Overcoming five key challenges to make the energy transition a just labor transition

Abstract

Shifting rapidly to a low-emissions global economy could severely disrupt workers’ livelihoods and their communities, exacerbating inequalities and perpetuating injustice. In a Just Labor Transition, strategic policies prepare workers for new jobs, enable inclusive decision-making with meaningful participation of workers and their representatives (including labor unions and other collective organizations), and secure social license for change. Delivering on the Paris Agreement’s global temperature goal requires a rapid transition toward net-zero emissions. Climate neutrality will demand a comprehensive overhaul of energy, transportation, housing, agriculture, and manufacturing within under three decades1. This structural shift will profoundly affect workers and communities, requiring avoidance of the painful adjustments seen with globalization and automation that led to concentrated job losses and economic distress2. This commentary examines the Just Labor Transition from a mainstream economic perspective, focusing on policies supporting workers and communities through the energy transition; finally, it constitutes an important aspect of the broader literature on Just Energy Transitions and offers a complementary perspective to frameworks grounded in other social science disciplines. A Just Labor Transition offers a promising path to achieve an equitable shift to a low-emissions economy by creating sustainable and decent work opportunities while safeguarding workers’ and communities’ rights, livelihoods, and well-being. Emerging from the international labor movement and acknowledged in the Paris Agreement as “the imperatives of a just transition of the workforce and the creation of decent work and quality jobs in accordance with nationally defined development priorities.” Furthermore, it should include the four pillars of decent work: social dialogue, social protection, rights at work, and employment3. Although this comment focuses on the labor aspects of just transition, the concept has evolved to encompass broader dimensions, including energy democracy, climate justice, and regional development4, but at its core, it remains about delivering justice and leaving no one behind5. A successful energy transition must recognize people’s importance while boosting productivity and reducing emissions. It is as much a social and economic challenge as an environmental one. Without clear pathways to support their well-being, workers and communities may resist the transition, raising costs and climate risks. Addressing their needs today builds trust and shows the transition can lead to a better future for all.

Keywords: Energy transition, Low-emissions economy, Workers’ livelihoods, Social protection, Decent work