After South Africa, Indonesia, and Vietnam, India is considered the next candidate for a JET-Partnership. India’s G-20 presidency could potentially be an opportune moment to forge a deal.
About Just Energy Transition Partnership (JET-P):
- It is a mechanism for multilateral financing by developed countries to support an energy transition in developing countries.
- It aims to reduce emissions in the energy sector and accelerate the coal phase-out.
- Transition describes the gradual movement towards lower carbon technologies, while ‘Just’ qualifies that this transition will not negatively impact society, jobs and livelihoods.
- The United Kingdom (UK), the United States (US), France, Germany, and the European Union (EU) launched it at COP26 in Glasgow with their support.
- Senegal has become the fourth country after South Africa, Indonesia and Vietnam to sign the JET-P deal, with the International Partners Group comprising France, Germany, the European Union, the United Kingdom and Canada.
- In response to the request for consent, India refused, stating that coal cannot be singled out as a polluting fuel and emphasizing that energy transition talks need to take place on equal terms.
What is Just Energy Transition?
- Just Energy Transition refers to the shift from reliance on non-renewable, fossil fuel-based energy sources to renewable, clean energy sources in order to mitigate the impacts of climate change and promote sustainability.
- The transition to a just energy system seeks to ensure that access to energy is equitable and benefits all members of society, rather than primarily benefiting corporations and the wealthy.
- This includes promoting renewable energy sources such as wind and solar, as well as energy efficiency measures and the development of energy storage solutions.
- Among the three JET-P deals signed so far, only South Africa’s deal mentions a ‘just’ component – funding reskilling and alternative employment opportunities in the coal mining regions.
- The other two JET-Ps (Indonesia and Vietnam) are focused on mitigation finance for sector-specific transitions.
What are the Issues with the Just Energy Transition?
Affect Near-term Fossil-Dependent Jobs:
- The transition to a more sustainable energy mix can impact workers who are currently employed in the fossil fuel industry.
- The shift away from fossil fuels may result in job losses, which can be disruptive for affected communities and workers.
Disrupt Forms of Future Energy Access:
- The transition to a cleaner energy mix may disrupt traditional forms of energy access, particularly in developing countries where access to reliable electricity remains limited.
- The cost and infrastructure requirements of new energy sources, such as wind and solar power, may be challenging to implement in areas with limited resources.
Shrink the State’s Capacity to Spend on Welfare Programmes:
- As the government invests in new energy infrastructure and technology, there may be less funding available for programs such as healthcare, education, and housing assistance.
- This can result in reduced support for vulnerable populations and potentially worsen existing socio-economic disparities.
- Despite the long-term benefits, the initial cost of transitioning to renewable energy can be higher, making it a challenge for some communities, particularly those with limited financial resources.
- Renewable energy sources like wind and solar must be stored for use during times when the sun isn’t shining or the wind isn’t blowing because they are not always available.
- The transition to renewable energy sources requires significant investments in energy infrastructure.
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Just Energy Transition Partnership (JET-P)