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What is "Just Transition"?

Just Transitions: Economic Diversification for Coal Dependent regions

This podcast looks at various opportunities and challenges for coal dependent regions in India and South Africa to create just and sustainable pathways to diversify their economies.

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Gaylor Montmasson-Clair with Trade & Industrial Policy Strategies (TIPS) and Srestha Banerjee with iForest join Sandeep Pai (CSIS) to explore the opportunities and challenges for coal dependent regions in India and South Africa to create just and sustainable pathways to diversify their economies.

Managing Coal Mine Closure: Achieving a just transition for all

This paper narrates the lessons and key considerations for planning and implementing a coal mine closure program, as derived from a review of global experiences and over two decades of World Bank assistance in coal mine closures to governments, enterprises, workers, and their communities.

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The paper, using a review of global experiences and the World Bank’s decades of assisting governments to close mines, provides recommendations to policymakers on how to plan and implement a coal mine closure and mitigate the impacts on the people, communities, and livelihoods. The article highlights the typical characteristics of coal mining communities, which influence the potential for regional recovery after a closure. Many coal-dependent regions continue to lag behind other regions socially and economically, decades after a mine has been shut down. It further highlights how there are few if any instances of fully satisfactory economic rejuvenation outcomes in mono-industry coal mining towns, thereby emphasizing the acute need for early and careful planning to deal with the impacts of a closure.

The paper identifies nine lessons learned from managing coal mine closures, which are organized under three themes—namely policy and strategy development; people and communities; and land and environmental remediation. The policy and strategy development theme emphasizes that coal mine closures require clear policy direction, large budget outlays, and significant stakeholder consultations. The section on people and communities underlines the importance of a Just Transition for All to meet the needs of workers, families, and the wider community. The land and environmental remediation strategies advance the importance of financial planning for environmental remediation and land reclamation and summarizes a range of possible financial assurance mechanisms available. Some of these mechanisms are mobility assistance, employment services and small business support services, social assistance payments, and various financial assurance mechanisms for mine closures.

Assessing vulnerability from coal dependence and need for a just transition

This paper identifies the linkages that surround the Indian coal economy as well as the possible economic, societal, and cultural repercussions of a coal phaseout in the major coal mining states.

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This paper—the first of a two-part release from The Energy and Resources Institute (TERI)—lays out the socioeconomic and environmental contexts of the coal economy in India. The authors highlight the detrimental impacts that the phaseout is likely to have on: the livelihoods and social surplus across coal-dependent states; the coal royalties that make up a significant portion of the no-tax revenue for a state; the stoppage of social empowerment initiatives and infrastructural losses; along with the unintended losses of the financial and social structures functioning within the gray market of the coal mining industry.

The authors also draw out the disproportionate impact on women and the vulnerable within these communities expected from the phaseout. The authors contend that in a mixed economy like India, a just transition takes utmost precedence, because it not only aims to formalize the deeply informal coal sector, but also seeks to achieve the critical characteristics needed to fulfill the notion of an “energy democracy”. The paper also discusses how the existing regulatory framework cannot comprehensively handle the complex interlinkages that exist within the subsector of the informal mining segment, part of which is both licensed and illegal and part of which is artisanal in nature.

Becoming fundable? Converting climate justice claims into climate finance in Mesoamerica’s forests

The article assesses the efforts of the indigenous and forest people’s groups in Mexico and Central America to promote claims to climate finance in terms of the different concepts of justice and identifies constraints to more transformative and reparative pathways to just climate outcomes.

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The article draws upon the experiences of a coalition of 10 Indigenous and forest peoples’ groups in Mexico and Central America—the Mesoamerican Alliance of Peoples and Forests (AMPB)—with regards to their navigation of the discursive strategies suited for accessing climate finance, particularly through the REDD+ instrument. The author uses the history of community positions toward REDD+ to suggest that the claims underpinning their engagement reflect conceptualizations of climate justice, which deviate from those that have dominated policy and popular discussions. The author assesses the feasibility of the AMPB-proposed Mesoamerican Territorial Fund that aims to directly capture climate finance, which would bypass problematic relations with national governments and traditional donors.

The article finds that although Indigenous peoples and local communities have made significant advances in terms of representation, recognition, participation, and concrete funding, the constraints of “becoming fundable” may hinder more transformative and reparative pathways to just climate outcomes. The requirement to “become fundable”, under the terms of the United Nations Framework Convention on Climate Change (UNFCCC) and major donors, is also a demand for the Indigenous peoples and local communities to become legible . This demand presents a clear tension with the member groups’ priorities of self-determination and “buen vivir”—a term that signifies an explicit recognition of the importance of nature for well-being. The author concludes that moving toward distributive justice may be much easier than a more critical interpretation of procedural justice. As such, efforts to support forest climate initiatives in these contested landscapes may benefit from moving away from results and performance-focused discussions toward a view of climate finance as among the means of achieving distributive, procedural, and historical justice on a territorial scale.

