• Module 4.2: Tackling inequalities as part of transition
EXAMPLE
Funding for disadvantaged communities around power plant in Illinois, United States

In a legal settlement with the Peoria community in Illinois, the owner of a coal power plant agreed to permanently close the facility. To address the impacts on the local community, $8.6 million in compensation was allocated. During this process, three community groups provided valuable advice to the plaintiffs on the most effective utilization of the settlement funds for the benefit of the community.

Recognizing the importance of a just transition, the community acknowledged that addressing the well-being of individuals who had never worked at the plant but were exposed to polluted air and received minimal benefits was essential. Accordingly, the allocated funds were directed towards initiatives that would promote job training, improve lung health (given the prolonged exposure to plant-related air pollution), and encourage investments in solar energy, energy efficiency, and bus electrification.

A crucial priority was to address the historical disadvantages faced by neighboring communities, which were predominantly low-income and communities of color and bore the brunt of pollution exposure. Efforts were made to ensure a fair distribution of the investment among these communities. For instance, it was decided that out of the three electric buses purchased with the settlement money, one would specifically serve Peoria's most economically challenged neighborhood. Furthermore, energy efficiency improvements, including basic repairs necessary for efficiency upgrades, were targeted towards low-income households in the area. Additionally, some of the funding was directed towards the installation of solar panels on firehouses and community centers located in low-income neighborhoods.

4.2 Tackling inequalities as part of transition
EXAMPLES

In a legal settlement with the Peoria community in Illinois, the owner of a coal power plant agreed to permanently close the facility. To address the impacts on the local community, $8.6 million in compensation was allocated. During this process, three community groups provided valuable advice to the plaintiffs on the most effective utilization of the settlement funds for the benefit of the community.

Recognizing the importance of a just transition, the community acknowledged that addressing the well-being of individuals who had never worked at the plant but were exposed to polluted air and received minimal benefits was essential. Accordingly, the allocated funds were directed towards initiatives that would promote job training, improve lung health (given the prolonged exposure to plant-related air pollution), and encourage investments in solar energy, energy efficiency, and bus electrification.

A crucial priority was to address the historical disadvantages faced by neighboring communities, which were predominantly low-income and communities of color and bore the brunt of pollution exposure. Efforts were made to ensure a fair distribution of the investment among these communities. For instance, it was decided that out of the three electric buses purchased with the settlement money, one would specifically serve Peoria's most economically challenged neighborhood. Furthermore, energy efficiency improvements, including basic repairs necessary for efficiency upgrades, were targeted towards low-income households in the area. Additionally, some of the funding was directed towards the installation of solar panels on firehouses and community centers located in low-income neighborhoods.

The Energy Empowers East Africa Program, a joint effort of USAID and Berkeley Lab, aims to increase the inclusion of women in electrification programs throughout East Africa, unlock the benefits of modern energy access for women, and enhance their role as change agents in promoting clean, affordable, and efficient energy use. It is designed to empower women to develop and expand income-generating activities by providing training, shared experiences, and improving access to efficient and productive electric equipment (PUE). The program focuses on increasing the efficient productive use of energy in small and medium-sized enterprises run by women. 

In Uganda, USAID, and Berkeley Lab partnered with an energy advisory firm, Clean Energy Enthusiasts, to deliver the project. It commenced with a series of focus group discussions to invite local perspectives and then conducted a survey of small business owners on the challenges of accessing and financing efficient electric equipment. The survey involved: 578 participants (small-medium, women-owned businesses in urban and peri-urban areas) across 8 districts in Uganda; 38 financial institutions to understand challenges and opportunities in the access to finance component; and 22 local vendors to understand market constraints and opportunities for PUE equipment. 

Data and insights from the survey drove the second phase of the project implementation, the project team developed customized training materials and presentations. A total of 240 women small business owners in eight districts across Uganda received the five day training. It included equipment demonstrations, case studies, success stories from guest speakers, and group discussions, and also helped the women develop business plans that assess the cost and benefit of investing in productive and efficient electric equipment to scale up businesses. 

Matchmaking events were organized to bring together women entrepreneurs, financing houses, equipment vendors, utility officers, government officials from the Ministries of Gender and Energy, women groups associations, and entrepreneurial support programs. These events were intended to help women entrepreneurs to find resources and present their business plans to financing institutions to help them grow their businesses.

The program also offers small grants as seed funding for investment in efficient and productive equipment.

To address a shortfall in available housing in Bhutan, particularly among low income groups, the government in partnership with the Asian Development Bank (ADB) funded the Green and Resilient Affordable Housing Sector project. Its main aims were to construct climate- and disaster-resilient, energy efficient, and affordable housing units and public facilities for low-income households, and to strengthen institutional capacities, policy, and regulatory framework governing the housing sector.

To use the project in a way that also tackles gender inequality, gender equality was considered among the eligibility criteria when selecting beneficiaries for new housing.

Further, as part of the project, the ADB also developed a Gender Equality and Social Inclusion Action Plan that outlines various measures aimed at tackling inequality. The Action Plan includes the intention to establish several integrated service centres that provide shelter and support services for women and girls, including counselling on issues such as domestic violence and sexual exploitation. There are also plans to conduct awareness programs on hygiene, sanitation, waste management, and efficient water usage. The Action Plan also includes measures targeting capacity building on gender mainstreaming, and support for development of gender-sensitive policies.