Developed nations including the UK, Norway, Canada, Australia and the EU are pushing back on a proposal at COP30 to create a just transition mechanism to bolster and unify efforts to help workers and communities adversely affected by the shift away from fossil fuels, the plan’s backers say.
Championed by civil society activists who have dubbed it the “Belém Action Mechanism” (BAM), the proposal to establish a dedicated global facility won backing at the climate talks from the largest group of developing nations, the G77+China. Under the proposal, developing countries would receive financial and technical assistance aimed at ensuring a fair transition to clean energy.
A global green shift is expected to change the nature of employment in sectors such as coal mines, oil refineries, construction and car factories. Jobs will be lost in high-carbon industries and new ones created in clean technology supply chains, bringing both threats and opportunities for the affected workers and their families and communities.
Activists say establishing an institutional framework is vital to making sure global climate action to cut emissions does not end up leaving anyone behind.
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But a significant number of developed countries are “generally not being positive about the mechanism”, said Anabella Rosemberg, senior advisor on just transition at Climate Action Network International, adding that they did not see the need for a coordination unit on just transition policies.
“Basically these countries do not want any new or innovative way of bringing the just transition community together,” Rosemberg said, referring to the proposals for the mechanism aimed at facilitating global dialogue, sharing best practice and informing new policy around the world.
The draft text on the UN’s Just Transition Work Programme released on Tuesday included several alternatives to the mechanism, including an action plan and a policy toolbox to help countries advance their just transition plans and turn principles into concrete national strategies.
UN Secretary-General António Guterres welcomed the calls for the mechanism, as well as the “growing coalition asking for clarity on the transition away from fossil fuels”.
“Governments must support workers and communities still relying on coal, oil and gas with training, protection and new opportunities to go on with their lives in a positive way,” he said at COP30 on Thursday.
Sharing know-how, and financing
Supporters of the BAM proposal say just transition efforts are currently fragmented and would benefit from having an institutional mechanism to pull together funding and policymaking experiences, as well as fostering cooperation between different agencies and financial institutions working to support just transition.
“What we are trying to do with the mechanism is to really help the countries that want to put [just transition] strategies in place access much faster the capacity and the financing that is out there,” Rosemberg said.
Bert De Wel, global climate policy coordinator at the International Trade Union Confederation (ITUC), said a mechanism could help countries introduce just transition policies “with a strong focus on labour rights, trade union participation and social dialogue”.
Integrate just transition instead, says Norway
Some opponents of creating a new mechanism say just transition efforts would be better advanced by strengthening existing institutions rather than building a new one.
“This is most efficient because then the committees can start working without delay,” a spokesperson from the Norwegian Ministry for Climate and Environment told Climate Home News, adding that existing bodies under the Paris Agreement already cover most of the topics in the just transition draft decision, including finance, technology development and transfer, and capacity building
“It takes many years to develop a new mechanism,” the spokesperson said, even if countries can overcome their current differences over its potential scope and mandate. In the meantime, Norway supports developing guidance for existing bodies to better integrate just transition into their work.
“Not a fund”
The fear that a BAM could become another source of financial demands is one of the biggest concerns for the EU and developed countries, De Wel said. But while public finance is needed to roll out a just transition, he said “this doesn’t mean that these issues need to be sourced in the just transition mechanism”.
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He said the mechanism would seek to get multilateral development banks and other funders on board to make sure that money is being spent in a way that “respects labour criteria” and does not stop the Global South accessing resources that are already available.
Rosemberg said there have been questions around whether the mechanism would be a new fund but the civil society and G77 proposals clarify that the two things are not the same. “This is much more a facility for accelerating delivery of finance that already exists than a new fund,” she said.
Rosemberg said, however, that what would need to be funded is the operation of the BAM, which would cost about $10 million per year. This money would support research and the setting up of a secretariat, Kuda Manjojo of Power Shift Africa told Climate Home.
The post Rich nations push back on calls for new just transition mechanism appeared first on Climate Home News.
Rich nations push back on calls for new just transition mechanism
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From our collaborating partner “Living on Earth,” public radio’s environmental news magazine, an interview by host Steve Curwood with Michael Klare, an emeritus professor of peace and security studies at Hampshire College.
In a Q&A with Climate Home News, the head of sustainability at global lighting company Signify explains how the firm is doubling down on its efforts to protect the climate and strengthen resilience.
In March, Signify launched its latest corporate sustainability programme, “Brighter Lives, Better World 2030”.
The programme is the third iteration of a project that started in 2016, aimed at shifting how the company – and its customers – can reduce their environmental impact.
It centres on enhanced targets to improve energy efficiency, cut greenhouse gas emissions and promote the circular economy. In addition, Signify has set itself a challenging goal to source 41% of its revenue from solutions “that support benefits beyond illumination” by the end of 2030, up from 31% in 2024. Those benefits include efficient food production and increased access to solar lighting.