Workers and Communities in Transition: Report of the Just Transition Listening Project

The report synthesizes lessons from more than 100 listening sessions with labor and community groups to gather their perspectives on transitions as well as identifies how coalitions have come together and what pathways exist to a just future.

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The findings of this report are derived from more than 100 in-depth listening sessions, including qualitative interviews and focused discussion groups with workers and community members from across the United States, which were conducted in 2020. The sessions, typically lasting an hour or more, involved workers from dozens of unionized and nonunionized industries; union leaders; members of frontline communities, including environmental justice communities, communities of color, and Indigenous communities; along with leaders from labor, environmental justice, climate justice, and other community organizations.

The aim of the sessions was to capture the voices of the workers and community members who had experienced, are currently experiencing, or anticipate experiencing some form of economic transition. The report suggests how past transitions, driven by market forces, corporate entities, and shortsighted public policies, often leave workers and communities largely behind, with little to no support. As such, community trauma has gone unrecognized and unaddressed for years.

The report identifies several themes that have emerged through these sessions, including a picture of what transition entails; how coalitions have come together, particularly those including labor and environment groups; how common vision and strategies for change are built; and what pathways to a just future exist. The report also highlights how individual and collective understandings of transitions range widely, according to type of work, class, gender, race, age, political ideology, previous experiences with environmentalists or the climate justice movement, and relationships with unions and the community. The report affords insightful reading and covers recommendations for policymakers; labor and movement organizations; and future research to fill in the identified gaps in knowledge, including understanding how sectoral transitions such as automation, digitalization, hybrid working, and health care could be done in an equitable manner.

Just Transitions for the Miners: Labor Environmentalism in the Ruhr and Appalachian Coalfields

This report argues that labor environmentalism with a tradition of neo-corporatism is best positioned to support a just transition for affected workers with the help of examples from Ruhr (Germany) and Appalachia (United States).

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This report challenges the idea that corporatism holds back environmental reforms and prevents workers from meaningfully participating in the decisionmaking process of a coal transition. Using two case studies, it highlights how militant unions with a tradition of neo-corporatism are best positioned to demand just transitions for their members. The author draws on existing literature to identify industrial militancy as: radical opposition to managerial prerogatives; deep advocacy for workers’ rights; a belief in industrial democracy and rank and file control over working conditions; along with support for collective action.

The author makes a case for industrial militancy by using the example of the German neo-corporatist approach of Ruhr and Saarland, a set of practices whereby governments, unions, and employers set the industrial policy together. Through this collaborative approach, the unions and workers’ militants achieved success on behalf of the coal miners. The author compares their success to the limited corporatism approach of the Appalachian coal unions and argues that the failure of the United Mine Workers of America (UMWA) to achieve a just transition is due to a lack of democracy within the governing system and the absence of the union members’ militancy. The author suggests that the environmental and social achievement of the German coal unions stems from militant activism. A similar approach could benefit the UMWA in achieving a just transition for its miners and their communities. The author concludes that balancing the concerns of labor with the environment requires some degree of worker control over the industrial policy and disruptive militant activism.

Jobs in a Net-Zero Emissions Future in Latin America and the Caribbean

The report details a decarbonization pathway for Latin America and the Caribbean region, identifies expected labor changes in various sectors, and focuses on equity considerations needed in each of the affected sectors.

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This report takes a detailed look at decarbonization pathways in the Latin America and the Caribbean region and highlights the potential to create 15 million net jobs in sectors, such as sustainable agriculture, forestry, solar and wind power, manufacturing, and construction during such a transition. The report suggests that, with adequately-designed measures to ensure that these jobs are decent and that those who lose out in the transition are protected and supported, recovery plans can create climate benefits, while also boosting growth, tackling inequality, and making progress towards the Sustainable Development Goals.

This report is based on an input-output analysis using a Global Trade Analysis Project Power database, a commonly employed tool for assessing the direct and indirect environmental and socioeconomic impacts of decarbonization efforts. The study finds that only three sectors would shrink in the transition to a decarbonized economy: 1) fossil-fuel based electricity, with about 80,000 jobs lost, or more than half of the current number; 2) fossil-fuel extraction, with almost a third of the current number, or 280,000 jobs eliminated; and 3) animal-based food production systems, with five percent of current jobs lost, representing half a million jobs.

The report provides a sectoral overview of the region and highlights how it is still struggling with gender and ethnic inequalities, skills gaps, insufficient social protection, and a large informal sector, despite more than a decade of steady progress. Prevailing decent work deficits, inequalities, and dependence on fossil fuel exports are expected to make Latin America and the Caribbean particularly susceptible to the social and economic impacts of climate change. The report also identifies the critical need for fairness in this transition and devotes a chapter to identifying the sector-wise equity and justice considerations needed to allow a successful transition in sectors that include energy, agriculture, forestry, waste management, tourism, transport, and construction.

