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The principle of a fair transition must be integrated into all decisions and plans relating to climate and energy policy
The efforts of Finland to achieve carbon neutrality by 2035 will mean major and rapid industrial restructuring.This change can only be successful with the support of employees.
Achieving the objective
- The binding character of the UN commitment to the principles of a just transition in climate policymaking must be strengthened.
- A wide-ranging assessment of the employment and skills requirement impacts of emission reduction measures must become an obligatory element of climate policymaking.
- Trade unions must be consulted and actively involved in preparing, implementing and monitoring national and sectoral climate change mitigation and adaptation plans, and fair transition plans. Stakeholder cooperation must be long-term and systematic.
Why is this objective important?
Finland is seeking to achieve carbon neutrality by the year 2035. In practice this will mean major and rapid economic restructuring. To ensure that this aim also enjoys the support of employees in transition sectors, the Government must be obliged to react to the employment impacts of emission reduction measures, and to the rapidly evolving skills requirements of workers.
Respecting the principle of a just transition means promoting a climate policy that recognises the employment impacts of emission reduction measures and the new skills requirements of workers, and responds systematically to evolving needs. The principle of a just transition also involves ensuring adequate social welfare and restructuring protection. The definition of the principle of a just transition is based on the Paris Climate Agreement, so the term is widely recognised in international climate policy. It provides a good foundation for promoting principles.
The European Commission has published guidance for preparing adaptation plans that requires the active involvement of all relevant stakeholders (including social partners) throughout the process. The involvement of trade unions in preparations and in monitoring implementation is important to ensure that the impacts of climate change on occupational health and employment become part of the policy debate and decision-making. At the same time, the competence and understanding of trade unions on climate change and its societal impacts will increase.
The impact of climate measures at workplaces must be addressed by providing support for skills
It is not enough to consider only the peat industry when updating the skills of employees. All employees in industries that are disengaging from fossil energy must be treated equitably.
Achieving the objective
- All employees in industries that are disengaging from fossil energy must be treated equitably. The criteria for allocating funds for updating employee skills (such as from the Just Transition Fund and the Sustainable Growth Programme) must be reformulated to more broadly identify sectors in transition (such as energy-intensive industry) and the evolving skills requirements of various employee groups.
- Training policy must accommodate the impact of climate change and climate policy on skills requirements, and apply the principle of a fair transition. While supporting businesses in moving towards carbon neutrality through such instruments as investment or RDI subsidies, the training and restructuring protection obligations of employers must be broadened, with growth in retraining, and in supplementary and conversion training.
Why is this objective important?
Fund allocations from the Fair Transition Fund for updating employee skills have been inadequate so far. For example, socio-economic analyses by the Just Transition Fund should not be targeted solely at the peat industry when its funds of some EUR 665 million would more broadly benefit employees in industries that are undergoing an energy transition. Funding from the Sustainable Growth Programme has similarly not been allocated to strengthen the skills of employees.
Climate change and climate and energy policy are restructuring the business sector, with this change also reflected in the evolving skills requirements of various industries and employee groups. Resources and means of updating employee skills must be provided for meaningful, safe and dignified work to remain available in future.