The need for a just transition is set out in the Paris Agreement, the preamble of which cites ‘the imperatives of a just transition of the workforce and the creation of decent work and quality jobs in accordance with nationally defined development priorities’.
EBRD has been working with the MDB Paris Alignment Working Group to advance international support for a just transition ahead of COP26. In their High-Level Statement at the UN Secretary General’s Climate Action Summit in 2019, the MDBs committed to helping clients move away from fossil fuel use, through support for long-term low GHG emissions and climate resilient strategies, and by developing financing and policy strategies that support a just transition.
READ THE STATEMENT ‘High-Level MDB Statement’
Since then, EBRD has coordinated the joint work of the MDBs on just transition. Through 2020, the MDBs commissioned an independent technical paper and convened dialogues, with a focus on building MDB understanding of what a ‘just transition’ is in different contexts, and identifying the MDB policies, instruments and partnerships that can help support it. The joint-MDB memo of October 2020 summarises the findings of this work, and the focus areas for MDB attention ahead of COP26. These include developing High-Level Principles to guide MDB support for a just transition, advancing practice and peer learning, and establishing partnerships in support of a just transition.
READ THE MEMO 'MDB support for a just transition –
summary of progress and proposed next steps’
READ THE TECHNICAL PAPER ‘Multilateral Development Banks:
Supporting the Aims of a Just Transition – An initial stocktake’
The principles for MDB Support for a Just Transition were agreed through 2021, and published in October 2021. They build upon the reference to just transition in the Paris Agreement, and articulate how MDBs will support a just transition. They provide high-level guidance to ensure that MDBs consistently, credibly and transparently contribute to the aims of a Just Transition, while acknowledging that there is no ‘one size fits all’ approach, and allowing flexibility for tailored operational definitions and approaches that reflect MDB mandates and strategies, and country priorities.
READ THE ‘MDB JUST TRANSITION HIGH-LEVEL PRINCIPLES’
Access the Climate Investment Fund’s Just Transition Initiative Resource Library
Watch the recording of the side event “MDB Support for a Just Transition – From Common Principles, to Policy Support and Finance for a Just Transition” at COP26 where high-level discussion was hosted by the MDB Paris Alignment Working Group on Just Transition.