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Nigel Beck, Head of Sustainable Finance and ESG at RMB, discusses the outcomes of the B20 Energy Mix and Just Transition Task Force, as well as the growing role of transition finance, especially for Africa.
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What was discussed
- Key outcomes from the B20 Task Force: The Task Force identified three critical priorities for accelerating a just energy transition globally and across Africa: scaling transition finance; expanding industrialisation along the value chain; and modernising energy infrastructure.
- Mobilising transition finance: A major recommendation is increasing international transition financing from US$45 billion to US$330 billion by 2040 – enabling emerging markets to decarbonise and participate meaningfully in the global shift towards cleaner energy.
- Industrialisation opportunities: Capturing midstream and downstream activities such as mineral refining and component manufacturing could grow the value chain to US$11 trillion and create 38 million jobs in emerging markets by 2040.
- Understanding transition finance: Unlike green finance, transition finance focuses on reducing emissions in hard-to-abate sectors such as petrochemicals, energy and cement – making it essential for Africa’s pathway to net zero.
- RMB’s role in developing the asset class: RMB is working to channel global capital into African transition projects by developing a transition finance framework that clarifies what qualifies as transition finance. This supports the creation of instruments such as transition loans to enable clients to build credible decarbonisation strategies.
- Socio-economic and climate accountability: A key part of RMB’s approach is assessing how transition plans affect workers, suppliers and communities, while ensuring robust climate metrics, monitoring and reporting to maintain the integrity of transition efforts.
