Socio-ecological transformation of the economy

The project develops possible implementation pathways for inclusive green industrial policy for a Just Transition in particularly relevant fields of German development cooperation. These must be adapted to the context of low- and middle-income countries and be based on scientific evidence. Through its focus, the project contributes application-oriented scientific expertise to the BMZ's priority area "Promoting Just Transition".

Project Lead:
Anna Pegels

Project Team:
Hanna Fuhrmann-Riebel
Babette Never
Rita Strohmaier

Financing:
Federal Ministry for Economic Cooperation and Development (BMZ)

Time frame:
2024 - 2026 / ongoing

Project description

Inclusive green industrial policy promotes a fair transformation to a resource- and climate-friendly economy in the sense of a just transition. When shaping such transformation processes, the framework conditions for job creation, business model innovation and industrial competitiveness must always be taken into account.

Local or regional markets can be particularly important for the economic development of countries that are unable to establish a stable export economy due to the increasing requirements of global markets. Due to the interactions between the various relevant players in supply and demand, it is also essential to identify key players in the respective value chains, understand their current and future business models and convince them of the benefits of a socio-ecological transformation.

In addition to winners, every transformation also creates losers. This leads to political resistance and is particularly relevant to society when disadvantaged groups, such as women, are among the potential losers.  Accelerating the just transition will therefore only succeed if clear economic co-benefits can be generated in order to broaden the group of winners and compensate potential losers Lower income groups in particular must be protected and, where possible, their situation must be improved. In addition, daily decision-making contexts must be designed in such a way that sustainable behaviour becomes easier and more attractive than non-sustainable behaviour.

Publications

Project Coordination

Susanne Wessig