Leading the Transition Locally
A policy toolkit to address fossil fuel production for subnational states and regions
Subnational states and regions are powerful drivers of both implementation and ambition in achieving the goals of the Paris Agreement. They are critical to achieving the transition away from fossil fuels. This report aims to explore and document the role of subnational governments in advancing a just, orderly, and equitable transition away from fossil fuel production as a critical element of the overall transition away from fossil fuels.
Policy Recommendations
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Subnational states and regions should diversify the local economy while pursuing a just, orderly, and equitable transition away from fossil fuel production. They should also develop roadmaps to transition away from fossil fuel production, which are time-bound, sequenced, and financed.
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Subnational states and regions should reduce greenhouse gas emissions from existing fossil fuel production operations, particularly Scope 1 and 2 emissions. Emissions-reduction measures should complement, not substitute for, a transition away from production.
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Subnational states and regions should strengthen multilevel engagement and policy alignment, engaging closely with cities, municipalities, and local communities on the energy transition.
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Subnational states and regions should engage in international cooperation and peer learning, including participating in initiatives such as the Beyond Oil and Gas Alliance, the Powering Past Coal Alliance, the Fossil Fuel Treaty, and COFFIS.
At the 28th United Nations Climate Change Conference, the historic UAE Consensus called upon all parties to the Paris Agreement to contribute to transitioning away from fossil fuels in a just, orderly, and equitable manner, accelerating action in this critical decade so as to achieve net-zero by 2050 in keeping with the science. This transition must include both consumption and production of fossil fuels. In this publication, we focus on the production of fossil fuels, since it is an area that is under-researched and under-equipped, but increasingly prominent in policy and academic debates on transitioning away from fossil fuels.
The subnational state and region level is critical to achieving this transition. While the vast majority of global fossil fuel production is managed by national governments and/or the private sector, their extraction facilities, workforces, and communities exist within states and regions.
Given the high economic and political dependence of certain states and regions on fossil fuel extraction, they will be critical movers in the transition. In addition, as the global energy transition unfolds, global demand for fossil fuels will decline, leading to lower revenues for subnational governments, and specific policies will be needed to actively diversify the economy and government revenue streams away from fossil fuels, alongside protecting regional workers and communities.
This report aims to explore and document the role of subnational governments in advancing a just, orderly, and equitable transition away from fossil fuel production as a critical element of the overall transition away from fossil fuels. Drawing on desk research and interviews with subnational governments, it presents a policy toolkit with practical guidelines and actionable insights for these governments.
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