Unlocking the power of community to enable a Just Transition
At a glance
Societal pressures play a critical role in shaping the trajectory of a just transition, and as the renewable energy sector continues to evolve, the integration of community benefits programs has emerged as a critical strategy in building a social license and enabling community participation and capacity-building.
GHD’s SHOCKED research told us that 70 percent of energy sector leaders identify community opposition as one of the main obstacles to getting renewable energy projects approved. Yet, when a project prioritises the needs of the community, fosters collaboration, and invests in initiatives that empower local stakeholders, organisations can unlock benefits beyond just the project itself – it can be a catalyst for positive change in the wider community.
While projects in the renewable energy sector aim to deliver long-term benefits for local communities and stakeholders, it can often cause disruptions during planning, construction and operation phases. When it comes to the transition out of high-carbon industries – the move away from fossil fuels may present economic risks. It also creates the need for technical expertise and new opportunities for workers, small businesses and communities to meet those needs locally and to shape a thriving economy through meaningful participation. Ideally, new projects should be opening the door to shaping the future of the community, by exercising energy democracy and co-creating renewable solutions.
By investing in initiatives that enhance community wellbeing, support local economic development, preserve the environment, and celebrate culture, projects can deliver on the goal of lasting community benefit.
What are community benefits?
Community benefits programs are a structured way to enhance the wellbeing of local communities that are impacted by infrastructure projects. They often focus on alignment with and support of community needs, throughout the often-disruptive delivery phase and post-project completion, to leave an enduring legacy.
A community benefit framework for a project not only serves as a structured approach to address community concerns but can also become an enabler for companies to invest in initiatives that leave a have a positive impact on host communities. The framework outlines the vision, values, and strategic approach for selecting initiatives that align with community needs and aspirations. Such programs also need to evolve in response to stakeholder feedback, as well as project phases and priorities.
Implementation can occur through various approaches and can include community infrastructure, grants, sponsorships, and partnerships. Each stream has a specific focus and funding allocation and aims to support initiatives that enhance community wellbeing and foster sustainable development.
Scepticism of and criticism from local communities and stakeholders about benefit programs often stem from the perception that it is a way to gain favour for a project without genuinely addressing their needs. There may be a lack of input from the community on the “why” and “how” of the project and failure by an organisation to fulfill its commitments and account for the long-term benefits and burdens posed by a project.
There are many global, multi-sector examples of programs that have been developed by organisations without sufficient community input and that lack due regard for community priorities. There are many examples where this approach results in “solutions that fail” – infrastructure that goes underutilised and becomes a liability. Only by ensuring a multi-stakeholder, multi-perspective approach that follows recognised global standards and frameworks can an organisation ensure that programs meet multiple short, medium and longer-term needs, while delivering the direct value of service provided, enabling service delivery, and providing lasting benefits.
As each community is different, community benefits programs need to start by listening to community needs and aspirations as well as the ways in which existing relationships and social structures make the community unique and resilient. Place-based knowledge and genuine relationships are necessary to both understanding and collaboration.
The most effective community benefits programs begin by asking community members and local organisations how the program should be structured and operate : What are the preferred methods of engagement? What engagement mechanisms are needed, accessible, and desired by community members? How should the program be administered? What participation and accountability measures are important to community-members? Other key questions to explore include What does the community most need and want? Where are these wants and needs most strongly aligned with the project? How can the programs serve underrepresented and under-resourced members of the community? Deep connection with community-based organisations and historically marginalised community groups provides insights and reciprocal learning opportunities that inspire trust and support lasting impact.
Effective governance and monitoring mechanisms are essential to ensure the success of implementation. Strong governance structures can include meetings, regular reporting, and risk management strategies that ensure transparency, accountability, and alignment with project objectives and community expectations. Tracking the delivery of benefits over time provides the opportunity to demonstrate a genuine commitment to beneficial impact and a sense of shared understanding and connection.
Decision making around recipients of community benefits programs need to be transparent, with governance structures ensuring procedural and distributional fairness. The programs that are most successful over the longer term are the ones that remain focused on a few key initiatives and do not try to take on too many projects or recipients at one time.
To transition energy infrastructure toward fossil fuel free and low carbon alternatives that realise the vision of a just community, we need to take a targeted and localised approach to work with communities to adjust to and benefit from the energy transition.
The integration of community benefits programs emerges as a fundamental element for driving positive change, unlocking the potential for new opportunities while paving the way for a more just and equitable transition. It has the potential to create greater socio-economic opportunities, such as job creation, economic development, enhancing productivity and addressing inequality and inequity.
GHD has been involved in the development and administration of community benefit-sharing programs globally. We are committed to promoting stakeholder and community engagement by prioritising openness and transparency to drive positive outcomes and impacts for all.
Reach out to us for more information on how we can support your needs.