As efforts to combat climate change accelerate and the economics of traditional energies shift, the economic resilience and just transition of coal communities is a growing concern. Economic diversification is key for coal-reliant regions to navigate these changes in our energy systems.
This first-of-its-kind report unpacks local coal dependence and highlights new sector opportunities in six coal communities: Fayette County (WV), Person County (NC), and Campbell County (WY) in the United States; and Ramgarh (JH), Bokaro (JH), and Peddapalli (TG) in India.
Across these communities, the report identifies over 12 prospective sectors through research, surveys, field visits, and interviews.
Underlining that energy transition is also an economic transition, the report calls for a broader understanding of the future of coal-dependent economies that includes—but goes beyond—the energy sector.
The report was launched following an online discussion with Sri Jayesh Ranjan (Special Chief Secretary, Government of Telangana), Dr. Briggs White (Deputy Executive Director, U.S. Interagency Working Group on Coal and Power Plant Communities and Economic Revitalization), Steve Nicholls (Head of Mitigation, Presidential Climate Commission of South Africa), Shiyana Gunasekara (Senior Economic Advisor, U.S. Department of Energy), and Jane Cohen (Senior Programme Manager – People-Centred Clean Energy Transitions, IEA). Opening remarks were given by Rwitwika Bhattacharya (CEO, Swaniti Global) and Sandeep Pai (Director – Research, Swaniti Global) and a report presentation was given by Ian Barlow (Fellow, Swaniti Global).
Key findings of the report:
- Governments, philanthropies, academia, international organizations, and civil society need to consider coal dependencies more holistically when planning for a just transition. Every case study shows dependence on the coal industry for jobs and government revenues, but the degree of dependence on either varies substantially. Coal dependency often goes beyond jobs and revenues to include cooking fuel, community development, and even property value. By understanding how the coal sector is embedded in a community more completely, just transition practitioners can help foster more robust, sustainable transition planning.
- Data remains a big challenge in understanding coal dependence. Only 1 of the 6 communities in this report appeared to regularly gather revenue data by sector. Though the county/district level was chosen to alleviate data issues, challenges remain in finding the data needed to properly assess coal dependencies.
- 11 out of 15 sectors identified in the coal communities in the 6 case study locations are non-energy related. Coal communities therefore may not see themselves as primarily energy-producers forever. This means that the energy sector and related jobs/revenues may play a smaller role in the economic diversification of coal communities. Governments, philanthropies, etc. should thus support efforts to diversify that include—but go beyond beyond—the energy sector.
- Governments, philanthropies, intergovernmental organizations, and other funders should increase longer-term support for diversification. Diversification strategies can take 10 years or longer to see results. Steady, patient funding is thus a huge help to diversification efforts. Activities destined to help coal-reliant communities should involve flexible funding that is guaranteed over longer time horizons to ground transition efforts.
- More research is needed into suitable transition sectors for coal communities. The report identifies sectors in each community, whose leaders often determine based on local assets, existing sectors, or government incentives. But how other sectors can (a) fill the gaps left by coal decline, (b) fit a community’s unique characteristics, and (c) leverage existing assets is less understood. More research should also be done into sector-specific versus broad-based economic development, as sector-specific development may be risky for some resource-constrained communities.
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The full copy of the report can be accessed at: https://www.swaniti.com/research-and-ground-report
