Climate action must prioritize equity, justice, and opportunity to build a sustainable post-fossil fuel world
As reinforced through international forums like UNGA, G20, and COP, we have reached the beginning of the end of the fossil fuels era. This holds a clear imperative for a rapid, just, and equitable transition to a non-fossil fuel-based global economy.
However, barriers such as fiscal deficits, high cost of capital, currency instability, low energy access, and a lack of energy diversification lock many economies into fossil fuel dependency. This is particularly true in low- and middle-income countries where concerns about lost livelihoods and foregone growth are most acute.
How can we ensure a just energy transition from carbon-intensive systems to systems prioritizing equity, inclusivity, and resilience while addressing the climate crisis?
At a recent Salzburg Global "Policy Dialogue on Just Energy Transitions: Identifying Pathways to Prosperity Post Fossil Fuels" , policy and decision-makers from fossil fuel-producing countries convened alongside leading researchers, business leaders, and representatives from international organizations to share and discuss evidence-based approaches.
Representing regions as varied as Europe, Africa, Latin America, and the Caribbean, their perspectives reveal both common aspirations and the unique challenges faced in achieving just energy transitions.
Defining Just Energy Transitions
While regional contexts and priorities differ, Fellows agreed on the foundational principle that a just energy transition must leave no one behind. Brendan Devlin, an advisor in the Directorate General for Energy of the European Commission, captured the meaning of a just energy transition.
Brendan said, “In the two senses of just, it means firstly, just get on with it. Secondly, when you make the transition from hydrocarbons to sustainable energy, make sure there are no losers, or if there are losers, that they are the ones most able and capable of making the adjustment.” For him, this means prioritizing lower-income populations who use the least resources but are most burdened by energy costs.
Peter Newell, a professor at the University of Sussex who researches climate and energy politics, emphasized justice as a central tenet of transitions. “Just transitions are ones which, at minimum, do not exacerbate existing injustices and, at best, include key actors in building a more socially and ecologically just future for all,” he stated.
This sentiment was echoed by Omalisa Baldeo, who, as a policymaker in Trinidad and Tobago's Ministry of Labor, highlighted the importance of integrating social equity with environmental goals. She noted the need for “moving to an environmentally sustainable economy where decent jobs and sustainable livelihoods are created and protected”.
For Fellows like Gonzalo Canseco Gomez, who is from Mexico and consults internationally on sustainability and climate change for the international consultancy onepoint5, the transition is not just an environmental necessity but an “opportunity to address current and future challenges on sustainability and to redress wrongs from the past, both in environmental and social aspects.”
Historical inequities necessitate a broader framework of fairness. Gonzalo believes countries that are both industrialized and still developing deserve "an equitable share in the burdens as well as the benefits that derive from this transition.”
Given this consensus on the need for transitions that balance environmental imperatives with human-centered policies, what is standing in the way?
Key Challenges in Implementation
Across all regions, participants identified common barriers to implementing just energy transitions. Financing emerged as a critical issue, especially for developing nations like Trinidad and Tobago and Mexico. These countries struggle with limited access to funds for renewable energy infrastructure and workforce adaptation.
João Marcos Paes Leme, director of the Energy Department at Brazil's Ministry of Foreign Affairs, pointed out that "the ability to finance the transition" affects countries disproportionately. While more investments are made in cleaner technologies in developed countries, "part of this investment should head to developing countries so that they can work on their transitions at a pace compatible with the situation we are living in”.
Aligning international commitments with domestic realities also remains a challenge. Omalisa and Gonzalo stressed the need for stronger coherence between global frameworks like the Paris Agreement and actionable national policies. While there is a “robust framework for climate action” in place, Gonzalo explained that “it is ultimately up to countries to implement” these commitments.
Regional and Contextual Nuances
The practical implementation of just energy transitions varies widely based on regional circumstances. As Peter put it, "particular contexts will always shape what form just transitions can take." Keeping this in mind, international commitments should be cognizant of local realities and require "national ownership and meaningful citizen engagement" to be successfully implemented.
In Europe, Brendan acknowledged that while the European Union frames policies, it relies on individual member states to ensure implementation. For this reason, policies should be transferable to national socioeconomic landscapes.
With one of the cleanest energy mixes among large economies, Brazil offers a unique case, as João described, its challenge lies in ensuring inclusivity in its transition. “Energy transitions are more than energy. It’s actually a process leading to a new economic paradigm,” he explained.
For João, this transition should consider social aspects and "deliver more justice to be inclusive." He advised that science-based criteria should be used to assess and promote the least carbon-intensive routes to guide energy transitions, taking into account the circumstances of individual countries and regions.
Caribbean nations like Trinidad and Tobago face dual challenges of economic diversification and maintaining energy security. As an oil- and gas-producing country, Trinidad and Tobago’s heavy reliance on fossil fuels necessitates careful planning and a collaborative approach.
Kishan Kumarsingh, Head of the Multilateral Environmental Agreements Unit of the Ministry of Planning and Development in Trinidad and Tobago, highlighted the need for policies that reskill workers and minimize economic disruptions. “The issue of just transitions has to be conveyed as an opportunity for job security and job creation rather than a threat to jobs and employment" he suggested.
Omalisa added that inclusive social dialogue is crucial in ensuring that workers, employers, and governments collaboratively shape the transition.
The Socioeconomic Co-Benefits of Just Energy Transitions
Beyond reducing greenhouse gas emissions, just energy transitions offer a host of socioeconomic advantages that can transform societies. “The transition can result in enhanced sustainability, energy security, greater opportunities for job creation, and overall prosperity post fossil fuels,” noted Kishan.
Job creation is a critical benefit that was underscored by multiple Fellows across contexts. Omalisa and Kishan both highlighted the importance of education and training to ensure that workers displaced by the energy transition can find new opportunities in cleaner industries.
Omalisa also sees an opportunity for an "inclusive approach to developing an environmentally sustainable economy" that considers aspects such as gender and the impacts on workers, especially those in the informal economy.
The redistributive effects of energy transitions also hold the potential to reduce inequalities. Peter suggested that socially just transitions "need to shift power between states and their citizens, between governments and business, and between richer and poorer countries." He called for greater inclusion of marginalized voices in policymaking processes to avoid resistance and ensure widespread support.
Gonzalo pointed to the broader societal shifts possible when transitioning to a sustainable economic model, including improved public health and environmental protection. He believes that a transition presents "an opportunity to not only address environmental challenges but also provide new opportunities for people across the world."
While the road to just energy transitions is fraught with challenges, it is also rich with opportunities. By prioritizing inclusivity, leveraging evidence-based policies, and fostering international cooperation, nations can navigate the complex trade-offs of this transition.
Just energy transitions offer a chance not only to combat climate change but to build a fairer and more sustainable world - a challenge that demands urgency, creativity, and collective resolve.
The "Policy Dialogue on Just Energy Transitions: Identifying Pathways to Prosperity Post Fossil Fuels" was held from September 8 to 12, 2024 at Salzburg Global. It was co-hosted with Climate Strategies in partnership with the Stanley Center for Peace and Security and the Windward Fund.
Following the program, key findings and several in-country briefings were produced. Read more about these program outputs here.
