Compensating affected parties necessary for rapid coal phase-out but expensive if extended to major emitters

L. Nacke, V. Vinichenko, A. Cherp, A. Jakhmola & J. Jewell. (2024). Compensating affected parties necessary for rapid coal phase-out but expensive if extended to major emitters. Nature Communications 15, 3742. Open Access. DOI: https://doi.org/10.1038/s41467-024-47667-w

Coal power phase-out is critical for climate mitigation, yet it harms workers, companies, and coal-dependent regions. We find that more than half of countries that pledge coal phase-out have “just transition” policies which compensate these actors. Compensation is larger in countries with more ambitious coal phase-out pledges and most commonly directed to national and regional governments or companies, with a small share going directly to workers. Globally, compensation amounts to over $200 billion (uncertainty 163-258), about half of which is funded through international schemes, mostly through Just Energy Transition Partnerships and the European Union Just Transition Fund. If similar transfers are extended to China and India to phase out coal in line with the Paris temperature targets, compensation flows could become larger than current international climate financing. Our findings highlight that the socio-political acceptance of coal phase-out has a tangible economic component which should be factored into assessing the feasibility of achieving climate targets.

Coal phase-out pledges follow peak coal: evidence from 60 years of growth and decline in coal power capacity worldwide

O. M. Lægreid, A. Cherp, J. Jewell. (2023). Coal phase-out pledges follow peak coal: evidence from 60 years of growth and decline in coal power capacity worldwide. Oxford Open Energy 2. Open Access. DOI: https://doi.org/10.1093/ooenergy/oiad009

Transitioning to net-zero carbon emissions requires phasing-out unabated coal power; however, recently it has only been declining in some countries, while it stagnated or even increased in others. Where and under what circumstances, has coal capacity reached its peak and begun to decline? We address this question with an empirical analysis of coal capacity in 56 countries, accounting for 99% of coal generation in the world. The peaks in national coal power have been equally spread per decade since 1970. The peaks are more likely to occur in country-years with high levels of electoral democracy, higher GDP per capita, slower electricity demand growth, and with low levels of political corruption. Normally, peaking coal power preceded rather than followed political coal phase-out pledges, often with long time lags. We conclude that though the cost of coal alternatives are declining and concerns over climate change increasing, coal power does not automatically peak even in situations with low demand growth, aging power plants and high import dependence. A quick and decisive destabilization of coal regimes requires, in addition, having sufficient economic capacities and strong democratic governance.

Coal-exit alliance must confront freeriding sectors to propel Paris-aligned momentum

S.L. Bi, N. Bauer & J. Jewell. (2023). Coal-exit alliance must confront freeriding sectors to propel Paris-aligned momentum. Nature Climate Change 1-10. DOI: https://doi.org/10.1038/s41558-022-01570-8

The global phase-out of coal by mid-century is considered vital to the Paris Agreement to limit warming well-below 2 °C above pre-industrial levels. Since the inception of the Powering Past Coal Alliance (PPCA) at COP23, political ambitions to accelerate the decline of coal have mounted to become the foremost priority at COP26. However, mitigation research lacks the tools to assess whether this bottom-up momentum can self-propagate toward Paris alignment. Here, we introduce dynamic policy evaluation (DPE), an evidence-based approach for emulating real-world policy-making. Given empirical relationships established between energy-economic developments and policy adoption, we endogenize national political decision-making into the integrated assessment model REMIND via multistage feedback loops with a probabilistic coalition accession model. DPE finds global PPCA participation <5% likely against a current policies backdrop and, counterintuitively, foresees that intracoalition leakage risks may severely compromise sector-specific, demand-side action. DPE further enables policies to interact endogenously, demonstrated here by the PPCA’s path-dependence to COVID-19 recovery investments.

Phasing out coal for 2 °C target requires worldwide replication of most ambitious national plans despite security and fairness concerns

V. Vinichenko, M. Vetier, J. Jewell, L. Nacke  & A. Cherp.  (2023). Phasing out coal for 2 °C target requires worldwide replication of most ambitious national plans despite security and fairness concerns. Environmental Research Letters 18, 014031. Open Access. DOI: https://doi.org/10.1088/1748-9326/acadf6

Ending the use of unabated coal power is a key climate change mitigation measure. However, we do not know how fast it is feasible to phase-out coal on the global scale. Historical experience of individual countries indicates feasible coal phase-out rates, but can these be upscaled to the global level and accelerated by deliberate action? To answer this question, we analyse 72 national coal power phase-out pledges and show that these pledges have diffused to more challenging socio-economic contexts and now cover 17% of the global coal power fleet, but their impact on emissions (up to 4.8 Gt CO2 avoided by 2050) remains small compared to what is needed for achieving Paris climate targets. We also show that the ambition of pledges is similar across countries and broadly in line with historical precedents of coal power decline. While some pledges strengthen over time, up to 10% have been weakened by the energy crisis caused by the Russo-Ukrainian war. We construct scenarios of coal power decline based on empirically-grounded assumptions about future diffusion and ambition of coal phase-out policies. We show that under these assumptions unabated coal power generation in 2022–2050 would be between the median generation in 2 °C-consistent IPCC AR6 pathways and the third quartile in 2.5 °C-consistent pathways. More ambitious coal phase-out scenarios require much stronger effort in Asia than in OECD countries, which raises fairness and equity concerns. The majority of the 1.5 °C- and 2 °C-consistent IPCC pathways envision even more unequal distribution of effort and faster coal power decline in India and China than has ever been historically observed in individual countries or pledged by climate leaders.

