Are we underestimating progress on climate action?

In this issue:

• Are we underestimating progress on climate action?
• New: the JUST Stories Database expands with 10 new cases of inclusive approaches to transition design
• Examples of people-centred, finance-driven transitions from around the world
• Just transitions in the news
• Recent just transition insights from IHRB

Are we underestimating progress on climate action?

By Haley St. Dennis , Head of Just Transitions, IHRB

There is far more progress being made around the world to decarbonise the global economy than media headlines suggest. In the past month alone, a binding global tax on the shipping sector’s greenhouse gas emissions was agreed - a first for any sector. Scientists say we are ready to directly link individual company emissions to specific climate events and the damage being caused. And the UN Secretary General convened what feels like the new league of countries doubling down on climate leadership amidst today’s geopolitical headwinds. 

So, what are the just dimensions of these transition stories? 

• Taxing shipping emissions: This month, many of the world’s largest shipping nations agreed to impose a minimum fee of $100/ton of greenhouse gas emitted - making the shipping industry the first of any sector globally to apply a carbon tax. This is perhaps a surprising breakthrough for an industry that has historically dragged its heels on emissions. Accounting for roughly 2% of all global CO2, the IMO estimates this will raise ~$11-13 billion in annual revenue towards the industry’s net zero pathway. A corresponding Net Zero Fund has also been established to reward low-emission ships and support developing countries so they aren’t left behind with dirty fuels and old ships. This is a world-first opportunity to be seized: to design these resources to address the human rights risks present at every stage of the shipping lifecycle as we also address the social impacts of industrial disruption necessitated by net zero. 

• End-to-end attribution science: A scientific study published in Nature offers, for the first time, a robust framework linking emissions from specific fossil fuel companies to extreme heat events and associated economic losses. The numbers are immense. This could transform climate litigation by enabling courts to assign accountability for damages, something historically seen as too diffuse. With just 36 companies responsible for half of global emissions, the findings underscore the justice implications of climate responsibility - particularly for vulnerable communities bearing the brunt of climate impacts despite minimal contributions. While the science is viable, the politics will be fraught. Policymakers should prepare for a surge in liability claims, and investors should be thinking wisely about fossil fuel exposure.

• A new league for climate leadership? China, the EU, AU, ASEAN, and SIDS doubled down on the clean energy transition in a closed-door session convened by the UN Secretary General and Brazilian President, focused on people-centred and “just” climate action. Also this month we’ve seen China, Spain, and the BRICs all strongly signal continued support for a just transition in the face of the US's withdrawal from the international climate policy architecture. More of this should be expected on the road to COP30 in Brazil and South Africa’s hosting of the G20 - particularly at the “pre-COP” in Germany (June) and climate weeks in Panama (May) and London (June). 

We are seeing that business leaders overwhelmingly still support a green transition, motivated by greater energy security, lower electricity bills, and higher profits. Likewise, energy production tells its own story: China spent 4.4% of its GDP on the energy transition last year and coal in the US fell to its lowest share of power generation ever. And public sentiment is tracking in the same direction: 89% of people around the world want to see action to tackle the climate crisis. 

The evidence then is clear: it is not whether but how industrial transitions are being delivered that must be rigorously negotiated. 

New: the JUST Stories Database expands with 10 new cases of inclusive approaches to transition design

By Tomás Aboim , Junior Research Fellow, Just Transitions, IHRB

Navigating the global transition to a decarbonised future is undoubtedly challenging. Achieving this whilst also meaningfully engaging those most impacted by the shift to net zero is doubly challenging - but also critical. Which is why, back in February, IHRB launched the JUST Stories Database, a first-of-its-kind resource for net zero practitioners to learn from projects that are seeking to do just that. 

Now an additional ten inclusive climate projects have been added, offering new insights from real-world decarbonisation initiatives for governments, businesses, trade unions, and communities to explore. New projects range from a wind project in Kenya that is actively involving the community in job creation and infrastructure design, through to innovative financial instruments supporting coal transition workers in India.

The database now features 60 projects, showcasing the breadth of different approaches available for practitioners to learn from when designing climate action that ensures no one is left behind - with more projects to be added each month.

