Just transition is a framework developed by the trade union movement [1] to encompass a range of social interventions needed to secure workers' rights and livelihoods when economies are shifting to sustainable production, primarily combating climate change and protecting biodiversity. In Europe, advocates for a just transition want to unite social and climate justice, for example, for coal workers in coal-dependent developing regions who lack employment opportunities beyond coal. [2]
In the past years, a number of organizations have deployed the concept of a Just Transition with respect to environmental and/or climate justice. [3]
With regards to climate change mitigation, the IPCC defines just transition as follows: "A set of principles, processes and practices that aim to ensure that no people, workers, places, sectors, countries or regions are left behind in the transition from a high-carbon to a low carbon economy." [4]
In the 1980s, "in the United States, Tony Mazzocchi of the Oil, Chemical and Atomic Workers Union proposed a "Superfund for Workers", which would compensate and retrain those who moved out of environmentally hazardous jobs. It's widely believed that Mazzocchi was the first to use the term just transition, and this superfund was meant to parallel the U.S. Superfund Act of 1980 – national legislation to tax corporations to clean up hazardous waste sites across the country". [5]
At the 2015 United Nations Climate Change Conference in Paris, France, or COP 21, unions and just transition advocates convinced the Parties to include language regarding just transition and the creation of decent work in the Paris Agreement's preamble. [6] [7] [8] [9]
At the 2018 United Nations Climate Change Conference in Katowice, Poland, or COP 24, the Heads of State and Government adopted the Solidarity and Just Transition Silesia Declaration, highlighting the importance of just transition as mentioned in the Paris Agreement, the ILO's Guidelines, and the United Nations 2030 Agenda for Sustainable Development. [10] The Declaration encourages all relevant United Nations agencies to proceed with its implementation and consider the issue of just transition when drafting and implementing parties' nationally determined contributions, or NDCs. [11] [12] [13]
At COP26, the European Investment Bank announced a set of just transition common principles agreed upon with multilateral development banks, which also align with the Paris Agreement. The principles refer to focusing financing on the transition to net zero carbon economies, while keeping socioeconomic effects in mind, along with policy engagement and plans for inclusion and gender equality, all aiming to deliver long-term economic transformation. [14] [15]
The African Development Bank, Asian Development Bank, Islamic Development Bank, Council of Europe Development Bank, Asian Infrastructure Investment Bank, European Bank for Reconstruction and Development, New Development Bank, and Inter-American Development Bank are among the multilateral development banks that have vowed to uphold the principles of climate change mitigation and a Just Transition. The World Bank Group also contributed. [14] [16] [17]
In 2022, two countries - Indonesia and Vietnam - were invited to take part in a Just Energy Transition Partnership (JETP) framework which aims at mobilizing more than USD 35 billion of public and private financing to support a just energy transition in the two countries. [18]
In the European Union, the concerns facing workers in fossil fuel industries are addressed by the Just Transition mechanism in the European Green Deal. [19] The funding and mechanism helps fossil fuel-dependent regions within the European Union to transition to a greener economy. [20]
A just transition from coal is supported by the European Bank for Reconstruction and Development. [21]
A 2021 review of legal theories for climate litigation and a just transition, recommended using accountability litigation against companies in industries that would lose work. [22]
The Kyoto Protocol (Japanese: 京都議定書, Hepburn: Kyōto Giteisho) was an international treaty which extended the 1992 United Nations Framework Convention on Climate Change (UNFCCC) that commits state parties to reduce greenhouse gas emissions, based on the scientific consensus that global warming is occurring and that human-made CO2 emissions are driving it. The Kyoto Protocol was adopted in Kyoto, Japan, on 11 December 1997 and entered into force on 16 February 2005. There were 192 parties (Canada withdrew from the protocol, effective December 2012) to the Protocol in 2020.
The United Nations Framework Convention on Climate Change (UNFCCC) is an international treaty among countries to combat "dangerous human interference with the climate system", in part by stabilizing greenhouse gas concentrations in the atmosphere. It was signed in 1992 by 154 states at the United Nations Conference on Environment and Development (UNCED), informally known as the Earth Summit, held in Rio de Janeiro. Its secretariat was in Geneva at first but relocated to Bonn in 1996. The treaty entered into force on 21 March 1994. "UNFCCC" is also the name of the Secretariat charged with supporting the operation of the convention, with offices on the UN Campus in Bonn, Germany.
The European Bank for Reconstruction and Development is an international financial institution founded in 1991. As a multilateral developmental investment bank, the EBRD uses investment as a tool to build market economies.
Environmental finance is a field within finance that employs market-based environmental policy instruments to improve the ecological impact of investment strategies. The primary objective of environmental finance is to regress the negative impacts of climate change through pricing and trading schemes. The field of environmental finance was established in response to the poor management of economic crises by government bodies globally. Environmental finance aims to reallocate a businesses resources to improve the sustainability of investments whilst also retaining profit margins.
The Global Environment Facility (GEF) is a multilateral environmental fund that provides grants and blended finance for projects related to biodiversity, climate change, international waters, land degradation, persistent organic pollutants (POPs), mercury, sustainable forest management, food security, and sustainable cities in developing countries. It is the largest source of multilateral funding for biodiversity globally, and distributes more than $1 billion a year on average to address inter-related environmental challenges.
A green economy is an economy that aims at reducing environmental risks and ecological scarcities, and that aims for sustainable development without degrading the environment. It is closely related with ecological economics, but has a more politically applied focus. The 2011 UNEP Green Economy Report argues "that to be green, an economy must not only be efficient, but also fair. Fairness implies recognizing global and country level equity dimensions, particularly in assuring a Just Transition to an economy that is low-carbon, resource efficient, and socially inclusive."
