gender – Just Transition Initiative

Summary

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.

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. It identifies eight topics that merit new research and practical guidance. Several of these themes center on implementation. Most case studies focus on Western countries, but case studies and guidance should account for the political, economic, social, and environmental context in the Global South. Just transitions proponents should also focus on power dynamics and political economy issues, to identify potential blockers and enablers.

The authors note that cities, regional governments, and local actors are often left out of planning processes. The commentary suggests that workers in the informal sector should have greater prominence in just transitions plans. Social protections and worker assistance should also account for the needs of women as well as indigenous people and ethnic minorities.

The commentary identifies critical questions related to financing a just transition. It notes the importance of place-based investment for affected regions, as well as the need for new financing instruments to meet the scale of the climate challenge. Although private investors have a key role to play in financing just transitions, there is more work to be done on educating investors on just transitions principles, especially in terms of social as opposed to environmental goals.