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What is "Just Transition"?

Enabling a just transition to a low-carbon economy in the energy sector: Progress and lessons in Emerging Markets

The report looks at the scope of just transitions in the energy sector in emerging markets, specifically Brazil, Russia, India, China, and South Africa (BRICS) as well as the Next 11 countries, through a simplified framework.

Detail

The report takes a broad look at the enabling environment for just transitions in the energy sector in BRICS and the Next 11 countries through a framework that considers the macroeconomic and energy sector conditions, employment policies, and social structures in these countries.

The report finds that employment policies that exist across the countries, while key to economic growth, are often disconnected from the energy transition and wider macroeconomic planning. While the authors briefly map out the stakeholder base involved in just transitions in the energy sector, the report focuses on the role played by the government, businesses, and workers. The report posits the key role that state-owned enterprises (SEOs) have to play in enabling a just transition and identifies the absence of engagement platforms as a hindrance to effective dialogue.

The report applies a framework that uses transition indicators to broadly illustrate each country’s level of readiness for a just transition. However, the effectiveness of the indicators in representing procedural justice and inclusion issues will have to be assessed further.

Brown to Green: The G20 Transition to a Low-Carbon Economy

This report examines the progress made by the G20 countries in their transition to low-carbon and climate-resilient economies and addresses the need for a just transition.

Detail

This report from Climate Transparency reviews climate actions by the Group of Twenty (G20) states, assessing their transition to low-carbon and climate-resilient economies. The report questions whether the G20 countries are on track to meet Paris Agreement goals, documenting leaders and laggards.

The report finds that current Nationally Determined Contributions (NDCs) would lead to a global temperature increase of around 3.2 degrees Celsius. The authors outline the progress made by G20 countries since the Paris Agreement based on several decarbonization indicators. They criticize nearly all G20 countries for not implementing climate mitigation policies more aggressively, calling on them to institute a 50% emissions cut by 2030 to reach Paris Agreement goals.

The report analyzes several just transition initiatives in G20 countries to identify lessons learned. In Canada, for example, a federal task force developed a just transition plan for coal workers and communities, and the Chinese government seeks to allocate $4.5 billion over the next three years to support the closure of small coal mines. Australia, on the other hand, negotiated a comprehensive agreement with the Victoria government and three privately owned power stations to reduce job losses rather than manage their effects.