Financial instruments and strategies

Context

The just transition is not routinely considered within financial transitions and instruments. The financial system is complex and each form of finance has different purposes and mandates. Consequently, how financial institutions respond to the just transition will need to be equally diverse. A highly targeted approach will be needed as institutions carefully identify how just transition factors can be incorporated into all financial decisions.

How we will provide solutions

The first goal of the Just Transition Finance Lab is to design and deploy financial instruments and strategies that show how the just transition can be realised. The Lab will focus on providing granular solutions to pivotal aspects of the financial system. The just transition imperative has to be translated into operational financial practice at the institutional level in commercial banks, institutional investors, development banks and other bodies, and across every asset class and all parts of climate and environmental strategies in the financial system. The Lab will work to show how this could be done and then promote adoption of effective and efficient approaches.

The Lab team has a track record of such outputs (produced through the Grantham Research Institute prior to the Lab's launch). These include:

- Just transition finance tool for banking and investing activities (2022)