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What is "Just Transition"?

Just Transitions: Focusing on South Africa and India

This podcast explores CoP26 agenda and key priorities for a just transition away from coal in two coal dependent emerging economies: India and South Africa.

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Chandra Bhushan with iFOREST and Jesse Burton with the University of Cape Town join Sandeep Pai (CSIS) to look at how key themes of just transitions are important in the context of CoP26 meetings.  They then discuss the key priorities on the ground for a just transition away from coal in the major economies of South Africa and India.

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.

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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.

Just Transitions: India’s Path Forward

This podcast discusses the importance of a just transition in the context of climate change policies and investments and explores the impact of Covid-19 on just transitions.

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As the energy transition in India accelerates, how do decisionmakers ensure that the transition is a just and equitable transition? Neha Sharma, Ajay Mathur, Srestha Banerjee, and Mike Ward look at the underlying drivers of India’s energy transitions, and key considerations for creating a just transition, including the need for fairness and equity, geographic disparities, lack of social mobility, labor policy, and energy access.

COP26: The Perfect Opportunity for Latin America and the Caribbean to Champion a Just Transition to Net Zero

This commentary narrates the disproportionate impacts of the pandemic and extreme weather events on the Latin America and Caribbean region and highlights the urgent need for a just and equitable transition to net zero.

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The disproportionate impacts of the pandemic and extreme weather events on the Latin America and Caribbean (LAC) region highlight the urgent need for a just and equitable transition to net zero in LAC. The region has a unique opportunity to step up at the upcoming COP26 by incorporating just transition priorities into two foundational energy initiatives. The Renewable Energy for Latin America and the Caribbean (RELAC) Initiative along with the implementation of the Observatory of Energy Management Systems in Latin America and the Caribbean, supported by sources of climate finance, have the potential to help deliver on the region’s energy and climate goals while also generating the new economic and employment opportunities needed for a new green economy that works for all.

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.

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.

Solar has greater techno-economic resource suitability than wind for replacing coal mining jobs

The article uses spatial analysis to explore the potential of renewable energy jobs directly replacing local jobs lost in the coal sector, with a focus on four major coal-producing countries, namely China, India, Australia, and the United States.

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With a focus on China, India, the United States, and Australia, the article uses spatial analysis to identify the local solar and wind capacities required for each coal mining area to enable all coal miners to transition to solar/wind jobs. It also assesses the resource availability in these areas and the scale of the deployment of renewables needed to transition coal miners in areas suitable for solar/wind power. The article suggests that the potential to create local jobs is crucial to a just and effective transition. Unlike other professional workers who migrate to find new jobs when they are laid off, most coal miners become “inactive” when they lose their jobs because of their strong connections to their communities, age, or skills.

The article finds that, with the exception of the U.S., several gigawatts (GWs) of solar or wind capacity would be required for each coal mining area to transition all coal miners to solar/wind jobs. In all four countries, only a small percent of coal mining areas have suitable wind resources. Furthermore, these countries would have to scale up their current solar capacities significantly to be able to transition coal miners working in areas suitable for solar development. The report highlights the need for a localized understanding of labor impacts and shows how spatial methodology can be used to conduct similar assessments.

Workers and Communities in Transition: Report of the Just Transition Listening Project

The report synthesizes lessons from more than 100 listening sessions with labor and community groups to gather their perspectives on transitions as well as identifies how coalitions have come together and what pathways exist to a just future.

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The findings of this report are derived from more than 100 in-depth listening sessions, including qualitative interviews and focused discussion groups with workers and community members from across the United States, which were conducted in 2020. The sessions, typically lasting an hour or more, involved workers from dozens of unionized and nonunionized industries; union leaders; members of frontline communities, including environmental justice communities, communities of color, and Indigenous communities; along with leaders from labor, environmental justice, climate justice, and other community organizations.

The aim of the sessions was to capture the voices of the workers and community members who had experienced, are currently experiencing, or anticipate experiencing some form of economic transition. The report suggests how past transitions, driven by market forces, corporate entities, and shortsighted public policies, often leave workers and communities largely behind, with little to no support. As such, community trauma has gone unrecognized and unaddressed for years.

