Fossil Fuel Transition
Source Metadata
| Field | Value |
|---|---|
| source | cpi |
| source_version | GLCF 2025 |
| source_id | CPI-ES-006 |
| sector | Energy Systems |
| subsector | Fossil Fuel Transition |
| mitigation | Y |
| adaptation | N |
| last_checked | 2026-05-26 |
CPI Definition & Scope
Fossil Fuel Transition in CPI's GLCF framework tracks finance directed at the managed phase-out of fossil fuel assets and infrastructure, as well as investments in transitional technologies that reduce emissions from existing fossil fuel systems. CPI captures investment in coal plant decommissioning, gas-to-renewable fuel switching, methane leak detection and abatement in oil and gas operations, and just transition programs for fossil fuel-dependent communities and workers.
Subsectors & Examples
- Coal Plant Retirement — accelerated decommissioning, repurposing of coal sites
- Gas-to-Renewables Switching — replacement of gas peaker plants with storage/renewables
- Methane Abatement — leak detection and repair (LDAR), flaring reduction, venting elimination
- Just Transition Programs — worker retraining, community economic diversification
- Carbon Capture on Fossil Assets — CCS/CCUS retrofits on existing plants
Mitigation & Adaptation Classification
Fossil fuel transition is classified as mitigation in CPI's framework. The direct reduction of greenhouse gas emissions through asset retirement, fuel switching, and methane abatement is the primary climate benefit. While just transition programs have social adaptation dimensions, CPI categorizes the finance flow primarily under mitigation.
LATAM Relevance
Fossil fuel transition is highly relevant for major hydrocarbon-producing countries in the region. Colombia's government has signaled interest in halting new oil and gas exploration, making managed decline and economic diversification critical. Peru's natural gas sector faces long-term transition questions. Costa Rica banned oil exploration in 2021 and serves as a model for small countries pursuing fossil-free energy systems. The Just Energy Transition Partnership (JETP) model is being explored for several Latin American countries.
Cleantech Taxonomy Crosswalk
Maps to Cleantech Taxonomy sector ES (Energy Systems) for fossil phase-out. Cross-references with XS (Cross-Sectoral) for just transition policy, IN (Industry) for industrial decarbonization, and IC (ICT) for methane monitoring technologies.