Depending on who you are,
a carbon-free future means different things.
Some of us see a clean and sustainable future
that is no longer suffering from a climate crisis.
But some of us see lost jobs,
dead industries, and a future of economic uncertainty.
We can't have this conversation
without having this conversation.
We need to reach a green economy
that truly works for everyone, not just for the millions
of people who work in fossil fuel industries like coal,
but for the billions sustained by carbon economy.
Like you and me.
We've made huge economic pivots before.
But what will it take to make this next one
a fair and just transition
that doesn't leave anyone behind?
Another climate buzzword, just transition.
Just energy transition.
Just transition.
But what does it really mean?
The climate crisis has made it very, very clear.
We need to phase out fossil fuels everywhere and fast,
and that means rebuilding our entire energy sector.
A sector that currently employs 65 million people globally.
That's 2% of the world economy.
But what happens to all these people?
Well, employment in coal is already declining.
And as we move towards clean energy and clean jobs,
we need to make sure that the transition is just
and that people don't get left behind.
We're throwing this term around, just.
So let's try and really nail down what it means.
It means that the big benefits
of transitioning to a green economy are shared by everyone,
especially those who stand to lose the most economically.
In Alberta, Canada, for example,
the coal industry powered more
than half of its energy supply in 2015.
Now, the government knew that phasing out dirty energy
would impact a lot of jobs.
So they created a transition fund
that would help coal workers relocate for new jobs,
learn new career skills, fund new businesses,
and transition to retirement.
But a just transition isn't just about assisting communities
within richer nations who, frankly,
can afford to phase out fossil fuels.
It's also a global issue that addresses the need for support
between countries, because, let's face it,
millions of people are trapped in a system
that rich countries created.
These countries have benefited
from historic climate injustice,
and now they have a responsibility to help others
create their vision of a green and just future.
Here's the good news.
The global community is beginning to follow through.
And we've seen some amazing examples
over the last few years.
All eyes have been on South Africa's
ambitious efforts to decarbonize their economy.
Depending on how it goes,
their plan could be a blueprint for other countries.
The coal industry in South Africa is huge.
It's the world's fifth largest exporter,
and it employs over 200,000 people.
It accounts for almost 90% of the country's electricity.
But the government knew that it wasn't sustainable,
and given their history of inequality,
they knew that decarbonizing needed to go
hand in hand with economic and social recovery.
At COP21 in Paris,
South Africa was the only country to note the importance
of a just transition in their national plants.
At COP26 in Glasgow, just a few years later.
The publishing of the just transition framework
will enable South Africa to move ahead
with reaping the benefits of renewable energy.
It was a key moment where historic emitters
acknowledged their responsibility
to fund energy transitions in poorer nations.
And for South Africa, it was an $8.5 billion pledge.
Everyone is watching this.
South Africa is potentially a bit of a poster child.
Okay.
For the just transition.
This money will help fund training programs
for workers to develop new skills,
bridge funds to replace tax revenues,
provide capital resources, and so, so much more.
In COP27 in Egypt, yet more progress was made.
Today here in Sharm el-Sheikh,
we established the first ever dedicated fund
for loss and damage.
A huge step forward in global north countries
agreeing to pay for damages from climate impacts
in global south countries.
But there are some concerns here.
One in particular that is really quite problematic,
the nature and quality of the funding that's pledged.
Ramaphosa emphasized that additional funding
should not worsen countries' debts burdens.
A lot of money is in the form of loans.
It's a trend that's been going on
for a while in climate financing.
Now, these loans could put the recipient countries
in a lot of debt over time,
and the value is much less than you think it is.
For example, $60 billion in loans
had an actual value of only 22.5 billion.
The money will likely end up going to private businesses
and banks, and they're also just simply not enough money.
According to this new plan, South Africa still needs
about $98 billion to fund the transition.
That's just nowhere near enough.
However, there's good reason to be excited here.
The South Africa Partnership is already becoming a model
for other countries.
The Indonesian government officially
launched the Just Energy Transition Partnership,
which will help Indonesia shift towards renewable energy.
The pledge, $20 billion.
$20 billion.
This is really good progress,
progress that will help pave the way
towards our global climate goals.
But this model still needs some work,
because there is a moral imperative
for historic emitters to assist other countries
to decarbonize.
Not through loans and bank guarantees,
but through grants with no strings attached.
Grants that allow lower income countries to focus
on building clean energy industries
and look after everyone in the process.
We are used to hearing the term net zero
with a date next to it,
and we are racing to see who can get there faster.
But while our technology is moving fast,
our politics really isn't.
Because as we rush to meet our climate goals,
if we don't center justice at the heart of every transition,
we risk leaving a lot of people behind.
There's a beautiful way to look at this transition
as something so much bigger than a green economy.
Instead of thinking about it as a just transition,
perhaps it's better to look at it
as a transition to justice.