Just Transition
The challenges
How to ensure appropriate policies, planning processes and financial support are in place to protect workers and communities affected by the transition, including skills training, creation of decent work opportunities and supporting local economic development?
The solutions
- Early planning at national, regional, sector, utility and asset levels
- Effective social dialogue and stakeholder engagement
- Coordinated retraining, skills development, social protection programmes and economic diversification initiatives
- Ensuring just transition is adequately financed
Canada
National Government, Subnational Government
Through policy reform, investment and coordination at both the national and subnational levels, Canada is phasing out coal emissions while protecting workers and communities.
In 2012, Canada introduced regulations requiring coal-fired power plants to meet stringent performance standards to limit their emissions. The province of Ontario was the first jurisdiction in North America to eliminate coal power by banning it in law. It committed to phasing out coal in 2003 and closed its last coal unit in 2014, moving away from a grid where coal previously represented 25% of the supply mix.
The province of Alberta eliminated coal-fired plants in 2024, 6 years ahead of schedule, resulting in a decline in emissions from electricity generation by 53% since 2004. The federal Task Force on Just Transition for Coal Power Workers and Communities produced concrete recommendations for just transition priorities. Federal and provincial support for skills development, economic diversification, and infrastructure projects is enabling the transition.
The European Union
National Government
Thanks to climate goals and the Emissions Trading System (ETS), the European Union is delivering a rapid transition from coal to clean energy, while increasing economic growth and energy security and delivering substantial support to coal regions and communities in transition.
Over the past decade, coal power use in the European Union (EU) has fallen by 61%, while solar power output more than tripled and wind generation more than doubled over the same period.
The increase in wind and solar generation in the EU also helped avoid cumulative emissions of some 460m tonnes of carbon dioxide (MtCO2) and €59bn in fossil-fuel imports over the past five years.
The EU has supported affected workers and communities with €17.5 billion through the Just Transition Fund. Its 40+ coal regions received technical assistance through the EU’s Coal Regions in Transition platform.
Chungnam, Republic of Korea
Subnational Government
The coal-power heartland of South Korea – Chungnam Province – phases out coal power plants in a just way through bold policies and intensive collaboration at home and abroad.
Between 2018 and 2022, Chungnam had reduced its CO2 emissions by 7Mt, from 161Mt to 154Mt. The province is creating a fund to support a just energy transition – it will cover training and support for workers to find new roles, measures to attract and develop new businesses and community welfare projects.
Eastern Wielkopolska, Poland
Subnational Government, Utility
Eastern Wielkopolska region and ZE PAK utility in Poland make a clear commitment to phase out coal by 2030 and organise a public dialogue to ensure a just transition for workers and communities.
The clear commitment to move away from coal by 2030 resulted in the award of EU funds which enabled the implementation of the workers’ “Pathway to Employment after Coal” programme – the most generous support scheme for coal workers in Poland.
Chile
National Government
Thanks to ambitious policies and an agreement with industry and communities, Chile is phasing out coal fast, despite growing energy demand and a young coal fleet. In Chile, the proportion of electricity from coal has dropped from 46% in 2013 to 17% in 2023; in the same period, electricity generation from wind and solar has increased from 0.8% to 28%.
This was achieved thanks to strong government commitment and collaboration of multiple stakeholders, including the owners of the coal facilities. Clean energy is expected to create 43,000 new jobs this decade in the regions where coal power plants are in, significantly surpassing jobs lost by the closure of these plants.
Spain
National Government
Spain has decreased coal generation by 92% between 2018 and 2024 and is set to achieve coal phase out while protecting affected workers and communities, thanks to ambitious just transition measures. In fact, Spain recently achieved an entire month without coal generation for the first time in 140 years.
Spain is replacing jobs lost in the industries and regions affected by coal phase-out with new employment opportunities, many associated to net-zero industries and enhancing alternative local economic sectors, generating billions in private investment in the process.
South Africa
National Government
South Africa’s strategy of multi-stakeholder collaboration to deliver the transition away from coal helps the country support vulnerable workers and communities and mobilise and effectively disburse large scale international support.
The Just Transition Implementation Plan, prepared based on feedback from key stakeholders, addresses key challenges in ensuring a just transition away from coal. Pledges of international pledges for the country’s just transition (in concessional loans, grants and commercial finance) now stand at $11.8 billion.