After decades of delay, the move from burning fossil fuels to renewables is firmly underway – but the fairness of this unfolding transition is not inevitable. In fact, there is a real danger the world will simply swap one exploitative and unjust system for another. Natalie Shortall introduces a new Oxfam paper that calls on the UK to get wholeheartedly behind a “just transition”.
The climate crisis is driving the world to switch to renewable energy, a change that offers a huge opportunity to remake our economy and society. But what kind of world do want to build? Will we replicate the status quo, where the super-rich grab an ever-larger share of the world’s wealth? Where ordinary people remain shut out of decision-making and can’t pay energy bills? Where communities get thrown off their land by companies mining the earth’s natural resources? Where ever-deepening cuts to government aid budgets are the new norm?
We don’t have to swap one extractive and exploitative system for another. That’s why today Oxfam is publishing a paper calling on the UK government to commit wholeheartedly to a clear plan for a “just transition”, one that ensures no one is left behind in the shift to a greener future.
What is a ‘just transition’?
The term “just transition” has its roots in workers’ rights: originally used to describe the need to ensure that workers are protected as industries shift toward low-carbon practices. But the concept of a just transition has evolved beyond that rightful aim to something much broader: today, it is used to describe both the struggle for workers’ rights in a shifting economy, and the historic chance the transition offers to build a new and fairer economy and society. Oxfam is very much part of this movement: one that insists the transition cannot leave intact the very systems that entrenched poverty, injustice and climate breakdown in the first place.
Climate impacts are not equal…
The just transition movement calls on governments to acknowledge and respond to the fact that the climate crisis is deepening existing inequalities, hitting hardest those already marginalised by factors such as gender, race, geography, disability, or age. For example, women make up over 80% of people displaced by climate impacts. This is why addressing gender and other inequalities in response to the climate crisis is so essential. These inequalities exist everywhere, but communities in the lowest-income countries – who are least responsible for emissions – are bearing the heaviest burden.
But climate inequality exists within high-income countries too. For example, people with disabilities or long-term health conditions are not only disproportionately represented among those living in poverty, but are also among the most exposed to rising energy costs – particularly those who rely on powered medical equipment. They also face heightened risks from climate disasters like floods and storms, which can be especially dangerous for those with mobility challenges or limited access to emergency support.
…and nor are the impacts caused by the transition
The transition itself risks causing further harm and injustice to many groups. Communities experiencing poverty risk being left behind. The high upfront costs of energy-saving technologies, for instance, make them inaccessible to many who would benefit the most.
As demand for critical minerals – the raw materials essential for low-carbon technologies which we will all depend on – continues to grow, we also need to think about the impact on places and communities where they are mined. Over half of these minerals are found on Indigenous lands. Communities there must have their rights fully respected, including the fundamental right to say no to mining projects that threaten their health, livelihoods or way of life. Such impacts across the globe show how any commitment to justice must extend far beyond the UK: recognising that no country transitions in isolation.
To respond to the climate emergency, the transition must be fast, to prevent yet more devastation across the globe; and it must be fair, enabling all people have a voice in and benefit from the policies that affect them. But a truly just transition must also be transformative and feminist. What does that mean? It means a rethink of the obsession with GDP growth at all costs; a commitment to invest in and value the care work that enhances everyone’s wellbeing – but is not even counted in GDP; and fairer taxation so the transition is not only adequately funded but also reverses the spiral in economic inequality.
Valuing care and moving beyond GDP
The relentless pursuit of GDP growth – particularly for the Global North – has driven the climate crisis while consistently creating winners and losers. Beyond fuelling climate breakdown, GDP growth has also deepened gender inequalities as it does not count unpaid care work or work in the informal economy, both of which are disproportionately carried out by women, particularly those living in poverty. So, at the heart of a just transition must be a commitment to invest in and value this care work – for people, communities and the earth’s natural resources. Such a shift is not just aspirational: Latin American countries are already leading the way in investing in unpaid care and the governments of Scotland and Wales are edging closer to prioritising wellbeing as a measure of economic progress.
Fairer tax can fund a just transition and tackle rampant inequality
Last year, UK billionaires saw their wealth grow by £35 million every day, reaching £182 billion – and across the world, extreme wealth is surging, with five trillionaires set to emerge within the next decade. Meanwhile, millions are being pushed further into hardship, and we’re repeatedly told there isn’t enough money to address the urgent crises we face.
That’s why our new paper calls for tax systems to be transformed, ensuring the shift to a greener future tackles inequality rather than deepening it. And of course, it is only fair that the rich contribute more as they are responsible for the lion’s share of emissions. Put simply, the richest individuals and biggest polluters must pay their fair share and governments must address the entrenched economic inequality which is currently preventing a just transition.
Is the UK doing enough on the just transition?
Since taking office, the current UK Labour government has introduced some reforms such as tackling fuel poverty and investing in community energy. While welcome, these efforts barely scratch the surface. And while it has recognised the need for a just transition for workers, it is yet to show how the transition can deliver fairness and prosperity for all. It has also deepened cuts to the aid budget, which not only threatens to undermine the UK’s climate finance contributions, but will exacerbate global inequality and make us all less safe. The government lacks a bold, overarching vision for justice – something essential for true strategic leadership and long-term progress, rather than just short-term fixes. It also continues to prioritise GDP growth at all costs, including at the expense of the climate.
For example, despite the huge emissions caused by air travel, the government recently approved further airport expansion. While it did introduce a tax increase on private jets, the rise was insignificant compared to what super-rich private jet users could afford to pay. At the same time, it has softened its stance on “non-doms”, allowing the super-rich to keep avoiding their fair share of taxes.
What we are asking for
Our new paper demands a step change in UK policy on a just transition. You can read the full list of recommendations in the paper but they include asking the UK government to:
- Create a just transition plan – one that shares the costs and benefits equitably and contributes to a fairer, greener and more caring economy. That includes meaningful participation of communities in shaping policies that affect them.
- Fund the transition fairly – including by taxing extreme wealth and profit, and highly polluting activities, to help finance the transition and reduce inequality.
- Rethink its economic priorities – including moving beyond the goal of GDP growth, to instead target planetary health, equality and well-being and invest in the care work that supports us all.
- Remove barriers to a globally just transition – including pushing for fairer rules on tax, trade and debt, treating just transitions as a global issue, not just a domestic one and urgently reversing the harmful cuts to the UK’s aid budget.
The urgent need to move from a fossil fuel-driven, unequal economy to a fairer, renewable future has never been greater – and the solutions are within reach. But realising this future demands bold action and a willingness to disrupt the status quo. The time for half-measures is over. With the right policies and collective will, we can build a fairer, greener world for generations to come.
Author
Read the full paper: Fast, Fair, Funded and Feminist: A pathway to a just and transformative climate transition within and beyond the UK