The transition to a low-carbon economy can only be swift and effective with the meaningful participation of communities impacted by the transition, especially those who rely on the energy value chain for their livelihoods. We support communities in building inclusive transition models that center their priorities in the decisions that impact their futures.
The challenge
The shift toward a sustainable, and carbon-neutral economy will touch every aspect of the global economy, transforming industries and disrupting workers in local communities. Millions of people are at risk of losing their livelihoods and the ability to provide for their families. While international commitments like the Paris Agreement and International Labour Organization (ILO) guidelines call for the protection of workers and communities, and some countries enact policies for economic diversification and reskilling, these measures often fall short of full empowerment of the people they aim to help.
The most affected communities are too often excluded from decisions about their own futures. Unequal access to economic opportunities, resources, and democratic participation threatens to deepen inequality, undermining trust in institutions and public support for the transition. As such, an equitable, inclusive transition is necessary for long-term success. However, public support remains limited outside justice-focused circles. Without genuine engagement, workers and communities may view the transition as an external imposition rather than a collaborative endeavor. Polarized civic landscapes and low institutional trust further underscore the urgent need to bridge the gap between promises of a just transition and the lived realities of affected communities.
The opportunity
The case for a Just Transition is both moral and practical. It’s an unparalleled opportunity to redefine governance, empower communities, and reshape economic development through a lens of equity and justice. A true Just Transition is one in which those most impacted by the transition — workers, local communities, and vulnerable populations — have the power to shape their futures and participate meaningfully in building a sustainable and inclusive economy.
Achieving this vision requires bold, collaborative action across governments, businesses, investors, civil society, and communities. Together, these groups must align to ensure that the transition is not only environmentally sustainable but also economically and socially equitable.
Philanthropy has a crucial role to play. It can act as a catalyst by filling critical funding gaps, testing innovative solutions, and building civic capacity and local resilience. By supporting grassroots initiatives and scaling solutions, philanthropy can help create systems that address the climate crisis while fostering a fairer, more equitable society. This is the moment to seize — not only to tackle climate change but to create a just, fair, and inclusive future for generations to come.
Our approach
The most effective solutions for a Just Transition are those that are locally-led and rooted in the unique social, economic and environmental contexts of the communities they serve. We believe in empowering local governments, community-based organizations and leaders, and the private sector to ensure transition strategies are inclusive, equitable, and sustainable. These strategies must reflect the needs and aspirations of those most affected by climate and economic changes.
In 2023, we launched the Global South Just Transition Fund, initially focused on Indonesia, South Africa, Vietnam, and India with a $20+ million investment from the IKEA Foundation and Laudes Foundation. Through this work, our approaches include:
Impact
We aim to achieve the following transformative outcomes:
While the initial focus on these four countries will allow us to leverage existing political and social momentum from complementary mechanisms and initiatives, our broader vision is toward a decarbonized global economy that is grounded in sustainability, resilience, prosperity, and justice. We are actively seeking opportunities for expansion into other countries and across different sectors as the next leg of our journey.
