The "just transition," which ranks high on the global agenda, is not far from us: On October 24, 2023, the "Inclusive Low-Carbon Transition Research for Old Residential Areas in Shandong Province" project, jointly undertaken by the World Resources Institute (WRI) and the Jinan Municipal Engineering Design and Research Institute, officially launched.
Under the national "dual carbon" target, this project will fully consider social, technical, and economic inclusivity, exploring inclusive low-carbon retrofit technologies for old residential areas in northern China, as well as synchronized low-carbon development paths for urban and industrial sectors, including forms of industrial waste heat and energy utilization.
The essence of a just transition is that "the green transformation of the economy must be as fair and inclusive as possible for everyone affected, create decent job opportunities, and leave no group behind." The impacts of the low-carbon transition on our lives include job losses for employees in high-carbon sectors such as coal, changes to the residential environment of some people, and increased costs of goods due to the use of sustainable materials. Ignoring these impacts could put low- and middle-income residents at a disadvantage.
Currently, one of the most discussed issues in the just transition debate is that of indigenous peoples. Remote areas where indigenous communities gather often have high-quality natural resources suitable for low-carbon energy development, but such development may affect their livelihoods and living environments. In recent years, the impact of renewable energy development on indigenous peoples has sparked intense international debate, and NGOs participating in these discussions have emphasized the topic of just transition.
A spokesperson responsible for government and stakeholder relations at the Australian state-owned Clean Energy Finance Corporation has said they hope to strengthen investor focus and practice on indigenous issues in the renewable energy sector, as well as explore the commercial opportunities that renewable energy projects could bring to indigenous peoples.
It is reported that on December 26, 2023, the Colombian Ministry of Energy issued a policy encouraging the country's indigenous peoples to participate in the development of the renewable energy sector. Indigenous communities can collaborate with companies to build solar power facilities in their communities, with the electricity produced not only meeting local needs but also being sold to the grid.
China, in the process of actively developing the renewable energy sector, has also paid attention to the impact on remote communities and indigenous peoples, requiring renewable energy projects to report social environmental impacts in their environmental impact reports. In June 2023, Taiwan proposed amendments to the "Renewable Energy Development Act," requiring that when submitting geothermal exploration and development applications, projects must consider their impact on indigenous lands and communities, obtain local residents' consent, and share relevant benefits with them.
Excerpt from an environmental impact report of a photovoltaic power project
The 2023 United Nations Climate Change Conference (COP28) in its final global stocktake text called for accelerating action in this critical decade in a just, orderly, and equitable manner to achieve a transition away from fossil fuels.
As the acceleration of the low-carbon transition continues, we believe that issues of fairness and inclusiveness arising from it will gain more attention in the coming year, and the associated financing needs will become new opportunities worth exploring.