7/23/2019 Towards a Just Transition http://slidepdf.com/reader/full/towards-a-just-transition 1/23 Towards a just transition Institute for Policy Studies Working Paper November 20!" #raft" #o not $uote wit%out permission &scar 'eyes oscar(ips)dc"org *ontents I. What is a Just Transition?......................................................................................................................................3 Challenges and Opportunities...................................................................................................................................5 Challenges............................................................................................................................................................5 Opportunities.......................................................................................................................................................5 II. The Economics of a Just Transition......................................................................................................................6 1. The limits of maret!"ased climate polic#......................................................................................................6 $. %inanciali&ation and the 'green econom#(......................................................................................................) 3. The trou"le *ith transnational corporations..................................................................................................1+ ,. Can capitalism sur-i-e?.................................................................................................................................1$ III. Constructing a Just Transition...........................................................................................................................1, 1. gents of change............................................................................................................................................1, $. Technologies of transition..............................................................................................................................16 3. /ringing the state "ac in..............................................................................................................................1) I0. e2t teps for a Just Transition4 %i-e Taea*a#s.............................................................................................$+ 1. Just Transition is a"out -alues and frames................................................................................................. $+ $. n euit# and rights frame*or....................................................................................................................$1 3. rioriti&e rene*a"le energ#...........................................................................................................................$$ ,. 7eclaiming the state.......................................................................................................................................$$ 5. ne* approach to in-estment.......................................................................................................................$3 1
November 20!" #raft" #o not $uote wit%out permission
&scar 'eyes
oscar(ips)dc"org
*ontents
I. What is a Just Transition?......................................................................................................................................3Challenges and Opportunities...................................................................................................................................5
II. The Economics of a Just Transition......................................................................................................................61. The limits of maret!"ased climate polic#......................................................................................................6
$. %inanciali&ation and the 'green econom#(......................................................................................................)3. The trou"le *ith transnational corporations..................................................................................................1+,. Can capitalism sur-i-e?.................................................................................................................................1$
III. Constructing a Just Transition...........................................................................................................................1,1. gents of change............................................................................................................................................1,$. Technologies of transition..............................................................................................................................163. /ringing the state "ac in..............................................................................................................................1)
I0. e2t teps for a Just Transition4 %i-e Taea*a#s.......................................................................................... ...$+1. Just Transition is a"out -alues and frames.................................................................................................$+$. n euit# and rights frame*or....................................................................................................................$13. rioriti&e rene*a"le energ#...........................................................................................................................$$,. 7eclaiming the state.......................................................................................................................................$$5. ne* approach to in-estment.......................................................................................................................$3
8ast chance to sa-e the planet9 %ailure is not an option9 :ae ;ollande a climate hero9 The <
climate change conference in aris =CO$1> is "eing promoted in some uarters *ith the ind of
h#per"ole that could mae a used!car salesman "lush. et the outcome is not difficult to predict4 a
lo*est!common denominator deal that falls a long *a# short of pre-enting dangerous climate
change@ putting fe* if an# o"ligations on the "iggest polluters.
rogressi-e acti-ists@ AOs@ trade unions and possi"l# e-en a fe* climate negotiators *ill condemn
the deal as inadeuate. :an# of us *ill go further@ mo"ili&ing around the *orld and after the CO
to proclaim people po*er in the face of go-ernment inaction. /ut *hatBs our stor#?
This "riefing is a modest attempt to pro-ide a narrati-e or@ at least@ some principles and a
frame*or that helps "rea the uestion of alternati-es to stalled < tals into managea"le "ites.
The Just Transition frame*or as discussed here has three aims4
• Moving beyond the COP. The <Bs consensus!"ased@ intergo-ernmental process *ill ne-er
#ield an outcome that is adeuate to the scale of the climate crisis. It frames climate
responses in terms of =uasi>scientific long!term targets *hile a"stracting from real *orld
causes of climate change. %ossil fuels are "arel# mentioned. egotiators often act according
to 'national interests( that are a pro2# for the interests of large@ transnational corporations.
The language and solutions offered "# communities alread# facing climate change impacts
are marginalised and ignored. Targets are announced that contradict the patterns of
infrastructure in-estments ! something that also applies to rhetoricall# progressi-e
'champions( amongst the ADD group of de-eloping countries. Official positions ha-e onl# a
thin relation to democrac#. The CO is a uintessential 'post!democratic( space.
1
/#contrast@ a Just Transition focuses attention on the underl#ing factors that are alread#
changing our *orld4 economic models@ technological de-elopment and demographic
changes. nd it opens the field for a far *ider set of actors to "e considered the principal
agents of change@ according social mo-ements@ frontline communities and trade unions a
more central role than state!centric CO politics.
• Changing energy systems. Its *idel# acno*ledged in climate de"ates that *e need to
mo-e out of fossil fuels and into rene*a"le energ#@ com"ined *ith massi-e efforts to mae
our energ# use more efficient. goal of 1++F rene*a"les is often used as shorthand for thisshift. Its a lauda"le aim@ "ut one that can onl# "e achie-ed "# rethining ho* energ#
net*ors function@ ho* the "enefits are distri"uted and@ ultimatel#@ *hat a societ# reliant on
rene*a"les loos lie. ast energ# transitions =from "iomass to coal and oil as the
predominant sources> ha-e pla#ed a pi-otal role in reorienting societ# mo-ing
populations@ shifting the possi"ilities of *here and ho* goods are traded@ and ena"ling
different industrial production methods.$ The coming transition *ill "e no different and
reuires a positi-e -ision not least@ "ecause the 'rene*a"les( re-olution is competing *ith
a series of more reactionar# energ# futures and climate scenarios that assume the increased
1 ee Crouch@ C. =$++,> Post-Democracy olit#$ ee mil@ 0. =$+1+> Energy Transitions: History, Requirements, Prospects raeger
use of nuclear po*er@ *aste incineration@ car"on capture and storage =CC>@ geoengineering
or@ simpl#@ that allo* for dangerous climate change@ dispossessing a maGorit# of the *orlds
people *hile the rich fe* protect themsel-es "ehind gated communities and "order fences.3
Ensuring access to energ# for the 1.$ "illion people in the *orld *ho still lac it@ and the
man# more facing 'energ# po-ert#@( are euall# -ital to achie-ing a Gust outcome.
• Connecting labor, community and environmental struggles. The historic understanding
of Just Transition calls for "ringing together the traditional la"or mo-ement and
en-ironmental organi&ations. /ut ho* do *e mae sense of that in a *orld of increasingl#
precarious@ informal emplo#ment@ non!union forms of *orer organi&ing@ and gro*ing
recognition of grassroots economic and en-ironmental Gustice mo-ements?
In practice@ achie-ing a Just Transition to a different econom# isnt solel# the preser-e of climate
acti-ists@ and reuires more than simpl# a change in our energ# s#stem.
I" W%at is a +ust Transition,
It is important not to get too fi2ated on terminolog#@ "ut the actions and *ords of social mo-ements@
trade unions and communit# groups ad-ocating a 'Gust transition( are *orth highlighting as a *a#
to situate our discussion.
The term 'Just Transition( *as first used in the <nited tates in the late 1H6+s to sho* that *orers
*ould "enefit from reducing to2ic pollutants in industr#., Contrar# to pre-ailing m#ths@ proponents
of a Just Transition argued that protecting the en-ironment need not mean Go" losses and could
actuall# "enefit *orers.
%or political organi&ers@ that meant em"racing ne* alliances as in 1HHD@ *hen the Just Transition
lliance *as formed in the < that "rought together *orers from polluting industries and
fenceline communities.5 In its arguments and in practice@ the JT sho*ed that la"or and the
en-ironment need not "e in tension@ and that acti-ists from "oth mo-ements can learn from each
other.
