How can we Ensure a Just Transition?
CSR Europe discussed the social implications of the transition to a low-carbon economy together with a wide range of stakeholders at the Hight-Level web-meeting “A Just Transition to a Low Carbon and Inclusive Society”. Amidst the global health crisis brough about COVID-19, participants recognised the unique opportunity for businesses to bounce forward and reshape themselves in line with the Green Deal.
When it comes to ensuring social justice in the transition to a low carbon economy, we are still suffering from the lack of a systemic approach. While the United Nation’s 2030 Agenda and the Sustainable Development Goals identified the finish line of this journey, they did not highlight a coherent path to follow. In this context, the European Green Deal with its Just Transition Mechanism is the first attempt at overcoming such limit. However, its success will depend on the adoption of similar policies in all the other continents. In other words, the sustainability agenda needs to be promoted at global - and not exclusively at European- level. This was the main conclusion of the High-level web meeting hosted by CSR Europe on 18 March. The event gathered companies, institutions, youth organisations, consumer representatives, investors, and civil society to discuss “A Just Transition to a Low Carbon and Inclusive Society”.
While the Green Deal is defining the path to follow to protect the people and citizens most vulnerable to the transition, it still needs to find a balance between social cohesion, economic prosperity, and environment. Finance will play a key role in defining such balance and making sure that no one is left behind. EU has already developed useful instruments to mobilize public funds, such as the Just Transition Fund and the Multiannual Financial Framework. However, private investments should be assembled as well. How?
Refining of the EU Taxonomy to ensure sustainable investments
Promoting selected market standards, defining green bond principles, and social bond principles
Raising awareness on the already existing tools and standards and fostering new researches and collaborative analysis
However, precondition of a successful Just Transition is collaboration amongst companies, not only in the same sector but across sectors. Only in this way, it will be possible to overcome the silos of standard business structures and practices and find innovative shared solutions. This process could be accelerated by the current global health crisis brought about COVID-19. While coronavirus is altering our lifestyle and changing our behaviours, this crisis offers to businesses, policymakers and other stakeholders the opportunity to bounce forward and reshape themselves in line with the Green Deal.
The web-meeting kicked off CSR Europe’s Community of Practice on Just Transition. We will explore, together with leading companies, the social challenges and opportunities of the low-carbon transition regarding:
Jobs and employability;
Consumption and lifestyle;
Costs and investment.
The next web-meeting is scheduled for May 2020.