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How Neyen contributed to the formulation of the Just Transition Framework as part of the energy transformation of a major emerging economy in a Just Energy Transition Partnership (JETP).
Neyen collaborated with a development agency to develop a framework guiding the implementation of the “just” aspect of a country’s just energy transition. We did this by analyzing the planned energy transition activities in the country and identifying associated risks, impacts, and mitigation actions.
The development agency needed assistance to conceptualize the Just Transition Framework (JTF) for the country’s Just Energy Transition Partnership with regards to the structure, implementation, and financing.
We engaged closely with the client to determine the key elements of the Just Transition Framework, considering the local context. We also collaborated to develop just transition programs at the national, sub-national, and project levels aimed at delivering on the just transition objectives of the investment plan.
Lastly, we developed three concept notes outlined below:
In order for the Just Transition Framework to be effectively implemented, adequate institutional capacity is needed. This concept note defined how this capacity can be built with the support of a Just Transition Facility, whose responsibilities are to be:
The concept note presented potential pathways for just transition financing in the country. It proposed the concept of a Just Transition Fund, an investment vehicle aiming to provide clarity on how just transition financing is channeled to proper just transition efforts through a defined mechanism for fundraising and management. It also explores other supplementary financing mechanisms to support other efforts.
The Just Transition Framework was completed to serve as a guide for the country to implement the “just” aspect of its just energy transition under JETP support.
With the completion of the Just Transition Framework, the national government is equipped with a systematic approach to mitigate risks and enhance opportunities across areas impacted by JETP activities. The framework will serve as a guiding document for relevant players in the country, particularly the national and subnational governments, to develop transformative actions in response to more systemic impacts from an accelerated energy transition.
In defining how to ensure that the country’s energy transition is ‘just’, we’ve seen the existing project development paradigm abide by country regulations and lenders’ safeguards to address the negative impacts of the project. Cross-sectoral just transition efforts are needed to supplement these existing measures to bring more transformative change to the country.