JUST TRANSITION
WHY IN NEWS?
- According to sources, India will press for a “just energy transition” at the G-20 parleys, pointing out that 5 million people are directly dependent on coal mining.
WHAT IS JUST TRANSITION?
- A “Just Transition for All” initiative puts people and communities at the center of the transition.
- The initiative works with stakeholders to create the plans, policies, and reforms needed to mitigate environmental impacts, support impacted people, and build a new clean energy future.
- The World Bank has built an approach based on lessons learned from decades of transition experience.
- Just Energy Transition Partnerships aim to bridge the gap between developed and developing nations in moving towards clean energy.
- South Africa, Indonesia, and Vietnam are the first three countries to receive funding.
- Our approach, and the lessons that guided it, are organized around three focus areas:
- governance,
- people and communities, and
- repurposing of former mining land and other assets.
- Each focus area involves a set of plans, policies, and actions that together can mitigate the impact of coal mine closure on affected people and communities.
- In a Partnership, wealthier nations fund a coal-dependent developing nation to support the country’s own path to phase-out coal and transition towards clean energy while addressing the social consequences.
RECENTLY CONCLUDED JUST TRANSITION PARTNERSHIPS
- The first Just Energy Transition Partnership was with South Africa and was announced at COP 26 Glasgow in November 2021.
- The funders, five of the current IPG members, pledged 8.5 billion USD in the first financing round.
- A year later, at COP 27 Sharm El Sheikh, South Africa published its JETP Implementation Plan (JETP IP).
- This JETP is expected to prevent up to 1-1.5 gigatons of emissions from the atmosphere over the next 20 years.
- The second Partnership was announced at the G20 Bali Summit in November 2022.
- Indonesia is set to receive an initial 20 billion USD in public and private financing over the next three to five years.
- The donors will assist via grants, concessional loans, market-rate loans, guarantees, private investments, and technical assistance.
- In February 2023, Indonesia launched the Secretariat for the Just Energy Transition Partnership.
- The next one was Vietnam. The Vietnam JETP was announced in December 2022 after a lengthy negotiation process.
- This Partnership will assist Vietnam in finance, technology, and capacity building.
SYLLABUS: PRELIMS, ENVIRONMENT
