Facilitating a just transition for Ukraine’s coal regions

Context

Five regions with 25 towns and cities are directly affected by coal mining and the long-term phase-out of coal. Although Ukraine’s Government has already identified non-profitable mines for future closure, the regional labour market, manufacturing industry and economy are still highly dependent on this sector.

Despite the massive infrastructure destruction and energy challenges in the wake of Russia’s war of aggression, the Ukrainian Government remains committed to making its international contribution to decarbonisation and the phasing-out of coal production. At the same time, it aims to ensure an economically and socially just transition for the regions affected.

Objective

Ukraine ensures that structural change in the context of the coal phase-out is socially and economically equitable, environmentally friendly, energy-efficient, and compliant with EU environmental and safety standards.

Approach

The project provides support by

• Promoting dialogue among stakeholders involved in the structural change
• Developing a needs-specific strategy for implementation purposes
• Drawing on best practices from other European coal regions
• Advising the Ukrainian Government and regional institutions on establishing a legal framework and policies for structural change
• Facilitating retraining and education measures
• Promoting small and medium-sized enterprises
• Preparing Just Transition Action Plans in collaboration with local stakeholders that reflect their shared vision for a better future.

The structural change processes developed for Lviv and Donetsk and the partner cities of Chervonohrad and Mynohrad serve as models for other coal regions.

To scale up structural change in other Ukrainian coal regions, the project is advising the Government of Ukraine on setting up a facility to host a trust fund, to which international donors can contribute.

Last update: October 2023