Signify is aiming to save 60 terawatt hours (TWh) of electricity for its customers; achieve a 35% reduction in the CO2 emissions intensity of its portfolio; and grow its circular product business from 10% to 27.5% of revenue.
Climate Home News spoke with the company’s global head of sustainability, Maurice Loosschilder, to find out how the Netherlands-based multinational plans to reach its targets despite a tough political landscape for green action.
Q: How does Signify’s new sustainability programme build on lessons learned from previous versions?
A: If we look back a little bit, it is a natural next step. Signify [formerly Philips Lighting] became a standalone company roughly 10 years ago and in 2016 we launched our first “Brighter Lives, Better World 2020” programme at the same time.
The first programme mirrored developments in the lighting industry and was very much based on our own operations: reaching 100% renewable electricity, zero waste to landfill in our manufacturing facilities, increasing the energy efficiency in our own portfolio.
Since then, we’ve moved on to think about our entire value chain and the wider social contributions we want our work to be making. But we still want to be thinking about how to improve our own business. Our continued target to double the amount of women in leadership positions is an example of that.
Q: Looking at the political climate, both in the US and Europe, there isn’t the same concern for environmental issues as there was a few years ago. Many corporates are perceived to be rolling back on their environmental commitments. How are you as a company navigating some of these challenges?
A: This is not something new. If we look back on the last five to 10 years, we’ve seen a lot of disruption and change in the market. We’ve had a global pandemic, supply chain disruptions, energy insecurity. At the same time we’ve seen the increased impacts of climate change and all of that is changing the dynamics of doing business right now.
I think these changes have really tested resilience – the resilience of companies, the resilience of people, the resilience of societies. We really believe that resilience is becoming more and more important to businesses right now. And if you look at what a resilient company is, it is one that decarbonises faster, invests in people, invests in circular solutions and makes its business model more circular. And that’s exactly what we have focused on. It’s about making sure we can cope, and help our customers cope, with changing market circumstances and the geopolitical tensions we see in the world.
Q: Turning to your own commitments, do you feel you have set the right balance between ambitious and achievable?
A: Yes, we strongly believe this programme is the right one for us and our customers, and has been informed by a thorough double-materiality assessment. It is built on three pillars: benefits beyond illumination, energy efficiency and resource efficiency. These are supported by new initiatives, such as Signify Circle, which will support professional customers with their circular economy ambitions.
If we just look at the first pillar, it’s about the positive impact that lighting brings, in terms of productivity, in terms of safety, in terms of food availability, health and well-being, and now we have added solar in there. This is what we mean by “benefits beyond illumination”.
Q: If we take one of your targets to save 60 TWh of electricity for your customers, that seems quite hard to work out. Do you find data availability to be an issue?
A: Data is a challenge in sustainability, but we have been measuring our avoided emissions for years, so we know the data requirements behind it. We’ve done all our homework and with that we have set this target.
The 60 TWh figure is about the annual electricity usage of Switzerland so it is a substantial amount. But it also reflects the role that lighting plays in general. If you look at a typical city, street lighting alone accounts for about 40% of electricity use. So the potential is enormous.
The International Energy Agency reports that about 8% of global electricity use comes from lighting, and this translates into 2% of global greenhouse gas emissions. That’s really significant and why the opportunity here is so big.
Q: How has the new programme been informed by the UN’s Sustainable Development Goals (SDGs)?
A: Our strategic compass is the Sustainable Development Goals. We committed to six SDGs in the previous programme. The new one has been expanded to cover eight and we conducted a mapping exercise for each of the commitments. I’m hoping that, by the end of this programme, we will see a new version of the SDGs to replace the current goals when they expire in 2030. We remain committed to making our contribution to the SDGs.
Q: Are you seeing higher demand for circular products? What is it that attracts businesses to that option?
A: Yes, we do see an increased demand. For example, we see greater interest in “remanufacturing”, which is a circular business model where we take down the lighting, send it back to our manufacturing site, and upgrade it to the latest technology, but keep the majority of the hardware intact.
I think customers are becoming more and more aware of the fact that regulation is pushing resource efficiency on businesses. And in some countries we see incentives to use circular products, and penalties around sending certain material to landfill. More businesses are becoming aware of this and we strongly believe there is a market for circular products.
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Q: Do you have customers that are facing real resource pressures, in terms of scarcity, increased costs or supply chain constraints that are making them think more about circular issues?
A: The whole market is currently impacted by geopolitical tensions and the disruptions that come as a result. Light as a Service, for example, could be a way for businesses to de-risk because there is no capital expenditure involved. Customers see real value in only having to pay to keep it running.
If we look longer term, then resource and material efficiency is something the whole world should be thinking more about. How can we decouple economic growth from the increased use of natural resources? We believe the circular economy is the answer.
This interview has been shortened and edited for clarity.
Adam Wentworth is a freelance writer based in Brighton, UK.
The post Signify: “We believe resilience is becoming more important to businesses right now” appeared first on Climate Home News.
Signify: “We believe resilience is becoming more important to businesses right now”
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