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11 - Financing a Just Transition

How to Connect the Environmental and Social Dimensions of Structural Change

Published online by Cambridge University Press:  30 October 2020

By
Nick Robins
Edited by
Paul G. Fisher
Paul G. Fisher
Affiliation:
University of Cambridge
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Summary

Sustainable finance has a key role to play in achieving a just transition - in other words accelerating the shift to a net zero and resilient economy in ways that are fair and inclusive. This chapter sets out why a just transition is essential for the scaling up climate action and achieving wider progress on sustainable development. There is also a compelling rationale for action within the financial system to support a just transition. Institutional investors have been leading the way and over 150 institutions with $10 trillion in assets have now committed to take action. Their aim is to avoid systemic risk and deliver on their fiduciary duties. Policy action is aso needed which mobilises both public and private finance, particularly for place-based action. The chapter closes with a set of priority actions for the European Union.

Keywords

Sustainable finance just transitionclimate changeinequalityinclusive economy decent workcommunitiesinvestment strategyshareholder engagement
Type
Chapter
Information
Making the Financial System Sustainable , pp. 237 - 257
Publisher: Cambridge University Press
Print publication year: 2020

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