Fostering just a energy transition: A framework for policy design.

 

While the energy transition promises considerable economic, social and environmental benefits, it will not automatically or inevitably yield a just outcome. The transition is taking place within an energy system that already exhibits significant inequalities. Reliable and affordable energy services remain out of reach for hundreds of millions of people in both developing and developed countries, while the ownership of – and economic benefits derived from – energy assets are unevenly distributed. Nations, communities and households most in need lack access to suitable financing and assistance, while the adverse impacts of climate change disproportionately affect marginalised and low-income groups. Meanwhile, these groups continue to struggle to have their voices heard in both national and international decision making. Without the deliberate inclusion of just principles in policy making and implementation, existing structural inequalities may simply be replicated during the energy transition, and new injustices may emerge. Despite ubiquitous calls for a just energy transition, a universally agreed-upon definition has remained elusive, given varying lived experiences, needs and world views across the globe. Emerging initially as a labour union concept, its meaning has widened over time. Today, visions of a just energy transition range from support to workers affected by decarbonisation measures to a systemic change of the economic and political structures that are perceived to underlie the current sustainability and social crises. As the review undertaken for this paper shows, this breadth of vision reflects the diversity of values among stakeholders and the ways in which the current energy system serves them (or fails to). Previous experiences with energy reforms that had significant adverse impacts – from physical displacement and job losses to disproportionate environmental impacts on low-income and marginalised communities – further inform just energy transition perspectives. At the same time, as references to the just energy transition proliferate, the term is also being increasingly coopted. Claims of a just energy transition must therefore be critically evaluated to ensure that they represent a commitment to substantive action towards a more equitable energy future, rather than rhetoric to preserve the status quo. While continued efforts to develop a shared understanding are essential to guide collective action, making a universal static definition a precondition for action towards a just energy transition could delay and undermine meaningful progress. Ultimately, justice – both as a demand and as a recognisable outcome – acquires meaning within specific local and international contexts. Suitable approaches, principles and policies to address injustices must therefore be developed by relevant stakeholders acting in good faith. These should be tailored to particular geographical, political, cultural and social context.

A just energy transition encompasses not only the vision of achieving equitable outcomes but also efforts to ensure that the process of reaching these outcomes is just. Fair distribution of benefits and burdens concerns outcomes - the way social, economic and environmental benefits and burdens are shared amongst different population groups. Inclusive processes and decision making emphasises the importance of fairness in decision making, through measures such as participatory and transparent planning processes, meaningful engagement of affected groups, as well as mechanisms for accountability and legal redress. Recognition of exclusions and impact builds on the principle that all people deserve fair treatment, stressing that their needs and values must be acknowledged as part of the transition process. Restoration and prevention of harm emphasises the necessity of compensation for, and rehabilitation from, harm caused by past and present energy policies and projects. These dimensions play out across geographies, necessitating attention to intra-country disparities, localised impacts, transboundary implications of energy decisions as well as regional disparities in progress. Temporal justice highlights the importance of considering impacts over time, affecting today’s youth and future generations. Taken together, these dimensions offer a valuable framework for understanding the justice-related dimensions of the energy transition and informing policy design. Key considerations for each dimension, along with related policy instruments, are synthesised in Table S1. Advancing a just energy transition requires a range of integrated policies and approaches; it cannot be accomplished via any single instrument. Nationally, and in concert with other countries, policy makers need to address a range of technological, economic and social challenges, critically assessing not only policies and practices, but also the underlying institutional frameworks. Credible policies and narratives addressing these challenges, accompanied by sufficient resources, are key to securing public support. The population at large needs to see tangible benefits and feel reassured that the needed adjustments will be equitably shared and will not impose undue hardship, especially on low-income and vulnerable populations.

To bring about transformative change, just energy transition efforts need to go beyond the energy sector and address structural drivers. Many of the challenges are linked to wider economic and social systems, and can manifest in various ways at the household, national and international levels. For instance, at the national level, developing nations face the dual challenge of securing low-cost energy financing while operating within international trade and investment regimes that prioritise investor-state dispute settlements, global intellectual property rights and restrictive trade obligations, all of which can limit the policy space needed for advancing just energy transitions. At the individual level, structural inequalities can make energy-efficient homes unaffordable for lower-income populations. While the energy transition cannot be expected to address all social and economic wrongs, understanding and addressing the underlying issues is necessary to prevent the transition from further perpetuating existing inequalities, which could undermine public acceptance, government support and, ultimately, efforts to achieve a just energy transition. Inaction and delay carry their own justice implications. The energy transition is unfolding amid challenging circumstances, including widening economic and social inequalities, geopolitical tensions, diminishing trust in institutions, great uncertainties about the future and the increasingly urgent need to address the climate emergency. Yet, delaying action exacerbates an already challenging situation, driving up costs and potentially leading to increasingly non-optimal trade-offs in transition-related activities. While it is not always possible to find consensus on all aspects of a just energy transition, advancing this transition requires strong multi-stakeholder coalitions and a shared vision around key issues. As the transition unfolds, collective action is needed at the local, national and international levels. Stakeholders must work together to create positive visions and agree on shared principles, as ‘guiding stars’ that outline how the energy sector can contribute to a more equitable world. These visions can in turn catalyse systemwide reforms, inform targeted policy design and support new governance frameworks. Insights from past experiences can inform decision making, but bold ambitions are needed to accelerate progress towards amore just and inclusive future.

International Renewable Energy Agency (IRENA)