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Just Transition

Just transition is the shift from an extractive to a regenerative economy, through a just and equitable process. To ensure that low-carbon transitions are truly just, it is critical to map the broad socio-economic implications of such transitions, and develop policy interventions, investment plans, financial mechanisms, and community engagement that holistically address the fundamental changes occurring as part of these transitions.

Rooted in country- and sector-specific contexts, CPI’s Just Transition work identifies pathways for sustainable and equitable development that accounts for the impacts on all key stakeholders at all levels from national to local—workers and communities, public and private employers, governments, financial institutions—and then identifies policy and finance tools to advance a just transition.

Leveraging our deep portfolio of climate policy and finance work and local expertise in emerging economies—including Brazil, India, and Indonesia—we use a data-driven approach that supports multi-stakeholder efforts at the sectoral, state, and national levels to inform decisions of policymakers and private actors, mobilize capital, and build capacity of local institutions.

More specifically, CPI’s Just Transition work includes:

1. Analytical Frameworks

Low-carbon transitions carry significant economic and social risks, but also create new economic opportunities that can simultaneously address existing socio-economic inequalities. To support policymakers in better understanding these complex issues and design effective policy solutions, CPI has developed analytical frameworks for just transitions of four main carbon-intensive sectors—electricity, transport, agriculture, and heavy industry (steel and cement)—with the following key components:

  • Financing Frameworks for policymakers and other critical stakeholders to create economic models and comprehensive financing approaches that can equitably manage transitions risks for those impacted.

2. Transition Policy Strategies

  • Diagnostic analysis to provide policymakers with a comprehensive assessment of the socio-economic status quo and potential transition impacts to provide a baseline from which to measure policy changes and impacts.
  • Policy development and implementation identifies, tailors, and assesses policy instruments to support country and sector-specific just transitions, as well as interim milestones.
  • Monitoring of policy implementation tracks and analyses the implementation of policies and funding devoted to just transitions.

3. Transition Assistance Finance Strategies

Low-carbon transitions will add significant burdens on governments and public funds. Our just transition planning includes Transition Assistance Finance Strategies, sector-specific policies and financial mechanisms designed to mobilize development finance from international public sector and private investors.

Key aspects of our transition assistance finance work include:

  • Recognizing costs and financial needs of the transition, taking into account the impacts on various actors and the corresponding needs for—and sources of—transition assistance finance.
  • Design of effective and equitable financial mechanisms to channel development and commercial finance to those impacted by the transition.
  • On-ground delivery of financial assistance to impacted stakeholders through capacity building efforts and extensive collaborations with relevant local implementing partners.

4. Effective, Inclusive Convening

None of the above work can be successfully implemented without bringing disparate groups together to provide input and expertise, create buy-in, and agree upon implementation. Leveraging our reputation as a neutral third party able to build bridges between policy, finance, civil society, and academic leaders at the international, national, and local level, CPI advances just transition strategies through:

  • Stakeholder Mapping to identify the actors involved, their interests, and their influence.
  • Convening local groups along with policy and finance decision makers to articulate and plan for the needs and interests of those most affected, develop shared standards, and reinforce action and ambition.

To learn more about CPI’s Just Transition work, contact any of our team members.

Latest work

Publication

Just Energy Transition: Economic Implications for Jharkhand

As part of CPI’s Facilitating Finance for a Just Transition initiative, this report examines the annual financial implications of energy transition for stakeholders in the state of Jharkhand, India. The report builds on previous work findings that Jharkhand is among the mineral rich states likely to face the most adverse short-term impacts of an energy transition.

Blog

JETP Resource Mobilization Plan: How Viet Nam can turn ambition into action

As various emerging economies are seeking to leapfrog coal and move to clean energy through Just Energy Transition Partnerships (JETPs), Viet Nam has passed an important first milestone by setting its Resource Mobilization Plan (RMP). CPI has outlined key takeaways from Viet Nam’s JETP and the RMP and identified some immediate actions to help them succeed.

Blog

Empowering Indonesia’s Path to Net Zero: Highlights from 2023

In 2023, momentum continued to build around Indonesia’s transition towards a more sustainable and net zero economy. Here are key highlights from our climate finance tracking, sustainable finance, and just energy transition workstreams to empower Indonesia’s path to net zero, as well as as a preview of what is in stock for 2024.

Publication

Inclusive Climate Finance: Improving Access for Marginalized Populations in Indonesia

This report, developed in partnership with Hivos Indonesia, aims to assess the current climate finance landscape in Indonesia and explore possible ways in which climate finance can be mobilized to target the marginalized populations.

Publication

U.S. Greenhouse Gas Reduction Fund investment needs data map

This data map displays estimated investment needs in Greenhouse Gas Reduction Fund priority project categories and in each U.S. census tract, in order for the country to reach net zero GHG emissions by 2050.

Blog

Highlights from Indonesia’s JETP Comprehensive Investment and Policy Plan

Indonesia’s JETP launched its Comprehensive Investment and Policy Plan (CIPP) on 21 November 2023. As CPI was heavily involved in the process, supporting both the JETP Secretariat’s overall editorial process and the Finance Working Group’s specific input to the CIPP, we are sharing key highlights from the document.

Blog

Indonesia's JETP is a glass half full

In this piece, CPI Indonesia Director Tiza Mafira shares her insights on the national convergence as well as coordinated global responses required for Indonesia’s JETP to succeed.

Publication

The Climate Finance Gap for Small-Scale Agrifood Systems

This report complements our recent Landscape of Climate Finance for Agrifood Systems publication by examining the climate finance going specifically to small-scale agrifood systems.

More results +

Team

Juliano Assunção

Executive Director, Brazil Policy Center

Tiza Mafira

Director

Vivek Sen

Associate Director

Natalie Hoover

Program Director

Muhammad Ery Wijaya

Senior Analyst

Yash Kashyap

Senior Analyst

Giovanna de Miranda

Communications and Program Manager

Rindo Saio

Senior Communications Associate

Saarthak Khurana

Senior Manager

Md Tariq Habib

Senior Analyst
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