The global financial system must transform to deliver a just transition away from fossil fuels and over to clean energy, according to a report from the newly established Just Transition Finance Lab. The lab has been launched by the Grantham Research Institute (GRI) on Climate Change and the Environment at LSE to support the concept of shifting from a just transition to system transformation. According to the report, both public and private finance will need a range of new financial tools and instruments to facilitate the just transition. Although financial institutions have started to take action to support the transition, their efforts remain insufficient, the paper highlighted. “The vast majority of financing decisions for climate action do not explicitly consider the social opportunities, social risks or social dialogue needed to ensure success,” said Nick Robins, Professor in Practice for Sustainable Finance at the GRI and the report’s lead author. “If this is not remedied, the world could miss out on the huge potential for social advancement in terms of more and better jobs, gender equality, community renewal and universal access to key goods and services, such as energy.”
A transformation of the $500 trillion global financial system is needed to deliver a just transition away from fossil fuels and into clean energy.
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— Just Transition Finance Lab (@jtf_lab) February 20, 2024
