Transforming coal-producing regions into low-carbon economies is imperative to achieve the 1.5-degree Celsius target. However, for countries like Indonesia, this transition presents complex economic challenges due to a heavy reliance on coal exports and employment.

This briefing paper examines the urgency of a just transition that not only mitigates climate risks but also protects social welfare and creates new growth opportunities. Drawing on lessons from the transformation in Shanxi Province, China, and coal-producing regions across Southeast Asia, this report provides strategic recommendations on early economic diversification, human capital investment, institutional readiness, and sustainable financing schemes. Through this analysis, policymakers are guided to design resilient roadmaps that ensure an inclusive and sustainable post-coal future for affected communities.

Editor : Arief Rosadi

Energy Transition, Low-Carbon Economy, Coal-Producing Regions, Just Transition, Economic Diversification, Southeast Asia, Shanxi Province, Indonesia, 1.5-Degree Target, Human Capital, Sustainable Finance, Climate Policy, Post-Coal, Inclusive Growth.