Quitting fossil fuels: how fast can the world do it?

J. Jewell, M. Vetier, V. Vinichenko, O.M. Lægreid, S. Pai, A. Cherp, H. Brauers, I. Braunger, L. Nacke, H. Zerriffi. (2022). Quitting fossil fuels: how fast can the world do it? Policy brief.

To meet climate targets, fossil fuel use needs to rapidly decline. Has anything similar happened in the past? Do current coal phase-out efforts put us on the path to save the climate? And how would such radical fossil fuel decline affect fossil fuel workers? To answer these questions, we analyzed historical precedents of fossil fuel decline, current efforts to phase-out coal and future pathways to reach climate targets.

We find surprising precedents of decline in the 1970s and 80s when industrialized wealthy economies responded to the oil crises. At the same time, the current pledges of coal phase-out are insufficient to deliver on the 1.5°C targets and are limited to countries with low costs and high enough capacity to overcome those costs. Nevertheless, in spite of the opposition from fossil fuel workers to transitions, we identify opportunities for low-carbon jobs to replace fossil fuel jobs.

Download and read the policy brief from the Contractions project.

Phases of fossil fuel decline: Diagnostic framework for policy sequencing and feasible transition pathways in resource dependent regions

L. Nacke, A. Cherp, J. Jewell. (2022). Phases of fossil fuel decline: Diagnostic framework for policy sequencing and feasible transition pathways in resource dependent regions. Oxford Open Energy 1. Open Access. DOI: https://doi.org/10.1093/ooenergy/oiac002

Phasing out fossil fuels requires destabilizing incumbent regimes while protecting vulnerable groups negatively affected by fossil fuel decline. We argue that sequencing destabilization and just transition policies addresses three policy problems: phasing out fossil fuels, transforming affected industries, and ensuring socio-economic recovery in fossil resource-dependent regions. We identify the key mechanisms shaping the evolution of the three systems associated with these policy problems: (i) transformations of technological systems addressed by the socio-technical transitions literature, (ii) responses of firms and industries addressed by the management and business literature and (iii) regional strategies for socio-economic recovery addressed by the regional geography and economics literatures. We then draw on Elinor Ostrom’s approach to synthesize these different bodies of knowledge into a diagnostic tool that enables scholars to identify the phase of decline for each system, within which the nature and importance of different risks to sustained fossil fuel decline varies. The main risk in the first phase is lock-in or persistence of status quo. In the second phase, the main risk is backlash from affected companies and workers. In the third phase, the main risk is regional despondence. We illustrate our diagnostic tool with three empirical cases of phases of coal decline: South Africa (Phase 1), the USA (Phase 2) and the Netherlands (Phase 3). Our review contributes to developing effective policy sequencing for phasing out fossil fuels.

Dynamic Evaluation of Policy Feasibility, Feedbacks and the Ambitions of COALitions

S. Bi, N. Bauer, J. Jewell. (2021). Dynamic Evaluation of Policy Feasibility, Feedbacks and the Ambitions of COALitions. In Review. Research Square. PrePrint.

The Paris Agreement prioritised international bottom-up climate negotiations. Meanwhile, research has asserted the coal exit as a prerequisite for Paris-consistent pathways. The Powering Past Coal Alliance (PPCA), an opt-in initiative toward phasing-out coal-fired electricity by mid-century, embodies both paradigms but currently encompasses just 5% of global coal demand. To assess its long-term prospects against Paris-consistent pathways, we couple the energy-economy model REMIND to an empirical coalition accession model and demonstrate a novel scenario analysis technique, Dynamic Policy Evaluation (DPE). Capturing co-evolutionary feedbacks between policy uptake and global energy markets, we simulate nationally-and-temporally-fragmented PPCA accession and analyse its sensitivity to coalition growth, sectoral ambition, and Covid-19-related uncertainty. Surprisingly, we find that virtually global PPCA participation achieves <3% of 1.5oC-consistent coal declines, as non-electric consumption remains unregulated. In contrast, our median-estimate scenario (82% accession) assuming economy wide coverage achieves ~53% efficacy (virtually-global: ~85%), suggesting that the PPCA should prioritise policy ambition over coalition expansion.

Historical precedents and feasibility of rapid coal and gas decline required for the 1.5°C target

V. Vinichenko, A. Cherp, J. Jewell. (2021). Historical precedents and feasibility of rapid coal and gas decline required for the 1.5°C target. One Earth 4, 1477–1490. Open Access. DOI: https://doi.org/10.1016/j.oneear.2021.09.012

To limit global warming to 1.5C, fossil fuel use must rapidly decline, but historical precedents for such large-scale transitions are lacking. Here we identify 147 historical episodes and policy pledges of fossil fuel decline in 105 countries and global regions between 1960 and 2018. We analyze 43 cases in larger systems most relevant to climate scenarios. One-half of 1.5C-compatible scenarios envision coal decline in Asia faster than in any of these cases. The remaining scenarios as well as many scenarios for coal and gas decline in other regions have precedents only where oil was replaced by coal, gas, or nuclear power in response to energy security threats. Achieving the 1.5C target will be difficult in the absence of fossil fuel decline mechanisms that extend far beyond historical experience or current pledges.

Solar has greater techno-economic resource suitability than wind for replacing coal mining jobs

S. Pai, H. Zerriffi, J. Jewell & J. Pathak. (2020). Solar has greater techno-economic resource suitability than wind for replacing coal mining jobs. Environmental Research Letters. 15 (3), 034065. Open Access. DOI: https://doi.org/10.1088/1748-9326/ab6c6d.

Coal mining directly employs over 7 million workers and benefits millions more through indirect jobs. However, to meet the 1.5 °C global climate target, coal's share in global energy supply should decline between 73% and 97% by 2050. But what will happen to coal miners as coal jobs disappear ?Answering this question is necessary to ensure a just transition and to ensure that politically powerful coal mining interests do not impede energy transitions. Some suggest that coal miners can transition to renewable jobs. However, prior research has not investigated the potential for renewable jobs to replace 'local' coal mining jobs. Historic analyses of coal industry declines show that coal miners do not migrate when they lose their jobs. By focusing on China, India, the US, and Australia, which represent 70% of global coal production, we investigate: (1) the local solar and wind capacity required in each coal mining area to enable all coal miners to transition to solar/wind jobs; (2) whether there are suitable solar and wind power resources in coal mining areas in order to install solar/wind plants and create those jobs; and (3) the scale of renewables deployment required to transition coal miners in areas suitable for solar/wind power. We find that with the exception of the US, several GWs of solar or wind capacity would be required in each coal mining area to transition all coal miners to solar/wind jobs. Moreover, while solar has more resource suitability than wind in coal mining areas, these resources are not available everywhere. In China, the country with the largest coal mining workforce, only 29% of coal mining areas are suitable for solar power. In all four countries, less than 7% of coal mining areas have suitable wind resources. Further, countries would have to scale-up their current solar capacity significantly to transition coal miners who work in areas suitable for solar development.

Prospects for powering past coal

J. Jewell, V. Vinichenko, L. Nacke, & A. Cherp. (2019). Prospects for powering past coal. Nature Climate Change, 9(8), 592–597. Gated. DOI: https://doi.org/10.1038/s41558-019-0509-6. Preprint.

To keep global warming within 1.5 °C of pre-industrial levels, there needs to be a substantial decline in the use of coal power by 2030 and in most scenarios, complete cessation by 2050. The members of the Powering Past Coal Alliance (PPCA), launched in 2017 at the UNFCCC Conference of the Parties, are committed to “phasing out existing unabated coal power generation and a moratorium on new coal power generation without operational carbon capture and storage”. The alliance has been hailed as a ‘political watershed’ and a new ‘anti-fossil fuel norm’. Here we estimate that the premature retirement of power plants pledged by PPCA members would cut emissions by 1.6 GtCO2, which is 150 times less than globally committed emissions from existing coal power plants. We also investigated the prospect of major coal consumers joining the PPCA by systematically comparing members to non-members. PPCA members extract and use less coal and have older power plants, but this alone does not fully explain their pledges to phase out coal power. The members of the alliance are also wealthier and have more transparent and independent governments. Thus, what sets them aside from major coal consumers, such as China and India, are both lower costs of coal phase-out and a higher capacity to bear these costs. To limit warming, a rapid reduction in coal use is needed. Early retirement of coal power plants by members of the Powering Past Coal Alliance, which includes mainly wealthy countries that use little coal, would have a modest climate impact. Prospects for expanding the Alliance are examined.

Comparing electricity transitions: a historical analysis of nuclear, wind and solar power in Germany and Japan

Cherp, A., Vinichenko, V., Jewell, J., Suzuki, M. & Antal, M. (2017). Comparing electricity transitions: a historical analysis of nuclear, wind and solar power in Germany and Japan. Energy Policy, 101, 612-628. Open Access. DOI: https://doi.org/10.1016/j.enpol.2016.10.044.

This paper contributes to understanding national variations in using low-carbon electricity sources by comparing the evolution of nuclear, wind and solar power in Germany and Japan. It develops and applies a framework for analyzing low-carbon electricity transitions based on interplay of techno-economic, political and socio-technical processes. We explain why in the 1970s–1980s, the energy paths of the two countries were remarkably similar, but since the 1990s Germany has become a leader in renewables while phasing out nuclear energy, whereas Japan has deployed less renewables while becoming a leader in nuclear power. We link these differences to the faster growth of electricity demand and energy insecurity in Japan, the easier diffusion of onshore wind power technology and the weakening of the nuclear power regime induced by stagnation and competition from coal and renewables in Germany. We show how these changes involve the interplay of five distinct mechanisms which may also play a role in other energy transitions.