Where are the people in transition finance?

Transition finance – designed to help polluting companies deliver long-term strategies to reduce their carbon footprint – is a relatively new addition to the suite of sustainable finance instruments. Sabrina Muller and Nick Robins explain how and why the ‘just transition’ to net-zero, an inclusive process that takes into account the impacts on all people and places, needs to be fully incorporated.

 
Sustainable finance is set to be prominent again in 2022, not least to speed action on climate change and clean energy. The Communiqué of the G20 Finance Ministers and Central Bank Governors Meeting in February highlighted sustainable finance as being “critical to a green, resilient and inclusive global economic recovery” from COVID-19]. One area of focus for the G20’s Sustainable Finance Working Group (SFWG) this year is transition finance, with finance ministers pledging to “take actions to enable transition finance to support orderly, just and affordable transitions towards a low-greenhouse gas emissions and climate-resilient economy”.

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Πηγή: blogs.lse.ac.uk