HOW A TREATY CAN CATALYSE JUST TRANSITION FINANCE OVERVIEW

The document outlines how a treaty could address the lack of official governance for a managed transition away from fossil fuels. It proposes three interconnected clusters of financial pathways: debt management to alleviate fiscal constraints, new forms of investment and trade to overcome barriers, and mechanisms to replace fossil fuel revenues at scale and speed. The brief suggests that a treaty could either directly establish these instruments or strengthen existing parallel processes to facilitate fund transfers, transparency, and economic diversification for developing countries.

• The Fossil Fuel Treaty Initiative identifies three interconnected clusters of proposals to address gaps in just transition financing for low and middle income nations: debt management to alleviate fiscal constraints, new forms of finance and investment to overcome barriers, and methods for replacing fossil fuel revenues through economic diversification and new revenue streams.
• A treaty can facilitate just transition finance by establishing internal functional instruments or by strengthening critical parallel processes. Potential treaty functions include raising and disbursing funds from developed countries and corporate entities to developing countries, creating transparency arrangements for finance flows, and removing barriers to accessing transition finance.
• Specific proposed mechanisms for debt management within a treaty framework include debt cancellation, debt suspension, debt conversions for climate or renewables swaps, and the creation of a debt resolution facility to assist members in renegotiating debts.
• Proposed investment and trade mechanisms include the establishment of a Global Just Transition Fund, reform of IMF Special Drawing Rights, redirection of fossil fuel subsidies, reciprocal market access arrangements, the use of catalytic capital, and the implementation of national or international taxes and levies.
• To replace fossil fuel revenues, the brief suggests mechanisms such as a 'Buyers'-Sellers' Club' to trade remaining fossil fuels within carbon budgets, compensating indebted countries to cease extraction, V20’s Climate Prosperity Plans, and the divestment of Sovereign Wealth Funds from fossil fuels into new economic sectors.

APA

Fossil Fuel Non-Proliferation Treaty Initiative (n.d.). HOW A TREATY CAN CATALYSE JUST TRANSITION FINANCE OVERVIEW. https://www.fossilfueltreaty.org/s/How-a-Treaty-Can-Catalyse-Just-Transition-Finance.pdf

Chicago

Fossil Fuel Non-Proliferation Treaty Initiative. HOW A TREATY CAN CATALYSE JUST TRANSITION FINANCE OVERVIEW. n.d. https://www.fossilfueltreaty.org/s/How-a-Treaty-Can-Catalyse-Just-Transition-Finance.pdf.

Wikipedia

{{cite report |author=Fossil Fuel Non-Proliferation Treaty Initiative |title=HOW A TREATY CAN CATALYSE JUST TRANSITION FINANCE OVERVIEW |url=https://www.fossilfueltreaty.org/s/How-a-Treaty-Can-Catalyse-Just-Transition-Finance.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{fossilfuelnonproliferationtreatyinitiativendhow, author = {{Fossil Fuel Non-Proliferation Treaty Initiative}}, title = {{HOW A TREATY CAN CATALYSE JUST TRANSITION FINANCE OVERVIEW}}, institution = {Fossil Fuel Non-Proliferation Treaty Initiative}, url = {https://www.fossilfueltreaty.org/s/How-a-Treaty-Can-Catalyse-Just-Transition-Finance.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }