Building a Fairer, Greener Future
Building a Fairer, Greener Future

The COP26 Climate Change Conference in November set a global ambition to phase down coal. As the energy transition gathers pace, the international focus is also on efforts to ensure that our transition is equitable as well as sustainable.

The global shift towards net-zero carbon emissions is accelerating, and the transition will affect every aspect of how we live and work, and the way every business produces goods and provide services.

 

While ambitious climate action is vital, it is also critical that sustainability is not achieved by exacerbating existing inequities.

 

The concept of a just transition emerged through the trade union movement in the 1990s and has since gathered momentum to the extent that its principles were enshrined in the Paris Agreement.

 

The landmark 2015 agreement called on governments to take into account “the imperatives of a just transition of the workforce and the creation of decent work and quality jobs in accordance with nationally defined development priorities”.

Vulnerable populations are taken into account in a just transition.
Vulnerable populations are taken into account in a just transition.

The International Labour Organisation says a just transition requires dialogue among stakeholders to work towards a sustainable economy, which should “contribute to the goals of decent work for all, social inclusion and the eradication of poverty”.  

 

More than 50 countries at COP24 in Poland in 2018 endorsed the Solidarity and Just Transition Silesia Declaration, which highlighted that a just transition of the workforce is a crucial aspect of the journey to low emissions and climate-resilient development.

 

The declaration was welcomed by the investor community, with the Principles for Responsible Investment – an international network of investors – also setting out a guide to help investors pursue the goal of a just transition.

 

A sustainable economy plays a part in contributing to the goals of decent work for all, social inclusion and the eradication of poverty.
A sustainable economy plays a part in contributing to the goals of decent work for all, social inclusion and the eradication of poverty.


Championing social justice

The need to unite social and climate justice was highlighted as a critical factor in ensuring the success of the international pivot towards a net-zero future at the COP26 conference in Glasgow.

 

At least 10 new initiatives were launched, calling on governments, the finance sector, and policy institutions to prioritise a just transition to a net-zero economy and address the social implications to the supply chain of a low-carbon pathway.

 

COP26’s Glasgow Climate Pact, signed by nearly 200 countries, included pledges to ensure a just transition that promotes sustainable development, eradication of poverty, and the creation of decent and quality jobs by maintaining financial flows consistent with the net-zero pathway.

 

The European Union and 16 individual countries including the United States, Canada and the United Kingdom also signed the Just Transition Declaration, which contains undertakings to support communities affected by the global transition away from carbon intensive activity, promote social dialogue, and develop economic strategies to support the transition.

 

In addition, more than 40 national governments, regional authorities, and organisations supported the Global Coal to Clean Power Transition Statement, which promises financial, technical, and social support for ensuring a just and inclusive transition for coal-dependent workers, sectors, and communities.

 

Coal workers in some communities are given opportunities to reskill and upskill themselves for work that is conducive to a sustainable future, including solar panel installation and reforestation.


Walking the talk

A growing number of energy companies are increasingly aware of the challenge of just transitions and the importance of setting out development plans that balance environmental, social, and economic priorities, including initiatives such as reskilling and redeploying employees affected by plant closures and investment in sustainable projects.

 

CLP Group is committed to seeking a just transition. Its subsidiary EnergyAustralia, for instance, is retiring its coal-fired Yallourn Power Station in Victoria state in mid-2028, four years ahead of schedule, while taking extensive measures to address the impact of the closure.

 

The Yallourn workforce will be supported by a package that will include training and skills development, career planning, assistance for redeployment, and financial counselling. It also makes every effort to ensure its workers have a say in how this support is delivered, and it has launched a process to understand their individual needs.

 

Furthermore, to promote dialogue with the local community, it has held forums and plans on smaller face-to-face sessions so that residents and different interest groups are clear on its plans. Also, its commitment to the social development of the Latrobe Valley region remains, including its community grant and sponsorship programmes. 

 

A just transition puts communities and the environment at the centre of the transition.
A just transition puts communities and the environment at the centre of the transition.


Establishing just guidelines

On the policy front, guides and benchmarks are emerging in support of a just transition, including the establishment in 2021 of the International Energy Agency’s Global Commission on People-Centred Clean Energy Transitions.

 

The commission announced key recommendations ahead of COP26 to influence clean energy policies and maximise their benefits to people, while ensuring the overall success of a net-zero transition.

 

On the corporate accountability front, meanwhile, the World Benchmarking Alliance piloted its first Just Transition Assessment of corporate performance, and released its results in November 2021.

 

The assessment covered 180 companies across sectors including oil and gas companies, electric utilities and automotive manufacturers and examined the social elements of companies’ low-carbon transition against core social and just transition indicators.

 

Climate Action 100+, an investor-led initiative, also included the just transition concept in its 2022 Net-Zero Company Benchmark, which aims to help investors evaluate companies’ climate ambitions and actions.


Navigating a fair future

As the international focus on just transition intensifies, it is increasingly clear that the movement towards a low-carbon future can no longer be separated from the importance of ensuring social justice.

 

COP26 laid the groundwork by establishing a narrative on just transitions, and COP27 – due to take place in November – is likely to see the concept of just transitions become an even more integral element of net-zero planning.

 

It is a responsibility that will fall on the shoulders not only of governments but of businesses worldwide as the international community moves towards a brighter, more sustainable future in which no one is left behind.

 

Calls are mounting on the international community to move towards a future with no one left behind.
Calls are mounting on the international community to move towards a future with no one left behind.

 

Note: Header photo by Marc Kjerland is licensed under CC BY-SA 2.0.