Briefing: How is the transition to a climate-neutral economy made just?

Energy transition| Financing the transition


With the current level of the climate crisis, a global transition to a low-carbon economy is an urgent necessity, rather than an option. According to the IPCC 1.5°C special report (SR15), rapid action is needed to limit the global temperature rise to 1.5°C in line with the Paris Agreement. This will require key changes in energy supply and demand to be effected in a just manner. Learn how.

At the global level, some key characteristics of the 1.5°C target-consistent sectoral transformations include fully decarbonized primary energy supply by mid-century, large energy demand reductions across all sectors by 2030, large reductions of fossil fuel use, and rapid increase in the use of renewable energy. OECD countries should phase out coal energy entirely by 2030 the latest, phase out gas by 2035 and oil by 2040.

The shift is already happening in the power sector, as renewable energy sources become ever cheaper at an unprecedented pace, and the global push for institutional decarbonization starts to bloom with solid commitments. However, in order to achieve the 1.5°C target, the transition has to happen even faster. It will also have to be followed by other sectors, leading to a climate-neutral society.

This economy-wide transition needs to be just and fair, and ensure that people are not left behind, that they get the chance to adjust. Read our briefing to learn who, when and how needs to act to ensure the change is effective and fair, at the same time.

How is the transition to a climate-neutral economy made just?



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