The language of Just Transition has since spread to the la"or mo-ement internationall#@ *ith
proponents arguing for the centralit# of la"or to climate solutions@ including compensating@retraining and protecting those in sectors =such as coal mining> that are incompati"le *ith a clean
econom#.6
The ne*er definitions of a Just Transition tend to go "e#ond a narro*@ reacti-e focus on the
3 ee /u2ton@ . and /. ;a#es =$+15> The Secure and the Dispossessed. luto ress, The term Just Transition *as coined "# Ton# :a&&occhi of the Oil Chemical tomic Worers International <nion=OCW>@ a trade unionist *ho led efforts to enlist en-ironmentalist support in striing against hell in 1HD3. Theiraction *as an earl# e2ample of la"or and en-ironmental mo-ements Goining together in support of *orers health andsafet# the initial frame*or *ithin *hich earl# JT *or *as carried out.5 Climate Justice lliance =$+15> '#stem Change ot Climate Change4 Organi&ing for a Just Transition(
6 eg. Canadian 8a"our Congress. $+++. 'Just transition for *orers during en-ironmental change(@canadianla"our.casitesdefaultfilespdfsGustransen.pdf
la"oren-ironment =or climate> ne2us. %or e2ample@ na"ella 7osem"erg of the International Trade
<nion Confederation =IT<C> sees a set of common 'root causes( underl#ing en-ironmental and
social crises4 'an unregulated@ consumption!oriented and sociall# unGust economic model.(D he
ad-ocates for a Just Transition frame*or that pacages together polic# proposals addressed to
-ulnera"le *orers and their communities. Those include acti-e la"or maret plans that can identif#
emplo#ment impacts of climate measures@ "ut e2tend to include green in-estment@ reformedcorporate go-ernance and national planning for resource efficienc#.)
/e#ond specific policies@ a Just Transition can "e seen as the cornerstone of a "roader narrati-e of
progressi-e economic change. That is e-en true of the la"or mo-ement@ *ith the IT<C proposing
the follo*ing framing4
Climate is also our issue "ecause addressing it implies recogni&ing the need for a huge
transformation in our societies@ in our production and consumption s#stems@ and therefore
also in Go"s. nd recognition alone is not sufficient. 8eadership "# the la"or mo-ement isneeded for transforming the s#stem. <nless *e fight for maing this transformation *or
for the people@ ensuring a Just Transition to*ards a trul# sustaina"le model@ *e *ill onl# see
superficial changes to*ards more ineualit# and en-ironmental degradation.H
:ore recentl#@ the <!"ased Climate Justice lliance has campaigned for a Just Transition on terms
that see to "roaden its rele-ance "e#ond the organi&ed la"or mo-ement. While the largest < la"or
unions ha-e formed a /lueAreen lliance *ith some mainstream en-ironmental organi&ations@1+
CJ notes that the economic crisis in the < goes "e#ond unioni&ed *orers to encompass the 1D
million unemplo#ed and man# more 'underemplo#ed( *orers in lo*!*age Go"s *ith poor
conditions and irregular hours. %or that reason@ CJ is "uilt around grassroots organi&ing =in
particular@ in communities of color> and ne* la"or *oring alongside en-ironmental groups. Its
anal#sis focuses on the shift from 'e2treme energ#( to 'local li-ing economies(@ *hich are modeled
around a series of goals that include &ero *aste@ the promotion of regional food s#stems@
communit#!"ased rene*a"le energ#@ pu"lic transportation@ afforda"le and energ# efficient housing@
and ecos#stem restoration.11 8ocal o*nership is a e# pillar of the CJ -ision too@ such that it aims
to 'create structures that *orers and local communities collecti-el# control@ and allo* them to
mae democratic decisions on ho* to run them.( series of si2 local pilots are under*a# that aim
to em"od# this -ision.
This "riefing *ill loo at ho* to further de-elop this approach first@ "# e2amining the economic
opportunities for a Just Transition@ then@ "# e2amining the agents@ technologies and ne* economic
forms that could "ring it a"out.
D 7osem"erg@ . =$+1+> '/uilding a Just Transition4 The linages "et*een climate change and emplo#ment(@ International ournal o! "a#our Research -ol $. issue $) 7osem"erg@ @ pp.1,6!1,)HIT<C =$+11> 'Climate change4 an issue for *orers K trade unions(@ IT<C Climate Change Worshop *ith outhfrican Trade <nions $D$) Jul#
=although these ha-e tended to address ineualit# and *orersB interests poorl#>.15 :ore
promisingl#@ the CJ sho*s ho* grassroots communit# organi&ing can o-ercome the limits of
organi&ed la"or in a conte2t *here large num"ers of people are unemplo#ed and underemplo#ed. It
fuses a Just Transition narrati-e into the *or of en-ironmental Gustice mo-ements@ *hich sprang
up to counter racism in the form of disproportionate distri"ution of to2ic *aste@ *ater and air
pollution and other pu"lic health and en-ironmental ha&ards.16
s *e shall see "elo*@ a num"er ofother mo-ements and organi&ations are engaged in related *or to forge a sustaina"le transition
a*a# from the current economic model.
II" T%e -conomics of a +ust Transition
What are *e transitioning to? s *e sa* a"o-e@ a Just Transition reuires some fundamental
changes in our economic model. %or a"out the past 3+ #ears@ industriali&ed countries ha-e e2ported
maret li"eralism ='neoli"eralism(> as the glo"al norm. In climate polic# circles@ the predominant
approach is to encourage car"on pricing in the hope that marets might "etter cost climate damage
and so incenti-i&e a transition to a 'lo*!car"on( econom#. /ut that polic# focus@ and the stor#underl#ing it@ faces a series of challenges. The hegemon# of marets in climate polic# flies in the
face of e-idence that state support and su"sidies are more effecti-e dri-ers of transition. Nigging
deeper@ the 'financiali&ation( of the econom# can "e interpreted as the e2haustion of a long *a-e of
economic acti-it# that is no* reaching its end. The future is not #et *ritten@ "ut a genuinel# 'green
econom#( *ill not emerge from efforts to commodif# ecos#stems and enlarge e2isting marets.
Instead@ it reuires a step a*a# from toda#Bs model that puts transnational corporations in the
dri-ing seat.:ore fundamentall# still@ *e shall see ho* toda#s information technologies pose
fundamental uestions a"out the la*s of suppl# and demand that underpin ho* capitalism functions
and it is "# no means clear that it can sur-i-e. Opportunities for a more Gust transition open up at
each of these le-els of economic and polic# change.
" T%e limits of market)based climate policy
The assumption underl#ing much of contemporar# climate polic#@ as laid out in the influential Stern
Re%ie& on The Economics o! $limate $hange@ is that climate change is 'the greatest maret failure
that the *orld has e-er seen.(1D That sounds dramatic@ "ut it simpl# acno*ledges that marets ha-e
not put a -alue on the emissions of greenhouse gases that cause climate change. The corresponding
diagnosis is that a price should "e put on car"on@ either through ta2ation or a s#stem of emissions
trading. ccording to the theor#@ if that car"on price is sufficientl# high then it *ill change
in-estorsB "eha-ior. t present@ in man# places it remains cheapest to generate electricit# "# "urning
coal =*hen comparing the 'le-eli&ed cost of electricit#(>. ricing pollution should mean that coal
prices rise and if the# rise or are proGected to rise high enough@ then other forms of electricit#
generation@ such as gas or solar po*er@ could out!compete coal.
7ealit# is rather more mess# than economic theor#@ ho*e-er. %or all the gloss# reports ad-ocating
15 https4***.transitionnet*or.org. %or a critiue along these lines@ see Trapese =$++H>.16 Cole@ 8. and . %oster =$++1> 'rom the (round )p: En%ironmental Racism and the Rise o! the En%ironmental
ustice *o%ement @ e* or <ni-ersit# ress1D tern@ . =$++D> The Economics o! $limate $hange@ Cam"ridge <ni-esrit# ress
an 'adeuate( car"on price@ it has pro-en stu""ornl# difficult to achie-e. Car"on ta2es ha-e had a
limited effect@ although the# are generall# set too lo* to mae a transformati-e difference.1)
Emissions trading =pushed in cases *here ta2es pro-e politicall# impossi"le@ such as the E<> has
fared *orse.1H ne* commodit# ='car"on permits(@ a pro2# for all greenhouse gases> is in-ented "#
a state or group of states@ "ut it refuses to 'sit do*n@ shut up@ and "eha-e lie a proper
commodit#.($+
Whoe-er creates car"on permits at the same time determines the suppl#!side of themaret and is su"Gect to massi-e lo""#ing "# "oth corporations and =in the case of the E<>
go-ernments acting in the interest of certain sectors. The result is an emissions trading s#stem that
eeps car"on prices lo*@ offering su"sidies to polluters in the process.$1
Car"on trading is not onl# ineffecti-e@ "ut deepl# unGust. ri-ate electricit# companies ha-e used
the emissions trading e2cuse to hie prices "e#ond *hat pollution permits actuall# cost them@
profiting at the e2pense of ordinar# citi&ens. Car"on ta2es can "e similarl# regressi-e@ placing the
greatest share of the "urden on the poorest people.$$
While recent de-elopments in energ# marets@ nota"l# the rapid fall in the price of solar panels@
could "e cited as e-idence of a maret!"ased transition@ the# actuall# sho* the opposite. u"lic
polic# and pu"lic in-estment@ rather than free marets@ are the lead factors "ehind the rapidl# falling
price of solar 0 =and@ to a lesser e2tent@ *ind energ#>. tate!o*ned "ans in China pro-ided
concessional loans to factories producing solar panels@ spurring a price collapse.$3
t the same time@ -arious forms of feed!in tariffs ha-e opened the space for rene*a"le energ# to
e2pand its share *ithin esta"lished electricit# marets. eoli"eral polic#maers *arn against these
failed. In these initiati-es lie the seeds of a different approach to achie-ing a 'lo*!car"on(
econom#@ as e-en some proponents of car"on pricing and trading no* admit.$, u"lic polic# and
pu"lic e2penditure =from state and municipal "udgets> are a e# part of this alternati-e approach
nota"l#@ in-estment in pu"lic infrastructure@ pu"lic institutions and more democratic decision!
maing@ research and de-elopment@ and shifting su"sidies from fossil fuels to rene*a"les.
roacti-e state in-estment policies ha-e made significant head*a# in some countries@ "ut are
challenged "# austerit# and a pu"lic polic# that emphasi&es and encourages financial sector
in-estment rather than culti-ating pu"lic proGects directl#.
1)The# are also misaligned see http4***.oecd.orgta2ta2ing!energ#!use!$+15!HD)H$6,$3$33,!en.htm1H %or e2ample@ although emissions co-ered in sectors co-ered "# the E< ET decreased@ emissions trading *as notthe cause. ee Aloaguen@ O and l"erola@ E. =$+13> ssessing the factors "ehind CO$ emissions changes o-er the
phases 1 and $ of the E< ET4 an econometric anal#sis =o. Woring aper o@ $+13!15>. CNC Climat@http4***.cdcclimat.comI:Apdf131+cdcclimatr*p1315assessingthefactors"ehingco$emissionschanges.pdf $+ http4papers.ssrn.comsol3papers.cfm?a"stractidP$$+1+,H Q$1http4***.academia.edu)D6$+)DOnclimaterent Q m# piece in iclas "oo $$ %or more on this point@ see 7e#es@ O. =$+1,> '8ife /e#ond Emissions Trading(@ http4corporateeurope.orgclimate!and!energ#$+1,+1life!"e#ond!emissions!trading
The $++) economic crisis in industriali&ed countries@ and the continued fallout from that@ sheds light
on the possi"ilities for some ind of 'green ne* deal( and the limits that could face. The financial
sector "ailouts amounted to a huge sociali&ation of pri-ate sector loses *hich@ in man#
industriali&ed countries@ has sharpl# increased the de"t "urden of the state. ei&ing that opportunit#@
neoli"eral go-ernments and institutions ha-e declared *ar on precisel# the ind of state in-estmentsand rene*a"les su"sidies that *e Gust o"ser-ed as leading dri-ers of a lo*!car"on transition *ithin
the maret s#stem. Without di-ing too deep into the uestion@ there is good reason to thin that
austerit# is not a temporar# response "ut part of a long!term political proGect aimed at glo"al
re"alancing. It ser-es as an opportunit# to further dri-e do*n *ages and mae la"or conditions
more 'fle2i"le( =maing it easier to fire people> in industriali&ed countries@ 'until the# meet those of
the middle class in China and India on the *a# up.($5
Toda#s econom# as a *hole has "ecome e-er more 'financiali&ed@( a catch!all term for a multitude
of sins.$6 O-er the past 3+ #ears or so@ man# ad-anced economies ha-e seen profit rates accelerate*hile ph#sical in-estment has slo*ed.$D Neclining rates of profit through trade and commodit#
production mean that 'profits accrue primaril# through financial channels@($) *hile some firms ha-e
e-en a"andoned the 'real( econom# in search of financial sector profits .$H peculating to
accumulate@ *hile pushing do*n *ages@ is at the center of ho* these financiali&ed firms do
"usiness contri"uting to a s#stem in *hich ordinar# people "ecome e-er more financiall#
-ulnera"le.3+ t the same time@ en-ironmental pro"lems ha-e "een recast in terms of financial
solutions@ through the creation of 'natural( commodities and attempts to place -alue on 'ecos#stem
ser-ices.(31
The future prospects for further 'financiali&ation( are decidedl# mi2ed@ ho*e-er. The "aning
sector used the $++) crisis to consolidate@ strengthening the position of the remaining 'too "ig to
fail( "ans.3$ The shado* "aning s#stem a <R13D trillion *e" of interconnected "ets and trades
"et*een pension funds@ insurers and hedge funds@ has also gro*n considera"l# since the $++) crash
that it *as largel# responsi"le for causing.33 /ut the crosso-er *ith the 'real( econom# ma# "e
starting to un*ind. Commodities prices ha-e taned =led "# falls in the oil price>@ and specialist
trading firms are in trou"le.3, ttempts at trading en-ironmental commodities are also struggling.
$5 :ason@ . =$+15> Post$apitalism: + (uide to ur 'uture@ enguin p.5
$6 tochammer@ $+1+@ %inanciali&ation and the Alo"al Econom# )mass oring paper, p./ . 'The term has "een usedto encompass phenomena as di-erse as shareholder -alue orientation@ increasing household de"t@ changes in attitudes ofindi-iduals@ increasing incomes from financial acti-ities@ increasing freuenc# of financial crises@ and increasinginternational capital mo"ilit#.($D s o"ser-ed "# e.g. Srippner@ =$++5> 'The %inanciali&ation of the merican Econom#(@ ocio!Economic 7e-ie* 3@
p 1D,Numenil@ A. and N. 8e-#. $++5. 'Costs and /enefits of eoli"eralism( in Epstein@ A. =ed.>@ 'inanciali0ation and
the orld Economy Ed*ard Elgar.$) Srippner =$++5>@ p.1D,$HEpstein@ =$++5>@ p.D3+http4"logs.lse.ac.upoliticsandpolic#financialisation!maes!income!distri"ution!more!uneual31Sill@ J. =$+1,> Economic 1aluation o! nature: the price to pay !or conser%ation2 7osa 8u2em"urg tiftung3$http4fortune.com$+13+H13"#!e-er#!measure!the!"ig!"ans!are!"igger33http4***.financialsta"ilit#"oard.org*p!contentuploadsglo"al!shado*!"aning!monitoring!report!$+15.pdf
Emissions trading marets ha-e undergone a three #ear depression that has seen man# firms
*ithdra* altogether @35 *hile attempts to create a forest car"on maret are stuc in perpetual 'pilot(
mode.
e-eral contingent factors are at pla# here including an o-erall lac of climate am"ition
suppressing demand for car"on allo*ances@ and audi attempts to flush out competition from'uncon-entional( sources of oil. /ut there are deeper reasons@ too@ *h# an accumulation regime
"ased on financiali&ation is unsta"le. %inancial "u""les are nothing ne*@ "ut tend to arise at the end
of a long '*a-e( of economic acti-it#. When -ia"le in-estment opportunities e2haust themsel-es@
financial capital forms a "u""le and some form of economic collapse ensues.36 That@ in turn@
pro-ides an opportunit# =although no guarantee> of rene*al.
0ie*ed in these terms@ the $++) crisis and its aftermath can "e seen as the end of a "roader c#cle of
economic acti-it# concretel#@ an IT "u""le that carried through into financial speculation.3D s
that s#stem un*inds@ a ne* *a-e of economic acti-it# *ill emerge to tae its place. Thede-elopment of a 'green econom#(@ "ased on a rene*ed energ# s#stem that mo-es a*a# from fossil
fuels@ could *ell "e *hat dri-es this ne2t set of economic changes. /ut *ith in-estments in gas as a
'"ridge( fuel@ nuclear po*er and other competing proposals@ there are no guarantees e-en that
rene*a"le energ# *ill "e central to the ne2t phase of economic acti-it#. Efforts to em"race a 'ne*
econom#@( mean*hile@ can reinforce e2isting "usiness practices rather than encouraging change.
Indeed@ the rhetoric of a 'green econom#( is dominated "# efforts to mae ne* green commodities
*hile preser-ing the status uo in the distri"ution of resources. 3)
In seeing a Just Transition@ "# contrast@ *e are asing for a ne* econom# that shares the "enefits
more euall#@ rolling "ac the e-er!increasing ineualit# that is characteristic of toda#s s#stem.3H
To some e2tent@ the choice of cleaner technologies alread# opens the door for more 'green Go"s.(
E2tracti-e industries@ such as coal@ and the po*er suppl# chain that emerges around them tend to
ha-e a far lo*er la"or intensit# than an alternati-e "ased on rene*a"le energ# and prioriti&ing
energ# efficienc#.,+ In itself@ though@ that is not enough for a Just Transition@ *hich emphasi&es
reducing ineualit#@ *hile -aluing the agenc# and impro-ing the rights of *orers.
What this transition loos lie in practice *ill@ of course@ -ar# maredl# across different economic
sectors. s a general rule@ strong la"or organi&ing in defense of *ages maes the profita"ilit# of
companies more dependent on inno-ation@ and can force the hand of states into re!routing their
regulator# s#stems to pro-ide greater incenti-es for the pioneers of ne* inno-ations and leaders in
emerging marets lie rene*a"le energ#.,1 uch shifts are often accompanied "# changes in pri-ate
35http4***.fern.org"ootrading!car"oncar"on!des!closures36 ere& $+13. %inancial "u""les@ crises and the role of go-ernment in unleashing golden ages In #a@ . and/urghof@ ;.. =eds.> =$+13> Inno%ation and 'inance. 8ondon4 7outledge@ Ch.$@ pp. 11!$5.3D ere& $+13@ p.H3)<nmMssig@ /@ 8. %uhr and T %atheuer@ 'H theses on criti&ing the green econom#(@http4***."oell.deen$+151116H!thesen!&ur!riti!der!grunen!oonomie3Hiett#@ T. =$+1,> $apital in the T&enty-'irst $entury
sector o*nership@ fa-oring greater di-ersit# and smaller!scale o*nership. This can result in greater
accounta"ilit# to local needs@ although this t#pe of locali&ation does not necessaril# fa-or impro-ed
conditions for *orers.
In the case of rene*a"le energ#@ the policies that ha-e pro-en most successful in dri-ing the
increased tae up of rene*a"les ha-e offered price and purchase guarantees in the form of feed!intariffs@ or prioriti&ed pu"lic in-estment in inno-ation. %or e2ample@ Aerman# has seen a remara"le
e2pansion of rene*a"le energ# as part of its Energie&ende =energ# transition> *here rene*a"les
no* account for o-er ,+ percent of installed capacit# for electricit# generation and o-er a uarter of
all electricit# suppl#.,$ O-er half of this rene*a"le energ# generating capacit# is o*ned "# pri-ate
indi-iduals4 ,+ percent in the form of citi&ens cooperati-es@ and a further 1+ percent o*ned "#
farmers.,3 Communit# o*nership positi-el# correlates *ith *ider support for a rene*a"les
transition@ although it is *orth noting that an important limitation in the Aerman case is the pass!
through of the additional costs of feed!in tariffs onto ordinar# households *hile manufacturers *ere
e2empted from pa#ing their share.,,
In the case of agriculture@ mean*hile@ there is a strong compati"ilit# "et*een the promotion of
small!scale farming and di-ersified o*nership. In addition@ this model pro-ides more Go"s.,5
po*erful 'food so-ereignt#( mo-ement e2ists to promote Gust such a people!centered transition. t
its heart lies a critiue of the role of transnational corporations that might "e generali&ed across
other economic sectors too.,6
" T%e trouble wit% transnational corporations
When it comes to a-oiding dangerous climate change@ transnational corporations =TCs> are part of the pro"lem@ not part of the solution. Just Transition is one in *hich TCs pla# a less central role
in our econom#. s *ith all pri-ate companies@ TCs are primaril# dri-en "# the pursuit of profit.
When the# occur@ social Gustice and climate "enefits are a "#product rather than a goal of the pri-ate
sector@ underscoring the importance of "olstering the pu"lic sector and the 'solidarit# econom#(
=non!profit@ communit# enterprises and cooperati-es>. That said@ there are clearl# some instances
*here a profit moti-e lines up *ith the pu"lic good. %or instance@ maing factories more energ#
efficient sa-es mone#@ so is good "usiness and good for the climate. There are e-en *a#s in *hich
pri-atel# produced goods help contri"ute to a fairer societ#@ as *hen mo"ile phone access helps
farmers in India or su"!aharan frica to a-oid e2ploitati-e middlemen.,D
,$***.agora!energie*ende.orgtopicsthe!energie*endedetail!-ie*articletrend*ende!in!der!energie*ende Qhttp4***.ft.comintlcmss+ccH+,55a!H65,!11e,!a,+"!++1,,fea"dc+.htmla2&&3sNHO$nG,3/uchan@ N. =$+1$> 'The Energie*ende Aerman#s gam"le(@ 3!ord Institute !or Energy Studies@ p.1+@http4***.o2fordenerg#.org*pcms*p!contentuploads$+1$+D!$6.pdf ,,:Mller@ T. =$+13> ersonal Inter-ie*@ 1$ Jul#,5http4***.uno.orgsitesdefaultfilesresources7eali&ingF$+theF$+rightF$+toF$+foodF$+inF$+anF$+eraF$+ofF$+climateF$+change.pdf ,6http4***.glo"alGustice.org.usitesdefaultfilesfilesresourcesagroecolog#!report!from!the!roots!up!*e"!-ersion.pdf
,D ee@ for e2ample@ http4core.ac.udo*nloadpdf66)H613.pdf ! although there remains a li-e de"ate as to *hethermo"ile phones transform or reinforce information flo*s and as#mmetries.
TCs pose some particular pro"lems@ ho*e-er. The# a-oid responsi"ilit# =and gain competiti-e
ad-antage> "# means of ta2 e-asion and a-oidance@ *ith trillions lost to the pu"lic purse through
transfer pricing to minimi&e ta2es paid@ taing *ealth offshore@ and other techniues. ,) The# then
lo""# hea-il# to protect that s#stem often through s#mpathetic go-ernments. %or e2ample@ during
the Jul# $+15 <nited ations summit on %inancing for Ne-elopment in ddis "a"a the
ADDXChina =a group of 13, de-eloping countries> attempted to set up an international "od# tocoordinate on ta2ation and clamp do*n on ta2 a-oidance "# TCs. These efforts *ere scuppered "#
the <@ <S and other mem"ers of the OECN =a grouping of de-eloped countries>. ,H
/# s#stematicall# a-oiding their ta2 o"ligations@ TCs undermine the a"ilit# of states to offer
pu"lic ser-ices@ maintain a social safet# net for the unemplo#ed and underemplo#ed@ and promote
pu"lic in-estment. These are precisel# the ser-ices *orers and their families *ill need to mae a
transition more fair.
