A Just Transition for Coal-Mining Regions. Part 1: Commitments That Cannot Be Avoided
Closing a mine is not the end. It is one of the most critical stages in the entire life cycle of a mining enterprise. And at the same time, it is the moment when the community, the government, and international partners must make a choice: to leave behind a problem or to create an opportunity.
Ukraine’s coal industry is shrinking. This is not the decision of a single government—it is a combination of several irreversible processes: coal is becoming economically unviable even without emissions restrictions; Ukraine has committed to phasing out coal-fired power generation and has even voluntarily set a target to do so by 2035; EU accession requires compliance with strict standards for reducing greenhouse gas emissions and pollutants.
The question is not whether the mines will close. This is an irreversible process. The question is how it will happen: with a plan and support, or without them.
What is changing in global practice is not just the technology used to close mines. Expectations are changing. Former mine sites are no longer viewed solely as a burden requiring stabilization and reclamation. They are being reimagined as strategic land assets in the energy transition. Large tracts of land, existing infrastructure, and proximity to power grids and railways—all of this makes former mine sites suitable for a wide range of industrial facilities, including renewable energy generation plants and energy storage facilities.
These include potential energy hubs, industrial parks, tourist attractions, and geothermal systems. For example, Dnipro Polytechnic National Technical University assessed the geothermal potential of all 12 mines in the Chervonohrad Group: the expected thermal capacity is up to 754 kW per mine, with a payback period of 4–10 years.
However, if such a transformation is simply “imposed” on the mining landscape without community involvement, it risks becoming yet another decision made without taking local interests into account. This is one of the key mistakes Ukraine can avoid if it acts thoughtfully.
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This material was produced with the support of the International Renaissance Foundation and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, on behalf of the German Federal Ministry for Economic Affairs and Energy (BMWE), as part of the project: “Multi-Stakeholder Initiative for Just Transition (MIST).” This material represents the position of the DiXi Group and does not necessarily reflect the views of the International Renaissance Foundation, the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, or the German Federal Ministry for Economic Affairs and Energy (BMWE).
Source: DiXi Group
