The MSD approach has much to offer to accelerate the transition to environmental sustainability in a way that is inclusive, fair and does not leave anyone behind. But little has been done so far.
This blog provides an introductory teaser from our latest ILO brief on what a just transition is, and highlights how the MSD approach is positioned to help the MSD community move towards it.
So, what is a just transition?
The climate and environmental challenges that we face today are enormous, and the need for a transition towards sustainable economies has never been clearer. But this transition comes with social opportunities and risks.
On one hand, there is potential for job creation, increased incomes, social inclusion and improved job quality, notably in emerging low carbon sectors. On the other hand, there is a risk of job losses, especially from downsizing sectors which are not environmentally sustainable. This will widen inequalities, and increase the growth of sectors where working conditions are not decent (for instance, certain mining operations to extract raw materials for low carbon technologies).
In many cases, it will be the most marginalised groups that will be worst placed to seize opportunities and most vulnerable to the risks.
Within this context, a just transition means making changes for a smooth shift to environmental sustainability and increased resilience, while also making sure that their social benefits are maximised, and social risks minimised.
Where does the MSD approach fit in?
The MSD approach cannot solve every just transition problem, but it can make important contributions in many areas.
In the diagram below, we present some of the key just transition channels that can be supported by developing market systems.
At first glance, some of these may seem similar to conventional ‘green MSD’, but there are key differences. The most critical one is that a just transition must always address social aspects, such as different decent work dimensions, and ensure that the most vulnerable and marginalised groups are deliberately included in the transition process.
More specifically, the MSD approach can play a clear role in translating countries’ high-level just transition vision into concrete interventions through effective targeting of social groups and sectors, and by building enabling market systems. It can also identify and address systemic constraints found in underperforming support systems.
An example of this can be catalysing the development of financial and advisory services to support the growth of low carbon sectors, which can then also create jobs for women and other marginalised groups.
The good news is that the MSD approach is already being used to promote some aspects of a just transition. Most commonly, it is being used to increase resilience of farmers to climate and environmental shocks, as well as to promote decent work within emerging low carbon sectors. However, experiences across the MSD field are still quite limited, and guidance and field-building are strongly needed.
We organised several interviews and discussions with the MSD community (including with some of you that may be reading this) during the course of our research. These conversations helped us identify key considerations, which we hope can bridge some of the knowledge gaps and guide donors and implementers towards achieving combined environmental, social and economic impacts throughout the project lifecycle.
Some of these considerations are breaking down silos between environment, MSD and employment staff, building team capacity in what a just transition is, and getting out there to fund, test and learn from applying the MSD approach for a just transition.
Where do we go from here?
The climate crisis is unfolding rapidly, and we must harness our collective knowledge and learning to advance towards a just transition as swiftly as we can.
At ILO’s Systems Change Initiative, we are always eager to collaborate and learn from others, bringing together and building on our experiences.
We welcome any others on this journey, so please reach out to sci@ilo.org if you’d like to work with us in applying the MSD approach for a just transition.
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