Just Energy Transition in the Media – November 14, 2024
We round up the latest just energy transition news stories in the media.
In a new paper, researchers from the Berlin-based Hertie School have highlighted barriers to just transitions for Europe’s emission-intensive manufacturing workers. High wages, few comparable jobs, and limited reskilling options are hindering workforce mobility, especially for mid-level skilled male workers in rural areas. Tailored solutions like paid training leave and specialised qualification programmes are recommendations for addressing these challenges and ensuring equitable transitions to green industries.
India and its respective donor countries, including Germany and the U.S., have ended negotiations on a Just Energy Transition Partnership (JETP), according to a German government official. Talks stalled due to India’s focus on renewable energy investments over a coal phase-out and because of concerns about debt burdens. However, both sides still aim to pursue stronger collaboration on financing renewable energy in alignment with India’s energy transition priorities.
Slovenia will inject EUR 403 million into the Šoštanj coal power plant and the Velenje coal mine, transferring them from state-owned utility Holding Slovenske Elektrarne (HSE) to state ownership. This transitional measure aims to prevent bankruptcy, secure heating for 35,000 residents, and buy time until the adoption of broader measures helps to develop alternative industries and economic opportunities in the Šalek Valley. At the same time, the bill includes provisions for social security and job protection.
Indonesian President Prabowo Subianto has pledged to retire all fossil fuel power plants within 15 years and add over 75 gigawatts of renewable capacity, targeting net-zero by 2050. Experts have welcomed this announcement but are sceptical due to Indonesia’s reliance on over 250 coal-fired plants and ongoing coal projects. State utility company Perusahaan Listrik Negara (PLN) supports the plan but highlights that grid integration and equitable energy distribution across regions remain significant obstacles.
Singapore lender DBS Bank, which is acting as the financial advisor for Indonesia’s early retirement of the Cirebon 1 coal plant, is cautious about scaling the model nationwide. Key challenges include higher-than-expected costs for grid upgrades to integrate renewable energy sources. “Transition credits,” piloted in the Philippines, may not work in Indonesia due to their distinct market structure and the regulatory complexities, which highlights the need for tailored approaches to financing coal phase-outs.
A study by Indian Institute of Technology (IIT) Kanpur’s Just Transition Research Centre has revealed significant gaps in awareness about energy transition among India’s coal unions, especially at the grassroots level. While national-level unions show some understanding of the concept, local leaders remain largely uninformed. Union representatives have further criticised the lack of inclusion in policy dialogues, warning that excluding formal and informal coal workers could lead to mistrust and resistance to transition efforts.
Maharashtra, one of India’s largest states and a key industrial hub, is developing a just transition policy for its automotive sector to address disruptions from the shift to electric vehicles (EVs). Announced by Abhijit Ghorpade, Director of State Climate Action Cell, Government of Maharashtra, the policy targets a sector that contributes 7% to the state’s gross domestic product (GDP) and employs over 340,000 workers. It focuses on reskilling workers, supporting micro, small, and medium enterprises (MSMEs), and revising industrial policies to ensure a just transition.
The Just Transition Commission, an independent advisory body tasked with guiding Scotland’s shift to a net-zero economy, has, in its third report, urged the Scottish government to establish clear and measurable just transition targets. Setting such targets for 2045, they argue, could be a “genuine world-first.” The commission has emphasised the need for pragmatic interim milestones to protect workers and communities, warning against letting “the perfect be the enemy of the good.”
At COP 29, the Facility-level Just Transition Working Group (F-JTWG), led by Climate Finance Asia, released the draft report entitled Facility-level Just Transition Guidelines for Banks. Developed with input from 15 global banks and non-governmental organisations (NGOs), the guidelines focus on the topics of labour, livelihoods, gender, energy security, biodiversity, and governance. They complement the net-zero commitments of the Glasgow Financial Alliance for Net Zero (GFANZ) by offering practical tools for integrating just transition principles into facility-level financing.
Tocopilla, a city in northern Chile, is grappling with the aftermath of over a century of coal-fired power generation. Pollution in the form of unremediated fly ash deposits and deteriorated infrastructure are key challenges faced by the region. Following the closure of its coal plants under Chile’s decarbonisation plan, a local committee for Just Socio-Ecological Transition was launched, which has proposed 134 actions across three phases: urgent remediation, medium-term improvements, and long-term economic diversification. Despite this, local residents remain sceptical about implementation and outcomes. [in Spanish]
Colombia’s President Gustavo Petro has signed Decree 1403 of 2024, which allows individuals and businesses to self-generate energy (from renewables in particular) and transfer surplus through the National Interconnected System (SIN). The decree removes capacity limits and enables self-consumption across different locations. By decentralising energy production and fostering renewable adoption, the decree supports a just transition and creates new economic opportunities while empowering communities with sustainable energy access. [in Spanish]
The European Commission’s Just Transition Platform has launched a new Working Group on the future of just transition. The group will evaluate progress under the Just Transition Mechanism, identify gaps, and propose strategies for green diversification, social inclusion, and sustainable development. It will also provide recommendations on improving implementation and fostering innovation in transition planning. Just transition professionals are invited to apply by January 15, 2025, to contribute their expertise.
Young people in Vietnam have issued an open letter demanding that they have a stronger role in Vietnam’s just energy transition. They call for inclusive decision-making processes; financial support for youth-led renewable energy initiatives; and access to education, technology, and job opportunities in green industries. Highlighting the challenges of climate vulnerability and energy dependency, the letter urges policy-makers to ensure fairness, prioritise social equity, and harness youth contributions in transitioning to a low-carbon, sustainable energy future for Vietnam.
South Africa’s upcoming G20 presidency offers a pivotal opportunity to lead the global just transition from fossil fuels. However, significant challenges are posed by the influence on policy-making of fossil fuel companies, such as Eskom and Sasol. For instance, these companies have previously secured postponements for air quality regulation compliance, delaying the implementation of emissions-reducing equipment. This lack of stringent enforcement allows continued environmental harm, and addressing these issues is crucial for advancing a just energy transition.
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