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Compensating affected parties necessary for rapid coal phase-out but expensive if extended to major emitters
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Keywords
General Chemistry
General Biochemistry,Genetics and Molecular Biology
General Physics and Astronomy
SDG 7 - Affordable and Clean Energy
SDG 13 - Climate Action
General Biochemistry,Genetics and Molecular Biology
General Physics and Astronomy
SDG 7 - Affordable and Clean Energy
SDG 13 - Climate Action
URI
https://hdl.handle.net/20.500.14018/27070
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 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.
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Place of Publication
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Journal article
Date
2024-05-07
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ISBN
Identifiers
10.1038/s41467-024-47667-w