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What is "Just Transition"?

Insights from historical cases of transition: Background paper for the EBRD just transition initiative

The report suggests a series of considerations for the European Bank for Reconstruction and Development (EBRD) to allow for the integration of just transition considerations into its decarbonization operations, using historical evidence from other deep structural changes.

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The authors seek to offer insights into how transitions impact people, economies, and the environment, as well as the extent of the effectiveness of different kinds of responses including the impacts of not responding. Moreover, it provides useful considerations related to the needs of those who lose out in society, while addressing overall concerns about inequalities in societies affected by deep structural changes. The report was used to inform EBRD’s approach to just transitions, as set out in the document “The EBRD Just Transition Initiative”.

The authors highlight that without measures to promote a “just” transition, resistance will likely undermine its pace. They draw inferences from other deep structural transitions, such as the steel industries in the United Kingdom (U.K.) and Newcastle, Australia, as well as the gold industry in Free State Province, South Africa, to offer insights into what to expect from a green transition.

The authors suggest a series of considerations for EBRD’s operational response to a just transition in order to create viable short-term and long-term solutions for local populations who are affected. Notably, they point out the need for strategic planning for impacted communities, governance structures, and state capacity to implement just transition actions, along with a holistic approach to regional economic development.

Social Innovation and the Energy Transition

This academic paper explores the meaning of social innovation and how it manifests in the context of energy transitions.

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The uptick in technological innovation requires new ways of organizing and governing energy supply and systems. This paper seeks to describe social innovation and its implications for energy transitions by analyzing it from the perspectives of behavioral science, social science, and governance. The authors posit that, within the context of an energy transition, social innovations include those that contribute to low-carbon energy transitions, civic empowerment, and social goals pertaining to the general well-being of communities.

The authors then explore common themes that emerged from the 20 article contributions they received for this study. These themes touch on a wide range of topics, including the relationship between technological and social innovation, community-based energy systems, participatory research approaches, how to stimulate behavior patterns, and even energy games. The authors conclude by suggesting areas of future research related to these themes.

The EBRD Just Transition Initiative: Sharing the Benefits of a Green Economy Transition and Protecting Vulnerable Countries, Regions and People from Falling behind

This paper sets out the aims, rationale, and broad approach to implementation of the European Bank for Reconstruction and Development’s just transition initiative.

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This paper examines how the European Bank for Reconstruction and Development (EBRD) will support progress in the economies where it invests. The paper outlines the aims, rationale, and broad approach to implementation of the EBRD’s just transition initiative, which aims to help the bank’s regions share the benefits of a green economic transition and to protect vulnerable countries, regions, and people from falling behind. The initiative builds on the EBRD’s experience of fostering transition toward sustainable, well-functioning market economies and focuses on the link between the green economy and economic inclusion. Working with national and regional authorities, EBRD clients, and other partners, the initiative emphasizes policy and commercial financing interventions that support a green transition while also assisting workers (particularly those whose livelihoods are linked to fossil fuels) in accessing new opportunities.

The paper includes an overview of the EBRD’s emerging just transition diagnostic and metrics for screening investments. This approach helps the bank screen certain regions and industries for vulnerabilities, assess the potential for various investments to advance just transition objectives and the bank’s core goals, and develop a set of policies and investment activities. This framework is especially useful in demonstrating how development finance institutions can link individual investments with broader regional plans, including in place-based investment.