Just transition

    ESG & Governance

    Moving to a low-carbon economy in a way that protects the workers and communities who depend on high-carbon industries.

    A fast shift away from coal, oil and gas can cause job losses and economic damage in the regions that depend on them. In India, coal-belt states such as Jharkhand, Chhattisgarh and Odisha are the main example. A just transition plans for retraining, new industries and social support alongside emission cuts. For investors, it is both a social issue and a policy risk: governments may slow the transition to protect jobs, which changes the timing of stranded asset risk.

    Related terms