The Database is part of JUST Stories, a global project dedicated to finding and amplifying real-world examples of people working together to advance just transitions right now.

To explore, visit https://www.just-stories.org/database

Examples of people-centred, finance-driven transitions from around the world

The financial sector is already delivering more inclusively designed climate finance mechanisms than is being acknowledged in headlines and political debates. Some examples from the JUST Stories Database include:

• Linking Renewables Procurement to Local Social-Environmental Needs: Spain’s Just Transition Energy Tenders. Spain is phasing out coal-fired power plants by 2030 - critical for emission reduction, but posing job challenges in coal regions. To manage this, Spain’s Just Transition Institute (ITJ) has developed a tender system that links companies renewable energy grid access to the creation of participatory programmes shaped by local needs. The first tender went to Endesa, which is developing wind and solar jobs, providing training, and investing €60 million in social and environmental initiatives. (Find out more: Just Transition Funding Lab)
• Matchmaking energy transition funders with local needs: South Africa's JET Funding Platform. South Africa has committed to a just energy transition, but smaller community-led projects face challenges accessing international funding. Launched in 2024, the South Africa Just Energy Transition (JET) Funding Platform is a matchmaking service that connects local and international grant funders with small-scale beneficiaries. Early projects include retraining programmes for former mine workers and community solar projects. (Find out more: JET Funding Platform and IHRB/JTFL)
• Repurposing Mineral Funds for a Just Energy Transition: India's Worker Support Facility. India's District Mineral Foundation Funds (DMF) are non-profit trusts which receive a percentage of mining lease funds to help communities affected by mine closures. But gaps in delivery led India to partner with the Asia Development Bank to create the Just Transition Worker Support Facility, to better direct DMF funds to transition programmes and expand coverage to include all impacted coal sector workers. (Find out more: ADB and IHRB/JTFL).

Just transitions in the news

• Joe Lo at Climate Home News reports on the new emissions targets and penalties in the shipping industry.
• Attracta Mooney at The Financial Times covers a report which finds companies are still planning to invest in green energy, despite US policy.
• Paul Pearcy from the British Glass Manufacturers’ Confederation writes for edie.net about the low-carbon opportunities for the UK’s glass industry.
• Ecobusiness carries the news that Climate Finance Asia, Secretariat of the Facility-level Just Transition Working Group, has developed guidelines for banks to embed just transition principles into financing the transition out of coal-fired power plants.
• Harry Stevens writes for the The New York Times - Climate Forward newsletter about China’s energy transition and the role of mineral supply chains.
• Yuan Zheng, a climate strategist at the New Development Bank writes for Green Central Banking, makes the case for the role of carbon markets in funding climate adaptation and mitigation in the Global South.

Recent just transition insights from IHRB

• Read: On 31 March, IHRB and Clifford Chance hosted a roundtable with wind and solar sector actors to share experiences of engagement with communities impacted by their projects. The Costs of Green Conflict project is identifying the costs companies face by overlooking the risk of social resistance to renewables projects, helping make a stronger business case for meaningful engagement. A summary from the roundtable will be published soon but for immediate reflections from IHRB’s Haley St. Dennis, take a look here.
• Explore: A pioneering tool for built environment practitioners to embed human rights in their projects has relaunched in an interactive digital format. Originally launched in 2020 by IHRB, the newly-digitised Dignity by Design Framework was a first-of-its-kind tool for aligning built environment projects with human rights standards, conventions and global frameworks. You can explore the framework - including the 160 case studies - here.
• Register: The Global Forum for Responsible Recruitment (GFRR) is the leading forum for accelerating fair, ethical, and responsible recruitment of migrant workers. The two-day event (May 20–21) brings together businesses, civil society, trade unions, government, and academia to discuss the global agenda on responsible recruitment. This year’s event will focus on the transformative power of technology and data. To join online, register here.

This is the fourth issue of The Just Transitions Brief - a bulletin from the Institute for Human Rights and Business (IHRB). If you enjoyed this brief, please repost to your network or share a comment. And to receive next month’s issue in your inbox, simply click the subscribe button.