As part of Climate Week NYC 2024, Sustainability Economics hosted a critical panel discussion on the topic of financing just transitions. The panel, titled “Financing Just Transition,” took place on September 26th at One World Trade Center, New York.
Moderated by Kasu Venkata Reddy, CEO and Co-founder of Sustainability Economics, the panel brought together an esteemed group of experts in sustainability and finance to explore innovative strategies for funding equitable transitions in coal-dependent economies.
The panelists included Cedric Rimaud, Deputy General Manager – Sustainability Solutions at SMBC Group; Chan-yau Chong, Member of the Board of Directors for Climate Finance Asia and Chief Executive Officer at CarbonCare InnoLab; Andrea Guerrero-Garcia, Director of Field Innovation at Growald Climate Fund; and Jamie Choi, Chief Executive Officer of Tara Climate Foundation.
The discussion commenced with panelists addressing the significance of just transitions, particularly in the context of transitioning from coal-fired power plants. They outlined key components of a just transition, emphasizing that it is not merely about avoiding problems, but rather creating benefits for the community.
Chan-yau emphasized that “A Just Transition encompasses not only the avoidance of challenges but also the creation of benefits for the community.”
Panelists delved into practical concerns related to achieving a just transition, highlighting the financial challenges that arise during the phase-out of coal. They discussed strategies for addressing these issues, such as creating diversified funding sources and enhancing collaboration between public and private sectors.
A significant focus of the panel was on suggested mechanisms and financial instruments for financing a just transition. Jamie Choi pointed out that while philanthropic funding is often viewed as a primary source of financing, it may not be sufficient to meet the comprehensive needs of affected communities.
She stated, “Philanthropic funding is believed to be what is going to contribute to the majority of the funding, but I don’t think that’s going to be the case.” Chan-yau Chong echoed this sentiment, asserting that reliance solely on philanthropic funding is inadequate for ensuring a robust just transition.
Panelists also explored governance structures that are best suited to facilitate a just transition, discussing the key metrics stakeholders should monitor to ensure successful implementation.
They emphasized the need for transparent governance and accountability mechanisms to track progress and evaluate the effectiveness of transition efforts.
Throughout the panel, the experts underscored that a well-structured just transition framework could facilitate economic stability and contribute to broader climate goals. By prioritizing inclusive finance, stakeholders can ensure that the transition to a sustainable future is both equitable and achievable.