As the world transitions to renewable energy, the landscape is changing fast for the 65 million people who work in fossil fuels and the communities relying on them for income.

The millions of workers in the energy sector and their communities must be able to take part in decisions that affect their everyday lives. Current plans in the Global South, notably the Just Energy Transition Partnerships (JETPs) in Indonesia, South Africa, and Vietnam, provide billions of dollars in climate finance for an energy transition. However, they do not set aside any funding for community participation.

Engaging communities in climate action makes for a more climate-resilient future. We’re passionate about a truly just transition that co-creates solutions with the affected communities so the process is equitable for all.

A just transition is not only a matter of fairness. Without active support from local leaders and communities, the transition will struggle to make meaningful progress. As Janet Yellen, U.S. Secretary of the Treasury, ‘An energy transition that is not just will simply not work.’

Much remains to be done. Non-renewable fuels, which include coal, oil, and natural gas, still supply about 80 percent of the world’s energy. These fuels are far more prevalent in the Global South, as coal comprises 95 percent of the power sector in South Africa. Phasing out high-carbon fuels in all countries is vital to achieving the emissions reductions needed to limit global warming to 1.5°C in line with the Paris Agreement.

‘Philanthropy is uniquely positioned to put the ‘just’ in just transition by providing funding to support community-driven initiatives that shape action from national governments. Quantifying financial needs and potential benefits will help workers communicate effectively and create the policies they deserve.’

Just transition plans focus on a stable, affordable, and accessible energy supply for both local and global communities. JETPs emphasize the growth of infrastructure that can support communities for years to come. Their initial investments in renewable energy should provide new economic opportunities for workers and prioritize the needs of local communities.

The potential benefits are huge. If current energy transition plans are successful, countries will move the peak emissions date forward to 2030, reducing emissions by 300 megatonnes (MT) in Indonesia, 50-75 MT in South Africa and 200 MT in Vietnam.

Cutting emissions protects people as well as the environment. Clean energy means people in the Global South can breathe cleaner air. And investing in renewables will bring greater energy security for families to light their homes, cook their food, and travel to work or school.

So, how can philanthropy support community participation?

Philanthropy is uniquely positioned to put the ‘just’ in just transition by providing funding to support community-driven initiatives that shape action from national governments. Quantifying financial needs and potential benefits will help workers communicate effectively and create the policies they deserve.

Philanthropy can also ensure the participation of government, labor unions, technology providers, utilities, and civil society. Together, these groups encourage the participatory development of Just Transition policies. They build trust through grantmaking with local partners. And they use insight to develop meaningful partnerships with communities.

Efforts like the Just Transition initiative follow this collaborative approach to support workers and affected communities and help shape decisions in policymaking spaces.

The fund’s aspiration is to show that you can have the energy investment needed for the transition alongside and married with a just transition. We hope it will also be a source of inspiration for other countries and partners navigating an energy transition.

The Community Arts Network (CAN) in South Africa is one such partner. ‘The skills people need now are not simply about advocacy or policy, but how to co-create solutions from below to diversify local economies and offer critical support to workers,’ says Senior Advisor Dr. Kumi Naidoo.

Some argue that Just Transition plans will harm communities by leaving workers without jobs and decreasing energy security. But transitioning to renewable energy is critical to ensuring the planet remains livable for those communities – and families everywhere. What’s needed is a clear plan for reskilling workers and supporting affected communities.

The International Energy Agency (IEA) estimates that ‘virtually all’ of the 1.3 million new energy jobs added between 2019 and 2021 come from clean energy. And while it’s true that many new energy jobs do require industry-specific training, workers employed in fossil fuels already have ‘many of the skills’ needed for renewable energy.

Those most impacted by the energy transition are those who historically do not have a voice in decisions that affect them. But communities are integral to the success of any change in the workforce. They are the workers who support the local and global economy.

Indonesia, South Africa, and Vietnam – along with every nation – need to rapidly decarbonize if we’re going to meet global climate goals. The JETPs in these countries support the cleanest types of energy at a reasonable price. Philanthropy can protect the planet and create a thriving future for all by championing equitable outcomes and funding strategies that put affected communities at the heart of climate action in the Global South.

‘There have been decades of talk about what just transitions mean for people and the economy, but the actual policies are only a few years old, and the needs have grown exponentially,’ says Dr. Sandeep Pai, Research Director at Swaniti Initiative. ‘Funding just transition efforts is the need of the hour.’

Jason Anderson is a Senior Program Director at ClimateWorks Foundation, where he leads the Just Transition program. He started working on climate and clean energy at the U.S. Department of Energy and promoted photovoltaics for rural electrification in Central America.

Sahba Chauhan is a Programme Manager for Society and Governance at the IKEA Foundation. She has focused on building climate action in the most impacted and populated countries of the world at nonprofits like the Oak Foundation and Oxfam International.