Foresight Africa Blog

Shaping a fair and clean energy future: The essence of a just transition

Authors: Erica Atieno, Lindah Kakai, Joel Onyango

Background

Climate change, a pervasive global phenomenon, mainly driven by anthropogenic activities, manifests in far reaching consequences such as extreme weather events, rising sea levels, ecosystem disturbances, and threats to biodiversity.

[1] [2] As we confront this escalating environmental crisis, an imperative emerges - a call for transformative measures to tackle the root causes and alleviate its profound negative impacts. This compels us towards a pivotal shift. One of the key strategies to mitigate climate change is the shift to cleaner and sustainable energy systems, away from the conventional fossil fuels.

The global shift towards a sustainable energy system has gained momentum due to the decreasing costs of renewable energy and the shared commitment to achieving a net-zero future. This drive aligns with Sustainable Development Goal (SDG) 7, emphasizing universal access to affordable, reliable, and clean energy. Concurrently, the Paris Agreement, with its objective of restricting the global average temperature increase to well below 2 degrees Celsius above pre-industrial levels, and an even more ambitious target of 1.5 degrees Celsius, further propels the shift toward sustainable energy practices. However, moving towards cleaner and sustainable energies requires more than just technological shifts; it necessitates intricate social and technological adjustments and will significantly impact society[3]. Ensuring the transition is just socially, economically, and environmentally equitable to everyone while limiting risks and maximizing opportunities becomes paramount3, acknowledging the reality that the energy transition may disproportionately affect individuals across various geographies as well as diverse age groups and genders[4].

 Just energy transition can be defined as transitioning to green sources of energy in a way that is as fair and inclusive as possible to everyone concerned, creating decent work opportunities and leaving no one behind[5]. It can also be viewed as a shift from coal, fossil fuels and unclean energy sources in a way that addresses the social consequences of the transition, including training and alternative job creation for affected workers and new economic opportunities for affected communities.  This is recognized by global climate change   policies and as well as labour law organizations.  For instance, the Paris Agreement lays emphasis on just transition by acknowledging the need to take into account the imperatives of transitional justice of the workforce and the creation of decent work, in accordance with nationally defined development priorities[6]. Similarly, the International Labour Organization (ILO), also provides guidelines for a just transition, emphasizing the need for managing the transition process to achieve decent work, social inclusion, and poverty eradication.  

 A just transition is crucial due to heightened challenges faced by certain sectors and communities during this transformative journey. This aligns with broader SDGs, including the principle of leaving no one behind.

What does a just transition look like?

  • Fairness to workers and communities: As we move away from industries that depend on fossil fuels, there is need to think about the people and communities who will be affected. A just transition actively looks out for these communities, providing support and new opportunities like job training and alternative employment options.
  • Participation of local communities: Recognizing the vital role of local communities, a just transition makes sure they are part of the decision-making process for energy projects. This way, their unique needs and concerns are considered.
  • Leaving no one behind: making: Clean energy benefits should not be exclusive. A just transition means creating policies that make clean energy affordable and available to everyone, preventing negative impacts on vulnerable or marginalized groups.
  • Including everyone in the change: At its core, a just transition is all about including everyone. It creates an energy shift that benefits everyone, addressing past inequalities and making sure the advantages of clean energy are shared fairly.

In a concerted effort to contribute to this global imperative, the African Centre for Technology Studies (ACTS), in partnership with a consortium that includes the Institute for Economic Justice (IEJ), How We Adapt (HWA), and the Congress of South African Trade Unions (COSATU), are implementing a two-year research project funded by Canada’s International Development Research Centre (IDRC). The primary goal of the research project is to understand the necessary public policy interventions crucial for solidifying decent work and sustainable livelihoods, particularly for women and youth with a focus on the localization of clean energy value chains, inclusive of Small Medium and Micro Enterprises (SMMEs) capability development in Kenya. The research will explore three overarching questions aimed at informing effective policies in Kenya; and empowering stakeholders to actively participate in achieving localization, decent work, and sustainable livelihoods within the clean energy value chain. Country studies are concurrently being undertaken in South Africa and Ghana by partners within the consortium, with ACTS leading the Kenyan study.

Data for this study will mainly be collected through desk review, firm level surveys and key informant interviews; and the findings will be validated through a peer review workshop. Apart from the report, other key outputs will include research summaries, policy briefs and an advocacy toolkit for trade unions. There will also be local seminar series targeting trade unions/SMMEs and a cross-country conference.

