green economy – Just Transition Initiative

Summary

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.

Summary

“This paper by the British Trades Union Congress (TUC) discusses the need for a just transition in the United Kingdom and proposes ambitious policies that could help protect workers, such as including workers in policy processes and giving them access to funding for skills development. The TUC calls for the UK government to ensure sufficient funding to enable a fair transition.

The TUC argues that workers’ voices must be heard at all levels of decision-making processes, advocating unionization in all workplaces to ensure better worker representation. The organization calls for companies seeking to adopt a lower carbon model to provide transition agreements that include worker-friendly policies that provide guarantees of job security, outline working time, facilitate access to training and skills, and ensure equal opportunities.

The paper concludes by emphasizing the role the UK government should play as “a funder and procurer of new energy and broader infrastructure” to ensure that new jobs benefit local communities. The TUC warns against awarding contracts to companies without first agreeing on standards for corporate behavior.”