WRI Finance Center

Join me, Systems Change Lab's co-director Rachel Jetel, and WRI's Climate Governance and Rights Director Jesse Worker on May 28 for a deep dive on transforming governance systems to work for people, climate, and nature! https://lnkd.in/e4-tEuj8

What do different global governance indices tell us about whether countries' transitions are likely to be transparent, accountable, and inclusive, implemented effective and fairly with minimal corruption? When measuring governance quality can be so context-specific, when are cross country comparisons helpful? And how can governance data be compiled and communicated in ways that help changemakers? These are not questions with easy answers, but we would love to hear from you. Please join me and the Systems Change Lab on May 28th!

What happens when “market neutrality” reinforces a carbon-intensive status quo? In a new Financial Times feature on the global push to transition away from fossil fuels, Nick Robins highlights the risks of treating today’s markets as neutral when they are already shaped by fossil fuel dependence. As countries, central banks and financial institutions navigate the transition, this conversation is becoming increasingly important for shaping climate and economic policy alike. Read the full article from the Financial Times: https://bit.ly/4uWfvLg #ClimateFinance #EnergyTransition #SustainableFinance #ClimateAction #FossilFuels

A few points stood out for me from the synthesis report developed by the private sector as input to the First Conference on Transitioning Away from Fossil Fuels (#TAFF) in Santa Marta, Colombia: 💰 Carbon Pricing + Central Role: Carbon pricing is identified as a cornerstone for transforming demand, but its sequencing and design are critical. Poorly timed implementation, raising costs before providing compensation or green alternatives, can erode public support. + Revenue Recycling: Carbon pricing revenues should be earmarked for decarbonisation and social protection, funding affordable green alternatives and cushioning the impact on low‑income households. + Political Durability: Success depends on coupling carbon pricing with targeted compensation, lifeline tariffs, and public procurement that shifts demand toward renewables. ♻️ Circularity + Beyond Recycling: Circularity is valuable but should not be treated as a silver bullet for full decarbonisation. The demand‑reduction policies will be a crucial policy level. For example, in steel, recycling limitations arise from scrap scarcity, quality degradation, and toxic additives. + Policy Shift: Governments should legislate phase‑outs of emission-intensive materials and chemicals rather than rely solely on recycling. + Efficiency Integration: Circularity must be paired with energy‑efficiency standards and passive‑cooling mandates in buildings to reduce overall energy demand. 🌍 Scope 3 Emission Reduction + Value‑Chain Collaboration: Scope 3 emissions, particularly from steel, cement, concrete, and aluminium, remain hard to abate. A joined-up approach across jurisdictions is needed to align policies and prevent carbon leakage. + Corporate Accountability: Companies should be legally required to publish standardised, science-based transition plans that include fossil-fuel phase-out schedules, budget allocations, and just-transition measures. + Benchmarking & Regulation: Independent benchmarking and integration into financial regulation are recommended to ensure credibility and comparability of corporate decarbonisation efforts. + Systemic Coordination: International cooperation is needed to harmonise standards and accelerate value‑chain decarbonisation, especially for traded materials. 🔑 Takeaway A reframing is needed for supply‑and‑demand transformation as a systemic shift, from subsidised fossil dependence to priced carbon, circular material flows, and transparent Scope 3 accountability. The emphasis is on sequenced policy design, social protection, and credible corporate action to make the transition both just and durable. Image Credit: CIDSE

