COP29: From LTS to transition financing strategies and implementation

The long-term low emission and resilient development strategies (LT-LEDS or LTS) shall inform the national plans of investments and regulatory reforms with short, medium and longer-term horizons. 

As such, LTS processes -with a view to encompass Just Energy Transition, Deep Decarbonisation Packages, and resilient development- feed the financial partnerships and strategic dialogue between countries and  the international financing institutions. Essentially, LTS and associated studies will help decision makers commit to ambitious development paradigm shifts.

To be realistic and implementable, they however also crucially need to be financially sustainable at the national level. Integrating transition risks modeling into the exercises with a view to looking at fiscal and financial consequences and opportunities (loss of fiscal revenue, CBAM schemes, impact of financing modalities on currency, areas of growth etc) , as well as at various financing options for various levels of economic agents and sectors becomes essential in that respect.Physical risks, as well as land use and eco-systemic limits are also part of the equation leading to implementation, of LTSsIn a context where facilities are made available to support the construction of LTS, such as the AFD’s 2050 Facility, this session will show-case: 

• Examples of studies implemented, with support of PDBs, as part of the elaboration of the LTS that integrated the aspects of transitions and physical risks and ecosystemic limits and were game changers for the public policies dialogue and the elaboration of relevant policies ,  
• Example of approaches focused on transition risks and macro-financial consequences
• Examples of approaches mainstreaming vulnerabilities and eco-systemic limits into LTS
• Lessons learnt from Morocco, Mexico, Colombia, Tunisia, Indonesia, Vietnam, South Africa.