Just transition away from coal: Vulnerability analysis of coal districts in India

Abstract

India as an important stakeholder in climate action, indicates a rapid transition in its energy system and phasing out of coal. However, coal being a critical component in its energy basket for energy security and energy poverty, phasing out will have multiple socio-economic implications at local level. Inclusion of justice in transition away from coal needs to account for the vulnerability of coal-dependent regions and identify trade-offs and synergies between developmental policies and climate change mitigation. The study attempts to understand how the burden of coal phase out is distributed across districts through vulnerability index. The analysis of socio-economic indicators gives a comprehensive picture of the vulnerability and the capacity of the district to adapt to the transition. The results shows that the vulnerability to coal phase out is highly regional and concentrated to the top 10 districts on the vulnerability index. The micro analysis of the indicators shows that, while coal revenue contributes positively to the national economy and state economy, at the local (district) level fiscal dependency of coal is limited to high coal dependent districts. The study contributes to developmental policies and framing of India's just coal transition policy. The study suggests that coal phased out also presents an opportunity to rebuild the vulnerable districts.