The Secretariat of the Facility-level Just Transition Working Group (F-JTWG), which is led by Climate Finance Asia, announces the release of a draft report of Facility-level Just Transition Guidelines for Banks at the 29th United Nations Climate Change Conference (COP29).
The F-JTWG was formed in August of this year to explore practical ways that commercial banks can integrate Just Transition best practices, at a facility-level, into financing the transition to renewable energy. The report aims to provide guidelines that banks can use to engage their clients and other stakeholders when developing Just Transition Plans.
The F-JTWG, which is comprised of around 15 major global and regional banks alongside non-profit organisations, including SMBC, Bangkok Bank, Climate Bond Initiative, International Labour Organization and Sustainability Economics, etc.
The draft report includes a Facility-level Guidelines Tool with the below six focus areas that banks can use to assess their alignment with Just Transition principles, and to engage with their clients for achieving a sustainable and equitable transition:
- Labour
- Livelihoods
- Gender
- Energy Security and Poverty
- Biodiversity
- Governance
Throughout the development of this draft report, international experts and practitioners in each focus area have been convened to share their experiences and insights during F-JTWG sessions.
Their contributions have been instrumental in shaping guideline that incorporates concrete, on-the-ground examples, ensuring that the recommendations are grounded in reality and practical.
As a result, the final guideline for banks will both draw upon the leading international standards for designing and measuring the success of Just Transition plans in each of these focus areas, and feature the unique, subject-specific recommendations developed by the F-JTWG.
Alan To, Senior Advisor to the F-JTWG and Group CEO of Climate Finance Asia, states: “The UN has forecasted that emerging markets and developing countries will need to mobilise US$2.4 trillion a year by 2030 for climate and nature spending, including an estimated US$85 billion a year for dedicated Just Transition activities in terms of workers and communities.”
“This F-JTWG and the draft report represents a significant step forward to enabling a Just Transition. By actively seeking feedback from our F-JTWG members, we aim to refine our guideline and ensure they resonate with the realities faced by communities and financial institutions alike. Our goal is to create a framework that makes it possible to achieve social equity when advancing the transition from coal to renewables to create a low carbon economy.”
“International Labour Organization (ILO) is delighted to be part of the F-JTWG,” says ILO. ”ILO introduced our initiatives such as Guidelines for a just transition towards environmentally sustainable economies and societies for all, also presented the ongoing project Skills Development and Responsible Business Conduct for Transition which has been implemented for creating enabling environment.”
Kasu Venkata Reddy, Co-Founder and CEO, Sustainability Economics remarks: “Financial institutions play a crucial role in driving a Just Transition. As we progress towards a net-zero future, it is imperative that we prioritise both the social and environmental aspects of this journey. Sustainability Economics is privileged to contribute to this noble cause and believes that the guidelines outlined in this report will significantly impact ensuring an equitable and inclusive transition for everyone.”
The draft report includes:
- A report on the activities, goals and outcomes of the F-JTWG
- A practical Facility-level Guidelines Tool for banks to use when engaging their clients and other relevant stakeholders
- A scorecard to evaluate the quality of the plans designed by banks and their clients (to be available later).
The Secretariat invites all F-JTWG Group members to review the draft guideline and provide feedback. The final guideline is expected to be published in Q1 2025, and aims to complement the GFANZ recommendations for managed phase out projects and accelerate the energy transition globally while protecting the livelihoods and well-being of communities that are currently dependent on fossil fuels.
About Climate Finance Asia
Climate Finance Asia (CF Asia) is a mission-driven business focused on tackling the climate challenge through the tools of sustainable finance. Founded in 2008 as Carbon Care Asia, CF Asia is a team of experienced environmental and social development professionals across Asia that deliver high-quality advisory services on sustainable finance in the region.
Learn more at www.climatefinanceasia.com
Enquiry: info@climatefinanceasia.com
Publish your content with EB Publishing
It's about who you reach. Get your news, events, jobs and thought leadership seen by those who matter to you.
