POLICYMAKERS' TOOLKIT FOR A JUST TRANSITION FROM FOSSIL FUELS

The document argues that a just transition requires wealthy, high-emitting nations to phase out fossil fuels first and fastest while providing financial and technological support to less wealthy countries. It outlines a broad menu of policy tools across resource management, financial markets, fiscal and monetary policy, economic diversification, and global governance to manage the decline of fossil fuel production and consumption equitably.

• To limit global warming to 1.5°C, there must be no new long-lead-time upstream oil and gas projects, no new coal mines or extensions, and no new unabated coal plants. Research indicates that achieving a 50% probability of staying within this limit requires leaving nearly 60% of 'developed reserves' of fossil fuels unextracted.
• The document identifies 'false solutions' such as carbon capture and storage (CCS), geo-engineering, and offsets as loopholes that prolong fossil fuel expansion. It notes that 79% of global operating carbon capture capacity is used for Enhanced Oil Recovery to produce more oil, and heavy reliance on CCS could cost $30 trillion more than a renewable energy route.
• Resource management policies should include ceasing new leases and licenses for fossil fuel exploration, revoking illegally granted permits, and raising royalties and fees to account for the social and economic costs of carbon.
• Financial market interventions are recommended to break the link between finance and fossil fuels, including banning fossil fuel financing, requiring banks to implement total emission reduction plans, and divesting state funds from fossil fuel companies.
• Fiscal policy recommendations focus on taxing high-carbon, high-wealth consumption (such as private jets and luxury vehicles) and taxing fossil fuel production profits and capital gains to discourage investment and fund just transitions.
• Monetary policy can be used to restrict capital flows to fossil fuels by adjusting interest rates, raising inflation targets to account for transition costs, and increasing reserve requirements for risky fossil fuel assets.
• Economic diversification for fossil-fuel-dependent countries should involve shifting toward low-emission sectors, such as aviation, education, tourism, and high-technology manufacturing, supported by public infrastructure investment.
• A just transition for workers and communities requires initiating community dialogues, providing skills retraining and financial support, and ensuring the Free, Prior and Informed Consent (FPIC) of frontline and fenceline communities.
• International support for developing countries must include delivering on commitments to the Green Climate Fund, Adaptation Fund, and Loss & Damage Fund, as well as waiving WTO intellectual property rules to facilitate the transfer of climate-safe technologies.
• The document highlights a 'debt-fossil trap' where developing countries must increase fossil fuel extraction to pay off debts. It calls for ambitious debt cancellation, particularly for debts accrued from fossil fuel projects, to enable a transition.
• Global economic governance should be reformed by establishing a 'climate peace clause' to prevent trade challenges against climate measures and by withdrawing from Investor-State Dispute Mechanisms (ISDS) that allow corporations to sue governments over profit losses from climate policies.

APA

Fossil Fuel Non-Proliferation Treaty Initiative (2024). POLICYMAKERS' TOOLKIT FOR A JUST TRANSITION FROM FOSSIL FUELS. https://www.fossilfueltreaty.org/s/Policymakers-Toolkit-for-a-Just-Transition-from-Fossil-Fuels.pdf

Chicago

Fossil Fuel Non-Proliferation Treaty Initiative. POLICYMAKERS' TOOLKIT FOR A JUST TRANSITION FROM FOSSIL FUELS. 2024. https://www.fossilfueltreaty.org/s/Policymakers-Toolkit-for-a-Just-Transition-from-Fossil-Fuels.pdf.

Wikipedia

{{cite report |author=Fossil Fuel Non-Proliferation Treaty Initiative |title=POLICYMAKERS' TOOLKIT FOR A JUST TRANSITION FROM FOSSIL FUELS |date=June 2024 |url=https://www.fossilfueltreaty.org/s/Policymakers-Toolkit-for-a-Just-Transition-from-Fossil-Fuels.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{fossilfuelnonproliferationtreatyinitiative2024policymakers, author = {{Fossil Fuel Non-Proliferation Treaty Initiative}}, title = {{POLICYMAKERS' TOOLKIT FOR A JUST TRANSITION FROM FOSSIL FUELS}}, institution = {Fossil Fuel Non-Proliferation Treaty Initiative}, year = {2024}, month = jun, url = {https://www.fossilfueltreaty.org/s/Policymakers-Toolkit-for-a-Just-Transition-from-Fossil-Fuels.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }