Just Energy Transition

A just energy transition means reducing greenhouse gas emissions from the energy system while ensuring that workers, communities and consumers do not bear unfair social or economic costs. It combines decarbonisation with decent livelihoods, affordable energy, social inclusion and equitable participation in decisions.

Core dimensions of a just transition

Justice concerns both the distribution of transition costs and benefits and the fairness of decision-making. It therefore links climate policy with energy access, employment and regional development.

• Workers in fossil-fuel-dependent sectors require reskilling, social protection and alternative employment rather than abrupt displacement.
• Coal and other energy-dependent regions need economic diversification, infrastructure and planned mine closure to avoid prolonged local decline.
• Affected workers, communities, firms and governments should participate through social dialogue and transparent planning.
• Consumers, especially poorer households, must retain reliable and affordable energy during the transition.

Why the transition requires planning

Energy assets, employment and public revenues are often geographically concentrated. Rapid or poorly sequenced decarbonisation can therefore create stranded assets, job losses, fiscal stress and energy insecurity, weakening public support for climate action.

• A just transition recognises that regions and social groups possess unequal capacities to absorb adjustment costs.
• It also requires balancing emissions reduction with energy security and developmental needs, particularly in developing economies.

Policy approach

A credible strategy uses advance planning rather than compensating people only after disruption. Governments can align clean-energy investment with labour, industrial and regional policies.

• Measures include skills mapping, retraining, income support and assistance for worker mobility.
• Public investment and incentives can create replacement industries in affected regions.
• Phased retirement or repurposing of carbon-intensive assets can reduce economic shocks.
• Monitoring should assess employment, affordability, access and local development alongside emissions reduction.