The Paris Agreement of 2015 recognises “the imperatives of a just transition” as we shift to a low-carbon, sustainable future. Like climate change, just transition is a global phenomenon that transcends boundaries. But a one-size-fits-all approach is not viable as India differs from other countries on its just transition needs.
Just Transition seeks to ensure a more equitable transition as societies and economies move away from carbon-intensive sources of energy to low-carbon and environmentally sustainable alternatives. It seeks to support those who are vulnerable to challenges from a green economy transition. This includes the fossil fuel industry, people and communities whose livelihoods are linked to fossil fuels, and poorer consumers who could be adversely impacted if policies are not designed in a socially progressive way.
India is the second largest consumer of coal globally. Coal accounts for 55% of the country’s energy needs and there are many workers dependent on the fossil fuel sectors and ancillary industries, predominantly comprising of contractual and informal workers. A transition away from fossil fuels will have both positive and negative impacts. On the one hand, such transitions can lead to new livelihood opportunities, diversified economic activities and more sustainable pathways of energy generation. While on the other hand, if not adopted mindfully, the transition can also exacerbate economic vulnerabilities of the communities who are reliant on fossil fuel or mineral extraction supply chains.
It is thus important to develop a comprehensive policy framework that can ensure the socio-economic rights of the affected people and communities are well protected. The policies need to be designed while keeping in mind geography, demography, and social factors -including gender parity, worker rights and social protection.
The significance of just transition in government policy
Attempting a clean energy transition at the scale that India requires has many hurdles. These include lack of access to affordable financing and credit instruments, and inadequate institutions that can effectively deploy capital and investment to create alternative livelihood opportunities.
The existing labour laws need to be better aligned to a just and equitable transition of the workforce. They are primarily focused on addressing disputes that may arise between employer and the employees/ workers at the workplace. But informal workers constitute the majority of workforce engaged in coal mining and mineral extraction industries. The laws also do not have necessary provisions to safeguard their interests.
Therefore, governments should look at developing policy mechanisms and targeted programmes to realise the social opportunities of the energy transition. This can include the generation of quality green jobs, improvement in working conditions and gender parity in impacted communities.
Imparting necessary skill development and training measures are crucial to enable individuals and communities engaged in fossil fuel extraction to be ‘future ready’. State authorities will need to set up one-stop centres for planning and implementation of skilling and alternative livelihoods programmes in fossil fuel and mineral extraction dependent regions. Policy measures and incentives that enable the uptake of green energy and technology, including the production-linked incentive (PLI) scheme to promote manufacturing facilities for clean technology, is a move in the right direction.
Another positive development is the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) scheme that is implemented by the District Mineral Foundations (DMFs), launched in 2015 by India’s Ministry of Mines, for the welfare of areas and people affected by mining-related operations. It aims to minimise and mitigate adverse impacts during and after mining on the environment, and uplift socioeconomic status of people in mining districts.
However, a recent evaluation indicates that most states have inappropriate allocation and utilisation of District Mineral Funds ) and the funding for skill development and education is much lower than mandated levels.
The shift away from coal demands a comprehensive understanding of the local economy and people’s aspirations to guide effective policy formulation. To support this, Climate Group is collaborating with the Just Transition Research Centre, IIT – Kanpur to conduct a thorough livelihood mapping exercise and explore aspirations of the youth in Uttar Pradesh's coal districts. We're also aiming to identify how sustainable economic diversification can take place while keeping in view the region’s resources and geo-climatic conditions.
Just transition in transport and energy sectors
Workable transition models hardly exist.
Transportation in India is witnessing a huge transition from conventional internal combustion engine (ICE) vehicles to electric vehicles (EVs). Medium and heavy-duty trucks (MHDTs) play a critical role in India's economy. An estimated 20-40 lakh people are employed in the bus and truck industry. Electrification of this segment is expected to bring about profound alterations in technology, manufacturing processes, skilling needs and consumption behaviors.
As end-users of these vehicles, drivers currently face myriad challenges such as strenuous work hours, low wages, and non-existent in-cabin facilities. This can lead to stress, an increase in the risk of accidents, and impact their quality of life. It is acknowledged by governments and businesses alike that inclusivity in this transition is not an option but a necessity to foster social justice and equity alongside environmental sustainability.
We’ve partnered with the Council for Energy Environment and Water (CEEW) to assess the impact of the transition to zero emission trucks (ZETs) on driver partners. Operators, freighters, and businesses who have adopted e-trucks across geographies in India are being identified for this research. Interviews will also be conducted with drivers to document their experiences.
Another sector undergoing huge transformation is energy.
India aims to achieve 500 gigawatts (GW) of RE capacity by 2030, but there are environmental and social concerns around RE expansion. With this target, the sector is presented with an opportunity to commit to enhancing social and environmental resilience from get-go.
The Responsible Energy Initiative (REI) India is a multi-year, multi-stakeholder program that aims to advance sustainable RE deployment in India. The multistakeholder platform that REI India has woven together consists of industry leaders, financers and investors, policymakers, and communities. It drives people centric business practices.
We’ve been part of REI India for over a year now. Leveraging our flagship RE100 initiative, we’ve collaborated with REI India to drive RE buyers towards responsible RE procurement. Currently, we are in touch with leading multi-national and Indian companies across the cement, automobile, real estate, hospitality, e-commerce, and technology sectors and are in the process of onboarding them to REI India. The larger aim of this collaboration is to develop a guiding framework for RE buyers that offers an actionable toolkit for responsible procurement.
In all, just transition will need consistent efforts by governments and businesses alike to ensure that nobody is truly left behind.
