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Navigating A Just Transition: Enhancing Fairness And Equity In The Just Energy Transition Partnership For Global Coal-reliant Countries

Policy Brief Wildan Al Kautsar, Arifa Tariga Imani, Fikri Muhammad, Alin Halimatussadiah

The connection between burning coal in power plants and injustice to local communities is evident. As the urgency to avoid a climate catastrophe grows, the call to “end coal” has become pivotal in climate movements and policies. However, the transition’s broader socio-economic impacts cannot be ignored, especially in the Global South, where coal reliance persists. By 2022, Southern countries led 70 percent of global coal production, with India, Indonesia, and China producing over 6,057 million metric tons annually. These regions face significant challenges transitioning away from coal, including risking exacerbating existing injustices if not managed appropriately. Thus, a just transition is crucial, focusing on enhancing impacted communities’ adaptive capacity. The Just Energy Transition Partnership (JETP) aims to expedite such a transition through multilateral financing. So far, four nations (two of them members of G20) have entered into JETPs. While the mechanism is unprecedented, it’s not without criticism. One central concern, which will be the focus of this brief, deals with justice where is not addressed adequately. This policy brief addresses this important issue by briefly assessing the available comprehensive investment and policy plan, seeking to clarify elements that must be considered in order to improve the fairness and equitability of JETP.