THE PARIS AGREEMENT PLATFORM
2.1
Bridging the gap: using ØÖç×äãåçÞØÞãÜéäěãÖãØÚ the energy transition
To make a truly just transition, we must make polluting much more costly at the same time as making access to clean energy more accessible and affordable. Ely Sandler, research fellow, Harvard Kennedy School A
single silver bullet will not finance the energy tran- sition. Transforming our energy system will require thousands of projects, mil-
Second, clean energy must become less expensive. A just transition is not simply making fossil fuels more expensive. It means making renewa- ble energy accessible to all. Although clean electricity can often cost less than hydrocarbons, high borrowing rates in the Global South disproportion- ally burden capital-intensive clean energy projects, raising overall costs. Supporting infrastructure including transmission and grid capacity adds to the expense. Consequently, the true cost of renewable energy often surpasses the low headline costs of solar and wind. This is where climate finance is vital.
lions of financial decisions and billions of people changing their behaviour. This necessitates a scattergun of polit- ical, financial and scientific solutions. Yet all solutions must target two funda- mental necessities. First, polluting must become more costly. In economic terms, firms must internalise the negative externalities of emitting carbon dioxide. This is carbon pricing.
A coal power plant in the Netherlands, which passed a law in 2019 to phase out electricity generation from this fuel source by 2029
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Financing a Just Transition
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