What is meant by the term ‘Just Transition’?
BEFORE this topic can get the mainstream attention it requires, some basic definitions, principles and context need to be brought to the attention of the wider public. While a Just Transition can be applied to a number of sectors, the two basic components remain the same.
The underlying “Transition” component revolves around change: a movement from what we have to something better. There are a number of settings for this transformation, but most are along the broad lines of shifting from environmentally and socially damaging practices to those of a cleaner, restorative economy.
Currently, there are many activities that contribute toward climate change. Moving toward a future of more sustainable, low-carbon actions fits within the definition of this transition. A specific example is the movement away from coal as a means of electricity production to renewable energy sources such as wind and solar. The use of coal has many negative impacts on human and environmental health (such as water quality and air pollution) along with carbon dioxide emissions that contribute to climate change.
Renewable energy sources have far fewer of these negative impacts, so a largescale transition toward wind and solar power is a progressive step, as the result is better for both people and ecosystems. Importantly, this coal example is actually happening around the world and is no longer just a dream.
Despite the obvious benefits to the planet and society, a key driver is basic economics. Renewables are in many cases now cheaper than fossil fuels for energy production.
In South Africa (SA), the latest costs for electricity from independent power producers (IPPs) using wind and solar are now 40% cheaper than from coal. India recently cancelled plans for 13.7 gigawatts of new coal-fired power station capacity (about 37% of SA’s total current capacity) because solar is now cheaper.
So, due to the health, environmental and economic benefits, many of these changes are already under way or are going to happen soon.
Now we come to the second part of a Just Transition, and that is what form it can take. The “Just” component speaks to justice and fairness, and is mainly centred on the workers in industries that are to be down-scaled or replaced.
Many of the areas of transition are within the domains of basic services and human rights. These include energy access, water sources, air quality, agriculture, resource extraction and biodiversity preservation; which all have a direct impact on all of society and what future generations will inherit from us.
There is an obligation to make this transition process as fair as possible. There must be strategies to minimise the impact of those who will initially be unsettled, as the final outcome improves society.
For example, if government establishes policies to upscale renewable energy and phase out coal, then there must be a “Just” way of doing this so that workers in the coal sector are employed elsewhere.
This is not an easy task, but the first step is to acknowledge that in the broader process of creating better overall circumstances, those who are initially disrupted should be cared for.
While the interests of specific groups, such as the owners of the fossil fuel industries and their employees, in maintaining the status quo cannot be allowed to trump the interests of society as a whole. The process of large-scale restructuring to bring about an improved human-earth interaction system must minimise the collateral damage.
A Just Transition must have a plan to proactively map out how to compensate workers who are initially affected by these necessary changes, which will ultimately yield a net overall benefit for all.
The next consideration is timing and the political moment. Using the coal example, Eskom recently announced the planned closure of five coalfired power stations.
While these facilities are old and scheduled for decommissioning anyway, the message from Eskom was that it was due to renewable energy IPPs.
The result of this move from Eskom was that some trade unions started planning a campaign against these IPPs to protect the jobs of workers in the affected coal industries.
Conveniently, this suits Eskom, which has refused to sign 37 contracts with IPPs since July 2016. The unions are absolutely correct in standing up for workers’ rights but, in this case, an action against the IPPs would only be of short-term benefit.
Coal for energy generation is an industry in decline and power utilities around the globe recognise this.
For example, in the US a wind turbine technician is the fastest growing occupation, while the coal mining industry shed 10 900 jobs in one year.
It would be advantageous for the relevant unions in SA to campaign for the development of a proper plan for a Just Transition in this sector because this will provide better long-term opportunities for their members.
A Just Transition (across various sectors) is clearly important, but it requires proper planning and government intervention. It will not just happen by itself.
Market forces may drive many changes, but they will not necessarily be “just”. The key issue on this topic in SA, is that there is no official planning around a Just Transition, although the National Planning Commission is looking into it. The scope is too wide for a single document, but there could be specific ones such as a Just Transition plan for energy production (or agricultural reform or mining activities etc.).
A number of civil society organisations, industry players and trade unions are working on this issue, but government needs to step up to the plate.
There is a great opportunity to create decent jobs and livelihoods within a system that prioritises environmental sustainability, ecosystem restoration and climate change mitigation.
However, the concept of a Just Transition must be recognised and high-level planning must be done, urgently.
It is too important to ignore any more. Many of these changes are coming, regardless, and we must manage them in the most just and equitable way we can. It is right thing to do.
Richard Halsey, is a member of the Policy and Research Team at the Cape Town-based environmental organisation Project 90 by 2030.