CFA Institute Sustainable-Investing Question Answer
A just transition in climate policy refers to:
A.
Ensuring that the shift to a low-carbon economy is socially inclusive and equitable
B.
Implementing carbon taxes to penalize polluting industries
C.
Divesting from all fossil fuel assets immediately
The Answer Is:
A
This question includes an explanation.
Explanation:
Ajust transitionensures that the move toward alow-carbon economy is fair, particularly forworkers in carbon-intensive industries. It promotessocial inclusion, retraining programs, and economic supportfor affected communities.
Carbon taxes (B) and immediate divestment (C) are strategies but do not define a just transition.
[References:, International Labour Organization (ILO) Just Transition Guidelines, UNFCCC Climate Justice Report, Principles for Responsible Investment (PRI) Just Transition Framework, ========, , ]
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