Why now and why Kenya?

This study holds great relevance, influenced by global trends towards decarbonization, decentralization, and digitization in the energy sector[7]. Kenya, in particular, stands out as a pivotal case study for several compelling reasons. Notably, Kenya distinguishes itself as a leader in renewable energy development, with an impressive 84.65% of the energy integrated into the national grid sourced from renewable energy[8]. This remarkable achievement underscores the nation's steadfast dedication to sustainable energy solutions, effectively reducing the carbon footprint and showcasing the feasibility of transitioning to cleaner energy sources.

Complementing this commitment, several policies have been designed to promote renewable energy adoption. Instruments such as Feed-In-Tariff (FIT) policies which incentivizes renewable energy producers alongside Value-Added Tax (VAT) exemption on solar products have played a role in creating an enabling environment, propelling the growth of the renewable energy sector and aligning with the nation's broader sustainability objectives.

Institutional fortitude further emphasizes Kenya's commitment, exemplified by the establishment of the Directorate of Renewable Energy under the Ministry of Energy and Petroleum. This dedicated directorate, alongside supporting institutions like the Rural Energy and Renewable Energy Corporation (REREC) and the Geothermal Development Company (GDC), reflects a strategic institutional framework.

Such unwavering commitment has not gone unnoticed on the global stage as Kenya is ranked 46th position worldwide on the Energy Transition Index (ETI), with an impressive score of 57.8 points out of 100.[9] This recognition solidifies Kenya's position as a global model for environmentally conscious practices, reaffirming its leadership in the ongoing global transition toward a more sustainable and resilient energy landscape.

However, amidst these commendable efforts, it remains crucial to delve into how the policies leverage the localization of clean energy value chains, including SMMEs capability development, to enhance decent work and sustainable livelihoods, specifically for women and youth.

Implications of the research

The research findings hold significant potential to shape policy and regulatory frameworks aimed at fostering a just energy transition in Kenya. Policymakers can utilize these insights to prioritize localization, decent work, and SMMEs capacity-building, while ensuring gender inclusivity and opportunities for the youth. Practical recommendations from the research can inform initiatives to enhance SMME capabilities in the energy sector through tailored training programs, access to financing, and technical support. Additionally, by emphasizing gender inclusivity, the research can drive efforts to mainstream gender considerations, promote women's participation, and address barriers to their involvement in the energy sector. Further, the research highlights opportunities for youth engagement and entrepreneurship within the energy sector, while also providing insights to inform advocacy efforts by trade unions to protect labor rights and interests, and promote descent working conditions during the energy transition.


[1] Das, S. et al. (2020). Linking IPCC AR4 & AR5 frameworks for assessing vulnerability and risk to climate change in the Indian Bengal Delta. Prog. Disaster Sci. 7, 100110

[2] Kebede, A. S., Nicholls, R. J., Hanson, S. & Mokrech, M. (2012).Impacts of climate change and sea-level rise: A preliminary case study of Mombasa, Kenya. J. Coast. Res. 28, 8–19

[3] Wang, X., & Lo, K. (2021). Just transition: A conceptual review. Energy Research & Social Science82, 102291.

[4] UNDP. (2024, January). Just Energy Transition: Governance needs and implications - Testing the application of a conceptual framework. Discussion Paper for COP28. Retrieved from https://www.undp.org/sites/g/files/zskgke326/files/2024-01/discussion_paper_-_just_energy_transition_-_governance_needs_and_implications_-_final.pdf

[5]International Labour Organization. (2015). ILO Guidelines for a just transition towards environmentally sustainable economies and societies for all. Retrieved from https://www.ilo.org/global/topics/green-jobs/publications/WCMS_432859/lang--en/index.htm

[6] Agreement, P. (2015, December). Paris agreement. In report of the conference of the parties to the United Nations framework convention on climate change (21st session, 2015: Paris).

[7] Webb, M., Scott, A., Gençsü, I., & Broekhoff, D. (2020). Urban energy and the climate emergency: Achieving decarbonisation via decentralisation and digitalization. Coalition for Urban Transitions, London and Washington, DC. Tomado de https://urbantransitions. global/publications.

[8] Energy and Petroleum Regulatory Authority (EPRA). (2023). Energy and Petroleum Statistics Report for the financial year ended 30th June 2023.

[9] https://www.weforum.org/publications/fostering-effective-energy-transition-2023/global-dashboard/#report-nav

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