Just energy transitions in developing countries

Energy systems worldwide require urgent transformation to tackle the escalating climate crisis, support long-term economic development and reinforce energy security. However, climate mitigation and energy transformation will affect certain workers, consumers and communities negatively in the short term. 

This brief considers how those various objectives can be reconciled through just energy transition polices in developing countries and reflects on initial experiences with a relatively new financing mechanism, the Just Energy Transition Partnership (JETP). 

To meet climate goals, energy transitions need to happen rapidly. But to be widely socially accepted and sustainable, they must also be just and equitable. A just transition must therefore address all sectors of the economy. It must also address social and economic challenges, such as poverty, unequal energy access and historical injustices. 

As the Paris Agreement reaffirms, developing countries need support from more developed nations to turn ambitious decarbonisation goals into effective climate action. Adequate financing is essential to avoid lock-in with fossil fuel investments and let countries pursue climate action without sacrificing economic development.

Just transition finance ensures all countries and regions have sufficient funds for climate mitigation and adaptation. In parallel, it transfers funds from the countries most responsible for greenhouse gas emissions to those most vulnerable to the resulting climate change.