Q1 How can Just Green Transitions become a model of growth that tackles the challenge of climate, development and growth? How can it enable and underpin an understanding on a development paradigm which reduces the tradeoffs between development and climate agendas?

Scorching heat and wildfire across Europe, unprecedented floods in Asia, news of extreme weather dominated the international headlines in 2022, providing a sneak peek in the future if we fail to solve the climate crisis.  Under the Paris agreement, 194 countries came together to limit global temperature rise to 1.5 degrees Celsius or below which recognised the critical need for ‘just transition’ for communities as the world wakes up responding to climate change.

Getting to net zero will require mass scale transformation of industries and economies. The change will affect local population, consumers, labours and inevitably bring about job losses as economies will scale down carbon emitting industries. According to International Labour Organization (ILO), 18 million net jobs could be created globally while keeping the global temperature below 2 degrees Celsius, however, the transition away from fossil fuels could result in the loss of 6 million gross jobs by 2030 with high concentration in the energy sector.

Transitioning to net zero will also have an impact on trade and competitiveness particularly for countries that rely heavily on fossil fuel exports. Countries may face challenges in maintaining their competitiveness in the global market as they are slow to transition to a low carbon economy. It is important to have policies and measures in place to support the transition, and to avoid a race to the bottom in terms of environmental and social standards. What we need is a just transition – a shift accompanied by decent work, social inclusivity, and transparency so that emerging markets can reach net zero without sacrificing growth.

JGT model recognizes that traditional approaches to economic growth are not compatible with a sustainable future and instead, it calls for a fundamental transformation of the economy towards renewable energy, energy efficiency, and circular economy practices. JGT model aims to prioritize the needs of the most vulnerable members of society, including low-income communities, indigenous peoples, and workers in high-emissions industries ensuring that the benefits of transition to a green economy are equitably distributed, and that no one is left behind.

Just transition is not a simple concept as it encompasses status quo, managerial reform, structural reforms, and even transformative approaches. It can enable sustainable economic growth by promoting the use of low-carbon technologies, renewable energy sources, and circular economy practices in turn creating new opportunities for growth while reducing greenhouse gas emissions and other environmental impacts. Therefore, the model offers a holistic approach to addressing the interrelated challenges of climate change, economic development, and social equity.

Transitioning to a net-zero economy will require significant investments in new infrastructure and technologies. Thus, the real challenge of the transition will be in emerging and developing nations, where there financing needs for net-zero and climate action are the greatest while access to and cost of capital can be a bottleneck.

Q2 How can G20 foster shared understanding on the need for green transitions to be just, at both international and national levels? How can G20 strengthen the policy discourse on this matter within G20, in the international community (who will be the stakeholders for such a dialogue) and nationally?

In 2021, just green transition was a central theme of COP26, following which, Indonesia developed the Just Energy Transition Partnership and launched it during the G20 Summit in 2022. Given G20 India’s five pillars under the Green Development Pact (i.e., Lifestyle of Environment, Circular Economy, Climate Finance, Accelerating Progress on SDGs, and Energy Transitions and Energy Security), the ball is in India’s court to convey the climate perspective of the Global South.

As India has already announced a goal of creating 50% of renewable energy capacity by 2030 and as the leader of the International Solar Alliance, G20 India Presidency can foster international policy coordination and cooperation, influence domestic policy reforms, and promote knowledge sharing on just green transition. As a premier global forum which is well poised to contribute to the global development agenda and coordinate, catalyze country-led actions, the G20 is apt for instilling just green transition by taking the following actions:

• Outreach with international community to convene a high-level dialogue that brings together key stakeholders from governments, civil society, and the private sector to discuss the need for just green transitions. This can be further reiterated in the Sherpa meetings.
• Promotion of knowledge sharing and South-South Co-operation by supporting research and analysis on the impacts of green transitions on various sectors and communities, especially in the Asia-Pacific region to better understand the challenges and opportunities involved.
• Support side events to mobilize expert opinion and infuse it with local conservation practices within different countries.
• Provide policy guidance, share best practices and experiences between member countries which can help identify successful policies and measures that can be replicated in other countries.
• Mobilize green finance and investments by supporting green finance mechanisms, promoting sustainable investments, and encouraging private sector investments in green projects.

To strengthen the policy discourse on this matter within the G20, in the international community, and nationally, G20 India 2023 can take the following actions:

• Elevate the issue on the G20 agenda: Prioritize the issue of just green transitions on its agenda and ensure that it is discussed at all relevant meetings and events.
• Support capacity building and technology transfer: Providing technical assistance, sharing expertise, and supporting the development and deployment of green technologies in emerging and developing countries.
• Collaborate with international organizations and leverage multilateral framework: Work together with organizations such as the UN, World Bank, and others to advance the discourse on just green transitions. Strengthen international cooperation on just green transitions through multilateral mechanisms such as the UN Framework Convention on Climate Change (UNFCCC) and the Paris Agreement allowing countries to take a collaborative, coordinated approach while making the transition, achieving their climate goals and promoting sustainable development.
• Engage with non-member countries: Engage with non-member countries to promote dialogue and cooperation on just green transitions.
• Convene a task force: Create a task force consisting of experts in the field to provide recommendations on how to strengthen policy discourse.

Q3 What kind of coordinated policy responses should G20 enable and unlock to support the developing countries as they undergo these transitions in the face of increasing challenges to the development agenda? How to ensure that coordinated responses, strategies and action plans are created at national, international levels for development strategies and industrial transitions to enable progress on both 2030 agenda including just green transitions? Should the international community look beyond the principle of ‘do no harm’ and actually proactively create an enabling environment for such transitions? What would be the major contours of the such an environment? Can we look to Bridgetown initiative for answers in this regard?

Coordinated policy responses are critical to support developing countries as they undergo a just green transition. Such responses require a multi-sectoral approach involving policymakers, civil society, private sector, and international organizations. Here are some key policy responses that can support developing countries in their transition:

• Policy Space to support developing countries to create enabling policy environments for the transition to a low-carbon economy. This can include supporting the development of national climate policies, promoting the adoption of renewable energy targets, establishing carbon pricing mechanisms, incentivising low carbon investment, and providing technical assistance on policy design and implementation.
• Just transition strategies to ensure that vulnerable communities and workers in high-carbon industries are not left behind in the transition through re-training, up-skilling as well as creating new job opportunities. As per an International Labour Organization (ILO) report, up to 14.2 million net green jobs in the Asia Pacific region can be achieved by 2030 if countries learn to recognize opportunities, ensure Decent Work Agenda and the upskilling and reskilling of young people.
• Green investment and financing from international financial institutions, global platforms such as the Green Climate Fund (GCF), and also the private sector. According to Sustainable Banking Network (SBN), green finance is gaining strength in Bangladesh, Nepal, and Mongolia.
• Technology transfer and capacity building to accumulate the necessary expertise to operate and maintain clean technologies. World Bank, GCF, Clean Energy Access Network (CLEAN) have projects which focuses on building capacity of SMEs, local technicians, among others.
• Partnerships between developed and developing countries to support just green transitions including promotion of private sector investment in clean energy projects, facilitating exchange of knowledge and expertise, and encouraging collaboration on research and development.

Coordinated responses, strategies and action plans can be created at national, international level through first national level coordination such as inter-ministerial committees, task forces. At the international level, it can be done through organizations such as the United Nations which can help facilitate international coordination and cooperation by providing a platform for countries to share knowledge and experiences, exchange best practices, and collaborate on joint initiatives.

Clear frameworks, such as national development plans and international agreements, are required to guide the transition to a sustainable economy. SDG 2030 Agenda and the Paris Agreement are examples of such frameworks. According to a report by the United Nations, only 71 out of 193 countries have aligned their national development plans with the 2030 Agenda, highlighting the need for greater coordination at the national level. According to a report by ILO, only 38% of countries have established coordination mechanisms that involve all relevant stakeholders, highlighting the need for greater collaboration and coordination. Lastly, there should be clear targets and indicators for measuring progress and accountability.

Even though the “do no harm” principle is important, it may not be sufficient to achieve a just and sustainable transition. The ongoing climate crisis is urgent and the current trajectory of carbon emissions puts us on track for catastrophic impacts on both people and the planet. According to the IPCC Special Report on Global Warming of 1.5°C, we have a limited window of time to take action to limit warming to 1.5°C and avoid the worst impacts of climate change. This means that we need to go beyond “doing no harm” and take proactive steps to reduce emissions and transition to a sustainable, low-carbon economy such as creating an enabling environment by providing necessary support and incentives for actors to act. This can include policies that promote renewable energy, energy efficiency, and sustainable transport.

Countries have already started taking proactive steps to create an enabling environment for just green transitions. For example, the European Union’s Green Deal is a comprehensive strategy that includes ambitious targets for emissions reduction, renewable energy, and energy efficiency, as well as measures to support the transition of workers and communities that may be impacted by the transition. The Bridgetown Initiative is another example of a regional initiative that aims to support a just transition to a green economy in the Caribbean.

It is worth noting that there are also risks associated with a failure to create an enabling environment for just green transitions. For example, if workers and communities are not adequately supported in the transition, there is a risk of social and economic disruption. In addition, if the transition is not managed in a way that is equitable and just, there is a risk of exacerbating existing inequalities and injustices. Therefore, taking proactive steps to create an enabling environment is not only necessary to address the urgent threat of climate change, but also to ensure that the transition is fair and equitable.

Multi-sectoral policy reforms are needed to support developing countries as they undergo a just green transition and it may include:

1. Green procurement policies: Governments can use their purchasing power to incentivize the adoption of sustainable practices by requiring goods and services to meet certain environmental and social standards which can drive demand for sustainable products and services.
2. International trade policies: International trade policies can be used to promote sustainable practices and ensure that developing countries are not disadvantaged in the global economy. This can involve promoting fair trade practices, reducing trade barriers for sustainable products, and supporting the development of sustainable supply chains.
3. Strengthening institutional capacity: Developing countries require strong institutions with the capacity to design, implement, and monitor just green transition policies.
4. Social Inclusion: Governments can foster social inclusion by engaging with marginalized groups, such as indigenous peoples and women, and ensuring that their voices are heard in the transition process. They can also invest in social safety nets to support those who may be negatively impacted by the transition.
5. Knowledge sharing: Governments, civil society organizations, and international organizations can share knowledge and best practices on policies, technologies, and financing mechanisms that support just green transitions. Platforms such as the Global Green Growth Institute can provide a forum for knowledge sharing and collaboration.
6. Private sector engagement: Governments can engage with the private sector through public-private partnerships, regulatory frameworks, and incentives as companies can play a vital role in developing and deploying clean technologies, investing in sustainable infrastructure, and promoting sustainable practices.

Q4 What are the elements beyond finance (such as technology & capacity building, labour policies, investments in infrastructure, policy support, role of MDBs and DFIs, innovation and entrepreneurship etc) that need to be considered as part of the international enabling framework to support these transitions? What are the key action points in these areas?

Q5 What are the existing international frameworks that can be leveraged and built on by G20 to support developing countries for JGT?

1. Paris Agreement: The Paris Agreement incorporates provisions for supporting developing countries in their efforts to shift to a low-carbon economy.
2. United Nations Sustainable Development Goals (SDGs): Several of the SDGs, including Goal 7 (Affordable and Clean Energy) and Goal 13 (Climate Action), are directly related to the transition to a low-carbon economy.

• ILO Guidelines: ILO has guidelines to ensure that the transition to a low-carbon economy is socially inclusive, by promoting decent work, social protection, and workers’ rights.

1. Montreal Protocol: The Montreal Protocol focuses mainly on Ozone Depleting Substances and has set realistic indicators and goals for developed and developing countries to limit global warming.
2. Addis Ababa Action Agenda: The Addis Ababa Action Agenda forms a comprehensive and coherent framework for financing sustainable development, which is critical for the realisation of the SDGs.
3. The Sendai Framework for Disaster Risk Reduction: The framework recognizes the importance of addressing climate change as a key driver of disaster risk and calls for actions to reduce disaster risk through sustainable development and climate adaptation.

In a nutshell, these international frameworks provide a range of tools and resources that can be leveraged to support developing countries in their efforts to achieve a just transition to a low-carbon, sustainable, and socially inclusive economy.

Q6 What are the various transitions that could become a part of the just green transitions discussion? Is it possible to undertake a policy impact assessment of the work happening internationally on this issue? How can we strengthen the Action Plan for a multi-year approach on this issue?

The just green transition is a broad concept that encompasses a range of transitions, including:

1. Energy Transition: Shift to renewable energy sources (solar, wind, hydro)
2. Urban Transition: Transforming cities to be more sustainable, livable, and resilient (green infrastructure, energy-efficient buildings, and sustainable land planning)

• Industrial transitions: Shift to cleaner and more sustainable industrial processes (circular economy, sustainable forestry practices and agriculture)

1. Transportation Transition: Switch to sustainable transportation systems (electric vehicles, public and active transportation)
2. Agriculture and food system transitions: Making agriculture and good systems more sustainable, equitable and resilient (agro-ecological practices, food waste reduction, sustainable food consumption patterns)
3. Financial Transition: Transition to more sustainable and responsible financial systems (investment made towards sustainable and socially beneficial projects)

• Social Transition: Transition to more equitable and socially inclusive societies with access to decent work, clean energy, education, and healthcare.

Yes, it is possible to undertake a policy impact assessment because it is (i) broadly accepted globally as a planning and decision-making tool of choice (ii) used increasingly to measure responses to climate change, and (iii) public participation is a vital component of impact assessment processes. For this to be done, just transition indicators along with specific measurement areas will have to be set. The following parameters can be used to conduct a policy impact assessment:

Strengthening the Action Plan for a multi-year approach will require a comprehensive strategy involving participation and coordination from multiple stakeholders, some of the ways to do it involve:

1. Setting clear goals and objectives, identifying priority sectors, and defining key indicators to measure progress.
2. Ensuring involvement of all relevant stakeholders (governments, private sector, civil society, workers’ representatives) and coordination between these parties. This can also include the creation of a high-level steering committee, working groups, and regular consultation mechanisms.

• Equipping relevant institutions with necessary resources, expertise and knowledge to implement the Action Plan effectively through capacity building programs, technical assistance, and institutional reforms.

1. Establishing partnerships with the private sector, civil society, and international organizations, as well as mobilizing financial resources from both public and private sources.
2. Prioritizing the needs and interests of workers and communities affected by the transition, establishing social dialogue mechanisms, and ensuring that vulnerable groups are not left behind.
3. Establishing clear monitoring and evaluation frameworks, collecting, and analyzing relevant data, and using the findings to inform decision-making and course correction.

Q7 How can industrial, specifically manufacturing policies be made more responsive to both development and climate goals by incorporating just green transitions? What are the challenges?

Even though every house and every company emits some level of greenhouse gases, one of the most significant levels comes from industries, especially manufacturing industries as they are one of the most carbon-intensive in nature. In 2021, industrial activity was directly responsible for emitting 9.4 Gt of carbon dioxide which is a quarter of global emissions. To achieve net zero emissions by 2050, this figure must fall to 7 Gt by 2030 while supporting production growth. Industries must drive productivity, innovation and growth while keeping to climate change commitments by achieving supply chain resilience, reducing waste. This will require changes in policies as growth and development models pursued in the last decades have not led to inclusive growth and sustainable development required by the world.

The concept of just transition was born from labour unions that wanted to ensure support structures and safeguard systems with a rapidly changing industrial landscape. Therefore, it makes sense to match the needs of the environment, create industries and jobs to match that change for the betterment of the population and the economy. So, just transition strategies are multifaceted and ensure governments follow a bottom-up engagement involving all stakeholders, as well as commit to incurring change in existing industrial policies to ensure an inclusive sustainable society.

Governments can take measures to foster responsiveness and climate goals among industries by taking measures to reshape their industrial policies. First, industrial policies can adopt the UNEP’s Six Sector Solution to the Climate Crisis where it has been mentioned that annually, industries can reduce emissions by 7.3 Gt by simply shifting to passive and renewable energy-based cooling and heating systems. Second, as per the OECD, green transition plans must be integral in country-specific National Development Plans and institutional mechanisms to ensure policy coherence at government level.

Countries are already moving towards changing their industrial policies. For instance, China- considered the manufacturing hub of the world, is heavily invested in energy efficiency, and has launched several national level policies incentivizing and encouraging Chinese manufacturers to shift to green manufacturing technologies. Malaysia implemented the National Green Technology Policy in 2009 that oversees application of Green Technology in co-generation by the industrial and commercial sectors. In Morocco, the government highly encourages FDI for solar-powered projects and has been actively supporting industries shifting to renewable sources of energy through three initiatives at policy level: national energy strategy; the Moroccan Innovation Initiative; and the revitalization of the national industrial development strategy.

Challenges of implementation may include:

• Resistance from industries to transition to a low-carbon economy due to concerns about the cost of shifting to new, green technologies and processes. SMEs significantly contribute to the GDP in many low – income countries; however, given their short-term economic perspective, SMEs may be reluctant or slow to adopt change and may even lack the environmental expertise.
• Lack of political will as many policymakers may not prioritize just green transitions due to other competing policy objectives or political considerations.
• Limited technical capacity of policymakers and even industry stakeholders to effectively incorporate just green transitions into industrial policies. Manufacturers may be concerned that adopting green technologies and practice will make them less competitive compared to companies that are not adopting these measures.
• Uneven access to resources (financial and technical) to effectively incorporate just transitions into industrial policies in the case of developing nations. In addition, the presence of informal sector in such nations may prove to be a challenge too. Governments must consider job creation, technological progress and the WTO provisions prior to implementing renewable energy technologies.
• Protecting the global supply chains and cost optimization may also pose as challenges whilst pushing industries toward just transition. UN’s research has implied that climate action will not constrain national budgets. In fact, transitioning to a green economy is a feasible financial decision, and could possibly lead to an economic gain of $26 trillion USD by 2030.

All in all, the greening of industries will require coordinated governance regimes, precise government commitments, green policies and institutional, and integration between different tiers and sectors of government to be successful. Therefore, policies must be framed based on recommendations developed using a participatory multi-stakeholder model.

Q8 How to bring in the discussions on cost of capital in developing countries, political support for blended finance, mobilization of private sector financing esp in developing countries, carbon pricing and debt and its impacts on just green transitions in this context?

Finance for green investments is limited in developing countries, and in many places it is just emerging. Cost of capital in developing countries is higher when compared to developed nations making it more challenging to access finance for green investments. A report by World Bank has stated that carbon pricing can mobilize significant private sector investment, with the potential to raise trillions of dollars in climate finance by 2030. A recent report by the UN notes that developing countries’ debt vulnerability has increased significantly since the pandemic, with many countries facing a debt crisis. Debt sustainability is essential for just green transitions, as high levels of debt can limit developing countries’ ability to invest in green projects and social programs.

A multi-stakeholder is imperative to paving the way for discussions on garnering political support for blended finance, and to mobilize private sector financing across developing countries. This approach can involve:

1. Policymakers, private sector actors, civil society organizations, and academia can come together to discuss the challenges and opportunities related to just green transitions.
2. Sharing knowledge and best practices to build capacity and awareness among stakeholders through of case studies, toolkits, and other resources that highlight successful approaches to just green transitions.
3. Advocacy efforts to build political support for just green transitions and can include outreach to policymakers, advocacy campaigns, and media engagement. Political support is crucial when it comes to ensuring private sector financing.

Green Finance Initiative of Mexico, Kenya Climate Ventures Fund (KVF) are good examples of financing mechanisms which have been adopted to provide blended finance to climate smart ventures in renewable energy. In Asia, the Indonesia Infrastructure Guarantee Fund brings in private sector investment in green infrastructure project.

Q9 Which international treaties/global commitments such as the Montreal Protocol and COPs can be referenced to help promote just green transition?

In addition to the international frameworks mentioned in answer 5, global commitments that promotes just green transition include:

• Green Climate Fund (GCF): The GCF provides grants, loans, and other forms of financial support for climate change mitigation and adaptation projects, including those aimed at promoting a just transition to a low-carbon economy.
• Indonesia Just Energy Transition Partnership (JETP) 2022: Indonesia launched the JETP 2022 during the G20 Summit in November 2002 which targets to mobilize millions to help Indonesia adopt renewable energy.
• The Convention on Biological Diversity: The international treaty aims at conserving biological diversity, and it is promoting just green transitions by integrating biodiversity concerns into sustainable development planning, promoting equitable sharing of the benefits arising from sustainable use of natural resources.
• The Climate Diplomacy Initiative: Climate Diplomacy Initiative is a collaborative effort which aims to foster, raise awareness, and explore new ideas for mitigating the impacts of climate change.
• The Global Environment Facility (GEF): The GEF supports a just transition by promoting sustainable development and ensuring that the benefits of environmental protection are shared equitably by providing grants and technical assistance to support projects.
• Renewable Energy and Energy Efficiency Partnership (REEEEP): REEEP is a global public-private partnership that supports the development of renewable energy and energy efficiency markets in developing countries. REEEP provides grants and technical assistance to support innovative business models, policy frameworks, and financing mechanisms that promote sustainable energy access and reduce greenhouse gas emissions.
• Just Transition Centre (JTC): JTC provides technical assistance and capacity building to countries and stakeholders to support the development and implementation of just transition policies and measures. JTC promotes social dialogue and stakeholder engagement and supports the integration of social and environmental considerations in climate policymaking.
• Initiative for Climate Action Transparency (ICAT): ICAT is a global initiative aimed at providing support to countries in enhancing transparency and accountability in their climate actions.
• The Just Transition Fund: The fund focuses on coal community transition, and partners with community-based organizations to scale locally led initiatives.

Q10 How to enable interaction between the various transitions taking place, provide policy space to developing countries to ensure that the just green transition is in line with the principles of equity and fairness?

Providing policy space to developing countries to ensure that the just transition is in line with the principles of equity and fairness can be achieved through several measures:

• Capacity Building: Developing countries should be provided with the necessary capacity building support to enable them to participate fully in the just green transition. This support should include technical assistance, financial resources, and institutional capacity building.
• Financing Support: Financial support is essential to enable developing countries to undertake the necessary investments and transitions towards a low-carbon and sustainable future. Developed countries and international financial institutions should provide financial resources to support developing countries in their transition to a just and sustainable future.
• Technology Transfer: Technology transfer is essential to enable developing countries to access and utilize low-carbon and sustainable technologies.
• Policy Coherence: Policy coherence should be ensured across the various transitions taking place. This can be achieved by integrating the various transitions into national development plans and policies. International cooperation is essential to provide policy space to developing countries to ensure that the just green transition is in line with the principles of equity and fairness.
• Participation and Inclusion: Developing countries should be actively involved in the design and implementation of just green transition policies and programs. This will ensure that their perspectives, needs, and priorities are taken into account.

According to ILO, a just transition framework requires a systemic and integrated approach that involves coordinated action across different sectors and levels of governance. This means that the transition to a green economy should not be seen in isolation, but rather as part of a broader transformation towards sustainable development involving various stakeholders including governments, civil society organizations, private sector, and academia.

Encouraging South-South cooperation can help foster collaboration and knowledge sharing between countries that are at similar stages of development and facing similar challenges in transitioning to a more sustainable and equitable future. Bangladesh-Nepal’s Energy Cooperation and Bhutan-India’s Hydropower Cooperation are good examples.

1. North-South cooperation so that developed countries can provide financial, technical support to developing economies to help them transition to a more sustainable and equitable future. Developed countries can also transfer technology and knowledge to developing countries to help them build their capacity to implement just green transitions. The International Just Energy Transition Partnership is an example through which France, Germany, United Kingdom, United States of American along with the European Union will be supporting South Africa’s decarbonization efforts.
2. Multilateral cooperation can facilitate collaboration and coordination between countries in transitioning to a more sustainable and equitable future. International organizations, such as the United Nations, can provide a platform for countries to share knowledge, experiences, and best practices.