Equity and the Global Climate Finance Architecture: An Evaluation of the Just Transition Partnership (JETP) Framework
Equity and the Global Climate Finance Architecture: An Evaluation of the Just Transition Partnership (JETP) Framework
Just Economic Transition Partnership (JETPs) – implemented in South Africa, Indonesia, Vietnam and Senegal - are being hailed as novel platforms for supporting developing countries accelerate transitions to low-carbon and climate-resilient economies while addressing socio-economic transition risks. Despite limited study of their efficacy, donors have pledged almost USD29 billion to deliver climate finance through JETPs to meet decarbonisation and climate-resilience targets. This project will be the first global systematic analysis of the plans, processes and practices in all four JETP countries with the broader objective of understanding whether these multi-donor partnerships can serve as models of financing global climate transitions. The research examines: (1) the JETP model and investment plans’ effectiveness in meeting multi-dimensional challenges of financing ‘just transitions’; and (2) their suitability as platforms for scaling up climate ambitions in developing countries in the context of their intersections with countries’ existing domestic and international legal, policy and regulatory frameworks.
The United Nations Framework Convention on Climate Change (UNFCCC) and Paris Agreement have identified finance as central to meeting international legal climate obligations and driving policy and operational changes on climate law and policy locally and globally. Finance needs to be scaled up significantly to progress meaningful climate action. It is estimated that developing countries (excluding China) require USD3.5 trillion annually to mitigate and adapt to and address loss and damage from climate change by 2030 (van Tillburg et al, 2023). Clean energy investments alone will require additional annual flows of USD1 trillion to developing countries (GFANZ, 2022).
This project is the first interdisciplinary in-depth examination of a key initiative established to mobilise and deliver climate finance to developing countries – the Just Economic Transition Partnership (JETP) – focusing on the JETPs’ own terms as well as their wider legal, policy and operational framework. Our research investigates whether these partnerships can serve as viable models for financing environmental resilience and climate action.
