Just Energy Transition in the Media – September 24, 2024
We round up the latest just energy transition news stories in the media.
During New York Climate Week in September 2024, Colombia unveiled a brand new USD 40 billion energy transition plan. The initiative mirrors global Just Energy Transition Partnerships (JETPs) but uniquely emphasises nature-based solutions. Allocations include USD 8.5 billion for ecosystem restoration, USD 4 billion for nature tourism, and USD 3.5 billion for sustainable agriculture, with the aim to reduce fossil fuel reliance, including coal, and support communities in the transition.
The Audit Board of Indonesia (BPK) has reported inadequate funding for the country’s renewable energy development, with only 60% of PLN’s IDR 230.2 trillion budget met in 2021–2023. Other key gaps identified include the absence of a steering committee for the energy transition mechanism, and an unformed Just Energy Transition Partnership governance structure, undermining renewable energy targets and causing potential electricity deficits. The BPK urges coordination among ministries to create governance structures and engage domestic financial institutions in financing the transition.
On October 29, 2024, Chile’s Ministry of the Environment launched a public consultation for its draft National Strategy for Just Socioecological Transition (ENTSEJ). This long-term strategy builds on existing efforts, including the Environmental and Social Recovery Programs (PRAS) underway since 2017, and the Just Socio-Ecological Transition Plans currently being implemented in Tocopilla and Mejillones. ENTSEJ aims to integrate social and environmental justice into Chile’s decarbonisation while supporting impacted communities. Public feedback is open until December 24, 2024, with regional workshops planned for community input.
Indonesia’s energy transition continues with high-profile projects including Southeast Asia’s largest Cirata Floating Solar Power Plant and the planned early retirement of the Cirebon-1 coal plant under the Just Energy Transition Partnership. Despite delays to the pledged USD 21.6 billion funding, the JETP has achieved key developments, including the formation of a central coordinating body to manage the transition, enhanced accountability measures, and strengthened oversight mechanisms to support Indonesia’s shift from coal to renewable energy.
South Africa’s new Just Energy Transition Partnership funding platform seeks to directly connect funders with beneficiaries like community organizations and labour unions, so as to address past issues of slow fund disbursement and limited community job creation. Previously, the USD 9.3 billion climate finance pact with G7 countries struggled to channel funds effectively, with most resources earmarked for infrastructure rather than local job creation. In its first year, this platform aims to fund 20 projects, worth ZAR 600 million (USD 34 million), that focus on tourism, agriculture, and renewable energy opportunities, especially in Mpumalanga.
A University of Cape Town study reveals that South Africa’s coal phase-out will affect more than 100,000 workers, who have diverse needs and who depend on their roles. Key recommendations include tailored support: younger workers require retraining for new industries, while older, less mobile workers need income support and local employment options. Policies also emphasise economic diversification and inclusive community engagement to address the unique challenges across worker groups in Mpumalanga.
In August 2024, during the Local Conference of Youth South Africa, young activists criticised the Just Energy Transition Implementation Plan for underrepresenting youth perspectives, noting that it mentions youth only 17 times, with minimal emphasis on young people’s role. Citing a 33.5% youth unemployment rate and ongoing apartheid-era environmental injustices, they call for stronger representation, targeted skills development, social protections, and green job opportunities to ensure that the transition addresses both economic and historical inequalities effectively.
In the Indian village of Chalkari, Jharkhand, coal mining projects promising economic growth have stalled before they began, leaving communities stranded. While just transition often focuses on economic diversification in coal-dependent areas, the situation in Chalkari highlights issues with land acquisition for projects that never materialise. Land was taken, but promised jobs and infrastructure were not delivered. This underscores the need for Jharkhand’s Just Transition Task Force to address the socio-economic impacts of abandoned projects and ensure that communities aren’t left in limbo.
Following Indian Finance Minister Nirmala Sitharaman’s July budget commitment to develop a national energy transition policy, NITI Aayog, India’s government policy think tank, has constituted a body to map a “just transition” framework. This framework will explore shifting jobs from the coal and fossil fuel sectors to renewable energy while balancing growth and environmental goals. The initiative leverages input from nine working groups and employs a modelling framework to assess the transition’s impacts on India’s workforce and economy.
