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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.

Transformative Climate Finance: A new approach for climate finance to achieve low-carbon resilient development in developing countries

The report highlights the need for the catalytic deployment of international public finance for climate finance and identifies eight levers for driving climate action, with just transition considerations seen as a necessary crosscutting theme to ensure progress.

Detail

The report identifies the mismatch between the amount of funding available and the amount needed for climate finance, thus highlighting the need to deploy international public climate finance more catalytically to increase the flows of private capital and government spending. The report identifies eight sets of financing levers for driving climate action: project-based investments, financial sector reforms, fiscal policies, sectoral policies, trade policies, innovation and technology transfer, carbon markets, and climate intelligence. For each of these levers, the report identifies the main interventions available, barriers to action, as well as the role and relevance of the instruments available. The report also broadly lists the mitigation and adaptation priorities across different sectors, including energy systems, land and ecosystem, the urban and infrastructure, as well as industrial systems.

The need for an equitable consideration of social and political economy issues in the countries and the regions to which they are applied is highlighted as a crosscutting issue across all levers. The report states that the use of climate finance to support this process, even when it does not achieve climate results directly, is essential for successful clean development. The report suggests that more can be done to refine the differentiation of climate finance to match the specific needs and circumstances of countries. This includes applying tiered conditionality for more advanced countries, which is dependent on their own efforts and orientation toward long-term strategies.

The report also acknowledges that a systematic and comprehensive analysis of the societal dimensions of transformative climate action covering all relevant sectors of the economy, along with the major types of transformative climate action, is still lacking. It states that the World Bank intends to contribute to closing this knowledge gap through a forthcoming report on the societal dimensions of transformative climate action.