Neglect of the social impacts of the shift towards a green economy may result in unfair or unequal impacts, and cause resistance that may eventually delay the necessary transition and impede urgent action.

For the green transition to be truly successful, social impacts must be identified and understood in order to be properly managed with adequate regard for the affected individuals and communities. It is also important to plan and develop ideas together with affected individuals and communities, so as to harness their insight and inventiveness, to ensure local uptake of technological solutions, and to ensure that plans adequately incorporate local needs and concerns as well as views on alternative locations for economic activities.

Yet, a great deal of research and the majority of research funding focus on the technological aspects without including the social dimension. We work to address that knowledge gap from a diversity of academic perspectives.

The green transition creates a market for products required for renewable energy, in particular bio-fuel crops and certain minerals. Innovation, development and production of technologies require capital, and investments. Solar power panels, batteries for storing wind-based power, and batteries for electric cars all require minerals. The production and storage of ‘green’ energy depends on the use of raw resources – ranging from wind or water to agri-fuel and minerals – whose production can cause risks to the livelihoods of local communities, health and safety problems for employees, and other negative human rights impacts and conflicts with communities and indigenous peoples.

The rise in political and economic interest in bio-fuel, such as maize and palm oil, has contributed to a growth in agri-businesses, plantations and investments, especially in emerging economies of the Global South. Agri-industry may create benefits for local stakeholders (such as new employment opportunities) but it often causes affected small-scale farmers and communities to experience infringements on land rights, cultural traditions, or rights to participate in decision-making regarding the governance of resources located on the territory that they occupy.

In the Arctic and elsewhere, new or expanded projects to generate renewable energy or green-tech minerals may create new types of employment, but at the same time challenge livelihoods and practices of local and indigenous communities. Protests and court cases in several places challenge the adequacy and legitimacy of impact assessment practices and consultation processes established in local law, and the balancing of social and economic factors in decisions made by authorities, companies and investors. As importantly, it brings to the fore the complexities of ensuring a just transition in the face of urgent climate change mitigation.

Questions are being asked about whether processes to plan and implement solutions for renewable energy are adequate with regard to public consultation and participation at the strategic or project-level, and whether they live up to public and private commitments in those regards. Studies are highlighting societal risks caused by the mining of minerals for green-tech solutions. Incidents in several countries have seen the siting of wind power farms being challenged by indigenous peoples who claim the projects violate their rights to the land and rights to continue their traditional practices. Other renewable energy projects are also being challenged as infringing upon the rights of local communities and indigenous groups.

Producers, funders and buyers of technical products for the green transition have roles to play in ensuring that social impacts are identified and addressed in culturally appropriate fashions. Among economic actors, institutional investors have a role in addressing the adverse effects of governance gaps by careful assessment of the impacts of their investments and relevant and effective follow-up.