Green Jobs

A just energy transition in Southeast Asia: The impact of coal phase-out on jobs

Coal is the most carbon-intensive fossil fuel, and its rapid phasing out is essential to limit global warming to 1.5°C. However, the status of coal power plants as of 2021 shows that the world is far from reaching this objective unless drastic steps are taken immediately. The ILO's Report on "A just transition in Southeast Asia: The impact of coal phase-out on jobs" lays out the need to mitigate the negative socio-economic effects of coal phase out and the necessity for just transition policies to be fostered by using evidence at local levels.

Coal is the most carbon-intensive fossil fuel, and its rapid phasing out is essential to limit global warming to 1.5°C. However, the status of coal power plants as of 2021 shows that the world is far from reaching this objective unless drastic steps are taken immediately.

Following COP-26, the ILO initiated a study under the UN Issue-Based Coalition on Raising Ambitions on Climate Actions, Working Group on Coal Phase-Out to understand the impacts of phasing out coal on jobs in Indonesia, the Philippines, and Viet Nam. The report, “A Just Energy Transition (JET) in Southeast Asia – The impacts of Coal Phase-Out on Jobs” collected information through tripartite consultation in the three countries, as well as qualitative and quantitative data and analysis on the impact of phasing out coal within each country.

The report focuses on ensuring a just transition while phasing out coal in line with the ILO Guidelines for a Just Transition towards Environmentally Sustainable Economies and Societies for All. The report suggests that in Indonesia, the Philippines, and Viet Nam, job losses due to mine closures in coal-dependent regions and the loss of indirect jobs in their industrial ecologies will have a profound negative effect on the labour markets, economies, and livelihoods of local communities. The report showed the need to mitigate the adverse impacts of coal phase-out on affected populations and achieve the best-case scenario through just transition policies.