How can we understand the strategic implications of April's historic Santa Marta conference on transitioning away from fossil fuels? One of the best overviews so far comes in this long read from Pilita Clark at the Financial Times. She describes the "undeniable" need to "hasten an end to fossil fuels" & the "messy, chaotic and far from unified" efforts to make this happen. Crucially, Pilita captures how important leadership is at moments of crisis like today, leadership from the two co-hosts at Santa Marta, Irene Vélez-Torres from Colombia & Stientje van Veldhoven from the Netherlands, as well leadership from those long calling for a fossil fuel phase out treaty such as Tzeporah Berman, Peter Newell, Andrew Simms & Mark Campanale. Six big themes come through in the her article: 🌎 The huge ability of clean tech to cut fossil demand (eg EVs in Colombia itself), particularly during yet another fossil energy shock.   ⛽ The old but deeply persistent problem of fossil fuel subsidies, reaching $920bn in 2024 & set to rise more this year. Overcoming vested interests is key.   🧊 The chilling effect of Investor-State Dispute Settlement (ISDS) provisions in investment treaties both in countries such as Colombia and the Netherlands. The Santa Marta group, North & South, has a unique opportunity to pioneer efforts to remove these breaks on sovereignty & sustainability. 🏦 The role of central banks to tackle the financial instabilities of fossil fuels, a theme that we at World Resources Institute & the Leave it in the Ground Initiative (LINGO) worked on, profiling a presentation from Ma Jun, former chief economist at the People's Bank of China, with a quote from me.   🗺️ The need for national fossil exit roadmaps to coordinate the whole of govrnment efforts that are urgently needed. This was one of the 3 workstreams launched at Santa Marta, supported by the new Science Panel for the Global Energy Transition & the NDC Partnership. 👩🚒 Across all of these, lies the centrality of truly inclusive processes, involving workers, Indigenous Peoples, communities, women and men. The #justtransition is often seen as a separate, specialist issue. Santa Marta made clear it is at the heart of making a success of the energy transformation. Santa Marta has unleashed an inspiring momentum. As Rachel Kyte says in the article "you have to take your hat off to governments that will stand up and be counted". This will intensify. Read it here: https://lnkd.in/eSUNaDTd Ani Dasgupta, Melanie Robinson, WRI Climate, Kjell Kühne, Philippe Ramos, Jwala Rambarran, Frank van der Vleuten, Frank Van Gansbeke, Irene Heemskerk, Ma Jun, Cedric Pacheco, Leslie Johnston, M.Sc., Santiago Lorenzo, Ulrich Volz, Carolina Useche, Elias Albagli, Eric Monnet, Sharan Burrow, Shanta Barley, David Carlin, Ioannis Ioannou, Network for Greening the Financial System (NGFS), Jean Boissinot, Ralph Regenvanu, Nathan Fabian, Kate Wolfenden

Fossil fuel dependence is becoming an increasing source of economic instability worldwide. At the Santa Marta talks in Colombia, governments gathered to advance cooperation on transitioning away from fossil fuels and scaling clean energy solutions. Reuters spoke with Nick Robins about why this shift is also critical for economic resilience and stability. Read the full Reuters article: https://reut.rs/4tAWbC8 #ClimateAction #EnergyTransition #CleanEnergy #ClimateFinance #COP31

💰 Countries are outlining major climate finance needs in their national climate plans, but tracking them consistently remains a challenge. Our new technical note explains the data and methodology behind the Climate Finance Requirements Tracker on #ClimateWatch, which monitors countries’ finance needs across mitigation, adaptation and loss & damage. Read more: https://bit.ly/3Rybtdu #ClimateFinance #NDCs #ClimateAction #ClimateWatch #Finance

Climate change is becoming an urgent global health challenge — but investing in preparedness can deliver major returns. New research from WRI Climate, commissioned by The Rockefeller Foundation, finds that every $1 invested in climate services for health could generate between $4 and $68 in economic benefits in developing countries. Early warning systems, disease surveillance and climate-resilient health facilities can help communities anticipate risks, protect lives and strengthen health systems before disasters strike. Read the study: https://bit.ly/4uufxKe

📆 Join us tomorrow, May 12, 12-1pm MT / 2-3pm ET, for the Local Funding Opportunities Webinar Series.   🌲 SESSION 3: Leveraging Conservation Finance Tools at the Local Level   This session will examine how local governments, utilities, corporates, and partners can use conservation finance tools to stretch public dollars, aggregated contributions, reduce risk, and advance the pace, scale, and impact of forest restoration and watershed projects. Register to attend online and receive the recording: https://lnkd.in/eqQYfKYe Speakers: - Todd Gartner, World Resources Institute (Moderator) - Bryan Rupar, Central Arkansas Water, Green Bonds - Natasha Collins, World Resources Institute, State Revolving Loan Funds - Jess Kirby, Summit County Utah, Utah Resilience Fund - Phil Saksa, Blue Forest, Forest Resilience Bond --- Creating and Leveraging Funding from the Local Level and Beyond is a four-part virtual Lunch & Learn webinar series hosted by the Wildfire and Watershed Initiative for Resilient Colorado (WWIRC). Designed for private and public sector partners including local government, special districts, and forest health collaboratives, the series provides practical, non-partisan education on local and regional public funding strategies that support wildfire mitigation, forest restoration, and watershed resilience. 🔗 Webinar details and recordings here: https://lnkd.in/ga8BUCWh Through real-world examples from Colorado and beyond, the webinars explore local taxing mechanisms, regional funding models, conservation finance tools, and the enabling conditions needed to move projects from planning to implementation. The series is intended to support peer learning, highlight lessons learned, and help communities identify sustainable funding opportunities that align with local priorities and capacity.