The process leading to a net zero carbon economy by mid-century will have massive effects on jobs, labour relations and income distribution. The idea of just transition – that achieving the ambitious objectives to bring climate change under control will only be possible if the transition to a net-zero carbon economy is balanced and just – has evolved in the last four decades from a union initiative to a complex policy framework adopted by international organizations, and also referred to in the COP21 Paris Agreement (UNFCCC, 2015). Building on literature analysis, this article deconstructs the concept of ‘just transition’ by discussing its various interpretations and dimensions and highlighting the role of trade unions in applying it. Based on sectoral case studies, concrete examples from two key sectors of the European economy – energy and automobile – are given, where massive employment transitions are under way and social dialogue plays a key role. Conclusions about the changing role of trade unions and the importance of co-operative industrial relations are drawn.
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