TCs also tend to "e part of a "roader trend to*ards financiali&ation@ *hich@ as *e ha-e seen@e2acer"ates ineualit#. et*or anal#sis has sho*n that the leading TCs form part of a close
net*or of mutuall# reinforcing interest@5+ descri"ed "# the sociologist 8eslie lair as a
'transnational capitalist class.(51
There are@ of course@ differences "et*een TCs. ome@ such as fossil fuel companies@ ha-e
'*recing the planet( at the core of their "usiness model.5$ ttempts to change those corporations
=such as /Bs flirtation *ith '"e#ond petroleum(> ha-e fallen flat@ to the e2tent that e-en some
staunch ad-ocates of engaging *ith oil companies to impro-e them ha-e gi-en up on that strateg#.53
t the other end of the spectrum@ some of the large technolog# companies =eg. pple@ Aoogle@
:icrosoft>@ *hose "usiness models are relati-el# insulated from climate change impacts@ ha-e taen
green initiati-es aimed at enhancing their "randing@ efficienc# or resilience such as mo-ing
to*ards rene*a"les!po*ered data centers>. /ut *hen these companies ha-e channeled in-estments
into green technolog# often@ -ia allied@ non!profit foundations the results ha-e aped the techno!
optimism of their "acers@ posing a ris to poorer peoples li-elihoods. Their in-estment strategies
tend to "e unaccounta"le and ungrounded@ *hile ta2 a-oidance remains an important moti-e for the
social acti-ities of man# of these initiati-es.5,
The pro"lem is not indi-idual TCs@ or particular sectors@ as much as the concentration of
unaccounta"le po*er that an econom# "uilt around TCs "rings *ith it. That ind of concentration
,) Ta2 Justice et*or@ 'The cost of offshore re-isited(@ http4***.ta2Gustice.nettopicscorporate!ta2ta2ing!corporations,Hhttp4***.theguardian.com"usiness$+15aug+6Goseph!stiglit&!america!*rong!side!of!histor#Qhttp4***.ta2Gustice.net$+15+D16glo"al!ta2!"od#!after!3!da#s!of!"ull#ing!de-eloping!countries!*ere!run!o-er
5+0itali@ .@ Alattfelder@ J./. and /attiston@ . =$+11>. The net*or of glo"al corporate control. 8o OE@ 6=1+>
51lair@ 8. =$++1>@ The transnational capitalist class Wile#!/lac*ell5$Slein . This $hanges E%erything.
is@ ultimatel#@ e-en damaging to creati-it#. The emerging corporate eco!s#stem is "uilt around
sectoral monopolies or oligopolies.55 handful of TCs might@ to some e2tent@ "rea this pattern.
Electric car producer Tesla@ or *ind tur"ine maer 0estas@ are pursuing "usiness models that
directl# "enefit from a transition a*a# from fossil fuels and@ in the case of Tesla in particular@ are
in-ol-ed in rethining the sector the# are engaged in from the ground up =free from the inertia that
"esets most TCs>. et e-en here@ *e should "e cautious. When 0estas closed its <S factor#@ fore2ample@ it *as uic to a"andon *orers rather than see alternati-e in-estment strategies or act to
protect the longer!term future of lo*!car"on manufacturing.56
'NonBt "e e-il( is a difficult motto to a"ide "# under shareholder pressure@ and the "uilding of large
*ind farms or the e2traction of lithium =to pro-ide storage capacit# for electric cars> face the same
on!the!ground challenges as other 'de-elopment( proGects and e2tracti-e industries.
Just Transition *ill reuire an econom# *here TCs pla# a less central role. ome corporations
*ill collapse. Others *ill "e pushed@ "# reformed regulations@ to "eha-e lie different entities.
ome potential fi2es can result from reforms in ho* marets function. Aro*ing the share of
rene*a"le energ# upends the current *holesale maret@ maing current corporate models un-ia"le.
Ne!financiali&ing the econom# reuires the "reaup of some of the largest "ans =eg. reinstating
Alass!teagall in the <>.
Other changes *ill happen at the le-el of glo"al regulations@ and there are signs of some change
afoot. %or e2ample@ the %inancial ta"ilit# /oard to the A$+ has started to discuss ho* to manage
climate riss and damp do*n holdings of 'stranded assets( =un"urna"le reser-es of fossil fuels>. 5D It
is liel# that s#stemic changes of this sort *ill not "e *on through rethining "# corporations
themsel-es@ as much as "# social mo-ement pressure.5)
Tacling international corporate ta2 a-oidance and e-asion is -ital@ and *ell!argued mechanisms
ha-e alread# "een ela"orated in some official spaces. The Independent Commission for the 7eform
of International Corporate Ta2ation proposed one such fi2 in ddis "a"a@ although it *as
"loced.5H There e2ist man# others.6+ The e# here is to "rea the po*er of TCs to rig rules in
order to a-oid pa#ing their fair share into pu"lic coffers. Se# to a transition is recuperating ta2
re-enue thats needed to fund pu"lic initiati-es that can not "e achie-ed through the pursuit of
profit.
55 :ason@ . =$+15>@ p. 11)56http4***.ft.comintlcmss+5)"dDH+a!D615!11de!He5H!++1,,fea"dc+.htmla2&&3sNHO$nG5Dhttp4***."anofengland.co.upu"licationsagesspeeches$+15),,.asp25) 'Ending the Oil ge(
%urther opportunities for shifting from toda#s economic model lie in some more fundamental
challenges faced "# the capitalist s#stem in adapting to the changes ushered in "# information
technolog#@ *hich *rea ha-oc *ith the la*s of suppl# and demand underl#ing marets.61
:arets *or on the assumption that goods are in limited suppl# the more scarce something is@the greater the price it can command. /ut information products donBt pla# "# these rules. %or
e2ample@ music or mo-ies shared digitall# can "e reproduced limitlessl# *ith almost no additional
cost =du""ed '&ero cost production(>. ure@ companies continue to profit in these sectors "ut the
price of an iTunes trac is onl# maintained "# ppleBs uasi!monopol# and cop#right policing.
Information products are a"undant@ not scarce@ and that "reas the rules according to *hich marets
allocate goods.
The significance of this "rea e2tends deep into the 'real( econom# "ecause information
technolog# is rapidl# changing ho* goods are manufactured@ dra*ing e-er more sectors into thesame d#namic of plunging production costs.6$ s manufacturing "ecomes more automated and the
ph#sical cost of producing each item falls@ the -alue of goods increasingl# resides in their
information content industrial soft*are and the design of machines or@ as in the case of ie
sneaers@ the mareting and "rand management that surrounds them. ThatBs an unsustaina"le "asis
for maing profits. nd@ "# "uilding *alls to stop information flo*s@ itBs also an inefficient means to
increase o-erall economic producti-it#.
;ere@ once again@ the e2ample of energ# marets is instructi-e. In Aerman#@ a *orld leader in
rene*a"le energ#@ the rise of *ind and solar po*er *hich ha-e close to &ero production costsonce up and running has made it -er# difficult to profit from the sale of electricit# in *holesale
marets.63 The "ig utilities@ *edded to an outdated model of centrali&ed fossil!fuel po*er
generation@ ha-e suffered huge losses and collapsing share prices as a result. In response@ the#-e
has argued> as *ell as coordinating and planning infrastructure. 65
This is not socialism@ so much as using the le-ers of the state to help transition to a ne* econom#4
using regulation to promote a net*ored econom# "uilt around 'the cooperati-es@ the credit unions@
the peer!net*ors@ the unmanaged enterprises and the parallel@ su"cultural economies( that alread#
e2ist.66
These e2periments are currentl# small!scale@ "ut the "eaut# of net*ors is that dispersedelements can gro* rapidl# in a modular *a#@ *ithout central planning.
III" *onstructing a +ust Transition
In the preceding section@ *e cut through se-eral la#ers of insta"ilit# in the current economic s#stem.
There is no guarantee@ of course@ that a transition a*a# from this s#stem can reduce ineualit#@
impro-e conditions for *orers or protect a li-a"le planet let alone achie-e all three. In this
section *e loo at some of the e# elements that might "e needed to "ring a"out Gust such a
progressi-e change.
" 4gents of c%ange
'To change e-er#thing it taes e-er#one@( according to a phrase populari&ed "# aomi Slein and
no* taen up more *idel# *ithin the climate mo-ement. /ut ho* does such a general aspiration
map onto concrete strategies for "ringing a"out change@ and *ho *ould lead such a transformation?
ccording to Slein@ climate change itself presents us *ith an important opportunit#. 'There is a rich
populist histor# of *inning "ig -ictories for social and economic Gustice in the midst of large!scale
crises@( recalls aomi Slein. In this lineage@ climate change represents a historic opportunit# for 'a
eopleBs hoc(@ an opening for radical policies that not Gust address greenhouse gas emissions "ut'dramaticall# impro-e li-es@ close the gap "et*een rich and poor@ create huge num"ers of good
Go"s@ and rein-igorate democrac# from the ground up.(6D
lmost "# definition@ the call for a populist response to climate change cuts through the idea@ long
pre-alent on the political left@ that *orersB struggles are the core response to the inGustices of
capitalism =*hich is not to sa#@ of course@ that the# are unimportant>.
