* Any views expressed in this opinion piece are those of the author and not of Thomson Reuters Foundation.
A just transition is the strongest model for tackling the complexities of global warming, while creating decent work opportunities
By Amol Mehra, director of industry transformation at Laudes Foundation
The latest report by the Intergovernmental Panel on Climate Change (IPCC) underlines the irrefutable link between the dual problems of climate change and inequality.
The analysis from more than 270 scientists and researchers could not have come at a more sombre moment, considering wider geopolitical events stemming from Russia’s invasion of Ukraine.
Ecosystems and people are being pushed to their limits. Current problems will only get worse. There will be an increase in droughts, floods and heat waves. Sea levels will rise. Global warming will weaken soil health and ecosystems. Food scarcity and water shortages will be commonplace.
The most vulnerable in our society are the least able to cope with climate change. The IPCC report highlights that, since the turn of the century, the mortality rate in the most vulnerable countries from extreme weather events was 15 times greater than in the least vulnerable.
It is vital that we centre inclusion and equity in our climate change efforts, so no-one is left behind.
The IPCC report champions how marginalised and vulnerable groups must be involved in inclusive planning processes now – drawing on Indigenous and local knowledge – to support effective adaptation. To many, this is not a new or profound realisation, but it should be at the centre of how government and the private sector respond to the challenges before us.
This is the promise of a “just transition” - and it is time for us all to focus our efforts on accelerating it. Just transition has emerged as the strongest model for global, national and local economies to move towards long-term equitable and climate-positive outcomes.
How are governments acting?
At the COP26 climate summit in Glasgow, major governments endorsed a set of principles that built on previous commitments made to address a just transition: supporting communities and regions particularly vulnerable to the economic, employment and social effects of a global transition; and promoting social dialogue between governments and the representative organisations of workers and employers, among other things.
As part of this, they have also agreed to increase transparency by reporting every two years on the progress of their just transition efforts.
This was an important development, as it ensures that just transition framing and approaches guide action on climate change and create public accountability. While the list of governments remains relatively sparse - with 16 countries and the EU endorsing the statement - it does provide a strong model for others to join.
Some governments and institutions are already moving towards support for just transition approaches. The European Union, for example, has created a Just Transition Mechanism (JTM) including a fund of nearly 20 billion euros, with hopes of unlocking much more to support investments in innovation, reskilling and transformation of carbon-intensive installations.
The Scottish government has created a new Just Transition Commission to support the production and monitoring of just transition plans co-designed and co-delivered by communities, business, unions and workers. Canada has launched a Just Transition Engagement, creating a public process to provide feedback on potential elements of just transition legislation.
Business progress slow
Focusing on a just transition can provide a useful approach for companies that are seeking to ensure a positive contribution to the Paris climate agreement goals and to meeting social and legal expectations that have emerged in recent years.
From the Sustainable Development Goals (SDGs) to the United Nations Guiding Principles on Business and Human Rights (UNGPs), companies are being urged to align their operations and relationships with environmental and human rights standards. Recent regulatory advancements on mandatory due diligence in these areas will push them to assess and address potential impacts across their supply chains and business relationships.
Still, action is lagging, as confirmed by findings from the World Benchmarking Alliance (WBA) which provided a useful Just Transition Assessment pilot covering some 180 companies across three sectors: oil and gas, electric utilities and automotive manufactures.
The findings indicated minimal action by companies in these sectors, with only two of those assessed meeting the requirement for social dialogue and stakeholder engagement seen as fundamental for just transition planning: British energy firm SSE and multinational oil and gas company BP.
The significant momentum and financing needed to support a just transition across economies will require all actors – including in the financial sector – to mobilise support. A recent study by Clifford Chance and the Institute for Human Rights and Business noted the numerous challenges in accelerating action from the banking sector, including the need for new principles and practical tools.
There is no doubt the latest IPCC report makes for bleak reading, particularly against a back-drop of the horrific invasion of Ukraine. But there is hope.
There is still time to cut emissions drastically and transition towards environmentally sustainable economies and societies for all. A just transition is the key pathway towards creating opportunities for both decent work and addressing the complexities of climate change. As such, the fledgling efforts underway to figure out how it should be done deserve more attention, engagement and support.
