Just Transition Finance - Pathways for banking and insurance

Promoting a just transition is essential to achieve 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 the 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 capitalizing 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, a collaborative effort by the ILO and the United Nations Environment Programme Finance Initiative, backed by over 40 banks, insurance firms and various stakeholders, 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.

Download the report 

Share your feedback
The ILO and UNEP FI are seeking your feedback to further shape the financial sector's contribution to the Just Transition. You can share your suggestions, comments and collaboration ideas with our team before 31 March 2024.