Discussion on the role of private sector on a just transition towards a greener economy

The workshop took place in KCCI premises and aimed to explore the role of the private sector in helping devise strategies to foster a Just Transition towards an environmentally sustainable society and a greener economy. The participants of the event concluded that private sector plays a very important role to support Kuwait’s efforts to reduce carbon emissions, in particular in strategic sectors such as energy, retail, banking, water and desalination, construction and circular economy.

In his opening remarks, Mr. Firas Mohamed AL-Oda, Assistant Director General of the Kuwait Chamber of Commerce and Industry stated: “The urgency of addressing climate change and environmental degradation is undeniable, necessitating global economies to adopt policies prioritizing environmental sustainability and climate adaptation. Today, in light of the success of the United Nations Climate Change Conference (COP28) and the inaugural just transition event in Kuwait held by the Supreme Council for Planning and Development, the Kuwait Chamber of Commerce and Industry, in collaboration with the International Labour Organization and the European Union Delegation in Kuwait, is hosting a seminar. This seminar aims to illuminate the pivotal role of the private sector in fostering sustainable enterprises, driving innovation, accelerating cleaner production and resource efficiency, all while developing workers’ skills.”

Speaking at the event, H.E. Ms. Anne Koistinen, European Union Ambassador to Kuwait said: “The European Union has long been at the forefront of global efforts to combat climate change and    transition towards a more environmentally sustainable future. Our commitment to a Just Transition towards a greener economy is deeply rooted in our policies and actions, aiming to ensure that no one is left behind in this global transformation. We firmly believe that the private sector both in Kuwait and the EU plays a pivotal role in driving sustainable development and facilitating the transition to green economies. The EU is a world leader in adopting policies that require European companies to accelerate the green transition, while also protecting human rights of workers across the supply chain. This seminar aims at sharing our experience and promoting such a policy environment to achieve a just transition towards a greener Kuwait. I am pleased to see that this seminar as part of our Europe Month activities in Kuwait, providing a platform to exchange best practices from Kuwait, Europe and beyond on private sector’s efforts to foster sustainability.”

From the ILO side, Mr. Jose Manuel Medina focused his intervention on the ILO Just Transition approach and the positive contribution the private sector may play: “Employers’ organizations have identified globally climate change as a common concern. Supporting a Just Transition for the private sector means to ensure continued business development and inclusive economic growth for large, but also medium and small companies, including through a more enabling business environment, access to finance, skills development for the workforce and technical support for companies to adopt greener business practices and explore emerging sectors”.

The event brought together Kuwaiti, European and international experts, private sectors representatives sharing best practices from both Kuwaiti and European Union companies, sustainability scholars. Mr. Manganto from IKEA Kuwait explained the IKEA sustainability strategy in Kuwait and provide valuable inputs on how this company is advancing to reduce their carbon footprint. In the second panel, focused on access to finance. Mr. Tom Van den Berghe, Director Sustainable Finance at Febelfin, Federation of the Belgian Financial Sector share experiences from European banks on their efforts to support the just transition and provide support to their clients.  The event was attended by representatives of Kuwaiti government authorities and members of the diplomatic community.