Coal ministry to have a 'just transition' division; WB to provide $1.1 mn

For the first time ever, the Union ministry of coal will have a ‘just transition’ division, which will draft sustainable coal mine closure plans for areas economically dependent on the dry fuel.

The World Bank will provide an aid of $1.15 million and also prepare a ‘detailed project report’ in consultation with various stakeholders, especially mine workers’ unions.

This is the first time since India announced its net carbon zero target year of 2070 that the policymakers have initiated discussions on just transition in coal bearing areas.

Just transition ensures safe livelihood, land restoration and reclamation near mining areas. It also paves the way for re-employability of communities and economic stability of regions dependent on coal and allied industries, once a mine is shut.

Senior coal ministry officials said now that Coal India (CIL) has started shutting old mines, the areas need to be restored to pre-mining conditions.

“There are already some abandoned mines and more mines will reach their expiry in the near future. We would have global standards for closure of mines, land redevelopment and human resource management, among other things,” said the official.

A recent task completion report of the ministry of coal indicated that the World Bank has already prepared a ‘preliminary project report’. It has been prepared with inputs from the ministry of power, mines ministry, ministry of environment, forests and climate change, department of expenditure, department of economic affairs and NITI Aayog.

Officials said the World Bank will hold stakeholder consultation with coal companies and workers before finalising the DPR by the year-end.

The DPRs will pave the way for pilot projects in two districts. They could become the reference points for planning the transition away from coal in coal-dependent areas.

“There will be a robust mechanism to plan a socio-economic transition in areas which have been historically dependent on coal mining-related activities,” said an official.

Sources said a select team would also go for studying just transition models in countries which have executed similar programmes, such as Germany and Poland.

Poland recently joined 197 countries to phase out coal and has set the expiry year at 2049. Several other countries such as the UK have coal expiry dates as close as 2024.

The UK shut its last coal mine in 2015 and plans to reduce its import dependency too. Wales, which was the main supplier to the UK, shut its largest industry of coal mining in the 1980s. However, it has failed to stabilise its economy, even after three decades.  

A recent action plan of the coal ministry also suggested that de-coaled land may be used for developing townships.
 

All the seven coal companies under CIL, Singareni Collieries and Neyveli Lignite have been directed to have a net-zero carbon agenda.