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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.

This week, 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.

For more, read Understanding Just Transitions in Coal Dependent Communities: Case Studies from Mpumalanga, South Africa, and Jharkhand, India

Participants

  • Sandeep Pai: Senior Research Lead, JTI, Senior Associate (Non-resident), CSIS Energy Security and Climate Change Program
  • Gaylor Montmasson-Clair: Senior Economist, Trade & Industrial Policy Strategies (TIPS); and Research Associate, Centre for Competition, Regulation and Economic Development, University of Johannesburg
  • Srestha Banerjee: Program Head for Climate Justice and Natural Resource Management at iForest

The views and opinions expressed in this podcast do not necessarily represent those of the Climate Investment Funds or Center for Strategic and International Studies.

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Just Transitions: Lessons Learned in South Africa and Eastern Europe

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This commentary summarizes a workshop held by the Climate Investment Funds (CIF) and the Center for Strategic and International Studies (CSIS) on just transitions in South Africa and Eastern Europe. More case studies on sub-Saharan Africa, Latin America, and developing Asia could shed light on just transitions in countries with fewer economic resources and more limited social safety nets. The commentary includes a table summarizing critical elements of case studies to help identify key insights and best practices in future research.

In South Africa, just transitions are urgent because market and policy signals indicate an inevitable decline of coal, yet a transition could harm workers and communities dependent on coal mining. Policies intended to elevate renewable energy in the country have also failed to support energy access for black communities or address issues of racial injustice. The author notes that just transitions in South Africa need to address issues of inclusivity and power relations.

Central and Eastern Europe is a focal point for just transitions as many countries in the region anticipate phasing out coal and emissions-intensive industries in the coming decades. This commentary cites several positive examples of community engagement and local participation in just transitions. However, case studies indicate that more should be done to boost input at the local level.

Towards a Just Transition Finance Roadmap for India: Laying the foundations for practical action

The report identifies priority actions for the financial sector in India to address social risks arising from the economic transition, with the help of a just transition framework that assesses the exposure by sector and region.

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This report, a product of the India Just Transition Finance Roadmap (JTFR) project, identifies some priority actions that financial institutions can take to support climate action that also delivers positive results in terms of livelihoods and sustainable development. It involves a review of existing practices, an assessment of exposure by sector and region, and the identification of some priority actions for the finance sector. The authors describe the just transition agenda as the “connective tissue” that binds climate goals with social outcomes.

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The authors suggest that the framework shows a possible mapping of risks to investments, highlighting the role that financial sector players, regulators, and policymakers need to play in ensuring that a just transition is achieved. Furthermore, they highlight how the framework can be used to provide guidance for investors to understand company operations in vulnerable regions, and whether there are any investment strategies capable of mitigating the risks in these regions. It can also provide guidance for investors seeking to align capital allocations with the just transition framework. From their conversations with investors, the authors identify how the just transition is still at an early stage of development in India and needs definition and how it needs to be placed in a core sustainable developmental context. Furthermore, the conversations also reveal that policy action is a crucial catalyst for a just transition and that shareholder engagement on just transitions is increasing.