The Winds of Change: Environmental Justice in Energy Transitions

This article argues that renewable energy systems create procedural injustices just as much as fossil fuels and proposes a collaborative approach to renewable energy governance for a just energy transition.

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This article explores the environmental injustices created by the development of energy systems including renewable energy systems, such as the inequitable distribution of environmental hazards and the limited engagement that affected communities have in the decision-making related to the systems. It uses the example of wind energy, describing how wind farms could affect communities and the environment as well as discussing the lack of participation by frontline communities in the governance of renewable energy systems as a cause of procedural injustice. In addition, it proposes community-led energy production as a solution for a just energy transition.

Focusing on wind turbines, the author of this article argues that renewable energies create environmental injustices and health issues for local communities just as much as fossil fuels. The author further suggests that the lack of participation by frontline communities in the governance of these energy eco-systems could be an intentional approach by policymakers and corporations to avoid slowing down the scaling of technology. The author concludes by calling for a democratic approach to energy governance whereby participatory knowledge production is acknowledged as an “integral” part of the energy system. She also advocates for community-led energy production to ensure that technologies being deployed are compatible with the environment in which they live.

 

The Risk of Fiscal Collapse in Coal-Reliant Communities

This report analyzes the future of coal under various economic scenarios and the bond markets in three coal-dependent counties in the United States (U.S.) and makes recommendations on how these counties can avoid the fiscal collapse that can have an impact on regional economies through the bond market.

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This paper looks into the long-term implications of the federal climate policies on the coal-dependent counties’ economy across the U.S. and discusses what it would mean for future coal production. Additionally, it examines a potential spill out to the national economy through the national bonds market and proposes the measures necessary to both reduce the risks associated with bonds issued by coal jurisdictions and ensure the economic resilience of those counties.

The authors argue that coal mining across the U.S. has declined in the last decade, due in part to new environmental regulations imposed by the federal government. Focusing specifically on three counties (Mercer, Boone, and Campbell), they further analyze the regions’ fiscal exposure to coal and various carbon pricing scenarios, and predict a fall in the counties’ revenues under stringent climate policy scenarios.

Additionally, the authors examine the bonds issued by coal jurisdictions, arguing that municipal bonds are becoming volatile due to “budget pressure” and extreme weather conditions. Moreover, they caution investors against the “vague and incomplete” disclosures of risks associated with coal assets, citing the economic defaults of late 1970 and the early 1980s due to their negligence on risk exposure associated with nuclear power bonds. The authors conclude with recommendations for local economic diversification, urging the federal government to invest more in programs that ensure worker retraining and the provision of other social benefits. They further suggest combining climate policies with investment to ensure the financial health of coal-dependent counties.

 

Transitioning to Sustainable Agriculture Requires Growing and Sustaining an Ecologically Skilled Workforce

The authors suggest that agribusiness practices in the United States that pursue productivity as the primary goal, have been trending in an unsustainable direction and propose that place-based knowledge development, agroecological practices, and decentralized decision-making are key to sustainability in the agricultural sector.

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The article argues that agricultural practices in the U.S. are unsustainable and unjust to farmers, largely because of agribusiness and supporting policies. Over the past century, U.S. agriculture has been trending in an unsustainable direction, rapidly replacing knowledgeable people with non-renewable resources and eroding rural economies in the process. The authors suggest that U.S. policies, technologies, and economic pressures have tended to “deskill” rural labor—a trend that has been linked to labor under capitalism in general. They cite a national census that counted 6.5 million farms in the 1920s, with only 2.04 million left by 2017.

The authors argue that agroecological farming systems mimicking natural ecosystems that create tightly-coupled cycles of energy, water, and nutrients are already known to farmers and researchers. As such, they offer a well-studied pathway to an agricultural transition. A critical and under-appreciated feature of agroecological systems is that they replace fossil fuel- and chemical -intensive management with knowledge-intensive management. The authors argue that the biggest challenge in achieving agricultural sustainability is the replacement of non-renewable resources with ecologically-skilled people in ways that create and support desirable rural livelihoods.

The authors suggest ways in which U.S. policy could pivot to enable and support the ecologically skilled workforce needed to achieve food security and decent livelihoods. They highlight the need to: provide enabling conditions for new farmers to enter the system and sustain a decent livelihood; develop agroecological skills and supporting policy tools (or removal of policies that currently act as a barrier); decouple farmers from the trap of overproduction and low market prices; and strengthen farmer-to-farmer networks to promote knowledge exchange. The authors also briefly lay out the history of discrimination and injustice in the agricultural system in the U.S. and highlight the need for a foundational commitment to justice to guide the allocation of resources, affirm rights, and prioritize the agricultural needs of historically marginalized groups.