Just Transition
A framework of principles, processes, and practices that aims to ensure the shift from a high-carbon to a low-carbon economy is fair and inclusive, so that no workers, communities, or regions are left behind.
Policy & RegulationThe concept of Just Transition originated in the 1980s through U.S. trade unions seeking to protect workers whose livelihoods were threatened by environmental regulations. It has since evolved into a globally recognized principle of climate policy. The IPCC defines it as “a set of principles, processes and practices that aim to ensure that no people, workers, places, sectors, countries or regions are left behind in the transition from a high-carbon to a low carbon economy.”
The fundamental recognition is that while climate action is essential, the economic disruptions it causes are not distributed equally. Coal miners, fossil fuel workers, heavy industry employees, and the communities that depend on carbon-intensive sectors bear a disproportionate share of the transition’s costs.
Core Principles
- Equity: The costs and benefits of the transition must be shared fairly across society
- Inclusion: Affected workers and communities must be actively involved in planning and decision-making
- Social protection: Adequate support systems (retraining, income support, early retirement, safety nets) must be in place
- Economic diversification: Regions dependent on fossil fuels need investment in new, sustainable economic activities
- Decent work: New green jobs must offer fair wages, safe conditions, and worker protections
Just Transition in EU Policy
The EU has institutionalized Just Transition as a core component of the European Green Deal. The Just Transition Mechanism (JTM) provides targeted support through three pillars:
- The Just Transition Fund (JTF), providing grants directly to affected regions
- A dedicated scheme under InvestEU for mobilizing private investment
- A public sector loan facility
Member states must prepare Territorial Just Transition Plans identifying the most affected regions. Bulgaria, with its coal mining regions and coal-dependent power generation, is among the EU member states that stand to benefit significantly from Just Transition funding.
Why It Matters
Just Transition is not merely an add-on to climate policy - it is a prerequisite for its success. Climate action that ignores the social consequences for affected communities risks generating political backlash that can delay or reverse environmental progress. By ensuring fairness, Just Transition builds the broad social consensus necessary for ambitious and sustained climate action.