# Just Transition

*ESG & Sustainable Finance — Finicade finance glossary*

A just transition means decarbonising without pushing the cost onto workers and communities dependent on high-carbon industries. It's the social dimension of climate policy and, practically, a political precondition: transitions that strand regions generate the backlash that reverses the policy. In finance it appears as a condition attached to transition funding and in the social pillar of ESG assessment.

**Also known as:** fair transition, transition for workers

**Related terms:** [Transition Finance](https://finicade.com/glossary/transition-finance), [Transition Risk](https://finicade.com/glossary/transition-risk), [ESG](https://finicade.com/glossary/esg), [Stranded Asset](https://finicade.com/glossary/stranded-asset), [Impact Investing](https://finicade.com/glossary/impact-investing)

Source: https://finicade.com/glossary/just-transition