Advancing a Fair and Funded Transition Away from Fossil Fuels

At the 28th United Nations Climate Change Conference (COP 28) in 2023, countries for the first time agreed to “transition away from fossil fuels in energy systems.” However, since COP 28, global fossil fuel production and consumption has continued to increase. It is essential that all countries, especially those that consider themselves climate leaders, champion concrete and equitable pathways to turn the commitment to transition away from fossil fuels into action.

By Natalie Jones, Laurie van der Burg, Romain Ioualalen, Bronwen Tucker, Myriam Douo, Shady Khalil on June 13, 2025

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Policy Recommendations

• COP 30 should adopt a decision with differentiated timelines in phasing out fossil fuel production and use based on countries’ respective wealth, capacities, and historical responsibility, as well as an end to new fossil fuel exploration and the development of new coal mines and oil and gas fields.
• COP 30 should result in a declaration by leading heads of state and governments reiterating the commitment to transition away from fossil fuels and acknowledging that this commitment requires an immediate end to new expansion.
• The COP 30 decision on Article 2.1(c) should call on Parties to end international and domestic public financing, as well as finance toward capital expenditure of energy-related state-owned enterprises for fossil fuels.
• The Baku to Belém Roadmap to 1.3T should set out options for countries to free up public funds and increase fiscal space for a just energy transition and climate-resilient sustainable development, such as fossil fuel subsidy reform.

This briefing outlines recommendations for countries to advance the “transition away from fossil fuels” agenda at SB 62 in Bonn and COP 30 in Belém.

On a just transition away from fossil fuels, we recommend negotiators and countries support the following:

• A declaration by leading heads of state and governments reiterating the commitment to transition away from fossil fuels and acknowledging that this commitment requires an immediate end to new expansion.
• A COP 30 decision adopting differentiated timelines in phasing out fossil fuel production and use based on countries’ respective wealth, capacities, and historical responsibility, as well as an end to new fossil fuel exploration and the development of new coal mines and oil and gas fields.
• A bold just transition decision that directs climate finance to just transition policies and coordinates all the actors of just transition finance through the launch of the Belém Action Mechanism for Just Transition at COP 30.

On financing the transition, we recommend negotiators and countries support the following:

• A decision on Article 2.1(c) including a call on Parties to end international and domestic public financing, as well as finance toward capital expenditure of energy-related state-owned enterprises, for fossil fuels, in addition to phasing out fossil fuel subsidies that do not address energy poverty or just transition. They should submit national action plans including timeframes for doing so, with developed countries taking the lead.
• The Baku to Belém Roadmap to 1.3T should clarify what can and cannot be considered climate finance and explicitly exclude fossil fuels, false solutions, and carbon credits. It should prioritize grants and highly concessional public finance as well as set out options for countries to free up public funds and increase fiscal space for a just energy transition and climate-resilient sustainable development, such as fossil fuel subsidy reform.

Source : https://www.iisd.org/publications/brief/advancing-fair-funded-transition-fossil-fuels