Earlier this year, The Next Economy made a submission on how a Just Transition Mechanism could be operationalised to the United Arab Emirates Just Transition Work Programme at the United Nations Framework Convention on Climate Change.
Here we explain what a Just Transition Mechanism is, why it’s needed and how we think it can be made a reality.
A Just Transition Mechanism and why we need it
The world has entered the implementation phase of the transition to net zero. While countries face different challenges, all are grappling with the multiple technical, social and economic complexities of one of the biggest transformations of the global economy since the Second World War. While national and international bodies can set climate targets, for these to be properly realised, additional support is needed to translate ambition into action in ways that will generate rapid, positive and lasting transition outcomes.
Enter the Just Transition Mechanism, a key initiative proposed under the United Arab Emirates Just Transition Work Programme at the UNFCCC. It’s intended to ensure that it’s someone’s job to guide, support and sustain transition activities to address the climate crisis while protecting and even enhancing the wellbeing of people and the environment.
At The Next Economy, we think this is critical. It is beyond the capacity of individual nations to manage the transition alone. If countries are to have any chance of achieving their climate goals, the focus needs to shift from setting targets to supporting countries in figuring out how to transform their economies to accelerate the transition to net-zero emissions in ways that reduce harm and maximise benefits.
Without this support, not only will the world fail to reduce emissions to the extent needed to tackle the climate crisis, but transition efforts may exacerbate inequality and poverty.
If designed well, the Just Transition Mechanism could facilitate the integration of just transition principles and approaches across different levels of government and global agencies, each responsible for different aspects of the transition. Not only would this help generate broader acceptance of the transition, but it would also increase the confidence of governments and investors in taking meaningful climate action at all levels.
How a Just Transition Mechanism can be operationalised
While bodies already exist both within and outside the UNFCCC to support transition efforts, more needs to be done to build the capacity of those needing support to know what they need and how to manage all elements of the transition to a decarbonised economy in a just and equitable way, and to ensure that those offering expertise and resources incorporate justice principles and a rights-based framework to their programs.
The Just Transition Mechanism can meet this challenge by ensuring that climate mitigation and adaptation efforts are managed in a just and equitable way and improve social, economic and environmental outcomes by:
- Mapping existing resources, funds, expertise and institutions.
- Undertaking assessments to ascertain what countries, regions, economic sectors and key actors need to support just transition efforts.
- Matchmaking to deploy technical and financial assistance in a responsive and appropriate manner.
- Synthesising, sharing and generating knowledge.
- Developing measurement, monitoring and reporting frameworks to support accountability.
Turning to the design of the mechanism, the priority areas to be worked out are:
- Scope, including whether it’s holistic and broad enough to consider justice and equity issues related to mitigation and adaptation efforts across all economic sectors, and able to offer practical and tangible support to integrate just transition considerations into existing plans and programs.
- Governance structure and work plan, including whether it’s overseen by a committee or advisory board,secretariat, host institutions or a pool of experts.
- Staffing, including ensuring that it is sufficiently resourced by staff with the expertise to direct resources and effectively liaise with institutions and those requiring support.
- Funding, including whether a new Just Transition Fund is needed to channel new grant-based and highly concessional finance.