The report identifies several themes that have emerged through these sessions, including a picture of what transition entails; how coalitions have come together, particularly those including labor and environment groups; how common vision and strategies for change are built; and what pathways to a just future exist. The report also highlights how individual and collective understandings of transitions range widely, according to type of work, class, gender, race, age, political ideology, previous experiences with environmentalists or the climate justice movement, and relationships with unions and the community. The report affords insightful reading and covers recommendations for policymakers; labor and movement organizations; and future research to fill in the identified gaps in knowledge, including understanding how sectoral transitions such as automation, digitalization, hybrid working, and health care could be done in an equitable manner.

Jobs in a Net-Zero Emissions Future in Latin America and the Caribbean

The report details a decarbonization pathway for Latin America and the Caribbean region, identifies expected labor changes in various sectors, and focuses on equity considerations needed in each of the affected sectors.

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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.

Can government transfers make energy subsidy reform socially acceptable? A case study on Ecuador

The report looks at the impact of energy subsidies in Ecuador and its distributional effects as well as explores the scenarios of how the subsidies could be removed and replaced to confer benefits to vulnerable households equitably.

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The report identifies the impact of energy subsidies on public finance in Ecuador and looks at the distributional impacts of subsidies. To inform policy design, the authors use the household survey data from Ecuador, in combination with augmented input-output data, to assess the distributional impacts of energy subsidy reform. Energy subsidies account for about seven percent of Ecuador’s yearly public spending or two-thirds of the fiscal deficit. The study finds that it costs USD20 to transfer USD1 to the bottom income quintile through gasoline subsidies; USD10 through electricity; USD9 through diesel subsidies; and USD5 through liquefied petroleum gas (LPG) subsidies. Relative to household income, subsidy removal without compensation would be regressive for diesel and LPG, progressive for gasoline, and approximately neutral for electricity.

While removing these subsidies would yield clear economic and climate benefits, the expected adverse effects on vulnerable households are likely to make such reforms politically difficult. The authors analyze how a fraction of financial resources, freed up by the subsidy reform, could be used to mitigate the income losses of poor households by means of in-kind and in-cash revenue recycling schemes. The results indicate that removing all energy subsidies and increasing the existing social protection program, Bono de Desarrollo Humano, by nearly USD50 per month would confer net benefits of almost 10 percent of their current income to the poorest quintile and also free up significant amounts in the public budget.

The authors also conduct expert interviews to evaluate the political and institutional challenges related to the energy subsidy reform. They identify two combinations of reform options and recycling schemes that would benefit the poorest 40 percent of households, namely eliminating subsidies on gasoline, while increasing the amount transferred to vulnerable households through Bono de Desarrollo Humano; and replacing the universal LPG subsidies with targeted LPG vouchers. The authors suggest that countries in Latin America may benefit from increasing energy prices to fund development programs, reduce public deficits, and incentivize a transition to a low-carbon economy. The cash transfer programs of the region could be an instrument to reduce the impact of energy price hikes on poor consumers, thereby making price reforms more palatable.

The Winds of Change: Environmental Justice in Energy Transitions

This article argues that renewable energy systems create procedural injustices just as much as fossil fuels and proposes a collaborative approach to renewable energy governance for a just energy transition.

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This article explores the environmental injustices created by the development of energy systems including renewable energy systems, such as the inequitable distribution of environmental hazards and the limited engagement that affected communities have in the decision-making related to the systems. It uses the example of wind energy, describing how wind farms could affect communities and the environment as well as discussing the lack of participation by frontline communities in the governance of renewable energy systems as a cause of procedural injustice. In addition, it proposes community-led energy production as a solution for a just energy transition.

Focusing on wind turbines, the author of this article argues that renewable energies create environmental injustices and health issues for local communities just as much as fossil fuels. The author further suggests that the lack of participation by frontline communities in the governance of these energy eco-systems could be an intentional approach by policymakers and corporations to avoid slowing down the scaling of technology. The author concludes by calling for a democratic approach to energy governance whereby participatory knowledge production is acknowledged as an “integral” part of the energy system. She also advocates for community-led energy production to ensure that technologies being deployed are compatible with the environment in which they live.