Policy Dialogue on Just Energy Transitions Key findings on identifying pathways to prosperity post fossil fuels BACKGROUND There is an emerging consensus on the need to “transition away from fossil fuels”, as highlighted in the historic agreement by countries at COP28 . This transition is driven not only by a desire to tackle the climate crisis, but also by concerns around the geopolitical risks, economic costs, and health and environmental impacts of continued oil and gas dependency. Additionally, clean energy markets present growing economic opportunities. How to navigate this path in a just, orderly, and equitable manner remains a challenge as countries seek to manage trade-offs and balance short- and long-term objectives. The “Policy Dialogue for Just Energy Transitions: Identifying Pathways to Prosperity Post Fossil Fuels” was held from September 8 to 12, 2024 in Salzburg, Austria. This program brought together policymakers, decisionmakers, and leading researchers from ten oil and gas producing countries as well as representatives from international organizations. They shared evidence-based approaches to the transition from fossil fuel dependent economies to inclusive, equitable, and sustainable systems. During the program, participants discussed the key challenges of enacting a just energy transition process in their countries, such as aligning economic development with climate mitigation, considering energy versus economic diversification, energy inefficiency, and the consequences of differentiated national pathways. They also explored possible windows of opportunity to achieve prosperity post fossil fuels; these include potential diversification options, tax measures and enabling policy environments to finance the transition, international collaboration and partnerships, novel or adapted indicators to measure just transitions, as well as broad stakeholder engagement and participation. Although strong similarities exist between oil and gas producing countries, there are also key differences that influence the appropriate domestic transition pathway. KEY FINDINGS ON ENABLING JUST TRANSITIONS FROM OIL AND GAS
A just energy transition is part of broader “just economic diversification” efforts. • For many producer countries, a just energy transition comprises one part of a broader effort to create more resilient and diversified economies and reduce dependency on oil and gas exports and revenues. • Economic diversification poses a greater challenge for many countries than energy diversification and requires international technical and financial support to leapfrog carbon-intensive industries and develop the new skills and expertise required to expand into emerging (green) economic sectors. • The growing prevalence of trade protectionist policies in Global North countries provides additional barriers to economic diversification by redirecting global investment flows and setting punitive standards without the necessary capacity development support.
SALZBURGGLOBAL.ORG