Mainstreaming of Carbon Neutrality-Oriented Just Transition: Conceptual Origins and Policy Design

Under the global carbon neutrality, just transition has gained significant prominence in balancing accelerated green and low-carbon transition and social justice, and is shifting from an international discourse to a mainstream domestic policy discourse. Originating from employment protection during the transition towards green economy, just transition has evolved from political advocacy to government-led policy implementation following its integration with climate governance. In the context of carbon neutrality objectives, the transition brings about job creation, job substitution, job loss, and job transition, which are not consistent in terms of spatial and temporal distribution and skill requirements. Some of grassroots laborers in traditional fossil fuel-intensive industries, due to relatively low educational attainment and skill levels, find it difficult to re-employ in renewable and new energy and other industries, and thus require employment incentives and social security. Hence, policy design must incorporate considerations for a just transition. In fact, the principle of just transition has long been integrated into China's dual-carbon policy framework and historical transition practices. The forward-looking and systematic policy design for carbon neutrality-oriented just transition in China should leverage the positive role of zero-carbon industries in job creation, enhance the ability of laborers in transition to green and decent jobs, innovate fiscal and financial policy tools related to just transition, and prevent the impact of digital and intelligent transition on employment.