As record temperatures and worsening climate impacts unfold worldwide, the need for a green transition has never been more pressing. But, if climate policies do not prioritize economic fairness, the shift to a net-zero economy risks deepening existing inequalities and unfairly distributing costs and benefits among workers, consumers and entrepreneurs.

This paper offers five key guidelines to ensure equity is embedded in climate policy—covering all stages from planning and implementation to tracking and evaluation. It also presents new country-level data on business sentiment regarding how the green transition affects economic and social equity.

This report is part of the Equitable Transition Initiative by the World Economic Forum, supported by the Laudes Foundation, and incorporates insights from extensive consultations with the Global Future Council on the Economics of Equitable Transition.