Towards An Integrated Transition Planning Ecosystem

Achieving the ambition of the Paris Agreement will require a fundamental rewiring of the economy. Every government and every company will need to think strategically about how to respond and contribute. And capital will need to be mobilised at speed and scale. So, we need strategic transition planning across the economy. Momentum has built behind transition planning in recent years, and the topic remains a priority for the G20 – including in the Taskforce on Global Mobilization against Climate Change (TF-CLIMA). To date, however, the focus has been on private sector planning. This is not sufficient. Given the scale of transformation required, climate action will need to be embedded into almost every aspect of government strategy at national and sub-national levels. This Policy Brief proposes a framework for strategic national transition plans (NTPs). NTPs would sit at the centre of a wider integrated transition planning ecosystem – directing, financing, incentivising, coordinating and enabling private sector action. To facilitate integration, our framework aligns with the Transition Plan Taskforce (TPT) disclosure framework, which is increasingly used for private sector plans. Better targeted resource and capital allocation, and greater planning certainty, will give corporates and capital providers the confidence and the incentives to invest in the transition – crowding-in and scaling private climate finance. And more strategic overseas funding support for EMDEs will help to accelerate progress globally. NTPs would build from governments’ existing plans and strategies, including under current Nationally Determined Contributions (NDCs). They could, in turn, inform the next iteration ofNDCs, giving them stronger strategic orientation, deeper focus on whole- ! The authors would also like to acknowledge valuable contributions from Riona Bowhay and Thomas Tayler ofAviva Investors, Sustainable Finance Centre for Excellence. of-government planning, and closer coordination with transition planning across the cconomy.