
Context
The energy transition is a challenge and a necessity for Mexico’s economic transformation as, on the one hand, the country spends 7.6% of its GDP on fossil fuel subsidies and, on the other hand, in 2020 it was estimated that the economic impact of climate disaster increased by 202%. Indeed, to achieve a successful energy transition and secure a sustainable growth path, Mexico needs to modernise its energy sector, reduce reliance on fossil fuels, and ensure sustainability. However, it is necessary to start from the territory, involving communities in the co-construction of resilience and the strengthening of local productive chains. Community and cooperative models play an essential role in promoting the creation of collective businesses managed in a democratic and solidary manner.
An example of just transition opportunities are energy cooperatives. They are a clear and promising model that involves local communities in the production, distribution and consumption of renewable energy, promoting decentralisation and democratisation of energy, especially in those territories historically and systematically excluded.
However, research conducted in Mexico during the first phase of the Research Facility on Inequalities showed low wealth sharing and limited social mobility in the country. In this context, it is necessary to address the just energy transition from an intergenerational social mobility approach and a social perspective to ensure benefits for the whole society.
This project is part of the Extension of the EU-AFD Research Facility on Inequalities. Coordinated by AFD and financed by the European Commission, the Extension of the Facility will contribute to the development of public policies aimed at reducing inequalities in four countries: South Africa, Mexico, Colombia and Indonesia over the period 2021-2025.
This work is also part of AFD's dialogue with the Mexican authorities on options for diversifying the economy and reducing inequalities.
Goal
In partnership with the Centro de Estudios Espinosa Yglesias (CEEY) and in collaboration with the National Institute of the Social Economy (INAES), this research project aims to develop a conceptual and analytical research input for a better understanding of the role that renewable energy cooperatives can play in reducing inequality and increasing social mobility, and how they can be financed.
This input will:
- Conceptualise the just energy transition approach in the area of existing structural inequalities;
- Make a diagnosis from the perspective of intergenerational social mobility, as well as from the perspective of social and solidarity economy, and its relevance in the framework of just transitions, in order to establish identification criteria, social selection and prioritisation of projects;
- Use this diagnostic to propose criteria for the identification and selection of projects that prioritise the populations with the greatest disadvantages of origin (with the least space for social mobility), given the requirement of «no losers» of the just transition;
- Review and articulate technical issues related to decentralised energy and distributed generation, given their importance in the social economy in the just energy transition;
- Review the current INAES projects related to the subject in order, where appropriate, to guide the construction of identification and selection criteria.
Method
The research team will first conduct an exhaustive review of literature focused on environmental justice, climate justice, social mobility applied to environmental justice and intergenerational environmental justice. The literature will be analysed from the perspective of the energy transition and the intersection of these issues.
Based on this review of literature, researchers will develop a conceptual framework to understand the just energy transition in the field of current structural inequalities. It will also explain how this conceptual framework can be relevant for public policy decision-making.
The research team will also identify information gaps and research needs, with a special focus on the study of just energy transitions.
Results
You will find below the different research papers related to this project:
In progress
Contact:
- Anda David, research officer at AFD and scientific coordinator of the Facility

Context
As recent figures indicate, inequality and poverty in Colombia have increased in recent years, especially after the Covid-19 pandemic. The deterioration of these indicators places Colombia among the most unequal countries in the world. The Multidimensional Diagnostic on Inequalities in Colombia also demonstrates that gender gaps are particularly prevalent in the country. Indeed, employment rates are lower for women than for men at all levels of education. For example, in 2020, while the employment rate of women without any level of education reached 31%, for men it was 65%.
In this context, the Colombian government is committed to reduce the gaps between population groups and between territories and has identified closing gender gaps as one of its priorities. Given this situation, it is critical to delve into the understanding of the causes and solutions to inequality, and identify ways through which inequality can be reduced through public policies, social spending and fiscal policy.
In order to support the Colombian government in the development of public policies aimed at reducing inequalities, the Extension of the EU-AFD Research Facility on Inequalities, in close collaboration with local research centres and local authorities, has already:
- Elaborated the Multidimensional Diagnostic on inequalities and generated statistics on inequalities with the National Administrative Department of Statistics (DANE). The diagnostic is a statistical overview of inequalities from multiple angles that seeks to support public policy decisions by providing key information for the reduction of the most important gaps in the country.
- Implemented a fiscal incidence analysis through the methodology of the Commitment to Equity (CEQ), and, in close collaboration with the Ministry of Finances, elaborated a tool, which enables to assess the impact on inequalities of the latest tax reform in the country, through micro-simulations.
These two studies opened the door to new possibilities of analysis that provide data, information and relevant knowledge for the Colombian Government as an input to strengthen the design, implementation and monitoring of policy instruments that can reduce the inequality and gaps between population groups, especially those of fiscal policy and social spending.
This project is part of the Extension of the EU-AFD Research Facility on Inequalities. Coordinated by AFD and financed by the European Commission, the Extension of the Facility will contribute to the development of public policies aimed at reducing inequalities in four countries: South Africa, Mexico, Colombia and Indonesia over the period 2021-2025.
Goal
This research project will use innovative methodologies to take advantage of the information derived from the merging of surveys, databases and administrative records to strengthen the understanding of the impacts of the fiscal and spending measures of the Colombian government on closing gender gaps, and more generally, to strengthen the analysis of income inequality measures in Colombia.
This study also aims to generate an in-house capacity allowing the Government of Colombia to continue reporting and analysing new inequality metrics that inform the design of more equitable public policies in the country.
Method
The research project will:
- Develop a methodology for the analysis of the impacts of fiscal and government spending measures on closing gender gaps and income inequality in Colombia, based on the CEQ tool;
- Determine the necessary methodological and operational components that will be updated on a recurring basis by different actors involved in public policy decision-making;
- Estimate a battery of indicators of the impact of fiscal, tax and social spending policy on gender gaps.
The analysis will use surveys, databases of supply and demand of social programs, as well as administrative records and tax information of natural persons, integrating them into a CEQ model. These data will serve as a basis for the inclusion of the gender approach and for the analyses that will be carried out as part of this research.
Throughout the research, working groups will be organised with the National Planning Department, the National Administrative Department of Statistics, the National Tax and Customs Directorate and other stakeholders who can contribute to the conceptual and methodological development of the research, the analysis of the results and the application of the tool to policy processes.
Results
You will find below the different research papers related to this project:
In progress
Contact:
- Anda David, research officer at AFD and scientific coordinator of the Facility
Contacto:
- Anda David, investigadora senior en la AFD y coordinadora científica de la Facilidad