The Asian Development Bank (ADB) reached a provisional deal to retire a coal power plant early through its Energy Transition Mechanism programme, which was set up to help countries cut greenhouse gas emissions. Under the deal, the Power Purchase Agreement for the 660 megawatt Cirebon 1 coal-fired power plant, located in Indonesia, will end 7 years earlier than the previously scheduled date of July 2042. The plant, which opened in 2012, would, in theory, have the capacity to remain operational until well into the 2050s. The deal is subject to due diligence, including an assessment of its environmental impact, the company’s workers, and the broader electricity system.

Bulgaria’s coal regions will receive EUR 1.2 billion in grants from the EU Just Transition Fund, the awarding of which depends on approval of the region’s territorial just transition plan by the European Commission. These grants will help shutter mines and coal power plants, rehabilitate land, switch to a green economy, and eradicate household energy poverty. The funds aim to reskill and upskill coal miners and create new employment opportunities for over 15,000 workers, among other goals. The grants for Bulgaria mark the completion of allocations from the EU Just Transition Fund, shifting the focus toward implementation.

PwC’s Global CEO Survey, launched at this year’s annual meeting of the World Economic Forum, reveals that the long-term impact of climate change on their businesses is a key concern for the more than 2,000 of the chief executives polled. Yet despite the upskilling and reskilling of workers widely considered to be an essential component of a just transition, the survey found that it remains on the back burner, with only 39% of respondents rolling out initiatives in this field.

In response to a question about the lack of community consultation conducted prior to the repurposing of the Komati coal power station in 2022, South Africa’s Minister of Electricity Kgosientsho Ramokgopa has promised that the government will conduct a comprehensive study before any coal-fired station is decommissioned in the future. He gave assurances that the government would consult workers, businesses, and communities to ensure that their insights and concerns are integrated into the decision-making process.

A recent survey carried out in the Indonesian provinces of East Kalimantan, South Sumatra, and West Java—three regions with a large economic dependence on coal mining—reveals strong support for the implementation of a just transition, with 87% of respondents in favour. Conducted in December 2023 by CERAH Foundation and MarkData, the survey polled stakeholders from various backgrounds, including civil servants, business owners, private employees, workers, and other members of civil society. Despite identifying broad theoretical support for a just energy transition, the survey found that 25% of respondents from East Kalimantan were concerned about its implementation, citing uneven distribution of benefits, job loss, and skepticism towards government and private sector commitments. In West Java and South Sumatra, levels of concern were much lower, at 9.3% and 5%, respectively.

A recent study by University College London found that just transition approaches can help phase out fossil fuels without sacrificing electoral success. Highlighting the example of the Spanish Socialist Party (PSOE) policy to phase out coal mining, which was negotiated with affected unions and businesses shortly before Spain’s 2019 national election, it finds that the party’s vote share increased with a greater margin in the coal mining municipalities. Further statistical tests and interviews suggest that this was the result of strong union support of the agreement, demonstrating that the process itself matters in order to build trust and confidence among affected stakeholders.

India’s expansion of both fossil fuel and low-carbon energy, particularly large-scale hydropower, is predicated upon state-sanctioned violence for land acquisition, a recent study found. Despite the government’s pledge to reach net-zero carbon emissions by 2070, the country is actually in the midst of a transition toward increased coal production and, as such, is fighting a coal war. This land expropriation further marginalises Indigenous and frontline communities such as Dalits, landless farmers, and artisanal fishers, toward whom energy policy-makers and researchers, including proponents of just transition, have paid too little attention.

Scottish Green party ministers have come under pressure from opposition parties after the publication of the Scottish Government’s Budget document in December showed budget cuts in various areas, including for Scotland’s Just Transition Fund. Specifically, there will be a GBP 37.8 million reduction in spending on the Just Transition Fund, leading the government to fall short of its pledge to provide GBP 50 million annually over the next decade. The government confirmed its ongoing commitment to the 10-year Just Transition Fund programme, citing a 10% reduction in allocation from the UK government, which the fund relies upon.

The early retirement of coal-fired power plants has been part of many countries’ decarbonisation efforts in recent years. However, long-term contracts for private developers make such early retirement of coal infrastructure difficult, particularly in markets with relatively young coal plants, where changing the terms of the contracts requires attractive incentives for their shareholders and management. In one example, the early retirement of coal-fired plants is almost entirely absent from Indonesia’s recently launched Just Energy Transition Partnership investment roadmap, with most lenders excluding support for this purpose for political reasons.

In recent years, just transition litigation has emerged as a specific form of climate change litigation that focuses on fair distribution of the benefits and burdens resulting from the energy transition away from fossil fuels. Specific cases from Chile, Colombia, and Mexico show how matters related to human and environmental rights, specifically those affected by the energy transition, are brought to courts—and how this can help consolidate just transition as a fundamental element of the energy transition and shape lessons learned that can be applied elsewhere.

Miss our last just transition news roundup? Just Energy Transition in the Media – November 30