This research examines interconnected justice in climate and nature transition policies, highlighting the cross-border implications of policy actions. Drawing on interviews with stakeholders and a review of 304 policies, it identifies gaps in integrating just transition considerations into net zero and sustainability frameworks. Key findings indicate that only 11 policies require just transition indicator disclosure, and just four mandate disclosure of just transition targets. The research underscores the need for holistic approaches that address the intersection of climate mitigation, human rights, and economic equity.

Key findings

Policymakers and non-state actors (NSAs) should adopt an interconnected perspective on justice that integrates multiple dimensions, including distributive and procedural justice. Collaboration across jurisdictions is essential to address risks and opportunities of the global transition. Notably, current NSA policies focus primarily on limiting harm but need to shift towards actively creating positive outcomes. Effective measures include capacity building, technology transfers, and ensuring accountability through robust due diligence and disclosure frameworks. The report highlights gaps in carbon offsets, where only a small fraction of benefits, such as the 6% reaching communities in Zimbabwe, are realised locally, calling for transparency and equitable frameworks.

The state of play for NSA policies

The transboundary nature of climate transitions necessitates addressing cross-border justice. Many developed countries have benefitted historically from resource extraction in developing nations, creating imbalances. Current NSA policies—such as disclosure regimes and due diligence instruments—focus on transparency but require stronger mechanisms to mitigate systemic inequities. For example, the European Sustainability Reporting Standards (ESRS) recommend supporting smaller suppliers in developing countries to meet sustainability goals, but such provisions remain limited across other frameworks. Additionally, SMEs face significant challenges in meeting complex disclosure standards, which can hinder supply chain transitions. Simplified frameworks like the EU’s SME standards and Malaysia’s ESG Disclosure Guide are positive steps forward.

Widening the lens to a transformative global just transition

The just transition must balance place-based and interconnected approaches to address the varying needs of communities and economies. For example, resource-rich developing nations face asset-stranding risks due to the global shift away from fossil fuels. In agriculture, stranded assets, including infrastructure and natural resources, can disrupt supply chains, driving higher food prices and economic instability. Biodiversity loss, responsible for nearly 20% of global emissions, further complicates these transitions. Effective policies must integrate the intrinsic and economic value of nature, including the rights of local communities and ecosystems, to ensure fairness and inclusivity.

Towards interconnected policy: The NSA ecosystem and collaborative governance

Current NSA policies often rely on compliance-based principles like “do no significant harm” (DNSH). However, transformative justice requires a shift towards “doing more good.” This involves inclusive decision-making, meaningful stakeholder engagement, and addressing power imbalances. Mining for critical minerals exemplifies the need for stronger frameworks, as over 50% of resources are located on Indigenous lands, raising socio-ecological risks. Policies should mandate free, prior, and informed consent (FPIC) and prevent exploitative practices. Recommendations also include linking insurance instruments to preventive measures, scaling up micro-insurance for vulnerable communities, and enhancing access to concessional finance for adaptation.

The way forward

The report outlines steps to enhance interconnected justice outcomes. These include strengthening policy coordination, conducting in-depth research into under-analysed issues such as climate finance and adaptation, and developing assessment frameworks to evaluate cross-border impacts. Specific actions include capacity-building initiatives for small and medium-sized enterprises (SMEs), embedding interconnected justice into disclosure standards, and ensuring legal recourse for marginalised groups. Carbon markets also require stronger governance to prevent emissions leakage and burden shifting, particularly from developed to developing countries. The report further calls for non-market mechanisms to promote restorative and systemic justice, including safeguarding Indigenous rights and fostering equitable benefit-sharing.