What Is the Just Transition and Why Is it Crucial for Colombia?

In 2021, two major coal mines in Colombia’s northern Cesar Department — Calenturitas and La Jagua — shut down due to the low prices of thermal coal in global markets. The closures cost about 14,000 jobs and considerably reduced tax revenues in the municipalities of La Jagua de Ibirico, El Paso and Becerril, where the mines operated. The loss of royalty income affected the financing of future local development projects and the provision of public services.

The closure of mining operations in Cesar exposed the heavy reliance of some Colombian regions on the coal industry — and the profound impacts that can result from moving away from an extractivist model. This event prompted the government to consider and develop strategies to reduce this dependence and build a more resilient economy, ensuring that this shift does not deepen existing inequalities and that the most vulnerable communities are included in the transition process. 

In February 2025, the Colombian Constitutional Court issued a landmark ruling in response to the coal mine closures in Cesar. The decision established the obligation to guarantee due process and ensure the effective participation of communities and workers affected by large-scale mine closures. It also held companies and the State responsible for ensuring transparent dialogue to mitigate the environmental, social and economic impacts of such closures. 

The example of Cesar concretely demonstrates the far-reaching consequences that can arise when a major local industry is shut down without a clear and inclusive plan to transition the economy. It also reinforces the importance of engaging with affected communities to ensure they are supported as Colombia moves forward with its just transition agenda.  

The Role of Cross-Sectoral Dialogues in Colombia’s Just Transition 

The just transition is a cornerstone of Colombia’s transformation toward a low-carbon, climate-resilient economy that seeks to ensure all people benefit equitably. Without adequate planning, policies to address climate change could exacerbate existing inequalities, disproportionately affecting the most vulnerable sectors of society. A just transition recognizes these risks and seeks to ensure that climate actions promote social equity, protecting those who might face greater challenges in the process. 

To identify the needs, challenges and perspectives that the just transition implies in the country, WRI Colombia organized a series of dialogues together with the Ministry of Environment and Sustainable Development that brought together public and private sector actors. Notably, this was one of the first times the private sector was engaged in discussions around this topic in the country, laying the groundwork for a constructive and collaborative dialogue on advancing the just transition.  

Key insights include:

• Colombia has included the just transition as a central component of its climate policies. The country has been working to develop a holistic national approach to fostering a just transition of the workforce. The country’s nationally determined contribution (NDC), launched in 2020, recognizes the just transition of the workforce as a cross-cutting and unifying element of climate action. A broader approach is found in the Long-Term Climate Strategy (E2050), which sets milestones to be achieved by 2030, 2040 and 2050.  
• Strengthening social dialogues is crucial to ensuring that the transition resolves existing conflicts and prevents new ones. The importance of implementing learning platforms and training centers for the just transition throughout the country was also raised.
• The lack of effective collaboration between public and private sector institutions in defining what the just transition involves and guiding progress forward is one of the main challenges to advancing it. Additionally, legal barriers to critical processes such as the energy transition were identified. In the public sphere, Colombia’s heavy reliance on fossil fuel revenues was recognized, limiting the possibilities for financing a sustainable transition.
• Difficulties persist in accessing financing to transition to more sustainable economies, especially for small businesses. It is essential to design innovative financial mechanisms and incentives that allow sustainable projects to be scaled up and improve collaboration between the banking sector and companies, especially given Colombia’s struggle to price climate and just transition measures. The country’s continued reliance on fossil fuel revenue to close social and environmental gaps creates an interdependence that complicates transition efforts, especially as it seeks to avoid taking on more debt. Public and private stakeholders also agree on the need to develop and implement green jobs as part of the alternatives to workforce retraining and closing employment gaps.
• The just transition in Colombia must be tailored to the country’s unique social, economic and territorial contexts. Diverse, gender-sensitive approaches are needed to ensure that local voices are heard and valued at the national level. With a cohesive and adapted vision, Colombia can turn its transition into an opportunity to promote equity, sustainability and peace. 

Although Colombia has made significant efforts to advance the just transition, notable challenges remain. These stem from national circumstances such as internal conflict, high levels of internal and foreign migration, the lack of quality jobs —especially for women, young people and the rural population — and the urban-rural divide. There is also an urgent need to strengthen understanding of the just transition among private and public sector actors so they can promote and drive its implementation.  

As Colombia prepares its new NDC, to be submitted in 2025 as part of the Paris Agreement, the country has an opportunity to deepen its existing commitments to a just transition. By recognizing the complexity of the country’s social and economic landscape while setting concrete pathways to ensure climate action contributes to decent work, inclusion and resilience, Colombia can demonstrate that a just transition is not an add-on but a fundamental pillar of effective climate action.  

