Just Energy Transition in the Media – May 28, 2024
We round up the latest just energy transition news stories in the media.
Malaysia’s recent commitment to retire its coal fleet over the next two decades is under scrutiny as the government-owned Exim Bank Malaysia agrees to finance a new coal plant in Vietnam. The 2,120 MW Song Hau 2 project, funded by a loan of USD 980 million from Exim Malaysia, contradicts the commitments of Malaysia’s climate goals and Vietnam’s USD 15 billion Just Energy Transition Partnership to limit coal use. Arguing that this undermines Malaysia’s and Vietnam’s climate pledges, critics are calling for financial institutions to rethink their involvement due to the reputational risks and potential harm to Vietnam’s energy transition efforts.
India’s plan to phase down coal use by 2030 to achieve 50% non-fossil fuel capacity will significantly impact marginalised groups, including Scheduled Castes and Scheduled Tribes. A National Foundation of India report reveals that these communities, largely engaged in low-paying, informal jobs in coal regions, are facing severe economic and health challenges. The study, which surveyed 1,209 households across major coal-producing districts, highlights the need for targeted policies to support these vulnerable groups during the transition.
Environmental advocates have criticised a new Indonesian law allowing religious organisations to manage mining concessions, including for coal, that have been revoked from companies due to slow development. Signed by President Joko Widodo, the decree is seen as a gesture of appreciation to religious groups. Critics argue that these groups lack the expertise and funds for responsible mining, posing risks to nature. Others view the policy as transactional politics aimed at rewarding political support. Organisations like Muhammadiyah, the nation’s second largest Islamic organisation, remain cautious and have not rushed to respond to the initiative.
Eskom CEO Dan Marokane has announced the decoupling of coal power plant closures from new renewable energy projects. Eskom will now directly participate in renewables projects near existing power stations, starting with a 75 MW solar PV facility at Lethabo. By ensuring smoother transitions for workers and communities, this strategy aims to avoid the issues faced at Komati, where alternative employment opportunities were not in place by the time the plant was retired. However, concerns include the potential crowding out of independent power producers, and whether new generation must entirely replace coal capacity to secure concessional loans from the Just Energy Transition Partnership.
On June 10, 2024, a civil society coalition from Indonesia, Senegal, South Africa, and Vietnam launched its Principles for a Fair Just Energy Transition Partnership (JETP), which emphasises accountability, transparency, and equity in climate finance. The coalition urged the G7 to ensure adequate, fair financing for a just energy transition. It also highlighted issues with current financing practices, stressing the need for policies that prevent debt burdens while supporting sustainable, inclusive economic and environmental justice.
The German government has received preliminary approval from the European Union to allocate EUR 1.75 billion to coal company LEAG for phasing out coal by 2038. Of this, EUR 1.2 billion is guaranteed for environmental restoration and pensions, while EUR 550 million is conditional on future power and carbon dioxide (CO2) prices, compensating for potential lost earnings based on a specific formula. This ensures compensation only if market forces, such as cheap renewables and high CO2 prices, don’t render the coal plants unprofitable.
Green groups and unions are urging the next UK government to provide a “clear and funded” transition plan for offshore oil and gas workers, including those in the North Sea. More than 60 climate organisations, supported by trade unions, have signed an open letter calling for a UK-wide industrial strategy with investments in domestic manufacturing, skills, publicly owned energy, and tax reforms. They advocate for sectoral collective bargaining, a jobs guarantee, and a phase-out of North Sea oil and gas to meet climate commitments while ensuring fair treatment and job security for workers.
Civil society organisations (CSOs) have criticised the exclusion of host communities from negotiations following the commissioning of a lithium mining plant in Nasarawa State, Nigeria. They highlighted social, economic, and environmental risks, such as increased crime and pollution. The CSOs stressed that mining must respect human rights and the environment, advocating for free, prior, and informed consent; stringent regulations; and accountability measures to ensure a just transition and prevent a repeat of injustices caused by the fossil fuel industry.
The Ministry of Mines and Energy in Colombia has invited citizens to join a new National Knowledge Network for the Just Energy Transition (RedTEJ) and elect its temporary Council for Populations and Social Organisations. RedTEJ aims to promote knowledge management for the just energy transition through collaborative governance. The temporary council will serve until December 31, 2024, and will comprise members from academia, the energy sector, and the national government. The invitation encourages the integration of diverse social groups, with elections scheduled from June 24 to July 22, 2024.
Research in 2023 found that Australian workers from coal-fired power plants who lost their jobs between 2010 and 2020 saw their incomes drop by 69% in the following year. A study on a mine closure in New South Wales revealed that workers such as drillers and mining engineers would struggle most to find new jobs without relocating, due to limited local demand for their skills. Effective support, including relocation assistance and targeted aid for those most at risk of long-term unemployment, is essential during Australia’s energy transition.
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