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Sustainable Development, Value Chains & People

Just transition

A just transition is an approach to environmental and economic change that seeks to maximize decent-work and social opportunities while minimizing and addressing harms to workers, communities, and groups facing disadvantage. It emphasizes social dialogue, rights, social protection, skills, inclusive policy design, and fair distribution of transition costs and benefits.

Type
Concept
Updated

In simple terms

A just transition connects environmental action with employment, livelihoods, rights, and participation. It asks how changes such as retiring fossil-fuel assets, reshaping transport, or adopting circular production will affect different workers and places. The approach supports sustainable development and gives practical depth to social sustainability through social dialogue, skills development, social protection, enterprise support, and locally informed planning. It is not a promise that every existing activity will continue unchanged; it is a commitment to anticipate impacts, involve affected people, create credible pathways, and avoid placing disproportionate costs on those with the least power or capacity.

Why it matters

Transitions can lose legitimacy or deepen inequality when jobs, public revenue, energy access, and community identity are treated as side effects. Linking plans to the Sustainable Development Goals can reveal related outcomes, but affected people still need a real role in decisions. Early planning also gives employers, workers, and governments more time to align investment, training, and protection measures.

Example

Before closing a coal-fired plant, public authorities, employers, unions, and residents assess jobs, skills, contractors, local tax revenue, and energy reliability. They fund training, income protection, cleanup, and new investment with published milestones. Product traceability later helps new manufacturers substantiate input origins, while the transition plan tracks who actually receives the new opportunities.

How it differs

Social sustainability

A just transition applies fairness and participation specifically to structural environmental and economic change; social sustainability is the broader concept covering durable social conditions and inclusion.

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  1. Net zeroClimate & energy
  2. Just transition planPeople & value chains
  3. Sustainable developmentPeople & value chains

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  2. Key performance indicatorReporting & governance