pressure on public finances. → F3e(iii) Setting up country platforms Coordinating development partners and investors around nationally led investment priorities and financing plans. →
C1 · Leadership capability
C1a Strengthening the mandate of Ministries of Finance Connecting climate responsibilities with mandates for economic development, macroeconomic stability, and sound public finances. → C1b Developing organizational climate strategies  Translating climate responsibilities into internal objectives and work programs. → C1c Formalizing governance structures & organizational set-up Assigning climate responsibilities and organizing internal coordination. → C1d Communicating on climate, the economy and public finances Explaining the economic and fiscal implications of climate action and communicating policy choices to different audiences. →
C2 · Coordination capability
C2a Coordinating climate action across government Supporting a whole-of-government approach to climate action by working with other ministries and levels of government to connect climate priorities with economic policy, budgets, and implementation. → C2b Engaging with external stakeholders Engaging businesses, financial institutions, civil society, and knowledge partners to understand economic impacts and strengthen the design and implementation of climate-related fiscal and economic reforms. →
C3 · Human and analytical capability
C3a Enhancing skills and expertise Building climate expertise through recruitment, training, peer learning, and collaboration with external specialists. → C3b Enhancing economic decision-making tools and data-driven analysis Using economic analysis to integrate climate into decision-making. →
Themes

Explore the other themes

Adaptation & Resilience

Managing climate risks to public finances and the economy while financing adaptation and resilience.

Energy Transition & Mitigation

Supporting emissions reductions and the energy transition through economic strategy, fiscal policy, and finance.

Nature & Biodiversity

Recognizing the value of natural capital in economic and fiscal decisions and financing its protection and restoration.