Just Transition Costs and Cost Factors
23 March 2023
A just transition in a fossil fuel-dependent region requires investments in several areas to rebuild a resilient and equitable economy while addressing energy security concerns. An analysis of the just transition plans and financial needs of several coal regions reveals that these financial requirements can be classified into the following eight cost components, each with its own set of specific outcomes: 1. Mine reclamation and repurposing; 2. Decommissioning of thermal power plants; 3. Labour support and transition; 4. Economic diversification; 5. Community resilience: 6. Green energy investments; 7. Revenue substitution and energy price support; and, 8. Planning and governance. This study attempts to identify cost factors for each component based on a suitable denominator - the capacity of decommissioned thermal power plant (PP), reduced coal production, affected worker or affected population.