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.
After its high-level launch at COP27, hosted by the Canadian Pavilion in Sharm El-Sheikh, Egypt on 15 November 2022, EFFECT will support policy dialogues and peer learning on the cross-border and equity dimensions of the low-carbon transition, the development of tailored low-carbon transition roadmaps in developing and emerging producers as well as the shaping of transformative and just transition partnerships.
Find out more about EFFECT, its governance structure and expected outcomes.
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