German-Caribbean climate talks

The German Embassy in Port of Spain, in partnership with Climate Analytics, hosted an event on May 13 focusing on "just transition" in the Caribbean.

The German-Caribbean climate talks brought together dignitaries, experts and stakeholders to discuss the importance of advancing a fair, inclusive and green economy throughout the region.

The event underscored the importance of co-operation between Germany and the Caribbean to address the pressing challenges posed by climate change.

Just transition at COP28

The concept of a just transition was a significant focus at the COP28 climate conference, reflecting its growing importance in global climate policy.

The COP28 package of decisions explicitly noted that the shift away from fossil-fuel energy should happen "in a just, orderly and equitable manner."

The UNFCCC's new Just Transition Work Programme was approved, outlining pathways to achieve the Paris Agreement climate goals while ensuring fairness and equity.

This includes commitments to support workers and communities affected by the transition, with a focus on decent work, quality jobs and social protection.

The term "just transition" originated in the US during the 1970s and 1980s, spearheaded by Tony Mazzocchi of the Oil, Chemical and Atomic Workers Union.

Mazzocchi proposed a "superfund for workers" to support and retrain those moving out of environmentally hazardous jobs, paralleling the US. Superfund Act of 1980, aimed at cleaning up hazardous waste sites.

This idea has since evolved into a broader framework that seeks to ensure that the shift from a high-carbon to a low-carbon economy is fair and inclusive, addressing the needs and rights of workers, communities and other stakeholders affected by this transition.

At the German-Caribbean climate talks, German Ambassador to TT and special envoy for climate issues in the Caribbean, Dr Christophe Eick, and Climate Analytics Caribbean director Rueanna Haynes provided detailed insights into the concept of just transition as agreed at COP28.

Eick emphasised that a just transition involves moving from a high greenhouse-gas economy to a carbon-neutral one, ensuring no one is left behind.

He highlighted Germany's achievements in reducing greenhouse-gas emissions and the role of renewable energy in the country's electricity generation.

Haynes discussed the establishment of the just transition work programme, emphasising the inclusive and participatory approaches needed for a successful transition.

Components of just transition

A just transition encompasses several key components.

Here are the seven components, associated facts from the event and what companies in the Caribbean can do to address each:

Social dialogue and stakeholder engagement

Eick highlighted the importance of co-operative efforts between Germany and the Caribbean, emphasising the need for inclusive dialogue.

During the discussion after the presentations, Marie Louise Norton-Murray, executive director of the European Business Chamber in TT, spoke to the private sector's commitment and interest in actively participating in and contributing to the Just Transition.

– Company actions: Establish regular consultation forums with employees, local communities and other stakeholders.

Create mechanisms for ongoing dialogue, such as social forums and consultations.

Decent work and economic opportunities

Haynes discussed the need for reskilling and upskilling strategies to ensure workers can transition into new roles within a green economy.

– Company actions: Invest in training programs to reskill and upskill workers for new green jobs.

Develop and implement fair wage policies and ensure job security during the transition.

Social protection and support systems

Kishan Kumarsingh, head of Multilateral Environmental Agreements at the Ministry of Planning and Development, said a just transition policy has been developed in TT, which includes social protection measures and is currently before Cabinet.

– Company actions: Offer comprehensive social protection packages, including health insurance and retirement plans.

Partner with governments and NGOs to enhance social safety nets for affected communities.

Environmental sustainability

Eick noted that on average, Caribbean countries spend 13 per cent of GDP on fuel imports. Barbados has been utilising solar panels for years; St Kitts has a solar park with battery storage, which should be completed next year; and Dominica and the Eastern Caribbean countries are investing in geothermal plants.

In TT, the Government has announced a solar park to provide electricity to more than 40,000 homes. Eick shared Germany's progress in renewable energy, with nearly 60 per cent of electricity coming from renewables.

– Company actions: Implement sustainable production and consumption practices.

Invest in renewable energy and energy efficiency measures.

Equity and inclusion

All speakers emphasised the importance of coherent policy development that promotes social inclusion and addresses inequality.

– Company actions: Develop policies that promote diversity, equity and inclusion within the company.

Ensure that transition plans consider the needs of vulnerable and marginalised groups.

Human rights and accountability

All speakers stressed the need to ensure no one is left behind in the transition to a carbon-neutral economy.

– Company actions: Conduct regular human-rights due diligence to identify and mitigate potential impacts.

Establish transparent reporting mechanisms to track progress and hold the company accountable.

Transformational systems change

Haynes discussed the need for regional co-ordination and co-operation to achieve a just transition.

– Company actions: Advocate for systemic changes that promote sustainability and social justice.

Collaborate with other businesses, governments and civil society to drive broader systemic change.

Insights from ECLAC

Diane Quarless, director of the subregional headquarters for the Caribbean at ECLAC, highlighted the economic challenges and financing needs for a just transition.

She emphasised the high debt-servicing burden, on average 40 per cent of government revenue, faced by Caribbean countries and the necessity of accessible financing for just transition investments. Quarless also discussed the need for structural changes and economic diversification, calling for fair and accessible mechanisms for technology transfer and capacity building.

Dr James Fletcher, former minister of public service, sustainable development, energy, science and technology in St Lucia, highlighted the disproportionate impact of climate-related disasters on low-income populations. Fletcher called for increased political support for climate negotiators and the involvement of civil society, urging the establishment of a World Environment Court for Climate Justice.

The German-Caribbean climate talks highlighted the critical importance of a just transition in addressing climate change.

By focusing on fairness, inclusivity and sustainability, the concept of a just transition ensures that the shift to a low-carbon economy benefits all stakeholders.

Companies in the Caribbean have a vital role to play in this process by adopting practices that support social dialogue, decent work, social protection, environmental sustainability, equity, human rights and transformational systems change. Through these efforts, the Caribbean can move towards a greener, more equitable future.

Dr Axel Kravatzky is managing partner of TT-based Syntegra-360 Ltd, vice-chair of ISO/TC309 Governance of Organizations and president of EUROCHAMTT.

He enables companies to flourish through integrated governance, certified management systems and transformational leadership.