The publication contributes to the increasingly important debate of integrating finance flows for just transition approaches into the global climate finance architecture. In this context, the publication emphasizes the needs for just transition finance of commodity-dependent developing countries. Previously debates on just transition approaches mainly centred on the energy sector and often focussed on developed country perspectives. Thus, this new CFAS publication aims to broaden the discussion on just transition finance and reflects an emerging perspective that goes beyond the energy sector and takes into account factors such as dependency on export commodities and countries' development status.
A significant number of developing countries critically require comprehensive just transition approaches and their financing, due to their economic dependence on energy as well as agriculture and forestry commodities. While the export of energy raw materials will be increasingly affected by global mitigation measures (transition risks), agriculture and forestry sector products are highly vulnerable to climate change impacts (physical risks). Due to the future stranding of resources and the need for massive restructuring of sectors, just transition approaches are essential to attenuate effects for affiliated jobs and workers. In the publication we discuss how existing and potential new climate finance channels can support the preparation of adequate and effective socially just response measures.
