The global coal industry is on the precipice of a seismic shift, with over four lakh mining jobs, or almost 100 workers per day, slated to vanish by 2035. This impending upheaval is poised to occur even in the absence of climate commitments or coal phase-out policies. The primary driver behind this transformation is the growing preference for cost-effective wind and solar energy generation. Simultaneously, a lack of strategic planning to transition to a post-coal economy exacerbates the employment crisis, as revealed by a report by Global Energy Monitor, a US-based NGO specializing in the international energy landscape.
China and India, two of the world’s largest coal industry consumers, are expected to bear the brunt of this impending labor force restructuring. China’s Shanxi province anticipates the highest number of job losses globally, with an estimated 2,41,900 workers affected by 2050. Meanwhile, India’s Coal India, the largest domestic coal producer, may witness potential layoffs of 73,800 employees by mid-century.
The report underscores that approximately 4,300 active and proposed coal mines and projects worldwide account for more than 90% of global coal production. The adoption of climate commitments aimed at phasing out coal power generation could expedite ongoing trends in coal-mining job losses. This shift occurs even as employment opportunities in renewable energy and construction have surpassed 50% of total energy employment.
Most affected coal-mining workers are situated in Asia, where over 22 lakh jobs are at risk. In particular, China, with over 15 lakh coal miners, produces more than 85% of its coal output and employs half of the world’s coal workforce. India, the second-largest coal producer globally, has an official workforce of approximately 3,37,400 miners, but studies suggest a significant number of “informal” employees.
As nations and corporations consider coal phase-down strategies to limit global warming to 1.5 degrees Celsius, the report posits that only 2,52,200 miners would be required to sustain global coal production, given the existing global average labor productivity ratio.
However, the report warns that most mines expected to close in the coming years lack planning to extend their operational life or facilitate a transition to a post-coal economy. Therefore, the importance of viable transition planning cannot be overstated. Governments must prioritize the well-being of coal miners and their communities during this energy transition, taking inspiration from successful models like Spain, which regularly reviews the impacts of decarbonization.
Ultimately, the global transition from coal is essential to reduce greenhouse gas emissions, combat climate change, and secure a sustainable future. The recent consensus at the UN climate talks in Glasgow in 2021 to phase down coal power and phase out fossil fuel subsidies underscores the growing global commitment to addressing the root causes of global warming and climate change.
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