73,800 Job Cuts in Coal Sector by 2050 Spells Tough Times for Jharkhand and Chhattisgarh

The next 30 years are poised to be exceedingly challenging for those employed in the coal sector, particularly in the states of Jharkhand and Chhattisgarh, which together account for approximately 45% of India's coal production. The primary reason for this hardship is the significant reduction in coal sector jobs expected by mid-century.

A recent report from the Global Energy Monitor has issued a warning about these impending job losses. The report, authored by climate scientists Ryan Driskell Tate, Dorothy Mei, Satomi Sugaya, and Tiffany Means, highlights the urgent need for the government to explore alternative livelihood opportunities for the 74,000 workers and their 250,000 dependents.

Key outcome of the report

• Approximately 414,200 mine workers face potential job losses as mines could cease operations before 2035, equating to around 100 workers affected daily on average.
• By 2050, almost 990,200 coal mine jobs may disappear due to expected industry closures, impacting around 37% of the current workforce. This could occur even without climate-related commitments or policies aimed at phasing out coal.
• China and India are expected to be severely impacted, with China's Shanxi province potentially losing the most jobs globally, amounting to nearly 241,900 by 2050.
• Coal India, the largest producer, faces the most significant potential job cuts, with 73,800 jobs at risk by the mid-century.
• India, following China, is anticipated to experience one of the most substantial declines in coal mine employment by 2050.
• Until 2035, nearly 100 coal mining jobs could be lost daily as existing coal mines reach their operational limits.

37,400 people working in mines

Coal India officially employs approximately 337,400 individuals, yet studies indicate that for each direct employee in India's coal mining sector, there are an estimated four informal workers. This underscores the necessity for India, which has yet to determine its peak coal year and continues to boost coal production for energy security, to implement energy transition policies. These policies are essential to absorb the potential workforce impact and to redirect these workers into alternative employment opportunities.

Sandeep Pai, Director at Swaniti, emphasized the significance of this research in comprehending the socio-economic consequences of energy transition. This level of data holds substantial potential in shaping equitable transition strategies for fossil fuel workers worldwide. For instance, such foundational data could assist in estimating the magnitude of job creation necessary to support workers transitioning out of the fossil fuel industry.

Most affected by mine closure is West Bengal

Prof. Runa Sarkar, Professor, Indian Institute of Management, said that the report by the Global Energy Monitor taking stock of the impact that a coal phase out will have on the global coal industry with respect to coal miners is a wakeup call to the enormity of the problem at hand. Ii identifies that India could stand to lose over 60,000 miners in the next two decades as coal mines close down, with Coal India being the largest loser, with 73,800 jobs at risk till 2050. The coal mining region most affected by mine closure is West Bengal in India. Further, for every worker affected in the formal economy, at least four others are affected in the informal sector.

"India, however, has yet to commit to a peaking year for coal production, and at present, coal production is on the rise, with talks of reopening some closed mines to meet current demand. It is important to recognise that in the normal course of things a push towards efficiency in production would lead to process automation and a concomitant loss of jobs (see Figure 6 of the report)", Prof. Runa added.

Energy transition strategies must work

Dorothy Mei, Project Manager for the Global Coal Mine Tracker, said, "Coal mine closures are inevitable, but economic hardship and social strife for workers is not. Viable transition planning is happening, like in Spain where the country regularly reviews the ongoing impacts of decarbonization. Governments should draw inspiration from its success in planning their own just energy transition strategies."

Ryan Driskell Tate, Coal Program Director, said, "We need to put workers first on the agenda if we want to make sure the just transition isn't just talk. With technologies and markets primed for an energy transition, we have to be proactive about the unique concerns of coal miners and their communities."

Tiffany Means, Researcher, said "The coal industry has a long list of mines that will close in the near term-many of them state-owned enterprises with a government stake. Governments need to shoulder their share of the burden to ensure a managed transition for those workers and communities as we move into a clean energy economy."