place-based strategies – Just Transition Initiative

Summary

This report analyzes the U.S. federal programs that could help fossil fuel–producing regions transition to a low-carbon future. It divides these programs into those that target local or regional economies driven by natural resource development (including timber and agriculture as well as fossil fuels) and those with broader geographic or economic scope. The authors suggest that the former, place-based development approaches can be especially effective.

The report examines three regional economic approaches that might be successful in a just transition context: offering capacity-building programs and technical assistance, financially supporting public and community organizations, and financially supporting private firms that may otherwise struggle to access funding. The authors also indicate that such efforts would require coordination among federal, state, and local officials and that substantial scaling up would be required for them to have a meaningful impact.

The report identifies programs that target natural resource–dependent communities and highlights a handful of initiatives that could aid just transitions efforts. For example, the Economic Development Integration program coordinates multiple economic development initiatives across agencies while making deliverables more efficient, and the U.S. Department of Agriculture’s rural development programs provide technical and financial support for public and private rural institutions. An extensive appendix in the report details many federal policies in full.

Summary

As the largest part of the United Kingdom’s financial system, the banking sector must help mobilize the quantity and quality of finance needed for the country to achieve its goal of a net-zero economy by 2050. This paper examines how can banks can best respond to the social opportunities and risks from the transition to a resilient net-zero economy, calling for banks to see the challenge as an opportunity to renew their social license to operate.

The authors argue that the main way banks can help achieve a just transition is by supporting their customers and clients. This means understanding the requirements of different customer segments (particularly under-served segments), the barriers they face, and the financial solutions that could enable them to succeed in the transition. The authors examine the specific needs and challenges of banks’ customer groups, specifically individuals/households and small and medium-sized enterprises (SMEs). They also emphasize the need for place-based action and suggest that locally rooted banks and financial institutions can help “anchor” transition efforts.

They conclude by emphasizing the need for a policy framework that provides policy and market incentives for financing just transitions and for fostering broader systems innovations. Among other things, these innovations should help establish the necessary capital mix for a zero-carbon economy and address the traditionally risk-averse attitude of financial institutions.