Rethinking social protection in the green transition: Implementing the Council Recommendation on fair transition

Climate change, as well as policies to mitigate and adapt to climate change, expose people to significant social and economic risks, particularly those who find themselves in vulnerable situations (Akgüç et al. 2022). The physical effects of climate change are destroying livelihoods and displacing communities, and will continue to do so; the phase-out or transformation of industries will impact millions of jobs; and energy price increases linked to climate policies will disproportionately affect lower-income households. Amid a multitude of crises, concerns are mounting over the social effects of climate policies introduced by the European Green Deal (EGD). Against this background, many commentators are arguing that sustainable welfare policies will be essential to protect people from these risks (Bohnenberger 2023), and to ensure a just transition that ‘leaves no-one behind’ (Galgóczi 2021). In this policy brief, we consider the integration of social protection considerations in the EU just transition agenda, focusing on the Fair Transition Recommendation as the only just transition–related instrument in operation that engages explicitly with the role of social protection systems in addressing green transition challenges. We argue that its provisions on social protection can be interpreted in a way that builds on the Social Protection Recommendation and encourages transformative Member State policies, but that significant efforts are needed to promote implementation for the Fair Transition Recommendation to make a difference. We also reflect on whether binding EU provisions on social protection might be feasible in the future.