The Just Transition Finance Lab was launched in February 2024 at the London School of Economics and Political Science with the goal of being a centre for experimentation and excellence in the financial solutions needed for a just transition. It is hosted by the Grantham Research Institute on Climate Change and the Environment.


The vision of the Just Transition Finance Lab is the transformation of the global financial system to achieve progress on climate and wider environmental goals through a people-centred approach. Our intention is for the Lab to show how the just transition can be both possible and investable.


The Lab has been established to accelerate practical solutions across four interlocking objectives:

  1. Design and deploy financial instruments and strategies
    At the moment there is limited traction in financing decisions
  2. Identify and achieve necessary policy reforms
    At the moment there are inadequate incentives and rules.
  3. Establish effective metrics to measure performance
    At the moment there is uncertainty over what ‘good’ looks like
  4. Stimulate innovation and generate case studies
    At the moment there is insufficient real-world leadership.

Cutting across the Lab’s four goals is a common priority: making sure that affected stakeholders are at the table in this process of financial system transformation.

The Lab intends to be catalytic and its working model will be one of partnership with banking, finance and investment professionals, business and enterprise, communities, trades unions and civil society, policymakers, legislators and regulators. It is based on the assumptions that collaboration between parties with a wide range of perspectives and experience will be essential, and that both practical and theoretical support will be needed to implement changes of the magnitude and pace required.

Strategic approach

The Lab’s strategic approach is informed by the urgency of the climate crisis and the need for systems transformations, including in the world of finance. For example, a key priority will be to identify financial solutions that can deliver the just transition across the energy system, particularly in the Global South. A sustainable energy system will be more job-rich than a fossil-dependent one, and there is a historic opportunity to make sure that the expansion of renewables and storage, energy efficiency and electric vehicles produces decent work with social dialogue, shared value for communities and universal access to clean energy. These gains will not happen automatically and the Lab will seek to work with partners to identify financial solutions that enforce labour standards and human rights, invest in the skills for the net zero energy workforce and resource the community empowerment that will be needed.

Phasing out fossil fuels is essential to stop the loss and damage caused by burning coal, oil and gas. This means early retirement of existing assets and ending the financing for new fossil fuel supply, objectives re-emphasised by the International Energy Agency in its 2023 Net Zero Roadmap. Here, COP28 in 2023 made a breakthrough with governments agreeing on “transitioning away from fossil fuels in energy systems, in a just, orderly and equitable manner, accelerating action in this critical decade, so as to achieve net zero by 2050.” Looking ahead, the just transition for workers, suppliers and communities affected by the phaseout of fossil fuels needs to be rooted in respect, with those impacted at the table so that they can shape programmes of human and regional investment. The Lab will seek to work with partners to make the just transition central to ending financing for new fossil fuel supply and mobilising the investment needed to support the people impacted by the progressive retirement of existing assets.

The Lab recognises that there are tough choices involved in delivering the just transition in energy as well as other critical systems. It will approach these challenges with respect, purpose and an evidence-based approach to financing the achievement of environmental goals in ways that have people at the heart.

We hope you will join us in this shared work to transform finance for the just transition.

Download a summary of the Lab’s objectives and strategic approach here