Shift happens - The meaning and impact of a Just Transition
An era of change
In November last year at the UN summit on Climate aka COP28 - a transition away from fossil fuels was finally written into the closing climate agreement draft. And yes, it’s true the exact wording might initially seem somewhat vague, it still none-the-less marks a significant step towards the end of the world’s chapter on fossil fuels.
But as we stand on the edge of this new energy landscape, one question looms large: how do we get there without negatively impacting those whose lives are so inextricably woven with the old system?
A Just Transition
So this is where the concept of a ‘Just Transition’ comes in. In simplest terms, it means moving to the sustainable economy that we need, but in a way that’s fair to everyone – including people working in polluting industries.
Because the truth is, millions of livelihoods are linked to carbon intensive industries. We’re not just talking about oil and gas engineers or workers in aviation and transport, but also those in agriculture, factory workers, garment producers - the list goes on. The change that needs to happen is a big one with impacts that will ripple and be felt across the world.
So, to minimize the adverse effects on those reliant on these industries, a Just Transition aims to ensure that the positive opportunities that the change presents are maximised as much as possible. So, while carbon intensive industries might shrink or even shut down, on the flip side, the opportunity for business growth and the creation of new jobs is expedited by the creation of a whole new sector. Collaboration between governments, businesses, and communities are key to the success of a Just Transition, as only true stakeholder participation will make it work.
What it looks like in practice - Spain’s Success
A Just Transition should be seen as an exciting new frontier for business. In fact, Greenpeace has estimated that the UK government alone could help create 1.8 million jobs by investing in a greener, cleaner economy.
Many communities around the world are bringing the principles of a Just Transition to life already with successful results for people and planet. In Spain, the Strategy of a Just Transition fosters collaboration through equitable agreements between the government, unions, and businesses in regions affected by climate transitions. These agreements aim to reduce the adverse effects of the change and fund eco-friendly projects at the same time.
A notable example is the ground-breaking deal in October 2018 for mining regions hit by the closure of 10 pits and the loss of thousands of jobs. This agreement outlines a €250 million (£214 million) investment plan by 2023. The funds will be utilized for early retirement support for miners aged 48 and above, initiatives promoting clean energy, training for green jobs, and local environmental restoration. Spain’s success is an excellent example of how this transition can benefit all stakeholders involved.
La Gran Corta de Fabero (Léon) was one of the largest opencast coal mines in Europe
The Road Ahead
Amidst rising greenhouse gas levels, ocean acidification and not to mention the hottest year in history (yes that was 2023), the urgency to free ourselves from fossil fuel reliance is clearer than ever.
And as we take this step towards necessary change, the concept of a Just Transition becomes a vital compass guiding us toward a brighter future. Rather than viewing this shift as an overwhelming challenge, it should be embraced as an exciting business opportunity, offering a chance to amend social and environmental issues.
With the principles of a Just Transition at our core, we can approach this transformative era with optimism and determination, fostering positive change for both the planet and people.