FacebookTwitterLinkedInCopy LinkEmailPrint
What is "Just Transition"?

Managing Coal Mine Closure: Achieving a just transition for all

This paper narrates the lessons and key considerations for planning and implementing a coal mine closure program, as derived from a review of global experiences and over two decades of World Bank assistance in coal mine closures to governments, enterprises, workers, and their communities.

Detail

The paper, using a review of global experiences and the World Bank’s decades of assisting governments to close mines, provides recommendations to policymakers on how to plan and implement a coal mine closure and mitigate the impacts on the people, communities, and livelihoods. The article highlights the typical characteristics of coal mining communities, which influence the potential for regional recovery after a closure. Many coal-dependent regions continue to lag behind other regions socially and economically, decades after a mine has been shut down. It further highlights how there are few if any instances of fully satisfactory economic rejuvenation outcomes in mono-industry coal mining towns, thereby emphasizing the acute need for early and careful planning to deal with the impacts of a closure.

The paper identifies nine lessons learned from managing coal mine closures, which are organized under three themes—namely policy and strategy development; people and communities; and land and environmental remediation. The policy and strategy development theme emphasizes that coal mine closures require clear policy direction, large budget outlays, and significant stakeholder consultations. The section on people and communities underlines the importance of a Just Transition for All to meet the needs of workers, families, and the wider community. The land and environmental remediation strategies advance the importance of financial planning for environmental remediation and land reclamation and summarizes a range of possible financial assurance mechanisms available. Some of these mechanisms are mobility assistance, employment services and small business support services, social assistance payments, and various financial assurance mechanisms for mine closures.

A Just Green Recovery from COVID-19

This paper highlights how the Covid-19 recovery window offers a rare opportunity for accelerating the green transition and examines recovery measures through the lens of a just transition.

Detail

This paper highlights how the Covid-19 recovery window offers a rare opportunity for transforming economies and accelerating the green transition. There is renewed openness to large-scale public investments, as governments seek to restore their economic health, boost long-term growth potential, and accelerate decarbonization. But the inequality, exposed by the Covid-19 crisis, also demonstrates the need for policies that can advance equity and justice.

The paper examines green recovery measures through the lens of a just transition. The authors use three key dimensions of a just transition—distributional impacts, social inclusion, and transformative intent—to assess green recovery interventions around the world. They highlight promising examples of just and green recovery measures in various countries and suggest policy insights, with principles and best practices for future action.

Workers and Communities in Transition: Report of the Just Transition Listening Project

The report synthesizes lessons from more than 100 listening sessions with labor and community groups to gather their perspectives on transitions as well as identifies how coalitions have come together and what pathways exist to a just future.

Detail

The findings of this report are derived from more than 100 in-depth listening sessions, including qualitative interviews and focused discussion groups with workers and community members from across the United States, which were conducted in 2020. The sessions, typically lasting an hour or more, involved workers from dozens of unionized and nonunionized industries; union leaders; members of frontline communities, including environmental justice communities, communities of color, and Indigenous communities; along with leaders from labor, environmental justice, climate justice, and other community organizations.

The aim of the sessions was to capture the voices of the workers and community members who had experienced, are currently experiencing, or anticipate experiencing some form of economic transition. The report suggests how past transitions, driven by market forces, corporate entities, and shortsighted public policies, often leave workers and communities largely behind, with little to no support. As such, community trauma has gone unrecognized and unaddressed for years.

The report identifies several themes that have emerged through these sessions, including a picture of what transition entails; how coalitions have come together, particularly those including labor and environment groups; how common vision and strategies for change are built; and what pathways to a just future exist. The report also highlights how individual and collective understandings of transitions range widely, according to type of work, class, gender, race, age, political ideology, previous experiences with environmentalists or the climate justice movement, and relationships with unions and the community. The report affords insightful reading and covers recommendations for policymakers; labor and movement organizations; and future research to fill in the identified gaps in knowledge, including understanding how sectoral transitions such as automation, digitalization, hybrid working, and health care could be done in an equitable manner.

