Employment Impacts of Closure and Repurposing of Coal Power Plants | Job Creation Potential of the Clean Energy Transition

The energy transition will entail not only job creation in new clean energy industries but also job losses in incumbent high-emission industries, such as coal extraction and use. Focusing purely on technological options for the energy transition without considering a “job transition” for workers, will hinder progress toward the adoption of clean energy and can even mean a complete stop to the transition in certain communities. A sustainable transition from brown jobs considers the skills required for existing and potential replacement (new) jobs, workers’ preferences, demand in the replacement sectors, and multiple behavioral and social barriers to change. The potential magnitude of job losses due to coal power plant closures is much greater than the number of jobs at risk in coal extraction. However, where entire communities rely on this single industry, the transition can be extremely difficult, considering coal not only pays for the salaries of workers directly working in the coal industry, but it also typically supports local businesses and also the social and cultural life of these communities. Transitions from brown to green energy jobs are neither automatic nor easy - often sectors such as manufacturing or construction are a better fit for workers previously employed in fossil fuel extraction and use. This is because many clean energy jobs require digital skills and much higher willingness to travel to many different installation sites. This report presents the findings and conclusions of a case study undertaken under a program of analytical work that investigates the impacts of the global transition to clean energy on the quantity and quality of jobs in low- and middle-income countries.

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Case Studies