Fair Green Transition Hero Image

Unpacking the Political Economy of

Fair, Green Transition

Focus Area

 

As countries move towards a green economy to avoid climate collapse and other environmental dead ends, it has become clear that the economic and social implications of a green transition – whether positive or negative - will be drastic: For example, when industries transform at the scale and speed required to stay within planetary boundaries, jobs will change or (dis)appear, new health challenges and opportunities will arise, and education systems will need to adapt.   

UNDP has been supporting countries’ socio-economic impact assessment of their green transition efforts. These show that negative green transition impacts are often distributed unevenly (e.g. affecting unskilled labour and women) and that decarbonizing strategies also come with new risks (e.g. increased demand for critical minerals or biofuels). They also illustrate that if conflicting economic, environmental, and social needs are not managed well, a green transition in any given country has the potential to jeopardize achievements on social justice and human rights and to question a society’s entire social contract 

Interestingly, however, while the socio-economic and environmental opportunities and challenges (the ‘what’) of a green transition are being investigated, there is much less knowledge and guidance on how to go about them (the ‘how’). In other words, the governance needed to turn a green into a fair transition (or to even establish what ‘fair’ or ‘just’ means to people) is much less discussed and understood 

The Centre therefore focuses on governance as a neglected aspect of fair green transitions. By doing so, it contributes all of UNDP’ Signature Solutions, from Energy to Governance. It also supports the Strategic Plan’s three directions of change: structural transformation, leaving no-one behind and building resilience.

Research

Working Paper ‘The Governance of Fair Green Transitions: Managing Complexity While Building Consensus’ 

 

This first Working Paper explores the role of government in and key governance dimensions of a fair green transition, drawing on the ECOSOC-endorsed Principles for Effective Governance for Sustainable Development. The Governance of Fair Green Transitions: Managing Complexity While Building Consensus (June 2023)

Country Case Studies on ‘Managing transformative energy transition policies: Governance needs, challenges, and opportunities’ 

 

The Centre, together with other key UNDP teams such as the Sustainable Energy Hub and the Climate Promise Team, are developing a set of case studies in order to 

  1. Explore what effects major energy transition commitments and policies can have on governance systems (challenges)

  2. Illustrate what is required of governance systems and institutional frameworks to develop and implement major energy transition commitments and policies (needs)

  3. Find ways to identify entry points to address governance weaknesses in the development and implementation of transformational energy transition commitments and policies (opportunities). 

The Center developed and tested the conceptual framework for the case studies and shared preliminary learning in a Discussion Paper at COP 28 in December 2023: Just Energy Transition – Governance needs and implications

Policy Engagement

Governance Nexus Webinar Series: The Governance of Fair Green Transitions

In June 2023, UNDP’s Global Policy Centre on Governance and its Human Development Report Office had the pleasure to co-host a hybrid event that took a governance perspective to explore what collective action may be needed to manage a green transition so that it generates fair outcomes. As part of the webinar, we launched a short think piece on 'The Governance of Fair Green Transitions: Managing Complexity While Building Consensus' and invited key speakers to share their insights on the topic: Dr. Brian Mantlana from the Presidential Climate Commission of South Africa, Beatriz Reyes, an environmental engineer and climate activist of the NGO Jóvenes y Cambio Climático in Panama, and Dr. Christina Voigt, professor at the University of Oslo and Co-Chair of the Paris Agreement Implementation and Compliance Committee (PAICC). We discussed how the ECOSOC effective governance principles can help identify governance challenges and opportunities and what else may be needed to strengthen the governance of fair green transitions.

Our Fair, Green Transition Team

Julia Kercher, Team Leader - Research and Innovation

julia.kercher@undp.org

Santiago Cunial, Research and Policy Specialist - Environment and Governance

santiago.cunial@undp.org