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Equitable Framework and Finance for Extractive-based Countries in Transition (EFFECT)

image of Equitable Framework and Finance for Extractive-based Countries in Transition (EFFECT)

How can fossil fuel producers and mineral-rich developing countries design realistic, just and cost-effective low-carbon transition pathways? Taking into account the heterogeneity of low-carbon trajectories, the Equitable Framework and Finance for Extractive-based Countries in Transition (EFFECT) provides options for policy makers, industry and finance institutions in search of the answers. The report aims to help them seize the transformational opportunities linked to sustainable, low-carbon growth. It identifies ways of mitigating the transition’s impacts on fossil fuel industries, workers and poor households, and of preventing the risks of high-carbon lock-in and stranded assets. Recognising the shared responsibility of consuming and producing countries in reducing fossil fuel production and use, EFFECT advocates for transformative partnerships for technology transfer, green finance and capacity building. Ultimately, it supports an equitable sharing of the transition’s benefits and costs, both across and within countries.

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Decarbonisation of extractives and managing uncertainties

This Pillar provides guidance on how fossil fuel developing economies can manage the risks associated with the continuous reliance on fossil fuels in a global decarbonised economy, while at the same time balancing renewed energy security concerns. It provides guidance on how to reduce emissions from production, processing, transportation and refining through an enabling environment that incentivises the deployment of best available technologies and practices. In that regard, Pillar 1 sets out detailed recommendations for developing producer governments, fossil fuel companies, and importer countries to reduce methane emissions and routine flaring across the fossil fuel value chain, to integrate renewable energy into upstream extractive projects, and to explore the potential for the deployment of Carbon Capture (Utilisation) and Storage to reduce emissions from energy intensive and hard-to-abate industrial sectors over the long term.

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