The concept of a just transition has moved from the margins of climate debate to the heart of global policymaking. It recognises that climate action, if not carefully managed, risks deepening inequality and leaving behind the very communities most affected by both climate change and the economic transformations designed to address it.
At its core, a just transition seeks to align environmental ambition with social justice — protecting workers, empowering communities and creating decent jobs while reducing emissions.
The UN Global Compact defines it as a framework that ensures “environmentally sustainable economies are promoted in a way that is as fair and inclusive as possible,” involving governments, businesses, workers, and civil society in dialogue and shared action.
Momentum on this agenda is building in the lead-up to COP30 in Belém, Brazil, where negotiators are expected to strengthen the Just Transition Work Programme (JTWP) established at COP27 and advanced at COP28. The COP30 Presidency has signalled that inclusive development, green jobs and workforce reskilling will be among its priorities, with an emphasis on ensuring that the energy transition creates prosperity rather than precarity.
Yet achieving a just transition is not a single policy outcome but a multi-dimensional process. It requires coherent action across labour markets, finance and supply chains.
In the industrial and energy sectors, the concept of a just transition extends to critical mineral extraction, a cornerstone of clean technology supply chains. The Democratic Republic of the Congo (DRC), which supplies more than 70% of the world’s cobalt, illustrates both the promise and peril of this transition.
The 2023 Global Slavery Index (GSI) estimates that on any given day in 2021, there were 407,000 people living in modern slavery in the DRC.
The Democratic Republic of Congo
Percentage of the world's cobalt that comes from the DRC.
Number of people estimated to be living in slavery in the DRC.
While global demand for transition minerals could create vast economic opportunities, it also risks perpetuating exploitation, unsafe labour conditions and ecological harm if governance frameworks fail to ensure equitable benefit-sharing.
Beyond industrial systems, the just transition also intersects with the realities of conflict, displacement and inequality.
In Palestine, years of occupation, water scarcity and restricted energy access have amplified climate vulnerability. At COP29, Palestinian representatives highlighted how climate justice cannot be divorced from political justice, arguing that adaptation and mitigation efforts must account for the lived realities of people under systemic constraint.
Likewise, in Sudan, conflict and climate stress have converged to create one of the world’s most severe humanitarian crises. Desertification, erratic rainfall and resource scarcity are fuelling displacement and instability.
These cases highlight that a just transition cannot be limited to decarbonisation metrics. It must be people-centred, grounded in rights, and inclusive of those on the frontlines of crisis.
For millions in the Global South, particularly in conflict or resource-dependent economies, the transition will only be “just” if it delivers access to energy, stable livelihoods and dignity.
Finance remains the central enabler of this agenda. The Just Transition Finance Lab estimates that global financial systems must be restructured to direct both public and private investment toward equitable low-carbon development.
For businesses, the imperative is clear. Companies must not only decarbonise their operations but also integrate just transition principles into their supply chains, workforce policies and investment decisions.
This includes ensuring decent work standards, supporting local skills development, engaging with trade unions, and collaborating with Indigenous and community leaders to uphold rights and land stewardship.
The UN Global Compact’s guidance urges businesses to embed just transition goals within their climate strategies and disclosures, ensuring that corporate decarbonisation contributes to broader societal resilience.