Achieving this transition will require collaboration between governments, employers, businesses, unions, communities, civil society, UN agencies and other international organizations.
As the incumbent energy sector in many places, the oil and gas industry is uniquely positioned and has valuable insight when it comes to how to support the transition, where investment is needed and what the economic, people and nature impacts might be of transitioning the energy system. The industry has the technical and commercial know-how to work with governments to turn their climate ambitions into on-the-ground strategies to develop low-carbon businesses and supply chains that care for people and nature.
What is Ipieca’s role?
Ipieca supports the oil and gas industry’s participation in international collaboration to transition to a low-carbon world in a way that is just and fair for workforces, communities and consumers.
Ipieca’s broad scope allows it to address the cross-cutting aspects of the just transition. In 2021 Ipieca established a Just Transition Task Force to work closely with other Ipieca workstreams, from climate change, alternative energy and environment, to worker welfare, community engagement, reporting and health. For instance, in collaboration with the Reporting Working Group, the Task Force is mapping just transition frameworks and indicators.
In July 2022, Ipieca published a Just transition literature review, providing insights into the just transition concepts, definitions and priorities from a range of organizations relevant to the sector to raise awareness and understanding of the just transition. Following this, Ipieca developed a statement on just transition, aligning the industry around a shared understanding of the concept.
Convening the industry with stakeholders
Since the literature review and production of a statement, Ipieca has continuously sought to maintain an understanding of stakeholders’ views and initiatives on just transition through several means:
Formalising partnerships and inviting stakeholders to engage with members
In November 2022, Ipieca became an ally of the Council for Inclusive Capitalism, a global non-profit organization that joins moral and market imperatives to build a more inclusive, sustainable and trusted economic system that addresses the needs of people and the planet.
Other stakeholders Ipieca frequently engages with:
- Institute for Human Rights and Business
- World Benchmarking Alliance
- Business for Social Responsibility
- World Business Council for Sustainable Development
- International Council on Mining and Metals
- Organisation for Economic Co-operation and Development
- International Labour Organization
- The B-Team
- International Trade Union Confederation
Organizing and participating in multilateral events
At COP27, Ipieca co-hosted an official side event on Adaptation, resilience and just transition: business engagement to deliver the Paris Agreement. Ipieca also participated as a panellist in a workshop on Unlocking policy solutions for the just transition.
At COP28, Ipieca co-hosted an official side event entitled Business leadership on the Global Stocktake: catalysing investment while prioritizing a just transition. Ipieca also organized a side event on Partnerships for progress: how a just transition drives sustainable energy and the SDGs and joined others as a panellist, such as an event on Just energy transition in the Global South: challenges and perspectives of developing countries.
Ipieca’s role as the industry’s principal channel of engagement with the UN
Ipieca provides technical knowledge to UN bodies when requested. Ipieca supported the UN Working Group on Business and Human Rights by taking part in a consultation for a report on Extractive sector, just transition and human rights.
Championing a cross-cutting approach
A cross-disciplinary approach will be key to accelerating a just transition.
Ipieca builds on existing good practices developed by members from across different Ipieca workstreams. Some guidance produced recently are particularly relevant in the context of a just transition:
- SDG Roadmap for the oil and gas sector
- Offshore impacts to fisheries practitioner guidance for social baselines
- Local content measurement and reporting guidance
Measuring just transition progress
Ipieca is taking the lead on developing reporting metrics to show progress on a just transition plan. For fifteen years, Ipieca, the International Association of Oil & Gas Producers (IOGP), and the American Petroleum Institute (API) have collaborated on the development and updates of our Sustainability reporting guidance for the oil and gas industry.
Over the past few years benchmarking organizations have become increasingly interested in assessing the extent to which companies are publicly reporting their actions to promote a just transition. In 2024 a key focus for Ipieca has been to develop just transition indicators to incorporate into the Sustainability reporting guidance.
The indicators, currently being finalised and reviewed, build on existing work and engagement with benchmarking organizations and existing frameworks such as the World Benchmarking Alliance, the Council for Inclusive Capitalism, the UN Global Compact and Climate Action 100+.
