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JUST TRANSITION TOOLBOX

Just Transition Planning Toolbox

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The Just Transition Planning Toolbox is a practical guide to planning a climate or sustainability transition that is equitable and inclusive. Each of its five modules describes some key activities and relevant tools and methodologies for transition planning, and also includes some real-world examples and resources that offer inspiration and guidance. 

The toolbox is region- and sector-agnostic, so the processes, examples and resources may be of interest in different contexts to where they originate from. Here, however, you can find an overview of the toolbox content that comes from - or has a specific focus on - a particular region or sector or theme.

  • 1. Mobilizing stakeholders
  • 2. Developing objectives and vision
  • 3. Analyzing impacts and opportunities
  • 4. Devising strategies
  • 5. Resources and partnerships
  • Toolbox in Action
    ABOUT THE TOOLBOX
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4. Devising strategies
Module 4

Devising strategies

Strategies to address the employment, social, economic, and environmental impacts of a transition are a key output of just transition planning. These strategies draw on the diverse analysis described in Module 2 and Module 3.

To be transformational, these strategies should also look for opportunities to address some of the wider socioeconomic inequalities that exist in the places in which transition is taking place.

Different levers – controlled by different actors – may be available to promote just transition. They may include policy and fiscal reform, dedicated support programs, and strategic investments in affected regions.

The purpose of just transition planning, therefore, is to bring different interventions together in a way that ensures a coherent approach to regional and sectoral change.

View module as PDF Picture of Devising strategies
Picture of Devising strategies

4.1 Devising strategies to address transition impacts

The goal of just transition planning is to identify how different measures might, together, help to address key challenges. It requires an holistic approach to planning, which will ensure that just transition objectives are integrated into the work of different sectors. It will also identify interventions that can address different challenges that may arise at once.

Strategies are likely to use several different types of instruments or levers:

  • Policy and fiscal reforms

    These may help stimulate economic diversification and the emergence of new industries in affected regions; address specific environmental legacies, such as land degradation; provide for a smooth workforce transition as industries scale down; and/or provide social protection to the people who are most affected or vulnerable, such as people who lose their jobs and struggle to find new ones.

    The scope of reforms depends on the vision and principles defined by stakeholders (see Module 2.3). For example, if the goal is to tackle larger social and economic inequalities, this will require a wider array of policy interventions compared to strategies focused on narrower objectives like mitigating job losses.

    Ideally, you should mainstream just transition objectives across different legislation, regulations, and plans. This is true even if the transition is region-specific because much of the work involved in transition support is driven by measures incorporated into existing initiatives – or more significant reforms – in relevant sectoral portfolios.

  • Dedicated social and economic support programs

    These can help stakeholders absorb the near-term impacts of a transition and reorient themselves toward the new economy. For example, these programs can provide reskilling and re-employment assistance for workers and other community members. They can also build networks between local businesses to encourage innovation and new enterprises.

  • Strategic projects

    Strategic projects in infrastructure and regional facilities can generate short-term jobs that help offset other job losses. At the same time, they can create economic assets or improve connectivity that help regions attract investment to support economic rejuvenation and growth in the medium and longer term.

    They may also address other impacts of the low-carbon transition, for example by investing in renewable energy generation to offset the loss of electricity from fossil fuel plants.

    Well-designed projects can achieve more than one objective at once.

  • Financial sector reforms

    This type of reform may help align private financial flows with the just transition objectives. The financial services sector is important in creating financial stability, financial access, and inclusion. It also helps to develop capital markets that can be used for regional investments.

    Increasingly, central banks are integrating climate risks in their investment frameworks, but they may need more direction to also integrate the social dimensions of transition. Central banks can also strengthen disclosure requirements for financial institutions (by asking banks and financial institutions to say in which sectors and locations they are investing). This can help transition planners better understand how finance is helping (or hindering) just transition objectives in a specific context.

    In addition, the financial sector can support just transition planning by creating mechanisms that improve local access to finance in transition regions, including for small businesses or for women entrepreneurs.

4.1.1 Employment impacts

People whose jobs or livelihoods are affected by a transition need support to prepare for – and access to – the jobs of the future, or in otherwise managing changes in their employment status and income. This also includes workers who are employed informally, who can make up a large portion of the affected workforce in some sectors and places.

Transition strategies should ensure that any workers affected directly or indirectly by the transition are prepared for new jobs, and that they have adequate social safety nets available if new, decent jobs cannot be found. Barriers to re-employment may include their age, level of education, a misalignment between their skills and employer needs, and/or the inability to move to work in a different location. There may also be a time lag before new jobs come online.

