What does the concept of a just transition entail?

The concept of a just transition primarily focuses on the need to ensure that the shift towards a sustainable economy is equitable and inclusive, particularly for workers and communities who may be adversely affected by this transition. In essence, it aims to share the financial and social burdens fairly among all stakeholders, which includes considering the needs of workers, marginalized communities, and others impacted by changes in the economy due to decarbonization and environmental sustainability efforts.

This principle recognizes that economic transformation, particularly in industries reliant on fossil fuels or other environmentally damaging practices, can have profound implications for jobs and livelihoods. A just transition seeks to minimize job losses and promote reskilling and support for workers to transition into new green jobs. It highlights the importance of planning and policy frameworks that provide social safety nets, ensuring that the transition does not exacerbate existing inequalities.

While elements like aligning with international climate agreements (such as the Paris Agreement), respecting labor rights, and preventing stranded assets are significant, they are not the core essence of what defines a just transition. These factors may contribute to the overall goals of sustainability, yet the focal point of a just transition is the fair distribution of burdens and benefits, emphasizing equity and social justice in the face of necessary economic changes.