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Podcast

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.
November 15, 2021

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

Download the transcript

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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Authors

Just Transition Initiative Team

Just Transition Initiative Team This publication was written by the Just Transition Initiative team, a collaborative effort by the Center for Strategic and International Studies and the Climate Investment Funds.

Related
from the Resource Library

Brief/Definitions and Concepts; Guidelines, Strategies and Recommendations
Dec 2019

A Just and Equitable Transition

This policy brief discusses the meaning and importance of a just and equitable transition to a low-carbon economy and provides action-oriented recommendations for the City of Edmonton in Alberta, Canada.

Geographic Scope
Canada
Sectors
General
Detail
Focus Areas
Employment > Job creation and/or equality
Government intervention > Public finance, Regulation
Inequality and/or poverty > Gender inequality, Other
Justice
Social and/or cultural impacts > Other
Keywords
carbon budget
equity
low-carbon gentrification
decarbonization
carbon-neutral
subnational plan
task force
By
Richard Boyd
Publishing Organization
City of Edmonton
Government
Summary

This policy brief discusses the meaning and importance of a just and equitable transition for the City of Edmonton in Alberta, Canada, as it pursues more ambitious emissions reduction policies. It proposes actionable recommendations to support the city’s updated Community Energy Transition Strategy.

The author emphasizes the importance of social justice in formulating and implementing climate strategies. The author advises against a “narrow view” of just transitions that focuses only on employment issues and instead promotes a broader view of social equity. With this in mind, the author explores the potential injustices of a carbon-neutral transition in the City of Edmonton. The author concludes with an Edmonton-specific framework for a just and equitable transition that includes both general guiding principles and action-oriented recommendations for the city.

Commentary/Case Study; Guidelines, Strategies and Recommendations
Jul 2020

Just Transitions: Lessons Learned in South Africa and Eastern Europe

This commentary summarizes critical elements of case studies on just transitions to help guide future research, and includes lessons learned in ongoing just transitions work in South Africa and Eastern Europe.

Sectors
Energy
Industrial
Mining
Detail
Focus Areas
Economic diversification/restructuring > Economic development plans, Industry and/or sector assistance or plans
Employment > Social protections
Inequality and/or poverty > Other
Justice
Keywords
case studies
power relations
racial justice
inclusivity
By
Ben Cahill
Publishing Organization
Center for Strategic and International Studies, Climate Investment Funds (CIF)
Academic/research institution or journal, Development finance institution
Summary

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.

Report/Policy Tools or Evaluations
Jun 2021

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.

Geographic Scope
India
Sectors
Energy
General
Industrial
Mining
Transportation
Detail
Focus Areas
Employment > Job creation and/or equality
Government intervention > Other, Public finance, Regulation
Investment > ESG and corporate engagement, Other, Private finance
Keywords
India Just Transition Finance Roadmap (JTFR) project
urbanization
digitalization
Sustainable Development Goals (SDGs)
double materiality
credit rating
green bond regulations
ESG reporting
Central Banks and Supervisors Network for Greening the Financial System (NGFS)
freight
cement
green bonds
green loans
Reserve Bank of India
fiscal policy
CSR
By
Suranjali Tandon, Annapurna Mitra, Nick Robins
Publishing Organization
CDC Investment Works
Academic/research institution or journal
Summary

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.

The authors highlight how India simultaneously confronts the challenges of multiple economic transitions—urbanization, digitalization, and the shift to zero carbon. They identify the distributional impacts on Indian states in sectors that are expected to be the most impacted, including: coal mining, electricity generation, agriculture, manufacturing and industry, along with transportation. Using the four dimensions of social risk arising from the net zero transition—namely livelihoods, energy access, public finance, and human development, they find that Madhya Pradesh, Jharkhand, Chattisgarh, Uttar Pradesh, Bihar, Odisha, Telangana, and Rajasthan will be the most affected by the zero-carbon transition.

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.