Last updated July 29, 2020 at 11:00 am
“Success requires looking after the interests of workers, local communities as well as the energy industry, but not forgetting the interests of energy users and taxpayers.”
Why This Matters: Let’s be prepared for change.
Coal will need to be phased out of the world’s economy to meet the climate change challenge, but this can work properly only if social objectives and local stakeholders are involved in the process.
A coal phase-out will require a process of ‘just transition’ that focuses on the rights and livelihoods of workers and agreed roadmaps, appropriate policy instruments, and effective ways to include workers, regions and industry in the process, the group say.
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They argue that coal phase-out must be seen as fair and take account of political realities, which may mean effectively compensating affected groups and counterbalancing powerful vested interests.
The study was led by researchers at the Mercator Institute in Berlin and co-authored by academics and researchers from Australia, the UK, Germany, India and the United States. Professor Frank Jotzo from The Australian National University (ANU) was part of the team.
The transition away from coal can be difficult
“In Australia, coal use is invariably on the way out, as renewable energy is now the cheaper way of producing electricity from new plants, and Australia’s coal power plant fleet is relatively old. Coal is also being phased down quite rapidly in much of Europe and North America,” says Jotzo.
“The lesson from the experiences in other countries is that closures need to be planned ahead of time, giving time to seed alternative business activity. Success requires looking after the interests of workers, local communities as well as the energy industry, but not forgetting the interests of energy users and taxpayers.
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“More coal plant closures will come, and probably sooner than many people think, as power prices have fallen and the competition from renewables is strong. Let’s be prepared for the change.”
Overcoming the ‘us and them’ mentality
“These issues can be very contentious and even divisive. Everyday people need to be given the space to grapple with the complex social challenges of planning for a prosperous, low-emissions future,” Colvin says.
“This can mean governments and industry investing in genuinely participatory processes to make possible conversations across political and social divides, especially in regions that will experience the changes.
“A ‘just transition’ for regional communities requires overcoming the ‘us and them’ mentality promoted in the national political discourse.”