This event will explore why good governance and collective action matter for delivering a just energy transition. Speakers will discuss emerging governance risks in the energy sector and practical steps governments, industry and civil society can take to strengthen governance and advance transparency and accountability for a just energy transition. Governance best practices will also be shared in identifying, managing, and addressing adverse socio-economic impacts of the energy transition. The event will present UNDP’s Energy Governance Framework for a Just Energy Transition and EITI’s forthcoming “Call to action for transparency and accountability in the renewable energy sector”, among other research and analysis initiatives.

We will discuss 

• What are the key governance risks that are emerging in the energy sector in the context of the energy transition? 

• What are the implications of these risks for decarbonisation efforts and the rights of stakeholders? 

• What does good governance in the energy sector look like? 

• What are some of the practical steps governments, the private sector and civil society can take to strengthen governance? 

• How can we advance collective action between stakeholders on these issues?

Come join us at the Just Transition Pavilion, Thematic Arena 3 - Pavilion 325, Blue Zone or watch it live here.

Background and context 

The energy sector plays a pivotal role in alleviating poverty and reducing inequality, driving progress towards a more equitable and prosperous future. Weak energy governance undermines growth, public trust, and investments. Enhancing transparency and accountability is crucial, fostering equitable markets and stakeholder confidence. Good energy governance improves environmental, social, and human rights standards and reduces corruption risks, enabling sustainable development, enhanced energy access, and economic growth. Amid the current energy crisis, there's an opportunity to expedite the shift to renewable energy, creating stable, secure, and equitable societies. 

Achieving this transformation requires accountable, effective, and inclusive governance, with the right institutional structures, policies, frameworks, active citizen participation, and supporting infrastructure for comprehensive system-wide change. Private sector also has a critical role to play. Companies and financial institutions should go beyond legal compliance and place high standards of transparency, due diligence, and good governance at the heart of their business practices and investment decisions. 

UNDP is uniquely positioned with its extensive governance expertise, gleaned from working in over 130 countries, to guide nations grappling with intricate energy governance challenges. It has recently launched An Energy Governance Framework for a Just Energy Transition to craft cohesive and impactful responses to foster a just energy transition. The framework emphasizes the importance of inclusive and effective institutions, robust policy and regulatory frameworks, civic engagement and empowerment, and appropriate and independent oversight. UNDP is also conducting country case studies (Nigeria is one of the selected countries) on energy governance and plans to share a working paper on analyzing best practices and informing policy recommendations aimed at fostering sustainable and equitable energy systems during COP28. The full report on the case studies will be launched during the High-Level Political Forum 2024. 

Within this context, the Extractive Industries Transparency Initiative (EITI) has also been advancing collective action on good governance. The EITI promotes transparency and multi-stakeholder dialogue in the oil, gas and mining sector and is implemented in nearly 60 countries. Recently, the EITI has been exploring opportunities to share lessons with the renewable energy stakeholders. It has commissioned a report on corruption and integrity risks in the renewable energy sector and has developed a call to action for transparency and accountability in collaboration with a coalition of leading renewable energy companies, industry associations, government representatives and civil society organisations. The EITI plans to launch the report and call to action at COP28. 

Within the Enhanced Transparency Framework of the UNFCCC, elements pertaining to just transition are incorporated into the information required for monitoring the progress of domestic policies and measures aimed at mitigating the social and economic repercussions of response measures or transition policies. This encompasses sectors and activities affected, the associated social and economic consequences, challenges, and barriers encountered, as well as the actions taken to address these consequences. A work is being undertaken by the UNFCCC, through the Katowice Committee on Impacts, to identify best practices and challenges in obtaining the information needed for such reporting, with the aim of enhancing the capacity of countries in identifying social and economic impacts of the transition and improving the overall governance systems.