Our key takeaway: The energy transition is creating new opportunities for employment, making renewable energy affordable and widely available, and inspiring optimism that we can curb the worst effects of climate change. That said, none of this can happen sustainably if we continue to perpetuate social and economic inequality. An unjust transition can risk some people losing their jobs without viable alternatives or social safety nets, can prevent other people from accessing affordable and reliable clean energy, and can harm still more people by displacing them from their traditional lands or destroying their livelihoods. Per a new brief from the UN Global Compact, the answer to these challenges lies in businesses meeting their responsibility to “embrace the urgency of a just energy transition, set ambitious targets, develop just transition plans and publicly report on progress”; “creat[ing] an enabling environment for companies to advance ambitious and effective just transition initiatives”; advocating for responsible energy policies and backing up their words with action; and respecting human rights, protecting ecosystems, prioritising stakeholder engagement and ensuring transparency in all of their activities and throughout the energy value chain. The brief is directed towards energy producers and providers, offtakers (large consumers of renewable electricity or zero emission fuels such as data centres, electric vehicles (EV) charging networks and shipping companies) and other businesses like grid operators, EV designers, storage companies, materials and components producers and developers of demand-side and digital management tools. However, the insights from the brief are also relevant for businesses who have any of these providers in their value chains—as well as companies looking at just transition principles more generally - covering just about every company!
The UN Global Compact published Just Transition and Renewable Energy: A Business Brief (May 2023), as part of a series developed by the Think Lab on Just Transition: