Introduction

The report examines how national transition planning can support a coordinated, whole-of-system response to climate change and sustainable development. It positions governments as central actors in aligning climate, economic and social objectives to achieve net zero while maintaining resilience, competitiveness and inclusivity.

The case for national transition planning

Fragmented policies and short-term decision-making are identified as key barriers to effective climate action. The report finds that delayed or uncoordinated transitions increase economic costs, heighten transition risks and weaken development outcomes. Integrated national planning improves policy coherence, supports investor confidence and enables more efficient capital allocation across sectors.

Countries with clear long-term strategies are better positioned to mobilise private finance, manage structural economic shifts and reduce exposure to climate-related risks.

Introducing recommendations for national transition planning

The report presents a framework built around five pillars: strategy, implementation, engagement, metrics and governance. These pillars provide a structured approach to aligning national climate and development goals.

Recommendations emphasise setting clear long-term targets, supported by interim milestones and sectoral pathways. Scenario analysis is highlighted as a tool to manage uncertainty and guide decision-making across energy, industry, transport and land use systems.

Maximising benefits and smoothing implementation

Effective implementation requires translating strategies into actionable policies, regulatory frameworks and investment plans. The report highlights the role of public finance in leveraging private capital, particularly for low-carbon infrastructure.

Workforce transition measures, including reskilling and social protection, are critical to minimise disruption. Early planning reduces adjustment costs and supports smoother sectoral transitions.

Inclusive stakeholder engagement is essential to build trust, ensure legitimacy and address distributional impacts. Involving businesses, financial institutions and communities supports more effective policy design and implementation.

Recommendations and action areas

The report outlines practical actions across the five pillars. Governments should integrate climate objectives into national economic planning, establish cross-government coordination mechanisms and strengthen institutional capacity.

Robust metrics and data systems are needed to track progress across emissions, economic performance and social outcomes. Alignment with international reporting frameworks enhances transparency and investor confidence.

Governance arrangements should define clear roles and responsibilities, supported by legal frameworks and independent oversight. Coordination between national and subnational levels is necessary to ensure consistent policy delivery.

Conclusions and next steps

National transition planning is identified as a critical enabler of climate action and sustainable development. By adopting a structured, whole-of-system approach, governments can reduce risks, attract investment and support a just transition.

Next steps include strengthening institutional frameworks, improving data systems and accelerating policy implementation to meet climate targets and development objectives.