A report by iFOREST estimates that India needs over USD 1 trillion to transition its coal mining and thermal power sectors by 2050. About 60% (USD 600 billion) of this would go towards closing coal mines and rehabilitating land; 25% (USD 250 billion) to providing reskilling and social support for workers and communities; and 15% (USD 150 billion) to developing renewable infrastructure and upgrading grids. This investment is essential for systematically phasing down existing coal operations by 2050 in a just way, but it excludes further investments required to meet growing energy demand, highlighting the need for additional funding.
A Princeton University study suggests that prioritising the retirement of coal plants based on carbon intensity or proximity to vulnerable communities, rather than solely by cost, can significantly enhance environmental and health outcomes. Modelling various retirement scenarios in Pennsylvania shows that this approach could reduce the state’s electricity-related CO₂ emissions by up to 12% and decrease air pollutants by 75%, potentially preventing 20% of pollution-related deaths. These findings emphasise the importance of integrating equity into energy transition strategies.
Sixty-five climate organisations, supported by UK unions, are urging Chancellor Rachel Reeves to allocate GBP 1.9 billion annually until 2030 to secure offshore jobs as the UK shifts to renewables. The proposed funding includes GBP 1.1 billion for local wind manufacturing jobs, GBP 440 million for port upgrades, and GBP 355 million for a training fund to address costly, inadequate training that hinders job transitions and results in high injury rates among offshore workers.
A report by Scotland’s Just Transition Commission on Shetland’s rapid transition to renewables is recommending a statutory right for local communities to acquire equity stakes in renewables projects, which would allow them to directly benefit from profits. The report also highlights the impact on traditional sectors like fishing, urging renewable developers to work collaboratively with these industries to prevent economic displacement. It also warns against “unchecked development,” advocating for balanced growth that protects ecosystems and respects community livelihoods.
Over the past 12 years, the UK has successfully transitioned from coal to renewable energy, reducing the contribution of coal in the energy mix to 2% or lower since 2019. This shift was achieved through a combination of government policies, including carbon pricing and emissions limits, which incentivised the closure of coal mines and power plants. Simultaneously, substantial investments were made in renewable energy sources, especially wind and solar power, facilitating a cleaner and more sustainable energy landscape.
A new report highlights that 35% of Japan’s 158 decarbonisation projects in Southeast Asia, under the Asia Zero Emission Community framework, focus on fossil fuel technologies like liquefied natural gas, ammonia co-firing, and carbon capture, with minimal support for wind and solar, which have lower life-cycle emissions. Critics warn that this costly, commercially unproven approach risks locking in fossil fuel dependency and delaying the transition to genuinely sustainable energy sources.
The Australian region of Callide is set to host Queensland’s first Renewable Energy Zone (REZ) as part of a broader AUD 62 billion strategy to help coal-dependent regions transition to 80% renewable energy. Extensive community input, gathered through a “REZ readiness assessment” involving workshops, studies, and consultations, has guided planning. Among the suggestions yielded from this process is that of incorporating lessons from the gas industry to ensure that renewables projects continue the economic legacy of local coal and agricultural sectors, supporting a just transition.
As the European Commission prepares for a new term, more than 50 civil society groups have urged European Union (EU) leaders to prioritise just transition funding ahead of the mid-term review of relevant EU funding frameworks. With EUR 17.5 billion allocated until 2027, the Just Transition Fund is crucial for coal-reliant regions—especially in Central and Eastern Europe—for reskilling and sustainable investments. While the next EU Commission has pledged to increase just transition funding, environmental groups worry about potential cuts or discontinuation, which could disrupt progress.
Poland’s state-owned utility, PGE, plans to convert the Bełchatów coal mine, set to close by 2036, into a leisure lake by 2070, envisioning amenities like skiing and scuba diving. However, critics argue that this lengthy timeline leaves workers facing job losses years before any benefits materialise. Local officials and researchers suggest prioritising renewable energy projects, which could generate jobs and revenue more immediately and support a fairer transition for the coal-dependent community.
The Ministry of Science, Technology, and Innovation and the Mining and Energy Planning Unit in Colombia have announced a research funding initiative to enhance mining and energy planning with a regional focus, promoting a just energy transition that benefits local communities and encourages citizen participation in sustainable energy projects. Eligible applicants can submit proposals addressing themes such as reliable energy supply, technological innovation, climate change adaptation, and sustainable development planning.
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