Incorporating just transition strategies into developing countries NDCs and Covid-19 responses: Comparing insights from Ghana, Colombia, and Indonesia

The just transition framework addresses the dual crises of climate change and in-equality. Just transition principles must be far-reaching and multidimensional, addressing standing social and economic inequalities whilst taking care not to ex- acerbate them. It does this by placing workers and communities at the centre of the transition debate, involving stakeholders throughout the decision-making process. In a developing country context, where there is a diverse range of socio-economic and political structures, alongside a myriad of cultures, the meaning of just transition must be flexible to reflect differences in and between countries. This report advances the Climate Strategies research findings of the 2020 Reflections Paper: Incorporating just transition strategies in developing country Nationally Determined Contributions. By focusing our engagement at the national level, the recommendations in this report are designed to help guide the development of the national climate policy aspect of just transition. The research adopted a mixed-methods approach involving a review of the relevant literature, and case studies in three countries. The in-country methodologies used a combination of direct stakeholder engagement, which included semi-structured interviews, and surveys, tailored to their individual domestic circumstance. The findings from each of the case studies established that: In-country research partners provide knowledge and understanding of the unique circumstances and nuances that guide policymaking in their country The awareness and meaning of just transition across the three countries varied considerably. Colombia is the only country that explicitly includes just transition in its revised NDC, submitted to the UNFCCC in December 2020. Within the Indonesian government, only one bureau in a specific ministry was familiar with the concept of just transition. This was due to their involvement in international events where just transition principles have been explored. In Ghana, there was awareness of the term ‘just transition’ but much like the Indonesian context just transition had not been explored or adapted by government officials to suit the country context. Methods for stakeholder engagement were tailored to each context to engage different actors in different contexts. This stage of the project found that more informal methods of engagement proved to be the most successful. The in-country partners each developed their own definition of just transition, to reflect the county context to effectively communicate and explain the benefits of employing just transition strategies in their country. To further stimulate discussion and knowledge-sharing with stakeholders, the Indonesian research partners began each engagement with a presentation contextualizing just transition. One of the biggest challenges in creating just transition strategies in developing countries is the high incidence of the informal economy – which looks different in different contexts and must be engaged within a way that suits the context. The research also began the process of engaging with donors, investors and Multilateral Development Banks (MDBs) as both a financial and knowledge resource to facilitate the inclusion of just transition strategies by governments as a basis for inclusive stakeholder dialogue with affected communities. In relation to Covid-19, each country has been affected and immediate government responses have been similar providing support to the most vulnerable. Each has implemented emergency fiscal packages to address the health impact, provide relief to households and firms. The pandemic and its responses have acted as a barrier in all cases to stakeholder engagement. Covid-19 response measures have not yet been linked to climate adaptation and mitigation strategies. The report concludes with three major findings/ideas which are presented in the Venn diagram (Figure 1). Firstly, it highlighted the importance of establishing and maintaining relationships with relevant stakeholders to enable ownership of just transition in a specific national context. Secondly, this project has shown the importance of local knowledge, expertise and contacts through the in-country partners to place people at the centre of just transition. By collaborating and co-producing climate strategies they can also address current and potential inequalities. Finally, the study emphasised the need to extend the scope of just transitions beyond developed countries and realise the global scope of the just transition concept. The study gave some indication as to which actors are interested in being involved in discussions around what just transition means in the local context and how just transition measures may be implemented. Challenges such as significant informal workforces add a crucial component to transforming the economy in a just way that need to be recognised and integrated into the approach to just transitions. The study identified some key guidelines and recommendations for national governments. These can help inform the approach to technical and capacity building support and stakeholder engagement, including the informal economy (Figure 2). As has been found, there is no one model fits all, each country circumstance is unique, and the meaning of just transition must be adapted accordingly. Just transition concepts in developed countries, for instance, exclude what in many developing countries is the predominant sector of the workforce, the informal sector. This needs to be taken into consideration, alongside other factors such as institutional barriers, financial challenges and barriers around inclusive social dialogues. The next stage of the project will work with nine in-country partners, selected for their diverse environmental, social and economic national circumstances. This diversity will provide a more comprehensive range of experiences from which governments and civil society in other countries can draw from for guidance.