Just Transitions for the Miners: Labor Environmentalism in the Ruhr and Appalachian Coalfields

This report argues that labor environmentalism with a tradition of neo-corporatism is best positioned to support a just transition for affected workers with the help of examples from Ruhr (Germany) and Appalachia (United States).

Detail

This report challenges the idea that corporatism holds back environmental reforms and prevents workers from meaningfully participating in the decisionmaking process of a coal transition. Using two case studies, it highlights how militant unions with a tradition of neo-corporatism are best positioned to demand just transitions for their members. The author draws on existing literature to identify industrial militancy as: radical opposition to managerial prerogatives; deep advocacy for workers’ rights; a belief in industrial democracy and rank and file control over working conditions; along with support for collective action.

The author makes a case for industrial militancy by using the example of the German neo-corporatist approach of Ruhr and Saarland, a set of practices whereby governments, unions, and employers set the industrial policy together. Through this collaborative approach, the unions and workers’ militants achieved success on behalf of the coal miners. The author compares their success to the limited corporatism approach of the Appalachian coal unions and argues that the failure of the United Mine Workers of America (UMWA) to achieve a just transition is due to a lack of democracy within the governing system and the absence of the union members’ militancy. The author suggests that the environmental and social achievement of the German coal unions stems from militant activism. A similar approach could benefit the UMWA in achieving a just transition for its miners and their communities. The author concludes that balancing the concerns of labor with the environment requires some degree of worker control over the industrial policy and disruptive militant activism.

Jobs in a Net-Zero Emissions Future in Latin America and the Caribbean

The report details a decarbonization pathway for Latin America and the Caribbean region, identifies expected labor changes in various sectors, and focuses on equity considerations needed in each of the affected sectors.

Detail

This report takes a detailed look at decarbonization pathways in the Latin America and the Caribbean region and highlights the potential to create 15 million net jobs in sectors, such as sustainable agriculture, forestry, solar and wind power, manufacturing, and construction during such a transition. The report suggests that, with adequately-designed measures to ensure that these jobs are decent and that those who lose out in the transition are protected and supported, recovery plans can create climate benefits, while also boosting growth, tackling inequality, and making progress towards the Sustainable Development Goals.

This report is based on an input-output analysis using a Global Trade Analysis Project Power database, a commonly employed tool for assessing the direct and indirect environmental and socioeconomic impacts of decarbonization efforts. The study finds that only three sectors would shrink in the transition to a decarbonized economy: 1) fossil-fuel based electricity, with about 80,000 jobs lost, or more than half of the current number; 2) fossil-fuel extraction, with almost a third of the current number, or 280,000 jobs eliminated; and 3) animal-based food production systems, with five percent of current jobs lost, representing half a million jobs.

The report provides a sectoral overview of the region and highlights how it is still struggling with gender and ethnic inequalities, skills gaps, insufficient social protection, and a large informal sector, despite more than a decade of steady progress. Prevailing decent work deficits, inequalities, and dependence on fossil fuel exports are expected to make Latin America and the Caribbean particularly susceptible to the social and economic impacts of climate change. The report also identifies the critical need for fairness in this transition and devotes a chapter to identifying the sector-wise equity and justice considerations needed to allow a successful transition in sectors that include energy, agriculture, forestry, waste management, tourism, transport, and construction.

Can government transfers make energy subsidy reform socially acceptable? A case study on Ecuador

The report looks at the impact of energy subsidies in Ecuador and its distributional effects as well as explores the scenarios of how the subsidies could be removed and replaced to confer benefits to vulnerable households equitably.