In part@ this has to do *ith changes in the "alance of po*er "et*een la"or and capital@ *hich ha-e
made it increasingl# difficult to en-isage the transformation of the econom# chiefl# throughtransforming the *orplace. The ad-ance of automation and the glo"ali&ation of man# product
marets =through a mi2 of technolog# and trade li"eralisation>@ a relati-e glo"al la"or surplus
*ith the "ig car companies to oppose strong fuel econom# standards offers one such e2ample. The
<nited teel*orersB push for the < to tae on Chinese *ind po*er su"sidies is another.6H
Within unions themsel-es@ a Just Transition framing can offer a means to counter these protectionist
or anti!en-ironmental tendencies and "uild ne* alliances. It also pro-ides a narrati-e frame that
e2tends "e#ond 'green Go"s( to a *ider -ision of ho* to respond to the economic and climate
crises.
/ut as the road to economic change through la"or organi&ing has "een partiall# "loced@ other paths
to change ha-e opened up "e#ond the *orplace@ accompanied "# ne* forms of political agenc#.
The mo-ements that occupied suares in pain and Eg#pt@ or defied Islamism in Istan"uls Ae&i
ar@ are t#pical of toda#Bs net*ored social mo-ements4 sporadic@ -oluntar#@ time limited@ radicall#at odds *ith go-ernment and other sources of institutional po*er@ and een to forge sources of
counter!po*er out of a popular sense of disillusionment.D+
The emergence of Occup# and similar mo-ements glo"all# poses a challenge for la"or unions@
*hose in-ol-ement in such actions is generall# shunned =e2cept at local le-el or through the
presence of 'grassroots( unions>. The# are rarel# focused on climate change@ or "roader
en-ironmental crises such as "iodi-ersit# loss. /ut these mo"ili&ations are a fertile terrain for
integrating responses to the climate crisis as part of a "roader -ision that critiues transnational
corporations and 'reGects the role of the maret as the underl#ing principle in our societ#(. D1 Their
emergence is consistent@ too@ *ith a "roader tradition of prefigurati-e politics that formed a e# part
of the 'alterglo"ali&ation( mo-ement. The# see to "uild self!reliance and practice ne* forms of
democratic decision!maing@ rather than directl# seeing po*er .D$
second tendenc# that could ad-ance the Just Transition framing is the emergence of 'a ro-ing
transnational conflict &one that is cropping up *ith increasing freuenc# and intensit# *here-er
e2tracti-e proGects are attempting to dig and drill( ! du""ed '/locadia.( D3 %enceline communities !
people li-ing at sites of current or potential fossil fuel e2traction and hea-# industr# ! ha-e long
"een e# actors in the fight for a Just Transition.
/locadia is another incarnation of the t#pe of fenceline struggles that called the Just Transition
6HCostello@ T. 8a"or and Climate Change@ p.3@ http4***.la"or,sustaina"ilit#.org*p!contentuploads$+1++1la"orandclimate.pdf Q http4***.reuters.comarticle$+1+1$$$us!usa!china!*indpo*er!id<T7E6/83E<$+1+1$$$D+ :ason@ . =$+1$> 'Wh# its still icing off e-er#*here(@http4***.ne*leftproGect.orginde2.phpsitearticlecomments*h#itsstillicingoffe-er#*hereD1mart COs =$+15>@ 7eimagining acti-ism@ p.$6!31@ smart!csos.orgimagesNocumentsreimaginingacti-ismguide.pdf D$ :aecel"ergh@ :. =$+1$> 'Noing is /elie-ing4 refiguration as trategic ractice in the lterglo"ali&ation:o-ement(@ http4***.interfaceGournal.net*ordpress*p!contentuploads$+1$+5Interface!,!1!:aecel"ergh.pdf
D3http4***.#esmaga&ine.orgplanet*elcome!to!"locadia!en"ridge!transcanada!tar!sands Q see also Slein@ .=$+1,>@ chapter H.
*hat seems -ia"le>@ and e-en consumer choices ="ringing to the fore ne* possi"ilities>.
ccording to ere&@ the current techno!economic paradigm *as ushered in "# the de-elopment of
the micro!processor@ *hich not onl# created a popular maret for computers@ "ut re-olutioni&ed
production processes and trade flo*s@ and fostered *hole ne* sectors of economic acti-it# "ased on
attempts to capture no*ledge as capital. Companies could glo"ali&e production "ased on far morefle2i"le@ real!time s#stems of tracing suppl# and demand maing outsourcing easier and
*eaening la"orBs "argaining po*er. The ne* paradigm had implications@ too@ for ho* companies
organi&ed. s computers and then the internet too root@ it "ecame possi"le to de-elop more
comple2@ decentrali&ed organi&ational net*ors.D) The same might "e said for ho* social
mo-ements organi&e *ith -ast decentrali&ed information flo*s creating the conditions to "#pass
institutional media@ and to organi&e *ithout necessaril# rel#ing on union "ureaucracies or political
part# structures.
Once em"edded@ a techno!economic paradigm "ecomes hard to shift "ecause it pro-ides theBcommon senseB for not onl# ho* *e see production@ and trade@ "ut also the "asis for financiersB
assessment of in-estment decisions. uch s#stems e-ol-e o-er long '*a-es(@ an initial surge of
de-elopment in one sphere gi-ing *a# to a more gradual em"edding of the ne* paradigm across the
capital forms a "u""le and some form of economic collapse ensues.DH
ccording to these long!*a-e theories@ a ne* *a-e of technological change is alread# considera"l#
o-erdue. /ut that has not happened for at least t*o reasons. n o-erall decline in pu"lic in-estment
=thans to neoli"eralism> is one. Corporate profiteering from the glo"al a-aila"ilit# of cheap la"or@
acting as a disincenti-e to inno-ation@ is another .)+
The coming *a-e could tae -arious forms@ "ut the de-elopment of a 'green econom#( through
fundamental ad-ances to*ards cleaner energ# and transport s#stems is among them. )1 et@ as *e
sa* a"o-e@ the people *ho run electricit# grids and plan ne* po*er stations didnBt get the memo.(
In a *orld of increasingl# decentrali&ed production net*ors@ most large electricit# companies are
still focused on highl# centrali&ed infrastructure@ characteri&ed "# "ig fossil fuel po*er generation.
tuc in the old paradigm of mass production@ e-en their approach to 'clean( energ# is to thin "ig
and static4 nuclear po*er plants@ large h#dro and =*hen rene*a"les are considered> -ast off!shore
*ind farms or huge solar arra#s in deserts. This inertia is "aced "# significant lo""#ing to maintain
the status uo.)$
D) ere&@ C. =$++$>@ p.1)DH ere&@ C. =$+13> '%inancial "u""les@ crises and the role of go-ernment in unleashing golden ages In #a@ . and/urghof@ ;.. =eds.> =$+13> Inno%ation and 'inance. 8ondon4 7outledge@ Ch.$@ pp. 11!$5 Q ere&Bs *or o*es somede"t to o-iet economist iolai Sondratie-Bs 'long *a-e( theor# of economic c#clesQ as *ell as chumpeterBs *or on'"usiness c#cles()+:ason@ . =$+15>@ p.D$)1ere&@ C. =$+1,>
)$This argument is further ela"orated in 7e#es@ O. =$+15> 'Climate Change Inc.( in /u2ton@ . and /. ;a#es =$+15>@ pp.63!),
/reathrough technologies can increase demand on ne* sites of resource e2traction@ rather than
mo-ing "e#ond 'e2tracti-ism.( rene*a"les!"ased energ# s#stem is liel# to reuire significant
storage capacit#@ for e2ample. The technologies that are emerging reuire a significant uptae in
lithium e2traction. That could dri-e ne* land gra"s in /oli-ia or fghanistan@ *here such resources
are plentiful.)3
et there are opportunities@ too@ opened up "# shifts in technolog#. The d#namics unleashed "# ne*
technologies@ particularl# in *holesale electricit# marets@ could "rea the stranglehold of a handful
of large corporations on this sector.
ne* paradigm *ill not "e determined "# technolog# itself@ or solel# "# entrepreneurs and =state!
funded> inno-ators. To ensure that a ne* energ# model emerges reuires@ among other things@ the
ind of pu"lic research and in-estment that has alread# dri-en the emergence of ne* technologies
that could contri"ute to a transition. It also reuires ne* forms of o*nership and organi&ation to
dri-e it for*ard.