Initiatives to support workers through a transition should be introduced early, ideally before layoffs occur, to ensure the workforce has sufficient time to adjust and the process is smooth. Strategies that are proactive about workforce support are likely to produce better outcomes for workers and can also reduce the costs of labor divestiture.

Strategies might include:

  • Reskilling and retraining of workers and other job seekers, particularly targeted toward sectors or activities where there is potential for local employment.
  • Job search assistance for job seekers, such as career guidance and counseling, and the assessment and validation of their expertise and prior learning.
  • Income support for retrenched workers who may not immediately be able to re-enter the job market, and for those who enter retirement.
  • Programs to help more workers move from the informal sector to formal employment.
  • Identification and reform of regulations that obstruct a smooth labor divestiture process – both in terms of the regulations themselves, and in their implementation.
  • Labor mobility schemes, to enable people living in transition regions to move to other areas to seek new jobs, including via mobility grants. Barriers to internal or external migration, or to remittance flows, may need to be tackled, since these are potentially important strategies for workers and households to manage the impacts of job losses.
  • Tailoring of the education curriculum toward the knowledge and skills that will be demanded in future (see Module 5.1).

EXAMPLES

Analyzing worker reskilling needs and using AI for job-matching, Poland
Compiling lessons on skills development needs and approaches, Wales
Identifying redeployment, reskilling opportunities, and labor market initiatives, North Macedonia
Online Vacancy Analysis Tool for Europe (Skills-OVATE)
Personal pathways program for steel plant employees, Australia
Program to promote employment and green jobs, Ecuador
Promoting green jobs, Ghana
Training, health and well-being support for coal workers and their families, Australia
Training, work-based learning and support service for dislocated workers, United States

RESOURCES

Enabling Fairness for Energy Workers and Communities in Transition (Resources for the Future, 2021)

This report provides insights from over 100 policies that can support fossil fuel workers and communities in the shift to a low-carbon economy.

General practical guidance on promoting coherence among employment, education/training and labour migration policies (International Labour Organization, 2017)

This guidance note promotes coherence among policies relating to employment, education and training, and labour migration, and provides eight principles against which coherence can be measured, as well as specific step-by-step guidelines on how an assessment should be made. A supplementary Manual on participatory assessment of policy coherence provides guidance on including relevant stakeholders in data collection and analysis for such an assessment.

Sustainable employment and welfare support toolkit (European Commission, 2020)

This toolkit provides insights on how to accompany the labor market transition in coal and carbon-intensive regions, focusing on providing short-term support for workers affected by changes in the labour market and providing medium- and longer-term actions that support employment and job- creation through regional diversification.

4.1.2 Social impacts

Strategies to address the different types of social impacts that may be experienced by individuals, households and communities during a transition (see Module 3.2) will likely involve a wide range of thematic areas. These may include, for instance:

  • Mental health support and counseling programs for workers, families, business owners, and the wider community;
  • Social infrastructure investment, i.e. in services, facilities, and networks that nurture community well-being, including in areas such as health, recreation, child care, and elderly care. It is also important to renovate and enhance public spaces that can serve as social connection points for local communities.
  • Strengthening and/or widening of social protection systems (see Module 2.2.6 on analysis of social protection systems).

EXAMPLES

Investment in sport and recreation facilities to revitalize communities in transition, Australia
Tax relief for households to mitigate the costs of carbon pricing, Canada
Using conditional cash transfers to support vulnerable households, Jamaica

RESOURCES

Considering gender in regional transformations: A toolkit for just transition regions (European Commission, 2023)

This toolkit provides guidance on identifying and managing the gendered impacts of local and regional level low-carbon transitions, focusing on the different challenges women, girls, men, and boys might face.

Mental health in rural communities toolkit (Rural Health Information Hub, 2019)

This toolkit compiles evidence-based and promising models and resources to support organizations implementing mental health programs in rural communities, with a focus on the United States context and on adult mental health.

The mental health gap action program (mhGAP) community toolkit: Field test version (World Health Organization, 2019)

This toolkit provides guidance on how to identify local mental health needs and tailor community services to match these needs. It offers practical information and tools for community providers to promote mental health, prevent mental health conditions and expand access to mental health services.

Toolkit: Conditional cash transfer programs (Inter-American Development Bank)

This toolkit is aimed at those who design and operate conditional cash transfer (CCT) programs. It provides a country-level analysis of the existing CCT programs in Latin America and the Caribbean.

