Introduction to Just Transition

The Just Transition is important as it directly addresses the pressing need to combat climate change while ensuring that the socio-economic repercussions on communities are managed with care and fairness. We need to transition to a sustainable world, as shown by alarming climate trends such as rising global temperatures, increased droughts, and rising sea levels. With the goal of limiting temperature rises in line with the Paris Agreement, the transition to net zero emissions emerges as critical. However, achieving net zero involves significant changes across all sectors, which can adversely affect communities, particularly those dependent on high-carbon industries. The Just Transition seeks to balance environmental imperatives with the need for equitable economic development, ensuring that no one is left behind in the move towards a greener economy.

The Just Transition is a framework designed to ensure that the global shift towards environmental sustainability and a low-carbon economy is equitable and inclusive. It involves implementing strategies that both mitigate climate change, through renewable energy, reforestation, and conservation and address the socio-economic impacts on communities dependent on traditional industries. This approach includes creating decent work opportunities, providing reskilling and retraining programs, and ensuring comprehensive support for affected workers and regions, emphasising the importance of fairness and social justice in the climate action agenda.

Achieving the Just Transition, as outlined by recommendations from the UNEPFI for financial institutions, includes a series of strategic actions: committing to a just transition, understanding its implications, prioritising people in strategy and decision-making, implementing an effective