Legislating the Future: The Central Role of Parliamentarians in a Just Energy Transition
If statistics could alone tell the story, renewable energy would likely be the only energy source used globally. It can be the backbone to modern, resilient, agile, and cost-effective energy systems. Investments in renewables continue to climb. According to the IEA’s 2025 World Energy Investment report, global energy investment is set to reach USD 3.3 trillion by the end of 2025. Of this, USD 2.2 trillion (approximately two-thirds) will be allocated to clean energy, which is more than double the USD 1.1 trillion earmarked for fossil fuels. (IEA 2025) Capacity is also on the rise. According to IRENA, in 2024, the addition of global renewable power capacity reached an unprecedented 582 gigawatts (GW). This represented a 19.8% increase compared to capacity additions in 2023, marking the highest annual expansion since records began in 2000. Renewables have made progress in costs as well. On average, solar photovoltaic (PV) was 41% cheaper than the cheapest fossil fuel alternatives. Onshore wind projects were 53% less expensive. (IRENA 2025)
The renewables sector also brings employment opportunities to communities across the globe. In 2023, the number of renewable energy jobs increased by the largest amount ever, rising from 13.7 million in 2022 to 16.2 million (IRENA/ILO 2024). Job creation is across the sector from manufacturing hubs to research, installation, operations, and maintenance.
The positive statistics do harbor some worrying points. Investments in RE remain uneven. For example, in Africa, over 85% of the total energy investment in 2025 was used for debt servicing. Energy investment in Africa was one-third lower in 2025 than in 2015, due to a decline in oil and gas spending which was only partially offset by increased investments in renewable power. With 20% of the world population, Africa accounts for only 2% of clean energy investments. (IEA 2025)
Of the additional capacity, the expansion was heavily concentrated in Asia, with China alone adding 297.6 GW. Of the jobs added in 2024, the continent of Africa realised only 324,000 new jobs while China leads the way, with an estimated 7.4 million renewable energy jobs, accounting for 46% of the global total. (IRENA/ILO 2024)
While the renewable energy makes strides, the uneven distribution of the benefits and opportunities is a challenge that must be addressed. As the world confronts a convergence of climate, energy, economic and geopolitical challenges, the role of Parliamentarians in creating enabling legal frameworks for renewable energy deployment is increasingly vital.
For emerging and developing economies in the Global South, the stakes are particularly high. These countries stand on the frontlines of climate vulnerability while shouldering the weight of underdeveloped infrastructure, capital scarcity, and a legacy of energy inequality. It is within this complex terrain that lawmakers must legislate not just for decarbonisation of their economies and societies, but for a just energy transition that leaves nobody behind.
Policy-Making For a Just Energy Transition
A “just” energy transition implies more than a switch to cleaner energy; it requires equitable access, jobs creation, participatory governance, and environmental integrity. Parliamentarians are uniquely positioned and empowered to embed justice into the DNA of national energy policies. Through legislation, they can prioritise rural electrification and universal energy access, mandate social safeguards, and ensure that climate action supports the poor and disenfranchised communities, rather than penalise them.
Robust legislation and policies play a central role in ensuring a just energy transition, steering the shift from fossil fuels to renewable energy in a way that is both socially inclusive, contextually appropriate, and economically fair. Well-designed policies align climate goals with employment, social protection and overall equity objectives. For example, governments can;
- implement redundancy and retraining programmes for workers in fossil fuel-dependent industries such as coal,
- invest in the creation of green jobs in renewable energy and energy efficiency across the value chain including R&D/innovation, education, manufacturing, energy services, circular economy and materials end of life solutions,
- provide social safety nets to support vulnerable communities during the transition,
- support local ownership and participation, such as community energy projects or incentives for micro, small and medium-sized enterprises (MSMEs) to adopt and develop clean technologies,
- incorporate gender and social equity frameworks into energy planning to ensure that marginalised groups are included and reflected.
Despite these opportunities, several challenges hinder the just energy transition. A key barrier is the political economy of fossil fuels, where entrenched interests, subsidies and lobbying impede reform efforts. Another challenge is the financing gap: Many low- and middle-income countries and the relevant business communities lack affordable access to capital for renewable energy infrastructure and just transition measures, including social protection and reskilling schemes. When they do access finance, it is often in the form of loans leading to a spiralling debt crisis. For example, debt stressed African countries have debt as 36%-43% of their climate financing. (Climate Policy Initiative 2024) Additionally, the transition risks creating regional inequalities, as coal- or fossil fuel-dependent regions face job losses and revenue declines, while the benefits of clean energy often accrue to urban or capital-intensive sectors. Ensuring a just transition also requires overcoming governance and institutional capacity gaps, as many governments struggle to coordinate efforts across ministries, sectors and levels of society. Without robust policy frameworks in place, the transition exacerbates inequalities.
