Green jobs

‘Just transition’ policies targeting key regions vital to support coal phase out in Southeast Asia

Coal is the most carbon-intensive fossil fuel, and its rapid phasing out is essential to limit global warming to 1.5°C. A new ILO report highlights need for ‘Just transition hotspots’ to ensure human-centred transition away from coal in Indonesia, the Philippines and Viet Nam.

Press release | Bangkok, Thailand | 24 May 2022
BANGKOK, Thailand (ILO news) - Any transition away from coal in Indonesia, the Philippines and Viet Nam must be matched by steps to maintain employment in the regions most affected, according to a new report by the International Labour Organization (ILO).

A Just Energy Transition in Southeast Asia - the impacts of coal phase-out on jobs focusses on steps needed to ensure that any phase out of coal in Indonesia, the Philippines and Viet Nam is part of a ‘just transition’ which sees new jobs and livelihoods created to replace those lost.

The three countries are among the five economies with the highest levels of coal consumption in Southeast Asia. In this region, coal consumption has risen by 150 per cent over the last 20 years, with the share of coal in the electricity mix increasing from 27 per cent in 2010 to 43 per cent in 2019. Indonesia and Viet Nam are important coal producers while the Philippines relies heavily on coal imports. All three are vulnerable to climate change.

The report collates research from various sources and highlights that while Southeast Asia could potentially lose less than half a million jobs in fossil fuels by 2050, it could gain up to five million jobs mainly in renewable energy.

However, job losses due to mine closures in coal-dependent regions, as well as the loss of jobs indirectly linked to the industry will have a deep negative effect on the labour markets, economies and livelihoods of local communities.

“In order to mitigate the negative socio-economic effects of coal phase-out, it is essential that the governments implement just transition policies for affected populations,” said Cristina Martinez, ILO Senior Specialist on Environment and Decent Work.

“There is a need to maintain employment in regions where coal production is concentrated. However, this can be a large barrier against a transition away from coal, unless it is addressed specifically through targeted national support for regions affected. Policies that are adapted at the regional and local levels with the aim to create ‘just transition hotspots’ are of vital importance for a human-centred transition away from coal,” she added.

The report highlights the importance of social dialogue among governments, workers and employers' organizations throughout policy making processes at all levels and to ensure that gender, social protection, green recovery, skills development, and the community dimension are integrated into any policies or subsequent actions.

Coal is the most carbon-intensive fossil fuel, and its rapid phasing out is essential to limit global warming to 1.5°C, as set out in the Paris Agreement on climate change adopted in 2015. In March 2021, the UN Secretary-General urged all Organisation for Economic Co-operation and Development (OECD) countries to commit to phasing out coal by 2030 and non-OECD countries to do so by 2040 to be able to meet the 1.5°C goal.

A Just Energy Transition in Southeast Asia - the impacts of coal phase-out on jobs was launched in Bangkok on 24 May 2022 by the United Nations Issue-based Coalition (IBC) on Raising Ambitions on Climate Action (coal phase-out working group). The IBC brings together the UN Economic and Social Commission for Asia and the Pacific (ESCAP), the United Nations Environment Programme (UNEP), the ILO and the United Nations Framework Convention on Climate Change (UNFCCC). The IBC recognizes that long term support and partnerships are required to help Asia phase out the use of coal and is therefore undertaking a five-year programme to support a Just Transition to greener energy and jobs.