Marginalized or vulnerable groups :
Centring older people in regional transformations: A toolkit for just transition regions (European Commission, 2023)

This toolkit provides a general outline of why older people should be central to planning for the just transition and introduces key action areas relevant to older people. It proposes strategies ranging from increased engagement with older people during planning, to specific interventions in sectors like health, infrastructure and the labour market.

4.1.3 Economic impacts

To ameliorate the economic impacts of a transition, and to take advantage of new economic opportunities, strategies will need to extend beyond job substitution and retraining (Module 4.1.1). They need to consider, for example, ways to promote the diversification of the local economy, through incentives for new enterprises and industries, or by growing existing industries. Sectors or businesses that have strong job creation potential can help to mitigate employment impacts; more broadly, it is important to support activities that can create new revenue flows in the local economy.

Strategies may promote the development of new small and medium-sized businesses (SMEs), including microenterprises and start-ups, particularly those with a focus on the green economy. They should also look at the support needs of SMEs that depend heavily on industries or activities which will phase down during transition. They will need help to reorient toward new opportunities. Support programs might include business incubators, or the creation of new business networks. Urban renewal programs that invest in upgrading town centers or city precincts can be useful strategies for attracting new firms and new residents.

Public services can also be affected by an economic downturn, as a decline in significant sectors of the local or regional economy will affect government revenues. Different levels of government may need to develop revenue substitution strategies. Fiscal reform at the national level might ensure, for instance, that local governments continue to have enough funds to deliver important services. Strategies that fund improvements in access to public transportation, and to other public services, or (where there are currently gaps) expand access to electricity, clean water and sanitation, and waste management services, might help stakeholders to better manage the impacts of transition. They also help to address underlying sources of inequality or vulnerability in a community.

As part of a just transition, it is important not to support the creation – or deepening – of dependencies on unsustainable industries. This means avoiding investment in new sources of carbon lock-in (for example, introducing or increasing fossil fuel subsidies to offset the economic impact of the transition on households or businesses, or reorienting SMEs – or public revenue – from one unsustainable sector to another).

EXAMPLES

Diversification support as part of the just transition plan for the Ida-Virumaa shale oil region, Estonia
Repurposing former coal mine site as an industrial zone, Czechia
Repurposing former mining site for large scale solar power plant, North Macedonia
Supporting economic diversification alongside coal phase out, Australia

RESOURCES

Effective policy instruments for green cities (European Bank for Reconstruction and Development, 2020)

This platform showcases over 50 policy instruments to promote a more sustainable future for cities and their residents, and describes examples from more than 60 case studies across the world.

Technology options toolkit: Transforming industries in coal regions for a climate-neutral economy (European Commission, 2021)

This toolkit provides decision-makers in coal regions with an overview of what technology options exist, or are likely in the future, for making productive use of existing coal-related infrastructure.

4.1.4 Environmental legacies

Where current unsustainable practices have caused environmental degradation, it is important to address it as part of a just transition – particularly if it poses ongoing threats to public health, economic activities, and/or ecosystems. The right interventions may also help to revitalize the local economy, such as where mining lands can be safely rehabilitated for other purposes and thus play a positive role in addressing the social and/or economic impacts of transition. (see Module 3.4 for assessment of environmental legacies and repurposing analysis).

For example, the restored land may be used for agriculture, green industrial development, or other economic activities, such as tourism or carbon sequestration. Restoring natural ecosystems is also a worthy goal that can have broader benefits (for example, if by reforesting land, the community can achieve better water quality or greater biodiversity).

Whatever the outcome, the remediation projects themselves can be valuable sources of jobs and can thus help address some of the employment impacts of a transition. Governments have an important role in re-zoning and repermitting of land, where needed, in a way that will support economic diversification.

Remediation strategies should have clear public and environmental health objectives, and may also support economic strategies. There should be clear responsibility for ongoing monitoring and maintenance of any sites where contamination remains.

A key principle to guide strategies for environmental remediation is “polluter pays.” Requiring those who caused the harm to cover the cost of repairing it – to the extent feasible – will minimize the risk that the public will be saddled with the cost instead, which would be an unjust outcome. This may sometimes be difficult, however. For instance, a site may have been abandoned, or the polluter may be long out of business, or those responsible for the damage may be small landholders or informal (or illegal) workers who are highly vulnerable themselves. Even in places where companies are required by law to restore land and waters they have degraded, it is not uncommon for remediation to be slow or never to occur, either because those companies responsible declare bankruptcy, or because of poor enforcement of regulations. Public investment will therefore likely be needed for some cleanups, and the state may retain an ongoing role in site management, at least until new private investors take on ownership if this happens as part of redevelopment (see Module 5.2 for example(s) of approaches to financing environmental remediation).

