Leading the Transition Locally

The report argues that subnational governments are critical to the global transition away from fossil fuels because extraction facilities, workforces, and communities are located within their jurisdictions. It recommends that these governments diversify local economies, develop time-bound and financed transition roadmaps, and reduce Scope 1 and 2 emissions from existing operations. The document emphasizes that emissions reductions should complement rather than replace the transition away from production. It also advocates for multilevel policy alignment and international cooperation through alliances such as the Beyond Oil and Gas Alliance and the Powering Past Coal Alliance.

• Subnational governments are essential to the transition away from fossil fuels because, although national governments and the private sector manage most production, the actual extraction facilities, workforces, and communities are situated within subnational states and regions.
• Subnational states and regions face economic and political risks due to their dependence on fossil fuel extraction; as global demand declines, they will need specific policies to diversify government revenue streams and the local economy while protecting workers and communities.
• The report recommends a multi-pronged policy approach for subnational entities: creating sequenced and financed transition roadmaps, reducing Scope 1 and 2 emissions from current operations (without using these as substitutes for ending production), strengthening alignment with local municipalities, and participating in international peer learning initiatives.

APA

Kelly,, N. J. A. Y. P. W. J. (2026). Leading the Transition Locally. International Institute for Sustainable Development. https://www.iisd.org/publications/report/fossil-fuel-production-subnational-states

Chicago

Kelly,, Natalie Jones,Paola Andrea Yanguas Parra,Toby Walker, Jessica. Leading the Transition Locally. International Institute for Sustainable Development, 2026. https://www.iisd.org/publications/report/fossil-fuel-production-subnational-states.

Wikipedia

{{cite report |last1=Kelly, |first1=Natalie Jones,Paola Andrea Yanguas Parra,Toby Walker, Jessica |title=Leading the Transition Locally |publisher=International Institute for Sustainable Development |date=10 April 2026 |url=https://www.iisd.org/publications/report/fossil-fuel-production-subnational-states |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{kelly2026leading, author = {Kelly,, Natalie Jones,Paola Andrea Yanguas Parra,Toby Walker, Jessica}, title = {{Leading the Transition Locally}}, institution = {International Institute for Sustainable Development}, year = {2026}, month = apr, url = {https://www.iisd.org/publications/report/fossil-fuel-production-subnational-states}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }