As more multinational corporations and investors shift away from traditional carbon-heavy industries towards embracing the green economy, much of the focus has been on the benefits of this transition on organisations’ bottom lines, a country or region’s natural resources. However, less is said of how the decarbonisation transition can adversely affect SMEs, workers, communities, and countries that have depended on carbon-intensive activities for their livelihoods and economies.

This is where the concept of Just Transitions steps in. As defined by the Institute for Human Rights and Business, Just Transition encompass the transition away from high-carbon activities and practices towards a more sustainable green economy. Its primary objective is to mitigate harm to workers, local communities, countries, and regions all while maximising the benefits of climate action. The concept puts a heavy emphasis on the social aspects of the green transition, particularly in relations to workers’ rights. Globally, just transition was affirmed in the 2015 Paris Agreement (COP 21) and gained significant momentum at the 2021 UN Climate Conference in Glasgow (COP 26).