EXAMPLES

Guidelines for sustainable rehabilitation of coal mines, Mongolia

RESOURCES

Environmental rehabilitation and repurposing - Guidance on the governance of the environmental rehabilitation and repurposing in coal regions in transition (European Commission, 2020)

This toolkit provides guidance on the governance of environmental rehabilitation and repurposing of former mining assets, including some concrete examples.

Land and asset repurposing and sustainable post closure use of mine lands in the context of Just Transition, and more detailed presentation on Land reclamation and repurposing of assets (World Bank)

This resource describes the World Bank’s Land Repurposing Methodology (LRM) tool, which is used for evaluating post mining land use scenarios. Further information can be found in a more detailed presentation on Land reclamation and repurposing of assets.

Land reuse and redevelopment toolkit: A community champion's guide to creating healthfields (U.S. Department of Health and Human Services, Agency for Toxic Substances and Disease Registry)

This resource provides information on the procedures and resources needed to identify, clean-up, and redevelop contaminated sites that are slated for redevelopment.

4.2 Tackling inequalities as part of transition

Analyzing inequalities (see Module 2) helps to identify the underlying factors that create – or perpetuate – different forms of inequality and vulnerability in communities facing a transition. A transformational approach to just transition planning looks for ways to address those factors through the investments and activities that are set up to support the transition.

There are different possible strategies for reducing income inequality. For example, if the transition is specifically about the agriculture sector, you can ensure new initiatives in this sector promote the wide sharing of the benefits through ownership models or employment opportunities geared toward marginalized stakeholders.

To understand how a transformational approach might differ from short-term measures to facilitate a transition, consider the implications for gender inequality. Efforts to address gender disparities have evolved considerably. They recognize now that it is not enough to make activities equally accessible to men and women; it is important to tackle the reasons why women might not participate or might not benefit equally. These reasons might include lower literacy levels, far-lower land ownership rates, and social norms that constrain their ability to pursue an education or job opportunities.

  • Short-term measures might offer job training and placement to everyone who could be affected by the closure of a coal mine.
  • A transformational approach might also include the following:
    • Targeted reskilling programs for women;
    • Support for female entrepreneurs and women’s cooperatives;
    • Investments in infrastructure and public services that specifically address women’s needs and priorities;
    • Actions that specifically deal with the barriers that women face in accessing finance, resources, jobs, and markets;
    • Legal reforms and new programs to enhance women’s education, provide high-quality and affordable childcare, ensure access to reproductive health services, or tackle domestic violence;
    • The introduction of gender-responsive budgeting by governments.

This approach encourages the use of public resources that transparently targets the empowerment of women and improvements in gender equality.

EXAMPLES

Funding for disadvantaged communities around power plant in Illinois, United States
Supporting women entrepreneurs to access energy efficiency improvements, Uganda
Training young women as solar energy technicians, Marshall Islands
Using an affordable housing program to tackle gender inequality, Bhutan
Women-led solar cooperatives as part of the energy transition, Morocco

RESOURCES

Gender and climate finance toolkit (2X Global)

This toolkit enables investors to identify opportunities and mitigate risks in gender and climate finance. It provides a gender-smart climate finance overview, a guidance note for integrating gender in the investments processes, thematic notes on how to implement gender-smart climate finance across different themes, case studies, and impact measurement tools to monitor and evaluate the progress of these gender-smart climate finance investments.

Gender checklists for specific sectors (Asian Development Bank)

This website provides a range of sector-specific toolkits and guidance, including for working towards gender equality in: Agriculture and Natural Resources; Education; Energy; Gender Equality Results and Indicators; Health; Law and Policy; Micro, Small, and Medium-Sized Enterprise Finance and Development; Public Sector Management; Resettlement; Transport; Urban Development and Housing; Water Supply and Sanitation. 
Some of these resources are available in Bangla, Indonesian, Nepali, Vietnamese, and Russian.

Inclusive digital economies and gender playbook and associated e-learning course (Asian Development Bank, 2022)

This is a e-Learning course focused on building gender-inclusive digital economies and recovery in developing markets by empowering women through digital literacy. It describes common constraints faced by women in developing markets, how technology use can promote gender-inclusive digital economies, and practical solutions for achieving breakthroughs.

Montevideo strategy for implementation of the regional gender agenda within the sustainable development framework by 2030 (United Nations Economic Commission for Latin America and the Caribbean, 2017)

This report highlights various structural challenges that must be targeted in a transition process in order for it to be transformative for gender inequality. It provides guidance on overcoming these challenges, including specific measures.