" 5ringing t%e state back in
It is "e#ond the scope of this paper to Goin the dots that *ould gi-e a full picture of the econom#
that a Just Transition *ould "ring a"out. /ut it is ne-ertheless possi"le to identif# a fe* e#
elements of *hat might come ne2t.
One aspect is to recogni&e@ and reinforce@ the role that states could pla# in "ringing a"out a Just
Transition a*a# from an econom# "uilt around the e2traction and "urning of fossil fuels.
In the terrain of international climate politics@ nation states are often encountered as parties to
international treat# negotiations lie CO$1. /ut their greatest influence@ for good or ill@ lies
else*here.
tates currentl# su"sidi&e fossil fuel companies to the tune of <R5.3 trillion annuall#. Niscussions
to phase out these su"sidies are ad-ancing@ in a reflection of the shifting "alance of international
go-ernance@ -ia the A$+ rather than the CO. ;oe-er@ the statements of intent at these -enues are
not #et matched "# actions on the ground. If states *ere to phase out these pa#ments =starting *ith
producer su"sidies in industrialised countries> it *ould pro-ide a "oost for the competiti-eness of
rene*a"le energ#.),
tate!dri-en in-estment and changes in regulation ha-e a e# role to pla#. Nirectl# regulating
greenhouse gas emissions from the po*er sector and industr#@ *hether through emissions limits or
performance standards@ can pro-ide significant incenti-es for inno-ation. With sufficient stringenc#@
the# "loc '"usiness!as!usual( approaches@ and can result in closures of old facilities@ spurring the
deplo#ment of ne* technologies.)5
)3e*ell@ . and N. :ul-ane# =$+13> 'The olitical Econom# of the Just Transition( The (eographical ournal @ p.5),http4***.imf.orge2ternalpu"scatlongres.asp2?sP,$H,+.+
)5Tornat&#@ 8. and :. %leischer@ The rocesses of Technological Inno-ationQ Nriesen@ N. Noes Emissions TradingEncourage Inno-ation@ p.$D
tate in-estment@ mean*hile@ might tae the form of "uilding ne* infrastructure =*hich reuires
strong safeguards against harming communities>@ and funding pu"lic interest research and
de-elopment. u"lic in-estment can help "ring a"out significant technological "reathroughs.
Indeed@ a loo at man# successful consumer products =lie those underl#ing pples iad> sho*s
that the# are "ased on technologies that *ere de-eloped *ith pu"lic support. )6 It should "e noted@
though@ that state in-estment stimulating ne* climate technologies is no guarantee that these *ill "efairl# distri"uted@ that their impacts *ill reduce ineualities@ or that the# *ill "e free from non!
climate en-ironmental conseuences.
/ut to engage state in-estment reuires challenging the ideological dominance of austerit# and
'"alanced "udgets(@ *hich encourage infrastructure in-estment to "e pushed off the pu"lic "oos
and long into the future "# means of pu"lic!pri-ate partnerships. These schemes routinel# deli-er
poor -alue for ta2pa#ers *hile@ o-er the long term@ the# compromise the a"ilit# of states to in-est in
proGects that could help them adapt to the effects of climate change "e those flood defences@
coastal protection or impro-ed health s#stems.
/e#ond this@ states could pla# a stronger role in shaping and creating marets. ri-ate companies
seeing returns on in-estment are inherentl# conser-ati-e@ *hereas the state as an economic agent
can in-est resources in more radical *a#s and can create ne* marets. In the case of electric cars@ to
tae Gust one e2ample@ the relati-el# unforgi-ing geograph# of or*a# has not "een an impediment
to that countr# ha-ing the *orldBs highest tae up of electric cars =in proportion to the o-erall
pri-ate -ehicle maret>. That *as the result of the state "uilding a net*or of charging points and
putting in place a series of incenti-es compared to petrol and diesel cars@ including access to "us
lanes@ free paring@ e2emptions from road tolls and ferr# charges@ and *ai-ing -alue!added ta2 onne* electric -ehicles.)D
7eclaiming the pu"lic sphere is also -ital in the case of the energ# sector@ and is alread# happening
in *ater ser-ices *orld*ide and@ to a lesser e2tent@ in the form of municipal energ# grids =in
Aerman# in particular>. Increasing pu"lic o*nership@ especiall# *hen that taes the form of re!
municipali&ation@ can help loosen the grip of the large corporate utilities that are dela#ing the
transformation of the energ# s#stem.)) That points the *a# to a second area *here the
transformation of the state is closel# lined to a more am"itious tacling of climate change and a
more Gust adaptation agenda. s *e ha-e seen@ corporate lo""#ists can set agendas and influence
rule!maing on the en-ironment@ trade and "roader economic polic#. Tacling that means
democrati&ing the state =and regional "locs@ nota"l# the E<>@ through ne* rules to enhance
transparenc# and accounta"ilit#@ and to rein in trade and in-estment treaties that "ias la*s in fa-our
of corporate polluters rather than citi&ens.)H 0arious campaigns and proposals@ including those
)6 :a&&ucato =$+13>@ pp.16@ 1HQ )1!1+1)D https4***.toi.nogetfile.php?mmfileidP,11)DQ https4pics.u-ic.casitesdefaultfilesuploadspu"licationsor*a#F$+E0F$+/riefingF$+oteF$+Octo"erF$+$+15.pdf )) Whitfield@ N. =$+1+> (lo#al +uction o! Pu#lic +ssets: Pu#lic sector alternati%es to the in!rastructure maret and
pu#lic pri%ate partnerships. ottingham4 poesman.
)Hee@ for e2ample4 lter!E< teering Committee. =$+1+>. *a# for*ard@ in ;. /urle#@ W. Ninan@ S. ;aar@ O.;oedeman and E. Wesselius@ eds. 4ursting the 4russels 4u##le. 4russels: +lter-E) @ pp. 1HDH.
promoted "# the Alo"al Campaign against Corporate Impunit#@ also e2ist that are pushing for legal
changes to hold transnational corporations and senior corporate leaders accounta"le for
en-ironmental and human!rights a"uses committed under their *atch.H+
%inall#@ states are not going to *ither a*a# an# time soon@ "ut their institutions could "e used to
pro!acti-el# support the transition to a ne* econom#@ encouraging =through su"sidies andregulations> the emergence of cooperati-es@ credit unions@ peer!net*ors@ etc. Ai-en the space@
net*ors such as these could gro* rapidl# and organicall#.
I6" Ne7t Steps for a +ust Transition8 .ive Takeaways
" 4 +ust Transition is about values and frames
Taling a"out a Just Transition is a *a# to focus en-ironmental campaigning on the %alues and
!rames that are compati"le *ith creating a more sustaina"le future econom#. It encourages us to
e2amine closel# ho* *e produce and use no*ledge a"out climate change@ and *hat principles *e
use in deciding ho* *e act in response.H1 Climate and en-ironment AOs ha-e often sought to
promote responses that stress indi-idual responsi"ilit# ='turn off #our lights(>@ partnership *ith
corporations =cast as 'climate leaders(> in de-eloping free maret fi2es lie car"on trading@ and
pressure on intergo-ernmental institutions =the CO as a 'last chance to sa-e the *orld(>.
Ao-ernments and corporations@ in turn@ stress technological solutions@ lie Car"on Capture and
torage@ that man# *oring in the energ# sector pri-atel# admit are economicall# and practicall#un-ia"le. Or the# put for*ard non!committal am"itious sounding long!term goals ='a
decar"onisation of the glo"al econom# o-er the course of this centur#(>@H$ *hile maing in-estment
and polic# decisions in the here and no* that mo-e in the opposite direction. These tendencies all
reinforce a set of cogniti-e frames that can inhi"it our a"ilit# to see the solutions to addressing
climate change.
