Abstract
The accelerating pace of climate disruption demands a rethinking of social protection beyond traditional boundaries. While the concept of a “just transition” has become central in international labor and climate discourse, existing frameworks often remain limited to retraining and reallocation, neglecting the structural risks posed by climate-induced disasters that directly displace or incapacitate workers. This paper introduces the Just Transition Insurance Scheme (JTIS) as an innovative mechanism to integrate disaster-related wage protection with green finance and carbon markets. The JTIS is designed on a multi-stakeholder financing model: states contribute under their social policy obligations, employers through their duty of care, employees as solidarity participants, and a share of EU Emissions Trading System (ETS) revenues to operationalize the polluter-pays principle. Beyond compensation, a portion of funds would be invested in renewable energy, resilient infrastructure, and sustainable transport, generating dual social and climate dividends. Insurance and reinsurance companies act not only as risk-transfer agents but as catalysts of sustainable finance by deploying green finance and investment instrments, ensuring both global risk diffusion and climate project funding. The scheme further earmarks resources for worker retraining and green skills, aligning disaster resilience with long-term employment transitions. Legally, the JTIS requires hybrid governance across international (ILO and Paris Agreement), regional (EU ETS), and national frameworks to ensure legitimacy and enforceability. Ultimately, the JTIS transcends the dichotomy of mitigation versus justice, embedding workers’ rights within climate constitutionalism and offering a blueprint for climate-resilient welfare states.
Details
Presentation Type
Paper Presentation in a Themed Session
Theme
2026 Special Focus—Unseen Unsustainability: Addressing Hidden Risks to Long-Term Wellbeing for All
KEYWORDS
Just Transtion, Insurance, Social Benefit, Temporary or Pernanent Unemployment, Climate
