Fair transition agreements: much ado about nothing

Abstract

The concept of a fair transition refers to the need to take into account all those affected by the transition to a decarbonized economy. It will result in job losses in some sectors, which must be offset by the creation of new jobs in others. Fair transition agreements are regulated by the Climate Change and Energy Transition Act 2021 with the aim of promoting economic activity and its modernization, as well as the employability of vulnerable workers and groups at risk of exclusion in the transition to a low-carbon economy, particularly in cases of closure or conversion of plants. This study examines the regulation of these agreements, which must include commitments by the parties, although the law does not provide for any consequences in the event of non-compliance. It does not therefore appear that these are genuine agreements with legal effect, but rather mere declarations of intent without binding force. The concept appears to be inspired by the ‘contrats pour la réussite de la transition écologique’ under French law, which is also discussed in the paper