Just Transition frame@ "# contrast@ emphasi&es collecti-e o-er indi-idual action and@ more
particularl#@ promotes 'participator# democrac#( the idea that *e ha-e the a"ilit# to decide on our
o*n future rather than lea-ing it to go-ernment elites or e2perts.
H3
The economic -ision of a JustTransition mo-es "e#ond the 'free maret( to stress@ firstl#@ that marets are not free in the sense
also "e determined democraticall#. Thirdl#@ and argua"l# most importantl#@ the coming econom#
*ill not "e "ased on scarcit#@ as in a maret s#stem@ "ut *ill ha-e sharing as a central aspect. This
does not mean that marets *ill collapse tomorro*@ or that *e should e-en aim for that. The point@
rather@ is to encourage =and self!organi&e> the emergence of colla"orati-e production in the spaces
left "# the maret s#stem and e2pand from there. /ut it also poses a significant challenge4 ho* can
a sharing econom# "e made compati"le *ith a defense of *orers rights@ rather than e2ploiting'free( or underpriced la"or and circum-enting regulations as %ace"oo@ car!sharing ser-ice <"er@ or
accommodation *e"site ir/n/ all do in different *a#s?
Just Transition narrati-e@ ultimatel#@ sees to reframe the 'climate change( pro"lem as a tas of
re"uilding the econom# from the ground up@ *ith more democratic accounta"ilit#. /ased on this
perspecti-e@ it ma# then "e used to de-elop polic# frame*ors at local@ state and international
le-els.
One potential o"Gection to seeing Just Transition as "eing a"out the frames and -alues that defineour approach to climate change is that this could end up o-er!riding the histor# of the term as a
means to define organi0ing that connects la"or and en-ironmental mo-ements. eeing a Just
Transition as promoting a common framing and -alues is not intended to o-erloo this histor#.
7ather@ it suggests that *e can "uild stronger alliances "# forging a common narrati-e on the -alues
that should "e em"edded in the ne2t economic s#stem. 0ie*ing Just Transition that *a# up also
allo*s for a loosening of the definition a*a# from Gust partnerships of la"or and en-ironment to
one that might "e em"raced "# grassroots racial Gustice@ housing and education acti-ists@ amongst
others.
2" 4n e$uity and rig%ts framework
Tacling ineualit# is fundamental to achie-ing a Just Transition. Our current economic s#stem
encourages e-er!greater ineualit#@ *ith *ealth gro*ing faster than incomes =as icett# and others
sho*>. That gi-es the *ealth# disproportionate control o-er the political process. The same is true
of climate change@ *here the *orst affected tend to "e the least *ell off. International climate
negotiations "ring out the *orst of this@ dri-ing for*ard agreements proposed "# the richest
countries =often lo""#ing on "ehalf of corporations>@ *hile the inter!go-ernmental framing often
e2cludes access for the poor and most marginali&ed groups *ithout countries =ignored or repressed
"# go-ernments>.
If a Just Transition is a"out gi-ing -oice to the -oiceless@ it must start "# turning the ta"les on an
economic s#stem that promotes ineualit# not simpl# redistri"uting e2isting *ealth@ "ut
reorgani&ing the s#stem through *hich *ealth is produced. Tacling the po*er of transnational
corporations =TCs> *ould "e a good place to focus. Ta2 e-asion and a-oidance "# TCs strip
o-er <R1++ "illion per #ear of re-enues from de-eloping countries alone@ undermining the
possi"ilit# of increased energ# access@ or the e2pansion of social safet#nets.H5 TCs are also at the
forefront of lo""#ing to *eaen international en-ironmental legislation and la"or standards.
H5 http4***.theguardian.comsustaina"le!"usiness$+1,no-+3de-eloping!nations!lose!1++"n!ta2!re-enue!g$+!reforms!a-oidanceQ see also http4***.icrict.org
8oosening their grip *ould pro-ide more space for pu"lic interest ad-ocac#.
" Prioriti/e renewable energy
There *ill@ "# necessit#@ "e numerous aspects of an# Just Transition in agriculture@ transport@ or at
the le-el of ho* *e produce and use consumer goods. /ut as a cross!cutting priorit#@ a Just
Transition should focus on the transformation of our energ# s#stem.
This shift starts *ith di-estment from fossil fuels. That frees up some capital to in-est in rene*a"les
and social enterprises@ "ut the core of the di-estment strateg# is that it targets fossil fuel companiesB
'social license to operate( =a "it lie to"acco companies>. That@ in turn@ creates the conditions for
"etter regulation that cut fossil fuel su"sidies and incenti-i&e rene*a"les deplo#ment.
Just Transition goes "e#ond simpl# replacing fossil fuels. shift to '1++F rene*a"les( *ill
change the nature of electricit# s#stems maing them increasingl# fle2i"le and decentrali&ed.H6
That shift has implications outside of the energ# sector@ too@ as part of a "roader shift to a ne*'techno!economic paradigm( that should see the re!locali&ation of the econom# around human!
scale enterprises rooted more closel# in the communities the# ser-e. HD
%or a transition to rene*a"le energ# to "ecome a Just Transition reuires more than simpl#
installing ne* *ind tur"ines or solar panels. It should@ at the same time@ *or to*ards ensuring
energ# access for the 1.$ "illion people in the *orld *ho still lac that@ and the man# more people
*ho still li-e in 'energ# po-ert#.(
3" 'eclaiming t%e state
ational go-ernments o*n the *orldBs largest fossil fuel producers =Coal India@ audi ramco>@ and
are some of the *orldBs largest in-estors in others. e# part of *hat a Just Transition needs to
achie-e is to force states to di-est from these assets and lea-e fossil fuels in the ground. What this
loos lie@ in practice@ *ill -ar# greatl# "et*een places in or*a# or California@ for e2ample@
pressure has "een put on state!run pension funds to di-est from fossil fuels and rein-est in
rene*a"les and efficienc# proGects@ *ith some success.H)
Else*here@ the push for a Just Transition could "e pursued "# the de!corporati&ation of state!o*ned
enterprises@ restructuring them so that the# are no longer held as Goint!stoc@ partiall# pri-atised
companies on stoc e2changes@ and gi-en instead a pu"lic!interest mandate that is reflected in their
in-estment priorities. In the case of pu"lic!energ# companies@ that means retooling them a*a# from
e2tracting fossil fuels@ or producing po*er from those fuels@ and to*ards rene*a"le energ#
infrastructure in the process@ "reaing the increased interdependenc# "et*een pu"lic and pri-ate
Ni-esting from fossil fuels and redirecting in-estment to*ards decentrali&ed@ rene*a"le energ# are
e# pillars of such a transition.
!" 4 new approac% to investment
rioriti&ing in-estment in rene*a"le energ# for a Just Transition opens a de"ate on ho& in-estment
happens. In-esting for the social good is incompati"le *ith the tendenc# to prioriti&e short!termgains@ recogni&ing that companies should operate for the "enefit not Gust of shareholders@ "ut for
*orers@ their communities and the en-ironment. a#ing a li-ing *age should "e prioriti&ed o-er
the goal of ma2imi&ing profits. Thats not Gust good for the indi-iduals in-ol-ed. It is the
cornerstone of a health# econom# *here in-estments "enefit communities rather than retreating
offshore to further concentrate *ealth in the hands of the super!rich.
In-estment in 'clean( technolog# is a start@ "ut is not enough if the *a# that the econom# *ors is
not itself concei-ed differentl#. It can tae -arious organi&ational forms@ such as prioriti&ing /!
corps ="enefit corporations>@ non!profits@ or cooperati-es. nd it can include -arious forms ofin-estment@ from smaller!scale cro*dsourcing to larger in-estors adopting a 'patient capital(
frame*or.HH The common thread@ ho*e-er@ is that a Just Transition *ould prioriti&e seeing
economies as ecos#stems@ *ith the elements "alanced to support strong@ 'local li-ing economies(
that connect the production and trade in goods *ith the communities that could "enefit from
them.1++
HH ee@ for e2ample@ http4acumen.orgideaspatient!capital1++http4***.ne*econom#*oringgroup.org-isionslocal!li-ing!economies
