Financing a just transition through the bond market
This position paper from the Just Transition Finance Lab explores how green, social, sustainability and climate transition (GSS+) bonds can help finance a just transition. It argues that sustainable debt markets are well positioned to do so, building on the existing market infrastructure for GSS+ bonds, including their use-of-proceeds mechanisms and impact reporting. It proposes a framework based on four elements: intent, interlinkage, involvement and improvement. The paper also identifies what will be needed to move from guidance to wider market practice. Developed through a year of dialogue and feedback with a dedicated Community of Practice of market actors and community organisations, the paper is intended as a practical starting point for making just transition considerations a more routine part of sustainable debt issuance.