81319453-Just Transformation for Coal Mines in India

The Multi-Donor Action "Application of Just Transition Principles in the Closure and Repurposing of Coal Mines in India" is jointly co-financed by the European Union and the German Federal Ministry for Economic Cooperation and Development (BMZ) and implemented by GIZ as part of the BMZ funded project "Just Energy Transition in Coal Regions in India". Background: India is the world's second largest producer, consumer, and importer of coal. With the present trend of the energy sector, it is likely that coal demand may peak after 2035 and subsequently coal demand may undergo gradual tapering. Coal mining is concentrated mainly in economically underdeveloped states such as Jharkhand, Odisha, and Chhattisgarh in northeastern India, where almost all aspects of economic and social life are closely intertwined with the coal industry. The heavy dependence on the coal sector extends to sources of income, government revenue, and technical and social infrastructure. The Indian coal sector directly employs hundred thousand of people. A large additional group of people is informally employed in the coal sector (estimated at several hundred thousand). Further people (estimated at several million) are directly or indirectly dependent on the coal industry. The closure of mines has serious impacts on their livelihoods, especially when considering not only the mine operators and their workforce, but also regional supply chains. Due to this high degree of dependence, the challenges for structural change that meets sustainability criteria are enormous. The growing capital intensity of coal mining in India has already led to a steady decline in employment in this sector over the past decades. However, due to the low level of economic diversification, there are hardly any alternative income opportunities in the coal-mining regions. In many coalfields have exhausted, and more than 300 mines are already unprofitable and are no longer in use. However, there are no plans for their final and environmentally sound closure and for the socio-economic development of the adjacent areas. Uncoordinated mine closures without clear guidelines for the reuse of the land and without taking into account the social and economic impact on the affected communities pose significant health, environmental and safety risks, and threaten to further worsen the already precarious living conditions of vulnerable populations, especially women. There is a lack of suitable instruments for the implementation and scaling of the sustainable closure of coal mines as well as sufficient knowledge and skills of the relevant actors. This inhibits a coherent and environmentally friendly implementation of the closures. The people affected need economic alternatives as well as access to vocational education and training in order to reduce unemployment, social inequality and the vulnerability of vulnerable groups. A regulatory framework for mine closures is under development but is not yet fully developed. The 2009 guidelines have already been revised four times but are still considered incomplete and inadequate by the government and experts. In addition, there is a lack of participatory procedures that are essential for broad acceptance, legitimation and long-term anchoring of planning and implementation processes. There is also a lack of suitable instruments for an expert assessment and planning of the mine closure. There are also insufficient financing options for a sustainable transformation. Relevant empirical knowledge about sustainable mine closures is lacking, as are national and international networks of experts to build the necessary capacities. The closure of coal mines in India has so far taken place without concrete action plans and sustainable reuse strategies that adequately take into account environmental concerns and the gender-equitable socio-economic development of the affected communities (core problem).Overall, sustainable coal mine closure requires integrated solutions that combine climate, energy and environmental goals with qualification, economic diversification and gender equality in order to meet the requirements of a Just Transition. The sustainable closure of coal mines, including their subsequent use, has been initiated in India on the basis of Just Transition principles. In this context, the action supports the Government"s vision by working on three outputs: 1) In three pilot districts, the planning process for the sustainable closure of coal mines, including their repurposing and the socio-economic development of adjacent areas, has been completed. 2) The capacities of the actors important for the sustainable closure of coal mines at the national, state and district levels have been strengthened. 3) The implementation of measures for the sustainable closure of coal mines, including their repurposing and the gender-equitable socio-economic development of adjacent areas, is initiated.