Energy transition: the decline of coal and massive layoffs to be expected in the sector
The energy transition is underway and the coal sector is paying the price. According to a study carried out by the American NGO Global Energy Monitor, up to 15% of coal-related jobs are threatened worldwide. By 2035, the closure of coal mines could result in the loss of 400,000 jobs, a figure that could rise to as many as 1 million by 2050.
China, the world’s largest coal producer, would be particularly affected by this transition. With 1.5 million jobs in the sector, the northwest province of Shanxi could lose up to 240,000 jobs by 2050. The reasons for this prediction are the automation of the sector and upcoming restructuring.
India, another major player in coal production, should also suffer the consequences of this energy transition. The state-owned company Coal India Ltd, the world’s largest coal producer, has already seen its workforce decline by 13 to 14,000 people each year. By 2050, it could eliminate an additional 74,000 jobs.
South Africa is also affected by this problem. According to the research organization Krutham, the province of Mpumalanga, which concentrates 82% of national coal production, would see 48,000 jobs threatened by 2030.
Faced with these massive layoffs, it is essential to offer alternative solutions for workers in the coal sector. A common recommendation is to support them in their retraining for future jobs in green energies, such as solar or wind power. South Africa has also included a professional retraining component worth $151 million in its investment plan for the energy transition.
According to the International Renewable Energy Agency (IRENA), the green transition is expected to boost growth in the renewable energy sector, with the creation of 38 million jobs by 2030.
In conclusion, the energy transition inevitably leads to the decline of coal and massive layoffs in the sector. It is now essential to support coal workers in their retraining for the jobs of the future in green energies, while stimulating the growth of this sector to create new job opportunities.