Just Energy Transition in the Media – July 5, 2024
We round up the latest just energy transition news stories in the media.
Indonesia’s Just Energy Transition Programme (JETP) can advance without substantial grant support, according to Simon Cooper, CEO of Corporate, Commercial and Institutional Banking at Standard Chartered, a key lender supporting the initiative as part of the Glasgow Financial Alliance for Net-Zero (GFANZ). Grants are helpful for costly projects like early coal plant retirements, but they aren’t crucial for commercially viable initiatives, such as solar and wind power projects. Indonesia is seeking more grants for grid infrastructure, as current funds primarily target renewable power plants.
The USD 8.5 billion funding package pledged by developed nations to support South Africa’s just energy transition has been slow to materialise, but progress is being made, according to the country’s National Treasury Deputy Director-General Mmakgoshi Lekhethe. So far, USD 2.4 billion has been raised, with an additional USD 2.3 billion to USD 2.4 billion expected in 2024. Delays in funding are also attributed to state-owned enterprises such as Eskom and Transnet, which are hesitant to take on additional debt. Negotiations to secure more grants are ongoing.
The ContourGlobal Maritsa East 3 coal-fired power plant in Bulgaria is cutting its workforce from over 200 employees to just 35, as a result of low electricity prices and high costs from the EU’s Emissions Trading System making operations unprofitable. Workers being laid off will receive severance pay averaging 9 months’ salary. While the state-owned Maritsa East 2 plant received a one-year government lifeline, ContourGlobal is pivoting to solar and battery projects, underscoring the challenges coal power is facing in the current energy market.
Weeks after Alberta’s last coal-fired power plant shut down, the Canadian federal government announced over CAD 39 million in grants to help six affected communities transition to cleaner energy. The funding will support 10 projects, including training centres, industrial parks, and community amenities. Parkland County, which lost 800 jobs, will receive nearly CAD 30 million for infrastructure upgrades. Other grants will fund projects including a solar park feasibility study, industrial park development, and business incubator renovations in various towns across Alberta.
A new toll-free hotline called ENGAGE! has been launched in South Africa to combat distrust in the renewables sector and improve community engagement. Developed by Cultiver with support from Enel Green Power, the hotline allows communities to raise concerns, seek information, and ensure they benefit from local wind farms. The hotline has already addressed issues including funding transparency and worker grievances. Although praised for its inclusivity, some experts note that because it needs to be funded by the owners of renewables projects themselves, not all companies may adopt it.
North Macedonia has secured a EUR 26.4 million grant from the European Bank for Reconstruction and Development to establish an education centre focused on training the workforce for the country’s energy transition. This initiative is part of a broader strategy to phase out coal by 2032, which includes converting major coal-fired power plants to renewable energy, investing in photovoltaic and mini nuclear power projects, and creating green jobs to offset the impact on the 2,500 workers employed at the Elektrani na Severna Makedonija thermal power plant.
The inaugural report from South Africa’s Presidential Climate Commission criticises the slow progress towards achieving a just energy transition despite strong commitments. It highlights incoherent policies, weak governance, and inadequate funding as major barriers. The lack of consensus on coal phase-out and the insufficient support for local governments are hindering efforts to transition fairly, leaving vulnerable communities at risk. The report calls for more decisive action and better coordination to ensure that the shift from coal doesn’t exacerbate social inequalities.
A study by the University of Illinois Urbana-Champaign found that Illinois’ Climate and Equitable Jobs Act might have unintentionally caused perceived injustices in rural, predominantly white, communities by focusing too narrowly on marginalised groups. While prioritising benefits for these groups, the state overlooked burdens such as changes in land use and impacts of wind turbines on rural areas. This exclusion has led to claims of injustice, widened political divides, and slowed progress in the state’s clean energy transition.
Colombian state oil company Ecopetrol has launched the Colombian Institute of Petroleum and Transition Energies, a key initiative that is supported by President Gustavo Petro and signals a clear move towards diversifying energy sources. With an investment of USD 100 million to USD 200 million, the institute will focus on renewable energy, carbon footprint reduction, and water management, with the aim of supporting Colombia’s goal of achieving net-zero carbon dioxide emissions by 2050.
On August 2, 2024, Colombia’s Decree 0977, which aims to regulate the creation of “special mining districts for productive diversification” under Law 2294, was approved. These districts will coordinate mining activities and provide solutions to communities that are heavily dependent on coal and other mining activities. The decree will guide territorial delimitation and involve consultations with local and ethnic communities. The special mining districts will focus on formalising mining, promoting sustainable practices, and supporting the just energy transition away from coal, helping to transform Colombia’s mining sector through community involvement.
The International Energy Agency has launched a new Global Commission on People-Centred Clean Energy Transitions, building on the work of a previous commission from 2021. Co-chaired by Spain’s Deputy Prime Minister Teresa Ribera and Brazil’s Minister of Mines and Energy Alexandre Silveira, the commission aims to develop equitable energy transition policies that prioritise affordability and fairness. Featuring global leaders from various sectors, the commission will create strategies to ensure fair energy policies, with its findings to be presented to the G20 and at COP 30.
Chile’s Ministry of Energy is offering over 1,600 scholarships for technical training in nine regions of the country, with 30% aimed at women, 10% at Indigenous Peoples, and 10% at residents of “just transition” communes. The initiative, part of the county’s Human Capital Programme, seeks to address skills gaps in the energy sector and boost local employability. Key courses include training for class D electrical installers, with a focus on increasing female participation in the field, and electromobility courses.
In 2023, energy policy researchers from Beijing visited Chinese coal cities to assess the nation’s decarbonisation efforts. Despite China’s carbon neutrality goals, coal communities face uncertainty as mines deplete. The researchers found that policies favour coal businesses—with tax breaks, subsidies, and compensation—while workers receive minimal aid and only basic safety nets, leaving them unprepared for life after coal. The government must therefore empower local governments and non-governmental organisations to offer jobs training and business support for a just transition.
Thailand’s Power Development Plan (PDP2024) is failing to ensure a “just energy transition,” says the Bangkok Post, with the plan neglecting fair compensation for fossil fuel workers and overlooking essential energy market reforms. Neither is the plan promoting socially responsible renewable energy projects, instead focusing on unproven technologies such as carbon capture and large hydropower from Laos. Critics argue that PDP2024 is increasing the economic and environmental costs while not adequately addressing the social impacts of the energy transition.
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