2021, two major coal mines in Colombia’s northern Cesar Department — Calenturitas and La Jagua — shut down due to the low prices of thermal coal in global markets. The closures cost about 14,000 jobs and considerably reduced tax revenues in the municipalities of La Jagua de Ibirico, El Paso and Becerril, where the mines operated. The loss of royalty income affected the financing of future local development projects and the provision of public services.

The closure of mining operations in Cesar exposed the heavy reliance of some Colombian regions on the coal industry — and the profound impacts that can result from moving away from an extractivist model. This event prompted the government to consider and develop strategies to reduce this dependence and build a more resilient economy, ensuring that this shift does not deepen existing inequalities and that the most vulnerable communities are included in the transition process. 

In February 2025, the Colombian Constitutional Court issued a landmark ruling in response to the coal mine closures in Cesar. The decision established the obligation to guarantee due process and ensure the effective participation of communities and workers affected by large-scale mine closures. It also held companies and the State responsible for ensuring transparent dialogue to mitigate the environmental, social and economic impacts of such closures. 

The example of Cesar concretely demonstrates the far-reaching consequences that can arise when a major local industry is shut down without a clear and inclusive plan to transition the economy. It also reinforces the importance of engaging with affected communities to ensure they are supported as Colombia moves forward with its just transition agenda.  

The Role of Cross-Sectoral Dialogues in Colombia’s Just Transition 

The just transition is a cornerstone of Colombia’s transformation toward a low-carbon, climate-resilient economy that seeks to ensure all people benefit equitably. Without adequate planning, policies to address climate change could exacerbate existing inequalities, disproportionately affecting the most vulnerable sectors of society. A just transition recognizes these risks and seeks to ensure that climate actions promote social equity, protecting those who might face greater challenges in the process. 

To identify the needs, challenges and perspectives that the just transition implies in the country, WRI Colombia organized a series of dialogues together with the Ministry of Environment and Sustainable Development that brought together public and private sector actors. Notably, this was one of the first times the private sector was engaged in discussions around this topic in the country, laying the groundwork for a constructive and collaborative dialogue on advancing the just transition.  

Key insights include:

• Colombia has included the just transition as a central component of its climate policies. The country has been working to develop a holistic national approach to fostering a just transition of the workforce. The country’s nationally determined contribution (NDC), launched in 2020, recognizes the just transition of the workforce as a cross-cutting and unifying element of climate action. A broader approach is found in the Long-Term Climate Strategy (E2050), which sets milestones to be achieved by 2030, 2040 and 2050.  
• Strengthening social dialogues is crucial to ensuring that the transition resolves existing conflicts and prevents new ones. The importance of implementing learning platforms and training centers for the just transition throughout the country was also raised.
• The lack of effective collaboration between public and private sector institutions in defining what the just transition involves and guiding progress forward is one of the main challenges to advancing it. Additionally, legal barriers to critical processes such as the energy transition were identified. In the public sphere, Colombia’s heavy reliance on fossil fuel revenues was recognized, limiting the possibilities for financing a sustainable transition.
• Difficulties persist in accessing financing to transition to more sustainable economies, especially for small businesses. It is essential to design innovative financial mechanisms and incentives that allow sustainable projects to be scaled up and improve collaboration between the banking sector and companies, especially given Colombia’s struggle to price climate and just transition measures. The country’s continued reliance on fossil fuel revenue to close social and environmental gaps creates an interdependence that complicates transition efforts, especially as it seeks to avoid taking on more debt. Public and private stakeholders also agree on the need to develop and implement green jobs as part of the alternatives to workforce retraining and closing employment gaps.
• The just transition in Colombia must be tailored to the country’s unique social, economic and territorial contexts. Diverse, gender-sensitive approaches are needed to ensure that local voices are heard and valued at the national level. With a cohesive and adapted vision, Colombia can turn its transition into an opportunity to promote equity, sustainability and peace. 

Although Colombia has made significant efforts to advance the just transition, notable challenges remain. These stem from national circumstances such as internal conflict, high levels of internal and foreign migration, the lack of quality jobs —especially for women, young people and the rural population — and the urban-rural divide. There is also an urgent need to strengthen understanding of the just transition among private and public sector actors so they can promote and drive its implementation.  

As Colombia prepares its new NDC, to be submitted in 2025 as part of the Paris Agreement, the country has an opportunity to deepen its existing commitments to a just transition. By recognizing the complexity of the country’s social and economic landscape while setting concrete pathways to ensure climate action contributes to decent work, inclusion and resilience, Colombia can demonstrate that a just transition is not an add-on but a fundamental pillar of effective climate action.