Fair & Inclusive Transitions

“Addressing the climate and biodiversity crisis is not just about getting to net zero. It’s about the impact of that transition on people and communities… If we don’t mitigate the consequences and maximise the opportunities – particularly in relation to jobs and skills that that offers, the transition is simply not going to happen…”

– Sarah Gordon, CEO, UK Impact Investing Institute, COP26, Glasgow

There is no question that the impacts of climate change are being, and will be, felt most keenly by poorer countries and poorer people. However, the small subset of announcements below underscore why COP includes days of action and dialogue focussed on the many social dimensions of climate change including youth and employment, nature, adaptation/loss and damage, gender, transport, cities/regions and the built environment. Investment of resources and finance in the fairness and inclusivity of the climate transition is a key aspect of driving towards net zero. The scale and urgency of the challenge is such that we cannot afford to leave anyone behind.

Announcement #1:

At a country level, 16 governments plus the European Union signed a pledge supporting the conditions for a ‘just transition’ internationally. In doing so the countries noted,

“We recognise that the effects of climate change disproportionately affect those in poverty, and can exacerbate economic, gender and other social inequalities, including those resulting from discriminatory practices based upon race and ethnicity; the transition towards net zero will affect, most acutely, those in workforces in sectors, cities and regions relying on carbon-intensive industries and production.”

Although Australia did not sign the pledge, these same issues are clear in the domestic landscape.

Announcement #2:

The Development Finance Institutions (DFIs) and Multilateral Development Banks (MDBs) highlighted the fact that 70% of the 1.3 billion people living in poverty are women; in urban areas, 40 % of the poorest households are headed by women. Women also lead the world’s food production (50-80%), but they own less than 10 % of the land. In response, they have formed the 2XCollaborative, in partnership with the GenderSmart investing initiative released their Gender Smart Climate Finance Guide and Green Toolkit aimed at driving increased focus on gender in investing.

Announcement #3:

At a more local scale, 1,050 cities and local governments have joined the Cities Race to Zero to raise climate ambition, and reach net-zero no later than 2050.

Announcement #4:

The Academic, Business and Finance sectors have also been focussed on ensuring the transition to net zero is inclusive and just. In the lead up to the COP, London School of Economics Grantham Institute’s program on Investing in a Just Transition held a ‘Just Zero’ conference to bring together some of the key activities that are underway to mobilise the financial sector in support of a just transition.

Announcement #5:

Finally, the Peoples Forests Partnership announced it is targeting climate finance for indigenous communities’ stewardship to protect biodiversity.

Much more about the social dimensions and action being taken can be found at the websites for some of the pavilions in Glasgow, ranging from Health to Indigenous to Adaption, Business, Nature and Water.