Preparing a project gender action plan and examples of Gender Action Plans (GAPs) for specific projects and programs (Asian Development Bank)

This resource offers guidance on gender mainstreaming in development interventions, and provides examples of Gender Action Plans for specific projects and programs.

4.3 Preparing a Just Transition Plan

An overarching Just Transition Plan helps consolidate the activities described in these modules into one coherent strategy:

  • Bring together the visioning and assessment processes (see Module 2 and Module 3);
  • Describe the key strategies to be prioritized (see Module 4);
  • Elaborate on issues relating to implementation (see Module 5);
  • Clearly describe how different stakeholders were involved in developing the plan, and how they will be involved in its implementation (see Module 1);
  • Bring together the different social, economic, and environmental goals of the transition and of future regional development;
  • Integrate equity and justice in all aspects of the plan.

By bringing together often disparate efforts to support a transition, the Just Transition Plan improves the coherence between different activities and helps to identify synergies between the actions of different stakeholders. A socially inclusive planning process should also be able to identify the systemic issues that might constrain the transition itself or the pursuit of just outcomes, and suggest how to handle them.

While the structure of a Just Transition Plan depends on the context, it might include the following elements:

  • Describe and explain major economic or production-related changes, the socioeconomic context in which they are or will take place, and potential transition pathways and impacts (see Module 2);
  • Clarify the vision and set of just principles that will guide planning (see Module 2) and how different stakeholders can help shape them during the planning process (see Module 1);
  • Elaborate on the strategies that will address the goals of a just transition, and how they link to the transition principles, such as a desire to tackle socioeconomic inequality (see Module 4);
  • Explore the financing options available to implement these strategies (see Module 5.2);
  • Detail a monitoring and evaluation framework that will be used to track progress and refine objectives and strategies (see Module 5.3);
  • Clarify the bodies and stakeholders responsible for implementing and monitoring each element of the plan. Specify how they will coordinate and work together, and what accountability mechanisms there are to track the implementation and success of a just transition.

Planning and implementing such major socioeconomic change is an iterative process that takes considerable time. Therefore, an initial Just Transition Plan may not detail the entire blueprint for regional or sectoral transition, but should at least describe the ongoing process of adaptive management that will be followed to identify further actions and investments over time.

The economic development components of a Just Transition Plan need to take account of future climate risks, and ensure prioritization of climate-resilient development pathways.

EXAMPLES

Just Transition Development Plan for a coal mining region, Greece
Midlands just transition pathway, Ireland
Taranaki 2050 Roadmap, New Zealand
Template for Territorial Just Transition Plans, Europe

RESOURCES

A Territorial Just Transition Plan for health protection - Health assessment tool (Health and Environmental Alliance)

This tool focuses on the health aspects of the territorial just transition plans. Its six principles are based on the Toolkit for assessing effective Territorial Just Transition Plans. It helps those interested in the health aspects of Just Transition to assess how public health protection and the well-being of populations are included in a given territorial or national Just Transition plan.

Climate and disaster risk screening tools (World Bank)

This information hub provides access to an array of rapid assessment and in-depth screening tools that can be used for assessing climate risks in different sectors, including agriculture, energy, health, finance industry, natural resources, transport, water, urban development, etc. This can be useful information in designing interventions and programmes in these sectors.

Industry transition roadmap planner: A step-by-step guide for developing industry transition roadmaps (Leadership Group for Industry Transition)

This interactive tool supports decision-makers to design, develop, and implement industry decarbonization roadmaps for various sectors. It covers different phases, from set-up, through design, to monitoring and evaluation.

The Just Transition Planning Process for Business: A Toolkit to Drive Social Dialogue and Stakeholder Engagement Toward a Just, Equitable and Inclusive Transition (Business for Social Responsibility)

This guidance describes a process for companies to begin thinking about and developing their engagement with just transition efforts within their company and value chains, at a corporate level. It is tailored toward the energy and utilities sectors, although learnings could apply to other sectors and company types.

Toolkit for assessing effective Territorial Just Transition Plans, and associated Territorial Just Transition Plan assessment tool (World Wild Fund Europe, 2021)

This toolkit is aimed at stakeholders involved in developing Territorial Just Transition Plans, and provides information about what makes a good plan. A related Territorial Just Transition Plan assessment tool provides 31 questions and indicators linked to different just transition principles.

What makes a transition plan credible? Considerations for financial institutions (Climate Policy Initiative, 2022)

This report, targeted to financial institutions, proposes some key elements to consider when evaluating the credibility of organizational transition plans. It outlines how financial institutions can engage with transition plans, and with the broader enabling environment. It complements the Framework for Sustainable Finance Integrity.

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