Just Transition Framework - Introduction

 It does this by:

• Describing a vision of a future Wales.
• Explaining the three pillars that underpin a just transition.
• Setting out the guiding principles that should be followed when planning for the transition to net zero.
• Providing guidance to support those driving the change.

In Wales, a just transition means achieving net zero carbon emissions by 2050 in a way that distributes the benefits and costs fairly across Welsh society. The aim of a just transition is to deliver a fairer, greener and more prosperous future in partnership with businesses, workers and communities across Wales. The Welsh Government’s approach to a just transition builds on legally binding commitments to future generations, equality, social partnership and fair work.

The need to decarbonise our economy has never been more urgent. Decarbonisation and building resilience to the impacts of climate change are major policy challenges. The impacts of climate change and decarbonisation will impact different sectors, organisations, communities, and individuals in different ways.

Decarbonising our economy in a way that delivers for all adds to this complexity. The Welsh Government has legislated for a target of net zero carbon emissions by 2050 and it is essential this transition is fair. In Net Zero Wales (2021), the Welsh Government re-stated its commitment to deliver a ‘just transition’ away from the fossil fuel-driven economy of the past to a new low-carbon future, learning lessons from previous transitions and building a future for Wales that supports a wellbeing economy [Wellbeing Economy Governments (WEGO)].

Delivering a just transition will mean developing a clearer understanding of the potential impacts that decarbonising the Welsh economy will have. This will in turn support us in maximising the benefits and mitigating the negative or unintended impacts. Planning for a just transition means thinking about decarbonisation as a way to deliver our commitment to social justice, consistent with our commitment to fair work and social partnership and across our National Equality Objectives. 

The Welsh Government’s approach to planning for a just transition is heavily influenced by legislative requirements including the Well-being of Future Generations (Wales) Act 2015 (the WFG Act) and the Public Sector Equality Duty. This legislation helps us ensure that action on climate is taken in a way that avoids creating or exacerbating inequalities and supports a systems approach to understanding and addressing risks and opportunities. Although most commonly used in the context of reducing carbon emissions, just transition considerations are equally applicable in efforts to adapt to climate change. As the Climate Change Committee advise [THECCC.ORG.UK], effective and fair adaptation requires distributional effects to be considered as adaptation actions can have unequal effects, and fairness in adaptation is strongly linked to the concept of a just transition. 

People will be at the heart of the transition; it is therefore essential we maintain and further build on the involvement of a broad range of stakeholders and partners in our approach to decarbonisation. Changes in businesses, markets, and technology are shaping the economy on the journey to net zero. Over Wales’ Carbon Budget 2 (2021-2025) we have developed our evidence base and further improved our understanding of how the transition will impact Wales and how our consumption choices impact other parts of the world.

A Vision for a Net Zero Wales in 2050 

It is 2050 and we have transitioned to net zero and have delivered on our commitments to future generations, making Wales a fairer, greener and more prosperous place to live for all. 

The transition was delivered in partnership between public, private, and third sectors, and with our communities – from the post-industrial valleys to the rural heartlands of Wales. Businesses and industries of Wales are thriving in a green, circular economy, due to long-term thinking and collaboration, which ensured our communities and employers were prepared for the transition and have maximised opportunities for the jobs of the future. 

Existing and future generations are equipped with the right skills for resilient, well-paid jobs in a net zero economy. Fair work practices are embedded across all sectors, promoting equality, diversity, and inclusion. Workers are empowered, represented, and supported in healthy, inclusive workplaces where rights are respected and opportunities for progression are accessible to all.

We have responded to, and continue to address,  the climate and biodiversity emergencies facing Wales, including increased flooding, coastal erosion, and biodiversity loss. Our land and marine environments are now better protected and restored, supporting both nature and livelihoods – from sustainable farming to renewable energy production. There are vital economic opportunities for rural communities, where producers are able to earn a good living and provide quality food for the people of Wales. 

Wales has adapted to demographic changes, including an ageing population, by investing in care services, digital connectivity, and local economies. Everyone is supported to thrive in their communities, with access to green jobs, affordable housing, and lifelong learning. We ensured that the Welsh language and culture are not only protected but thrive as part of a sustainable future. Communities are empowered to shape decisions that affect them, and the voices of rural, coastal, and urban areas are equally valued.

The transition has also helped improve connectivity, providing viable transport options to the people of Wales and tackling transport poverty. It helped achieve an equitable distribution of costs and benefits, with costs of the transition not falling disproportionately on those least able to afford the change. 

Our climate action has improved public health and well-being, reducing fuel poverty through energy-efficient homes, promoting active travel, and supporting access to healthy, local food. These changes have eased pressure on health and social care systems and reduced inequalities across Wales.

The focus on a circular economy, reducing our consumption of goods and materials, has reduced our global impact so that Wales is using its fair share of resources.

The people of Wales were at the forefront of understanding the impact on climate and nature of the way we lived our lives and make the right decisions for themselves, their community and the planet. After unjust transitions experienced by Wales in the previous century, we are proud in making Wales a world leader in the fair transition to Net Zero. We have been able to use our experiences to help those on the front-line of climate change across the world.

The Just Transition Framework sets out the Welsh Government’s approach to achieving a just transition to net zero by 2050. The framework is aimed at those taking action to decarbonise the economy, which includes all levels of government, businesses, third sector, and community-level. The Welsh Government is encouraging these actors to embed the framework in their current policy development and decision-making processes to help reduce further inequalities and improve outcomes for those most affected by the transition. 

The framework describes three pillars which inform how policies and projects should be developed, and seven guiding principles that should be followed to ensure outcomes are fair for both people and planet.

Building on our previous work and research on international approaches [WCPP.ORG.UK], the Welsh Government held a Call for Evidence on a Just Transition between December 2022 and March 2023. The Call sought to understand the potential negative impacts, benefits and best practices associated with a just transition towards a net zero economy in Wales. This included how we apply and integrate learning and knowledge throughout the decisions of the Welsh Government and partners to improve our understanding of the impacts and opportunities for Wales and requirements to support the transition.

We received 117 responses to the Call for Evidence and the information provided has helped shape the draft framework, which was subject to formal consultation between December 2023 and March 2024. The 106 further responses received informed this final framework. As part of the consultation, we held climate conversations with groups as part of our approach to Wales Climate Week 2023. The question posed was “How do we tackle climate change in a fair way?” with the output presented as part of the consultation documentation. 

Based on research and the consultation process, we developed the Just Transition Framework, which consists of:

1. Three pillars that are essential elements of a just transition.
   
   • Analysing Impacts and Opportunities
   • Mobilising Stakeholders and Coordinating a Collective Response
   • Integrating the Just Transition into Decision-making
    
2. Seven guiding principles aligned to the Well-being of Future Generations Act.
   
   •  Invest in Education, Skills and a Low-Carbon Economy
   •  Adapt to Climate Change and Enhance the Natural Environment
   •  Improve Health and Well-being through Climate Action
   •  Champion Equality and Rights and Share the Costs and Benefits Fairly
   •  Involve Communities at the Earliest Stages and Throughout
   •  Support and Enhance the Culture of Wales and the Welsh Language
   •  Consider the Global Impacts on People and Planet
    
3. Guidance to help shape the transition to net zero at multiple levels.