Compensating affected parties necessary for rapid coal phase-out but expensive if extended to major emitters
(2024) In Nature Communications 15.- Abstract
Coal power phase-out is critical for climate mitigation, yet it harms workers, companies, and coal-dependent regions. We find that more than half of countries that pledge coal phase-out have "just transition" policies which compensate these actors. Compensation is larger in countries with more ambitious coal phase-out pledges and most commonly directed to national and regional governments or companies, with a small share going directly to workers. Globally, compensation amounts to over $200 billion (uncertainty 163-258), about half of which is funded through international schemes, mostly through Just Energy Transition Partnerships and the European Union Just Transition Fund. If similar transfers are extended to China and India to phase... (More)
Coal power phase-out is critical for climate mitigation, yet it harms workers, companies, and coal-dependent regions. We find that more than half of countries that pledge coal phase-out have "just transition" policies which compensate these actors. Compensation is larger in countries with more ambitious coal phase-out pledges and most commonly directed to national and regional governments or companies, with a small share going directly to workers. Globally, compensation amounts to over $200 billion (uncertainty 163-258), about half of which is funded through international schemes, mostly through Just Energy Transition Partnerships and the European Union Just Transition Fund. If similar transfers are extended to China and India to phase out coal in line with the Paris temperature targets, compensation flows could become larger than current international climate financing. Our findings highlight that the socio-political acceptance of coal phase-out has a tangible economic component which should be factored into assessing the feasibility of achieving climate targets.
(Less)
- author
- Nacke, Lola ; Vinichenko, Vadim LU ; Cherp, Aleh LU ; Jakhmola, Avi and Jewell, Jessica
- organization
- publishing date
- 2024-05-07
- type
- Contribution to journal
- publication status
- published
- subject
- in
- Nature Communications
- volume
- 15
- article number
- 3742
- publisher
- Nature Publishing Group
- external identifiers
-
- scopus:85192249355
- pmid:38714652
- ISSN
- 2041-1723
- DOI
- 10.1038/s41467-024-47667-w
- language
- English
- LU publication?
- yes
- id
- 7f336f39-64d1-4316-bd93-15ee53f228bb
- date added to LUP
- 2024-05-11 15:04:57
- date last changed
- 2024-06-09 06:45:31
@article{7f336f39-64d1-4316-bd93-15ee53f228bb,
abstract = {{<p>Coal power phase-out is critical for climate mitigation, yet it harms workers, companies, and coal-dependent regions. We find that more than half of countries that pledge coal phase-out have "just transition" policies which compensate these actors. Compensation is larger in countries with more ambitious coal phase-out pledges and most commonly directed to national and regional governments or companies, with a small share going directly to workers. Globally, compensation amounts to over $200 billion (uncertainty 163-258), about half of which is funded through international schemes, mostly through Just Energy Transition Partnerships and the European Union Just Transition Fund. If similar transfers are extended to China and India to phase out coal in line with the Paris temperature targets, compensation flows could become larger than current international climate financing. Our findings highlight that the socio-political acceptance of coal phase-out has a tangible economic component which should be factored into assessing the feasibility of achieving climate targets.</p>}},
author = {{Nacke, Lola and Vinichenko, Vadim and Cherp, Aleh and Jakhmola, Avi and Jewell, Jessica}},
issn = {{2041-1723}},
language = {{eng}},
month = {{05}},
publisher = {{Nature Publishing Group}},
series = {{Nature Communications}},
title = {{Compensating affected parties necessary for rapid coal phase-out but expensive if extended to major emitters}},
url = {{http://dx.doi.org/10.1038/s41467-024-47667-w}},
doi = {{10.1038/s41467-024-47667-w}},
volume = {{15}},
year = {{2024}},
}