A just transition with regards to climate change refers to ensuring that the shift to a low-carbon economy is fair and inclusive, particularly for workers and communities that are adversely affected by this transition. Here’s why option C is correct:
Just Transition:
A just transition involves measures that support workers and communities who are impacted by the transition to a sustainable economy. This includes creating new job opportunities, providing retraining programs, and ensuring social protections for those affected by changes such as the closure of coal mines.
Collaborating with labor unions to develop a social package for displaced workers is a clear example of this approach, as it directly addresses the social and economic challenges faced by workers during the transition .
Other Options:
Option A (financing a gas-fired power utility project) does not address the social aspects of the transition and is more focused on the financial and infrastructural changes.
Option B (designing reusable and recyclable products) is aligned with the circular economy but does not specifically address the social justice aspect of the transition .
CFA ESG Investing References:
The CFA Institute’s ESG curriculum includes discussions on the importance of a just transition, emphasizing the need for policies and initiatives that protect workers and communities during the shift to a sustainable economy .
