German report proposes innovative “Just and In-time” Transition policies

German Just and intime policy coverJust and In-time  Climate Policy: Four Initiatives for a Fair Transformation  was released  on August 31 by the German Advisory Council on Global Change (WBGU). The paper  makes innovative proposals for  the German climate change policy in an international perspective. The four exemplary initiatives under discussion relate to (1) “the people affected by the structural change towards climate compatibility” (specifically, Just Transition for coal-mining regions), (2) the legal rights of people harmed by climate change (including financial support for citizens bringing climate liability suits), (3) the dignified migration of people who lose their native countries due to climate change, (through the vehicle of an international climate passport),  and (4) the creation of financing instruments for just & in-time transformation processes.

Regarding the transitions required by coal phase-out, the paper discusses the concept of Just Transition, but argues that it may be too slow for the emissions reduction challenge the world faces.  Instead it uses the term “Just and In-Time” transition,  reviewing  past structural transition models  but concluding that they will not be sufficient.  “Purposive decarbonization requires forward-looking, early, proactive intervention by the state in alliance with other actors.” The report  proposes to reach that goal through “an  overarching ‘Zero Carbon Mission’ on multiple political levels”- local, regional, national, and international.

Regarding citizens’ legal rights and climate liability, the paper states: “Under certain circumstances, companies that contribute to climate change through emissions can sue for damages in the courts if they are forced by state authorities to close their plants. Yet the legal rights of people affected by massive climate damage vis-à-vis large corporations partly responsible for climate change are completely uncertain. The WBGU recommends that the German Federal Government should support a number of promising pioneer lawsuits, particularly those brought by people and communities harmed by climate change, against major corporations that have a significant responsibility for global warming, and assume the litigation cost risks for these lawsuits. It should furthermore use its influence internationally to ensure that the people affected are given opportunities to take legal action across national borders.”

Regarding climate migration, the report urges the German government to advocate at Katowice for a “climate passport” for climate-driven migrants “as a sign of intergenerational justice and responsibility”,  and that “Countries with considerable responsibility for climate change should open their doors as host countries to people with a climate passport.”

Regarding the financial instruments to support transformation, the paper proposes that transition funds be created by pricing greenhouse-gas emissions (e.g.through carbon taxes), and be supplemented by revenue from a reformed inheritance or estate tax. “The transformation funds should accelerate the implementation of the climate and sustainability goals via investments and holdings in key industries, and use the profits generated for early and participatory structural change.”  The  WBGU also recommends providing support for economically weaker countries to build up their own transformation funds and manage structural change via a facility at the World Bank or regional development banks.

The German Advisory Council on Global Change (WBGU), an independent, scientific advisory body established by the German government in 1992.  The paper was released  in anticipation of  the 24th Conference of the Parties to the UN Framework Convention on Climate Change to be held in Katowice in December.  The German Commission on Growth, Structural Change and Employment is also underway now, with the goal of contributing to the COP24 discussion on coal transition planning.