April 5, 2022 — To address the increasingly urgent climate crisis, policymakers and experts agree that economies need to transition away from coal, but many economies continue to depend on it. Although the conflict in Ukraine has increased volatility in global energy markets, the urgency of the coal transition remains unchanged.
In the past 20 years, coal-based energy production has grown rapidly, driven primarily by rising demand for electricity. The developing world has more than doubled its per capita electricity consumption since 1990, driving up global demand for coal. Because coal remains a major part of economies and communities, transitioning away from it presents many challenges.
A new World Bank report, Global Perspective on Coal Jobs and Managing Labor Transition out of Coal, finalized December 2021, reviews these challenges through the lens of five countries. The report explores what impedes coal phase-out in Indonesia, South Africa, and India. It also draws lessons from past transitions in Poland and the United States, which have already experienced extensive mine closures.
The report offers recommendations on how governments can prepare for job losses that arise from future mine closure and highlights policies to support workers through the transition period and into alternative employment.
