Climate action is fundamental to ending extreme poverty and promoting shared prosperity – the twin goals of the World Bank. And central to climate action is moving countries away from coal – the world’s most dominant energy source and one of the main sources of climate change. Yet in some countries, coal use is increasing, threatening progress on climate change.
The closure of coal mines and thermal power plants requires extensive planning and preparation. Coal regions are often remote and heavily dependent on their local coal economy. Thus, the severe and rapid disruption of coal production and consumption will lead to profound socio-economic impacts on the affected regions. Millions of direct and indirect jobs will be lost, creating a ripple effect across communities and regions.
But there is a way forward. With good planning, countries can achieve a just transition.
The World Bank is a global leader in supporting countries where coal mines are closing, wherever they are in a transition process. We built an approach based on lessons learned from 11 World Bank lending operations in four countries with $2.7 billion in loans, as well as case studies in China, the Netherlands, the United Kingdom and United and the United States. We have strong experience in working with the coal regions of Bosnia and Herzegovina, Greece, Poland, Romania, the Russian Federation, Serbia and Ukraine. We are also one of the founders of the Platform Initiative for the Transition Coal Regions of the Western Balkans and Ukraine.
Our approach, and the lessons that guided it, revolve around three areas of intervention: 1) governance; 2) people and communities; and 3) repurposing former mining lands and other assets. Each focus area involves a set of plans, policies and actions that together can mitigate the impact of coal mine closures on affected people and communities. But active stakeholder engagement in each transition phase and in each focus area is crucial.
Our experience shows that achieving a just transition requires many years of sustained programmatic support. While pre-closure planning may take as little as 1-2 years, the closure and regional transition phases require a decade or more to properly implement. This means that all coal-producing and consuming regions should start planning for a just transition now.
Contact us at coaltransitions@worldbank.org to find out more.