Development Centre


Equitable Framework and Finance for Extractive-based Countries in Transition (EFFECT)

How can fossil fuel producers and mineral-rich developing countries design realistic, just and cost-effective low-carbon transition pathways? Taking into account the heterogeneity of low-carbon trajectories, the Equitable Framework and Finance for Extractive-based Countries in Transition (EFFECT) provides options for policy makers, industry and finance institutions in search of the answers. The report aims to help them seize the transformational opportunities linked to sustainable, low-carbon growth. It identifies ways of mitigating the transition’s impacts on fossil fuel industries, workers and poor households, and of preventing the risks of high-carbon lock-in and stranded assets. Recognising the shared responsibility of consuming and producing countries in reducing fossil fuel production and use, EFFECT advocates for transformative partnerships for technology transfer, green finance and capacity building. Ultimately, it supports an equitable sharing of the transition’s benefits and costs, both across and within countries.

Published on November 15, 2022

In series:OECD Development Policy Toolsview more titles


Executive summary
Overview: Context, guiding principles and key policy recommendations
Decarbonisation of extractives and managing uncertainties
Sustainable fossil fuel exit strategies and just transition plans
Systemic change and economy-wide decarbonisation
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