Detail

The report identifies the impact of energy subsidies on public finance in Ecuador and looks at the distributional impacts of subsidies. To inform policy design, the authors use the household survey data from Ecuador, in combination with augmented input-output data, to assess the distributional impacts of energy subsidy reform. Energy subsidies account for about seven percent of Ecuador’s yearly public spending or two-thirds of the fiscal deficit. The study finds that it costs USD20 to transfer USD1 to the bottom income quintile through gasoline subsidies; USD10 through electricity; USD9 through diesel subsidies; and USD5 through liquefied petroleum gas (LPG) subsidies. Relative to household income, subsidy removal without compensation would be regressive for diesel and LPG, progressive for gasoline, and approximately neutral for electricity.

While removing these subsidies would yield clear economic and climate benefits, the expected adverse effects on vulnerable households are likely to make such reforms politically difficult. The authors analyze how a fraction of financial resources, freed up by the subsidy reform, could be used to mitigate the income losses of poor households by means of in-kind and in-cash revenue recycling schemes. The results indicate that removing all energy subsidies and increasing the existing social protection program, Bono de Desarrollo Humano, by nearly USD50 per month would confer net benefits of almost 10 percent of their current income to the poorest quintile and also free up significant amounts in the public budget.

The authors also conduct expert interviews to evaluate the political and institutional challenges related to the energy subsidy reform. They identify two combinations of reform options and recycling schemes that would benefit the poorest 40 percent of households, namely eliminating subsidies on gasoline, while increasing the amount transferred to vulnerable households through Bono de Desarrollo Humano; and replacing the universal LPG subsidies with targeted LPG vouchers. The authors suggest that countries in Latin America may benefit from increasing energy prices to fund development programs, reduce public deficits, and incentivize a transition to a low-carbon economy. The cash transfer programs of the region could be an instrument to reduce the impact of energy price hikes on poor consumers, thereby making price reforms more palatable.

The Risk of Fiscal Collapse in Coal-Reliant Communities

This report analyzes the future of coal under various economic scenarios and the bond markets in three coal-dependent counties in the United States (U.S.) and makes recommendations on how these counties can avoid the fiscal collapse that can have an impact on regional economies through the bond market.

Detail

This paper looks into the long-term implications of the federal climate policies on the coal-dependent counties’ economy across the U.S. and discusses what it would mean for future coal production. Additionally, it examines a potential spill out to the national economy through the national bonds market and proposes the measures necessary to both reduce the risks associated with bonds issued by coal jurisdictions and ensure the economic resilience of those counties.

The authors argue that coal mining across the U.S. has declined in the last decade, due in part to new environmental regulations imposed by the federal government. Focusing specifically on three counties (Mercer, Boone, and Campbell), they further analyze the regions’ fiscal exposure to coal and various carbon pricing scenarios, and predict a fall in the counties’ revenues under stringent climate policy scenarios.

Additionally, the authors examine the bonds issued by coal jurisdictions, arguing that municipal bonds are becoming volatile due to “budget pressure” and extreme weather conditions. Moreover, they caution investors against the “vague and incomplete” disclosures of risks associated with coal assets, citing the economic defaults of late 1970 and the early 1980s due to their negligence on risk exposure associated with nuclear power bonds. The authors conclude with recommendations for local economic diversification, urging the federal government to invest more in programs that ensure worker retraining and the provision of other social benefits. They further suggest combining climate policies with investment to ensure the financial health of coal-dependent counties.

 

Europe’s coal regions: Boosting employment, environment, economy through ‘just transition’

The report, aimed at the European Union (EU), national and local policymakers, looks at coal regions in Poland, Greece, and Bulgaria and assesses the consequences of decarbonization for the local labor market; identifies alternative economic activities that could transform the economic structure of the region; as well as defines the tools and support needed to effectively plan and manage the process.

Detail

The report takes a detailed look at expected local employment and community-related impacts in Silesia and Eastern Wielkopolska in Poland; Western Macedonia and Megalopolis in Greece; and the Pernik and Bobov Dol regions of southwestern Bulgaria. Furthermore, it also offers recommendations on the biggest Bulgarian coal region, Stara Zagora. The authors report that, as of March 2021, half of Europe’s coal plants had already shut down or set a closure date. The study profiles individual regions and highlights key findings related to employment and wage prospects, lost income from indirect jobs, the types of jobs to which mining workers could transition, and the expected delay before economic benefits from the transition accrue.

