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Economy

Economy

The coal industry faces 1 million job losses from global energy transition

An aerial view of the machinery at the coal terminal of Huanghua port, in Hebei province, China Febr... An aerial view of the machinery at the coal terminal of Huanghua port, in Hebei province, China February 1, 2023. China Daily via REUTERS/ File Photo
An aerial view of the machinery at the coal terminal of Huanghua port, in Hebei province, China Febr... An aerial view of the machinery at the coal terminal of Huanghua port, in Hebei province, China February 1, 2023. China Daily via REUTERS/ File Photo

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The coal industry faces 1 million job losses from the global energy transition. Even without any additional commitments to phase out fossil fuels, the global coal sector may need to eliminate roughly 1 million jobs by 2050, with China and India suffering the greatest losses, according to a study released on Tuesday.

As labor-intensive mines near the end of their useful lives and nations switch from coal to cleaner, low-carbon energy sources, hundreds of them are anticipated to close in the upcoming decades. However, most of the mines expected to close “have no planning underway to extend the life of those operations or to manage a transition to a post-coal economy,” cautioned the American think tank Global Energy Monitor (GEM).

According to Dorothy Mei, project manager for GEM’s Global Coal Mine Tracker, governments must establish strategies to guarantee that the energy shift does not negatively impact employees. “Coal mine closures are inevitable, but economic hardship and social strife for workers are not,” she stated.

A total of 4,300 coal mining projects with a combined workforce of around 2.7 million were examined by GEM. It was discovered that more than 400,000 people are engaged in mines that would close before 2035. GEM calculated that just 250,000 miners, or less than 10% of the existing labor, would be needed worldwide if plans were to phase down coal to keep global warming to 1.5 degrees Celsius (2.7 degrees Fahrenheit).

According to GEM estimates, more than 1.5 million people are employed by China’s coal sector, the largest in the world. More than 240,000 of the 1 million jobs estimated to be lost globally by 2050 would be in the province of Shanxi alone.

China’s coal industry has already undergone numerous rounds of restructuring in recent years, and many mining communities in the north and northeast are still searching for new opportunities for economic development and job creation in the wake of pit closures.

“The coal industry, as a whole, has a notoriously bad reputation for its treatment of workers,” said Ryan Driskell Tate, the program director for coal at GEM. “What we need is proactive planning for workers and coal communities … so industry and governments will remain accountable to those workers who have borne the brunt for so long.”


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