Promoting sustainable and inclusive development: Just transition perspectives in Latin America and the Caribbean

Achieving the goals of the Paris Agreement requires a profound transformation of our economic systems. According to the IPCC, deep decarbonization demands substantial investments across a broad portfolio of low-carbon alternatives spanning all economic sectors. As the world moves toward a net-zero trajectory, significant shifts within sectors and transformative changes in our society are expected. This transition entails the expansion of new economic sectors, such as renewables and the bio-economy, while reducing the relevance of polluting sectors, such as carbon-intensive fossil fuels. In turn, the transition implies important distributive aspects of deep decarbonization that require the legislators’ attention.

According to the ILO/IADB report “Jobs in a net-zero emissions future in Latin America and the Caribbean”, the net impact of decarbonization on jobs in the region is projected to be positive, with an estimated creation of 15 million jobs in net terms. Nevertheless, the report states that while some sectors will grow, others will shrink. In this context, parliamentarians have a critical role in crafting legislation that ensure equitable distribution of benefits and mitigate negative impacts – including the transformation of jobs and social displacement as well as fiscal stability and political economy challenges. Moreover, aspects of just transition, as global economies turn green, should encompass the promotion of social justice and measures aimed at alleviating poverty, addressing various dimensions of socio-economic inequality as gender, race, ethnicity and age, among others. Recognizing the importance of social justice becomes a vital layer of the response to environmental impacts, intensified climate-related risks, and challenges of the transition process.

The OPCC side event at the Parliamentarian Pavilion will contribute to advancing debates at COP28 on building strategies and proposals for a just transition towards net-zero economies, drawing from insights and experiences of LAC parliamentary leaders. Parliamentarians from various LAC countries will share their perspectives and actions toward fostering a just and inclusive decarbonization process in the region. Invited parliamentarians will delve into a comprehensive discussion, examining the opportunities and challenges associated with implementing a just transition in LAC. This discussion will center on crucial elements, including the prevalent socioeconomic inequality within the region and how the transition shall effectively contribute to poverty alleviation and social inclusion.

Finally, OPCC participating parliamentarians will address the just transition-related commitments outlined in the OPCC Joint Statement at COP28 and extend invitations to new parliamentarians to sign-on. In addition, the OPCC Virtual Platform will be presented, offering an in-depth discussion of just transition-related legislations included in the Legislative Data Tracker.