Nations can quit coal in a rapid, just and orderly manner, but they need a coordinated mix of policies. Coal-dependent countries around the world face two wickedly interlinked challenges: accelerating the phase out of coal to prevent catastrophic global warming, while sustaining economic prosperity and political support. As UN Secretary General Antonio Gutteres recently said, keeping global warming close to 1.5 degrees requires all new coal investments to stop now with coal phased out in OECD economies by 2030 and everywhere else by 2040. Energy supply and economic impacts of the war in Ukraine have clearly made these tasks even tougher. But the war has also provided a powerful reminder of the huge strategic and environmental risks of fossil fuel addiction. Quitting coal need not end in economic crisis, nor energy shortages. Not quitting coal will certainly end in climate—and therefore economic—disaster. Researchers have systematically reviewed the policies of nations well down the path of transitioning away from coal, providing guidance on what works. Governments quitting coal in a rapid, just and orderly manner have commonly employed a proactive, collaborative and well-coordinated mix of demand and supply-side policies. Key demand-side policy levers include carbon pricing mechanisms; reducing energy consumption and improving energy efficiency. And providing strong financing and infrastructure support for the rapid expansion of renewable energy. Supply-side policies such as accelerating coal industry closure through removal of subsidies and through direct regulation, taxation and export licensing are also vital. Regulatory actions to overcome the negative impacts of coal on air quality, health and environmental outcomes often play a key role. So too do mission-oriented industry policies driving economic renewal and job creation. The European Union remains strongly focused on phasing-out coal by 2030. More than €80 billion (US$92.9 billion) has been allocated to strengthen skills and job opportunities in coal-dependent regions. These funds will also help leverage billions of dollars in private sector finance for clean energy infrastructure and technology. German Chancellor Olaf Schulz recently proposed the German coal phase out date be brought forward to 2030. The German Coal Commission, comprising government, business and union stakeholders has suggested €40 billion (US$46.2 billion) is needed to support coal dependent workers and communities. Spain has underpinned its ambitious coal phase-out and renewable energy goals with over €250 million (US$289 million) for ‘Just Transition’ contracts covering early retirement, re-employment, environmental regeneration and green industry investment and employment goals and strategies. In Australia, the new Labor government has backed its upgraded greenhouse gas emissions reduction goal with a ‘National Energy Transformation Partnership’ to coordinate and integrate national and state government energy transition investments. The government also announced a AUD$1.9 billion (US$1.2 billion) ‘Powering the Regions’ fund to assist traditional and new industries in regional Australia harness the economic opportunities of decarbonisation. The economic and job creation potential of a well-managed transition from fossil fuels to renewables is now well demonstrated. Employment in renewable energy rose to 12.7 million in 2022, an increase of over 700,000 jobs. The International Energy Agency has estimated more than 30 million jobs could be created in clean energy, efficiency and low-emissions technologies by 2030. Importantly, as ILO Director-General Guy Ryder said “there is a growing focus on the quality of jobs and the conditions of work in renewable energies. The increasing share of female employment suggests that dedicated policies and training can significantly enhance the participation of women in renewable energy occupations and ultimately achieve a just transition for all”. In Germany, collaborative planning and long-term investment in infrastructure; education; environmental technologies; and cultural and service industries has been an essential foundation for economic diversification and job creation in coal dependent regions such as the Ruhr Valley. In the United States, investment flowing from President Biden’s Inflation Reduction Act will create over 550,000 new jobs in industries producing renewable energy. And in Australia, renewable energy think tank Beyond Zero Emissions has demonstrated the potential for low-cost renewable energy to create new export earnings of over AUD$300 billion and over one million new jobs.
Wellness Brief
The countries leading the way on quitting coal
2026-11-15 06:36:18 · The Daily Ledger
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