It finds that planning, local participation, transparency, and a commitment to ending fossil fuels are crucial aspects for all the regions. These aspects, along with financing, can turn coal communities into sustainably and economically thriving places to live. The report makes recommendations for EU policymakers to consider while approving the Territorial Just Transition Plans that include: the verification of the “Partnership Principle”; the prevention of further investment in fossil-intensive industries; the application of the “polluter pays” principle; the provision of support for all workers affected; and the alignment with other EU funds. The report provides additional recommendations to national and local policymakers to ensure a just transition.

Transitioning to Sustainable Agriculture Requires Growing and Sustaining an Ecologically Skilled Workforce

The authors suggest that agribusiness practices in the United States that pursue productivity as the primary goal, have been trending in an unsustainable direction and propose that place-based knowledge development, agroecological practices, and decentralized decision-making are key to sustainability in the agricultural sector.

Detail

The article argues that agricultural practices in the U.S. are unsustainable and unjust to farmers, largely because of agribusiness and supporting policies. Over the past century, U.S. agriculture has been trending in an unsustainable direction, rapidly replacing knowledgeable people with non-renewable resources and eroding rural economies in the process. The authors suggest that U.S. policies, technologies, and economic pressures have tended to “deskill” rural labor—a trend that has been linked to labor under capitalism in general. They cite a national census that counted 6.5 million farms in the 1920s, with only 2.04 million left by 2017.

The authors argue that agroecological farming systems mimicking natural ecosystems that create tightly-coupled cycles of energy, water, and nutrients are already known to farmers and researchers. As such, they offer a well-studied pathway to an agricultural transition. A critical and under-appreciated feature of agroecological systems is that they replace fossil fuel- and chemical -intensive management with knowledge-intensive management. The authors argue that the biggest challenge in achieving agricultural sustainability is the replacement of non-renewable resources with ecologically-skilled people in ways that create and support desirable rural livelihoods.

The authors suggest ways in which U.S. policy could pivot to enable and support the ecologically skilled workforce needed to achieve food security and decent livelihoods. They highlight the need to: provide enabling conditions for new farmers to enter the system and sustain a decent livelihood; develop agroecological skills and supporting policy tools (or removal of policies that currently act as a barrier); decouple farmers from the trap of overproduction and low market prices; and strengthen farmer-to-farmer networks to promote knowledge exchange. The authors also briefly lay out the history of discrimination and injustice in the agricultural system in the U.S. and highlight the need for a foundational commitment to justice to guide the allocation of resources, affirm rights, and prioritize the agricultural needs of historically marginalized groups.

Enabling a just transition to a low-carbon economy in the energy sector: Progress and lessons in Emerging Markets

The report looks at the scope of just transitions in the energy sector in emerging markets, specifically Brazil, Russia, India, China, and South Africa (BRICS) as well as the Next 11 countries, through a simplified framework.

Detail

The report takes a broad look at the enabling environment for just transitions in the energy sector in BRICS and the Next 11 countries through a framework that considers the macroeconomic and energy sector conditions, employment policies, and social structures in these countries.

The report finds that employment policies that exist across the countries, while key to economic growth, are often disconnected from the energy transition and wider macroeconomic planning. While the authors briefly map out the stakeholder base involved in just transitions in the energy sector, the report focuses on the role played by the government, businesses, and workers. The report posits the key role that state-owned enterprises (SEOs) have to play in enabling a just transition and identifies the absence of engagement platforms as a hindrance to effective dialogue.

The report applies a framework that uses transition indicators to broadly illustrate each country’s level of readiness for a just transition. However, the effectiveness of the indicators in representing procedural justice and inclusion issues will have to be assessed further.