A low-carbon economy (LCE) or decarbonised economy is a concept for a desirable economy which has relatively low greenhouse gas (GHG) emissions per person. GHG emissions due to human activity are the dominant cause of observed climate change since the mid-20th century. There are many strategies and approaches for moving to a low-carbon economy, such as encouraging renewable energy transition, efficient energy use, energy conservation, electrification of transportation, carbon capture and storage, climate-smart agriculture. An even more ambitious target than low-carbon economies are zero-carbon economies with net zero emissions. An example are zero-carbon cities.
The Climate Investment Funds (CIF) was established in 2008 as a multilateral climate fund in order to finance pilot projects in developing countries at the request of the G8 and G20. The CIF administers a collection of programs with a view to helping nations fight the impacts of climate change and accelerate their shift to a low-carbon economy. Through contributions from 14 donor countries, CIF supports more than 350 projects in 72 low and middle-income countries on the frontlines of the climate crisis.
The economics of climate change mitigation is a contentious part of climate change mitigation – action aimed to limit the dangerous socio-economic and environmental consequences of climate change.
The Paris Agreement, often referred to as the Paris Accords or the Paris Climate Accords, is an international treaty on climate change. Adopted in 2015, the agreement covers climate change mitigation, adaptation, and finance. The Paris Agreement was negotiated by 196 parties at the 2015 United Nations Climate Change Conference near Paris, France. As of February 2023, 195 members of the United Nations Framework Convention on Climate Change (UNFCCC) are parties to the agreement. Of the three UNFCCC member states which have not ratified the agreement, the only major emitter is Iran. The United States withdrew from the agreement in 2020, but rejoined in 2021.
Climate change has resulted in an increase in temperature of 2.3 °C (2022) in Europe compared to pre-industrial levels. Europe is the fastest warming continent in the world. Europe's climate is getting warmer due to anthropogenic activity. According to international climate experts, global temperature rise should not exceed 2 °C to prevent the most dangerous consequences of climate change; without reduction in greenhouse gas emissions, this could happen before 2050. Climate change has implications for all regions of Europe, with the extent and nature of impacts varying across the continent.
Climate finance consists of funding processes for investments related to climate change mitigation and adaptation. The term has been used in a narrower sense to refer to transfers of public resources from developed to developing countries, in light of their UN Climate Convention obligations to provide "new and additional financial resources". In a wider sense, the term refers to all financial flows relating to climate change mitigation and adaptation.
The United Nations Climate Change Conferences are yearly conferences held in the framework of the United Nations Framework Convention on Climate Change (UNFCCC). They serve as the formal meeting of the UNFCCC parties – the Conference of the Parties (COP) – to assess progress in dealing with climate change, and beginning in the mid-1990s, to negotiate the Kyoto Protocol to establish legally binding obligations for developed countries to reduce their greenhouse gas emissions. Starting in 2005 the conferences have also served as the "Conference of the Parties Serving as the Meeting of Parties to the Kyoto Protocol" (CMP); also parties to the convention that are not parties to the protocol can participate in protocol-related meetings as observers. From 2011 to 2015 the meetings were used to negotiate the Paris Agreement as part of the Durban platform, which created a general path towards climate action. Any final text of a COP must be agreed by consensus.
An energy transition is a significant structural change in an energy system regarding supply and consumption. Currently, a transition to sustainable energy is underway to limit climate change. It is also called renewable energy transition. The current transition is driven by a recognition that global greenhouse-gas emissions must be drastically reduced. This process involves phasing-down fossil fuels and re-developing whole systems to operate on low carbon electricity. A previous energy transition took place during the industrial revolution and involved an energy transition from wood and other biomass to coal, followed by oil and most recently natural gas.
The 2018 United Nations Climate Change Conference, more commonly referred to as the Katowice Climate Change Conference or COP24, was the 24th Conference of the Parties to the United Nations Framework Convention on Climate Change. It was held between 2 and 15 December 2018 in Katowice, Poland. The conference was held in the International Congress Centre. The president of COP24 was Michał Kurtyka. The conference also incorporated the fourteenth meeting of the parties for the Kyoto Protocol (CMP14), and the third session of the first meeting of the parties for the Paris Agreement which agreed on rules to implement the Agreement. The conference's objective was to have a full implementation of the Paris agreement.
The European Green Deal, approved in 2020, is a set of policy initiatives by the European Commission with the overarching aim of making the European Union (EU) climate neutral in 2050. The plan is to review each existing law on its climate merits, and also introduce new legislation on the circular economy, building renovation, biodiversity, farming and innovation.
Sustainable Development Goal 13 is to limit and adapt to climate change. It is one of 17 Sustainable Development Goals established by the United Nations General Assembly in 2015. The official mission statement of this goal is to "Take urgent action to combat climate change and its impacts". SDG 13 and SDG 7 on clean energy are closely related and complementary.
Green recovery packages are proposed environmental, regulatory, and fiscal reforms to rebuild prosperity in the wake of an economic crisis, such as the COVID-19 pandemic or the Global Financial Crisis (GFC). They pertain to fiscal measures that intend to recover economic growth while also positively benefitting the environment, including measures for renewable energy, efficient energy use, nature-based solutions, sustainable transport, green innovation and green jobs, amongst others.
Sustainable finance is the set of financial regulations, standards, norms and products that pursue an environmental objective. It allows the financial system to connect with the economy and its populations by financing its agents while maintaining a growth objective. The long-standing concept was promoted with the adoption of the Paris Climate Agreement, which stipulates that parties must make "finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development." In addition, sustainable finance had already a key role to play in the European Green Deal and in other EU International agreements, but since the COVID-19 pandemic its role is even more important.
The Just Transition Mechanism is a policy framework developed by the European Union (EU) as part of the European Green Deal investment plan to ensure a just transition into a low-carbon economy.
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