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What is "Just Transition"?

Just Transitions: Focusing on South Africa and India

This podcast explores CoP26 agenda and key priorities for a just transition away from coal in two coal dependent emerging economies: India and South Africa.

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Chandra Bhushan with iFOREST and Jesse Burton with the University of Cape Town join Sandeep Pai (CSIS) to look at how key themes of just transitions are important in the context of CoP26 meetings.  They then discuss the key priorities on the ground for a just transition away from coal in the major economies of South Africa and India.

Just Transitions: Economic Diversification for Coal Dependent regions

This podcast looks at various opportunities and challenges for coal dependent regions in India and South Africa to create just and sustainable pathways to diversify their economies.

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Gaylor Montmasson-Clair with Trade & Industrial Policy Strategies (TIPS) and Srestha Banerjee with iForest join Sandeep Pai (CSIS) to explore the opportunities and challenges for coal dependent regions in India and South Africa to create just and sustainable pathways to diversify their economies.

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.

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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.

Assessing vulnerability from coal dependence and need for a just transition

This paper identifies the linkages that surround the Indian coal economy as well as the possible economic, societal, and cultural repercussions of a coal phaseout in the major coal mining states.

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This paper—the first of a two-part release from The Energy and Resources Institute (TERI)—lays out the socioeconomic and environmental contexts of the coal economy in India. The authors highlight the detrimental impacts that the phaseout is likely to have on: the livelihoods and social surplus across coal-dependent states; the coal royalties that make up a significant portion of the no-tax revenue for a state; the stoppage of social empowerment initiatives and infrastructural losses; along with the unintended losses of the financial and social structures functioning within the gray market of the coal mining industry.

The authors also draw out the disproportionate impact on women and the vulnerable within these communities expected from the phaseout. The authors contend that in a mixed economy like India, a just transition takes utmost precedence, because it not only aims to formalize the deeply informal coal sector, but also seeks to achieve the critical characteristics needed to fulfill the notion of an “energy democracy”. The paper also discusses how the existing regulatory framework cannot comprehensively handle the complex interlinkages that exist within the subsector of the informal mining segment, part of which is both licensed and illegal and part of which is artisanal in nature.

Towards a Just Transition Finance Roadmap for India: Laying the foundations for practical action

The report identifies priority actions for the financial sector in India to address social risks arising from the economic transition, with the help of a just transition framework that assesses the exposure by sector and region.

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This report, a product of the India Just Transition Finance Roadmap (JTFR) project, identifies some priority actions that financial institutions can take to support climate action that also delivers positive results in terms of livelihoods and sustainable development. It involves a review of existing practices, an assessment of exposure by sector and region, and the identification of some priority actions for the finance sector. The authors describe the just transition agenda as the “connective tissue” that binds climate goals with social outcomes.

The authors highlight how India simultaneously confronts the challenges of multiple economic transitions—urbanization, digitalization, and the shift to zero carbon. They identify the distributional impacts on Indian states in sectors that are expected to be the most impacted, including: coal mining, electricity generation, agriculture, manufacturing and industry, along with transportation. Using the four dimensions of social risk arising from the net zero transition—namely livelihoods, energy access, public finance, and human development, they find that Madhya Pradesh, Jharkhand, Chattisgarh, Uttar Pradesh, Bihar, Odisha, Telangana, and Rajasthan will be the most affected by the zero-carbon transition.

The authors suggest that the framework shows a possible mapping of risks to investments, highlighting the role that financial sector players, regulators, and policymakers need to play in ensuring that a just transition is achieved. Furthermore, they highlight how the framework can be used to provide guidance for investors to understand company operations in vulnerable regions, and whether there are any investment strategies capable of mitigating the risks in these regions. It can also provide guidance for investors seeking to align capital allocations with the just transition framework. From their conversations with investors, the authors identify how the just transition is still at an early stage of development in India and needs definition and how it needs to be placed in a core sustainable developmental context. Furthermore, the conversations also reveal that policy action is a crucial catalyst for a just transition and that shareholder engagement on just transitions is increasing.

Solar has greater techno-economic resource suitability than wind for replacing coal mining jobs

The article uses spatial analysis to explore the potential of renewable energy jobs directly replacing local jobs lost in the coal sector, with a focus on four major coal-producing countries, namely China, India, Australia, and the United States.

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With a focus on China, India, the United States, and Australia, the article uses spatial analysis to identify the local solar and wind capacities required for each coal mining area to enable all coal miners to transition to solar/wind jobs. It also assesses the resource availability in these areas and the scale of the deployment of renewables needed to transition coal miners in areas suitable for solar/wind power. The article suggests that the potential to create local jobs is crucial to a just and effective transition. Unlike other professional workers who migrate to find new jobs when they are laid off, most coal miners become “inactive” when they lose their jobs because of their strong connections to their communities, age, or skills.

The article finds that, with the exception of the U.S., several gigawatts (GWs) of solar or wind capacity would be required for each coal mining area to transition all coal miners to solar/wind jobs. In all four countries, only a small percent of coal mining areas have suitable wind resources. Furthermore, these countries would have to scale up their current solar capacities significantly to be able to transition coal miners working in areas suitable for solar development. The report highlights the need for a localized understanding of labor impacts and shows how spatial methodology can be used to conduct similar assessments.

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.

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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).

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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.

Just transition? Strategic framing and the challenges facing coal dependent communities

The author highlights the importance of strategic framing for policies and unpacks how the reframing of the issue, scale, and place of a coal-mine closure to deliver a “just transition” exacerbated the local sense of perceived injustice.

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Using an example from the Latrobe Valley in Australia, the author uses the paper to deconstruct how a series of strategic reframings were applied to a transition in a coal community and how they exacerbated the local sense of perceived injustice. The top-down strategy adopted deployed a series of reframings: defining the issue as ‘transition’, defining the scale of intervention as ‘regional’, and then creating a bespoke region as the arena of policy action. A multilevel governance arrangement, created to plan for the transition, was heralded by the policymakers as building local consensus and empowering local communities to take responsibility for the future. The author argues that, in practice, these moves excluded directly affected local constituencies, exacerbated the pre-existing local sense of injustice, and enabled redistributive funding to be diverted to unaffected adjacent areas.

The author argues that the deliberative ‘transitioning’ approach described in this paper failed because it sought to side-step local fears about the likely impacts of change. It deployed the technologies of governance—reframing, reterritorialization, faux deliberative engagement, and quantitative gymnastics—to make the problem of the industrial valley appear unproblematic. The conclusion stresses that progress on closing high emissions fossil-fuel activities requires a more sympathetic and politically astute understanding of place and the situation of affected communities.

The author also highlights how the strategic scaling of policy problems aims to make it easier for the dominant actors to control the policy process and shape the perceptions of the winners and losers of change. This paper contributes to the understanding of the strategic reframing of issues and scales of governance by highlighting their implications for the territorial arenas of policy action, which this paper calls “strategic place framing”. The paper advances the argument that when strategic place frames conflict with accepted territorial boundaries, they invite opposition and resistance, thereby limiting, to some extent, the potential of strategic issue and scale framing because of the political durability of territorial place frames.

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.

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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.