Hello Community!

There is a lot to think about and implement after recent COP28. One of the key themes there was just transition.

Sharing this inforgraphics from HSBC asset management on how they define just transition and their role in it as an asset manager.  There is little doubt that just transition to green economy will impact sectors, countires and regions disproportioinately.

If you are (or were) tasked with preparing a strategy/view for your organisation on just transition what are the top 3 things you would start with?

Attachment(s)

Jan week 1 HSBC Just Transition.pdf   828 KB 1 version

Great article in the FT today on climate finance at scale in emerging countries. 

Paying polluters to stop polluting is sound economic logic

The article from the Financial Times emphasizes the urgent need for large-scale climate finance to transition emerging and developing economies to renewable energy. The current trajectory of global emissions, particularly from these regions, undermines efforts in advanced economies to reduce their carbon footprint. This makes it impossible to limit global warming to 1.5°C above pre-industrial levels, a critical threshold for avoiding severe climate impacts.

The article stresses the urgent need for large-scale climate finance to help emerging and developing economies transition to renewable energy. Global emissions are at an all-time high, and emissions from these regions are offsetting reductions in the West. Limiting warming to 1.5°C is critical, but the current carbon budget will be exhausted within five years at this rate. Advanced economies must support the fossil-fuel-to-renewable transition in developing countries, as the economic benefits far exceed the costs. Climate finance is seen not as charity but as essential investment to avoid climate disaster. Immediate, large-scale funding and cooperation are crucial to achieving global net-zero goals.

Read full article here

Share your thoughts on this and if you have an experience in investing in climate in emerging and developing countries, share your experience!