Concessional finance could prove critical for just transitions in developing countries. Multilateral climate funds, with their range of tried and tested financial tools, could help drive a new wave of investments that put people at the center of a net-zero economy.
This paper highlights how the Covid-19 recovery window offers a rare opportunity for accelerating the green transition and examines recovery measures through the lens of a just transition.
Employment > Job creation and/or equality, Skills, Social protections
Government intervention > Other
just transition framework
covid recovery packages
health and unemployment insurance
Ben Cahill, Hugh Searight, Mary Margaret Allen, Rahul Madhusudanan
Climate Investment Funds (CIF), Center for Strategic and International Studies
Academic/research institution or journal, Development finance institution
This paper highlights how the Covid-19 recovery window offers a rare opportunity for transforming economies and accelerating the green transition. There is renewed openness to large-scale public investments, as governments seek to restore their economic health, boost long-term growth potential, and accelerate decarbonization. But the inequality, exposed by the Covid-19 crisis, also demonstrates the need for policies that can advance equity and justice.
The paper examines green recovery measures through the lens of a just transition. The authors use three key dimensions of a just transition—distributional impacts, social inclusion, and transformative intent—to assess green recovery interventions around the world. They highlight promising examples of just and green recovery measures in various countries and suggest policy insights, with principles and best practices for future action.
Report/Case Study; Guidelines, Strategies and Recommendations
This case study explores key dimensions of just transitions and draws lessons from the Climate Investment Funds (CIF)’s contributions to the energy transition, the expansion of renewable energy, and the implications for workers and communities in South Africa.
Employment > Job creation and/or equality, Skills
Government intervention > Regulation
Investment > Other
multilateral development banks
Michael Ward, Neha Sharma, Hugh Searight
Climate Investment Funds (CIF)
Development finance institution
This case study explores key dimensions of just transition in South Africa, which has a long engagement with the concept and was one of the first countries to include an explicit reference to just transitions in its Nationally Determined Contribution. The case study reflects on the contributions of the Climate Investment Funds (CIF), through its partner multilateral development banks, to the energy transition in South Africa.
The document uses the just transitions framework developed by the CIF and the Center for Strategic and International Studies to explore issues of social inclusion and distributional justice in South Africa’s energy transition. It provides a broader review of South Africa’s energy transition implications for national planning, and discusses social inclusion, financing, Covid-19 recovery programs, skills development and geographic disparities.