Just Transition Finance: Pathways for banking and insurance
Promoting a just transition is essential to achieving broad-based support for ambitious climate action. In this collective effort, financial institutions play a major enabling role.
This publication highlights crucial elements, emerging practices, and examples of banking and underwriting activities in promoting a just transition and serves as a guide for banks and insurance companies.
Ensuring society’s climate and sustainable development goals necessitates a global economic transformation. A crucial element in this shift is a just transition toward resilient and sustainable economies, safeguarding vulnerable populations and capitalising on social and economic opportunities arising from climate and environmental initiatives. The financial sector plays a pivotal role by redirecting funds to green technologies and innovative ventures.
This report is a collaborative effort by the International Labour Organization (ILO) and the United Nations Environment Programme Finance Initiative (UNEP FI) backed by over 40 banks, insurance firms. and various stakeholders. It outlines the social and economic impacts of the low-carbon transition. It guides financial institutions, offering practical recommendations and emerging practices to integrate just transition principles into financial products and operations in alignment with the Paris Agreement and human rights frameworks.
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