As the world is moving towards a net zero future, a prerequisite for meeting the 1.5-degree climate target, coal phase-down has become inevitable. As India aims to achieve net zero by 2070, and states like Jharkhand, with its coal-rich legacy, play a crucial role in this transition. Jharkhand produces 17% of India’s total coal and hosts 108 coal mines, the highest in the country. Districts like Dhanbad, Ramgarh, and Bokaro contribute significantly to this output, and alongside coal production, these regions house coal-dependent industries, thermal power plants, and mining-based livelihoods. The heavy reliance of communities and local economies on coal calls for an urgent need for strategic planning and diversification. With Jharkhand establishing a Just Transition Task Force in 2022, the state is taking proactive steps toward a sustainable and equitable transition. Developing long-term strategies that address both industrial and household coal dependencies is essential to ensure a smooth and inclusive shift toward a low-carbon future.
To contribute to understanding Jharkhand’s net zero future and just transition plans, we conducted a first-of-its-kind mixed-method study including a household survey, an enterprise survey, multiple interviews and policy analysis of two of the highest coal-producing districts in Jharkhand: Ramgarh and Bokaro. Our study aims to discuss coal dependency and give sector-specific recommendations for economic diversification in both these districts.
Our research identifies that while many households continue to see coal as a preferred sector for their future employment, there is significant interest in transitioning to alternative industries, including tourism, food processing, and others to support the transition away from coal. As Jharkhand moves forward with its net-zero plans, insights gained from analyzing coal dependencies and exploring diversification opportunities in these districts will be crucial in shaping effective policies and strategies. By identifying promising alternative sectors and understanding local community needs, we can promote sustainable economic diversification that not only reduces reliance on coal but also enhances the resilience and long-term prosperity of these communities.