Transition Economy

A transition economy, in a sustainability context, is an economy undergoing structural change toward lower greenhouse gas emissions, greater resource efficiency and reduced environmental impacts. This involves changes in energy generation, industry, transport, agriculture, buildings and finance through cleaner technologies, infrastructure investment, policy reform and evolving business practices. The transition includes both expanding low-carbon activities and transforming existing emissions-intensive sectors. A just transition also addresses effects on workers, communities and consumers, including employment, affordability and access to essential services. Progress requires measurable environmental improvements, rather than commitments alone. In other economic contexts, the term can refer to a shift from central planning to a market-based system.