As soaring energy prices bring in sharp relief the challenges of the just transition to a greener economy, a new report suggest areas of intervention for policymakers as well as for banks and investors.
Sabrina Muller and Nick Robins at the Grantham Research Institute on Climate Change and the Environment, which is part of the London School of Economics, worked on the premise that a “nature-positive economy” could create 395 million jobs by 2030, but that these would be mirrored by job losses too – some 120 million fewer agricultural jobs in 2030 as a result of net-zero policies.
So Muller and Robins call not only for governments to implement the appropriate safeguards, but also on banks and investors to look at sectors like farming, forestry and fisheries with the same intent used for energy companies.
“Financial institutions such as commercial banks and institutional investors have been increasing their efforts to support a just transition in the energy system,” they write in a note accompanying the report. “This needs to be extended to the nature dimension through strategic commitment, corporate engagement, capital allocation and policy dialogue to reform the system conditions.”
The report highlights 15 examples of practical action that banks and investors are already taking. It makes for an interesting read.
You can find all details here.