Climate Finance for Just Transition: How the Finance Flows

The climate crisis continues to escalate, but the cost-of-living crisis and rising economic insecurity are fuelling resistance to climate action around the world. It is therefore time for climate policy makers to learn key lessons, and to make sure that people’s priorities are front and centre of every climate response. An approach to climate action known as “just transition,” which addresses the needs of workers, women and communities, must form the basis of climate action.

04.11.25

The alarming approach of the Paris Agreement’s 1.5°C warming threshold is a clear sign that action on climate change has been, and continues to be, deeply insufficient. There is an urgent need to phase out polluting energy and agriculture sectors, and to scale up renewable energy and agroecology. In spite of this, the two industries most responsible for causing climate change – fossil fuels and industrialised agriculture – continue to expand relentlessly.

It is therefore time for climate action to learn from its own successes and failures, and to update and evolve into a people-centred process shaped by just transition. In other words, it’s time for just transition to form the basis of “Climate Action 2.0” to unlock, unleash and accelerate climate transformations. Just transition approaches put people at the centre, ensuring that those most affected by climate and economic shifts are not left behind but are empowered and supported.

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