High-Level Plenary: Accelerating the climate transition of emission-intensive sectors Launch of the OECD report ‘Mechanisms to prevent carbon lock-in in transition finance’

Oct 2, 2023 | 7:45 AM - 9:00 AM
Conference Room CC15

The credible Paris-aligned transformation of the manufacturing industry 's transformation aligned with a net-zero path will be critical in achieving global net-zero targets since the sector is a major source of total global CO2 emissions. Significant gaps and uncertainties remain about how governments and industry actors will deploy low-carbon technology options, as well as which enabling conditions, financing sources and instruments can unlock the needed investments, especially in emerging and developing economies. As one key solution, transition finance aims to unlock capital for emission-intensive industries, like manufacturing, to bring investments onto a Paris-aligned pathway. However, the transition finance market remains nascent and different approaches continue to bear risks of greenwashing and carbon lock-in, thus compromising the environmental credibility of this market. Building on the forthcoming OECD report ‘Mechanisms to prevent carbon lock-in in transition finance’, this plenary will discuss how transition finance can be credibly scaled up to mobilise investment for low-carbon technology options in high-emitting industries like manufacturing in developing countries, while avoiding risk of carbon lock-in.