Aligning financial systems with a just transition - Recommendations for the 4th International Financing for Development Conference

Addressing both social and environmental objectives is essential to mitigate risks and seize opportunities related to the low-carbon transition. A just transition requires supportive financial flows and enabling financial systems. The objective of this brief is to inform the substantive preparations for the Fourth Conference on Financing for Development (FfD4), to be held in Sevilla, Spain, in July 2025. The brief describes how Member States can support mobilization of financial resources for a just transition by leveraging public development banks, incentivizing the use of financing instruments that attract private capital, developing comprehensive sustainable finance frameworks that consider social and environmental objectives, and developing capacities within the financial system.