Policy reform

Context

Policy reform is essential to creating the right economic and financial frameworks for the just transition and there is growing recognition of its importance, including among some Finance Ministers. But there is no clear understanding of what just transition policies are needed, how to finance them or what the quality of design and delivery should be.

How we will provide solutions

Working with the Grantham Research Institute’s Climate Change Laws of the World project team, the Lab will produce a first state-of-the-world assessment of just transition policies, with a focus on those that are particularly relevant for mobilising finance, such as core public spending (e.g. for skills, regional revitalisation and social protection), the use of fiscal incentives and regional/local financing. This will cover both policies that are expressly labelled as ‘just transition’ and other policy instruments that do the job. The assessment will also include the emerging field of just transition litigation. Alongside this, the Lab will conduct an initial review of the role of development bank policy and practice on the just transition, particularly in the field of blended finance in the Global South.