Without Capacity, There Is No Just Transition

When world leaders talk about the just transition, they usually invoke two levers: finance and technology. A third lever, capacity building, is too often left behind.

Insights

27.08.2026

written by Steve Nicholls

Without Capacity, There Is No Just Transition

When world leaders talk about the just transition, they usually invoke two levers: finance and technology. A third lever, capacity building, is too often left behind.
Without capacity, no amount of finance or technology will deliver justice. Capacity is what allows societies to set their own agendas and organise action in their own interests. It is what transforms outside support into genuine self-determination. Without it, the future of developing countries will continue to be written by others.

The United Nations recognised this when it defined capacity building as one of the three Means of Implementation. Yet in practice, it is the “least-favoured child.” Global capacity efforts have been underfunded, fragmented, short-term, and focused mainly on training individuals rather than strengthening institutions and systems. The result is uneven outcomes and widening gaps between the Global North and South.

The numbers tell the story. ClimateWorks reports that of the $1.7 billion foundations invested in climate in 2022, only $65 million went to capacity building, most of it directed to the North. This imbalance perpetuates global inequality and undermines the very idea of a just transition.

But capacity building is not just about skills workshops or scholarships. It is about creating ecosystems where individuals, institutions, and systems reinforce each other. That means strong think-tanks, universities, research hubs, community organisations, and government agencies that can anchor careers, shape policy, and influence investment decisions.

Crucially, this must be locally led. Imported models cannot account for the realities of African economies, politics, and societies. Locally led efforts identify where gaps lie, stimulate potential, and respond to socio-economic needs with sensitivity. They build environments where knowledge is shared across sectors and where policy is grounded in lived realities.

This matters because finance and technology cannot work in a vacuum. Without local planning capacity, new funds and technologies risk being misapplied, poorly absorbed, or skewed towards elite interests. With it, they become tools for justice, enabling communities to chart development pathways that align with both climate goals and national aspirations.

At African Energy Futures, we believe that building such capacity, starting with the energy systems critical for development, is the missing link in the global climate and development effort. That is why we are convening a partnership of institutions to coordinate local, multi-disciplinary, and inclusive capacity-building ecosystems. Our focus is not only on empowering individuals but also on strengthening institutions and systems so that they can endure, evolve, and shape the future.

AEF will launch its first US$1 million call for proposals on 3 December 2025.

The truth is stark: without capacity, the dream of self-determination in the just transition will remain out of reach. If the world is serious about justice, then funders, governments, and partners must stop treating capacity as an afterthought and start seeing it as the foundation.

It also means that we must lead. African researchers need to put in the hard work to build multi-disciplinary communities that can drive change. This is a community effort that only Africans can organise.

Over time, African Energy Futures will establish 20 hubs of researchers across Africa who will anchor an African network focused on African solutions, and who will train over 400 African energy analysts. Better capacity will result in better planning and therefore better policy and investment environments.

Steve Nicholls

Steve Nicholls is the Director of African Energy Futures. He was previously the Head of Mitigation at South Africa’s Presidential Climate Commission and Head of Environment at the National Business Initiative. Understanding future global economies and the investments required to enhance South Africa’s economic competitiveness while creating employment and reducing inequality and poverty are his key focus. He has led and contributed to several economy-wide energy and economic studies, especially regarding energy transitions.

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Without Capacity, There Is No Just Transition

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