Just Transition is a policy concept aimed at protecting all stakeholders who may be adversely affected in the process of overcoming the climate crisis and transitioning to a carbon-neutral society. The International Labour Organization (ILO) summarizes it as "greening the economy in a way that is as fair and inclusive as possible for everyone, creating decent work opportunities, and leaving no one behind." In the era of carbon neutrality and ESG management, industrial structures are shifting rapidly — leaving workers, local communities, and small business owners among the vulnerable groups at risk of losing their livelihoods and economic foundations. Governments and companies pursue policies to expand social equity and inclusivity through fair burden-sharing and the creation of quality jobs, working to minimize harm to those most affected.
Just Transition goes beyond simply minimizing the harms caused by structural change — it aims to ensure that the benefits created by the transition are equitably distributed. To realize just transition, governments and companies must create and supply green jobs in eco-friendly and renewable energy sectors. Providing workers in incumbent industries with access to new skills training and retraining opportunities is also essential. For example, workers in high-carbon industries such as coal and fossil fuels — and the communities they belong to — face the risk of losing their economic foundations as part of the transition. Going beyond minimizing the harm from these structural changes to fairly distributing both the benefits and the burdens is precisely what just transition means.
[Just Transition ⓒESG.ONL]
A smooth transition requires, above all, an open dialogue and transparent processes involving all stakeholders — governments, businesses, workers, and local residents. Tailored support policies that reflect the specific characteristics of local communities and industries must also be developed, and procedural justice — ensuring that the voices of those most affected are adequately heard — must be carefully upheld. By enabling participation and cooperation among diverse stakeholders, just transition aims to minimize the conflicts and disadvantages that can arise during the transformation process. The concept of just transition is expected to grow increasingly important as humanity continues to pursue climate action and sustainable development.
by Editor O