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Achieving a just and fair transition in the UK
At a glance
The energy landscape in the UK is undergoing an incredible transformation. At a macroeconomic level, the UK has made significant strides in introducing renewable energy into the system and reducing coal-power electricity. In fact, in 2022, 40 per cent of the UK’s electricity came from renewable sources, according to the London School of Economics and Political Science. The government has set ambitious targets for achieving net-zero emissions by 2050, emphasising the need to decarbonise various sectors, including energy production, transportation, and industry. Investments have been made in developing technologies like carbon capture and storage (CCS) and hydrogen production to reduce emissions further and establish a more sustainable energy infrastructure.
The energy landscape in the UK is undergoing an incredible transformation. At a macroeconomic level, the UK has made significant strides in introducing renewable energy into the system and reducing coal-power electricity.
Despite all these efforts, there is still a lot more to do. The impacts of the energy transition are apparent, but are they felt equally among the various sectors and stakeholders involved? That being the case, it becomes imperative that a just transition should have a comprehensive approach that emphasises fairness and equity and minimises adverse effects on communities and workers.
Setting and reaching targets
The UK has committed to setting clear emissions reduction targets and clean-energy adoption. For instance, the Offshore Wind Sector Deal aims to have up to 50 gigawatts of offshore wind capacity by 2030. Investments in infrastructure, such as expanding the electric vehicle charging network, are underway to support cleaner transportation.
While progress has been made, challenges persist in fully achieving these targets, especially regarding the scale of investments needed and the transition’s impact on communities.
First, there is a mismatch between ambition and the ability to deliver. For example, the national grid is struggling to keep up with connecting renewable generation. The demand is there, and the private sector is ready to bring forward new infrastructure, but grid capacity is a barrier needing urgent investment.
Second, the government is stepping back from some of its earlier commitments. The political landscape, particularly in the context of an upcoming general election, can influence discussions around a just energy transition. Parties may propose varying policies and strategies to address climate and energy issues. Moreover, the potential for a change in government can lead to shifts in energy policies and priorities, impacting the trajectory of the transition.
Third, there is an increasing focus on energy transition at the local or regional level. The next level of net-zero emissions is decarbonising transportation and urban infrastructure, which involves individual businesses and neighbourhoods within cities. This will be tricky to navigate as it will require balancing economic concerns, preventing a higher cost of living, and mitigating the environmental impact of potential delays in hitting targets.
Learning from the past and the present
Lessons from past transitions underscore the importance of proactive planning, engaging with stakeholders and affected communities meaningfully, and providing viable alternatives for workers in declining industries. A just transition in the context of the UK’s energy transition should then emphasise social inclusion, worker retraining, and community support.
A just transition also means de-risking investment profiles. Uncertainty creates risk, so setting clear and stable policies can encourage more investments and the timely deployment of projects. The UK’s approach to a just energy transition is characterised by its legislative commitments to achieve net-zero emissions by 2050 and the establishment of the Committee on Climate Change.
Securing industry buy-in
Just transition has a substantial role at the big-business level, especially in changing the influential players in the economy. If GHD can transition an extensive system at the heart of this, all big-business supply chains will need to transition to meet their goals.
Strategies include incentivising clean-technology adoption, supporting research and development, and fostering partnerships between government, industry, and academia. The success of industry buy-in can be observed in initiatives like the Offshore Wind Sector Deal, where collaboration between government and industry has driven investment and innovation.
Addressing transition costs and equitable distribution
A just transition ensures that communities are not disenfranchised or excluded from the process because of the cost factor. The benefits from the new economic base should reach the community. Transparency and education campaigns are crucial to explaining necessary investments to the public. Sharing long-term benefits, such as reduced emissions and job creation, can help garner public support. Equitable cost distribution can be achieved through progressive policies, subsidies for vulnerable populations, and mechanisms like carbon pricing, ensuring that the burden is shared fairly.
Where GHD can help?
The climate crisis and the need to decarbonise are driving policy, industrial strategy, and business decision-making, and many sectors and locations are struggling with how they can meet net-zero targets. GHD can help clients with their energy-transition journeys, from strategy to project implementation, and make sure the process embraces equity and fairness.
Just transition is about outcomes and the process of achieving these outcomes, and our approach puts people first. We integrate energy solutions, ESG sustainability, industrial and business analysis, economic case, data insights, co-design and ethnographic research techniques to take policy leaders and the business and community lens together on the journey. In our just-transition project with the Scottish government, we demonstrate this expertise by working with the Grangemouth industrial cluster to develop Scotland’s first just-transition plan for an industrial cluster.
Energy transition and just transition require multidisciplinary perspectives, and the GHD model revolves around the core technical skills of energy and transition; advisory skills around policy strategy, community engagement, and visioning; and digital capabilities to bring together new data insights, co-design and ethnographic research.
Where GHD can help?
The climate crisis and the need to decarbonise are driving policy, industrial strategy, and business decision-making, and many sectors and locations are struggling with how they can meet net-zero targets. GHD can help clients with their energy-transition journeys, from strategy to project implementation, and make sure the process embraces equity and fairness.
Just transition is about outcomes and the process of achieving these outcomes, and our approach puts people first. We integrate energy solutions, ESG sustainability, industrial and business analysis, economic case, data insights, co-design and ethnographic research techniques to take policy leaders and the business and community lens together on the journey. In our just-transition project with the Scottish government, we demonstrate this expertise by working with the Grangemouth industrial cluster to develop Scotland’s first just-transition plan for an industrial cluster.
Energy transition and just transition require multidisciplinary perspectives, and the GHD model revolves around the core technical skills of energy and transition; advisory skills around policy strategy, community engagement, and visioning; and digital capabilities to bring together new data insights, co-design and ethnographic research.
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A transformation that goes beyond systems
Just-transition planning is one of the most critical aspects of the net-zero journey that the UK is on, not just because it transforms the economic landscape. The energy transition is also about changing our lives; everything impacts the net-zero journey: our consumption patterns, behaviours, and spending habits. People and businesses are at the heart of this transformation, so a just transition should be a multifaceted endeavour that uses an equitable approach benefitting all communities and stakeholders.