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Energy: Just a Transition, or a 'Just' Transition?

Date:
22 April 2024
Category:
Opinions
Topics:
Energy

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By Ayu Pratiwi Muyasyaroh, Research Associate: Established in 1970, Earth Day is commemorated annually on April 22 to raise public awareness on environmental issues. As this date approaches, it is crucial to contemplate the strides made in combating pressing environmental issues such as increased greenhouse gas (GHG) emissions. When it comes to reducing or removing GHG emissions from the atmosphere, the transition away from fossil fuels becomes inevitable. However, it also prompts questions about whether this transition is simply a change (just a transition) or if it's a truly equitable and fair transition (a ‘just’ transition).

The term ‘just transition’ emerged during the 1970s within the US labour movement, with the objective of protecting workers affected by new regulations addressing water and air pollution (Lestari & Inayah, 2023; UNDP, 2022). Moving away from emission-intensive economic sectors affected labour, leading to job losses and reduced opportunities for livelihoods due to the rise of green industries. Hence, history wise, labour concerns take precedence in just transition dialogues. Nonetheless, such a view is bound to attract criticism, leading to conflicts that pit jobs against the environment (people vs planet).

In Indonesia, the concept of just transition began to gain momentum in 2021, when the country explicitly declared its commitment to advance just transitions in the updated version of its nationally determined contributions (NDCs) and Long Term Strategy: Low Carbon & Climate Resilience (LTS-LCRR). Indonesia showed its intent to craft a path toward just transition three years earlier in 2018, when the government endorsed the Silesia Declaration on Just Transition during COP 24 in Katowice, Poland (Christensen & Suharsono, 2022). Nonetheless, there remain prominent contested discussions on what refers to just transition in Indonesia.

The first contestation comes from many stakeholders in Indonesia who view just transition as a sectoral shift in energy, rather than an encompassing transition involving other sectors. The Just Energy Transition Partnership (JETP), the nation’s most ambitious transition package, was established against an energy backdrop. Second, Labour matters fall under the jurisdiction of the Ministry of Manpower, whereas environmental issues are managed by the Ministry of Environment and Forestry. Lack of synergies between governmental agencies have become the bottleneck to establishing a sound coordination that strives to facilitate the needs of labour, as well as addressing environmental issues. It is carried out by promoting transparency, as well as establishing a reliable monitoring, reporting, and evaluation (MRV) system, crucial to advancing just transition strategies in the country (Lestari & Inayah, 2023). Third, just transition is still perceived as a national-level discussion. Local involvement and actions remain limited, leading to the urgency of just transition continuing to be questioned.

To ameliorate such a contestation in interpreting the concept of just transition, it is necessary to identify the narratives that stand out – what refers to just transition from each group stakeholder in Indonesia. From the government, energy justice focusing on ensuring affordable energy access is most evident considering there are more than 200 villages in the country that remained pitch black in 2022 (Muyasyaroh, 2023). Labour unions prioritise safeguarding workers impacted by the rise of green sectors to prevent job losses because of the phasing down of fossil fuels. Meanwhile, businesses are grappling with immediate costs and uncertain future expenses associated with transitioning to low-carbon business models to align with Indonesia's climate policies, all while ensuring profitability. Civil society organisations strive to ensure a just transition will not neglect the socioeconomic needs of communities.

Based on this, there are four steps each stakeholder group can take to promote a just transition in Indonesia. The government can create a thorough roadmap outlining policies, strategic plans, and regulations for various sectors to facilitate a fair transition across the country. Civil society organisations and academics, in collaboration with the government, can lead research projects and initiatives to encourage collaborative efforts and inclusive dialogue among stakeholders. Businesses and labour unions, on the other hand, can work together to develop business models that gradually shift away from fossil fuels toward a low-carbon economy, ensuring the sustainability of both employment and profitability in the midst of surging green industries. Lastly, international organisations and the public as the overwatchers, overseeing if what was promised by each group stakeholder is delivered. In doing so, Indonesia not only stands a better chance of progressing beyond mere transition, but also of ingraining values of fairness and inclusivity, striving to ensure decent work for all, leaving no one behind, and eradicating poverty. This embodies the essence of a just transition (Lestari & Inayah, 2023).

Earth Day is widely recognised as a moment to focus on the planet, environmental concerns, and ecosystems. However, there tends to be poor emphasis on people and socioeconomic factors in environmental advocacy efforts. It is important to remember that the 2030 agenda for sustainable development was founded on five pillars: people, planet, prosperity, peace, and partnership. Neglecting or disregarding any one of these pillars can jeopardise the well-being of the planet and its inhabitants, both now and in the future.

This opinion piece was written by ERIA's Research Associate, Ayu Pratiwi Muyasyaroh, Research Associate, and has been published in Bangkok PostClick here to subscribe to the monthly newsletter.

Disclaimer: The views expressed are purely those of the authors and may not in any circumstances be regarded as stating an official position of the Economic Research Institute for ASEAN and East Asia.

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