ÌÇÐÄTV

This is a contribution by the researchers on the Climate Finance for Equitable Transitions (CLiFT) project to the submission to the Consultation on the Just Energy Transition Plan (JET-IP).The JET-IP is part of a multi-country funding initiative, the , by a coalition of developed countries to support a number of developing countries' transition away from dependence on coal and other fossil fuels.

Key Messages:

We identified three concerns in the financing package proposed by the JET-IP that could undermine climate and sustainable development objectives and fiscal alignment, and that potentially give rise to legal, regulatory, policy and governance risks beyond the JET-IP:

1. reliance on debt instruments as a means of financing the JETP-IP;
2. reliance on private sector financing and the use of official sector finance to ‘de-risk’ financial investments, notably through blended finance instruments and public-private partnerships (PPPs);
3. limited financing and social safeguards to fully operationalise a ‘just transition’.

Our contribution outlines key areas of fiscal, legal and social risks posed by these three features of the JET-IP. These include financial regulatory and policy risks, investment law risks and socio-economic transition and governance risks.

This contribution was submitted by:

• Professor Celine Tan, Professor of International Economic Law, ÌÇÐÄTV Law School, University of ÌÇÐÄTV, UK
• , Senior Lecturer, Essex Law School. University of Essex, UK
• , Assistant Research Professor in Public International Law, Human Rights and Sustainable Development, Faculty of Law, University of Antwerp, Belgium

and draws on the work of NeF DeF researchersLink opens in a new window.

Published: March 2023

Authors