Climate change is happening, and the consequences of it are becoming increasingly visible. Climate goals have been set in the Paris Agreement to stop climate change. The goal in the Netherlands is to reduce emissions in 2030 by 55% and achieve net zero by 2050.

An essential element in achieving these goals is the energy transition. These goals can only be achieved if everybody contributes to this energy transition This also means that underprivileged neighbourhoods will have to participate.

Several research projects have been performed on governance, but few or none have focused on governance issues concerning energy transition in underprivileged neighbourhoods so far. Therefore, a knowledge gap exists regarding the governance arrangements in the energy transition in underprivileged neighbourhoods.

The exploratory approach was chosen. A case study was performed in the neighbourhood Bospolder-Tussendijken. Data was gathered by performing a desk study and conducting thirteen interviews with directly involved stakeholders and experts. The data gathered have been used to analyse the decision-making process using the IAD framework, the four-layer model, and the energy justice decision-making principles. Furthermore, the seven basic elements of governance arrangements have been addressed.

In the neighbourhood of Bospolder-Tussendijken, the energy transition is focused on the disconnection of natural gas and towards the connection of a district heating grid. On the neighbourhood level, three major players are present, the municipality of Rotterdam, Havensteder and Eneco, who came to an area agreement. This impacted the decision-making since the alternative and the project area were decided. The decision-making between these parties is influenced by the Climate Agreement, subsidies and the collaboration agreement with energy-related stakeholders in the neighbourhood.

However, this did not result in a completely just energy transition. The influence of neighbourhood residents on the decision-making process was negligible, and the information provision towards residents was mainly project-focused. Everyone who lived within the project area could connect to the district heating grid. The coupling between gas and heat prices is troubling, even more because Eneco asks for the maximum tariff the ACM allows. This affects the affordability, especially in this poor neighbourhood. Next to this, the project costs were much higher than expected. District heating can be considered more sustainable than natural gas. Compared with alternative solutions, it does not cover the cooling needs during summer.

To perform a more just energy transition, a governance arrangement is proposed with changes made on the national, municipal, and neighbourhood levels.
The higher levels of government could take more decisive and consistent positions.
On the municipal level, municipalities are advised to revise their transition visions heat.
On the neighbourhood level, residents should be involved by letting them clarify their position. They can get involved by educating about the energy transition. The active citizens should get a seat at the decision-making table.

With this proposed governance arrangement, a more just and efficient energy transition could be performed in underprivileged neighbourhoods. This research provides multiple additions to the current debate about a just energy transition.