Just Transition

The European Commission finally unveiled the Clean Industrial Deal, a competitiveness-driven approach to decarbonisation, aimed at securing the EU as an attractive location for manufacturing, including for energy intensive industries, and promoting clean tech and new circular business models. We asked MEP Michael Bloss (Greens/EFA) what to expect, and how to conciliate competitiveness with just transition.

Something sounds awry about the term ‘twin transition’. The concept, often used in EU or UN contexts, ties two crucial transitions: the move to renewable energy and the digitalisation of economies. While it sounds forward thinking, evidence suggests this pairing may be less beneficial than promised. As developing countries bear the socio-environmental costs while reaping limited benefits, a handful of tech giants continue to dominate global markets. Paz Peña raises a crucial question: is this ‘transition’ truly a path to equity, or does it deepen old divides under the guise of green progress?

The green technologies needed to rapidly cut our greenhouse gas emissions are already on the market. What’s more, they are, or very soon will be, cost effective. In other words, from the perspective of the household, it is, overall, cheaper to go green. However, there’s a catch: access to capital is king in the household energy transition. 

The climate emergency is the number one policy priority, requiring a fundamental overhaul of our economic system. During the Val Duchesse Social Partner meeting, the European Commission announced the creation of a Social Dialogue envoy. However, the roles of social dialogue and collective bargaining remain underappreciated, and the European Institutions need to focus on strengthening the role of trade unions in shaping the just transition throughout the next legislature.

In Illinois, a fossil fuel-funded group is infiltrating schools, promoting oil careers to kids. But in a state going green, advocates say they're selling students a false future. An investigation into the industry's pipeline to the classroom.

The Social Guarantee refocuses progressive politics on human relations, on how we care for each other, and on the importance of investing in the social infrastructure on which the rest of the economy depends. It draws on current thinking about the foundational economy, the care economy, and sustainable economic prosperity It offers a coherent, ethical, and well-evidenced basis from which to address such issues as investment, regulation, and carbon mitigation.

This paper has argued that an active industrial policy that is context appropriate, coherent, and adaptable can be utilised to address this challenge. Nevertheless, one must acknowledge that the necessary green transition on the EU level comes with transition costs, challenges, and opportunities that affect distinct people, firms, and countries very differently, and hence bears the threat of rising inequalities, both within and among countries. Central to the success of a green transition is, therefore, the EU’s adequate reaction to this fact. This reaction can then enable and facilitate a green transformation that really leaves no one behind.

This paper links two things that are often dealt with separately when discussing what we mean by the word “just” in the notion of a “just transition”. On the one hand, activists and reformers see this as an opportunity to empower marginalised populations and redistribute wealth-generating assets using the state in the form of green industrial policy. On the other hand lies private finance, especially in the form of asset managers, who own huge swathes of global companies. These competing notions of “just” are used as a way to discuss how to have a transition that leverages the investments of the private sector without once again simply giving capital everything it wants at the expense of everyone else.