FINANCING A FAIR AND FAST ENERGY TRANSITION

The document outlines the necessity of a Global Just Transition to phase out fossil fuels by 2050, emphasizing the disproportionate economic burden on developing nations. It proposes a framework for financing this transition through new multilateral funds, the redirection of USD 5.9 trillion in annual fossil fuel subsidies, and systemic reforms to debt, taxation, and international financial institutions.

• To maintain the 1.5°C goal, fossil fuel extraction must decline immediately and cease worldwide by 2050, with less dependent countries required to phase out more rapidly to allow developing nations a reasonably just transition.
• Developing countries such as Nigeria, Angola, Indonesia, Iraq, Colombia, and Papua New Guinea face more severe economic challenges in diversifying away from fossil fuels than wealthy producers like Australia, the US, UK, Canada, and Norway, due to high dependency on extraction for government revenue, employment, and debt repayment.
• Tripling renewable energy to meet the 1.5°C goal would require an investment of USD $12 trillion by 2030, averaging USD $2 trillion annually, yet developing countries are hindered by a widening investment deficit and unequal costs of capital.
• The briefing proposes redirecting more than USD 5.9 trillion in annual fossil fuel subsidies toward renewable energy, economic diversification, and worker transitions.
• A Global Just Transition requires systemic financial reforms, including the use of IMF Special Drawing Rights, the implementation of global financial transaction taxes, debt cancellation for unfair or harmful loans, and the reform of World Trade Organization intellectual property rights to facilitate technology transfers.

APA

Fossil Fuel Non-Proliferation Treaty Initiative (2024). FINANCING A FAIR AND FAST ENERGY TRANSITION. https://www.fossilfueltreaty.org/s/Financing-a-Fair-and-Fast-Energy-Transition.pdf

Chicago

Fossil Fuel Non-Proliferation Treaty Initiative. FINANCING A FAIR AND FAST ENERGY TRANSITION. 2024. https://www.fossilfueltreaty.org/s/Financing-a-Fair-and-Fast-Energy-Transition.pdf.

Wikipedia

{{cite report |author=Fossil Fuel Non-Proliferation Treaty Initiative |title=FINANCING A FAIR AND FAST ENERGY TRANSITION |date=May 2024 |url=https://www.fossilfueltreaty.org/s/Financing-a-Fair-and-Fast-Energy-Transition.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{fossilfuelnonproliferationtreatyinitiative2024financing, author = {{Fossil Fuel Non-Proliferation Treaty Initiative}}, title = {{FINANCING A FAIR AND FAST ENERGY TRANSITION}}, institution = {Fossil Fuel Non-Proliferation Treaty Initiative}, year = {2024}, month = may, url = {https://www.fossilfueltreaty.org/s/Financing-a-Fair-and-Fast-Energy-Transition.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }