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Page 1: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

A just transition for Queensland

November 2015

Published online by the Queensland Conservation Council in partnership with 350org on Wednesday the

18th of November 2015 in Brisbane Queensland

Report Author Ahri Tallon

A very big and special thank you goes to the Coal Action Network Aotearoa for publishing their pioneering

lsquoJobs After Coalrsquo report upon which this report has been adapted The New Zealand report was originally

published May 2014 and was then updated April 2015 Some parts of this report are from the New Zealand

report but have had additional information added Written by Cindy Baxter Jenny Campbell Rachel Eyre

Zella Downing Jeanette Fitzsimons Kristin Gillies Tim Jones and Rosemary Penwarden (Cindy Baxter amp

Zella Downing 2014)

With thanks for input and review to

Kirsten Macey Shanather Wong Kirsty Workman John Ingram Drew Hutton Sean Kelly Nigel Pratt Rocky

Henry Zane Alcorn Patricia Julien Nichola Hungerford Sabrina Chakori Scarlett Squire Amanda Cahill Ian

Daniels Ellie Smith Ellen Roberts Christine Carlisle Moira Williams Gemma Plesman Louise Mattiesson

Abraham OrsquoNeil Daniel Musil David Kerin Jessica Miller Nichola Hungerford and Rod Campbell

Design by Sharon France of Looking Glass Press Pty Ltd

JOBS AFTER COAL A Just Transition for Queensland | i

Contents

Foreword iii

Executive summary iv

Key recommendations for the State Government of Queensland vi

1 Coalrsquos current role in the Queensland economy 1Coal in the Queensland economy 1

Revenue and economic activity generated by the coal Industry 4

Coal industry jobs and their locations 4

Summary 5

2 The drivers of change in the coal industry 6Drivers of change 6

The international coal price 7

International mining companies 10

The outlook for coal prices 11

The carbon bubble 12

Summary 14

3 Assessing some of the economic opportunities in mining regions 15Introduction 15

Agriculture and aquaculture 16

Tourism and recreational fishing 17

Higher education 18

Bio-industrial products 18

Renewable energy 20

4 Community transitions Global case studies 22La Trobe Valley 23

Banwen 23

Orkney 23

Nord-Pas De Calais 24

Appalachia (Kentucky) 24

5 A just transition for coal mining communities policy recommendations 25Recommendations 27

Conclusion 32

References 33

ii | JOBS AFTER COAL A Just Transition for Queensland

Bowen Basin coal mine and surrounding area

JOBS AFTER COAL A Just Transition for Queensland | iii

Foreword

The coal industryrsquos impact on the state of Queensland has had its

peak and is now in decline This makes right now the most important

time to be thinking about not just stopping the industryrsquos destruction

of prime agricultural land but also how we build the alternatives for

regions where coal has become so economically dominant

There are so many opportunities for Queensland to move forward

We have a growing population diverse people and cultures abundant

natural resources that have the potential to be used sustainably and

we are so close to the new epicentre of change in the world in Asia

One finds it hard to imagine how the many social and economic opportunities our state has available

to us can be ignored how some leaders can still be so fixed in their intent to indefinitely expand the

coal mining industry when it is so clear the people of Queensland the people of Australia and the world

wants to move forward

This report is about the people of Queensland taking the initiative to communicate a positive new vision

of what our future economy and the journey to arrive there can look like It is the beginning of a new

chapter in the conversation about coal that has been getting closer and closer to being opened as more

people realise the devastating impacts the industry is having

Most of all this report is about justice not just for the planet but for workers and citizens who have done

nothing wrong to work in the coal industry It is about justice for workers who have been supporting our

economy supporting our towns our clubs and being part of our community Finally it is about justice for

the families in mining communities who deserve the support to help them plan their future beyond coal

It is the government and it is the mining corporations that have allowed these communities to be placed

in an increasingly risky situation However it is the responsibility of all of us to help them out of it and it

is now time to take that responsibility

Drew Hutton

President of the Lock the Gate Alliance

iv | JOBS AFTER COAL A Just Transition for Queensland

Executive summary

This report is calling for a Just Transition for coal communities in Queensland The term is not well known in

common Australian political rhetoric The lsquoJust Transitionrsquo term in this report is defined as a transition that

supports environmental policies with a fair distribution of the costs and benefits across the economy and

that support the creation of opportunities for active engagement by those affected to determine the future

wellbeing of themselves and their families

There is substantial international literature on the concept of a Just Transition Reports by and for Australian

Canadian and South African unions are just a sample of the literature diversity Many organisations by way

of example the Organisation for Economic Development and Cooperation the United Nations Environment

Program the International Labour Organisation the United Nations Framework Convention on Climate Change

and the World Wildlife Fund have produced literature on the matter

All over the world where communities have been largely dependent on a single unsustainable industry they have

throughout history been forced to transition Sometimes this is sudden unplanned and involves considerable pain

Most of which is felt by people working in those industries This unfortunately has been the experience so far in

Central Queensland with numerous mining companies cutting costs and forcing redundancies that have caused

families to leave the region The volatility of the Queensland coal industry has not been managed well by our either

colluding or timid state governments depending on which party is in power

Around the world there are stories we can look towards to find inspiration Some communities have reinvented

themselves creating new industries and jobs minimising the impacts on local people and establishing stronger

local economies We discuss some case studies in the report of communities which have achieved some

impressive results Inspiration can be found in the UK and South African movements to create One Million

Climate Jobs (Jobs 2015) Trade Unions have united with environmental organisations academics and other

civil society groups to write a blueprint for the creation and financing of 1 million low carbon long-term jobs in

each country Some of these initiatives include jobs in public transport in energy and in housing and jobs to

localise and secure food supply and protect water resources (Change 2010)

The market is telling us that coal is an energy source in decline Renewable energy investment is skyrocketing

air pollution controls are being stepped up around the globe and countries are preparing for much stronger

action on climate change As a major carbon exporting country Australia is in serious economic risk of being

caught in the midst of a rapidly hastening global energy transition Australia must develop energy and climate

strategies that are more in tune with international developments and capture the economic opportunities to

transition away from fossil fuels and towards renewable energy To do this we need strong leadership from

the business sector our communities and because of the speed and resources that will be required in this

transition our governments

JOBS AFTER COAL A Just Transition for Queensland | v

The Queensland government is under pressure from mining corporations and other stakeholders to keep the

coal industry going strong Faced with the challenge of creating an economic vision beyond coal our political

leaders have chosen for too long to capitulate to this pressure The coal industry is in denial about its terminal

decline The question community members are left to ponder is if the industry knew its days were counted

would it still try and squeeze as much support out of the government as possible To try to make as many

subsidised profits as it can before throwing in the towel We canrsquot wait and risk the livelihoods of citizens

in coal communities to find out The alternative for the people of Queensland and the Government is to

admit that the decline is terminal and stop delaying the re-orientation of policy and the economy to support

sustainable industries

Challenges faced by the different mining industry towns are quite different from one another As such the

planning of a just transition requires a diverse and adaptative strategic approach For example the challenges

the mining industry towns of Mackay and Rockhampton are facing are substantially different than the ones

the specifically mining operation towns of Moranbah and Blackwater are facing Different regions with

different levels of economic dependency on coal will require unique transitionary solutions and strategies

These different approaches needed are best understood by and will require leadership from the local

community to have the best chances of success

The economic and geographical difference between thermal and coking coal operations is another significant

complexity Often both coal types will be referred to as one homogenous industry by the media and politicians

This misguided referencing makes having a discussion about the different futures for each industry

difficult Coking coal has a substantially different outlook to thermal coal and needs to be discussed and

considered separately Policy supporting a just transition needs to carefully consider their uniqueness and the

implications this has for planning support resources and initiatives in different coal regions where each type

of coal has a different level of operational and economic intensity

The political conversation about a Just Transition has only just started to emerge Rumblings and whispers

of the actions and policies necessary within the environment and labour movements have been building

momentum Policies are being discussed and cooperatives are being launched throughout Australiarsquos coal

communities Significantly this issue is building important relationships between environment groups and

labour unions that have complimentary objectives within the Just Transition framework Their collaborations

are building a stronger and more cooperative civil society and strengthening the fabric of our democracy It is

hoped that this report will help contribute to this momentum so that some tangible and clear actions are seen

in the very near future

vi | JOBS AFTER COAL A Just Transition for Queensland

Key recommendations for the State Government of Queensland

1 Establishing a unit within the State Government to support coal mining regions to transition to new economies

The unit would

bull Work on the ground in coal mining communities to bring government expertise into regional entities

bull Analyse barriers to the creation of competitive advantages for alternative sustainable industries

bull Identify actions the State Government can take to support sustainable industries

bull Provide research funding to that prioritises low carbon technologies and industry sectors with increased triple bottom line sustainability potential

2 Support community leadership in diversifying local economies through the establishment of democratic regional entities that

bull Lead in the development of their communitiesrsquo transition strategies

bull Researching the transition opportunities and pathways for the community

bull Planning and initiating re-training programs for workers from affected industries

bull Facilitate support programs for new businesses cooperatives and social enterprises based on the needs and strategies of communities

bull To take stock of the existing resources skills and successful businesses on which a new future can be built

bull Run an analysis of the social environmental and economic needs of the community

bull Establish economic diversification projects including value-added local production worker controlled co-operative enterprises and new community-based enterprises

bull Work in collaboration with regional councils and economic development organisations

3 Support researching and communicating how the just transition can take place

bull Providing regular academic standard situational analysis of the global energy markets shifts to keep the public informed about energy market trajectories

bull Support regional entities to research the number of jobs that are dependent on coal the skills of those employed the level of local national and global long- and short-term risk to local mining operations the transferability of jobs to other industries local opportunities for new enterprises and their needs and the local educational and training needs and resources

bull Researching how the transition scenarios could differ depending on the level and relativity of thermal and coking coal industries across coal mining communities

JOBS AFTER COAL A Just Transition for Queensland | vii

4 Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

bull Develop a plan to grow competitive advantage across industries that have potential for sustainability and growth in regional mining communities

bull Organise a State Economic Summit to assess existing industry clusters identify the potential of new and emerging industries consider their competitiveness and key capabilities and identify barriers to increasing competitive advantage

5 Provide social protection of workers their families and incomes

bull Create individual mine employment transition plans in cooperation with mining companies and local communities ready for when mines cease operating

bull Penalising mining companies that do not give adequate notice of their closure or restructuring

bull Subsidising workers at a full living income level for a maximum of four years who do not have adequate employment available to them at the time of redundancy to undertake training for careers that support the establishment of the new economy in their community

6 Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

bull Support and finance Unions to play facilitating roles in community transitions

bull Engage Unions to

- Provide career planning and advice

- Negotiate preferential hiring for displaced workers in the new alternative emerging industries

- Lead the establishment of work controlled cooperatives

7 Provide training opportunities for coal workers and communities

bull Mandating coal mining companies to fund education and training for their workers that give them skills for other industries

bull Funding training programs to assist retrenched workers from the coal industry to attain continued retraining and re-education

viii | JOBS AFTER COAL A Just Transition for Queensland

8 Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

bull Bringing mine site rehabilitation standards in Queensland to global best practice

bull Mandate that mine sales are not made to companies without adequate capital to properly rehabilitate the mine site

bull Increasing mining security deposits to ensure that the full cost of third party mine site rehabilitation is progressively implemented and signed off by governments throughout the life of the mine

bull Ban the sale of mines where rehabilitation responsibilities are not complete or behind schedule

bull Support the nationally coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions described above and more detailed policy changes

9 Remove all subsidies and tax payer funded support to coal mining

bull Review and remove all hidden subsidies to the coal industry within the state government

10 Sound investment and resource revenue management

bull Commission an economic assessment of the possible economic mechanisms and changes to existing policies that could fund the above measures to the extent that will be necessary

bull Set aside a percentage of coal royalties for funding the diversification of coal mining regions

JOBS AFTER COAL A Just Transition for Queensland | 1

1 Coalrsquos current role in the Queensland economy

Coal in the Queensland economyOver the last 30 years the Queensland coal industry has grown substantially to become a significant part of

the Queensland economy and create employment in many regional areas The industry has been concentrated

in the Bowen and Surat Basins throughout rural western and central Queensland The boom for the industry

began in 2005ndash2006 when prices for coal rose by around 400 causing massive industry profits in the

2000s (Stanford 2014) Prices have fallen dramatically since the flow on effects of the global financial crisis

(GFC) slowed down Chinarsquos growth in 2011ndash2012 However prices have remained much higher than the

below US$40tonne that was averaged through the 90s and earlier (Quandlcom 2015)

Queensland coal train

2 | JOBS AFTER COAL A Just Transition for Queensland

Over the last five years since the GFC and later slow down in coal demand the total Queensland coal

production has after decades of growth levelled off at just over 200 million tonnes per annum (Figure 1)

0

50

100

150

200

250

2008ndash09 2009ndash10 2010ndash11 2011ndash12 2012ndash13

Mill

ion

tonn

es

Figure 1 Queensland Coal Production 2008ndash09 to 2012ndash13 Source Queensland Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13

Queensland uses 20 to 25 million tonnes of its mined coal for electricity generation each year (Government

2014) But the rest which is 85 to 90 of the mined coal is exported to countries all over the world and

mainly to Asia In 2013ndash14 33 of the production was thermal coal and 67 was for coking coal production

to make steel (Table 1) Both thermal and coking coal create greenhouse gas emissions when they are burnt

However contrary to government and media perceptions the coal industry is not the sole driving force

behind the Queensland economy As in most modern economies the service industry dominates with 60

of economic output followed by the construction industry with 10 manufacturing at 7 and agriculture

forestry and fishing at 3 (ABS 2014)

An overview of the Queensland coal industry would not be complete without an examination of its level of

foreign ownership By volume 80 of Queenslandrsquos coal production is foreign owned (Government 2013)

This means that a majority of the profits from the operations of these companies are being directed out of

Australia to international shareholders

JOBS AFTER COAL A Just Transition for Queensland | 3

Table 1 Queensland Coal Mining Areas Production and Types 2009ndash10 to 2013ndash14

2009ndash2010 2010ndash2011 2011ndash2012 2012ndash2013 2013ndash2014

Mines operating 56 57 58 59 59

Saleable production Open-cut

Northern 76 450 64 167 62 632 71 268 78 953

Central 63 319 52 637 56 032 63 871 73 801

Southern 39 339 37 423 45 010 43 709 43 651

Total (mt) 179 108 154 227 163 674 178 848 196 405

Underground

Northern 7 642 8 965 9 492 13 266 11 470

Central 18 968 16 642 15 082 14 511 18 433

Total (mt) 26 611 25 606 24 574 27 776 29 903

Coking coal total 125 178 108 731 117 000 131 328 151 571

Thermal coal total 80 540 71 103 71 247 75 296 74 737

State total 205 719 179 834 188 247 206 624 226 309

Source Queensland Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13

Abbot Point

4 | JOBS AFTER COAL A Just Transition for Queensland

Revenue and economic activity generated by the coal Industry

As a nation the coal industry is Australiarsquos second

largest export earner after the iron ore industry Last

year it generated $40 billion which equal to about

12 of export revenue (Cleary 2015) The coal

industry in Queensland will pay around $2 billion

which amounts to 80 of total mining royalties

to the state Government in 2014ndash15 (Campbell

2014) Coal royalties represent around 4 of

Queensland Government revenue (Vorrath 2014)

Similar amounts come from vehicle registrations

and interests on funds saved for superannuation

in addition to long service leave entitlements as

shown in Figure 2 Such figures are not large in the

financial context of running a state government

Despite this the taxation contribution of coal is

incorrectly perceived as significant

The large revenues derived from coal exports

is due to the massive volumes the industry has

reached in recent years Total revenue to the coal

industry from its mining operations amounts to

approximately $25 billion per year that is added

to the economy This is a significant contribution

to Queenslandrsquos economy but one that needs

to be viewed relative to the size of the economy

Queenslandrsquos economy produced output worth

$290 billion in 2012ndash13 meaning the coal

sector accounted for around 7 of production

by value as shown in Figure 3 (right)

Commonwealth grants

Other staterevenue

MV registration

3

4840

54Interest

Coal royalties

Figure 2 Queensland State Government Revenue SourcesSource Queensland Treasury (2014) Queensland State Budget 2014ndash15 Paper 2

Non-mining

Other

2

91

7

Coal

Figure 3 Queensland gross state product coal other mining and non-mining sectors 2012ndash13 Source ABS (2013) Catalogue 52200 Australian National Accounts State Accounts

Coal industry jobs and their locationsThere has been much debate recently as to the exact number of people employed by the coal mining industry

Industry figures have been disputed because of the industryrsquos continual representation and communication

of construction jobs as if they were permanent In addition the industry conspicuously classifies indirect

growth in employment within the local economy as jobs that mining development is responsible for creating

Although in regional mining communities mining employment is high it is relatively small on a statewide

JOBS AFTER COAL A Just Transition for Queensland | 5

level Most recently the industryrsquos employment claims were revealed again in the Australian Land Court

case regarding coal mining development by Indian mining company Adani in the Galilee Basin to have been

exaggerated (Cox 2015) Adanirsquos mine proposal cited the figure of 10000 jobs attached to its development

application but the court was told by Adanirsquos own expert witness that the mine development would only

create 1464 actual jobs throughout the ongoing operation of the mine (Branco 2015)

According to research by The Australia Institute a majority of Queenslanders believe that the mining industry

employs ten times the amount of people it actually does (Campbell 2014) In reality the report shows that

the coal industry only employs 12 of the Queensland workforce (Vorrath 2014) What is significant is how

this employee population is regionally distributed with a majority of the employees residing in the Central

Highlands Isaac and Mackay Regional Council areas (Figure 4)

0

5000

10000

15000

20000

25000

30000

Whitsu

nday

Suns

hine C

oast

Banan

a

Rockh

ampt

on

Brisba

ne

Cent

ral H

ighlan

dsIsa

ac

Macka

yTo

tal

Em

ploy

men

t

Figure 4 Coal jobs by Local Government Area (LGA) in Queensland Top 8Source ABS 2011 Census Coal mining jobs by region in Queensland

SummaryThe coal industry plays a significant role in the Queensland economy but it is by no means irreplaceable As

the next section will show the coal industry has fallen from the lofty heights of its unprecedented profitability

and aggressive hunger for expansion It has come to a slower pace but due to the forecasted change expected

to affect the industry a new approach to planning local economies beyond coal is required

6 | JOBS AFTER COAL A Just Transition for Queensland

2 The drivers of change in the coal industry

Drivers of change The global energy market is in a period of dynamic long-term structural change that will have ongoing

repercussions for energy exporting countries such as Australia Over the last ten years the expansion in gas

the decrease in renewable energy prices the increasing of capital infrastructure costs the demand for cleaner

energy and energy efficiency have all dramatically changed the nature of the global energy economy (Ben

Caldecott 2014)

Coal has been the energy source that has made so many technological advancements through history possible

Although there has been many struggles and social costs along the way The communities workers and

companies that made this progress possible have substantially contributed to the creation of the modern world

Though if there is one thing we know from history it is that empires rise and fall The coal empire is crumbling

As it crumbles it is creating unnecessary instability stress and hardship on communities In communities like

Mackay where income has dropped by 30ndash40 as many other small mining towns people and businesses have

been caught culturally and economically unprepared for this economic shift (Bleby 2013)

Windmill and wind farm

JOBS AFTER COAL A Just Transition for Queensland | 7

2 The drivers of change in the coal industry

Drivers of change The global energy market is in a period of dynamic long-term structural change that will have ongoing

repercussions for energy exporting countries such as Australia Over the last ten years the expansion in gas

the decrease in renewable energy prices the increasing of capital infrastructure costs the demand for cleaner

energy and energy efficiency have all dramatically changed the nature of the global energy economy (Ben

Caldecott 2014)

Coal has been the energy source that has made so many technological advancements through history possible

Although there has been many struggles and social costs along the way The communities workers and

companies that made this progress possible have substantially contributed to the creation of the modern world

Though if there is one thing we know from history it is that empires rise and fall The coal empire is crumbling

As it crumbles it is creating unnecessary instability stress and hardship on communities In communities like

Mackay where income has dropped by 30ndash40 as many other small mining towns people and businesses have

been caught culturally and economically unprepared for this economic shift (Bleby 2013)

It is clear that coal thermal coal especially is no longer good for humanity despite our former Prime Minister

Tony Abbottrsquos fervent belief that it is (Online 2014) WA Premier Colin Barnett heralded last year in his

declaration that coal is in lsquostructural declinersquo (Burrell 2014) He was not wrong In the past 5 years alone the

Dow Jones Total Coal Market index has fallen by 76 (Baker 2014)

The reality is that the world is rapidly shifting away from fossil fuels including countries that are key

importers of Australiarsquos coal and gas China India Japan and South Korea import over 80 of Australiarsquos

export market for coal and gas The reality is that these countries have recently either announced policies to

shift away from these fuels andor initiatives to drastically enhance renewable energy and energy efficiency

(ldquoPolitics of Climate Change in Asiardquo 2015)

The following section of the report analyses the risk of Australia not being prepared economically for changes

that are already taking place As a country and a state our governing political parties continue to pursue

a strategy that assumes our short and long term economic prosperity is dependent on mining Few of our

political leaders are attempting to communicate an economic vision free from the inevitable boom-bust cycles

created by extracting emissions-intensive resources It is also a strategy that assumes energy production and

distribution will continue on as a very centralised process rather than following the great trend of networked

and decentralised distribution that is shaping the 21st century (Riftkin 2015) This strategy is short-sighted

given recent announcements by China and India to phase out fossil fuels and move rapidly towards cleaner

and more distributed energy sources (Rohr 2014)

The international coal priceThe majority of Queenslandrsquos export coal mining industry is dependent on demand for steel making from

the worldrsquos coking or metallurgical coal market This is a market that has been severely impacted by a

combination of actions in China the biggest steel manufacturer in the world Primarily Chinarsquos housing

boom has been slowing down over recent years this in turn has massively reduced the need for steel Most

importantly China is also running a ldquowar on pollutionrdquo that is having direct short- and long-term impacts on

the viability of the coal industry as a whole This has resulted in a campaign of state enforced closures of coal

plants and steel mills especially near the countryrsquos big industrial coastal cities (Ng 2015)

Prices on the international coking coal stock market have plummeted from the all time high of US$330

tonne in late 2011 to a sobering low of US$109tonne in the first quarter of 2015 The outlook still remains

gloomy for the coal sector

With the continued slowdown in the global and Chinese economies the price of iron ore has also collapsed

Prices have dropped by one third in the first quarter of 2015 alone causing at least one Australian mine to

close operations and many others to cancel plans for expansions (Sandersen 2015) Iron ore is closely linked

to the sales of coking coal which is used most commonly to melt iron ore into steel

8 | JOBS AFTER COAL A Just Transition for Queensland

20

14

US

$t

0

100

200

300

400

2005 2007high quality high coking semi-soft coking

2009 2011 2013 2015

Figure 5 Coking Coal Prices 2005ndash2015 (worldcoalcom)

A similar price drop has hit thermal coal used in coal-fired power stations Thermal coal is mined in many

Surat Basin mines and is also found in some Bowen Basin mines where it is an addition to the high quality

coking coal found in the area Significantly the proposed mining development in the Galilee Basin is only

for thermal coal which at a time when coal-fired power stations are being replaced by cleaner options is

alarming (Pacific 2012) Thermal coal was priced at US$120tonne in late 2011 It had plunged to US$73

per tonne by February 2015 and has remained below US$60tonne since May 2015 Chinarsquos new rules of

cutting ash and sulphur content in seaborne coal imports along with increasing tariffs on coal imports has

meant that even Shenhua Chinarsquos biggest coal company cut coal imports in early 2015 (Jenda 2015)

Overall Chinese consumption dipped by 16 in 2014 despite their economic growth of 73

The decade of relentless and largely unplanned investment in Queensland coal mining in times of high prices

led to a massive oversupply against a background of decreasing demand The state and federal governments

failed to slow the industry down so that it did not overshoot an economically sustainable size This has made

the challenge of transitioning out of the industry even harder along with magnifying the pain now faced by

many mining towns (Neubauer 2015) All of this leaves a million-dollar question Is the downshift in [coal]

demand terminal According to Richard Gibbs from the Macquarie Bank it certainly is (Neubauer 2015)

The global coal market is also experiencing competition from renewables and shale gas slow growth and

government policies which are in part driven by the threat of climate change

The growing competition from renewable energy sources has been increasing its impact on the coal industry

by slowly but steadily eroding profits of domestic coal power stationsmdashand thus demand for coalmdashacross the

country (Hewson 2015) In Queensland the state government should be applauded for its 50 renewable

energy target by 2030 which will further add strain to struggling coal power generators (Parkinson 2015)

A more than 50 decline in coal prices has seen most listed coal companies globally to lose 80ndash90 of their

equity market value in the last four years (Buckley 2014) In 2014 the world added more energy generation

capacity from wind power than from coal Overall Europe and America have already cut coal-fired generation

JOBS AFTER COAL A Just Transition for Queensland | 9

capacity by over a fifth in a decade The sun will undoubtedly rise even further for renewable energy in 2015

but for coal there remains a lot further to fallrdquo said a report by the Institute for Energy Economics and

Financial Analysis in January 2015 (Buckley 2015a)

This statement is borne out by the facts

bull In 2014 new global wind installations grew 40 to 46GW led by China and America (Buckley

2015b)

bull In 2014 the US solar installation sector created almost 50 more jobs than the oil and gas pipeline

construction industry (Foundation 2015)

bull From 2000 to 2011 global annual growth in the yearly global installation rate of photovoltaic solar

panels was 40 In 2011 the total amount of global PV capacity installed was 27GW an astonishing

60 growth on 2010 levels (Green 2012)

bull Unsubsidised renewable energy is now cheaper than new coal-fired power in Australia (Paton 2013)

Solar installation

10 | JOBS AFTER COAL A Just Transition for Queensland

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

Coal power station

JOBS AFTER COAL A Just Transition for Queensland | 11

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

The outlook for coal pricesWhile some consider the outlook for coal prices as cyclical in nature and that a turnaround will increases

prices for coal other analysts believe this downward trend based on policies health impacts and concern

about global warming is here to stay

Financial reports from the major mining companies in Australia paint a grim outlook for global metallurgical

coal prices China was once the great hope for coking coal exporters but BHP Billitonrsquos metallurgical coal

market outlook (May 2013) indicated a flattening demand into the future (Billiton 2013 Rohr 2014)

BHP Billiton has warned that the increased usage of scrap metal in furnaces would result in lower growth in

demand for pig iron while greater production from electric arc furnacesmdashwhich use little or no coking coalmdash

are expected to ldquocontribute a significant share of total Chinese steel production by 2030rdquo Although coking

coal will likely remain necessary for steel production for some time as renewable energy sources grow the

efficiency and lower emissions intensity of electric arc furnaces will help them to outcompete coking coal in

the not too distant future Some experts even predict another technology called lsquodirect reduced ironrsquo that uses

gas to make steel could make coking coal redundant within a decade (Macleod 2013)

It is not just China BHP Billiton also cautions that the Indian steel outlook is less certain as steel production

growth has been slower than expected Prices for commodities from iron ore to coal are sinking as Chinarsquos

leadership tries to steer the economy away from debt-fueled property investment and smokestack industries

embracing services and domestic-led consumption At the same time President Xi Jinping is stepping up efforts

to combat pollution The provincial government of Beijing and a number of other major cities have made plans to

ban coal use by 2020 further putting the squeeze on all types of heavy industry (Coulter 2015)

However the outlook is not all dismal for coal everywhere In India demand is expected to continue to rise

without peaking until the 2030s Indiarsquos government predicts a 19 rise in coal imports this year which

may offer very short-term opportunities for Australian miners The opportunities are short term because these

import increases are something the Indian government has indicated it does not want continued into the

future Indiarsquos plan is to ramp up renewable energy technology as well as develop their untapped coal fields

to support a gradual phase out of thermal-coal imports within the next 2ndash3 years (Baker 2014) Regardless

the Indian mining giant Adani still hopes it can get coal from its proposed Carmichael mine in the Galilee

Basin and export it to India for the duration of its 60 year life span After a number of international banks

have ruled out funding for the Carmichael coal mine Adani has been looking for cash handouts from the

Australian Government to fund its shaky proposal However sanity has prevailed and these have been ruled

out by the new Prime Minister (Edis 2015) It is clear the Indian governmentrsquos plan for Indiarsquos future coal

supply sources does not involve Australian coal

12 | JOBS AFTER COAL A Just Transition for Queensland

This is the marketplace in which Australiarsquos exported coal competes and this is the marketplace that holds the

livelihoods of workers and communities in its hands The current state and future outlook of the coal industry

suggests that it would be risky not to scale down the thermal coal industry and at least restrict any new mine

expansions in the coking coal sector There are those who remain positive about the industryrsquos future but

recent events in the coal industry and uncertainty over medium and long term suggest that there are better

industries to back Behind these diverse risks threatening the coal industry is the inescapable scientific

fact that we cannot afford to burn any more coal from new coal mines if we want to decrease the risk of our

already fifty fifty chance of avoiding the worst impacts of global warming (IPCC 2013) If we wanted to try

and remove the total risk of runaway climate change we could not even afford to burn the coal that are sitting

in trucks on trains at port yards and in ships Not even the coal travelling on conveyors into power station

furnaces about to be burnt right this very moment

The carbon bubbleFrom the South Sea Bubble as well as the housing and dotcom bubbles of the last decade periodic over-

investment has been made into sectors deemed too important to fail The rush and hubris of investors seeking

incomparable profits to finance such industries has led to speculative bubbles of over-estimated value that

eventually burst In the economic fallout that results working people carry the burden while the speculators

and profiteers generally are not held accountable Another speculative bubble has formed and it dwarfs the

size of all of the bubbles that have come before it It is called the Carbon Bubble (Tracker 2015)

One of the few things world leaders agreed upon at the Copenhagen climate talks was that the Earth needs to

stay below 2degC warming to minimize the risk of runaway climate change

bull If we are to avoid going over 2degC we can emit only 565 more gigatonnes of carbon dioxide (IPCC 2007)

bull Burning the fossil fuel that corporations now have in their reserves would result in emitting 2795

gigatonnes of carbon dioxidemdashfive times the safe amount (Leaton 2013)

The Intergovernmental Panel on Climate Change has now produced its own carbon budget They have calculated

that if we continue pumping carbon into the atmosphere at todayrsquos rate this budget will be exhausted within

15ndash25 years (IPCC 2013) This means there will be growing political pressure on the fossil fuel industry to

keep most of its reserves in the ground That pressure has already begun around the world Citizens are pressing

their superannuation funds councils banks universities and other institutions to divest from fossil fuels with

growing success The year 2013 saw several major financial institutions recognise the financial and ethical

implications of continuing to finance fossil fuels with Norwegian Storebrand Rabobank and the World Bank

among those who made major announcements on divestment or cutting loans In 2014 major institutions

including Stanford University the Australian National University and Oxford University have divested their fossil

fuel funds (Advisors 2015) So far in 2015 local councils in Australia such as Moreland Newcastle Byron Bay

Melbourne and many more have also divested (Ryan 2015) Divestment is now going mainstream and will have

increasing impacts on fossil fuel company shares into the future

JOBS AFTER COAL A Just Transition for Queensland | 13

As a result of the momentum of the global divestment movement international stock exchanges are creating

new indexes to exclude fossil fuels in preparation of the impending seismic shift in global finances In late

April 2014 the worldrsquos largest fund manager Blackrock joined with the FTSE Group in London to create

a new index The ex-Fossil Fuels Index Series is an innovative set of benchmark indices that excludes

companies directly engaged in extracting so-called ldquostranded assetsrdquo in the hydrocarbons industry ldquoThis

is one of the fastest-moving debates I think Irsquove seen in my 30 years in marketsrdquo FTSE managing director

Kevin Bourne told the Financial Times (Clarke 2014) The Bank of England is now investigating its exposure

to risk from its fossil fuel investments To top that off the worldrsquos biggest sovereign wealth investment fund in

Norway has recently dumped coal investments (Carrington 2015) The largest contribution to climate change

from the fossil fuels in company inventories at present is from coal Because it has the largest climate impact

per unit of useful energy it is being targeted for early phase out

The book value of fossil fuel companies is determined not only by their current infrastructure and deposits

undergoing extraction but also by the size of their legally claimed reserves Because the book value of so

many companies has greatly exceeded their realisable value as emissions restrictions come into place a

speculative bubble has formed Unfortunately bubbles usually burst in the end leaving behind stranded

assets and stranded capitalmdashand leaving workers in the lurch The only alternative is a mature and planned

phase out of the industry that slowly devalues and deregisters fossil fuel reserves at a pace that does not lead

to financial crisis A planned phase out that gives time for just employment transitions for fossil fuel

communities

500

1000886

565

1500

2000

2500

3000

already burnt

remaining

2000ndash2050

2011ndash2050

Coal 2˚Global carbon

budget

Oil

Gas

GtC

O2

Global fossil fuel reserves

Figure 6 Carbontracker 2012 report The Carbon Bubble

14 | JOBS AFTER COAL A Just Transition for Queensland

In 2013 the report Unburnable Carbon highlighted that ldquoCompany valuation and credit ratings

methodologies do not typically inform investors about their exposure to these stranded assetsrdquo (Leaton

2013) This is very troubling when considering that the supporting share value of these reserves was $4

trillion in 2012 and that they serviced $127 trillion in outstanding corporate debt over the same period We

need to challenge these methodologies (Tracker 2015) In a move that signals a step towards the solutions

required the World Bank the European Investment Bank and the US Export-Import Bank have all announced

that they will not fund further coal-fired power plants except in exceptional circumstances As changes in

policy by the major coal consumers the uptake of renewables and the need to stay within the global carbon

budget begin to bite it is high-cost producers who will be squeezed first Australia is considered a high-cost

producer because of our strong industrial relations and wage laws which makes it all the more necessary that

our governments are vigilant and prepared for impending macroeconomic change (Cleary 2015)

SummaryThis is the environment in which the Australian coal industry finds itself Internationally coal is no longer

looking like a safe long-term investment within the context of the rapid changes afoot in the world The coal

industry leaders are either in denial about their industryrsquos future or are determined to squeeze as much profit

as possible until the cost gets worn by workers and their communities (Saunders 2015)

The issues of climate change demands for cleaner air and more efficient new technologies The realities of

the market are revealing coal as the sunset industry it really is This is not an industry Queenslanders can

rely on to create a stable resilient and sustainable economy It cannot be relied upon for future wealth

and future jobs We have been warned by the UN Climate Change Secretariatrsquos Executive Secretary that the

diversification and a managed transition away from coal is what we need to do and we need to heed this

warning (Australian 2015)

JOBS AFTER COAL A Just Transition for Queensland | 15

3 Assessing some of the economic opportunities in mining regions

IntroductionThe great state of Queensland is endowed with sustainable human and environmental resources that have the

potential if we choose to harness it to drive a balanced diverse and resilient economy for generations to

come Diversifying Queenslandrsquos economy to create sensible and stable prosperity beyond the boom and bust

vagaries of the mining industry must be a key objective of the Queensland Government The Newman LNP

Governmentrsquos Queensland Plan headline was lsquoforging diversity and prosperityrsquo (Government 2014) But

throughout Newmanrsquos reign as premier no action was taken Under the new Palaszczuk Labor Government

there has been some effort to support economic diversification across the state This is insufficient because as

of yet nothing has been done to adequately fund facilitate and empower the actual communities where

mining takes place The grassroots Labour Environmental Action Network an organisation within the

Australian Labour Party has called for change At the 2015 Queensland ALP State Conference they put

forward a motion that was passed calling on the state government to prepare a just transition policy before the

next conference (ALP 2015)

Grain harvest

16 | JOBS AFTER COAL A Just Transition for Queensland

Most importantly both major parties have continued their relentless support for further coal mine expansions

that inherently suffocate the process of diversification

With the coal industry forecast to be in a lsquostructural declinersquo by political leaders and bankers alike it is now

essential that the focus for economic development be on industries that can bring sustainable prosperity to

Queensland (Burrell 2014 Robins 2014) In the United Kingdom under Prime Minister Thatcher the world

witnessed the consequences of industries closing without planning and without investment to transition local

communities and industries

The following section of the report outlines how the opportunities for sustainable economic development

are already known Queensland has well-established sectors with bountiful potential in agriculture tourism

manufacturing and education It also has the opportunity to capitalise on a boom in renewable energy and

bio-industrial products to create more sustainable economic sectors These industries are ready to fill the

void that will be and is being left by coal however they lack the support needed to ensure their presence in

mining communities to provide a just transition away from coal where it is most needed

Agriculture and aquacultureCurrently the Queensland agricultural sector is worth near $147 billion and employs over 90000 people

(Queensland Government 2012) The sector has the potential to massively expand its food exports to Asia as

population and economic growth continue to surge in the dynamic economic region Through the competitive

advantage of our proximity to Asia and high-quality produce capabilities agricultural products have become

Queenslandrsquos second largest export earner and have the potential for continued growth (Heath 2014) By

increasing availability of farming technology driving productivity minimising costs and focusing on profitable

premium produce markets the Queensland Agricultural Strategy (2012) aims to double the total value of

production for all agricultural commodities by 2040 With innovative new farming approaches and ecosystem

system management strategies such increases in production are possible in a way which sustainably manages

and regenerates the land

To reduce pressure on fish stocks from home and abroad the promotion of aquaculture could be further

encouraged across the state This industry is worth $10 Million a year (Lucas DLGP 2011) At present

there are several sites located along the coast however research conducted over the last decade has

identified future sites for land based aquaculture Industry consultation aquaculture management training

programs and related issues in developing a workforce need to be considered (Plan 2012) The Queensland

Aquaculture Industry Federation sees the need for continued collaboration between government and other

stakeholders in order for this industry to reach itsrsquo potential as a strong core industry (Federation 2015)

The Department of Employment Economic Development and Innovation is leading the government drive to

JOBS AFTER COAL A Just Transition for Queensland | 17

develop the aquaculture industry This could see a future where aquaculture goes further than just meeting

domestic demand and grow to cater for high value export markets (Lucas DLGP 2011)

New opportunities in animal genetics aquaculture horticulture and bio-processing are driving agriculture

and aquaculture sector growth in new directions Both industries are about creating intergenerational

economic sustainability Choosing these industries that have unlimited potential to sustain our communities

and our ecosystems over mining is choosing long-term jobs over short-term jobs that cannot be passed on to

the next generation The bottom line is that we live in a hungry world and Queensland is well placed to be a

reliable and sustainable source of food to other nations without the agricultural potential we are endowed with

(Government 2014)

Tourism and recreational fishingDespite setbacks due to the high Australian dollar and loss of skilled workers to the mining boom the

tourism industry is still a critical part of the Queensland economy with massive future potential (Dr Tien Duc

Pham 2015) The tourism industry made a significant employment contribution providing 124000 jobs in

2010ndash11 with steady growth in international visitor nights (Deloitte Access Economics 2012) Queensland

has the potential to become a global leader in tourism and ecotourism and by doing so to create more

jobs and revenue (Government 2014) This will be possible similarly as in agriculture by promoting the

experiences available in our natural places and the quality hospitality we can provide to the growing Asian

middle class (Wilson 2013) The Chinese tourism market is seeking clean fresh and new experiences that

Queensland can cater to and is expected to be worth $74 billion by 2020 (Guterres 2014) Significant to

Queenslandrsquos potential in tourism is our ability to expand the tourism industry in the authentically Australian

rural and stunningly beautiful coastal mining communities where new economic activities are most needed

Further mining expansion in such places threatens to do to tourism what the growth in heavy industry did to

Gladstonersquos economic diversity where fishing and tourism are now non-existent

Although sustainably managed fisheries have the potential to provide continued economic prosperity to

Queensland there lies a major opportunity in net free fisheries to develop as tourism industries specifically

in coal mining regions A great recent example of this taking place is the newly established Net Free Zone

between from the Northern end of St Helens beach to Cape Hillsborough (Spelitis 2015) Along with three

other net free zones across the state the extent of the cumulative commercial opportunities for sustainable

tourism the net free zones have created has made it one of the three pillars as part of the 2020 vision for the

Queensland has the opportunity to develop an abundant and resilient agricultural industry that supports the transition to sustainable prosperity

18 | JOBS AFTER COAL A Just Transition for Queensland

Queensland Tourism Industry Council (Council 2015) The Mackay Isaac and Whitsunday (MIW) coal mining

region has excellent accessibility to a variety of fishing pursuits In addition to the new net free zone ther are

five fresh water stocked impoundment fisheries creating opportunities to promote lake beach offshore and

deepwater angling Improvement of accommodation facilities quality of jetties access roads and coordinating

fish trails with regional events could maximise visitation from recreational and tourism markets (Mackay

Tourism Tourism Queensland 2012) Charter fishing operatiors tackle stores campsites motels boat sales

boat building and maintenance all have the opportunity of benefitted from growth from the recreational fishing

tourism industry (Lucas DLGP 2012)

Higher educationOver the past decade millions of international students have visited Queensland for our quality tertiary

institutions and enjoyable lifestyle International education is Queenslandrsquos biggest service export with

nearly $2431 million being generated in 2013ndash14 alone (Australian Government 2014) The majority

of Queensland is strategically located in the latitudinal tropical zone where at a global level more than

50 of the worldrsquos population is forecasted to live by 2050 (Australian Government 2015) This makes

Queenslandrsquos universities well placed to develop the partnerships and research innovations tailored to the

challenges and opportunities of the new tropically-oriented world This will help Queensland and especially

North Queensland to attract increasing levels of international students to be part of our high-quality tropical

research institutions These students will increase spending through tourism support the creation of our own

skilled and globally connected workforce and connect Australia to business networks and opportunities across

the world In 2013ndash14 the Cairns region benefitted to the tune of $1375 million from international students

(McGuiggan 2014) With the right policies these benefits already being experienced primarily in Cairns

Townsville and Brisbane can be spread further across Queensland to make international education a strong

economic driver in transitioning mining communities

Bio-industrial productsAs the world moves away from fossil fuels the demand for cleaner more sustainable fuel sources will grow

(Emissions 2014) By using excess organic matter produced through food production to develop bio-industrial

products Queensland has the potential to export clean and sustainable fuels and bio-plastic materials to the

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Tourism is about experiences not extraction It has the potential to share Queensland beauty with the rest of the world and create sustainable local economies in the process

Queenslandrsquos greatest resource is the minds of its people We can share and co-create our innovations and learning with students from all over the world who want to make Queensland the launch pad for their careers

JOBS AFTER COAL A Just Transition for Queensland | 19

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Sorghum fields

20 | JOBS AFTER COAL A Just Transition for Queensland

Queensland is well placed to develop biofuel products from waste and oil crops such as Pongamia and algae

in addition to using the statersquos advanced sugarcane industry to convert excess cane using efficient cellulosic

processes Recent scientific developments in bio-plastics at the University of Queensland show that as a

state Queensland has the skills and ability to build a bio-industrial products industry that can contribute to a

sustainable economic future (Queensland 2015)

Renewable energyQueensland the sunshine state has enormous potential to generate electricity from the sun wind and waves

in addition to many other abundant renewable energy sources (Green 2012) Renewable energy has for a long

time been the catch cry from environmentalists as the complete solution to creating the jobs necessary to

replace the fossil fuel industry This report has been written partially to show recognition that as much as

renewable energy has the potential to create more jobs and replace fossil fuel domestic energy production it

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Gemasolar solar thermal power station Spain

JOBS AFTER COAL A Just Transition for Queensland | 21

cannot completely replace all of the coal

export industry jobs Numerous studies

show that with strong climate policies

over 7100 jobs can be created in

Queensland through renewable energy

by 2030 (Institute 2011) Thousands of

these jobs will be in regional

Queensland These should be prioritised

for regions where the mining industry

has developed rural communities in

need of new economic opportunities Far

North Queensland is especially suited to

further renewable energy investment

because of its climatic conditions and

because of the expensive transmissions

losses from having energy wired from

southern power sources (Allen 2011)

This makes it essential that government

policy ensures that the fair share of the

$35 billion in potential renewable

energy investment goes to rural mining

communities not only where it is most

needed economically but where it

makes the most business sense

(Department of Employment 2009)

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Queensland has the potential to become a smart sunshine state powered by clean and sustainable renewable energy By doing this we will be creating jobs in rural mining communities where they are needed most and building a foundation for a new sustainable economy

22 | JOBS AFTER COAL A Just Transition for Queensland

4 Community transitions Global case studies

There are communities around the worldwhich have reinvented themselves after the end of coal mining and

developed prosperous economies in doing so It has been a struggle but where there is a level of government

support inspired local leadership and the community is working together to regenerate its economy it has

been possible (Coal 2015) We are not suggesting any of these examples can be directly transferred to

Queensland communities facing the end of coal mining The object of these case studies is not to provide a

blueprint for Mackay Gladstone Rockhampton or mining towns in Central Queensland but to show the

diversity of ideas that have worked in other places that might stimulate our local communities to reinvent

themselves too

Hazelwood coal power station La Trobe Valley Vic

JOBS AFTER COAL A Just Transition for Queensland | 23

La Trobe ValleyIn the brown coal producing region of the La Trobe Valley in Victoria a grassroots transitionary force has been

underway for the past fifteen years Earthworker was set up by union and climate change activists seeking a

real alternative to coal and privately owned business models Earthworker Cooperativersquos mission is to create

jobs that respond to the lsquochallenges of climate change and the need for local job creation by facilitating the

establishment of worker-owned cooperatives hellip in sustainability-focused industriesrsquo (Earthworker 2015)

Their current focus is the establishment of a cooperative producing solar hot water systems in partnership

with an existing business called lsquoEverlast Hydro Systemsrsquo Their goal is to take production to Morwell in the

La Trobe Valley where workers are in need of an alternative to the coal industry The unique cooperative model

has made selling arrangement possible through inserting the option to buy a solar hot water system through

enterprise bargaining agreements

BanwenThe DOVE workshop in Banwen South Wales (Dove 2015) was started by agroup of women who during

the 1984ndash85 coal minersrsquo strike decided that community-based education was the most practical path to

regenerate the local economy Setting up shop in an abandoned mine office they developed a series of adult

education workshops for women Three decades later the DOVE building hosts a diverse set of small-scale

entrepreneurs including a daycare a library a community garden and a cafeacute featuring local foods

OrkneyOrkney like Central Queensland is a relatively isolated place with a scattered population Situated at the

top of Scotland two hours from the mainland by ferry Orcadians like Central Queenslanders often feel

like spectators to what goes on in the rest of their country They also feel vulnerable to central government

decisions and are often irritated by the lack of understanding of island life on the part of distant authoritiesmdash

its particular customs dialect and ways of doing things Since Norse times Orkney islanders burned peat (a

very young form of coal) as their primary fuel source but all the peat has been dug up This traditional way

of life where each farming family had its own peat bank and spent long summer days cutting and drying

peats while sharing picnics as children played is gone Another non-renewable energy source North Sea oil

discovered in the 1970s brought positive and negatives for the island It turned the tide of depopulation but

like the peat banks the oil is depleting and another lsquoend of an erarsquo is approaching Orcadians have woken up

to the fact that they canrsquot continue to hark back to the past and are confronting the issues of a future without

fossil fuels

Over the last three decades European community funding has helped Orkney to equip itself for the green

energy revolution Orkney now plays a global role in the evolution of wave and tidal technologies and

significant research and development work is creating new employment opportunities A high school in

Stromness was converted into the European Marine Energy Centre and is now a world leader providing

developers the opportunity to test full-scale prototypes in the sea The worldrsquos largest single-rotor tidal turbine

24 | JOBS AFTER COAL A Just Transition for Queensland

was the first in Scotland to be connected to the national grid from this centre Marine energy combined with

an expansion of wind turbines means that the island is now self-sufficient in electricity These renewable

energy developments have created jobs in the Orkneys in civil works and erection grid connection and

communications (Stuart 2011)

Investment in renewable energy and its associated RampD has attracted people to live work and study on the

island Islanders used to have to leave to get tertiary education but it is now possible to study for an MSc in

renewable energy at a Heriot Watt University campus in Stromness A new generation of Orcadians have grown

up to see renewable energy as the way of the future something quite ldquonormalrdquo which will provide greater

opportunities for their children to stay on the island with genuine prospects for employment in meaningful

jobs requiring a wide range of skills and qualifications This shows what a community in transition to a low

carbon future can look like

Nord-Pas De CalaisUntil 1986 the north-east region of France Nord-pas de Calais was a major coal mining area It still boasts

huge twin tailings mountains the largest in Europe which have become a tourist attraction It is known

to Australians for the war cemeteries associated with the battle of the Somme in WW1 but it has recently

undergone a remarkable transformation towards a truly sustainable economy Old coal mines at Lens have

been transformed into an art gallery displaying works from the Louvre collection in Paris Hundreds of people

are trained in energy efficiency solar energy and green architecture at a new training centre in nearby Loos-

en-Gohelle

The Chamber of Commerce invited economist and social visionary Jeremy Rifkin of the TIR Consulting

Group and his chief economist Skip Laitner to apply their model of the third industrial revolution to the

district (Riftkin 2015) Rifkinrsquos Third Industrial Revolution combines renewable energy energy efficiency

and the connectivity of the internet Buildings are energy generators and hydrogen is used as energy storage

After working with the community for some time the Master Plan was published in 2013 and envisages

that 100000 new jobs can be created by the transition plan (LLC 2013) Certainly the population has not

declined since mining days and has even slightly increased Inspired local leadership was the key in this

community plus some outside funding to help with the underpinning research

Appalachia (Kentucky)The transition process is just starting here but the community is very organised Kentuckians For The

Commonwealth has been battling the negative effects of coal mining for some decades and is now planning a

transition to ldquobuilding a better future beyond coalrdquo (Commonwealth 2015) Last year they held a conference

in Harlan Kentucky right in the middle of the Appalachian coal fields and invited guests from other US

regions in the same position as well as from Wales It is too soon to see what the outcome of their learning

process will be but they are another example of a community taking its future into its own handsmdashoptimistic

that there is a better future after coal

JOBS AFTER COAL A Just Transition for Queensland | 25

5 A just transition for coal mining communities policy recommendations

The opportunities to transition from unsustainable coal mining to prosperous communities with decent

employment will not just materialise by themselves It will need the political will and the right incentives to

ensure that communities are not left fending for themselves with unemployment increasing and families

in need of long-term welfare But not only is the political will not currently there both major political

parties continue to support the expansion of this sunset industry and by doing so are making the transition

challenges progressively more difficult (Denniss 2012) For too many years governments have uncritically

supported the coal mining sector Entire government departments have been focused on facilitating mining

with tax incentives weakening assessment and approval processes along with providing through tax payer

money established industrial infrastructure to support new projects Government policy often seeks to grow

royalties income by supporting the extraction of as much coal as possible as an escape the challenge of

finding other ways to increase state revenue New sustainable industries in coal communities will need just as

much if not more support while it gets started

We propose that communities local businesses workers unions community groups environment groups

local government and state and federal governments all need to be involved in planning a transition to

alternative forms of economic development and providing new jobs We call this a Just Transition (Anthea

Bill amp Evans1 2008 Brecher 2012) Just Transition is a framework for a fair and sustainable shift to a low

carbon economy proposed by trade unions and supported by environmental NGOs A Just Transition holds

that a shift to a lower carbon economy is vital to avoid dangerous climate change

Bimblebox Nature Refuge

26 | JOBS AFTER COAL A Just Transition for Queensland

Tough targets to cut greenhouse pollution supported by new environmental regulations and emerging carbon

markets will transform the global economy over the next decade These shifts will have major implications

for working people in energy supply industry and transport and for everyone as consumers There is a concern

that significant periods of economic restructuring in the past have often happened in a chaotic fashion

leaving ordinary workers along with their families and communities to bear the brunt of the transition to

new ways of producing wealth A just transition seeks to prevent such injustice becoming a feature of this

transition suggesting that it would not only be morally wrong and socially damaging but would undermine the

credibility of the transition itself and could slow or even halt the changes that must be made

It is through the challenges of communicating the urgency of climate change and other social and

environmental impacts that much of the debate about coal and its consequences for land water and the

climate has become unnecessarily adversarial and polarised Coal mining and power generation communities

deserve acknowledgement and appreciation for all that they have historically and currently contributed to

our country and our economy In communicating the economic shifts that are taking place and facilitating

the necessary transitions the Australian community needs to be respectful of the history and identity of coal

communities Environment groups government unions and the community need to initiate and engage in

the discussions about transitions in an open honest and compassionate manner Only by approaching the

transition in this way can the adversarial nature of the debate be broken down to make way for transformative

mutually respectful and holistic solutions

Whitsundays lsquoHave a Heart for the Reefrsquo

JOBS AFTER COAL A Just Transition for Queensland | 27

A just transition recognises that support for policies are conditional on a fair distribution of the costs and

benefits of those policies across the economy A just transition should also recognise that the creation of

opportunities for active engagement by those affected in determining the future wellbeing of themselves

and their families is essential for the long term empowerment of citizens and communities The following

recommendations have been written with the aim of emphasising such community empowerment as a priority

Recommendations

1) Establishing a unit within the State Government to support coal mining regions to transition to new economies

Specific institutions are needed to develop transition plans They need to have strong government support

and funding regional offices and representation from diverse stakeholders A dedicated unit within the

Department of Infrastructure Local Government and Planning could be established to oversee this work

They could work on the ground in the main coal mining communities to bring government expertise into

regional entities that would develop local plans that involve and empower the whole community This unit

or a connected unit would analyse existing barriers to the creation of competitive advantages for alternative

sustainable industries and would identify actions the State Government can take to support such creation

Any policy and support should come with clear conditions and timeframes These regional entities would

need generous budgets to assist local groups to develop their transition strategies to support research re-

training and the development of new business and community start-up initiatives based on the needs and

strategies of communities The key to communities becoming economically resilient is high levels of autonomy

and freedom in shaping their economic futures Research funding available to the regional entities will be

essential to the empowerment of local leadership Research funding should at least reach the OECD research

funding average and it should prioritise low carbon technologies and industry sectors with increased triple

bottom line sustainability potential

2) Support community leadership in diversifying local economies through the establishment of democratic regional entities

In each mining community a group of traditional and non-traditional community leaders willing to think

beyond lsquoBusiness as Usualrsquo to imagine a better future could be called together to work in collaboration with

and be resourced by the state government managed regional entities mentioned in recommendation one

The leaders would come from diverse backgrounds such as from local governments business associations

unions farming groups renewable energy businesses and educational institutions The objectives of these

leadership groups would be tailored to each community The objectives would in broad terms be to increase

employment in new diverse industries based on sustainable production and publicservice sector job creation

Expert facilitation alongside inclusive and democratic community engagement initiatives would be essential

to ensure the process and environment for creativity and innovation is maximised To develop such groups

it would be necessary to take stock of the existing resources skills and successful businesses on which a

new future can be built In addition an analysis of the social environmental and economic needs of the

28 | JOBS AFTER COAL A Just Transition for Queensland

community would also be beneficial These groups could then establish economic diversification projects

including value-added local production worker controlled co-operative enterprises and new community-

based enterprises that economically empower the local community Activities may also include support for

alternative industries in regard to process restructuring or subsidising the wages of workers displaced from

higher paying traditional industries

3) Support researching and communicating how the just transition can take place

Consistent research is needed on the best options to support the state and national economies to transition

This requires ongoing situational analysis of the global energy market shifts at both government levels In

addition each mining region will need assistance to research the number of jobs that are dependent on coal

the skills of those employed the level of local national and global long- and short-term risk to local mining

operations the transferability of jobs to other industries local opportunities for new enterprises and their

needs and the local educational and training needs and resources A key issue requiring research will be

around how the transitition scenarios differ depending on the level and relativity of thermal and coking coal

industries across coal mining communities The process for sourcing this information at a local and state

government level should be integrated into a policy feedback loop to support cyclical situational analysis and

policy adjustments from all levels of government This research should take place at the state level and be

encouraged at the industry and local level through grants

Mackay Central Queensland

JOBS AFTER COAL A Just Transition for Queensland | 29

4) Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

Many existing Queensland industries including those not highlighted in this report have the potential to

carry Queensland towards a new sustainable economy [sC5]mdashbut they will need support to do so Instead

of continuing to support and lower costs for the coal mining industry we need a plan to grow competitive

advantage across industries that have potential for sustainability and growth in regional mining communities

Along with industry and community organisations the State Government could organise a State Economic

Summit to assess existing industry clusters identify the potential of new and emerging industries consider

their competitiveness and key capabilities and identify barriers to increasing competitive advantage The

findings and recommendations from this Summit could be used to inform the work of the Unit established in

bullet point one above and the research outlined in bullet point two

5) Provide social protection of workers their families and incomes

If mines close suddenly workers need protection for their incomes and social services and possible relocation

even though many miners these days do not live in the communities where they mine Ideally these transition

plans would be developed early enough to ensure that new employment opportunities are in place for them

before mines actually close For many workers this is already too late but if the process begins now there will

be choices available for future retrenched coal workers who live in mining communities and regions Mining

companies could be incentivised andor penalised to give adequate notice to workers and other stakeholders

that closure may be impending and alternative economic opportunities need to be developed

6) Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

Involving the relevant unions in the planning of community transitions can enable them to move towards

becoming more proactive agents helping to plan the transition with critical networks and specific knowledge

about the needs of their members When a coal-fired power station in Washington State USA was scheduled

for closure for environmental reasons unions played a pivotal role persuading environmentalists and others

to delay the closure long enough for a Just Transition to provide different jobs for the workers This made it

possible for the coal resource to be replaced by wind and other renewable generation rather than natural

gasmdasha better environmental outcome and the unions became an active part in the phase out planning

Unions have a heavy workload defending workers rights and pay They need to be supported and financed to

play important roles in community transitions From facilitation and leadership of planning bodies career

planning and advice preferential hiring for displaced workers in the new alternative emerging industries and

leading the establishment of work controlled cooperatives unions have an essential role to play

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

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After Coal (2015) Community Regeneration West Virginia United States httpaftercoalcomengage-your-community Retrieved 10th of November 2015

Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

Arabella Advisors (2015) Measuring the Growth of the Global Fossil Fuel Divestment and Clean Energy Investment Movement httpwwwarabellaadvisorscomwp-contentuploads201509Measuring-the-Growth-of-the-Divestment-Movementpdf Retrieved 10th of November 2015

Australian Bureau of Statistics (2014) Australian National Accounts State Accounts 2012ndash13 Canberra Australia Retrieved 10th of November 2015

Australian Bureau of Statistics (2015) MackaymdashCensus Employment by IndustrymdashTime Series Australian Government Department of Employment Retrieved 10th of November 2015

Australian Government Department for Education and Training (2015) Draft National Strategy for International Education Canberra Australian Capital Territory Retrieved 10th of November 2015

Australian Government (2014) Export income to Australia from international education activity in 2013ndash14 Canberra Australia Retrieved 10th of November 2015

BHP Billiton (2013) Coal Briefing httpwwwbhpbillitoncom~mediabhpdocumentsinvestorsreports2013130529_coalbriefingpdf Retrieved 10th of November 2015

Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

Beyond Zero Emissions (2012) Laggard to Leader How Australia Can Lead the World to Zero Carbon Prosperity Melbourne University Melbourne Victoria Retrieved 10th of November 2015

Beyond Zero Emissions (2014) A Fossil Economy in a Changing World Melbourne University Melbourne Victoria httpmediabzeorgaufossileconomyFossilEconomypdf Retrieved 10th of November 2015

Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

One Million Climate Job Campaign (2015) About London United Kingdom httpclimatejobsorgzaabout Retrieved 10th of November 2015

Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 2: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

Published online by the Queensland Conservation Council in partnership with 350org on Wednesday the

18th of November 2015 in Brisbane Queensland

Report Author Ahri Tallon

A very big and special thank you goes to the Coal Action Network Aotearoa for publishing their pioneering

lsquoJobs After Coalrsquo report upon which this report has been adapted The New Zealand report was originally

published May 2014 and was then updated April 2015 Some parts of this report are from the New Zealand

report but have had additional information added Written by Cindy Baxter Jenny Campbell Rachel Eyre

Zella Downing Jeanette Fitzsimons Kristin Gillies Tim Jones and Rosemary Penwarden (Cindy Baxter amp

Zella Downing 2014)

With thanks for input and review to

Kirsten Macey Shanather Wong Kirsty Workman John Ingram Drew Hutton Sean Kelly Nigel Pratt Rocky

Henry Zane Alcorn Patricia Julien Nichola Hungerford Sabrina Chakori Scarlett Squire Amanda Cahill Ian

Daniels Ellie Smith Ellen Roberts Christine Carlisle Moira Williams Gemma Plesman Louise Mattiesson

Abraham OrsquoNeil Daniel Musil David Kerin Jessica Miller Nichola Hungerford and Rod Campbell

Design by Sharon France of Looking Glass Press Pty Ltd

JOBS AFTER COAL A Just Transition for Queensland | i

Contents

Foreword iii

Executive summary iv

Key recommendations for the State Government of Queensland vi

1 Coalrsquos current role in the Queensland economy 1Coal in the Queensland economy 1

Revenue and economic activity generated by the coal Industry 4

Coal industry jobs and their locations 4

Summary 5

2 The drivers of change in the coal industry 6Drivers of change 6

The international coal price 7

International mining companies 10

The outlook for coal prices 11

The carbon bubble 12

Summary 14

3 Assessing some of the economic opportunities in mining regions 15Introduction 15

Agriculture and aquaculture 16

Tourism and recreational fishing 17

Higher education 18

Bio-industrial products 18

Renewable energy 20

4 Community transitions Global case studies 22La Trobe Valley 23

Banwen 23

Orkney 23

Nord-Pas De Calais 24

Appalachia (Kentucky) 24

5 A just transition for coal mining communities policy recommendations 25Recommendations 27

Conclusion 32

References 33

ii | JOBS AFTER COAL A Just Transition for Queensland

Bowen Basin coal mine and surrounding area

JOBS AFTER COAL A Just Transition for Queensland | iii

Foreword

The coal industryrsquos impact on the state of Queensland has had its

peak and is now in decline This makes right now the most important

time to be thinking about not just stopping the industryrsquos destruction

of prime agricultural land but also how we build the alternatives for

regions where coal has become so economically dominant

There are so many opportunities for Queensland to move forward

We have a growing population diverse people and cultures abundant

natural resources that have the potential to be used sustainably and

we are so close to the new epicentre of change in the world in Asia

One finds it hard to imagine how the many social and economic opportunities our state has available

to us can be ignored how some leaders can still be so fixed in their intent to indefinitely expand the

coal mining industry when it is so clear the people of Queensland the people of Australia and the world

wants to move forward

This report is about the people of Queensland taking the initiative to communicate a positive new vision

of what our future economy and the journey to arrive there can look like It is the beginning of a new

chapter in the conversation about coal that has been getting closer and closer to being opened as more

people realise the devastating impacts the industry is having

Most of all this report is about justice not just for the planet but for workers and citizens who have done

nothing wrong to work in the coal industry It is about justice for workers who have been supporting our

economy supporting our towns our clubs and being part of our community Finally it is about justice for

the families in mining communities who deserve the support to help them plan their future beyond coal

It is the government and it is the mining corporations that have allowed these communities to be placed

in an increasingly risky situation However it is the responsibility of all of us to help them out of it and it

is now time to take that responsibility

Drew Hutton

President of the Lock the Gate Alliance

iv | JOBS AFTER COAL A Just Transition for Queensland

Executive summary

This report is calling for a Just Transition for coal communities in Queensland The term is not well known in

common Australian political rhetoric The lsquoJust Transitionrsquo term in this report is defined as a transition that

supports environmental policies with a fair distribution of the costs and benefits across the economy and

that support the creation of opportunities for active engagement by those affected to determine the future

wellbeing of themselves and their families

There is substantial international literature on the concept of a Just Transition Reports by and for Australian

Canadian and South African unions are just a sample of the literature diversity Many organisations by way

of example the Organisation for Economic Development and Cooperation the United Nations Environment

Program the International Labour Organisation the United Nations Framework Convention on Climate Change

and the World Wildlife Fund have produced literature on the matter

All over the world where communities have been largely dependent on a single unsustainable industry they have

throughout history been forced to transition Sometimes this is sudden unplanned and involves considerable pain

Most of which is felt by people working in those industries This unfortunately has been the experience so far in

Central Queensland with numerous mining companies cutting costs and forcing redundancies that have caused

families to leave the region The volatility of the Queensland coal industry has not been managed well by our either

colluding or timid state governments depending on which party is in power

Around the world there are stories we can look towards to find inspiration Some communities have reinvented

themselves creating new industries and jobs minimising the impacts on local people and establishing stronger

local economies We discuss some case studies in the report of communities which have achieved some

impressive results Inspiration can be found in the UK and South African movements to create One Million

Climate Jobs (Jobs 2015) Trade Unions have united with environmental organisations academics and other

civil society groups to write a blueprint for the creation and financing of 1 million low carbon long-term jobs in

each country Some of these initiatives include jobs in public transport in energy and in housing and jobs to

localise and secure food supply and protect water resources (Change 2010)

The market is telling us that coal is an energy source in decline Renewable energy investment is skyrocketing

air pollution controls are being stepped up around the globe and countries are preparing for much stronger

action on climate change As a major carbon exporting country Australia is in serious economic risk of being

caught in the midst of a rapidly hastening global energy transition Australia must develop energy and climate

strategies that are more in tune with international developments and capture the economic opportunities to

transition away from fossil fuels and towards renewable energy To do this we need strong leadership from

the business sector our communities and because of the speed and resources that will be required in this

transition our governments

JOBS AFTER COAL A Just Transition for Queensland | v

The Queensland government is under pressure from mining corporations and other stakeholders to keep the

coal industry going strong Faced with the challenge of creating an economic vision beyond coal our political

leaders have chosen for too long to capitulate to this pressure The coal industry is in denial about its terminal

decline The question community members are left to ponder is if the industry knew its days were counted

would it still try and squeeze as much support out of the government as possible To try to make as many

subsidised profits as it can before throwing in the towel We canrsquot wait and risk the livelihoods of citizens

in coal communities to find out The alternative for the people of Queensland and the Government is to

admit that the decline is terminal and stop delaying the re-orientation of policy and the economy to support

sustainable industries

Challenges faced by the different mining industry towns are quite different from one another As such the

planning of a just transition requires a diverse and adaptative strategic approach For example the challenges

the mining industry towns of Mackay and Rockhampton are facing are substantially different than the ones

the specifically mining operation towns of Moranbah and Blackwater are facing Different regions with

different levels of economic dependency on coal will require unique transitionary solutions and strategies

These different approaches needed are best understood by and will require leadership from the local

community to have the best chances of success

The economic and geographical difference between thermal and coking coal operations is another significant

complexity Often both coal types will be referred to as one homogenous industry by the media and politicians

This misguided referencing makes having a discussion about the different futures for each industry

difficult Coking coal has a substantially different outlook to thermal coal and needs to be discussed and

considered separately Policy supporting a just transition needs to carefully consider their uniqueness and the

implications this has for planning support resources and initiatives in different coal regions where each type

of coal has a different level of operational and economic intensity

The political conversation about a Just Transition has only just started to emerge Rumblings and whispers

of the actions and policies necessary within the environment and labour movements have been building

momentum Policies are being discussed and cooperatives are being launched throughout Australiarsquos coal

communities Significantly this issue is building important relationships between environment groups and

labour unions that have complimentary objectives within the Just Transition framework Their collaborations

are building a stronger and more cooperative civil society and strengthening the fabric of our democracy It is

hoped that this report will help contribute to this momentum so that some tangible and clear actions are seen

in the very near future

vi | JOBS AFTER COAL A Just Transition for Queensland

Key recommendations for the State Government of Queensland

1 Establishing a unit within the State Government to support coal mining regions to transition to new economies

The unit would

bull Work on the ground in coal mining communities to bring government expertise into regional entities

bull Analyse barriers to the creation of competitive advantages for alternative sustainable industries

bull Identify actions the State Government can take to support sustainable industries

bull Provide research funding to that prioritises low carbon technologies and industry sectors with increased triple bottom line sustainability potential

2 Support community leadership in diversifying local economies through the establishment of democratic regional entities that

bull Lead in the development of their communitiesrsquo transition strategies

bull Researching the transition opportunities and pathways for the community

bull Planning and initiating re-training programs for workers from affected industries

bull Facilitate support programs for new businesses cooperatives and social enterprises based on the needs and strategies of communities

bull To take stock of the existing resources skills and successful businesses on which a new future can be built

bull Run an analysis of the social environmental and economic needs of the community

bull Establish economic diversification projects including value-added local production worker controlled co-operative enterprises and new community-based enterprises

bull Work in collaboration with regional councils and economic development organisations

3 Support researching and communicating how the just transition can take place

bull Providing regular academic standard situational analysis of the global energy markets shifts to keep the public informed about energy market trajectories

bull Support regional entities to research the number of jobs that are dependent on coal the skills of those employed the level of local national and global long- and short-term risk to local mining operations the transferability of jobs to other industries local opportunities for new enterprises and their needs and the local educational and training needs and resources

bull Researching how the transition scenarios could differ depending on the level and relativity of thermal and coking coal industries across coal mining communities

JOBS AFTER COAL A Just Transition for Queensland | vii

4 Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

bull Develop a plan to grow competitive advantage across industries that have potential for sustainability and growth in regional mining communities

bull Organise a State Economic Summit to assess existing industry clusters identify the potential of new and emerging industries consider their competitiveness and key capabilities and identify barriers to increasing competitive advantage

5 Provide social protection of workers their families and incomes

bull Create individual mine employment transition plans in cooperation with mining companies and local communities ready for when mines cease operating

bull Penalising mining companies that do not give adequate notice of their closure or restructuring

bull Subsidising workers at a full living income level for a maximum of four years who do not have adequate employment available to them at the time of redundancy to undertake training for careers that support the establishment of the new economy in their community

6 Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

bull Support and finance Unions to play facilitating roles in community transitions

bull Engage Unions to

- Provide career planning and advice

- Negotiate preferential hiring for displaced workers in the new alternative emerging industries

- Lead the establishment of work controlled cooperatives

7 Provide training opportunities for coal workers and communities

bull Mandating coal mining companies to fund education and training for their workers that give them skills for other industries

bull Funding training programs to assist retrenched workers from the coal industry to attain continued retraining and re-education

viii | JOBS AFTER COAL A Just Transition for Queensland

8 Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

bull Bringing mine site rehabilitation standards in Queensland to global best practice

bull Mandate that mine sales are not made to companies without adequate capital to properly rehabilitate the mine site

bull Increasing mining security deposits to ensure that the full cost of third party mine site rehabilitation is progressively implemented and signed off by governments throughout the life of the mine

bull Ban the sale of mines where rehabilitation responsibilities are not complete or behind schedule

bull Support the nationally coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions described above and more detailed policy changes

9 Remove all subsidies and tax payer funded support to coal mining

bull Review and remove all hidden subsidies to the coal industry within the state government

10 Sound investment and resource revenue management

bull Commission an economic assessment of the possible economic mechanisms and changes to existing policies that could fund the above measures to the extent that will be necessary

bull Set aside a percentage of coal royalties for funding the diversification of coal mining regions

JOBS AFTER COAL A Just Transition for Queensland | 1

1 Coalrsquos current role in the Queensland economy

Coal in the Queensland economyOver the last 30 years the Queensland coal industry has grown substantially to become a significant part of

the Queensland economy and create employment in many regional areas The industry has been concentrated

in the Bowen and Surat Basins throughout rural western and central Queensland The boom for the industry

began in 2005ndash2006 when prices for coal rose by around 400 causing massive industry profits in the

2000s (Stanford 2014) Prices have fallen dramatically since the flow on effects of the global financial crisis

(GFC) slowed down Chinarsquos growth in 2011ndash2012 However prices have remained much higher than the

below US$40tonne that was averaged through the 90s and earlier (Quandlcom 2015)

Queensland coal train

2 | JOBS AFTER COAL A Just Transition for Queensland

Over the last five years since the GFC and later slow down in coal demand the total Queensland coal

production has after decades of growth levelled off at just over 200 million tonnes per annum (Figure 1)

0

50

100

150

200

250

2008ndash09 2009ndash10 2010ndash11 2011ndash12 2012ndash13

Mill

ion

tonn

es

Figure 1 Queensland Coal Production 2008ndash09 to 2012ndash13 Source Queensland Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13

Queensland uses 20 to 25 million tonnes of its mined coal for electricity generation each year (Government

2014) But the rest which is 85 to 90 of the mined coal is exported to countries all over the world and

mainly to Asia In 2013ndash14 33 of the production was thermal coal and 67 was for coking coal production

to make steel (Table 1) Both thermal and coking coal create greenhouse gas emissions when they are burnt

However contrary to government and media perceptions the coal industry is not the sole driving force

behind the Queensland economy As in most modern economies the service industry dominates with 60

of economic output followed by the construction industry with 10 manufacturing at 7 and agriculture

forestry and fishing at 3 (ABS 2014)

An overview of the Queensland coal industry would not be complete without an examination of its level of

foreign ownership By volume 80 of Queenslandrsquos coal production is foreign owned (Government 2013)

This means that a majority of the profits from the operations of these companies are being directed out of

Australia to international shareholders

JOBS AFTER COAL A Just Transition for Queensland | 3

Table 1 Queensland Coal Mining Areas Production and Types 2009ndash10 to 2013ndash14

2009ndash2010 2010ndash2011 2011ndash2012 2012ndash2013 2013ndash2014

Mines operating 56 57 58 59 59

Saleable production Open-cut

Northern 76 450 64 167 62 632 71 268 78 953

Central 63 319 52 637 56 032 63 871 73 801

Southern 39 339 37 423 45 010 43 709 43 651

Total (mt) 179 108 154 227 163 674 178 848 196 405

Underground

Northern 7 642 8 965 9 492 13 266 11 470

Central 18 968 16 642 15 082 14 511 18 433

Total (mt) 26 611 25 606 24 574 27 776 29 903

Coking coal total 125 178 108 731 117 000 131 328 151 571

Thermal coal total 80 540 71 103 71 247 75 296 74 737

State total 205 719 179 834 188 247 206 624 226 309

Source Queensland Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13

Abbot Point

4 | JOBS AFTER COAL A Just Transition for Queensland

Revenue and economic activity generated by the coal Industry

As a nation the coal industry is Australiarsquos second

largest export earner after the iron ore industry Last

year it generated $40 billion which equal to about

12 of export revenue (Cleary 2015) The coal

industry in Queensland will pay around $2 billion

which amounts to 80 of total mining royalties

to the state Government in 2014ndash15 (Campbell

2014) Coal royalties represent around 4 of

Queensland Government revenue (Vorrath 2014)

Similar amounts come from vehicle registrations

and interests on funds saved for superannuation

in addition to long service leave entitlements as

shown in Figure 2 Such figures are not large in the

financial context of running a state government

Despite this the taxation contribution of coal is

incorrectly perceived as significant

The large revenues derived from coal exports

is due to the massive volumes the industry has

reached in recent years Total revenue to the coal

industry from its mining operations amounts to

approximately $25 billion per year that is added

to the economy This is a significant contribution

to Queenslandrsquos economy but one that needs

to be viewed relative to the size of the economy

Queenslandrsquos economy produced output worth

$290 billion in 2012ndash13 meaning the coal

sector accounted for around 7 of production

by value as shown in Figure 3 (right)

Commonwealth grants

Other staterevenue

MV registration

3

4840

54Interest

Coal royalties

Figure 2 Queensland State Government Revenue SourcesSource Queensland Treasury (2014) Queensland State Budget 2014ndash15 Paper 2

Non-mining

Other

2

91

7

Coal

Figure 3 Queensland gross state product coal other mining and non-mining sectors 2012ndash13 Source ABS (2013) Catalogue 52200 Australian National Accounts State Accounts

Coal industry jobs and their locationsThere has been much debate recently as to the exact number of people employed by the coal mining industry

Industry figures have been disputed because of the industryrsquos continual representation and communication

of construction jobs as if they were permanent In addition the industry conspicuously classifies indirect

growth in employment within the local economy as jobs that mining development is responsible for creating

Although in regional mining communities mining employment is high it is relatively small on a statewide

JOBS AFTER COAL A Just Transition for Queensland | 5

level Most recently the industryrsquos employment claims were revealed again in the Australian Land Court

case regarding coal mining development by Indian mining company Adani in the Galilee Basin to have been

exaggerated (Cox 2015) Adanirsquos mine proposal cited the figure of 10000 jobs attached to its development

application but the court was told by Adanirsquos own expert witness that the mine development would only

create 1464 actual jobs throughout the ongoing operation of the mine (Branco 2015)

According to research by The Australia Institute a majority of Queenslanders believe that the mining industry

employs ten times the amount of people it actually does (Campbell 2014) In reality the report shows that

the coal industry only employs 12 of the Queensland workforce (Vorrath 2014) What is significant is how

this employee population is regionally distributed with a majority of the employees residing in the Central

Highlands Isaac and Mackay Regional Council areas (Figure 4)

0

5000

10000

15000

20000

25000

30000

Whitsu

nday

Suns

hine C

oast

Banan

a

Rockh

ampt

on

Brisba

ne

Cent

ral H

ighlan

dsIsa

ac

Macka

yTo

tal

Em

ploy

men

t

Figure 4 Coal jobs by Local Government Area (LGA) in Queensland Top 8Source ABS 2011 Census Coal mining jobs by region in Queensland

SummaryThe coal industry plays a significant role in the Queensland economy but it is by no means irreplaceable As

the next section will show the coal industry has fallen from the lofty heights of its unprecedented profitability

and aggressive hunger for expansion It has come to a slower pace but due to the forecasted change expected

to affect the industry a new approach to planning local economies beyond coal is required

6 | JOBS AFTER COAL A Just Transition for Queensland

2 The drivers of change in the coal industry

Drivers of change The global energy market is in a period of dynamic long-term structural change that will have ongoing

repercussions for energy exporting countries such as Australia Over the last ten years the expansion in gas

the decrease in renewable energy prices the increasing of capital infrastructure costs the demand for cleaner

energy and energy efficiency have all dramatically changed the nature of the global energy economy (Ben

Caldecott 2014)

Coal has been the energy source that has made so many technological advancements through history possible

Although there has been many struggles and social costs along the way The communities workers and

companies that made this progress possible have substantially contributed to the creation of the modern world

Though if there is one thing we know from history it is that empires rise and fall The coal empire is crumbling

As it crumbles it is creating unnecessary instability stress and hardship on communities In communities like

Mackay where income has dropped by 30ndash40 as many other small mining towns people and businesses have

been caught culturally and economically unprepared for this economic shift (Bleby 2013)

Windmill and wind farm

JOBS AFTER COAL A Just Transition for Queensland | 7

2 The drivers of change in the coal industry

Drivers of change The global energy market is in a period of dynamic long-term structural change that will have ongoing

repercussions for energy exporting countries such as Australia Over the last ten years the expansion in gas

the decrease in renewable energy prices the increasing of capital infrastructure costs the demand for cleaner

energy and energy efficiency have all dramatically changed the nature of the global energy economy (Ben

Caldecott 2014)

Coal has been the energy source that has made so many technological advancements through history possible

Although there has been many struggles and social costs along the way The communities workers and

companies that made this progress possible have substantially contributed to the creation of the modern world

Though if there is one thing we know from history it is that empires rise and fall The coal empire is crumbling

As it crumbles it is creating unnecessary instability stress and hardship on communities In communities like

Mackay where income has dropped by 30ndash40 as many other small mining towns people and businesses have

been caught culturally and economically unprepared for this economic shift (Bleby 2013)

It is clear that coal thermal coal especially is no longer good for humanity despite our former Prime Minister

Tony Abbottrsquos fervent belief that it is (Online 2014) WA Premier Colin Barnett heralded last year in his

declaration that coal is in lsquostructural declinersquo (Burrell 2014) He was not wrong In the past 5 years alone the

Dow Jones Total Coal Market index has fallen by 76 (Baker 2014)

The reality is that the world is rapidly shifting away from fossil fuels including countries that are key

importers of Australiarsquos coal and gas China India Japan and South Korea import over 80 of Australiarsquos

export market for coal and gas The reality is that these countries have recently either announced policies to

shift away from these fuels andor initiatives to drastically enhance renewable energy and energy efficiency

(ldquoPolitics of Climate Change in Asiardquo 2015)

The following section of the report analyses the risk of Australia not being prepared economically for changes

that are already taking place As a country and a state our governing political parties continue to pursue

a strategy that assumes our short and long term economic prosperity is dependent on mining Few of our

political leaders are attempting to communicate an economic vision free from the inevitable boom-bust cycles

created by extracting emissions-intensive resources It is also a strategy that assumes energy production and

distribution will continue on as a very centralised process rather than following the great trend of networked

and decentralised distribution that is shaping the 21st century (Riftkin 2015) This strategy is short-sighted

given recent announcements by China and India to phase out fossil fuels and move rapidly towards cleaner

and more distributed energy sources (Rohr 2014)

The international coal priceThe majority of Queenslandrsquos export coal mining industry is dependent on demand for steel making from

the worldrsquos coking or metallurgical coal market This is a market that has been severely impacted by a

combination of actions in China the biggest steel manufacturer in the world Primarily Chinarsquos housing

boom has been slowing down over recent years this in turn has massively reduced the need for steel Most

importantly China is also running a ldquowar on pollutionrdquo that is having direct short- and long-term impacts on

the viability of the coal industry as a whole This has resulted in a campaign of state enforced closures of coal

plants and steel mills especially near the countryrsquos big industrial coastal cities (Ng 2015)

Prices on the international coking coal stock market have plummeted from the all time high of US$330

tonne in late 2011 to a sobering low of US$109tonne in the first quarter of 2015 The outlook still remains

gloomy for the coal sector

With the continued slowdown in the global and Chinese economies the price of iron ore has also collapsed

Prices have dropped by one third in the first quarter of 2015 alone causing at least one Australian mine to

close operations and many others to cancel plans for expansions (Sandersen 2015) Iron ore is closely linked

to the sales of coking coal which is used most commonly to melt iron ore into steel

8 | JOBS AFTER COAL A Just Transition for Queensland

20

14

US

$t

0

100

200

300

400

2005 2007high quality high coking semi-soft coking

2009 2011 2013 2015

Figure 5 Coking Coal Prices 2005ndash2015 (worldcoalcom)

A similar price drop has hit thermal coal used in coal-fired power stations Thermal coal is mined in many

Surat Basin mines and is also found in some Bowen Basin mines where it is an addition to the high quality

coking coal found in the area Significantly the proposed mining development in the Galilee Basin is only

for thermal coal which at a time when coal-fired power stations are being replaced by cleaner options is

alarming (Pacific 2012) Thermal coal was priced at US$120tonne in late 2011 It had plunged to US$73

per tonne by February 2015 and has remained below US$60tonne since May 2015 Chinarsquos new rules of

cutting ash and sulphur content in seaborne coal imports along with increasing tariffs on coal imports has

meant that even Shenhua Chinarsquos biggest coal company cut coal imports in early 2015 (Jenda 2015)

Overall Chinese consumption dipped by 16 in 2014 despite their economic growth of 73

The decade of relentless and largely unplanned investment in Queensland coal mining in times of high prices

led to a massive oversupply against a background of decreasing demand The state and federal governments

failed to slow the industry down so that it did not overshoot an economically sustainable size This has made

the challenge of transitioning out of the industry even harder along with magnifying the pain now faced by

many mining towns (Neubauer 2015) All of this leaves a million-dollar question Is the downshift in [coal]

demand terminal According to Richard Gibbs from the Macquarie Bank it certainly is (Neubauer 2015)

The global coal market is also experiencing competition from renewables and shale gas slow growth and

government policies which are in part driven by the threat of climate change

The growing competition from renewable energy sources has been increasing its impact on the coal industry

by slowly but steadily eroding profits of domestic coal power stationsmdashand thus demand for coalmdashacross the

country (Hewson 2015) In Queensland the state government should be applauded for its 50 renewable

energy target by 2030 which will further add strain to struggling coal power generators (Parkinson 2015)

A more than 50 decline in coal prices has seen most listed coal companies globally to lose 80ndash90 of their

equity market value in the last four years (Buckley 2014) In 2014 the world added more energy generation

capacity from wind power than from coal Overall Europe and America have already cut coal-fired generation

JOBS AFTER COAL A Just Transition for Queensland | 9

capacity by over a fifth in a decade The sun will undoubtedly rise even further for renewable energy in 2015

but for coal there remains a lot further to fallrdquo said a report by the Institute for Energy Economics and

Financial Analysis in January 2015 (Buckley 2015a)

This statement is borne out by the facts

bull In 2014 new global wind installations grew 40 to 46GW led by China and America (Buckley

2015b)

bull In 2014 the US solar installation sector created almost 50 more jobs than the oil and gas pipeline

construction industry (Foundation 2015)

bull From 2000 to 2011 global annual growth in the yearly global installation rate of photovoltaic solar

panels was 40 In 2011 the total amount of global PV capacity installed was 27GW an astonishing

60 growth on 2010 levels (Green 2012)

bull Unsubsidised renewable energy is now cheaper than new coal-fired power in Australia (Paton 2013)

Solar installation

10 | JOBS AFTER COAL A Just Transition for Queensland

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

Coal power station

JOBS AFTER COAL A Just Transition for Queensland | 11

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

The outlook for coal pricesWhile some consider the outlook for coal prices as cyclical in nature and that a turnaround will increases

prices for coal other analysts believe this downward trend based on policies health impacts and concern

about global warming is here to stay

Financial reports from the major mining companies in Australia paint a grim outlook for global metallurgical

coal prices China was once the great hope for coking coal exporters but BHP Billitonrsquos metallurgical coal

market outlook (May 2013) indicated a flattening demand into the future (Billiton 2013 Rohr 2014)

BHP Billiton has warned that the increased usage of scrap metal in furnaces would result in lower growth in

demand for pig iron while greater production from electric arc furnacesmdashwhich use little or no coking coalmdash

are expected to ldquocontribute a significant share of total Chinese steel production by 2030rdquo Although coking

coal will likely remain necessary for steel production for some time as renewable energy sources grow the

efficiency and lower emissions intensity of electric arc furnaces will help them to outcompete coking coal in

the not too distant future Some experts even predict another technology called lsquodirect reduced ironrsquo that uses

gas to make steel could make coking coal redundant within a decade (Macleod 2013)

It is not just China BHP Billiton also cautions that the Indian steel outlook is less certain as steel production

growth has been slower than expected Prices for commodities from iron ore to coal are sinking as Chinarsquos

leadership tries to steer the economy away from debt-fueled property investment and smokestack industries

embracing services and domestic-led consumption At the same time President Xi Jinping is stepping up efforts

to combat pollution The provincial government of Beijing and a number of other major cities have made plans to

ban coal use by 2020 further putting the squeeze on all types of heavy industry (Coulter 2015)

However the outlook is not all dismal for coal everywhere In India demand is expected to continue to rise

without peaking until the 2030s Indiarsquos government predicts a 19 rise in coal imports this year which

may offer very short-term opportunities for Australian miners The opportunities are short term because these

import increases are something the Indian government has indicated it does not want continued into the

future Indiarsquos plan is to ramp up renewable energy technology as well as develop their untapped coal fields

to support a gradual phase out of thermal-coal imports within the next 2ndash3 years (Baker 2014) Regardless

the Indian mining giant Adani still hopes it can get coal from its proposed Carmichael mine in the Galilee

Basin and export it to India for the duration of its 60 year life span After a number of international banks

have ruled out funding for the Carmichael coal mine Adani has been looking for cash handouts from the

Australian Government to fund its shaky proposal However sanity has prevailed and these have been ruled

out by the new Prime Minister (Edis 2015) It is clear the Indian governmentrsquos plan for Indiarsquos future coal

supply sources does not involve Australian coal

12 | JOBS AFTER COAL A Just Transition for Queensland

This is the marketplace in which Australiarsquos exported coal competes and this is the marketplace that holds the

livelihoods of workers and communities in its hands The current state and future outlook of the coal industry

suggests that it would be risky not to scale down the thermal coal industry and at least restrict any new mine

expansions in the coking coal sector There are those who remain positive about the industryrsquos future but

recent events in the coal industry and uncertainty over medium and long term suggest that there are better

industries to back Behind these diverse risks threatening the coal industry is the inescapable scientific

fact that we cannot afford to burn any more coal from new coal mines if we want to decrease the risk of our

already fifty fifty chance of avoiding the worst impacts of global warming (IPCC 2013) If we wanted to try

and remove the total risk of runaway climate change we could not even afford to burn the coal that are sitting

in trucks on trains at port yards and in ships Not even the coal travelling on conveyors into power station

furnaces about to be burnt right this very moment

The carbon bubbleFrom the South Sea Bubble as well as the housing and dotcom bubbles of the last decade periodic over-

investment has been made into sectors deemed too important to fail The rush and hubris of investors seeking

incomparable profits to finance such industries has led to speculative bubbles of over-estimated value that

eventually burst In the economic fallout that results working people carry the burden while the speculators

and profiteers generally are not held accountable Another speculative bubble has formed and it dwarfs the

size of all of the bubbles that have come before it It is called the Carbon Bubble (Tracker 2015)

One of the few things world leaders agreed upon at the Copenhagen climate talks was that the Earth needs to

stay below 2degC warming to minimize the risk of runaway climate change

bull If we are to avoid going over 2degC we can emit only 565 more gigatonnes of carbon dioxide (IPCC 2007)

bull Burning the fossil fuel that corporations now have in their reserves would result in emitting 2795

gigatonnes of carbon dioxidemdashfive times the safe amount (Leaton 2013)

The Intergovernmental Panel on Climate Change has now produced its own carbon budget They have calculated

that if we continue pumping carbon into the atmosphere at todayrsquos rate this budget will be exhausted within

15ndash25 years (IPCC 2013) This means there will be growing political pressure on the fossil fuel industry to

keep most of its reserves in the ground That pressure has already begun around the world Citizens are pressing

their superannuation funds councils banks universities and other institutions to divest from fossil fuels with

growing success The year 2013 saw several major financial institutions recognise the financial and ethical

implications of continuing to finance fossil fuels with Norwegian Storebrand Rabobank and the World Bank

among those who made major announcements on divestment or cutting loans In 2014 major institutions

including Stanford University the Australian National University and Oxford University have divested their fossil

fuel funds (Advisors 2015) So far in 2015 local councils in Australia such as Moreland Newcastle Byron Bay

Melbourne and many more have also divested (Ryan 2015) Divestment is now going mainstream and will have

increasing impacts on fossil fuel company shares into the future

JOBS AFTER COAL A Just Transition for Queensland | 13

As a result of the momentum of the global divestment movement international stock exchanges are creating

new indexes to exclude fossil fuels in preparation of the impending seismic shift in global finances In late

April 2014 the worldrsquos largest fund manager Blackrock joined with the FTSE Group in London to create

a new index The ex-Fossil Fuels Index Series is an innovative set of benchmark indices that excludes

companies directly engaged in extracting so-called ldquostranded assetsrdquo in the hydrocarbons industry ldquoThis

is one of the fastest-moving debates I think Irsquove seen in my 30 years in marketsrdquo FTSE managing director

Kevin Bourne told the Financial Times (Clarke 2014) The Bank of England is now investigating its exposure

to risk from its fossil fuel investments To top that off the worldrsquos biggest sovereign wealth investment fund in

Norway has recently dumped coal investments (Carrington 2015) The largest contribution to climate change

from the fossil fuels in company inventories at present is from coal Because it has the largest climate impact

per unit of useful energy it is being targeted for early phase out

The book value of fossil fuel companies is determined not only by their current infrastructure and deposits

undergoing extraction but also by the size of their legally claimed reserves Because the book value of so

many companies has greatly exceeded their realisable value as emissions restrictions come into place a

speculative bubble has formed Unfortunately bubbles usually burst in the end leaving behind stranded

assets and stranded capitalmdashand leaving workers in the lurch The only alternative is a mature and planned

phase out of the industry that slowly devalues and deregisters fossil fuel reserves at a pace that does not lead

to financial crisis A planned phase out that gives time for just employment transitions for fossil fuel

communities

500

1000886

565

1500

2000

2500

3000

already burnt

remaining

2000ndash2050

2011ndash2050

Coal 2˚Global carbon

budget

Oil

Gas

GtC

O2

Global fossil fuel reserves

Figure 6 Carbontracker 2012 report The Carbon Bubble

14 | JOBS AFTER COAL A Just Transition for Queensland

In 2013 the report Unburnable Carbon highlighted that ldquoCompany valuation and credit ratings

methodologies do not typically inform investors about their exposure to these stranded assetsrdquo (Leaton

2013) This is very troubling when considering that the supporting share value of these reserves was $4

trillion in 2012 and that they serviced $127 trillion in outstanding corporate debt over the same period We

need to challenge these methodologies (Tracker 2015) In a move that signals a step towards the solutions

required the World Bank the European Investment Bank and the US Export-Import Bank have all announced

that they will not fund further coal-fired power plants except in exceptional circumstances As changes in

policy by the major coal consumers the uptake of renewables and the need to stay within the global carbon

budget begin to bite it is high-cost producers who will be squeezed first Australia is considered a high-cost

producer because of our strong industrial relations and wage laws which makes it all the more necessary that

our governments are vigilant and prepared for impending macroeconomic change (Cleary 2015)

SummaryThis is the environment in which the Australian coal industry finds itself Internationally coal is no longer

looking like a safe long-term investment within the context of the rapid changes afoot in the world The coal

industry leaders are either in denial about their industryrsquos future or are determined to squeeze as much profit

as possible until the cost gets worn by workers and their communities (Saunders 2015)

The issues of climate change demands for cleaner air and more efficient new technologies The realities of

the market are revealing coal as the sunset industry it really is This is not an industry Queenslanders can

rely on to create a stable resilient and sustainable economy It cannot be relied upon for future wealth

and future jobs We have been warned by the UN Climate Change Secretariatrsquos Executive Secretary that the

diversification and a managed transition away from coal is what we need to do and we need to heed this

warning (Australian 2015)

JOBS AFTER COAL A Just Transition for Queensland | 15

3 Assessing some of the economic opportunities in mining regions

IntroductionThe great state of Queensland is endowed with sustainable human and environmental resources that have the

potential if we choose to harness it to drive a balanced diverse and resilient economy for generations to

come Diversifying Queenslandrsquos economy to create sensible and stable prosperity beyond the boom and bust

vagaries of the mining industry must be a key objective of the Queensland Government The Newman LNP

Governmentrsquos Queensland Plan headline was lsquoforging diversity and prosperityrsquo (Government 2014) But

throughout Newmanrsquos reign as premier no action was taken Under the new Palaszczuk Labor Government

there has been some effort to support economic diversification across the state This is insufficient because as

of yet nothing has been done to adequately fund facilitate and empower the actual communities where

mining takes place The grassroots Labour Environmental Action Network an organisation within the

Australian Labour Party has called for change At the 2015 Queensland ALP State Conference they put

forward a motion that was passed calling on the state government to prepare a just transition policy before the

next conference (ALP 2015)

Grain harvest

16 | JOBS AFTER COAL A Just Transition for Queensland

Most importantly both major parties have continued their relentless support for further coal mine expansions

that inherently suffocate the process of diversification

With the coal industry forecast to be in a lsquostructural declinersquo by political leaders and bankers alike it is now

essential that the focus for economic development be on industries that can bring sustainable prosperity to

Queensland (Burrell 2014 Robins 2014) In the United Kingdom under Prime Minister Thatcher the world

witnessed the consequences of industries closing without planning and without investment to transition local

communities and industries

The following section of the report outlines how the opportunities for sustainable economic development

are already known Queensland has well-established sectors with bountiful potential in agriculture tourism

manufacturing and education It also has the opportunity to capitalise on a boom in renewable energy and

bio-industrial products to create more sustainable economic sectors These industries are ready to fill the

void that will be and is being left by coal however they lack the support needed to ensure their presence in

mining communities to provide a just transition away from coal where it is most needed

Agriculture and aquacultureCurrently the Queensland agricultural sector is worth near $147 billion and employs over 90000 people

(Queensland Government 2012) The sector has the potential to massively expand its food exports to Asia as

population and economic growth continue to surge in the dynamic economic region Through the competitive

advantage of our proximity to Asia and high-quality produce capabilities agricultural products have become

Queenslandrsquos second largest export earner and have the potential for continued growth (Heath 2014) By

increasing availability of farming technology driving productivity minimising costs and focusing on profitable

premium produce markets the Queensland Agricultural Strategy (2012) aims to double the total value of

production for all agricultural commodities by 2040 With innovative new farming approaches and ecosystem

system management strategies such increases in production are possible in a way which sustainably manages

and regenerates the land

To reduce pressure on fish stocks from home and abroad the promotion of aquaculture could be further

encouraged across the state This industry is worth $10 Million a year (Lucas DLGP 2011) At present

there are several sites located along the coast however research conducted over the last decade has

identified future sites for land based aquaculture Industry consultation aquaculture management training

programs and related issues in developing a workforce need to be considered (Plan 2012) The Queensland

Aquaculture Industry Federation sees the need for continued collaboration between government and other

stakeholders in order for this industry to reach itsrsquo potential as a strong core industry (Federation 2015)

The Department of Employment Economic Development and Innovation is leading the government drive to

JOBS AFTER COAL A Just Transition for Queensland | 17

develop the aquaculture industry This could see a future where aquaculture goes further than just meeting

domestic demand and grow to cater for high value export markets (Lucas DLGP 2011)

New opportunities in animal genetics aquaculture horticulture and bio-processing are driving agriculture

and aquaculture sector growth in new directions Both industries are about creating intergenerational

economic sustainability Choosing these industries that have unlimited potential to sustain our communities

and our ecosystems over mining is choosing long-term jobs over short-term jobs that cannot be passed on to

the next generation The bottom line is that we live in a hungry world and Queensland is well placed to be a

reliable and sustainable source of food to other nations without the agricultural potential we are endowed with

(Government 2014)

Tourism and recreational fishingDespite setbacks due to the high Australian dollar and loss of skilled workers to the mining boom the

tourism industry is still a critical part of the Queensland economy with massive future potential (Dr Tien Duc

Pham 2015) The tourism industry made a significant employment contribution providing 124000 jobs in

2010ndash11 with steady growth in international visitor nights (Deloitte Access Economics 2012) Queensland

has the potential to become a global leader in tourism and ecotourism and by doing so to create more

jobs and revenue (Government 2014) This will be possible similarly as in agriculture by promoting the

experiences available in our natural places and the quality hospitality we can provide to the growing Asian

middle class (Wilson 2013) The Chinese tourism market is seeking clean fresh and new experiences that

Queensland can cater to and is expected to be worth $74 billion by 2020 (Guterres 2014) Significant to

Queenslandrsquos potential in tourism is our ability to expand the tourism industry in the authentically Australian

rural and stunningly beautiful coastal mining communities where new economic activities are most needed

Further mining expansion in such places threatens to do to tourism what the growth in heavy industry did to

Gladstonersquos economic diversity where fishing and tourism are now non-existent

Although sustainably managed fisheries have the potential to provide continued economic prosperity to

Queensland there lies a major opportunity in net free fisheries to develop as tourism industries specifically

in coal mining regions A great recent example of this taking place is the newly established Net Free Zone

between from the Northern end of St Helens beach to Cape Hillsborough (Spelitis 2015) Along with three

other net free zones across the state the extent of the cumulative commercial opportunities for sustainable

tourism the net free zones have created has made it one of the three pillars as part of the 2020 vision for the

Queensland has the opportunity to develop an abundant and resilient agricultural industry that supports the transition to sustainable prosperity

18 | JOBS AFTER COAL A Just Transition for Queensland

Queensland Tourism Industry Council (Council 2015) The Mackay Isaac and Whitsunday (MIW) coal mining

region has excellent accessibility to a variety of fishing pursuits In addition to the new net free zone ther are

five fresh water stocked impoundment fisheries creating opportunities to promote lake beach offshore and

deepwater angling Improvement of accommodation facilities quality of jetties access roads and coordinating

fish trails with regional events could maximise visitation from recreational and tourism markets (Mackay

Tourism Tourism Queensland 2012) Charter fishing operatiors tackle stores campsites motels boat sales

boat building and maintenance all have the opportunity of benefitted from growth from the recreational fishing

tourism industry (Lucas DLGP 2012)

Higher educationOver the past decade millions of international students have visited Queensland for our quality tertiary

institutions and enjoyable lifestyle International education is Queenslandrsquos biggest service export with

nearly $2431 million being generated in 2013ndash14 alone (Australian Government 2014) The majority

of Queensland is strategically located in the latitudinal tropical zone where at a global level more than

50 of the worldrsquos population is forecasted to live by 2050 (Australian Government 2015) This makes

Queenslandrsquos universities well placed to develop the partnerships and research innovations tailored to the

challenges and opportunities of the new tropically-oriented world This will help Queensland and especially

North Queensland to attract increasing levels of international students to be part of our high-quality tropical

research institutions These students will increase spending through tourism support the creation of our own

skilled and globally connected workforce and connect Australia to business networks and opportunities across

the world In 2013ndash14 the Cairns region benefitted to the tune of $1375 million from international students

(McGuiggan 2014) With the right policies these benefits already being experienced primarily in Cairns

Townsville and Brisbane can be spread further across Queensland to make international education a strong

economic driver in transitioning mining communities

Bio-industrial productsAs the world moves away from fossil fuels the demand for cleaner more sustainable fuel sources will grow

(Emissions 2014) By using excess organic matter produced through food production to develop bio-industrial

products Queensland has the potential to export clean and sustainable fuels and bio-plastic materials to the

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Tourism is about experiences not extraction It has the potential to share Queensland beauty with the rest of the world and create sustainable local economies in the process

Queenslandrsquos greatest resource is the minds of its people We can share and co-create our innovations and learning with students from all over the world who want to make Queensland the launch pad for their careers

JOBS AFTER COAL A Just Transition for Queensland | 19

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Sorghum fields

20 | JOBS AFTER COAL A Just Transition for Queensland

Queensland is well placed to develop biofuel products from waste and oil crops such as Pongamia and algae

in addition to using the statersquos advanced sugarcane industry to convert excess cane using efficient cellulosic

processes Recent scientific developments in bio-plastics at the University of Queensland show that as a

state Queensland has the skills and ability to build a bio-industrial products industry that can contribute to a

sustainable economic future (Queensland 2015)

Renewable energyQueensland the sunshine state has enormous potential to generate electricity from the sun wind and waves

in addition to many other abundant renewable energy sources (Green 2012) Renewable energy has for a long

time been the catch cry from environmentalists as the complete solution to creating the jobs necessary to

replace the fossil fuel industry This report has been written partially to show recognition that as much as

renewable energy has the potential to create more jobs and replace fossil fuel domestic energy production it

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Gemasolar solar thermal power station Spain

JOBS AFTER COAL A Just Transition for Queensland | 21

cannot completely replace all of the coal

export industry jobs Numerous studies

show that with strong climate policies

over 7100 jobs can be created in

Queensland through renewable energy

by 2030 (Institute 2011) Thousands of

these jobs will be in regional

Queensland These should be prioritised

for regions where the mining industry

has developed rural communities in

need of new economic opportunities Far

North Queensland is especially suited to

further renewable energy investment

because of its climatic conditions and

because of the expensive transmissions

losses from having energy wired from

southern power sources (Allen 2011)

This makes it essential that government

policy ensures that the fair share of the

$35 billion in potential renewable

energy investment goes to rural mining

communities not only where it is most

needed economically but where it

makes the most business sense

(Department of Employment 2009)

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Queensland has the potential to become a smart sunshine state powered by clean and sustainable renewable energy By doing this we will be creating jobs in rural mining communities where they are needed most and building a foundation for a new sustainable economy

22 | JOBS AFTER COAL A Just Transition for Queensland

4 Community transitions Global case studies

There are communities around the worldwhich have reinvented themselves after the end of coal mining and

developed prosperous economies in doing so It has been a struggle but where there is a level of government

support inspired local leadership and the community is working together to regenerate its economy it has

been possible (Coal 2015) We are not suggesting any of these examples can be directly transferred to

Queensland communities facing the end of coal mining The object of these case studies is not to provide a

blueprint for Mackay Gladstone Rockhampton or mining towns in Central Queensland but to show the

diversity of ideas that have worked in other places that might stimulate our local communities to reinvent

themselves too

Hazelwood coal power station La Trobe Valley Vic

JOBS AFTER COAL A Just Transition for Queensland | 23

La Trobe ValleyIn the brown coal producing region of the La Trobe Valley in Victoria a grassroots transitionary force has been

underway for the past fifteen years Earthworker was set up by union and climate change activists seeking a

real alternative to coal and privately owned business models Earthworker Cooperativersquos mission is to create

jobs that respond to the lsquochallenges of climate change and the need for local job creation by facilitating the

establishment of worker-owned cooperatives hellip in sustainability-focused industriesrsquo (Earthworker 2015)

Their current focus is the establishment of a cooperative producing solar hot water systems in partnership

with an existing business called lsquoEverlast Hydro Systemsrsquo Their goal is to take production to Morwell in the

La Trobe Valley where workers are in need of an alternative to the coal industry The unique cooperative model

has made selling arrangement possible through inserting the option to buy a solar hot water system through

enterprise bargaining agreements

BanwenThe DOVE workshop in Banwen South Wales (Dove 2015) was started by agroup of women who during

the 1984ndash85 coal minersrsquo strike decided that community-based education was the most practical path to

regenerate the local economy Setting up shop in an abandoned mine office they developed a series of adult

education workshops for women Three decades later the DOVE building hosts a diverse set of small-scale

entrepreneurs including a daycare a library a community garden and a cafeacute featuring local foods

OrkneyOrkney like Central Queensland is a relatively isolated place with a scattered population Situated at the

top of Scotland two hours from the mainland by ferry Orcadians like Central Queenslanders often feel

like spectators to what goes on in the rest of their country They also feel vulnerable to central government

decisions and are often irritated by the lack of understanding of island life on the part of distant authoritiesmdash

its particular customs dialect and ways of doing things Since Norse times Orkney islanders burned peat (a

very young form of coal) as their primary fuel source but all the peat has been dug up This traditional way

of life where each farming family had its own peat bank and spent long summer days cutting and drying

peats while sharing picnics as children played is gone Another non-renewable energy source North Sea oil

discovered in the 1970s brought positive and negatives for the island It turned the tide of depopulation but

like the peat banks the oil is depleting and another lsquoend of an erarsquo is approaching Orcadians have woken up

to the fact that they canrsquot continue to hark back to the past and are confronting the issues of a future without

fossil fuels

Over the last three decades European community funding has helped Orkney to equip itself for the green

energy revolution Orkney now plays a global role in the evolution of wave and tidal technologies and

significant research and development work is creating new employment opportunities A high school in

Stromness was converted into the European Marine Energy Centre and is now a world leader providing

developers the opportunity to test full-scale prototypes in the sea The worldrsquos largest single-rotor tidal turbine

24 | JOBS AFTER COAL A Just Transition for Queensland

was the first in Scotland to be connected to the national grid from this centre Marine energy combined with

an expansion of wind turbines means that the island is now self-sufficient in electricity These renewable

energy developments have created jobs in the Orkneys in civil works and erection grid connection and

communications (Stuart 2011)

Investment in renewable energy and its associated RampD has attracted people to live work and study on the

island Islanders used to have to leave to get tertiary education but it is now possible to study for an MSc in

renewable energy at a Heriot Watt University campus in Stromness A new generation of Orcadians have grown

up to see renewable energy as the way of the future something quite ldquonormalrdquo which will provide greater

opportunities for their children to stay on the island with genuine prospects for employment in meaningful

jobs requiring a wide range of skills and qualifications This shows what a community in transition to a low

carbon future can look like

Nord-Pas De CalaisUntil 1986 the north-east region of France Nord-pas de Calais was a major coal mining area It still boasts

huge twin tailings mountains the largest in Europe which have become a tourist attraction It is known

to Australians for the war cemeteries associated with the battle of the Somme in WW1 but it has recently

undergone a remarkable transformation towards a truly sustainable economy Old coal mines at Lens have

been transformed into an art gallery displaying works from the Louvre collection in Paris Hundreds of people

are trained in energy efficiency solar energy and green architecture at a new training centre in nearby Loos-

en-Gohelle

The Chamber of Commerce invited economist and social visionary Jeremy Rifkin of the TIR Consulting

Group and his chief economist Skip Laitner to apply their model of the third industrial revolution to the

district (Riftkin 2015) Rifkinrsquos Third Industrial Revolution combines renewable energy energy efficiency

and the connectivity of the internet Buildings are energy generators and hydrogen is used as energy storage

After working with the community for some time the Master Plan was published in 2013 and envisages

that 100000 new jobs can be created by the transition plan (LLC 2013) Certainly the population has not

declined since mining days and has even slightly increased Inspired local leadership was the key in this

community plus some outside funding to help with the underpinning research

Appalachia (Kentucky)The transition process is just starting here but the community is very organised Kentuckians For The

Commonwealth has been battling the negative effects of coal mining for some decades and is now planning a

transition to ldquobuilding a better future beyond coalrdquo (Commonwealth 2015) Last year they held a conference

in Harlan Kentucky right in the middle of the Appalachian coal fields and invited guests from other US

regions in the same position as well as from Wales It is too soon to see what the outcome of their learning

process will be but they are another example of a community taking its future into its own handsmdashoptimistic

that there is a better future after coal

JOBS AFTER COAL A Just Transition for Queensland | 25

5 A just transition for coal mining communities policy recommendations

The opportunities to transition from unsustainable coal mining to prosperous communities with decent

employment will not just materialise by themselves It will need the political will and the right incentives to

ensure that communities are not left fending for themselves with unemployment increasing and families

in need of long-term welfare But not only is the political will not currently there both major political

parties continue to support the expansion of this sunset industry and by doing so are making the transition

challenges progressively more difficult (Denniss 2012) For too many years governments have uncritically

supported the coal mining sector Entire government departments have been focused on facilitating mining

with tax incentives weakening assessment and approval processes along with providing through tax payer

money established industrial infrastructure to support new projects Government policy often seeks to grow

royalties income by supporting the extraction of as much coal as possible as an escape the challenge of

finding other ways to increase state revenue New sustainable industries in coal communities will need just as

much if not more support while it gets started

We propose that communities local businesses workers unions community groups environment groups

local government and state and federal governments all need to be involved in planning a transition to

alternative forms of economic development and providing new jobs We call this a Just Transition (Anthea

Bill amp Evans1 2008 Brecher 2012) Just Transition is a framework for a fair and sustainable shift to a low

carbon economy proposed by trade unions and supported by environmental NGOs A Just Transition holds

that a shift to a lower carbon economy is vital to avoid dangerous climate change

Bimblebox Nature Refuge

26 | JOBS AFTER COAL A Just Transition for Queensland

Tough targets to cut greenhouse pollution supported by new environmental regulations and emerging carbon

markets will transform the global economy over the next decade These shifts will have major implications

for working people in energy supply industry and transport and for everyone as consumers There is a concern

that significant periods of economic restructuring in the past have often happened in a chaotic fashion

leaving ordinary workers along with their families and communities to bear the brunt of the transition to

new ways of producing wealth A just transition seeks to prevent such injustice becoming a feature of this

transition suggesting that it would not only be morally wrong and socially damaging but would undermine the

credibility of the transition itself and could slow or even halt the changes that must be made

It is through the challenges of communicating the urgency of climate change and other social and

environmental impacts that much of the debate about coal and its consequences for land water and the

climate has become unnecessarily adversarial and polarised Coal mining and power generation communities

deserve acknowledgement and appreciation for all that they have historically and currently contributed to

our country and our economy In communicating the economic shifts that are taking place and facilitating

the necessary transitions the Australian community needs to be respectful of the history and identity of coal

communities Environment groups government unions and the community need to initiate and engage in

the discussions about transitions in an open honest and compassionate manner Only by approaching the

transition in this way can the adversarial nature of the debate be broken down to make way for transformative

mutually respectful and holistic solutions

Whitsundays lsquoHave a Heart for the Reefrsquo

JOBS AFTER COAL A Just Transition for Queensland | 27

A just transition recognises that support for policies are conditional on a fair distribution of the costs and

benefits of those policies across the economy A just transition should also recognise that the creation of

opportunities for active engagement by those affected in determining the future wellbeing of themselves

and their families is essential for the long term empowerment of citizens and communities The following

recommendations have been written with the aim of emphasising such community empowerment as a priority

Recommendations

1) Establishing a unit within the State Government to support coal mining regions to transition to new economies

Specific institutions are needed to develop transition plans They need to have strong government support

and funding regional offices and representation from diverse stakeholders A dedicated unit within the

Department of Infrastructure Local Government and Planning could be established to oversee this work

They could work on the ground in the main coal mining communities to bring government expertise into

regional entities that would develop local plans that involve and empower the whole community This unit

or a connected unit would analyse existing barriers to the creation of competitive advantages for alternative

sustainable industries and would identify actions the State Government can take to support such creation

Any policy and support should come with clear conditions and timeframes These regional entities would

need generous budgets to assist local groups to develop their transition strategies to support research re-

training and the development of new business and community start-up initiatives based on the needs and

strategies of communities The key to communities becoming economically resilient is high levels of autonomy

and freedom in shaping their economic futures Research funding available to the regional entities will be

essential to the empowerment of local leadership Research funding should at least reach the OECD research

funding average and it should prioritise low carbon technologies and industry sectors with increased triple

bottom line sustainability potential

2) Support community leadership in diversifying local economies through the establishment of democratic regional entities

In each mining community a group of traditional and non-traditional community leaders willing to think

beyond lsquoBusiness as Usualrsquo to imagine a better future could be called together to work in collaboration with

and be resourced by the state government managed regional entities mentioned in recommendation one

The leaders would come from diverse backgrounds such as from local governments business associations

unions farming groups renewable energy businesses and educational institutions The objectives of these

leadership groups would be tailored to each community The objectives would in broad terms be to increase

employment in new diverse industries based on sustainable production and publicservice sector job creation

Expert facilitation alongside inclusive and democratic community engagement initiatives would be essential

to ensure the process and environment for creativity and innovation is maximised To develop such groups

it would be necessary to take stock of the existing resources skills and successful businesses on which a

new future can be built In addition an analysis of the social environmental and economic needs of the

28 | JOBS AFTER COAL A Just Transition for Queensland

community would also be beneficial These groups could then establish economic diversification projects

including value-added local production worker controlled co-operative enterprises and new community-

based enterprises that economically empower the local community Activities may also include support for

alternative industries in regard to process restructuring or subsidising the wages of workers displaced from

higher paying traditional industries

3) Support researching and communicating how the just transition can take place

Consistent research is needed on the best options to support the state and national economies to transition

This requires ongoing situational analysis of the global energy market shifts at both government levels In

addition each mining region will need assistance to research the number of jobs that are dependent on coal

the skills of those employed the level of local national and global long- and short-term risk to local mining

operations the transferability of jobs to other industries local opportunities for new enterprises and their

needs and the local educational and training needs and resources A key issue requiring research will be

around how the transitition scenarios differ depending on the level and relativity of thermal and coking coal

industries across coal mining communities The process for sourcing this information at a local and state

government level should be integrated into a policy feedback loop to support cyclical situational analysis and

policy adjustments from all levels of government This research should take place at the state level and be

encouraged at the industry and local level through grants

Mackay Central Queensland

JOBS AFTER COAL A Just Transition for Queensland | 29

4) Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

Many existing Queensland industries including those not highlighted in this report have the potential to

carry Queensland towards a new sustainable economy [sC5]mdashbut they will need support to do so Instead

of continuing to support and lower costs for the coal mining industry we need a plan to grow competitive

advantage across industries that have potential for sustainability and growth in regional mining communities

Along with industry and community organisations the State Government could organise a State Economic

Summit to assess existing industry clusters identify the potential of new and emerging industries consider

their competitiveness and key capabilities and identify barriers to increasing competitive advantage The

findings and recommendations from this Summit could be used to inform the work of the Unit established in

bullet point one above and the research outlined in bullet point two

5) Provide social protection of workers their families and incomes

If mines close suddenly workers need protection for their incomes and social services and possible relocation

even though many miners these days do not live in the communities where they mine Ideally these transition

plans would be developed early enough to ensure that new employment opportunities are in place for them

before mines actually close For many workers this is already too late but if the process begins now there will

be choices available for future retrenched coal workers who live in mining communities and regions Mining

companies could be incentivised andor penalised to give adequate notice to workers and other stakeholders

that closure may be impending and alternative economic opportunities need to be developed

6) Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

Involving the relevant unions in the planning of community transitions can enable them to move towards

becoming more proactive agents helping to plan the transition with critical networks and specific knowledge

about the needs of their members When a coal-fired power station in Washington State USA was scheduled

for closure for environmental reasons unions played a pivotal role persuading environmentalists and others

to delay the closure long enough for a Just Transition to provide different jobs for the workers This made it

possible for the coal resource to be replaced by wind and other renewable generation rather than natural

gasmdasha better environmental outcome and the unions became an active part in the phase out planning

Unions have a heavy workload defending workers rights and pay They need to be supported and financed to

play important roles in community transitions From facilitation and leadership of planning bodies career

planning and advice preferential hiring for displaced workers in the new alternative emerging industries and

leading the establishment of work controlled cooperatives unions have an essential role to play

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

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After Coal (2015) Community Regeneration West Virginia United States httpaftercoalcomengage-your-community Retrieved 10th of November 2015

Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

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Australian Bureau of Statistics (2014) Australian National Accounts State Accounts 2012ndash13 Canberra Australia Retrieved 10th of November 2015

Australian Bureau of Statistics (2015) MackaymdashCensus Employment by IndustrymdashTime Series Australian Government Department of Employment Retrieved 10th of November 2015

Australian Government Department for Education and Training (2015) Draft National Strategy for International Education Canberra Australian Capital Territory Retrieved 10th of November 2015

Australian Government (2014) Export income to Australia from international education activity in 2013ndash14 Canberra Australia Retrieved 10th of November 2015

BHP Billiton (2013) Coal Briefing httpwwwbhpbillitoncom~mediabhpdocumentsinvestorsreports2013130529_coalbriefingpdf Retrieved 10th of November 2015

Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

Beyond Zero Emissions (2012) Laggard to Leader How Australia Can Lead the World to Zero Carbon Prosperity Melbourne University Melbourne Victoria Retrieved 10th of November 2015

Beyond Zero Emissions (2014) A Fossil Economy in a Changing World Melbourne University Melbourne Victoria httpmediabzeorgaufossileconomyFossilEconomypdf Retrieved 10th of November 2015

Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

One Million Climate Job Campaign (2015) About London United Kingdom httpclimatejobsorgzaabout Retrieved 10th of November 2015

Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 3: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

JOBS AFTER COAL A Just Transition for Queensland | i

Contents

Foreword iii

Executive summary iv

Key recommendations for the State Government of Queensland vi

1 Coalrsquos current role in the Queensland economy 1Coal in the Queensland economy 1

Revenue and economic activity generated by the coal Industry 4

Coal industry jobs and their locations 4

Summary 5

2 The drivers of change in the coal industry 6Drivers of change 6

The international coal price 7

International mining companies 10

The outlook for coal prices 11

The carbon bubble 12

Summary 14

3 Assessing some of the economic opportunities in mining regions 15Introduction 15

Agriculture and aquaculture 16

Tourism and recreational fishing 17

Higher education 18

Bio-industrial products 18

Renewable energy 20

4 Community transitions Global case studies 22La Trobe Valley 23

Banwen 23

Orkney 23

Nord-Pas De Calais 24

Appalachia (Kentucky) 24

5 A just transition for coal mining communities policy recommendations 25Recommendations 27

Conclusion 32

References 33

ii | JOBS AFTER COAL A Just Transition for Queensland

Bowen Basin coal mine and surrounding area

JOBS AFTER COAL A Just Transition for Queensland | iii

Foreword

The coal industryrsquos impact on the state of Queensland has had its

peak and is now in decline This makes right now the most important

time to be thinking about not just stopping the industryrsquos destruction

of prime agricultural land but also how we build the alternatives for

regions where coal has become so economically dominant

There are so many opportunities for Queensland to move forward

We have a growing population diverse people and cultures abundant

natural resources that have the potential to be used sustainably and

we are so close to the new epicentre of change in the world in Asia

One finds it hard to imagine how the many social and economic opportunities our state has available

to us can be ignored how some leaders can still be so fixed in their intent to indefinitely expand the

coal mining industry when it is so clear the people of Queensland the people of Australia and the world

wants to move forward

This report is about the people of Queensland taking the initiative to communicate a positive new vision

of what our future economy and the journey to arrive there can look like It is the beginning of a new

chapter in the conversation about coal that has been getting closer and closer to being opened as more

people realise the devastating impacts the industry is having

Most of all this report is about justice not just for the planet but for workers and citizens who have done

nothing wrong to work in the coal industry It is about justice for workers who have been supporting our

economy supporting our towns our clubs and being part of our community Finally it is about justice for

the families in mining communities who deserve the support to help them plan their future beyond coal

It is the government and it is the mining corporations that have allowed these communities to be placed

in an increasingly risky situation However it is the responsibility of all of us to help them out of it and it

is now time to take that responsibility

Drew Hutton

President of the Lock the Gate Alliance

iv | JOBS AFTER COAL A Just Transition for Queensland

Executive summary

This report is calling for a Just Transition for coal communities in Queensland The term is not well known in

common Australian political rhetoric The lsquoJust Transitionrsquo term in this report is defined as a transition that

supports environmental policies with a fair distribution of the costs and benefits across the economy and

that support the creation of opportunities for active engagement by those affected to determine the future

wellbeing of themselves and their families

There is substantial international literature on the concept of a Just Transition Reports by and for Australian

Canadian and South African unions are just a sample of the literature diversity Many organisations by way

of example the Organisation for Economic Development and Cooperation the United Nations Environment

Program the International Labour Organisation the United Nations Framework Convention on Climate Change

and the World Wildlife Fund have produced literature on the matter

All over the world where communities have been largely dependent on a single unsustainable industry they have

throughout history been forced to transition Sometimes this is sudden unplanned and involves considerable pain

Most of which is felt by people working in those industries This unfortunately has been the experience so far in

Central Queensland with numerous mining companies cutting costs and forcing redundancies that have caused

families to leave the region The volatility of the Queensland coal industry has not been managed well by our either

colluding or timid state governments depending on which party is in power

Around the world there are stories we can look towards to find inspiration Some communities have reinvented

themselves creating new industries and jobs minimising the impacts on local people and establishing stronger

local economies We discuss some case studies in the report of communities which have achieved some

impressive results Inspiration can be found in the UK and South African movements to create One Million

Climate Jobs (Jobs 2015) Trade Unions have united with environmental organisations academics and other

civil society groups to write a blueprint for the creation and financing of 1 million low carbon long-term jobs in

each country Some of these initiatives include jobs in public transport in energy and in housing and jobs to

localise and secure food supply and protect water resources (Change 2010)

The market is telling us that coal is an energy source in decline Renewable energy investment is skyrocketing

air pollution controls are being stepped up around the globe and countries are preparing for much stronger

action on climate change As a major carbon exporting country Australia is in serious economic risk of being

caught in the midst of a rapidly hastening global energy transition Australia must develop energy and climate

strategies that are more in tune with international developments and capture the economic opportunities to

transition away from fossil fuels and towards renewable energy To do this we need strong leadership from

the business sector our communities and because of the speed and resources that will be required in this

transition our governments

JOBS AFTER COAL A Just Transition for Queensland | v

The Queensland government is under pressure from mining corporations and other stakeholders to keep the

coal industry going strong Faced with the challenge of creating an economic vision beyond coal our political

leaders have chosen for too long to capitulate to this pressure The coal industry is in denial about its terminal

decline The question community members are left to ponder is if the industry knew its days were counted

would it still try and squeeze as much support out of the government as possible To try to make as many

subsidised profits as it can before throwing in the towel We canrsquot wait and risk the livelihoods of citizens

in coal communities to find out The alternative for the people of Queensland and the Government is to

admit that the decline is terminal and stop delaying the re-orientation of policy and the economy to support

sustainable industries

Challenges faced by the different mining industry towns are quite different from one another As such the

planning of a just transition requires a diverse and adaptative strategic approach For example the challenges

the mining industry towns of Mackay and Rockhampton are facing are substantially different than the ones

the specifically mining operation towns of Moranbah and Blackwater are facing Different regions with

different levels of economic dependency on coal will require unique transitionary solutions and strategies

These different approaches needed are best understood by and will require leadership from the local

community to have the best chances of success

The economic and geographical difference between thermal and coking coal operations is another significant

complexity Often both coal types will be referred to as one homogenous industry by the media and politicians

This misguided referencing makes having a discussion about the different futures for each industry

difficult Coking coal has a substantially different outlook to thermal coal and needs to be discussed and

considered separately Policy supporting a just transition needs to carefully consider their uniqueness and the

implications this has for planning support resources and initiatives in different coal regions where each type

of coal has a different level of operational and economic intensity

The political conversation about a Just Transition has only just started to emerge Rumblings and whispers

of the actions and policies necessary within the environment and labour movements have been building

momentum Policies are being discussed and cooperatives are being launched throughout Australiarsquos coal

communities Significantly this issue is building important relationships between environment groups and

labour unions that have complimentary objectives within the Just Transition framework Their collaborations

are building a stronger and more cooperative civil society and strengthening the fabric of our democracy It is

hoped that this report will help contribute to this momentum so that some tangible and clear actions are seen

in the very near future

vi | JOBS AFTER COAL A Just Transition for Queensland

Key recommendations for the State Government of Queensland

1 Establishing a unit within the State Government to support coal mining regions to transition to new economies

The unit would

bull Work on the ground in coal mining communities to bring government expertise into regional entities

bull Analyse barriers to the creation of competitive advantages for alternative sustainable industries

bull Identify actions the State Government can take to support sustainable industries

bull Provide research funding to that prioritises low carbon technologies and industry sectors with increased triple bottom line sustainability potential

2 Support community leadership in diversifying local economies through the establishment of democratic regional entities that

bull Lead in the development of their communitiesrsquo transition strategies

bull Researching the transition opportunities and pathways for the community

bull Planning and initiating re-training programs for workers from affected industries

bull Facilitate support programs for new businesses cooperatives and social enterprises based on the needs and strategies of communities

bull To take stock of the existing resources skills and successful businesses on which a new future can be built

bull Run an analysis of the social environmental and economic needs of the community

bull Establish economic diversification projects including value-added local production worker controlled co-operative enterprises and new community-based enterprises

bull Work in collaboration with regional councils and economic development organisations

3 Support researching and communicating how the just transition can take place

bull Providing regular academic standard situational analysis of the global energy markets shifts to keep the public informed about energy market trajectories

bull Support regional entities to research the number of jobs that are dependent on coal the skills of those employed the level of local national and global long- and short-term risk to local mining operations the transferability of jobs to other industries local opportunities for new enterprises and their needs and the local educational and training needs and resources

bull Researching how the transition scenarios could differ depending on the level and relativity of thermal and coking coal industries across coal mining communities

JOBS AFTER COAL A Just Transition for Queensland | vii

4 Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

bull Develop a plan to grow competitive advantage across industries that have potential for sustainability and growth in regional mining communities

bull Organise a State Economic Summit to assess existing industry clusters identify the potential of new and emerging industries consider their competitiveness and key capabilities and identify barriers to increasing competitive advantage

5 Provide social protection of workers their families and incomes

bull Create individual mine employment transition plans in cooperation with mining companies and local communities ready for when mines cease operating

bull Penalising mining companies that do not give adequate notice of their closure or restructuring

bull Subsidising workers at a full living income level for a maximum of four years who do not have adequate employment available to them at the time of redundancy to undertake training for careers that support the establishment of the new economy in their community

6 Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

bull Support and finance Unions to play facilitating roles in community transitions

bull Engage Unions to

- Provide career planning and advice

- Negotiate preferential hiring for displaced workers in the new alternative emerging industries

- Lead the establishment of work controlled cooperatives

7 Provide training opportunities for coal workers and communities

bull Mandating coal mining companies to fund education and training for their workers that give them skills for other industries

bull Funding training programs to assist retrenched workers from the coal industry to attain continued retraining and re-education

viii | JOBS AFTER COAL A Just Transition for Queensland

8 Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

bull Bringing mine site rehabilitation standards in Queensland to global best practice

bull Mandate that mine sales are not made to companies without adequate capital to properly rehabilitate the mine site

bull Increasing mining security deposits to ensure that the full cost of third party mine site rehabilitation is progressively implemented and signed off by governments throughout the life of the mine

bull Ban the sale of mines where rehabilitation responsibilities are not complete or behind schedule

bull Support the nationally coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions described above and more detailed policy changes

9 Remove all subsidies and tax payer funded support to coal mining

bull Review and remove all hidden subsidies to the coal industry within the state government

10 Sound investment and resource revenue management

bull Commission an economic assessment of the possible economic mechanisms and changes to existing policies that could fund the above measures to the extent that will be necessary

bull Set aside a percentage of coal royalties for funding the diversification of coal mining regions

JOBS AFTER COAL A Just Transition for Queensland | 1

1 Coalrsquos current role in the Queensland economy

Coal in the Queensland economyOver the last 30 years the Queensland coal industry has grown substantially to become a significant part of

the Queensland economy and create employment in many regional areas The industry has been concentrated

in the Bowen and Surat Basins throughout rural western and central Queensland The boom for the industry

began in 2005ndash2006 when prices for coal rose by around 400 causing massive industry profits in the

2000s (Stanford 2014) Prices have fallen dramatically since the flow on effects of the global financial crisis

(GFC) slowed down Chinarsquos growth in 2011ndash2012 However prices have remained much higher than the

below US$40tonne that was averaged through the 90s and earlier (Quandlcom 2015)

Queensland coal train

2 | JOBS AFTER COAL A Just Transition for Queensland

Over the last five years since the GFC and later slow down in coal demand the total Queensland coal

production has after decades of growth levelled off at just over 200 million tonnes per annum (Figure 1)

0

50

100

150

200

250

2008ndash09 2009ndash10 2010ndash11 2011ndash12 2012ndash13

Mill

ion

tonn

es

Figure 1 Queensland Coal Production 2008ndash09 to 2012ndash13 Source Queensland Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13

Queensland uses 20 to 25 million tonnes of its mined coal for electricity generation each year (Government

2014) But the rest which is 85 to 90 of the mined coal is exported to countries all over the world and

mainly to Asia In 2013ndash14 33 of the production was thermal coal and 67 was for coking coal production

to make steel (Table 1) Both thermal and coking coal create greenhouse gas emissions when they are burnt

However contrary to government and media perceptions the coal industry is not the sole driving force

behind the Queensland economy As in most modern economies the service industry dominates with 60

of economic output followed by the construction industry with 10 manufacturing at 7 and agriculture

forestry and fishing at 3 (ABS 2014)

An overview of the Queensland coal industry would not be complete without an examination of its level of

foreign ownership By volume 80 of Queenslandrsquos coal production is foreign owned (Government 2013)

This means that a majority of the profits from the operations of these companies are being directed out of

Australia to international shareholders

JOBS AFTER COAL A Just Transition for Queensland | 3

Table 1 Queensland Coal Mining Areas Production and Types 2009ndash10 to 2013ndash14

2009ndash2010 2010ndash2011 2011ndash2012 2012ndash2013 2013ndash2014

Mines operating 56 57 58 59 59

Saleable production Open-cut

Northern 76 450 64 167 62 632 71 268 78 953

Central 63 319 52 637 56 032 63 871 73 801

Southern 39 339 37 423 45 010 43 709 43 651

Total (mt) 179 108 154 227 163 674 178 848 196 405

Underground

Northern 7 642 8 965 9 492 13 266 11 470

Central 18 968 16 642 15 082 14 511 18 433

Total (mt) 26 611 25 606 24 574 27 776 29 903

Coking coal total 125 178 108 731 117 000 131 328 151 571

Thermal coal total 80 540 71 103 71 247 75 296 74 737

State total 205 719 179 834 188 247 206 624 226 309

Source Queensland Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13

Abbot Point

4 | JOBS AFTER COAL A Just Transition for Queensland

Revenue and economic activity generated by the coal Industry

As a nation the coal industry is Australiarsquos second

largest export earner after the iron ore industry Last

year it generated $40 billion which equal to about

12 of export revenue (Cleary 2015) The coal

industry in Queensland will pay around $2 billion

which amounts to 80 of total mining royalties

to the state Government in 2014ndash15 (Campbell

2014) Coal royalties represent around 4 of

Queensland Government revenue (Vorrath 2014)

Similar amounts come from vehicle registrations

and interests on funds saved for superannuation

in addition to long service leave entitlements as

shown in Figure 2 Such figures are not large in the

financial context of running a state government

Despite this the taxation contribution of coal is

incorrectly perceived as significant

The large revenues derived from coal exports

is due to the massive volumes the industry has

reached in recent years Total revenue to the coal

industry from its mining operations amounts to

approximately $25 billion per year that is added

to the economy This is a significant contribution

to Queenslandrsquos economy but one that needs

to be viewed relative to the size of the economy

Queenslandrsquos economy produced output worth

$290 billion in 2012ndash13 meaning the coal

sector accounted for around 7 of production

by value as shown in Figure 3 (right)

Commonwealth grants

Other staterevenue

MV registration

3

4840

54Interest

Coal royalties

Figure 2 Queensland State Government Revenue SourcesSource Queensland Treasury (2014) Queensland State Budget 2014ndash15 Paper 2

Non-mining

Other

2

91

7

Coal

Figure 3 Queensland gross state product coal other mining and non-mining sectors 2012ndash13 Source ABS (2013) Catalogue 52200 Australian National Accounts State Accounts

Coal industry jobs and their locationsThere has been much debate recently as to the exact number of people employed by the coal mining industry

Industry figures have been disputed because of the industryrsquos continual representation and communication

of construction jobs as if they were permanent In addition the industry conspicuously classifies indirect

growth in employment within the local economy as jobs that mining development is responsible for creating

Although in regional mining communities mining employment is high it is relatively small on a statewide

JOBS AFTER COAL A Just Transition for Queensland | 5

level Most recently the industryrsquos employment claims were revealed again in the Australian Land Court

case regarding coal mining development by Indian mining company Adani in the Galilee Basin to have been

exaggerated (Cox 2015) Adanirsquos mine proposal cited the figure of 10000 jobs attached to its development

application but the court was told by Adanirsquos own expert witness that the mine development would only

create 1464 actual jobs throughout the ongoing operation of the mine (Branco 2015)

According to research by The Australia Institute a majority of Queenslanders believe that the mining industry

employs ten times the amount of people it actually does (Campbell 2014) In reality the report shows that

the coal industry only employs 12 of the Queensland workforce (Vorrath 2014) What is significant is how

this employee population is regionally distributed with a majority of the employees residing in the Central

Highlands Isaac and Mackay Regional Council areas (Figure 4)

0

5000

10000

15000

20000

25000

30000

Whitsu

nday

Suns

hine C

oast

Banan

a

Rockh

ampt

on

Brisba

ne

Cent

ral H

ighlan

dsIsa

ac

Macka

yTo

tal

Em

ploy

men

t

Figure 4 Coal jobs by Local Government Area (LGA) in Queensland Top 8Source ABS 2011 Census Coal mining jobs by region in Queensland

SummaryThe coal industry plays a significant role in the Queensland economy but it is by no means irreplaceable As

the next section will show the coal industry has fallen from the lofty heights of its unprecedented profitability

and aggressive hunger for expansion It has come to a slower pace but due to the forecasted change expected

to affect the industry a new approach to planning local economies beyond coal is required

6 | JOBS AFTER COAL A Just Transition for Queensland

2 The drivers of change in the coal industry

Drivers of change The global energy market is in a period of dynamic long-term structural change that will have ongoing

repercussions for energy exporting countries such as Australia Over the last ten years the expansion in gas

the decrease in renewable energy prices the increasing of capital infrastructure costs the demand for cleaner

energy and energy efficiency have all dramatically changed the nature of the global energy economy (Ben

Caldecott 2014)

Coal has been the energy source that has made so many technological advancements through history possible

Although there has been many struggles and social costs along the way The communities workers and

companies that made this progress possible have substantially contributed to the creation of the modern world

Though if there is one thing we know from history it is that empires rise and fall The coal empire is crumbling

As it crumbles it is creating unnecessary instability stress and hardship on communities In communities like

Mackay where income has dropped by 30ndash40 as many other small mining towns people and businesses have

been caught culturally and economically unprepared for this economic shift (Bleby 2013)

Windmill and wind farm

JOBS AFTER COAL A Just Transition for Queensland | 7

2 The drivers of change in the coal industry

Drivers of change The global energy market is in a period of dynamic long-term structural change that will have ongoing

repercussions for energy exporting countries such as Australia Over the last ten years the expansion in gas

the decrease in renewable energy prices the increasing of capital infrastructure costs the demand for cleaner

energy and energy efficiency have all dramatically changed the nature of the global energy economy (Ben

Caldecott 2014)

Coal has been the energy source that has made so many technological advancements through history possible

Although there has been many struggles and social costs along the way The communities workers and

companies that made this progress possible have substantially contributed to the creation of the modern world

Though if there is one thing we know from history it is that empires rise and fall The coal empire is crumbling

As it crumbles it is creating unnecessary instability stress and hardship on communities In communities like

Mackay where income has dropped by 30ndash40 as many other small mining towns people and businesses have

been caught culturally and economically unprepared for this economic shift (Bleby 2013)

It is clear that coal thermal coal especially is no longer good for humanity despite our former Prime Minister

Tony Abbottrsquos fervent belief that it is (Online 2014) WA Premier Colin Barnett heralded last year in his

declaration that coal is in lsquostructural declinersquo (Burrell 2014) He was not wrong In the past 5 years alone the

Dow Jones Total Coal Market index has fallen by 76 (Baker 2014)

The reality is that the world is rapidly shifting away from fossil fuels including countries that are key

importers of Australiarsquos coal and gas China India Japan and South Korea import over 80 of Australiarsquos

export market for coal and gas The reality is that these countries have recently either announced policies to

shift away from these fuels andor initiatives to drastically enhance renewable energy and energy efficiency

(ldquoPolitics of Climate Change in Asiardquo 2015)

The following section of the report analyses the risk of Australia not being prepared economically for changes

that are already taking place As a country and a state our governing political parties continue to pursue

a strategy that assumes our short and long term economic prosperity is dependent on mining Few of our

political leaders are attempting to communicate an economic vision free from the inevitable boom-bust cycles

created by extracting emissions-intensive resources It is also a strategy that assumes energy production and

distribution will continue on as a very centralised process rather than following the great trend of networked

and decentralised distribution that is shaping the 21st century (Riftkin 2015) This strategy is short-sighted

given recent announcements by China and India to phase out fossil fuels and move rapidly towards cleaner

and more distributed energy sources (Rohr 2014)

The international coal priceThe majority of Queenslandrsquos export coal mining industry is dependent on demand for steel making from

the worldrsquos coking or metallurgical coal market This is a market that has been severely impacted by a

combination of actions in China the biggest steel manufacturer in the world Primarily Chinarsquos housing

boom has been slowing down over recent years this in turn has massively reduced the need for steel Most

importantly China is also running a ldquowar on pollutionrdquo that is having direct short- and long-term impacts on

the viability of the coal industry as a whole This has resulted in a campaign of state enforced closures of coal

plants and steel mills especially near the countryrsquos big industrial coastal cities (Ng 2015)

Prices on the international coking coal stock market have plummeted from the all time high of US$330

tonne in late 2011 to a sobering low of US$109tonne in the first quarter of 2015 The outlook still remains

gloomy for the coal sector

With the continued slowdown in the global and Chinese economies the price of iron ore has also collapsed

Prices have dropped by one third in the first quarter of 2015 alone causing at least one Australian mine to

close operations and many others to cancel plans for expansions (Sandersen 2015) Iron ore is closely linked

to the sales of coking coal which is used most commonly to melt iron ore into steel

8 | JOBS AFTER COAL A Just Transition for Queensland

20

14

US

$t

0

100

200

300

400

2005 2007high quality high coking semi-soft coking

2009 2011 2013 2015

Figure 5 Coking Coal Prices 2005ndash2015 (worldcoalcom)

A similar price drop has hit thermal coal used in coal-fired power stations Thermal coal is mined in many

Surat Basin mines and is also found in some Bowen Basin mines where it is an addition to the high quality

coking coal found in the area Significantly the proposed mining development in the Galilee Basin is only

for thermal coal which at a time when coal-fired power stations are being replaced by cleaner options is

alarming (Pacific 2012) Thermal coal was priced at US$120tonne in late 2011 It had plunged to US$73

per tonne by February 2015 and has remained below US$60tonne since May 2015 Chinarsquos new rules of

cutting ash and sulphur content in seaborne coal imports along with increasing tariffs on coal imports has

meant that even Shenhua Chinarsquos biggest coal company cut coal imports in early 2015 (Jenda 2015)

Overall Chinese consumption dipped by 16 in 2014 despite their economic growth of 73

The decade of relentless and largely unplanned investment in Queensland coal mining in times of high prices

led to a massive oversupply against a background of decreasing demand The state and federal governments

failed to slow the industry down so that it did not overshoot an economically sustainable size This has made

the challenge of transitioning out of the industry even harder along with magnifying the pain now faced by

many mining towns (Neubauer 2015) All of this leaves a million-dollar question Is the downshift in [coal]

demand terminal According to Richard Gibbs from the Macquarie Bank it certainly is (Neubauer 2015)

The global coal market is also experiencing competition from renewables and shale gas slow growth and

government policies which are in part driven by the threat of climate change

The growing competition from renewable energy sources has been increasing its impact on the coal industry

by slowly but steadily eroding profits of domestic coal power stationsmdashand thus demand for coalmdashacross the

country (Hewson 2015) In Queensland the state government should be applauded for its 50 renewable

energy target by 2030 which will further add strain to struggling coal power generators (Parkinson 2015)

A more than 50 decline in coal prices has seen most listed coal companies globally to lose 80ndash90 of their

equity market value in the last four years (Buckley 2014) In 2014 the world added more energy generation

capacity from wind power than from coal Overall Europe and America have already cut coal-fired generation

JOBS AFTER COAL A Just Transition for Queensland | 9

capacity by over a fifth in a decade The sun will undoubtedly rise even further for renewable energy in 2015

but for coal there remains a lot further to fallrdquo said a report by the Institute for Energy Economics and

Financial Analysis in January 2015 (Buckley 2015a)

This statement is borne out by the facts

bull In 2014 new global wind installations grew 40 to 46GW led by China and America (Buckley

2015b)

bull In 2014 the US solar installation sector created almost 50 more jobs than the oil and gas pipeline

construction industry (Foundation 2015)

bull From 2000 to 2011 global annual growth in the yearly global installation rate of photovoltaic solar

panels was 40 In 2011 the total amount of global PV capacity installed was 27GW an astonishing

60 growth on 2010 levels (Green 2012)

bull Unsubsidised renewable energy is now cheaper than new coal-fired power in Australia (Paton 2013)

Solar installation

10 | JOBS AFTER COAL A Just Transition for Queensland

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

Coal power station

JOBS AFTER COAL A Just Transition for Queensland | 11

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

The outlook for coal pricesWhile some consider the outlook for coal prices as cyclical in nature and that a turnaround will increases

prices for coal other analysts believe this downward trend based on policies health impacts and concern

about global warming is here to stay

Financial reports from the major mining companies in Australia paint a grim outlook for global metallurgical

coal prices China was once the great hope for coking coal exporters but BHP Billitonrsquos metallurgical coal

market outlook (May 2013) indicated a flattening demand into the future (Billiton 2013 Rohr 2014)

BHP Billiton has warned that the increased usage of scrap metal in furnaces would result in lower growth in

demand for pig iron while greater production from electric arc furnacesmdashwhich use little or no coking coalmdash

are expected to ldquocontribute a significant share of total Chinese steel production by 2030rdquo Although coking

coal will likely remain necessary for steel production for some time as renewable energy sources grow the

efficiency and lower emissions intensity of electric arc furnaces will help them to outcompete coking coal in

the not too distant future Some experts even predict another technology called lsquodirect reduced ironrsquo that uses

gas to make steel could make coking coal redundant within a decade (Macleod 2013)

It is not just China BHP Billiton also cautions that the Indian steel outlook is less certain as steel production

growth has been slower than expected Prices for commodities from iron ore to coal are sinking as Chinarsquos

leadership tries to steer the economy away from debt-fueled property investment and smokestack industries

embracing services and domestic-led consumption At the same time President Xi Jinping is stepping up efforts

to combat pollution The provincial government of Beijing and a number of other major cities have made plans to

ban coal use by 2020 further putting the squeeze on all types of heavy industry (Coulter 2015)

However the outlook is not all dismal for coal everywhere In India demand is expected to continue to rise

without peaking until the 2030s Indiarsquos government predicts a 19 rise in coal imports this year which

may offer very short-term opportunities for Australian miners The opportunities are short term because these

import increases are something the Indian government has indicated it does not want continued into the

future Indiarsquos plan is to ramp up renewable energy technology as well as develop their untapped coal fields

to support a gradual phase out of thermal-coal imports within the next 2ndash3 years (Baker 2014) Regardless

the Indian mining giant Adani still hopes it can get coal from its proposed Carmichael mine in the Galilee

Basin and export it to India for the duration of its 60 year life span After a number of international banks

have ruled out funding for the Carmichael coal mine Adani has been looking for cash handouts from the

Australian Government to fund its shaky proposal However sanity has prevailed and these have been ruled

out by the new Prime Minister (Edis 2015) It is clear the Indian governmentrsquos plan for Indiarsquos future coal

supply sources does not involve Australian coal

12 | JOBS AFTER COAL A Just Transition for Queensland

This is the marketplace in which Australiarsquos exported coal competes and this is the marketplace that holds the

livelihoods of workers and communities in its hands The current state and future outlook of the coal industry

suggests that it would be risky not to scale down the thermal coal industry and at least restrict any new mine

expansions in the coking coal sector There are those who remain positive about the industryrsquos future but

recent events in the coal industry and uncertainty over medium and long term suggest that there are better

industries to back Behind these diverse risks threatening the coal industry is the inescapable scientific

fact that we cannot afford to burn any more coal from new coal mines if we want to decrease the risk of our

already fifty fifty chance of avoiding the worst impacts of global warming (IPCC 2013) If we wanted to try

and remove the total risk of runaway climate change we could not even afford to burn the coal that are sitting

in trucks on trains at port yards and in ships Not even the coal travelling on conveyors into power station

furnaces about to be burnt right this very moment

The carbon bubbleFrom the South Sea Bubble as well as the housing and dotcom bubbles of the last decade periodic over-

investment has been made into sectors deemed too important to fail The rush and hubris of investors seeking

incomparable profits to finance such industries has led to speculative bubbles of over-estimated value that

eventually burst In the economic fallout that results working people carry the burden while the speculators

and profiteers generally are not held accountable Another speculative bubble has formed and it dwarfs the

size of all of the bubbles that have come before it It is called the Carbon Bubble (Tracker 2015)

One of the few things world leaders agreed upon at the Copenhagen climate talks was that the Earth needs to

stay below 2degC warming to minimize the risk of runaway climate change

bull If we are to avoid going over 2degC we can emit only 565 more gigatonnes of carbon dioxide (IPCC 2007)

bull Burning the fossil fuel that corporations now have in their reserves would result in emitting 2795

gigatonnes of carbon dioxidemdashfive times the safe amount (Leaton 2013)

The Intergovernmental Panel on Climate Change has now produced its own carbon budget They have calculated

that if we continue pumping carbon into the atmosphere at todayrsquos rate this budget will be exhausted within

15ndash25 years (IPCC 2013) This means there will be growing political pressure on the fossil fuel industry to

keep most of its reserves in the ground That pressure has already begun around the world Citizens are pressing

their superannuation funds councils banks universities and other institutions to divest from fossil fuels with

growing success The year 2013 saw several major financial institutions recognise the financial and ethical

implications of continuing to finance fossil fuels with Norwegian Storebrand Rabobank and the World Bank

among those who made major announcements on divestment or cutting loans In 2014 major institutions

including Stanford University the Australian National University and Oxford University have divested their fossil

fuel funds (Advisors 2015) So far in 2015 local councils in Australia such as Moreland Newcastle Byron Bay

Melbourne and many more have also divested (Ryan 2015) Divestment is now going mainstream and will have

increasing impacts on fossil fuel company shares into the future

JOBS AFTER COAL A Just Transition for Queensland | 13

As a result of the momentum of the global divestment movement international stock exchanges are creating

new indexes to exclude fossil fuels in preparation of the impending seismic shift in global finances In late

April 2014 the worldrsquos largest fund manager Blackrock joined with the FTSE Group in London to create

a new index The ex-Fossil Fuels Index Series is an innovative set of benchmark indices that excludes

companies directly engaged in extracting so-called ldquostranded assetsrdquo in the hydrocarbons industry ldquoThis

is one of the fastest-moving debates I think Irsquove seen in my 30 years in marketsrdquo FTSE managing director

Kevin Bourne told the Financial Times (Clarke 2014) The Bank of England is now investigating its exposure

to risk from its fossil fuel investments To top that off the worldrsquos biggest sovereign wealth investment fund in

Norway has recently dumped coal investments (Carrington 2015) The largest contribution to climate change

from the fossil fuels in company inventories at present is from coal Because it has the largest climate impact

per unit of useful energy it is being targeted for early phase out

The book value of fossil fuel companies is determined not only by their current infrastructure and deposits

undergoing extraction but also by the size of their legally claimed reserves Because the book value of so

many companies has greatly exceeded their realisable value as emissions restrictions come into place a

speculative bubble has formed Unfortunately bubbles usually burst in the end leaving behind stranded

assets and stranded capitalmdashand leaving workers in the lurch The only alternative is a mature and planned

phase out of the industry that slowly devalues and deregisters fossil fuel reserves at a pace that does not lead

to financial crisis A planned phase out that gives time for just employment transitions for fossil fuel

communities

500

1000886

565

1500

2000

2500

3000

already burnt

remaining

2000ndash2050

2011ndash2050

Coal 2˚Global carbon

budget

Oil

Gas

GtC

O2

Global fossil fuel reserves

Figure 6 Carbontracker 2012 report The Carbon Bubble

14 | JOBS AFTER COAL A Just Transition for Queensland

In 2013 the report Unburnable Carbon highlighted that ldquoCompany valuation and credit ratings

methodologies do not typically inform investors about their exposure to these stranded assetsrdquo (Leaton

2013) This is very troubling when considering that the supporting share value of these reserves was $4

trillion in 2012 and that they serviced $127 trillion in outstanding corporate debt over the same period We

need to challenge these methodologies (Tracker 2015) In a move that signals a step towards the solutions

required the World Bank the European Investment Bank and the US Export-Import Bank have all announced

that they will not fund further coal-fired power plants except in exceptional circumstances As changes in

policy by the major coal consumers the uptake of renewables and the need to stay within the global carbon

budget begin to bite it is high-cost producers who will be squeezed first Australia is considered a high-cost

producer because of our strong industrial relations and wage laws which makes it all the more necessary that

our governments are vigilant and prepared for impending macroeconomic change (Cleary 2015)

SummaryThis is the environment in which the Australian coal industry finds itself Internationally coal is no longer

looking like a safe long-term investment within the context of the rapid changes afoot in the world The coal

industry leaders are either in denial about their industryrsquos future or are determined to squeeze as much profit

as possible until the cost gets worn by workers and their communities (Saunders 2015)

The issues of climate change demands for cleaner air and more efficient new technologies The realities of

the market are revealing coal as the sunset industry it really is This is not an industry Queenslanders can

rely on to create a stable resilient and sustainable economy It cannot be relied upon for future wealth

and future jobs We have been warned by the UN Climate Change Secretariatrsquos Executive Secretary that the

diversification and a managed transition away from coal is what we need to do and we need to heed this

warning (Australian 2015)

JOBS AFTER COAL A Just Transition for Queensland | 15

3 Assessing some of the economic opportunities in mining regions

IntroductionThe great state of Queensland is endowed with sustainable human and environmental resources that have the

potential if we choose to harness it to drive a balanced diverse and resilient economy for generations to

come Diversifying Queenslandrsquos economy to create sensible and stable prosperity beyond the boom and bust

vagaries of the mining industry must be a key objective of the Queensland Government The Newman LNP

Governmentrsquos Queensland Plan headline was lsquoforging diversity and prosperityrsquo (Government 2014) But

throughout Newmanrsquos reign as premier no action was taken Under the new Palaszczuk Labor Government

there has been some effort to support economic diversification across the state This is insufficient because as

of yet nothing has been done to adequately fund facilitate and empower the actual communities where

mining takes place The grassroots Labour Environmental Action Network an organisation within the

Australian Labour Party has called for change At the 2015 Queensland ALP State Conference they put

forward a motion that was passed calling on the state government to prepare a just transition policy before the

next conference (ALP 2015)

Grain harvest

16 | JOBS AFTER COAL A Just Transition for Queensland

Most importantly both major parties have continued their relentless support for further coal mine expansions

that inherently suffocate the process of diversification

With the coal industry forecast to be in a lsquostructural declinersquo by political leaders and bankers alike it is now

essential that the focus for economic development be on industries that can bring sustainable prosperity to

Queensland (Burrell 2014 Robins 2014) In the United Kingdom under Prime Minister Thatcher the world

witnessed the consequences of industries closing without planning and without investment to transition local

communities and industries

The following section of the report outlines how the opportunities for sustainable economic development

are already known Queensland has well-established sectors with bountiful potential in agriculture tourism

manufacturing and education It also has the opportunity to capitalise on a boom in renewable energy and

bio-industrial products to create more sustainable economic sectors These industries are ready to fill the

void that will be and is being left by coal however they lack the support needed to ensure their presence in

mining communities to provide a just transition away from coal where it is most needed

Agriculture and aquacultureCurrently the Queensland agricultural sector is worth near $147 billion and employs over 90000 people

(Queensland Government 2012) The sector has the potential to massively expand its food exports to Asia as

population and economic growth continue to surge in the dynamic economic region Through the competitive

advantage of our proximity to Asia and high-quality produce capabilities agricultural products have become

Queenslandrsquos second largest export earner and have the potential for continued growth (Heath 2014) By

increasing availability of farming technology driving productivity minimising costs and focusing on profitable

premium produce markets the Queensland Agricultural Strategy (2012) aims to double the total value of

production for all agricultural commodities by 2040 With innovative new farming approaches and ecosystem

system management strategies such increases in production are possible in a way which sustainably manages

and regenerates the land

To reduce pressure on fish stocks from home and abroad the promotion of aquaculture could be further

encouraged across the state This industry is worth $10 Million a year (Lucas DLGP 2011) At present

there are several sites located along the coast however research conducted over the last decade has

identified future sites for land based aquaculture Industry consultation aquaculture management training

programs and related issues in developing a workforce need to be considered (Plan 2012) The Queensland

Aquaculture Industry Federation sees the need for continued collaboration between government and other

stakeholders in order for this industry to reach itsrsquo potential as a strong core industry (Federation 2015)

The Department of Employment Economic Development and Innovation is leading the government drive to

JOBS AFTER COAL A Just Transition for Queensland | 17

develop the aquaculture industry This could see a future where aquaculture goes further than just meeting

domestic demand and grow to cater for high value export markets (Lucas DLGP 2011)

New opportunities in animal genetics aquaculture horticulture and bio-processing are driving agriculture

and aquaculture sector growth in new directions Both industries are about creating intergenerational

economic sustainability Choosing these industries that have unlimited potential to sustain our communities

and our ecosystems over mining is choosing long-term jobs over short-term jobs that cannot be passed on to

the next generation The bottom line is that we live in a hungry world and Queensland is well placed to be a

reliable and sustainable source of food to other nations without the agricultural potential we are endowed with

(Government 2014)

Tourism and recreational fishingDespite setbacks due to the high Australian dollar and loss of skilled workers to the mining boom the

tourism industry is still a critical part of the Queensland economy with massive future potential (Dr Tien Duc

Pham 2015) The tourism industry made a significant employment contribution providing 124000 jobs in

2010ndash11 with steady growth in international visitor nights (Deloitte Access Economics 2012) Queensland

has the potential to become a global leader in tourism and ecotourism and by doing so to create more

jobs and revenue (Government 2014) This will be possible similarly as in agriculture by promoting the

experiences available in our natural places and the quality hospitality we can provide to the growing Asian

middle class (Wilson 2013) The Chinese tourism market is seeking clean fresh and new experiences that

Queensland can cater to and is expected to be worth $74 billion by 2020 (Guterres 2014) Significant to

Queenslandrsquos potential in tourism is our ability to expand the tourism industry in the authentically Australian

rural and stunningly beautiful coastal mining communities where new economic activities are most needed

Further mining expansion in such places threatens to do to tourism what the growth in heavy industry did to

Gladstonersquos economic diversity where fishing and tourism are now non-existent

Although sustainably managed fisheries have the potential to provide continued economic prosperity to

Queensland there lies a major opportunity in net free fisheries to develop as tourism industries specifically

in coal mining regions A great recent example of this taking place is the newly established Net Free Zone

between from the Northern end of St Helens beach to Cape Hillsborough (Spelitis 2015) Along with three

other net free zones across the state the extent of the cumulative commercial opportunities for sustainable

tourism the net free zones have created has made it one of the three pillars as part of the 2020 vision for the

Queensland has the opportunity to develop an abundant and resilient agricultural industry that supports the transition to sustainable prosperity

18 | JOBS AFTER COAL A Just Transition for Queensland

Queensland Tourism Industry Council (Council 2015) The Mackay Isaac and Whitsunday (MIW) coal mining

region has excellent accessibility to a variety of fishing pursuits In addition to the new net free zone ther are

five fresh water stocked impoundment fisheries creating opportunities to promote lake beach offshore and

deepwater angling Improvement of accommodation facilities quality of jetties access roads and coordinating

fish trails with regional events could maximise visitation from recreational and tourism markets (Mackay

Tourism Tourism Queensland 2012) Charter fishing operatiors tackle stores campsites motels boat sales

boat building and maintenance all have the opportunity of benefitted from growth from the recreational fishing

tourism industry (Lucas DLGP 2012)

Higher educationOver the past decade millions of international students have visited Queensland for our quality tertiary

institutions and enjoyable lifestyle International education is Queenslandrsquos biggest service export with

nearly $2431 million being generated in 2013ndash14 alone (Australian Government 2014) The majority

of Queensland is strategically located in the latitudinal tropical zone where at a global level more than

50 of the worldrsquos population is forecasted to live by 2050 (Australian Government 2015) This makes

Queenslandrsquos universities well placed to develop the partnerships and research innovations tailored to the

challenges and opportunities of the new tropically-oriented world This will help Queensland and especially

North Queensland to attract increasing levels of international students to be part of our high-quality tropical

research institutions These students will increase spending through tourism support the creation of our own

skilled and globally connected workforce and connect Australia to business networks and opportunities across

the world In 2013ndash14 the Cairns region benefitted to the tune of $1375 million from international students

(McGuiggan 2014) With the right policies these benefits already being experienced primarily in Cairns

Townsville and Brisbane can be spread further across Queensland to make international education a strong

economic driver in transitioning mining communities

Bio-industrial productsAs the world moves away from fossil fuels the demand for cleaner more sustainable fuel sources will grow

(Emissions 2014) By using excess organic matter produced through food production to develop bio-industrial

products Queensland has the potential to export clean and sustainable fuels and bio-plastic materials to the

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Tourism is about experiences not extraction It has the potential to share Queensland beauty with the rest of the world and create sustainable local economies in the process

Queenslandrsquos greatest resource is the minds of its people We can share and co-create our innovations and learning with students from all over the world who want to make Queensland the launch pad for their careers

JOBS AFTER COAL A Just Transition for Queensland | 19

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Sorghum fields

20 | JOBS AFTER COAL A Just Transition for Queensland

Queensland is well placed to develop biofuel products from waste and oil crops such as Pongamia and algae

in addition to using the statersquos advanced sugarcane industry to convert excess cane using efficient cellulosic

processes Recent scientific developments in bio-plastics at the University of Queensland show that as a

state Queensland has the skills and ability to build a bio-industrial products industry that can contribute to a

sustainable economic future (Queensland 2015)

Renewable energyQueensland the sunshine state has enormous potential to generate electricity from the sun wind and waves

in addition to many other abundant renewable energy sources (Green 2012) Renewable energy has for a long

time been the catch cry from environmentalists as the complete solution to creating the jobs necessary to

replace the fossil fuel industry This report has been written partially to show recognition that as much as

renewable energy has the potential to create more jobs and replace fossil fuel domestic energy production it

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Gemasolar solar thermal power station Spain

JOBS AFTER COAL A Just Transition for Queensland | 21

cannot completely replace all of the coal

export industry jobs Numerous studies

show that with strong climate policies

over 7100 jobs can be created in

Queensland through renewable energy

by 2030 (Institute 2011) Thousands of

these jobs will be in regional

Queensland These should be prioritised

for regions where the mining industry

has developed rural communities in

need of new economic opportunities Far

North Queensland is especially suited to

further renewable energy investment

because of its climatic conditions and

because of the expensive transmissions

losses from having energy wired from

southern power sources (Allen 2011)

This makes it essential that government

policy ensures that the fair share of the

$35 billion in potential renewable

energy investment goes to rural mining

communities not only where it is most

needed economically but where it

makes the most business sense

(Department of Employment 2009)

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Queensland has the potential to become a smart sunshine state powered by clean and sustainable renewable energy By doing this we will be creating jobs in rural mining communities where they are needed most and building a foundation for a new sustainable economy

22 | JOBS AFTER COAL A Just Transition for Queensland

4 Community transitions Global case studies

There are communities around the worldwhich have reinvented themselves after the end of coal mining and

developed prosperous economies in doing so It has been a struggle but where there is a level of government

support inspired local leadership and the community is working together to regenerate its economy it has

been possible (Coal 2015) We are not suggesting any of these examples can be directly transferred to

Queensland communities facing the end of coal mining The object of these case studies is not to provide a

blueprint for Mackay Gladstone Rockhampton or mining towns in Central Queensland but to show the

diversity of ideas that have worked in other places that might stimulate our local communities to reinvent

themselves too

Hazelwood coal power station La Trobe Valley Vic

JOBS AFTER COAL A Just Transition for Queensland | 23

La Trobe ValleyIn the brown coal producing region of the La Trobe Valley in Victoria a grassroots transitionary force has been

underway for the past fifteen years Earthworker was set up by union and climate change activists seeking a

real alternative to coal and privately owned business models Earthworker Cooperativersquos mission is to create

jobs that respond to the lsquochallenges of climate change and the need for local job creation by facilitating the

establishment of worker-owned cooperatives hellip in sustainability-focused industriesrsquo (Earthworker 2015)

Their current focus is the establishment of a cooperative producing solar hot water systems in partnership

with an existing business called lsquoEverlast Hydro Systemsrsquo Their goal is to take production to Morwell in the

La Trobe Valley where workers are in need of an alternative to the coal industry The unique cooperative model

has made selling arrangement possible through inserting the option to buy a solar hot water system through

enterprise bargaining agreements

BanwenThe DOVE workshop in Banwen South Wales (Dove 2015) was started by agroup of women who during

the 1984ndash85 coal minersrsquo strike decided that community-based education was the most practical path to

regenerate the local economy Setting up shop in an abandoned mine office they developed a series of adult

education workshops for women Three decades later the DOVE building hosts a diverse set of small-scale

entrepreneurs including a daycare a library a community garden and a cafeacute featuring local foods

OrkneyOrkney like Central Queensland is a relatively isolated place with a scattered population Situated at the

top of Scotland two hours from the mainland by ferry Orcadians like Central Queenslanders often feel

like spectators to what goes on in the rest of their country They also feel vulnerable to central government

decisions and are often irritated by the lack of understanding of island life on the part of distant authoritiesmdash

its particular customs dialect and ways of doing things Since Norse times Orkney islanders burned peat (a

very young form of coal) as their primary fuel source but all the peat has been dug up This traditional way

of life where each farming family had its own peat bank and spent long summer days cutting and drying

peats while sharing picnics as children played is gone Another non-renewable energy source North Sea oil

discovered in the 1970s brought positive and negatives for the island It turned the tide of depopulation but

like the peat banks the oil is depleting and another lsquoend of an erarsquo is approaching Orcadians have woken up

to the fact that they canrsquot continue to hark back to the past and are confronting the issues of a future without

fossil fuels

Over the last three decades European community funding has helped Orkney to equip itself for the green

energy revolution Orkney now plays a global role in the evolution of wave and tidal technologies and

significant research and development work is creating new employment opportunities A high school in

Stromness was converted into the European Marine Energy Centre and is now a world leader providing

developers the opportunity to test full-scale prototypes in the sea The worldrsquos largest single-rotor tidal turbine

24 | JOBS AFTER COAL A Just Transition for Queensland

was the first in Scotland to be connected to the national grid from this centre Marine energy combined with

an expansion of wind turbines means that the island is now self-sufficient in electricity These renewable

energy developments have created jobs in the Orkneys in civil works and erection grid connection and

communications (Stuart 2011)

Investment in renewable energy and its associated RampD has attracted people to live work and study on the

island Islanders used to have to leave to get tertiary education but it is now possible to study for an MSc in

renewable energy at a Heriot Watt University campus in Stromness A new generation of Orcadians have grown

up to see renewable energy as the way of the future something quite ldquonormalrdquo which will provide greater

opportunities for their children to stay on the island with genuine prospects for employment in meaningful

jobs requiring a wide range of skills and qualifications This shows what a community in transition to a low

carbon future can look like

Nord-Pas De CalaisUntil 1986 the north-east region of France Nord-pas de Calais was a major coal mining area It still boasts

huge twin tailings mountains the largest in Europe which have become a tourist attraction It is known

to Australians for the war cemeteries associated with the battle of the Somme in WW1 but it has recently

undergone a remarkable transformation towards a truly sustainable economy Old coal mines at Lens have

been transformed into an art gallery displaying works from the Louvre collection in Paris Hundreds of people

are trained in energy efficiency solar energy and green architecture at a new training centre in nearby Loos-

en-Gohelle

The Chamber of Commerce invited economist and social visionary Jeremy Rifkin of the TIR Consulting

Group and his chief economist Skip Laitner to apply their model of the third industrial revolution to the

district (Riftkin 2015) Rifkinrsquos Third Industrial Revolution combines renewable energy energy efficiency

and the connectivity of the internet Buildings are energy generators and hydrogen is used as energy storage

After working with the community for some time the Master Plan was published in 2013 and envisages

that 100000 new jobs can be created by the transition plan (LLC 2013) Certainly the population has not

declined since mining days and has even slightly increased Inspired local leadership was the key in this

community plus some outside funding to help with the underpinning research

Appalachia (Kentucky)The transition process is just starting here but the community is very organised Kentuckians For The

Commonwealth has been battling the negative effects of coal mining for some decades and is now planning a

transition to ldquobuilding a better future beyond coalrdquo (Commonwealth 2015) Last year they held a conference

in Harlan Kentucky right in the middle of the Appalachian coal fields and invited guests from other US

regions in the same position as well as from Wales It is too soon to see what the outcome of their learning

process will be but they are another example of a community taking its future into its own handsmdashoptimistic

that there is a better future after coal

JOBS AFTER COAL A Just Transition for Queensland | 25

5 A just transition for coal mining communities policy recommendations

The opportunities to transition from unsustainable coal mining to prosperous communities with decent

employment will not just materialise by themselves It will need the political will and the right incentives to

ensure that communities are not left fending for themselves with unemployment increasing and families

in need of long-term welfare But not only is the political will not currently there both major political

parties continue to support the expansion of this sunset industry and by doing so are making the transition

challenges progressively more difficult (Denniss 2012) For too many years governments have uncritically

supported the coal mining sector Entire government departments have been focused on facilitating mining

with tax incentives weakening assessment and approval processes along with providing through tax payer

money established industrial infrastructure to support new projects Government policy often seeks to grow

royalties income by supporting the extraction of as much coal as possible as an escape the challenge of

finding other ways to increase state revenue New sustainable industries in coal communities will need just as

much if not more support while it gets started

We propose that communities local businesses workers unions community groups environment groups

local government and state and federal governments all need to be involved in planning a transition to

alternative forms of economic development and providing new jobs We call this a Just Transition (Anthea

Bill amp Evans1 2008 Brecher 2012) Just Transition is a framework for a fair and sustainable shift to a low

carbon economy proposed by trade unions and supported by environmental NGOs A Just Transition holds

that a shift to a lower carbon economy is vital to avoid dangerous climate change

Bimblebox Nature Refuge

26 | JOBS AFTER COAL A Just Transition for Queensland

Tough targets to cut greenhouse pollution supported by new environmental regulations and emerging carbon

markets will transform the global economy over the next decade These shifts will have major implications

for working people in energy supply industry and transport and for everyone as consumers There is a concern

that significant periods of economic restructuring in the past have often happened in a chaotic fashion

leaving ordinary workers along with their families and communities to bear the brunt of the transition to

new ways of producing wealth A just transition seeks to prevent such injustice becoming a feature of this

transition suggesting that it would not only be morally wrong and socially damaging but would undermine the

credibility of the transition itself and could slow or even halt the changes that must be made

It is through the challenges of communicating the urgency of climate change and other social and

environmental impacts that much of the debate about coal and its consequences for land water and the

climate has become unnecessarily adversarial and polarised Coal mining and power generation communities

deserve acknowledgement and appreciation for all that they have historically and currently contributed to

our country and our economy In communicating the economic shifts that are taking place and facilitating

the necessary transitions the Australian community needs to be respectful of the history and identity of coal

communities Environment groups government unions and the community need to initiate and engage in

the discussions about transitions in an open honest and compassionate manner Only by approaching the

transition in this way can the adversarial nature of the debate be broken down to make way for transformative

mutually respectful and holistic solutions

Whitsundays lsquoHave a Heart for the Reefrsquo

JOBS AFTER COAL A Just Transition for Queensland | 27

A just transition recognises that support for policies are conditional on a fair distribution of the costs and

benefits of those policies across the economy A just transition should also recognise that the creation of

opportunities for active engagement by those affected in determining the future wellbeing of themselves

and their families is essential for the long term empowerment of citizens and communities The following

recommendations have been written with the aim of emphasising such community empowerment as a priority

Recommendations

1) Establishing a unit within the State Government to support coal mining regions to transition to new economies

Specific institutions are needed to develop transition plans They need to have strong government support

and funding regional offices and representation from diverse stakeholders A dedicated unit within the

Department of Infrastructure Local Government and Planning could be established to oversee this work

They could work on the ground in the main coal mining communities to bring government expertise into

regional entities that would develop local plans that involve and empower the whole community This unit

or a connected unit would analyse existing barriers to the creation of competitive advantages for alternative

sustainable industries and would identify actions the State Government can take to support such creation

Any policy and support should come with clear conditions and timeframes These regional entities would

need generous budgets to assist local groups to develop their transition strategies to support research re-

training and the development of new business and community start-up initiatives based on the needs and

strategies of communities The key to communities becoming economically resilient is high levels of autonomy

and freedom in shaping their economic futures Research funding available to the regional entities will be

essential to the empowerment of local leadership Research funding should at least reach the OECD research

funding average and it should prioritise low carbon technologies and industry sectors with increased triple

bottom line sustainability potential

2) Support community leadership in diversifying local economies through the establishment of democratic regional entities

In each mining community a group of traditional and non-traditional community leaders willing to think

beyond lsquoBusiness as Usualrsquo to imagine a better future could be called together to work in collaboration with

and be resourced by the state government managed regional entities mentioned in recommendation one

The leaders would come from diverse backgrounds such as from local governments business associations

unions farming groups renewable energy businesses and educational institutions The objectives of these

leadership groups would be tailored to each community The objectives would in broad terms be to increase

employment in new diverse industries based on sustainable production and publicservice sector job creation

Expert facilitation alongside inclusive and democratic community engagement initiatives would be essential

to ensure the process and environment for creativity and innovation is maximised To develop such groups

it would be necessary to take stock of the existing resources skills and successful businesses on which a

new future can be built In addition an analysis of the social environmental and economic needs of the

28 | JOBS AFTER COAL A Just Transition for Queensland

community would also be beneficial These groups could then establish economic diversification projects

including value-added local production worker controlled co-operative enterprises and new community-

based enterprises that economically empower the local community Activities may also include support for

alternative industries in regard to process restructuring or subsidising the wages of workers displaced from

higher paying traditional industries

3) Support researching and communicating how the just transition can take place

Consistent research is needed on the best options to support the state and national economies to transition

This requires ongoing situational analysis of the global energy market shifts at both government levels In

addition each mining region will need assistance to research the number of jobs that are dependent on coal

the skills of those employed the level of local national and global long- and short-term risk to local mining

operations the transferability of jobs to other industries local opportunities for new enterprises and their

needs and the local educational and training needs and resources A key issue requiring research will be

around how the transitition scenarios differ depending on the level and relativity of thermal and coking coal

industries across coal mining communities The process for sourcing this information at a local and state

government level should be integrated into a policy feedback loop to support cyclical situational analysis and

policy adjustments from all levels of government This research should take place at the state level and be

encouraged at the industry and local level through grants

Mackay Central Queensland

JOBS AFTER COAL A Just Transition for Queensland | 29

4) Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

Many existing Queensland industries including those not highlighted in this report have the potential to

carry Queensland towards a new sustainable economy [sC5]mdashbut they will need support to do so Instead

of continuing to support and lower costs for the coal mining industry we need a plan to grow competitive

advantage across industries that have potential for sustainability and growth in regional mining communities

Along with industry and community organisations the State Government could organise a State Economic

Summit to assess existing industry clusters identify the potential of new and emerging industries consider

their competitiveness and key capabilities and identify barriers to increasing competitive advantage The

findings and recommendations from this Summit could be used to inform the work of the Unit established in

bullet point one above and the research outlined in bullet point two

5) Provide social protection of workers their families and incomes

If mines close suddenly workers need protection for their incomes and social services and possible relocation

even though many miners these days do not live in the communities where they mine Ideally these transition

plans would be developed early enough to ensure that new employment opportunities are in place for them

before mines actually close For many workers this is already too late but if the process begins now there will

be choices available for future retrenched coal workers who live in mining communities and regions Mining

companies could be incentivised andor penalised to give adequate notice to workers and other stakeholders

that closure may be impending and alternative economic opportunities need to be developed

6) Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

Involving the relevant unions in the planning of community transitions can enable them to move towards

becoming more proactive agents helping to plan the transition with critical networks and specific knowledge

about the needs of their members When a coal-fired power station in Washington State USA was scheduled

for closure for environmental reasons unions played a pivotal role persuading environmentalists and others

to delay the closure long enough for a Just Transition to provide different jobs for the workers This made it

possible for the coal resource to be replaced by wind and other renewable generation rather than natural

gasmdasha better environmental outcome and the unions became an active part in the phase out planning

Unions have a heavy workload defending workers rights and pay They need to be supported and financed to

play important roles in community transitions From facilitation and leadership of planning bodies career

planning and advice preferential hiring for displaced workers in the new alternative emerging industries and

leading the establishment of work controlled cooperatives unions have an essential role to play

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

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Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

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Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

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Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

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Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

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Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

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Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

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Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

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Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

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Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

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36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

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Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

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Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

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Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 4: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

ii | JOBS AFTER COAL A Just Transition for Queensland

Bowen Basin coal mine and surrounding area

JOBS AFTER COAL A Just Transition for Queensland | iii

Foreword

The coal industryrsquos impact on the state of Queensland has had its

peak and is now in decline This makes right now the most important

time to be thinking about not just stopping the industryrsquos destruction

of prime agricultural land but also how we build the alternatives for

regions where coal has become so economically dominant

There are so many opportunities for Queensland to move forward

We have a growing population diverse people and cultures abundant

natural resources that have the potential to be used sustainably and

we are so close to the new epicentre of change in the world in Asia

One finds it hard to imagine how the many social and economic opportunities our state has available

to us can be ignored how some leaders can still be so fixed in their intent to indefinitely expand the

coal mining industry when it is so clear the people of Queensland the people of Australia and the world

wants to move forward

This report is about the people of Queensland taking the initiative to communicate a positive new vision

of what our future economy and the journey to arrive there can look like It is the beginning of a new

chapter in the conversation about coal that has been getting closer and closer to being opened as more

people realise the devastating impacts the industry is having

Most of all this report is about justice not just for the planet but for workers and citizens who have done

nothing wrong to work in the coal industry It is about justice for workers who have been supporting our

economy supporting our towns our clubs and being part of our community Finally it is about justice for

the families in mining communities who deserve the support to help them plan their future beyond coal

It is the government and it is the mining corporations that have allowed these communities to be placed

in an increasingly risky situation However it is the responsibility of all of us to help them out of it and it

is now time to take that responsibility

Drew Hutton

President of the Lock the Gate Alliance

iv | JOBS AFTER COAL A Just Transition for Queensland

Executive summary

This report is calling for a Just Transition for coal communities in Queensland The term is not well known in

common Australian political rhetoric The lsquoJust Transitionrsquo term in this report is defined as a transition that

supports environmental policies with a fair distribution of the costs and benefits across the economy and

that support the creation of opportunities for active engagement by those affected to determine the future

wellbeing of themselves and their families

There is substantial international literature on the concept of a Just Transition Reports by and for Australian

Canadian and South African unions are just a sample of the literature diversity Many organisations by way

of example the Organisation for Economic Development and Cooperation the United Nations Environment

Program the International Labour Organisation the United Nations Framework Convention on Climate Change

and the World Wildlife Fund have produced literature on the matter

All over the world where communities have been largely dependent on a single unsustainable industry they have

throughout history been forced to transition Sometimes this is sudden unplanned and involves considerable pain

Most of which is felt by people working in those industries This unfortunately has been the experience so far in

Central Queensland with numerous mining companies cutting costs and forcing redundancies that have caused

families to leave the region The volatility of the Queensland coal industry has not been managed well by our either

colluding or timid state governments depending on which party is in power

Around the world there are stories we can look towards to find inspiration Some communities have reinvented

themselves creating new industries and jobs minimising the impacts on local people and establishing stronger

local economies We discuss some case studies in the report of communities which have achieved some

impressive results Inspiration can be found in the UK and South African movements to create One Million

Climate Jobs (Jobs 2015) Trade Unions have united with environmental organisations academics and other

civil society groups to write a blueprint for the creation and financing of 1 million low carbon long-term jobs in

each country Some of these initiatives include jobs in public transport in energy and in housing and jobs to

localise and secure food supply and protect water resources (Change 2010)

The market is telling us that coal is an energy source in decline Renewable energy investment is skyrocketing

air pollution controls are being stepped up around the globe and countries are preparing for much stronger

action on climate change As a major carbon exporting country Australia is in serious economic risk of being

caught in the midst of a rapidly hastening global energy transition Australia must develop energy and climate

strategies that are more in tune with international developments and capture the economic opportunities to

transition away from fossil fuels and towards renewable energy To do this we need strong leadership from

the business sector our communities and because of the speed and resources that will be required in this

transition our governments

JOBS AFTER COAL A Just Transition for Queensland | v

The Queensland government is under pressure from mining corporations and other stakeholders to keep the

coal industry going strong Faced with the challenge of creating an economic vision beyond coal our political

leaders have chosen for too long to capitulate to this pressure The coal industry is in denial about its terminal

decline The question community members are left to ponder is if the industry knew its days were counted

would it still try and squeeze as much support out of the government as possible To try to make as many

subsidised profits as it can before throwing in the towel We canrsquot wait and risk the livelihoods of citizens

in coal communities to find out The alternative for the people of Queensland and the Government is to

admit that the decline is terminal and stop delaying the re-orientation of policy and the economy to support

sustainable industries

Challenges faced by the different mining industry towns are quite different from one another As such the

planning of a just transition requires a diverse and adaptative strategic approach For example the challenges

the mining industry towns of Mackay and Rockhampton are facing are substantially different than the ones

the specifically mining operation towns of Moranbah and Blackwater are facing Different regions with

different levels of economic dependency on coal will require unique transitionary solutions and strategies

These different approaches needed are best understood by and will require leadership from the local

community to have the best chances of success

The economic and geographical difference between thermal and coking coal operations is another significant

complexity Often both coal types will be referred to as one homogenous industry by the media and politicians

This misguided referencing makes having a discussion about the different futures for each industry

difficult Coking coal has a substantially different outlook to thermal coal and needs to be discussed and

considered separately Policy supporting a just transition needs to carefully consider their uniqueness and the

implications this has for planning support resources and initiatives in different coal regions where each type

of coal has a different level of operational and economic intensity

The political conversation about a Just Transition has only just started to emerge Rumblings and whispers

of the actions and policies necessary within the environment and labour movements have been building

momentum Policies are being discussed and cooperatives are being launched throughout Australiarsquos coal

communities Significantly this issue is building important relationships between environment groups and

labour unions that have complimentary objectives within the Just Transition framework Their collaborations

are building a stronger and more cooperative civil society and strengthening the fabric of our democracy It is

hoped that this report will help contribute to this momentum so that some tangible and clear actions are seen

in the very near future

vi | JOBS AFTER COAL A Just Transition for Queensland

Key recommendations for the State Government of Queensland

1 Establishing a unit within the State Government to support coal mining regions to transition to new economies

The unit would

bull Work on the ground in coal mining communities to bring government expertise into regional entities

bull Analyse barriers to the creation of competitive advantages for alternative sustainable industries

bull Identify actions the State Government can take to support sustainable industries

bull Provide research funding to that prioritises low carbon technologies and industry sectors with increased triple bottom line sustainability potential

2 Support community leadership in diversifying local economies through the establishment of democratic regional entities that

bull Lead in the development of their communitiesrsquo transition strategies

bull Researching the transition opportunities and pathways for the community

bull Planning and initiating re-training programs for workers from affected industries

bull Facilitate support programs for new businesses cooperatives and social enterprises based on the needs and strategies of communities

bull To take stock of the existing resources skills and successful businesses on which a new future can be built

bull Run an analysis of the social environmental and economic needs of the community

bull Establish economic diversification projects including value-added local production worker controlled co-operative enterprises and new community-based enterprises

bull Work in collaboration with regional councils and economic development organisations

3 Support researching and communicating how the just transition can take place

bull Providing regular academic standard situational analysis of the global energy markets shifts to keep the public informed about energy market trajectories

bull Support regional entities to research the number of jobs that are dependent on coal the skills of those employed the level of local national and global long- and short-term risk to local mining operations the transferability of jobs to other industries local opportunities for new enterprises and their needs and the local educational and training needs and resources

bull Researching how the transition scenarios could differ depending on the level and relativity of thermal and coking coal industries across coal mining communities

JOBS AFTER COAL A Just Transition for Queensland | vii

4 Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

bull Develop a plan to grow competitive advantage across industries that have potential for sustainability and growth in regional mining communities

bull Organise a State Economic Summit to assess existing industry clusters identify the potential of new and emerging industries consider their competitiveness and key capabilities and identify barriers to increasing competitive advantage

5 Provide social protection of workers their families and incomes

bull Create individual mine employment transition plans in cooperation with mining companies and local communities ready for when mines cease operating

bull Penalising mining companies that do not give adequate notice of their closure or restructuring

bull Subsidising workers at a full living income level for a maximum of four years who do not have adequate employment available to them at the time of redundancy to undertake training for careers that support the establishment of the new economy in their community

6 Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

bull Support and finance Unions to play facilitating roles in community transitions

bull Engage Unions to

- Provide career planning and advice

- Negotiate preferential hiring for displaced workers in the new alternative emerging industries

- Lead the establishment of work controlled cooperatives

7 Provide training opportunities for coal workers and communities

bull Mandating coal mining companies to fund education and training for their workers that give them skills for other industries

bull Funding training programs to assist retrenched workers from the coal industry to attain continued retraining and re-education

viii | JOBS AFTER COAL A Just Transition for Queensland

8 Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

bull Bringing mine site rehabilitation standards in Queensland to global best practice

bull Mandate that mine sales are not made to companies without adequate capital to properly rehabilitate the mine site

bull Increasing mining security deposits to ensure that the full cost of third party mine site rehabilitation is progressively implemented and signed off by governments throughout the life of the mine

bull Ban the sale of mines where rehabilitation responsibilities are not complete or behind schedule

bull Support the nationally coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions described above and more detailed policy changes

9 Remove all subsidies and tax payer funded support to coal mining

bull Review and remove all hidden subsidies to the coal industry within the state government

10 Sound investment and resource revenue management

bull Commission an economic assessment of the possible economic mechanisms and changes to existing policies that could fund the above measures to the extent that will be necessary

bull Set aside a percentage of coal royalties for funding the diversification of coal mining regions

JOBS AFTER COAL A Just Transition for Queensland | 1

1 Coalrsquos current role in the Queensland economy

Coal in the Queensland economyOver the last 30 years the Queensland coal industry has grown substantially to become a significant part of

the Queensland economy and create employment in many regional areas The industry has been concentrated

in the Bowen and Surat Basins throughout rural western and central Queensland The boom for the industry

began in 2005ndash2006 when prices for coal rose by around 400 causing massive industry profits in the

2000s (Stanford 2014) Prices have fallen dramatically since the flow on effects of the global financial crisis

(GFC) slowed down Chinarsquos growth in 2011ndash2012 However prices have remained much higher than the

below US$40tonne that was averaged through the 90s and earlier (Quandlcom 2015)

Queensland coal train

2 | JOBS AFTER COAL A Just Transition for Queensland

Over the last five years since the GFC and later slow down in coal demand the total Queensland coal

production has after decades of growth levelled off at just over 200 million tonnes per annum (Figure 1)

0

50

100

150

200

250

2008ndash09 2009ndash10 2010ndash11 2011ndash12 2012ndash13

Mill

ion

tonn

es

Figure 1 Queensland Coal Production 2008ndash09 to 2012ndash13 Source Queensland Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13

Queensland uses 20 to 25 million tonnes of its mined coal for electricity generation each year (Government

2014) But the rest which is 85 to 90 of the mined coal is exported to countries all over the world and

mainly to Asia In 2013ndash14 33 of the production was thermal coal and 67 was for coking coal production

to make steel (Table 1) Both thermal and coking coal create greenhouse gas emissions when they are burnt

However contrary to government and media perceptions the coal industry is not the sole driving force

behind the Queensland economy As in most modern economies the service industry dominates with 60

of economic output followed by the construction industry with 10 manufacturing at 7 and agriculture

forestry and fishing at 3 (ABS 2014)

An overview of the Queensland coal industry would not be complete without an examination of its level of

foreign ownership By volume 80 of Queenslandrsquos coal production is foreign owned (Government 2013)

This means that a majority of the profits from the operations of these companies are being directed out of

Australia to international shareholders

JOBS AFTER COAL A Just Transition for Queensland | 3

Table 1 Queensland Coal Mining Areas Production and Types 2009ndash10 to 2013ndash14

2009ndash2010 2010ndash2011 2011ndash2012 2012ndash2013 2013ndash2014

Mines operating 56 57 58 59 59

Saleable production Open-cut

Northern 76 450 64 167 62 632 71 268 78 953

Central 63 319 52 637 56 032 63 871 73 801

Southern 39 339 37 423 45 010 43 709 43 651

Total (mt) 179 108 154 227 163 674 178 848 196 405

Underground

Northern 7 642 8 965 9 492 13 266 11 470

Central 18 968 16 642 15 082 14 511 18 433

Total (mt) 26 611 25 606 24 574 27 776 29 903

Coking coal total 125 178 108 731 117 000 131 328 151 571

Thermal coal total 80 540 71 103 71 247 75 296 74 737

State total 205 719 179 834 188 247 206 624 226 309

Source Queensland Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13

Abbot Point

4 | JOBS AFTER COAL A Just Transition for Queensland

Revenue and economic activity generated by the coal Industry

As a nation the coal industry is Australiarsquos second

largest export earner after the iron ore industry Last

year it generated $40 billion which equal to about

12 of export revenue (Cleary 2015) The coal

industry in Queensland will pay around $2 billion

which amounts to 80 of total mining royalties

to the state Government in 2014ndash15 (Campbell

2014) Coal royalties represent around 4 of

Queensland Government revenue (Vorrath 2014)

Similar amounts come from vehicle registrations

and interests on funds saved for superannuation

in addition to long service leave entitlements as

shown in Figure 2 Such figures are not large in the

financial context of running a state government

Despite this the taxation contribution of coal is

incorrectly perceived as significant

The large revenues derived from coal exports

is due to the massive volumes the industry has

reached in recent years Total revenue to the coal

industry from its mining operations amounts to

approximately $25 billion per year that is added

to the economy This is a significant contribution

to Queenslandrsquos economy but one that needs

to be viewed relative to the size of the economy

Queenslandrsquos economy produced output worth

$290 billion in 2012ndash13 meaning the coal

sector accounted for around 7 of production

by value as shown in Figure 3 (right)

Commonwealth grants

Other staterevenue

MV registration

3

4840

54Interest

Coal royalties

Figure 2 Queensland State Government Revenue SourcesSource Queensland Treasury (2014) Queensland State Budget 2014ndash15 Paper 2

Non-mining

Other

2

91

7

Coal

Figure 3 Queensland gross state product coal other mining and non-mining sectors 2012ndash13 Source ABS (2013) Catalogue 52200 Australian National Accounts State Accounts

Coal industry jobs and their locationsThere has been much debate recently as to the exact number of people employed by the coal mining industry

Industry figures have been disputed because of the industryrsquos continual representation and communication

of construction jobs as if they were permanent In addition the industry conspicuously classifies indirect

growth in employment within the local economy as jobs that mining development is responsible for creating

Although in regional mining communities mining employment is high it is relatively small on a statewide

JOBS AFTER COAL A Just Transition for Queensland | 5

level Most recently the industryrsquos employment claims were revealed again in the Australian Land Court

case regarding coal mining development by Indian mining company Adani in the Galilee Basin to have been

exaggerated (Cox 2015) Adanirsquos mine proposal cited the figure of 10000 jobs attached to its development

application but the court was told by Adanirsquos own expert witness that the mine development would only

create 1464 actual jobs throughout the ongoing operation of the mine (Branco 2015)

According to research by The Australia Institute a majority of Queenslanders believe that the mining industry

employs ten times the amount of people it actually does (Campbell 2014) In reality the report shows that

the coal industry only employs 12 of the Queensland workforce (Vorrath 2014) What is significant is how

this employee population is regionally distributed with a majority of the employees residing in the Central

Highlands Isaac and Mackay Regional Council areas (Figure 4)

0

5000

10000

15000

20000

25000

30000

Whitsu

nday

Suns

hine C

oast

Banan

a

Rockh

ampt

on

Brisba

ne

Cent

ral H

ighlan

dsIsa

ac

Macka

yTo

tal

Em

ploy

men

t

Figure 4 Coal jobs by Local Government Area (LGA) in Queensland Top 8Source ABS 2011 Census Coal mining jobs by region in Queensland

SummaryThe coal industry plays a significant role in the Queensland economy but it is by no means irreplaceable As

the next section will show the coal industry has fallen from the lofty heights of its unprecedented profitability

and aggressive hunger for expansion It has come to a slower pace but due to the forecasted change expected

to affect the industry a new approach to planning local economies beyond coal is required

6 | JOBS AFTER COAL A Just Transition for Queensland

2 The drivers of change in the coal industry

Drivers of change The global energy market is in a period of dynamic long-term structural change that will have ongoing

repercussions for energy exporting countries such as Australia Over the last ten years the expansion in gas

the decrease in renewable energy prices the increasing of capital infrastructure costs the demand for cleaner

energy and energy efficiency have all dramatically changed the nature of the global energy economy (Ben

Caldecott 2014)

Coal has been the energy source that has made so many technological advancements through history possible

Although there has been many struggles and social costs along the way The communities workers and

companies that made this progress possible have substantially contributed to the creation of the modern world

Though if there is one thing we know from history it is that empires rise and fall The coal empire is crumbling

As it crumbles it is creating unnecessary instability stress and hardship on communities In communities like

Mackay where income has dropped by 30ndash40 as many other small mining towns people and businesses have

been caught culturally and economically unprepared for this economic shift (Bleby 2013)

Windmill and wind farm

JOBS AFTER COAL A Just Transition for Queensland | 7

2 The drivers of change in the coal industry

Drivers of change The global energy market is in a period of dynamic long-term structural change that will have ongoing

repercussions for energy exporting countries such as Australia Over the last ten years the expansion in gas

the decrease in renewable energy prices the increasing of capital infrastructure costs the demand for cleaner

energy and energy efficiency have all dramatically changed the nature of the global energy economy (Ben

Caldecott 2014)

Coal has been the energy source that has made so many technological advancements through history possible

Although there has been many struggles and social costs along the way The communities workers and

companies that made this progress possible have substantially contributed to the creation of the modern world

Though if there is one thing we know from history it is that empires rise and fall The coal empire is crumbling

As it crumbles it is creating unnecessary instability stress and hardship on communities In communities like

Mackay where income has dropped by 30ndash40 as many other small mining towns people and businesses have

been caught culturally and economically unprepared for this economic shift (Bleby 2013)

It is clear that coal thermal coal especially is no longer good for humanity despite our former Prime Minister

Tony Abbottrsquos fervent belief that it is (Online 2014) WA Premier Colin Barnett heralded last year in his

declaration that coal is in lsquostructural declinersquo (Burrell 2014) He was not wrong In the past 5 years alone the

Dow Jones Total Coal Market index has fallen by 76 (Baker 2014)

The reality is that the world is rapidly shifting away from fossil fuels including countries that are key

importers of Australiarsquos coal and gas China India Japan and South Korea import over 80 of Australiarsquos

export market for coal and gas The reality is that these countries have recently either announced policies to

shift away from these fuels andor initiatives to drastically enhance renewable energy and energy efficiency

(ldquoPolitics of Climate Change in Asiardquo 2015)

The following section of the report analyses the risk of Australia not being prepared economically for changes

that are already taking place As a country and a state our governing political parties continue to pursue

a strategy that assumes our short and long term economic prosperity is dependent on mining Few of our

political leaders are attempting to communicate an economic vision free from the inevitable boom-bust cycles

created by extracting emissions-intensive resources It is also a strategy that assumes energy production and

distribution will continue on as a very centralised process rather than following the great trend of networked

and decentralised distribution that is shaping the 21st century (Riftkin 2015) This strategy is short-sighted

given recent announcements by China and India to phase out fossil fuels and move rapidly towards cleaner

and more distributed energy sources (Rohr 2014)

The international coal priceThe majority of Queenslandrsquos export coal mining industry is dependent on demand for steel making from

the worldrsquos coking or metallurgical coal market This is a market that has been severely impacted by a

combination of actions in China the biggest steel manufacturer in the world Primarily Chinarsquos housing

boom has been slowing down over recent years this in turn has massively reduced the need for steel Most

importantly China is also running a ldquowar on pollutionrdquo that is having direct short- and long-term impacts on

the viability of the coal industry as a whole This has resulted in a campaign of state enforced closures of coal

plants and steel mills especially near the countryrsquos big industrial coastal cities (Ng 2015)

Prices on the international coking coal stock market have plummeted from the all time high of US$330

tonne in late 2011 to a sobering low of US$109tonne in the first quarter of 2015 The outlook still remains

gloomy for the coal sector

With the continued slowdown in the global and Chinese economies the price of iron ore has also collapsed

Prices have dropped by one third in the first quarter of 2015 alone causing at least one Australian mine to

close operations and many others to cancel plans for expansions (Sandersen 2015) Iron ore is closely linked

to the sales of coking coal which is used most commonly to melt iron ore into steel

8 | JOBS AFTER COAL A Just Transition for Queensland

20

14

US

$t

0

100

200

300

400

2005 2007high quality high coking semi-soft coking

2009 2011 2013 2015

Figure 5 Coking Coal Prices 2005ndash2015 (worldcoalcom)

A similar price drop has hit thermal coal used in coal-fired power stations Thermal coal is mined in many

Surat Basin mines and is also found in some Bowen Basin mines where it is an addition to the high quality

coking coal found in the area Significantly the proposed mining development in the Galilee Basin is only

for thermal coal which at a time when coal-fired power stations are being replaced by cleaner options is

alarming (Pacific 2012) Thermal coal was priced at US$120tonne in late 2011 It had plunged to US$73

per tonne by February 2015 and has remained below US$60tonne since May 2015 Chinarsquos new rules of

cutting ash and sulphur content in seaborne coal imports along with increasing tariffs on coal imports has

meant that even Shenhua Chinarsquos biggest coal company cut coal imports in early 2015 (Jenda 2015)

Overall Chinese consumption dipped by 16 in 2014 despite their economic growth of 73

The decade of relentless and largely unplanned investment in Queensland coal mining in times of high prices

led to a massive oversupply against a background of decreasing demand The state and federal governments

failed to slow the industry down so that it did not overshoot an economically sustainable size This has made

the challenge of transitioning out of the industry even harder along with magnifying the pain now faced by

many mining towns (Neubauer 2015) All of this leaves a million-dollar question Is the downshift in [coal]

demand terminal According to Richard Gibbs from the Macquarie Bank it certainly is (Neubauer 2015)

The global coal market is also experiencing competition from renewables and shale gas slow growth and

government policies which are in part driven by the threat of climate change

The growing competition from renewable energy sources has been increasing its impact on the coal industry

by slowly but steadily eroding profits of domestic coal power stationsmdashand thus demand for coalmdashacross the

country (Hewson 2015) In Queensland the state government should be applauded for its 50 renewable

energy target by 2030 which will further add strain to struggling coal power generators (Parkinson 2015)

A more than 50 decline in coal prices has seen most listed coal companies globally to lose 80ndash90 of their

equity market value in the last four years (Buckley 2014) In 2014 the world added more energy generation

capacity from wind power than from coal Overall Europe and America have already cut coal-fired generation

JOBS AFTER COAL A Just Transition for Queensland | 9

capacity by over a fifth in a decade The sun will undoubtedly rise even further for renewable energy in 2015

but for coal there remains a lot further to fallrdquo said a report by the Institute for Energy Economics and

Financial Analysis in January 2015 (Buckley 2015a)

This statement is borne out by the facts

bull In 2014 new global wind installations grew 40 to 46GW led by China and America (Buckley

2015b)

bull In 2014 the US solar installation sector created almost 50 more jobs than the oil and gas pipeline

construction industry (Foundation 2015)

bull From 2000 to 2011 global annual growth in the yearly global installation rate of photovoltaic solar

panels was 40 In 2011 the total amount of global PV capacity installed was 27GW an astonishing

60 growth on 2010 levels (Green 2012)

bull Unsubsidised renewable energy is now cheaper than new coal-fired power in Australia (Paton 2013)

Solar installation

10 | JOBS AFTER COAL A Just Transition for Queensland

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

Coal power station

JOBS AFTER COAL A Just Transition for Queensland | 11

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

The outlook for coal pricesWhile some consider the outlook for coal prices as cyclical in nature and that a turnaround will increases

prices for coal other analysts believe this downward trend based on policies health impacts and concern

about global warming is here to stay

Financial reports from the major mining companies in Australia paint a grim outlook for global metallurgical

coal prices China was once the great hope for coking coal exporters but BHP Billitonrsquos metallurgical coal

market outlook (May 2013) indicated a flattening demand into the future (Billiton 2013 Rohr 2014)

BHP Billiton has warned that the increased usage of scrap metal in furnaces would result in lower growth in

demand for pig iron while greater production from electric arc furnacesmdashwhich use little or no coking coalmdash

are expected to ldquocontribute a significant share of total Chinese steel production by 2030rdquo Although coking

coal will likely remain necessary for steel production for some time as renewable energy sources grow the

efficiency and lower emissions intensity of electric arc furnaces will help them to outcompete coking coal in

the not too distant future Some experts even predict another technology called lsquodirect reduced ironrsquo that uses

gas to make steel could make coking coal redundant within a decade (Macleod 2013)

It is not just China BHP Billiton also cautions that the Indian steel outlook is less certain as steel production

growth has been slower than expected Prices for commodities from iron ore to coal are sinking as Chinarsquos

leadership tries to steer the economy away from debt-fueled property investment and smokestack industries

embracing services and domestic-led consumption At the same time President Xi Jinping is stepping up efforts

to combat pollution The provincial government of Beijing and a number of other major cities have made plans to

ban coal use by 2020 further putting the squeeze on all types of heavy industry (Coulter 2015)

However the outlook is not all dismal for coal everywhere In India demand is expected to continue to rise

without peaking until the 2030s Indiarsquos government predicts a 19 rise in coal imports this year which

may offer very short-term opportunities for Australian miners The opportunities are short term because these

import increases are something the Indian government has indicated it does not want continued into the

future Indiarsquos plan is to ramp up renewable energy technology as well as develop their untapped coal fields

to support a gradual phase out of thermal-coal imports within the next 2ndash3 years (Baker 2014) Regardless

the Indian mining giant Adani still hopes it can get coal from its proposed Carmichael mine in the Galilee

Basin and export it to India for the duration of its 60 year life span After a number of international banks

have ruled out funding for the Carmichael coal mine Adani has been looking for cash handouts from the

Australian Government to fund its shaky proposal However sanity has prevailed and these have been ruled

out by the new Prime Minister (Edis 2015) It is clear the Indian governmentrsquos plan for Indiarsquos future coal

supply sources does not involve Australian coal

12 | JOBS AFTER COAL A Just Transition for Queensland

This is the marketplace in which Australiarsquos exported coal competes and this is the marketplace that holds the

livelihoods of workers and communities in its hands The current state and future outlook of the coal industry

suggests that it would be risky not to scale down the thermal coal industry and at least restrict any new mine

expansions in the coking coal sector There are those who remain positive about the industryrsquos future but

recent events in the coal industry and uncertainty over medium and long term suggest that there are better

industries to back Behind these diverse risks threatening the coal industry is the inescapable scientific

fact that we cannot afford to burn any more coal from new coal mines if we want to decrease the risk of our

already fifty fifty chance of avoiding the worst impacts of global warming (IPCC 2013) If we wanted to try

and remove the total risk of runaway climate change we could not even afford to burn the coal that are sitting

in trucks on trains at port yards and in ships Not even the coal travelling on conveyors into power station

furnaces about to be burnt right this very moment

The carbon bubbleFrom the South Sea Bubble as well as the housing and dotcom bubbles of the last decade periodic over-

investment has been made into sectors deemed too important to fail The rush and hubris of investors seeking

incomparable profits to finance such industries has led to speculative bubbles of over-estimated value that

eventually burst In the economic fallout that results working people carry the burden while the speculators

and profiteers generally are not held accountable Another speculative bubble has formed and it dwarfs the

size of all of the bubbles that have come before it It is called the Carbon Bubble (Tracker 2015)

One of the few things world leaders agreed upon at the Copenhagen climate talks was that the Earth needs to

stay below 2degC warming to minimize the risk of runaway climate change

bull If we are to avoid going over 2degC we can emit only 565 more gigatonnes of carbon dioxide (IPCC 2007)

bull Burning the fossil fuel that corporations now have in their reserves would result in emitting 2795

gigatonnes of carbon dioxidemdashfive times the safe amount (Leaton 2013)

The Intergovernmental Panel on Climate Change has now produced its own carbon budget They have calculated

that if we continue pumping carbon into the atmosphere at todayrsquos rate this budget will be exhausted within

15ndash25 years (IPCC 2013) This means there will be growing political pressure on the fossil fuel industry to

keep most of its reserves in the ground That pressure has already begun around the world Citizens are pressing

their superannuation funds councils banks universities and other institutions to divest from fossil fuels with

growing success The year 2013 saw several major financial institutions recognise the financial and ethical

implications of continuing to finance fossil fuels with Norwegian Storebrand Rabobank and the World Bank

among those who made major announcements on divestment or cutting loans In 2014 major institutions

including Stanford University the Australian National University and Oxford University have divested their fossil

fuel funds (Advisors 2015) So far in 2015 local councils in Australia such as Moreland Newcastle Byron Bay

Melbourne and many more have also divested (Ryan 2015) Divestment is now going mainstream and will have

increasing impacts on fossil fuel company shares into the future

JOBS AFTER COAL A Just Transition for Queensland | 13

As a result of the momentum of the global divestment movement international stock exchanges are creating

new indexes to exclude fossil fuels in preparation of the impending seismic shift in global finances In late

April 2014 the worldrsquos largest fund manager Blackrock joined with the FTSE Group in London to create

a new index The ex-Fossil Fuels Index Series is an innovative set of benchmark indices that excludes

companies directly engaged in extracting so-called ldquostranded assetsrdquo in the hydrocarbons industry ldquoThis

is one of the fastest-moving debates I think Irsquove seen in my 30 years in marketsrdquo FTSE managing director

Kevin Bourne told the Financial Times (Clarke 2014) The Bank of England is now investigating its exposure

to risk from its fossil fuel investments To top that off the worldrsquos biggest sovereign wealth investment fund in

Norway has recently dumped coal investments (Carrington 2015) The largest contribution to climate change

from the fossil fuels in company inventories at present is from coal Because it has the largest climate impact

per unit of useful energy it is being targeted for early phase out

The book value of fossil fuel companies is determined not only by their current infrastructure and deposits

undergoing extraction but also by the size of their legally claimed reserves Because the book value of so

many companies has greatly exceeded their realisable value as emissions restrictions come into place a

speculative bubble has formed Unfortunately bubbles usually burst in the end leaving behind stranded

assets and stranded capitalmdashand leaving workers in the lurch The only alternative is a mature and planned

phase out of the industry that slowly devalues and deregisters fossil fuel reserves at a pace that does not lead

to financial crisis A planned phase out that gives time for just employment transitions for fossil fuel

communities

500

1000886

565

1500

2000

2500

3000

already burnt

remaining

2000ndash2050

2011ndash2050

Coal 2˚Global carbon

budget

Oil

Gas

GtC

O2

Global fossil fuel reserves

Figure 6 Carbontracker 2012 report The Carbon Bubble

14 | JOBS AFTER COAL A Just Transition for Queensland

In 2013 the report Unburnable Carbon highlighted that ldquoCompany valuation and credit ratings

methodologies do not typically inform investors about their exposure to these stranded assetsrdquo (Leaton

2013) This is very troubling when considering that the supporting share value of these reserves was $4

trillion in 2012 and that they serviced $127 trillion in outstanding corporate debt over the same period We

need to challenge these methodologies (Tracker 2015) In a move that signals a step towards the solutions

required the World Bank the European Investment Bank and the US Export-Import Bank have all announced

that they will not fund further coal-fired power plants except in exceptional circumstances As changes in

policy by the major coal consumers the uptake of renewables and the need to stay within the global carbon

budget begin to bite it is high-cost producers who will be squeezed first Australia is considered a high-cost

producer because of our strong industrial relations and wage laws which makes it all the more necessary that

our governments are vigilant and prepared for impending macroeconomic change (Cleary 2015)

SummaryThis is the environment in which the Australian coal industry finds itself Internationally coal is no longer

looking like a safe long-term investment within the context of the rapid changes afoot in the world The coal

industry leaders are either in denial about their industryrsquos future or are determined to squeeze as much profit

as possible until the cost gets worn by workers and their communities (Saunders 2015)

The issues of climate change demands for cleaner air and more efficient new technologies The realities of

the market are revealing coal as the sunset industry it really is This is not an industry Queenslanders can

rely on to create a stable resilient and sustainable economy It cannot be relied upon for future wealth

and future jobs We have been warned by the UN Climate Change Secretariatrsquos Executive Secretary that the

diversification and a managed transition away from coal is what we need to do and we need to heed this

warning (Australian 2015)

JOBS AFTER COAL A Just Transition for Queensland | 15

3 Assessing some of the economic opportunities in mining regions

IntroductionThe great state of Queensland is endowed with sustainable human and environmental resources that have the

potential if we choose to harness it to drive a balanced diverse and resilient economy for generations to

come Diversifying Queenslandrsquos economy to create sensible and stable prosperity beyond the boom and bust

vagaries of the mining industry must be a key objective of the Queensland Government The Newman LNP

Governmentrsquos Queensland Plan headline was lsquoforging diversity and prosperityrsquo (Government 2014) But

throughout Newmanrsquos reign as premier no action was taken Under the new Palaszczuk Labor Government

there has been some effort to support economic diversification across the state This is insufficient because as

of yet nothing has been done to adequately fund facilitate and empower the actual communities where

mining takes place The grassroots Labour Environmental Action Network an organisation within the

Australian Labour Party has called for change At the 2015 Queensland ALP State Conference they put

forward a motion that was passed calling on the state government to prepare a just transition policy before the

next conference (ALP 2015)

Grain harvest

16 | JOBS AFTER COAL A Just Transition for Queensland

Most importantly both major parties have continued their relentless support for further coal mine expansions

that inherently suffocate the process of diversification

With the coal industry forecast to be in a lsquostructural declinersquo by political leaders and bankers alike it is now

essential that the focus for economic development be on industries that can bring sustainable prosperity to

Queensland (Burrell 2014 Robins 2014) In the United Kingdom under Prime Minister Thatcher the world

witnessed the consequences of industries closing without planning and without investment to transition local

communities and industries

The following section of the report outlines how the opportunities for sustainable economic development

are already known Queensland has well-established sectors with bountiful potential in agriculture tourism

manufacturing and education It also has the opportunity to capitalise on a boom in renewable energy and

bio-industrial products to create more sustainable economic sectors These industries are ready to fill the

void that will be and is being left by coal however they lack the support needed to ensure their presence in

mining communities to provide a just transition away from coal where it is most needed

Agriculture and aquacultureCurrently the Queensland agricultural sector is worth near $147 billion and employs over 90000 people

(Queensland Government 2012) The sector has the potential to massively expand its food exports to Asia as

population and economic growth continue to surge in the dynamic economic region Through the competitive

advantage of our proximity to Asia and high-quality produce capabilities agricultural products have become

Queenslandrsquos second largest export earner and have the potential for continued growth (Heath 2014) By

increasing availability of farming technology driving productivity minimising costs and focusing on profitable

premium produce markets the Queensland Agricultural Strategy (2012) aims to double the total value of

production for all agricultural commodities by 2040 With innovative new farming approaches and ecosystem

system management strategies such increases in production are possible in a way which sustainably manages

and regenerates the land

To reduce pressure on fish stocks from home and abroad the promotion of aquaculture could be further

encouraged across the state This industry is worth $10 Million a year (Lucas DLGP 2011) At present

there are several sites located along the coast however research conducted over the last decade has

identified future sites for land based aquaculture Industry consultation aquaculture management training

programs and related issues in developing a workforce need to be considered (Plan 2012) The Queensland

Aquaculture Industry Federation sees the need for continued collaboration between government and other

stakeholders in order for this industry to reach itsrsquo potential as a strong core industry (Federation 2015)

The Department of Employment Economic Development and Innovation is leading the government drive to

JOBS AFTER COAL A Just Transition for Queensland | 17

develop the aquaculture industry This could see a future where aquaculture goes further than just meeting

domestic demand and grow to cater for high value export markets (Lucas DLGP 2011)

New opportunities in animal genetics aquaculture horticulture and bio-processing are driving agriculture

and aquaculture sector growth in new directions Both industries are about creating intergenerational

economic sustainability Choosing these industries that have unlimited potential to sustain our communities

and our ecosystems over mining is choosing long-term jobs over short-term jobs that cannot be passed on to

the next generation The bottom line is that we live in a hungry world and Queensland is well placed to be a

reliable and sustainable source of food to other nations without the agricultural potential we are endowed with

(Government 2014)

Tourism and recreational fishingDespite setbacks due to the high Australian dollar and loss of skilled workers to the mining boom the

tourism industry is still a critical part of the Queensland economy with massive future potential (Dr Tien Duc

Pham 2015) The tourism industry made a significant employment contribution providing 124000 jobs in

2010ndash11 with steady growth in international visitor nights (Deloitte Access Economics 2012) Queensland

has the potential to become a global leader in tourism and ecotourism and by doing so to create more

jobs and revenue (Government 2014) This will be possible similarly as in agriculture by promoting the

experiences available in our natural places and the quality hospitality we can provide to the growing Asian

middle class (Wilson 2013) The Chinese tourism market is seeking clean fresh and new experiences that

Queensland can cater to and is expected to be worth $74 billion by 2020 (Guterres 2014) Significant to

Queenslandrsquos potential in tourism is our ability to expand the tourism industry in the authentically Australian

rural and stunningly beautiful coastal mining communities where new economic activities are most needed

Further mining expansion in such places threatens to do to tourism what the growth in heavy industry did to

Gladstonersquos economic diversity where fishing and tourism are now non-existent

Although sustainably managed fisheries have the potential to provide continued economic prosperity to

Queensland there lies a major opportunity in net free fisheries to develop as tourism industries specifically

in coal mining regions A great recent example of this taking place is the newly established Net Free Zone

between from the Northern end of St Helens beach to Cape Hillsborough (Spelitis 2015) Along with three

other net free zones across the state the extent of the cumulative commercial opportunities for sustainable

tourism the net free zones have created has made it one of the three pillars as part of the 2020 vision for the

Queensland has the opportunity to develop an abundant and resilient agricultural industry that supports the transition to sustainable prosperity

18 | JOBS AFTER COAL A Just Transition for Queensland

Queensland Tourism Industry Council (Council 2015) The Mackay Isaac and Whitsunday (MIW) coal mining

region has excellent accessibility to a variety of fishing pursuits In addition to the new net free zone ther are

five fresh water stocked impoundment fisheries creating opportunities to promote lake beach offshore and

deepwater angling Improvement of accommodation facilities quality of jetties access roads and coordinating

fish trails with regional events could maximise visitation from recreational and tourism markets (Mackay

Tourism Tourism Queensland 2012) Charter fishing operatiors tackle stores campsites motels boat sales

boat building and maintenance all have the opportunity of benefitted from growth from the recreational fishing

tourism industry (Lucas DLGP 2012)

Higher educationOver the past decade millions of international students have visited Queensland for our quality tertiary

institutions and enjoyable lifestyle International education is Queenslandrsquos biggest service export with

nearly $2431 million being generated in 2013ndash14 alone (Australian Government 2014) The majority

of Queensland is strategically located in the latitudinal tropical zone where at a global level more than

50 of the worldrsquos population is forecasted to live by 2050 (Australian Government 2015) This makes

Queenslandrsquos universities well placed to develop the partnerships and research innovations tailored to the

challenges and opportunities of the new tropically-oriented world This will help Queensland and especially

North Queensland to attract increasing levels of international students to be part of our high-quality tropical

research institutions These students will increase spending through tourism support the creation of our own

skilled and globally connected workforce and connect Australia to business networks and opportunities across

the world In 2013ndash14 the Cairns region benefitted to the tune of $1375 million from international students

(McGuiggan 2014) With the right policies these benefits already being experienced primarily in Cairns

Townsville and Brisbane can be spread further across Queensland to make international education a strong

economic driver in transitioning mining communities

Bio-industrial productsAs the world moves away from fossil fuels the demand for cleaner more sustainable fuel sources will grow

(Emissions 2014) By using excess organic matter produced through food production to develop bio-industrial

products Queensland has the potential to export clean and sustainable fuels and bio-plastic materials to the

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Tourism is about experiences not extraction It has the potential to share Queensland beauty with the rest of the world and create sustainable local economies in the process

Queenslandrsquos greatest resource is the minds of its people We can share and co-create our innovations and learning with students from all over the world who want to make Queensland the launch pad for their careers

JOBS AFTER COAL A Just Transition for Queensland | 19

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Sorghum fields

20 | JOBS AFTER COAL A Just Transition for Queensland

Queensland is well placed to develop biofuel products from waste and oil crops such as Pongamia and algae

in addition to using the statersquos advanced sugarcane industry to convert excess cane using efficient cellulosic

processes Recent scientific developments in bio-plastics at the University of Queensland show that as a

state Queensland has the skills and ability to build a bio-industrial products industry that can contribute to a

sustainable economic future (Queensland 2015)

Renewable energyQueensland the sunshine state has enormous potential to generate electricity from the sun wind and waves

in addition to many other abundant renewable energy sources (Green 2012) Renewable energy has for a long

time been the catch cry from environmentalists as the complete solution to creating the jobs necessary to

replace the fossil fuel industry This report has been written partially to show recognition that as much as

renewable energy has the potential to create more jobs and replace fossil fuel domestic energy production it

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Gemasolar solar thermal power station Spain

JOBS AFTER COAL A Just Transition for Queensland | 21

cannot completely replace all of the coal

export industry jobs Numerous studies

show that with strong climate policies

over 7100 jobs can be created in

Queensland through renewable energy

by 2030 (Institute 2011) Thousands of

these jobs will be in regional

Queensland These should be prioritised

for regions where the mining industry

has developed rural communities in

need of new economic opportunities Far

North Queensland is especially suited to

further renewable energy investment

because of its climatic conditions and

because of the expensive transmissions

losses from having energy wired from

southern power sources (Allen 2011)

This makes it essential that government

policy ensures that the fair share of the

$35 billion in potential renewable

energy investment goes to rural mining

communities not only where it is most

needed economically but where it

makes the most business sense

(Department of Employment 2009)

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Queensland has the potential to become a smart sunshine state powered by clean and sustainable renewable energy By doing this we will be creating jobs in rural mining communities where they are needed most and building a foundation for a new sustainable economy

22 | JOBS AFTER COAL A Just Transition for Queensland

4 Community transitions Global case studies

There are communities around the worldwhich have reinvented themselves after the end of coal mining and

developed prosperous economies in doing so It has been a struggle but where there is a level of government

support inspired local leadership and the community is working together to regenerate its economy it has

been possible (Coal 2015) We are not suggesting any of these examples can be directly transferred to

Queensland communities facing the end of coal mining The object of these case studies is not to provide a

blueprint for Mackay Gladstone Rockhampton or mining towns in Central Queensland but to show the

diversity of ideas that have worked in other places that might stimulate our local communities to reinvent

themselves too

Hazelwood coal power station La Trobe Valley Vic

JOBS AFTER COAL A Just Transition for Queensland | 23

La Trobe ValleyIn the brown coal producing region of the La Trobe Valley in Victoria a grassroots transitionary force has been

underway for the past fifteen years Earthworker was set up by union and climate change activists seeking a

real alternative to coal and privately owned business models Earthworker Cooperativersquos mission is to create

jobs that respond to the lsquochallenges of climate change and the need for local job creation by facilitating the

establishment of worker-owned cooperatives hellip in sustainability-focused industriesrsquo (Earthworker 2015)

Their current focus is the establishment of a cooperative producing solar hot water systems in partnership

with an existing business called lsquoEverlast Hydro Systemsrsquo Their goal is to take production to Morwell in the

La Trobe Valley where workers are in need of an alternative to the coal industry The unique cooperative model

has made selling arrangement possible through inserting the option to buy a solar hot water system through

enterprise bargaining agreements

BanwenThe DOVE workshop in Banwen South Wales (Dove 2015) was started by agroup of women who during

the 1984ndash85 coal minersrsquo strike decided that community-based education was the most practical path to

regenerate the local economy Setting up shop in an abandoned mine office they developed a series of adult

education workshops for women Three decades later the DOVE building hosts a diverse set of small-scale

entrepreneurs including a daycare a library a community garden and a cafeacute featuring local foods

OrkneyOrkney like Central Queensland is a relatively isolated place with a scattered population Situated at the

top of Scotland two hours from the mainland by ferry Orcadians like Central Queenslanders often feel

like spectators to what goes on in the rest of their country They also feel vulnerable to central government

decisions and are often irritated by the lack of understanding of island life on the part of distant authoritiesmdash

its particular customs dialect and ways of doing things Since Norse times Orkney islanders burned peat (a

very young form of coal) as their primary fuel source but all the peat has been dug up This traditional way

of life where each farming family had its own peat bank and spent long summer days cutting and drying

peats while sharing picnics as children played is gone Another non-renewable energy source North Sea oil

discovered in the 1970s brought positive and negatives for the island It turned the tide of depopulation but

like the peat banks the oil is depleting and another lsquoend of an erarsquo is approaching Orcadians have woken up

to the fact that they canrsquot continue to hark back to the past and are confronting the issues of a future without

fossil fuels

Over the last three decades European community funding has helped Orkney to equip itself for the green

energy revolution Orkney now plays a global role in the evolution of wave and tidal technologies and

significant research and development work is creating new employment opportunities A high school in

Stromness was converted into the European Marine Energy Centre and is now a world leader providing

developers the opportunity to test full-scale prototypes in the sea The worldrsquos largest single-rotor tidal turbine

24 | JOBS AFTER COAL A Just Transition for Queensland

was the first in Scotland to be connected to the national grid from this centre Marine energy combined with

an expansion of wind turbines means that the island is now self-sufficient in electricity These renewable

energy developments have created jobs in the Orkneys in civil works and erection grid connection and

communications (Stuart 2011)

Investment in renewable energy and its associated RampD has attracted people to live work and study on the

island Islanders used to have to leave to get tertiary education but it is now possible to study for an MSc in

renewable energy at a Heriot Watt University campus in Stromness A new generation of Orcadians have grown

up to see renewable energy as the way of the future something quite ldquonormalrdquo which will provide greater

opportunities for their children to stay on the island with genuine prospects for employment in meaningful

jobs requiring a wide range of skills and qualifications This shows what a community in transition to a low

carbon future can look like

Nord-Pas De CalaisUntil 1986 the north-east region of France Nord-pas de Calais was a major coal mining area It still boasts

huge twin tailings mountains the largest in Europe which have become a tourist attraction It is known

to Australians for the war cemeteries associated with the battle of the Somme in WW1 but it has recently

undergone a remarkable transformation towards a truly sustainable economy Old coal mines at Lens have

been transformed into an art gallery displaying works from the Louvre collection in Paris Hundreds of people

are trained in energy efficiency solar energy and green architecture at a new training centre in nearby Loos-

en-Gohelle

The Chamber of Commerce invited economist and social visionary Jeremy Rifkin of the TIR Consulting

Group and his chief economist Skip Laitner to apply their model of the third industrial revolution to the

district (Riftkin 2015) Rifkinrsquos Third Industrial Revolution combines renewable energy energy efficiency

and the connectivity of the internet Buildings are energy generators and hydrogen is used as energy storage

After working with the community for some time the Master Plan was published in 2013 and envisages

that 100000 new jobs can be created by the transition plan (LLC 2013) Certainly the population has not

declined since mining days and has even slightly increased Inspired local leadership was the key in this

community plus some outside funding to help with the underpinning research

Appalachia (Kentucky)The transition process is just starting here but the community is very organised Kentuckians For The

Commonwealth has been battling the negative effects of coal mining for some decades and is now planning a

transition to ldquobuilding a better future beyond coalrdquo (Commonwealth 2015) Last year they held a conference

in Harlan Kentucky right in the middle of the Appalachian coal fields and invited guests from other US

regions in the same position as well as from Wales It is too soon to see what the outcome of their learning

process will be but they are another example of a community taking its future into its own handsmdashoptimistic

that there is a better future after coal

JOBS AFTER COAL A Just Transition for Queensland | 25

5 A just transition for coal mining communities policy recommendations

The opportunities to transition from unsustainable coal mining to prosperous communities with decent

employment will not just materialise by themselves It will need the political will and the right incentives to

ensure that communities are not left fending for themselves with unemployment increasing and families

in need of long-term welfare But not only is the political will not currently there both major political

parties continue to support the expansion of this sunset industry and by doing so are making the transition

challenges progressively more difficult (Denniss 2012) For too many years governments have uncritically

supported the coal mining sector Entire government departments have been focused on facilitating mining

with tax incentives weakening assessment and approval processes along with providing through tax payer

money established industrial infrastructure to support new projects Government policy often seeks to grow

royalties income by supporting the extraction of as much coal as possible as an escape the challenge of

finding other ways to increase state revenue New sustainable industries in coal communities will need just as

much if not more support while it gets started

We propose that communities local businesses workers unions community groups environment groups

local government and state and federal governments all need to be involved in planning a transition to

alternative forms of economic development and providing new jobs We call this a Just Transition (Anthea

Bill amp Evans1 2008 Brecher 2012) Just Transition is a framework for a fair and sustainable shift to a low

carbon economy proposed by trade unions and supported by environmental NGOs A Just Transition holds

that a shift to a lower carbon economy is vital to avoid dangerous climate change

Bimblebox Nature Refuge

26 | JOBS AFTER COAL A Just Transition for Queensland

Tough targets to cut greenhouse pollution supported by new environmental regulations and emerging carbon

markets will transform the global economy over the next decade These shifts will have major implications

for working people in energy supply industry and transport and for everyone as consumers There is a concern

that significant periods of economic restructuring in the past have often happened in a chaotic fashion

leaving ordinary workers along with their families and communities to bear the brunt of the transition to

new ways of producing wealth A just transition seeks to prevent such injustice becoming a feature of this

transition suggesting that it would not only be morally wrong and socially damaging but would undermine the

credibility of the transition itself and could slow or even halt the changes that must be made

It is through the challenges of communicating the urgency of climate change and other social and

environmental impacts that much of the debate about coal and its consequences for land water and the

climate has become unnecessarily adversarial and polarised Coal mining and power generation communities

deserve acknowledgement and appreciation for all that they have historically and currently contributed to

our country and our economy In communicating the economic shifts that are taking place and facilitating

the necessary transitions the Australian community needs to be respectful of the history and identity of coal

communities Environment groups government unions and the community need to initiate and engage in

the discussions about transitions in an open honest and compassionate manner Only by approaching the

transition in this way can the adversarial nature of the debate be broken down to make way for transformative

mutually respectful and holistic solutions

Whitsundays lsquoHave a Heart for the Reefrsquo

JOBS AFTER COAL A Just Transition for Queensland | 27

A just transition recognises that support for policies are conditional on a fair distribution of the costs and

benefits of those policies across the economy A just transition should also recognise that the creation of

opportunities for active engagement by those affected in determining the future wellbeing of themselves

and their families is essential for the long term empowerment of citizens and communities The following

recommendations have been written with the aim of emphasising such community empowerment as a priority

Recommendations

1) Establishing a unit within the State Government to support coal mining regions to transition to new economies

Specific institutions are needed to develop transition plans They need to have strong government support

and funding regional offices and representation from diverse stakeholders A dedicated unit within the

Department of Infrastructure Local Government and Planning could be established to oversee this work

They could work on the ground in the main coal mining communities to bring government expertise into

regional entities that would develop local plans that involve and empower the whole community This unit

or a connected unit would analyse existing barriers to the creation of competitive advantages for alternative

sustainable industries and would identify actions the State Government can take to support such creation

Any policy and support should come with clear conditions and timeframes These regional entities would

need generous budgets to assist local groups to develop their transition strategies to support research re-

training and the development of new business and community start-up initiatives based on the needs and

strategies of communities The key to communities becoming economically resilient is high levels of autonomy

and freedom in shaping their economic futures Research funding available to the regional entities will be

essential to the empowerment of local leadership Research funding should at least reach the OECD research

funding average and it should prioritise low carbon technologies and industry sectors with increased triple

bottom line sustainability potential

2) Support community leadership in diversifying local economies through the establishment of democratic regional entities

In each mining community a group of traditional and non-traditional community leaders willing to think

beyond lsquoBusiness as Usualrsquo to imagine a better future could be called together to work in collaboration with

and be resourced by the state government managed regional entities mentioned in recommendation one

The leaders would come from diverse backgrounds such as from local governments business associations

unions farming groups renewable energy businesses and educational institutions The objectives of these

leadership groups would be tailored to each community The objectives would in broad terms be to increase

employment in new diverse industries based on sustainable production and publicservice sector job creation

Expert facilitation alongside inclusive and democratic community engagement initiatives would be essential

to ensure the process and environment for creativity and innovation is maximised To develop such groups

it would be necessary to take stock of the existing resources skills and successful businesses on which a

new future can be built In addition an analysis of the social environmental and economic needs of the

28 | JOBS AFTER COAL A Just Transition for Queensland

community would also be beneficial These groups could then establish economic diversification projects

including value-added local production worker controlled co-operative enterprises and new community-

based enterprises that economically empower the local community Activities may also include support for

alternative industries in regard to process restructuring or subsidising the wages of workers displaced from

higher paying traditional industries

3) Support researching and communicating how the just transition can take place

Consistent research is needed on the best options to support the state and national economies to transition

This requires ongoing situational analysis of the global energy market shifts at both government levels In

addition each mining region will need assistance to research the number of jobs that are dependent on coal

the skills of those employed the level of local national and global long- and short-term risk to local mining

operations the transferability of jobs to other industries local opportunities for new enterprises and their

needs and the local educational and training needs and resources A key issue requiring research will be

around how the transitition scenarios differ depending on the level and relativity of thermal and coking coal

industries across coal mining communities The process for sourcing this information at a local and state

government level should be integrated into a policy feedback loop to support cyclical situational analysis and

policy adjustments from all levels of government This research should take place at the state level and be

encouraged at the industry and local level through grants

Mackay Central Queensland

JOBS AFTER COAL A Just Transition for Queensland | 29

4) Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

Many existing Queensland industries including those not highlighted in this report have the potential to

carry Queensland towards a new sustainable economy [sC5]mdashbut they will need support to do so Instead

of continuing to support and lower costs for the coal mining industry we need a plan to grow competitive

advantage across industries that have potential for sustainability and growth in regional mining communities

Along with industry and community organisations the State Government could organise a State Economic

Summit to assess existing industry clusters identify the potential of new and emerging industries consider

their competitiveness and key capabilities and identify barriers to increasing competitive advantage The

findings and recommendations from this Summit could be used to inform the work of the Unit established in

bullet point one above and the research outlined in bullet point two

5) Provide social protection of workers their families and incomes

If mines close suddenly workers need protection for their incomes and social services and possible relocation

even though many miners these days do not live in the communities where they mine Ideally these transition

plans would be developed early enough to ensure that new employment opportunities are in place for them

before mines actually close For many workers this is already too late but if the process begins now there will

be choices available for future retrenched coal workers who live in mining communities and regions Mining

companies could be incentivised andor penalised to give adequate notice to workers and other stakeholders

that closure may be impending and alternative economic opportunities need to be developed

6) Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

Involving the relevant unions in the planning of community transitions can enable them to move towards

becoming more proactive agents helping to plan the transition with critical networks and specific knowledge

about the needs of their members When a coal-fired power station in Washington State USA was scheduled

for closure for environmental reasons unions played a pivotal role persuading environmentalists and others

to delay the closure long enough for a Just Transition to provide different jobs for the workers This made it

possible for the coal resource to be replaced by wind and other renewable generation rather than natural

gasmdasha better environmental outcome and the unions became an active part in the phase out planning

Unions have a heavy workload defending workers rights and pay They need to be supported and financed to

play important roles in community transitions From facilitation and leadership of planning bodies career

planning and advice preferential hiring for displaced workers in the new alternative emerging industries and

leading the establishment of work controlled cooperatives unions have an essential role to play

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

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Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

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Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

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Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

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Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

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Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

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Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

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Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

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Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

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Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

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36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

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Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

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Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

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Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 5: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

JOBS AFTER COAL A Just Transition for Queensland | iii

Foreword

The coal industryrsquos impact on the state of Queensland has had its

peak and is now in decline This makes right now the most important

time to be thinking about not just stopping the industryrsquos destruction

of prime agricultural land but also how we build the alternatives for

regions where coal has become so economically dominant

There are so many opportunities for Queensland to move forward

We have a growing population diverse people and cultures abundant

natural resources that have the potential to be used sustainably and

we are so close to the new epicentre of change in the world in Asia

One finds it hard to imagine how the many social and economic opportunities our state has available

to us can be ignored how some leaders can still be so fixed in their intent to indefinitely expand the

coal mining industry when it is so clear the people of Queensland the people of Australia and the world

wants to move forward

This report is about the people of Queensland taking the initiative to communicate a positive new vision

of what our future economy and the journey to arrive there can look like It is the beginning of a new

chapter in the conversation about coal that has been getting closer and closer to being opened as more

people realise the devastating impacts the industry is having

Most of all this report is about justice not just for the planet but for workers and citizens who have done

nothing wrong to work in the coal industry It is about justice for workers who have been supporting our

economy supporting our towns our clubs and being part of our community Finally it is about justice for

the families in mining communities who deserve the support to help them plan their future beyond coal

It is the government and it is the mining corporations that have allowed these communities to be placed

in an increasingly risky situation However it is the responsibility of all of us to help them out of it and it

is now time to take that responsibility

Drew Hutton

President of the Lock the Gate Alliance

iv | JOBS AFTER COAL A Just Transition for Queensland

Executive summary

This report is calling for a Just Transition for coal communities in Queensland The term is not well known in

common Australian political rhetoric The lsquoJust Transitionrsquo term in this report is defined as a transition that

supports environmental policies with a fair distribution of the costs and benefits across the economy and

that support the creation of opportunities for active engagement by those affected to determine the future

wellbeing of themselves and their families

There is substantial international literature on the concept of a Just Transition Reports by and for Australian

Canadian and South African unions are just a sample of the literature diversity Many organisations by way

of example the Organisation for Economic Development and Cooperation the United Nations Environment

Program the International Labour Organisation the United Nations Framework Convention on Climate Change

and the World Wildlife Fund have produced literature on the matter

All over the world where communities have been largely dependent on a single unsustainable industry they have

throughout history been forced to transition Sometimes this is sudden unplanned and involves considerable pain

Most of which is felt by people working in those industries This unfortunately has been the experience so far in

Central Queensland with numerous mining companies cutting costs and forcing redundancies that have caused

families to leave the region The volatility of the Queensland coal industry has not been managed well by our either

colluding or timid state governments depending on which party is in power

Around the world there are stories we can look towards to find inspiration Some communities have reinvented

themselves creating new industries and jobs minimising the impacts on local people and establishing stronger

local economies We discuss some case studies in the report of communities which have achieved some

impressive results Inspiration can be found in the UK and South African movements to create One Million

Climate Jobs (Jobs 2015) Trade Unions have united with environmental organisations academics and other

civil society groups to write a blueprint for the creation and financing of 1 million low carbon long-term jobs in

each country Some of these initiatives include jobs in public transport in energy and in housing and jobs to

localise and secure food supply and protect water resources (Change 2010)

The market is telling us that coal is an energy source in decline Renewable energy investment is skyrocketing

air pollution controls are being stepped up around the globe and countries are preparing for much stronger

action on climate change As a major carbon exporting country Australia is in serious economic risk of being

caught in the midst of a rapidly hastening global energy transition Australia must develop energy and climate

strategies that are more in tune with international developments and capture the economic opportunities to

transition away from fossil fuels and towards renewable energy To do this we need strong leadership from

the business sector our communities and because of the speed and resources that will be required in this

transition our governments

JOBS AFTER COAL A Just Transition for Queensland | v

The Queensland government is under pressure from mining corporations and other stakeholders to keep the

coal industry going strong Faced with the challenge of creating an economic vision beyond coal our political

leaders have chosen for too long to capitulate to this pressure The coal industry is in denial about its terminal

decline The question community members are left to ponder is if the industry knew its days were counted

would it still try and squeeze as much support out of the government as possible To try to make as many

subsidised profits as it can before throwing in the towel We canrsquot wait and risk the livelihoods of citizens

in coal communities to find out The alternative for the people of Queensland and the Government is to

admit that the decline is terminal and stop delaying the re-orientation of policy and the economy to support

sustainable industries

Challenges faced by the different mining industry towns are quite different from one another As such the

planning of a just transition requires a diverse and adaptative strategic approach For example the challenges

the mining industry towns of Mackay and Rockhampton are facing are substantially different than the ones

the specifically mining operation towns of Moranbah and Blackwater are facing Different regions with

different levels of economic dependency on coal will require unique transitionary solutions and strategies

These different approaches needed are best understood by and will require leadership from the local

community to have the best chances of success

The economic and geographical difference between thermal and coking coal operations is another significant

complexity Often both coal types will be referred to as one homogenous industry by the media and politicians

This misguided referencing makes having a discussion about the different futures for each industry

difficult Coking coal has a substantially different outlook to thermal coal and needs to be discussed and

considered separately Policy supporting a just transition needs to carefully consider their uniqueness and the

implications this has for planning support resources and initiatives in different coal regions where each type

of coal has a different level of operational and economic intensity

The political conversation about a Just Transition has only just started to emerge Rumblings and whispers

of the actions and policies necessary within the environment and labour movements have been building

momentum Policies are being discussed and cooperatives are being launched throughout Australiarsquos coal

communities Significantly this issue is building important relationships between environment groups and

labour unions that have complimentary objectives within the Just Transition framework Their collaborations

are building a stronger and more cooperative civil society and strengthening the fabric of our democracy It is

hoped that this report will help contribute to this momentum so that some tangible and clear actions are seen

in the very near future

vi | JOBS AFTER COAL A Just Transition for Queensland

Key recommendations for the State Government of Queensland

1 Establishing a unit within the State Government to support coal mining regions to transition to new economies

The unit would

bull Work on the ground in coal mining communities to bring government expertise into regional entities

bull Analyse barriers to the creation of competitive advantages for alternative sustainable industries

bull Identify actions the State Government can take to support sustainable industries

bull Provide research funding to that prioritises low carbon technologies and industry sectors with increased triple bottom line sustainability potential

2 Support community leadership in diversifying local economies through the establishment of democratic regional entities that

bull Lead in the development of their communitiesrsquo transition strategies

bull Researching the transition opportunities and pathways for the community

bull Planning and initiating re-training programs for workers from affected industries

bull Facilitate support programs for new businesses cooperatives and social enterprises based on the needs and strategies of communities

bull To take stock of the existing resources skills and successful businesses on which a new future can be built

bull Run an analysis of the social environmental and economic needs of the community

bull Establish economic diversification projects including value-added local production worker controlled co-operative enterprises and new community-based enterprises

bull Work in collaboration with regional councils and economic development organisations

3 Support researching and communicating how the just transition can take place

bull Providing regular academic standard situational analysis of the global energy markets shifts to keep the public informed about energy market trajectories

bull Support regional entities to research the number of jobs that are dependent on coal the skills of those employed the level of local national and global long- and short-term risk to local mining operations the transferability of jobs to other industries local opportunities for new enterprises and their needs and the local educational and training needs and resources

bull Researching how the transition scenarios could differ depending on the level and relativity of thermal and coking coal industries across coal mining communities

JOBS AFTER COAL A Just Transition for Queensland | vii

4 Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

bull Develop a plan to grow competitive advantage across industries that have potential for sustainability and growth in regional mining communities

bull Organise a State Economic Summit to assess existing industry clusters identify the potential of new and emerging industries consider their competitiveness and key capabilities and identify barriers to increasing competitive advantage

5 Provide social protection of workers their families and incomes

bull Create individual mine employment transition plans in cooperation with mining companies and local communities ready for when mines cease operating

bull Penalising mining companies that do not give adequate notice of their closure or restructuring

bull Subsidising workers at a full living income level for a maximum of four years who do not have adequate employment available to them at the time of redundancy to undertake training for careers that support the establishment of the new economy in their community

6 Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

bull Support and finance Unions to play facilitating roles in community transitions

bull Engage Unions to

- Provide career planning and advice

- Negotiate preferential hiring for displaced workers in the new alternative emerging industries

- Lead the establishment of work controlled cooperatives

7 Provide training opportunities for coal workers and communities

bull Mandating coal mining companies to fund education and training for their workers that give them skills for other industries

bull Funding training programs to assist retrenched workers from the coal industry to attain continued retraining and re-education

viii | JOBS AFTER COAL A Just Transition for Queensland

8 Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

bull Bringing mine site rehabilitation standards in Queensland to global best practice

bull Mandate that mine sales are not made to companies without adequate capital to properly rehabilitate the mine site

bull Increasing mining security deposits to ensure that the full cost of third party mine site rehabilitation is progressively implemented and signed off by governments throughout the life of the mine

bull Ban the sale of mines where rehabilitation responsibilities are not complete or behind schedule

bull Support the nationally coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions described above and more detailed policy changes

9 Remove all subsidies and tax payer funded support to coal mining

bull Review and remove all hidden subsidies to the coal industry within the state government

10 Sound investment and resource revenue management

bull Commission an economic assessment of the possible economic mechanisms and changes to existing policies that could fund the above measures to the extent that will be necessary

bull Set aside a percentage of coal royalties for funding the diversification of coal mining regions

JOBS AFTER COAL A Just Transition for Queensland | 1

1 Coalrsquos current role in the Queensland economy

Coal in the Queensland economyOver the last 30 years the Queensland coal industry has grown substantially to become a significant part of

the Queensland economy and create employment in many regional areas The industry has been concentrated

in the Bowen and Surat Basins throughout rural western and central Queensland The boom for the industry

began in 2005ndash2006 when prices for coal rose by around 400 causing massive industry profits in the

2000s (Stanford 2014) Prices have fallen dramatically since the flow on effects of the global financial crisis

(GFC) slowed down Chinarsquos growth in 2011ndash2012 However prices have remained much higher than the

below US$40tonne that was averaged through the 90s and earlier (Quandlcom 2015)

Queensland coal train

2 | JOBS AFTER COAL A Just Transition for Queensland

Over the last five years since the GFC and later slow down in coal demand the total Queensland coal

production has after decades of growth levelled off at just over 200 million tonnes per annum (Figure 1)

0

50

100

150

200

250

2008ndash09 2009ndash10 2010ndash11 2011ndash12 2012ndash13

Mill

ion

tonn

es

Figure 1 Queensland Coal Production 2008ndash09 to 2012ndash13 Source Queensland Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13

Queensland uses 20 to 25 million tonnes of its mined coal for electricity generation each year (Government

2014) But the rest which is 85 to 90 of the mined coal is exported to countries all over the world and

mainly to Asia In 2013ndash14 33 of the production was thermal coal and 67 was for coking coal production

to make steel (Table 1) Both thermal and coking coal create greenhouse gas emissions when they are burnt

However contrary to government and media perceptions the coal industry is not the sole driving force

behind the Queensland economy As in most modern economies the service industry dominates with 60

of economic output followed by the construction industry with 10 manufacturing at 7 and agriculture

forestry and fishing at 3 (ABS 2014)

An overview of the Queensland coal industry would not be complete without an examination of its level of

foreign ownership By volume 80 of Queenslandrsquos coal production is foreign owned (Government 2013)

This means that a majority of the profits from the operations of these companies are being directed out of

Australia to international shareholders

JOBS AFTER COAL A Just Transition for Queensland | 3

Table 1 Queensland Coal Mining Areas Production and Types 2009ndash10 to 2013ndash14

2009ndash2010 2010ndash2011 2011ndash2012 2012ndash2013 2013ndash2014

Mines operating 56 57 58 59 59

Saleable production Open-cut

Northern 76 450 64 167 62 632 71 268 78 953

Central 63 319 52 637 56 032 63 871 73 801

Southern 39 339 37 423 45 010 43 709 43 651

Total (mt) 179 108 154 227 163 674 178 848 196 405

Underground

Northern 7 642 8 965 9 492 13 266 11 470

Central 18 968 16 642 15 082 14 511 18 433

Total (mt) 26 611 25 606 24 574 27 776 29 903

Coking coal total 125 178 108 731 117 000 131 328 151 571

Thermal coal total 80 540 71 103 71 247 75 296 74 737

State total 205 719 179 834 188 247 206 624 226 309

Source Queensland Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13

Abbot Point

4 | JOBS AFTER COAL A Just Transition for Queensland

Revenue and economic activity generated by the coal Industry

As a nation the coal industry is Australiarsquos second

largest export earner after the iron ore industry Last

year it generated $40 billion which equal to about

12 of export revenue (Cleary 2015) The coal

industry in Queensland will pay around $2 billion

which amounts to 80 of total mining royalties

to the state Government in 2014ndash15 (Campbell

2014) Coal royalties represent around 4 of

Queensland Government revenue (Vorrath 2014)

Similar amounts come from vehicle registrations

and interests on funds saved for superannuation

in addition to long service leave entitlements as

shown in Figure 2 Such figures are not large in the

financial context of running a state government

Despite this the taxation contribution of coal is

incorrectly perceived as significant

The large revenues derived from coal exports

is due to the massive volumes the industry has

reached in recent years Total revenue to the coal

industry from its mining operations amounts to

approximately $25 billion per year that is added

to the economy This is a significant contribution

to Queenslandrsquos economy but one that needs

to be viewed relative to the size of the economy

Queenslandrsquos economy produced output worth

$290 billion in 2012ndash13 meaning the coal

sector accounted for around 7 of production

by value as shown in Figure 3 (right)

Commonwealth grants

Other staterevenue

MV registration

3

4840

54Interest

Coal royalties

Figure 2 Queensland State Government Revenue SourcesSource Queensland Treasury (2014) Queensland State Budget 2014ndash15 Paper 2

Non-mining

Other

2

91

7

Coal

Figure 3 Queensland gross state product coal other mining and non-mining sectors 2012ndash13 Source ABS (2013) Catalogue 52200 Australian National Accounts State Accounts

Coal industry jobs and their locationsThere has been much debate recently as to the exact number of people employed by the coal mining industry

Industry figures have been disputed because of the industryrsquos continual representation and communication

of construction jobs as if they were permanent In addition the industry conspicuously classifies indirect

growth in employment within the local economy as jobs that mining development is responsible for creating

Although in regional mining communities mining employment is high it is relatively small on a statewide

JOBS AFTER COAL A Just Transition for Queensland | 5

level Most recently the industryrsquos employment claims were revealed again in the Australian Land Court

case regarding coal mining development by Indian mining company Adani in the Galilee Basin to have been

exaggerated (Cox 2015) Adanirsquos mine proposal cited the figure of 10000 jobs attached to its development

application but the court was told by Adanirsquos own expert witness that the mine development would only

create 1464 actual jobs throughout the ongoing operation of the mine (Branco 2015)

According to research by The Australia Institute a majority of Queenslanders believe that the mining industry

employs ten times the amount of people it actually does (Campbell 2014) In reality the report shows that

the coal industry only employs 12 of the Queensland workforce (Vorrath 2014) What is significant is how

this employee population is regionally distributed with a majority of the employees residing in the Central

Highlands Isaac and Mackay Regional Council areas (Figure 4)

0

5000

10000

15000

20000

25000

30000

Whitsu

nday

Suns

hine C

oast

Banan

a

Rockh

ampt

on

Brisba

ne

Cent

ral H

ighlan

dsIsa

ac

Macka

yTo

tal

Em

ploy

men

t

Figure 4 Coal jobs by Local Government Area (LGA) in Queensland Top 8Source ABS 2011 Census Coal mining jobs by region in Queensland

SummaryThe coal industry plays a significant role in the Queensland economy but it is by no means irreplaceable As

the next section will show the coal industry has fallen from the lofty heights of its unprecedented profitability

and aggressive hunger for expansion It has come to a slower pace but due to the forecasted change expected

to affect the industry a new approach to planning local economies beyond coal is required

6 | JOBS AFTER COAL A Just Transition for Queensland

2 The drivers of change in the coal industry

Drivers of change The global energy market is in a period of dynamic long-term structural change that will have ongoing

repercussions for energy exporting countries such as Australia Over the last ten years the expansion in gas

the decrease in renewable energy prices the increasing of capital infrastructure costs the demand for cleaner

energy and energy efficiency have all dramatically changed the nature of the global energy economy (Ben

Caldecott 2014)

Coal has been the energy source that has made so many technological advancements through history possible

Although there has been many struggles and social costs along the way The communities workers and

companies that made this progress possible have substantially contributed to the creation of the modern world

Though if there is one thing we know from history it is that empires rise and fall The coal empire is crumbling

As it crumbles it is creating unnecessary instability stress and hardship on communities In communities like

Mackay where income has dropped by 30ndash40 as many other small mining towns people and businesses have

been caught culturally and economically unprepared for this economic shift (Bleby 2013)

Windmill and wind farm

JOBS AFTER COAL A Just Transition for Queensland | 7

2 The drivers of change in the coal industry

Drivers of change The global energy market is in a period of dynamic long-term structural change that will have ongoing

repercussions for energy exporting countries such as Australia Over the last ten years the expansion in gas

the decrease in renewable energy prices the increasing of capital infrastructure costs the demand for cleaner

energy and energy efficiency have all dramatically changed the nature of the global energy economy (Ben

Caldecott 2014)

Coal has been the energy source that has made so many technological advancements through history possible

Although there has been many struggles and social costs along the way The communities workers and

companies that made this progress possible have substantially contributed to the creation of the modern world

Though if there is one thing we know from history it is that empires rise and fall The coal empire is crumbling

As it crumbles it is creating unnecessary instability stress and hardship on communities In communities like

Mackay where income has dropped by 30ndash40 as many other small mining towns people and businesses have

been caught culturally and economically unprepared for this economic shift (Bleby 2013)

It is clear that coal thermal coal especially is no longer good for humanity despite our former Prime Minister

Tony Abbottrsquos fervent belief that it is (Online 2014) WA Premier Colin Barnett heralded last year in his

declaration that coal is in lsquostructural declinersquo (Burrell 2014) He was not wrong In the past 5 years alone the

Dow Jones Total Coal Market index has fallen by 76 (Baker 2014)

The reality is that the world is rapidly shifting away from fossil fuels including countries that are key

importers of Australiarsquos coal and gas China India Japan and South Korea import over 80 of Australiarsquos

export market for coal and gas The reality is that these countries have recently either announced policies to

shift away from these fuels andor initiatives to drastically enhance renewable energy and energy efficiency

(ldquoPolitics of Climate Change in Asiardquo 2015)

The following section of the report analyses the risk of Australia not being prepared economically for changes

that are already taking place As a country and a state our governing political parties continue to pursue

a strategy that assumes our short and long term economic prosperity is dependent on mining Few of our

political leaders are attempting to communicate an economic vision free from the inevitable boom-bust cycles

created by extracting emissions-intensive resources It is also a strategy that assumes energy production and

distribution will continue on as a very centralised process rather than following the great trend of networked

and decentralised distribution that is shaping the 21st century (Riftkin 2015) This strategy is short-sighted

given recent announcements by China and India to phase out fossil fuels and move rapidly towards cleaner

and more distributed energy sources (Rohr 2014)

The international coal priceThe majority of Queenslandrsquos export coal mining industry is dependent on demand for steel making from

the worldrsquos coking or metallurgical coal market This is a market that has been severely impacted by a

combination of actions in China the biggest steel manufacturer in the world Primarily Chinarsquos housing

boom has been slowing down over recent years this in turn has massively reduced the need for steel Most

importantly China is also running a ldquowar on pollutionrdquo that is having direct short- and long-term impacts on

the viability of the coal industry as a whole This has resulted in a campaign of state enforced closures of coal

plants and steel mills especially near the countryrsquos big industrial coastal cities (Ng 2015)

Prices on the international coking coal stock market have plummeted from the all time high of US$330

tonne in late 2011 to a sobering low of US$109tonne in the first quarter of 2015 The outlook still remains

gloomy for the coal sector

With the continued slowdown in the global and Chinese economies the price of iron ore has also collapsed

Prices have dropped by one third in the first quarter of 2015 alone causing at least one Australian mine to

close operations and many others to cancel plans for expansions (Sandersen 2015) Iron ore is closely linked

to the sales of coking coal which is used most commonly to melt iron ore into steel

8 | JOBS AFTER COAL A Just Transition for Queensland

20

14

US

$t

0

100

200

300

400

2005 2007high quality high coking semi-soft coking

2009 2011 2013 2015

Figure 5 Coking Coal Prices 2005ndash2015 (worldcoalcom)

A similar price drop has hit thermal coal used in coal-fired power stations Thermal coal is mined in many

Surat Basin mines and is also found in some Bowen Basin mines where it is an addition to the high quality

coking coal found in the area Significantly the proposed mining development in the Galilee Basin is only

for thermal coal which at a time when coal-fired power stations are being replaced by cleaner options is

alarming (Pacific 2012) Thermal coal was priced at US$120tonne in late 2011 It had plunged to US$73

per tonne by February 2015 and has remained below US$60tonne since May 2015 Chinarsquos new rules of

cutting ash and sulphur content in seaborne coal imports along with increasing tariffs on coal imports has

meant that even Shenhua Chinarsquos biggest coal company cut coal imports in early 2015 (Jenda 2015)

Overall Chinese consumption dipped by 16 in 2014 despite their economic growth of 73

The decade of relentless and largely unplanned investment in Queensland coal mining in times of high prices

led to a massive oversupply against a background of decreasing demand The state and federal governments

failed to slow the industry down so that it did not overshoot an economically sustainable size This has made

the challenge of transitioning out of the industry even harder along with magnifying the pain now faced by

many mining towns (Neubauer 2015) All of this leaves a million-dollar question Is the downshift in [coal]

demand terminal According to Richard Gibbs from the Macquarie Bank it certainly is (Neubauer 2015)

The global coal market is also experiencing competition from renewables and shale gas slow growth and

government policies which are in part driven by the threat of climate change

The growing competition from renewable energy sources has been increasing its impact on the coal industry

by slowly but steadily eroding profits of domestic coal power stationsmdashand thus demand for coalmdashacross the

country (Hewson 2015) In Queensland the state government should be applauded for its 50 renewable

energy target by 2030 which will further add strain to struggling coal power generators (Parkinson 2015)

A more than 50 decline in coal prices has seen most listed coal companies globally to lose 80ndash90 of their

equity market value in the last four years (Buckley 2014) In 2014 the world added more energy generation

capacity from wind power than from coal Overall Europe and America have already cut coal-fired generation

JOBS AFTER COAL A Just Transition for Queensland | 9

capacity by over a fifth in a decade The sun will undoubtedly rise even further for renewable energy in 2015

but for coal there remains a lot further to fallrdquo said a report by the Institute for Energy Economics and

Financial Analysis in January 2015 (Buckley 2015a)

This statement is borne out by the facts

bull In 2014 new global wind installations grew 40 to 46GW led by China and America (Buckley

2015b)

bull In 2014 the US solar installation sector created almost 50 more jobs than the oil and gas pipeline

construction industry (Foundation 2015)

bull From 2000 to 2011 global annual growth in the yearly global installation rate of photovoltaic solar

panels was 40 In 2011 the total amount of global PV capacity installed was 27GW an astonishing

60 growth on 2010 levels (Green 2012)

bull Unsubsidised renewable energy is now cheaper than new coal-fired power in Australia (Paton 2013)

Solar installation

10 | JOBS AFTER COAL A Just Transition for Queensland

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

Coal power station

JOBS AFTER COAL A Just Transition for Queensland | 11

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

The outlook for coal pricesWhile some consider the outlook for coal prices as cyclical in nature and that a turnaround will increases

prices for coal other analysts believe this downward trend based on policies health impacts and concern

about global warming is here to stay

Financial reports from the major mining companies in Australia paint a grim outlook for global metallurgical

coal prices China was once the great hope for coking coal exporters but BHP Billitonrsquos metallurgical coal

market outlook (May 2013) indicated a flattening demand into the future (Billiton 2013 Rohr 2014)

BHP Billiton has warned that the increased usage of scrap metal in furnaces would result in lower growth in

demand for pig iron while greater production from electric arc furnacesmdashwhich use little or no coking coalmdash

are expected to ldquocontribute a significant share of total Chinese steel production by 2030rdquo Although coking

coal will likely remain necessary for steel production for some time as renewable energy sources grow the

efficiency and lower emissions intensity of electric arc furnaces will help them to outcompete coking coal in

the not too distant future Some experts even predict another technology called lsquodirect reduced ironrsquo that uses

gas to make steel could make coking coal redundant within a decade (Macleod 2013)

It is not just China BHP Billiton also cautions that the Indian steel outlook is less certain as steel production

growth has been slower than expected Prices for commodities from iron ore to coal are sinking as Chinarsquos

leadership tries to steer the economy away from debt-fueled property investment and smokestack industries

embracing services and domestic-led consumption At the same time President Xi Jinping is stepping up efforts

to combat pollution The provincial government of Beijing and a number of other major cities have made plans to

ban coal use by 2020 further putting the squeeze on all types of heavy industry (Coulter 2015)

However the outlook is not all dismal for coal everywhere In India demand is expected to continue to rise

without peaking until the 2030s Indiarsquos government predicts a 19 rise in coal imports this year which

may offer very short-term opportunities for Australian miners The opportunities are short term because these

import increases are something the Indian government has indicated it does not want continued into the

future Indiarsquos plan is to ramp up renewable energy technology as well as develop their untapped coal fields

to support a gradual phase out of thermal-coal imports within the next 2ndash3 years (Baker 2014) Regardless

the Indian mining giant Adani still hopes it can get coal from its proposed Carmichael mine in the Galilee

Basin and export it to India for the duration of its 60 year life span After a number of international banks

have ruled out funding for the Carmichael coal mine Adani has been looking for cash handouts from the

Australian Government to fund its shaky proposal However sanity has prevailed and these have been ruled

out by the new Prime Minister (Edis 2015) It is clear the Indian governmentrsquos plan for Indiarsquos future coal

supply sources does not involve Australian coal

12 | JOBS AFTER COAL A Just Transition for Queensland

This is the marketplace in which Australiarsquos exported coal competes and this is the marketplace that holds the

livelihoods of workers and communities in its hands The current state and future outlook of the coal industry

suggests that it would be risky not to scale down the thermal coal industry and at least restrict any new mine

expansions in the coking coal sector There are those who remain positive about the industryrsquos future but

recent events in the coal industry and uncertainty over medium and long term suggest that there are better

industries to back Behind these diverse risks threatening the coal industry is the inescapable scientific

fact that we cannot afford to burn any more coal from new coal mines if we want to decrease the risk of our

already fifty fifty chance of avoiding the worst impacts of global warming (IPCC 2013) If we wanted to try

and remove the total risk of runaway climate change we could not even afford to burn the coal that are sitting

in trucks on trains at port yards and in ships Not even the coal travelling on conveyors into power station

furnaces about to be burnt right this very moment

The carbon bubbleFrom the South Sea Bubble as well as the housing and dotcom bubbles of the last decade periodic over-

investment has been made into sectors deemed too important to fail The rush and hubris of investors seeking

incomparable profits to finance such industries has led to speculative bubbles of over-estimated value that

eventually burst In the economic fallout that results working people carry the burden while the speculators

and profiteers generally are not held accountable Another speculative bubble has formed and it dwarfs the

size of all of the bubbles that have come before it It is called the Carbon Bubble (Tracker 2015)

One of the few things world leaders agreed upon at the Copenhagen climate talks was that the Earth needs to

stay below 2degC warming to minimize the risk of runaway climate change

bull If we are to avoid going over 2degC we can emit only 565 more gigatonnes of carbon dioxide (IPCC 2007)

bull Burning the fossil fuel that corporations now have in their reserves would result in emitting 2795

gigatonnes of carbon dioxidemdashfive times the safe amount (Leaton 2013)

The Intergovernmental Panel on Climate Change has now produced its own carbon budget They have calculated

that if we continue pumping carbon into the atmosphere at todayrsquos rate this budget will be exhausted within

15ndash25 years (IPCC 2013) This means there will be growing political pressure on the fossil fuel industry to

keep most of its reserves in the ground That pressure has already begun around the world Citizens are pressing

their superannuation funds councils banks universities and other institutions to divest from fossil fuels with

growing success The year 2013 saw several major financial institutions recognise the financial and ethical

implications of continuing to finance fossil fuels with Norwegian Storebrand Rabobank and the World Bank

among those who made major announcements on divestment or cutting loans In 2014 major institutions

including Stanford University the Australian National University and Oxford University have divested their fossil

fuel funds (Advisors 2015) So far in 2015 local councils in Australia such as Moreland Newcastle Byron Bay

Melbourne and many more have also divested (Ryan 2015) Divestment is now going mainstream and will have

increasing impacts on fossil fuel company shares into the future

JOBS AFTER COAL A Just Transition for Queensland | 13

As a result of the momentum of the global divestment movement international stock exchanges are creating

new indexes to exclude fossil fuels in preparation of the impending seismic shift in global finances In late

April 2014 the worldrsquos largest fund manager Blackrock joined with the FTSE Group in London to create

a new index The ex-Fossil Fuels Index Series is an innovative set of benchmark indices that excludes

companies directly engaged in extracting so-called ldquostranded assetsrdquo in the hydrocarbons industry ldquoThis

is one of the fastest-moving debates I think Irsquove seen in my 30 years in marketsrdquo FTSE managing director

Kevin Bourne told the Financial Times (Clarke 2014) The Bank of England is now investigating its exposure

to risk from its fossil fuel investments To top that off the worldrsquos biggest sovereign wealth investment fund in

Norway has recently dumped coal investments (Carrington 2015) The largest contribution to climate change

from the fossil fuels in company inventories at present is from coal Because it has the largest climate impact

per unit of useful energy it is being targeted for early phase out

The book value of fossil fuel companies is determined not only by their current infrastructure and deposits

undergoing extraction but also by the size of their legally claimed reserves Because the book value of so

many companies has greatly exceeded their realisable value as emissions restrictions come into place a

speculative bubble has formed Unfortunately bubbles usually burst in the end leaving behind stranded

assets and stranded capitalmdashand leaving workers in the lurch The only alternative is a mature and planned

phase out of the industry that slowly devalues and deregisters fossil fuel reserves at a pace that does not lead

to financial crisis A planned phase out that gives time for just employment transitions for fossil fuel

communities

500

1000886

565

1500

2000

2500

3000

already burnt

remaining

2000ndash2050

2011ndash2050

Coal 2˚Global carbon

budget

Oil

Gas

GtC

O2

Global fossil fuel reserves

Figure 6 Carbontracker 2012 report The Carbon Bubble

14 | JOBS AFTER COAL A Just Transition for Queensland

In 2013 the report Unburnable Carbon highlighted that ldquoCompany valuation and credit ratings

methodologies do not typically inform investors about their exposure to these stranded assetsrdquo (Leaton

2013) This is very troubling when considering that the supporting share value of these reserves was $4

trillion in 2012 and that they serviced $127 trillion in outstanding corporate debt over the same period We

need to challenge these methodologies (Tracker 2015) In a move that signals a step towards the solutions

required the World Bank the European Investment Bank and the US Export-Import Bank have all announced

that they will not fund further coal-fired power plants except in exceptional circumstances As changes in

policy by the major coal consumers the uptake of renewables and the need to stay within the global carbon

budget begin to bite it is high-cost producers who will be squeezed first Australia is considered a high-cost

producer because of our strong industrial relations and wage laws which makes it all the more necessary that

our governments are vigilant and prepared for impending macroeconomic change (Cleary 2015)

SummaryThis is the environment in which the Australian coal industry finds itself Internationally coal is no longer

looking like a safe long-term investment within the context of the rapid changes afoot in the world The coal

industry leaders are either in denial about their industryrsquos future or are determined to squeeze as much profit

as possible until the cost gets worn by workers and their communities (Saunders 2015)

The issues of climate change demands for cleaner air and more efficient new technologies The realities of

the market are revealing coal as the sunset industry it really is This is not an industry Queenslanders can

rely on to create a stable resilient and sustainable economy It cannot be relied upon for future wealth

and future jobs We have been warned by the UN Climate Change Secretariatrsquos Executive Secretary that the

diversification and a managed transition away from coal is what we need to do and we need to heed this

warning (Australian 2015)

JOBS AFTER COAL A Just Transition for Queensland | 15

3 Assessing some of the economic opportunities in mining regions

IntroductionThe great state of Queensland is endowed with sustainable human and environmental resources that have the

potential if we choose to harness it to drive a balanced diverse and resilient economy for generations to

come Diversifying Queenslandrsquos economy to create sensible and stable prosperity beyond the boom and bust

vagaries of the mining industry must be a key objective of the Queensland Government The Newman LNP

Governmentrsquos Queensland Plan headline was lsquoforging diversity and prosperityrsquo (Government 2014) But

throughout Newmanrsquos reign as premier no action was taken Under the new Palaszczuk Labor Government

there has been some effort to support economic diversification across the state This is insufficient because as

of yet nothing has been done to adequately fund facilitate and empower the actual communities where

mining takes place The grassroots Labour Environmental Action Network an organisation within the

Australian Labour Party has called for change At the 2015 Queensland ALP State Conference they put

forward a motion that was passed calling on the state government to prepare a just transition policy before the

next conference (ALP 2015)

Grain harvest

16 | JOBS AFTER COAL A Just Transition for Queensland

Most importantly both major parties have continued their relentless support for further coal mine expansions

that inherently suffocate the process of diversification

With the coal industry forecast to be in a lsquostructural declinersquo by political leaders and bankers alike it is now

essential that the focus for economic development be on industries that can bring sustainable prosperity to

Queensland (Burrell 2014 Robins 2014) In the United Kingdom under Prime Minister Thatcher the world

witnessed the consequences of industries closing without planning and without investment to transition local

communities and industries

The following section of the report outlines how the opportunities for sustainable economic development

are already known Queensland has well-established sectors with bountiful potential in agriculture tourism

manufacturing and education It also has the opportunity to capitalise on a boom in renewable energy and

bio-industrial products to create more sustainable economic sectors These industries are ready to fill the

void that will be and is being left by coal however they lack the support needed to ensure their presence in

mining communities to provide a just transition away from coal where it is most needed

Agriculture and aquacultureCurrently the Queensland agricultural sector is worth near $147 billion and employs over 90000 people

(Queensland Government 2012) The sector has the potential to massively expand its food exports to Asia as

population and economic growth continue to surge in the dynamic economic region Through the competitive

advantage of our proximity to Asia and high-quality produce capabilities agricultural products have become

Queenslandrsquos second largest export earner and have the potential for continued growth (Heath 2014) By

increasing availability of farming technology driving productivity minimising costs and focusing on profitable

premium produce markets the Queensland Agricultural Strategy (2012) aims to double the total value of

production for all agricultural commodities by 2040 With innovative new farming approaches and ecosystem

system management strategies such increases in production are possible in a way which sustainably manages

and regenerates the land

To reduce pressure on fish stocks from home and abroad the promotion of aquaculture could be further

encouraged across the state This industry is worth $10 Million a year (Lucas DLGP 2011) At present

there are several sites located along the coast however research conducted over the last decade has

identified future sites for land based aquaculture Industry consultation aquaculture management training

programs and related issues in developing a workforce need to be considered (Plan 2012) The Queensland

Aquaculture Industry Federation sees the need for continued collaboration between government and other

stakeholders in order for this industry to reach itsrsquo potential as a strong core industry (Federation 2015)

The Department of Employment Economic Development and Innovation is leading the government drive to

JOBS AFTER COAL A Just Transition for Queensland | 17

develop the aquaculture industry This could see a future where aquaculture goes further than just meeting

domestic demand and grow to cater for high value export markets (Lucas DLGP 2011)

New opportunities in animal genetics aquaculture horticulture and bio-processing are driving agriculture

and aquaculture sector growth in new directions Both industries are about creating intergenerational

economic sustainability Choosing these industries that have unlimited potential to sustain our communities

and our ecosystems over mining is choosing long-term jobs over short-term jobs that cannot be passed on to

the next generation The bottom line is that we live in a hungry world and Queensland is well placed to be a

reliable and sustainable source of food to other nations without the agricultural potential we are endowed with

(Government 2014)

Tourism and recreational fishingDespite setbacks due to the high Australian dollar and loss of skilled workers to the mining boom the

tourism industry is still a critical part of the Queensland economy with massive future potential (Dr Tien Duc

Pham 2015) The tourism industry made a significant employment contribution providing 124000 jobs in

2010ndash11 with steady growth in international visitor nights (Deloitte Access Economics 2012) Queensland

has the potential to become a global leader in tourism and ecotourism and by doing so to create more

jobs and revenue (Government 2014) This will be possible similarly as in agriculture by promoting the

experiences available in our natural places and the quality hospitality we can provide to the growing Asian

middle class (Wilson 2013) The Chinese tourism market is seeking clean fresh and new experiences that

Queensland can cater to and is expected to be worth $74 billion by 2020 (Guterres 2014) Significant to

Queenslandrsquos potential in tourism is our ability to expand the tourism industry in the authentically Australian

rural and stunningly beautiful coastal mining communities where new economic activities are most needed

Further mining expansion in such places threatens to do to tourism what the growth in heavy industry did to

Gladstonersquos economic diversity where fishing and tourism are now non-existent

Although sustainably managed fisheries have the potential to provide continued economic prosperity to

Queensland there lies a major opportunity in net free fisheries to develop as tourism industries specifically

in coal mining regions A great recent example of this taking place is the newly established Net Free Zone

between from the Northern end of St Helens beach to Cape Hillsborough (Spelitis 2015) Along with three

other net free zones across the state the extent of the cumulative commercial opportunities for sustainable

tourism the net free zones have created has made it one of the three pillars as part of the 2020 vision for the

Queensland has the opportunity to develop an abundant and resilient agricultural industry that supports the transition to sustainable prosperity

18 | JOBS AFTER COAL A Just Transition for Queensland

Queensland Tourism Industry Council (Council 2015) The Mackay Isaac and Whitsunday (MIW) coal mining

region has excellent accessibility to a variety of fishing pursuits In addition to the new net free zone ther are

five fresh water stocked impoundment fisheries creating opportunities to promote lake beach offshore and

deepwater angling Improvement of accommodation facilities quality of jetties access roads and coordinating

fish trails with regional events could maximise visitation from recreational and tourism markets (Mackay

Tourism Tourism Queensland 2012) Charter fishing operatiors tackle stores campsites motels boat sales

boat building and maintenance all have the opportunity of benefitted from growth from the recreational fishing

tourism industry (Lucas DLGP 2012)

Higher educationOver the past decade millions of international students have visited Queensland for our quality tertiary

institutions and enjoyable lifestyle International education is Queenslandrsquos biggest service export with

nearly $2431 million being generated in 2013ndash14 alone (Australian Government 2014) The majority

of Queensland is strategically located in the latitudinal tropical zone where at a global level more than

50 of the worldrsquos population is forecasted to live by 2050 (Australian Government 2015) This makes

Queenslandrsquos universities well placed to develop the partnerships and research innovations tailored to the

challenges and opportunities of the new tropically-oriented world This will help Queensland and especially

North Queensland to attract increasing levels of international students to be part of our high-quality tropical

research institutions These students will increase spending through tourism support the creation of our own

skilled and globally connected workforce and connect Australia to business networks and opportunities across

the world In 2013ndash14 the Cairns region benefitted to the tune of $1375 million from international students

(McGuiggan 2014) With the right policies these benefits already being experienced primarily in Cairns

Townsville and Brisbane can be spread further across Queensland to make international education a strong

economic driver in transitioning mining communities

Bio-industrial productsAs the world moves away from fossil fuels the demand for cleaner more sustainable fuel sources will grow

(Emissions 2014) By using excess organic matter produced through food production to develop bio-industrial

products Queensland has the potential to export clean and sustainable fuels and bio-plastic materials to the

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Tourism is about experiences not extraction It has the potential to share Queensland beauty with the rest of the world and create sustainable local economies in the process

Queenslandrsquos greatest resource is the minds of its people We can share and co-create our innovations and learning with students from all over the world who want to make Queensland the launch pad for their careers

JOBS AFTER COAL A Just Transition for Queensland | 19

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Sorghum fields

20 | JOBS AFTER COAL A Just Transition for Queensland

Queensland is well placed to develop biofuel products from waste and oil crops such as Pongamia and algae

in addition to using the statersquos advanced sugarcane industry to convert excess cane using efficient cellulosic

processes Recent scientific developments in bio-plastics at the University of Queensland show that as a

state Queensland has the skills and ability to build a bio-industrial products industry that can contribute to a

sustainable economic future (Queensland 2015)

Renewable energyQueensland the sunshine state has enormous potential to generate electricity from the sun wind and waves

in addition to many other abundant renewable energy sources (Green 2012) Renewable energy has for a long

time been the catch cry from environmentalists as the complete solution to creating the jobs necessary to

replace the fossil fuel industry This report has been written partially to show recognition that as much as

renewable energy has the potential to create more jobs and replace fossil fuel domestic energy production it

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Gemasolar solar thermal power station Spain

JOBS AFTER COAL A Just Transition for Queensland | 21

cannot completely replace all of the coal

export industry jobs Numerous studies

show that with strong climate policies

over 7100 jobs can be created in

Queensland through renewable energy

by 2030 (Institute 2011) Thousands of

these jobs will be in regional

Queensland These should be prioritised

for regions where the mining industry

has developed rural communities in

need of new economic opportunities Far

North Queensland is especially suited to

further renewable energy investment

because of its climatic conditions and

because of the expensive transmissions

losses from having energy wired from

southern power sources (Allen 2011)

This makes it essential that government

policy ensures that the fair share of the

$35 billion in potential renewable

energy investment goes to rural mining

communities not only where it is most

needed economically but where it

makes the most business sense

(Department of Employment 2009)

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Queensland has the potential to become a smart sunshine state powered by clean and sustainable renewable energy By doing this we will be creating jobs in rural mining communities where they are needed most and building a foundation for a new sustainable economy

22 | JOBS AFTER COAL A Just Transition for Queensland

4 Community transitions Global case studies

There are communities around the worldwhich have reinvented themselves after the end of coal mining and

developed prosperous economies in doing so It has been a struggle but where there is a level of government

support inspired local leadership and the community is working together to regenerate its economy it has

been possible (Coal 2015) We are not suggesting any of these examples can be directly transferred to

Queensland communities facing the end of coal mining The object of these case studies is not to provide a

blueprint for Mackay Gladstone Rockhampton or mining towns in Central Queensland but to show the

diversity of ideas that have worked in other places that might stimulate our local communities to reinvent

themselves too

Hazelwood coal power station La Trobe Valley Vic

JOBS AFTER COAL A Just Transition for Queensland | 23

La Trobe ValleyIn the brown coal producing region of the La Trobe Valley in Victoria a grassroots transitionary force has been

underway for the past fifteen years Earthworker was set up by union and climate change activists seeking a

real alternative to coal and privately owned business models Earthworker Cooperativersquos mission is to create

jobs that respond to the lsquochallenges of climate change and the need for local job creation by facilitating the

establishment of worker-owned cooperatives hellip in sustainability-focused industriesrsquo (Earthworker 2015)

Their current focus is the establishment of a cooperative producing solar hot water systems in partnership

with an existing business called lsquoEverlast Hydro Systemsrsquo Their goal is to take production to Morwell in the

La Trobe Valley where workers are in need of an alternative to the coal industry The unique cooperative model

has made selling arrangement possible through inserting the option to buy a solar hot water system through

enterprise bargaining agreements

BanwenThe DOVE workshop in Banwen South Wales (Dove 2015) was started by agroup of women who during

the 1984ndash85 coal minersrsquo strike decided that community-based education was the most practical path to

regenerate the local economy Setting up shop in an abandoned mine office they developed a series of adult

education workshops for women Three decades later the DOVE building hosts a diverse set of small-scale

entrepreneurs including a daycare a library a community garden and a cafeacute featuring local foods

OrkneyOrkney like Central Queensland is a relatively isolated place with a scattered population Situated at the

top of Scotland two hours from the mainland by ferry Orcadians like Central Queenslanders often feel

like spectators to what goes on in the rest of their country They also feel vulnerable to central government

decisions and are often irritated by the lack of understanding of island life on the part of distant authoritiesmdash

its particular customs dialect and ways of doing things Since Norse times Orkney islanders burned peat (a

very young form of coal) as their primary fuel source but all the peat has been dug up This traditional way

of life where each farming family had its own peat bank and spent long summer days cutting and drying

peats while sharing picnics as children played is gone Another non-renewable energy source North Sea oil

discovered in the 1970s brought positive and negatives for the island It turned the tide of depopulation but

like the peat banks the oil is depleting and another lsquoend of an erarsquo is approaching Orcadians have woken up

to the fact that they canrsquot continue to hark back to the past and are confronting the issues of a future without

fossil fuels

Over the last three decades European community funding has helped Orkney to equip itself for the green

energy revolution Orkney now plays a global role in the evolution of wave and tidal technologies and

significant research and development work is creating new employment opportunities A high school in

Stromness was converted into the European Marine Energy Centre and is now a world leader providing

developers the opportunity to test full-scale prototypes in the sea The worldrsquos largest single-rotor tidal turbine

24 | JOBS AFTER COAL A Just Transition for Queensland

was the first in Scotland to be connected to the national grid from this centre Marine energy combined with

an expansion of wind turbines means that the island is now self-sufficient in electricity These renewable

energy developments have created jobs in the Orkneys in civil works and erection grid connection and

communications (Stuart 2011)

Investment in renewable energy and its associated RampD has attracted people to live work and study on the

island Islanders used to have to leave to get tertiary education but it is now possible to study for an MSc in

renewable energy at a Heriot Watt University campus in Stromness A new generation of Orcadians have grown

up to see renewable energy as the way of the future something quite ldquonormalrdquo which will provide greater

opportunities for their children to stay on the island with genuine prospects for employment in meaningful

jobs requiring a wide range of skills and qualifications This shows what a community in transition to a low

carbon future can look like

Nord-Pas De CalaisUntil 1986 the north-east region of France Nord-pas de Calais was a major coal mining area It still boasts

huge twin tailings mountains the largest in Europe which have become a tourist attraction It is known

to Australians for the war cemeteries associated with the battle of the Somme in WW1 but it has recently

undergone a remarkable transformation towards a truly sustainable economy Old coal mines at Lens have

been transformed into an art gallery displaying works from the Louvre collection in Paris Hundreds of people

are trained in energy efficiency solar energy and green architecture at a new training centre in nearby Loos-

en-Gohelle

The Chamber of Commerce invited economist and social visionary Jeremy Rifkin of the TIR Consulting

Group and his chief economist Skip Laitner to apply their model of the third industrial revolution to the

district (Riftkin 2015) Rifkinrsquos Third Industrial Revolution combines renewable energy energy efficiency

and the connectivity of the internet Buildings are energy generators and hydrogen is used as energy storage

After working with the community for some time the Master Plan was published in 2013 and envisages

that 100000 new jobs can be created by the transition plan (LLC 2013) Certainly the population has not

declined since mining days and has even slightly increased Inspired local leadership was the key in this

community plus some outside funding to help with the underpinning research

Appalachia (Kentucky)The transition process is just starting here but the community is very organised Kentuckians For The

Commonwealth has been battling the negative effects of coal mining for some decades and is now planning a

transition to ldquobuilding a better future beyond coalrdquo (Commonwealth 2015) Last year they held a conference

in Harlan Kentucky right in the middle of the Appalachian coal fields and invited guests from other US

regions in the same position as well as from Wales It is too soon to see what the outcome of their learning

process will be but they are another example of a community taking its future into its own handsmdashoptimistic

that there is a better future after coal

JOBS AFTER COAL A Just Transition for Queensland | 25

5 A just transition for coal mining communities policy recommendations

The opportunities to transition from unsustainable coal mining to prosperous communities with decent

employment will not just materialise by themselves It will need the political will and the right incentives to

ensure that communities are not left fending for themselves with unemployment increasing and families

in need of long-term welfare But not only is the political will not currently there both major political

parties continue to support the expansion of this sunset industry and by doing so are making the transition

challenges progressively more difficult (Denniss 2012) For too many years governments have uncritically

supported the coal mining sector Entire government departments have been focused on facilitating mining

with tax incentives weakening assessment and approval processes along with providing through tax payer

money established industrial infrastructure to support new projects Government policy often seeks to grow

royalties income by supporting the extraction of as much coal as possible as an escape the challenge of

finding other ways to increase state revenue New sustainable industries in coal communities will need just as

much if not more support while it gets started

We propose that communities local businesses workers unions community groups environment groups

local government and state and federal governments all need to be involved in planning a transition to

alternative forms of economic development and providing new jobs We call this a Just Transition (Anthea

Bill amp Evans1 2008 Brecher 2012) Just Transition is a framework for a fair and sustainable shift to a low

carbon economy proposed by trade unions and supported by environmental NGOs A Just Transition holds

that a shift to a lower carbon economy is vital to avoid dangerous climate change

Bimblebox Nature Refuge

26 | JOBS AFTER COAL A Just Transition for Queensland

Tough targets to cut greenhouse pollution supported by new environmental regulations and emerging carbon

markets will transform the global economy over the next decade These shifts will have major implications

for working people in energy supply industry and transport and for everyone as consumers There is a concern

that significant periods of economic restructuring in the past have often happened in a chaotic fashion

leaving ordinary workers along with their families and communities to bear the brunt of the transition to

new ways of producing wealth A just transition seeks to prevent such injustice becoming a feature of this

transition suggesting that it would not only be morally wrong and socially damaging but would undermine the

credibility of the transition itself and could slow or even halt the changes that must be made

It is through the challenges of communicating the urgency of climate change and other social and

environmental impacts that much of the debate about coal and its consequences for land water and the

climate has become unnecessarily adversarial and polarised Coal mining and power generation communities

deserve acknowledgement and appreciation for all that they have historically and currently contributed to

our country and our economy In communicating the economic shifts that are taking place and facilitating

the necessary transitions the Australian community needs to be respectful of the history and identity of coal

communities Environment groups government unions and the community need to initiate and engage in

the discussions about transitions in an open honest and compassionate manner Only by approaching the

transition in this way can the adversarial nature of the debate be broken down to make way for transformative

mutually respectful and holistic solutions

Whitsundays lsquoHave a Heart for the Reefrsquo

JOBS AFTER COAL A Just Transition for Queensland | 27

A just transition recognises that support for policies are conditional on a fair distribution of the costs and

benefits of those policies across the economy A just transition should also recognise that the creation of

opportunities for active engagement by those affected in determining the future wellbeing of themselves

and their families is essential for the long term empowerment of citizens and communities The following

recommendations have been written with the aim of emphasising such community empowerment as a priority

Recommendations

1) Establishing a unit within the State Government to support coal mining regions to transition to new economies

Specific institutions are needed to develop transition plans They need to have strong government support

and funding regional offices and representation from diverse stakeholders A dedicated unit within the

Department of Infrastructure Local Government and Planning could be established to oversee this work

They could work on the ground in the main coal mining communities to bring government expertise into

regional entities that would develop local plans that involve and empower the whole community This unit

or a connected unit would analyse existing barriers to the creation of competitive advantages for alternative

sustainable industries and would identify actions the State Government can take to support such creation

Any policy and support should come with clear conditions and timeframes These regional entities would

need generous budgets to assist local groups to develop their transition strategies to support research re-

training and the development of new business and community start-up initiatives based on the needs and

strategies of communities The key to communities becoming economically resilient is high levels of autonomy

and freedom in shaping their economic futures Research funding available to the regional entities will be

essential to the empowerment of local leadership Research funding should at least reach the OECD research

funding average and it should prioritise low carbon technologies and industry sectors with increased triple

bottom line sustainability potential

2) Support community leadership in diversifying local economies through the establishment of democratic regional entities

In each mining community a group of traditional and non-traditional community leaders willing to think

beyond lsquoBusiness as Usualrsquo to imagine a better future could be called together to work in collaboration with

and be resourced by the state government managed regional entities mentioned in recommendation one

The leaders would come from diverse backgrounds such as from local governments business associations

unions farming groups renewable energy businesses and educational institutions The objectives of these

leadership groups would be tailored to each community The objectives would in broad terms be to increase

employment in new diverse industries based on sustainable production and publicservice sector job creation

Expert facilitation alongside inclusive and democratic community engagement initiatives would be essential

to ensure the process and environment for creativity and innovation is maximised To develop such groups

it would be necessary to take stock of the existing resources skills and successful businesses on which a

new future can be built In addition an analysis of the social environmental and economic needs of the

28 | JOBS AFTER COAL A Just Transition for Queensland

community would also be beneficial These groups could then establish economic diversification projects

including value-added local production worker controlled co-operative enterprises and new community-

based enterprises that economically empower the local community Activities may also include support for

alternative industries in regard to process restructuring or subsidising the wages of workers displaced from

higher paying traditional industries

3) Support researching and communicating how the just transition can take place

Consistent research is needed on the best options to support the state and national economies to transition

This requires ongoing situational analysis of the global energy market shifts at both government levels In

addition each mining region will need assistance to research the number of jobs that are dependent on coal

the skills of those employed the level of local national and global long- and short-term risk to local mining

operations the transferability of jobs to other industries local opportunities for new enterprises and their

needs and the local educational and training needs and resources A key issue requiring research will be

around how the transitition scenarios differ depending on the level and relativity of thermal and coking coal

industries across coal mining communities The process for sourcing this information at a local and state

government level should be integrated into a policy feedback loop to support cyclical situational analysis and

policy adjustments from all levels of government This research should take place at the state level and be

encouraged at the industry and local level through grants

Mackay Central Queensland

JOBS AFTER COAL A Just Transition for Queensland | 29

4) Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

Many existing Queensland industries including those not highlighted in this report have the potential to

carry Queensland towards a new sustainable economy [sC5]mdashbut they will need support to do so Instead

of continuing to support and lower costs for the coal mining industry we need a plan to grow competitive

advantage across industries that have potential for sustainability and growth in regional mining communities

Along with industry and community organisations the State Government could organise a State Economic

Summit to assess existing industry clusters identify the potential of new and emerging industries consider

their competitiveness and key capabilities and identify barriers to increasing competitive advantage The

findings and recommendations from this Summit could be used to inform the work of the Unit established in

bullet point one above and the research outlined in bullet point two

5) Provide social protection of workers their families and incomes

If mines close suddenly workers need protection for their incomes and social services and possible relocation

even though many miners these days do not live in the communities where they mine Ideally these transition

plans would be developed early enough to ensure that new employment opportunities are in place for them

before mines actually close For many workers this is already too late but if the process begins now there will

be choices available for future retrenched coal workers who live in mining communities and regions Mining

companies could be incentivised andor penalised to give adequate notice to workers and other stakeholders

that closure may be impending and alternative economic opportunities need to be developed

6) Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

Involving the relevant unions in the planning of community transitions can enable them to move towards

becoming more proactive agents helping to plan the transition with critical networks and specific knowledge

about the needs of their members When a coal-fired power station in Washington State USA was scheduled

for closure for environmental reasons unions played a pivotal role persuading environmentalists and others

to delay the closure long enough for a Just Transition to provide different jobs for the workers This made it

possible for the coal resource to be replaced by wind and other renewable generation rather than natural

gasmdasha better environmental outcome and the unions became an active part in the phase out planning

Unions have a heavy workload defending workers rights and pay They need to be supported and financed to

play important roles in community transitions From facilitation and leadership of planning bodies career

planning and advice preferential hiring for displaced workers in the new alternative emerging industries and

leading the establishment of work controlled cooperatives unions have an essential role to play

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

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After Coal (2015) Community Regeneration West Virginia United States httpaftercoalcomengage-your-community Retrieved 10th of November 2015

Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

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Australian Bureau of Statistics (2015) MackaymdashCensus Employment by IndustrymdashTime Series Australian Government Department of Employment Retrieved 10th of November 2015

Australian Government Department for Education and Training (2015) Draft National Strategy for International Education Canberra Australian Capital Territory Retrieved 10th of November 2015

Australian Government (2014) Export income to Australia from international education activity in 2013ndash14 Canberra Australia Retrieved 10th of November 2015

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Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

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Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

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Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

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The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 6: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

iv | JOBS AFTER COAL A Just Transition for Queensland

Executive summary

This report is calling for a Just Transition for coal communities in Queensland The term is not well known in

common Australian political rhetoric The lsquoJust Transitionrsquo term in this report is defined as a transition that

supports environmental policies with a fair distribution of the costs and benefits across the economy and

that support the creation of opportunities for active engagement by those affected to determine the future

wellbeing of themselves and their families

There is substantial international literature on the concept of a Just Transition Reports by and for Australian

Canadian and South African unions are just a sample of the literature diversity Many organisations by way

of example the Organisation for Economic Development and Cooperation the United Nations Environment

Program the International Labour Organisation the United Nations Framework Convention on Climate Change

and the World Wildlife Fund have produced literature on the matter

All over the world where communities have been largely dependent on a single unsustainable industry they have

throughout history been forced to transition Sometimes this is sudden unplanned and involves considerable pain

Most of which is felt by people working in those industries This unfortunately has been the experience so far in

Central Queensland with numerous mining companies cutting costs and forcing redundancies that have caused

families to leave the region The volatility of the Queensland coal industry has not been managed well by our either

colluding or timid state governments depending on which party is in power

Around the world there are stories we can look towards to find inspiration Some communities have reinvented

themselves creating new industries and jobs minimising the impacts on local people and establishing stronger

local economies We discuss some case studies in the report of communities which have achieved some

impressive results Inspiration can be found in the UK and South African movements to create One Million

Climate Jobs (Jobs 2015) Trade Unions have united with environmental organisations academics and other

civil society groups to write a blueprint for the creation and financing of 1 million low carbon long-term jobs in

each country Some of these initiatives include jobs in public transport in energy and in housing and jobs to

localise and secure food supply and protect water resources (Change 2010)

The market is telling us that coal is an energy source in decline Renewable energy investment is skyrocketing

air pollution controls are being stepped up around the globe and countries are preparing for much stronger

action on climate change As a major carbon exporting country Australia is in serious economic risk of being

caught in the midst of a rapidly hastening global energy transition Australia must develop energy and climate

strategies that are more in tune with international developments and capture the economic opportunities to

transition away from fossil fuels and towards renewable energy To do this we need strong leadership from

the business sector our communities and because of the speed and resources that will be required in this

transition our governments

JOBS AFTER COAL A Just Transition for Queensland | v

The Queensland government is under pressure from mining corporations and other stakeholders to keep the

coal industry going strong Faced with the challenge of creating an economic vision beyond coal our political

leaders have chosen for too long to capitulate to this pressure The coal industry is in denial about its terminal

decline The question community members are left to ponder is if the industry knew its days were counted

would it still try and squeeze as much support out of the government as possible To try to make as many

subsidised profits as it can before throwing in the towel We canrsquot wait and risk the livelihoods of citizens

in coal communities to find out The alternative for the people of Queensland and the Government is to

admit that the decline is terminal and stop delaying the re-orientation of policy and the economy to support

sustainable industries

Challenges faced by the different mining industry towns are quite different from one another As such the

planning of a just transition requires a diverse and adaptative strategic approach For example the challenges

the mining industry towns of Mackay and Rockhampton are facing are substantially different than the ones

the specifically mining operation towns of Moranbah and Blackwater are facing Different regions with

different levels of economic dependency on coal will require unique transitionary solutions and strategies

These different approaches needed are best understood by and will require leadership from the local

community to have the best chances of success

The economic and geographical difference between thermal and coking coal operations is another significant

complexity Often both coal types will be referred to as one homogenous industry by the media and politicians

This misguided referencing makes having a discussion about the different futures for each industry

difficult Coking coal has a substantially different outlook to thermal coal and needs to be discussed and

considered separately Policy supporting a just transition needs to carefully consider their uniqueness and the

implications this has for planning support resources and initiatives in different coal regions where each type

of coal has a different level of operational and economic intensity

The political conversation about a Just Transition has only just started to emerge Rumblings and whispers

of the actions and policies necessary within the environment and labour movements have been building

momentum Policies are being discussed and cooperatives are being launched throughout Australiarsquos coal

communities Significantly this issue is building important relationships between environment groups and

labour unions that have complimentary objectives within the Just Transition framework Their collaborations

are building a stronger and more cooperative civil society and strengthening the fabric of our democracy It is

hoped that this report will help contribute to this momentum so that some tangible and clear actions are seen

in the very near future

vi | JOBS AFTER COAL A Just Transition for Queensland

Key recommendations for the State Government of Queensland

1 Establishing a unit within the State Government to support coal mining regions to transition to new economies

The unit would

bull Work on the ground in coal mining communities to bring government expertise into regional entities

bull Analyse barriers to the creation of competitive advantages for alternative sustainable industries

bull Identify actions the State Government can take to support sustainable industries

bull Provide research funding to that prioritises low carbon technologies and industry sectors with increased triple bottom line sustainability potential

2 Support community leadership in diversifying local economies through the establishment of democratic regional entities that

bull Lead in the development of their communitiesrsquo transition strategies

bull Researching the transition opportunities and pathways for the community

bull Planning and initiating re-training programs for workers from affected industries

bull Facilitate support programs for new businesses cooperatives and social enterprises based on the needs and strategies of communities

bull To take stock of the existing resources skills and successful businesses on which a new future can be built

bull Run an analysis of the social environmental and economic needs of the community

bull Establish economic diversification projects including value-added local production worker controlled co-operative enterprises and new community-based enterprises

bull Work in collaboration with regional councils and economic development organisations

3 Support researching and communicating how the just transition can take place

bull Providing regular academic standard situational analysis of the global energy markets shifts to keep the public informed about energy market trajectories

bull Support regional entities to research the number of jobs that are dependent on coal the skills of those employed the level of local national and global long- and short-term risk to local mining operations the transferability of jobs to other industries local opportunities for new enterprises and their needs and the local educational and training needs and resources

bull Researching how the transition scenarios could differ depending on the level and relativity of thermal and coking coal industries across coal mining communities

JOBS AFTER COAL A Just Transition for Queensland | vii

4 Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

bull Develop a plan to grow competitive advantage across industries that have potential for sustainability and growth in regional mining communities

bull Organise a State Economic Summit to assess existing industry clusters identify the potential of new and emerging industries consider their competitiveness and key capabilities and identify barriers to increasing competitive advantage

5 Provide social protection of workers their families and incomes

bull Create individual mine employment transition plans in cooperation with mining companies and local communities ready for when mines cease operating

bull Penalising mining companies that do not give adequate notice of their closure or restructuring

bull Subsidising workers at a full living income level for a maximum of four years who do not have adequate employment available to them at the time of redundancy to undertake training for careers that support the establishment of the new economy in their community

6 Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

bull Support and finance Unions to play facilitating roles in community transitions

bull Engage Unions to

- Provide career planning and advice

- Negotiate preferential hiring for displaced workers in the new alternative emerging industries

- Lead the establishment of work controlled cooperatives

7 Provide training opportunities for coal workers and communities

bull Mandating coal mining companies to fund education and training for their workers that give them skills for other industries

bull Funding training programs to assist retrenched workers from the coal industry to attain continued retraining and re-education

viii | JOBS AFTER COAL A Just Transition for Queensland

8 Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

bull Bringing mine site rehabilitation standards in Queensland to global best practice

bull Mandate that mine sales are not made to companies without adequate capital to properly rehabilitate the mine site

bull Increasing mining security deposits to ensure that the full cost of third party mine site rehabilitation is progressively implemented and signed off by governments throughout the life of the mine

bull Ban the sale of mines where rehabilitation responsibilities are not complete or behind schedule

bull Support the nationally coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions described above and more detailed policy changes

9 Remove all subsidies and tax payer funded support to coal mining

bull Review and remove all hidden subsidies to the coal industry within the state government

10 Sound investment and resource revenue management

bull Commission an economic assessment of the possible economic mechanisms and changes to existing policies that could fund the above measures to the extent that will be necessary

bull Set aside a percentage of coal royalties for funding the diversification of coal mining regions

JOBS AFTER COAL A Just Transition for Queensland | 1

1 Coalrsquos current role in the Queensland economy

Coal in the Queensland economyOver the last 30 years the Queensland coal industry has grown substantially to become a significant part of

the Queensland economy and create employment in many regional areas The industry has been concentrated

in the Bowen and Surat Basins throughout rural western and central Queensland The boom for the industry

began in 2005ndash2006 when prices for coal rose by around 400 causing massive industry profits in the

2000s (Stanford 2014) Prices have fallen dramatically since the flow on effects of the global financial crisis

(GFC) slowed down Chinarsquos growth in 2011ndash2012 However prices have remained much higher than the

below US$40tonne that was averaged through the 90s and earlier (Quandlcom 2015)

Queensland coal train

2 | JOBS AFTER COAL A Just Transition for Queensland

Over the last five years since the GFC and later slow down in coal demand the total Queensland coal

production has after decades of growth levelled off at just over 200 million tonnes per annum (Figure 1)

0

50

100

150

200

250

2008ndash09 2009ndash10 2010ndash11 2011ndash12 2012ndash13

Mill

ion

tonn

es

Figure 1 Queensland Coal Production 2008ndash09 to 2012ndash13 Source Queensland Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13

Queensland uses 20 to 25 million tonnes of its mined coal for electricity generation each year (Government

2014) But the rest which is 85 to 90 of the mined coal is exported to countries all over the world and

mainly to Asia In 2013ndash14 33 of the production was thermal coal and 67 was for coking coal production

to make steel (Table 1) Both thermal and coking coal create greenhouse gas emissions when they are burnt

However contrary to government and media perceptions the coal industry is not the sole driving force

behind the Queensland economy As in most modern economies the service industry dominates with 60

of economic output followed by the construction industry with 10 manufacturing at 7 and agriculture

forestry and fishing at 3 (ABS 2014)

An overview of the Queensland coal industry would not be complete without an examination of its level of

foreign ownership By volume 80 of Queenslandrsquos coal production is foreign owned (Government 2013)

This means that a majority of the profits from the operations of these companies are being directed out of

Australia to international shareholders

JOBS AFTER COAL A Just Transition for Queensland | 3

Table 1 Queensland Coal Mining Areas Production and Types 2009ndash10 to 2013ndash14

2009ndash2010 2010ndash2011 2011ndash2012 2012ndash2013 2013ndash2014

Mines operating 56 57 58 59 59

Saleable production Open-cut

Northern 76 450 64 167 62 632 71 268 78 953

Central 63 319 52 637 56 032 63 871 73 801

Southern 39 339 37 423 45 010 43 709 43 651

Total (mt) 179 108 154 227 163 674 178 848 196 405

Underground

Northern 7 642 8 965 9 492 13 266 11 470

Central 18 968 16 642 15 082 14 511 18 433

Total (mt) 26 611 25 606 24 574 27 776 29 903

Coking coal total 125 178 108 731 117 000 131 328 151 571

Thermal coal total 80 540 71 103 71 247 75 296 74 737

State total 205 719 179 834 188 247 206 624 226 309

Source Queensland Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13

Abbot Point

4 | JOBS AFTER COAL A Just Transition for Queensland

Revenue and economic activity generated by the coal Industry

As a nation the coal industry is Australiarsquos second

largest export earner after the iron ore industry Last

year it generated $40 billion which equal to about

12 of export revenue (Cleary 2015) The coal

industry in Queensland will pay around $2 billion

which amounts to 80 of total mining royalties

to the state Government in 2014ndash15 (Campbell

2014) Coal royalties represent around 4 of

Queensland Government revenue (Vorrath 2014)

Similar amounts come from vehicle registrations

and interests on funds saved for superannuation

in addition to long service leave entitlements as

shown in Figure 2 Such figures are not large in the

financial context of running a state government

Despite this the taxation contribution of coal is

incorrectly perceived as significant

The large revenues derived from coal exports

is due to the massive volumes the industry has

reached in recent years Total revenue to the coal

industry from its mining operations amounts to

approximately $25 billion per year that is added

to the economy This is a significant contribution

to Queenslandrsquos economy but one that needs

to be viewed relative to the size of the economy

Queenslandrsquos economy produced output worth

$290 billion in 2012ndash13 meaning the coal

sector accounted for around 7 of production

by value as shown in Figure 3 (right)

Commonwealth grants

Other staterevenue

MV registration

3

4840

54Interest

Coal royalties

Figure 2 Queensland State Government Revenue SourcesSource Queensland Treasury (2014) Queensland State Budget 2014ndash15 Paper 2

Non-mining

Other

2

91

7

Coal

Figure 3 Queensland gross state product coal other mining and non-mining sectors 2012ndash13 Source ABS (2013) Catalogue 52200 Australian National Accounts State Accounts

Coal industry jobs and their locationsThere has been much debate recently as to the exact number of people employed by the coal mining industry

Industry figures have been disputed because of the industryrsquos continual representation and communication

of construction jobs as if they were permanent In addition the industry conspicuously classifies indirect

growth in employment within the local economy as jobs that mining development is responsible for creating

Although in regional mining communities mining employment is high it is relatively small on a statewide

JOBS AFTER COAL A Just Transition for Queensland | 5

level Most recently the industryrsquos employment claims were revealed again in the Australian Land Court

case regarding coal mining development by Indian mining company Adani in the Galilee Basin to have been

exaggerated (Cox 2015) Adanirsquos mine proposal cited the figure of 10000 jobs attached to its development

application but the court was told by Adanirsquos own expert witness that the mine development would only

create 1464 actual jobs throughout the ongoing operation of the mine (Branco 2015)

According to research by The Australia Institute a majority of Queenslanders believe that the mining industry

employs ten times the amount of people it actually does (Campbell 2014) In reality the report shows that

the coal industry only employs 12 of the Queensland workforce (Vorrath 2014) What is significant is how

this employee population is regionally distributed with a majority of the employees residing in the Central

Highlands Isaac and Mackay Regional Council areas (Figure 4)

0

5000

10000

15000

20000

25000

30000

Whitsu

nday

Suns

hine C

oast

Banan

a

Rockh

ampt

on

Brisba

ne

Cent

ral H

ighlan

dsIsa

ac

Macka

yTo

tal

Em

ploy

men

t

Figure 4 Coal jobs by Local Government Area (LGA) in Queensland Top 8Source ABS 2011 Census Coal mining jobs by region in Queensland

SummaryThe coal industry plays a significant role in the Queensland economy but it is by no means irreplaceable As

the next section will show the coal industry has fallen from the lofty heights of its unprecedented profitability

and aggressive hunger for expansion It has come to a slower pace but due to the forecasted change expected

to affect the industry a new approach to planning local economies beyond coal is required

6 | JOBS AFTER COAL A Just Transition for Queensland

2 The drivers of change in the coal industry

Drivers of change The global energy market is in a period of dynamic long-term structural change that will have ongoing

repercussions for energy exporting countries such as Australia Over the last ten years the expansion in gas

the decrease in renewable energy prices the increasing of capital infrastructure costs the demand for cleaner

energy and energy efficiency have all dramatically changed the nature of the global energy economy (Ben

Caldecott 2014)

Coal has been the energy source that has made so many technological advancements through history possible

Although there has been many struggles and social costs along the way The communities workers and

companies that made this progress possible have substantially contributed to the creation of the modern world

Though if there is one thing we know from history it is that empires rise and fall The coal empire is crumbling

As it crumbles it is creating unnecessary instability stress and hardship on communities In communities like

Mackay where income has dropped by 30ndash40 as many other small mining towns people and businesses have

been caught culturally and economically unprepared for this economic shift (Bleby 2013)

Windmill and wind farm

JOBS AFTER COAL A Just Transition for Queensland | 7

2 The drivers of change in the coal industry

Drivers of change The global energy market is in a period of dynamic long-term structural change that will have ongoing

repercussions for energy exporting countries such as Australia Over the last ten years the expansion in gas

the decrease in renewable energy prices the increasing of capital infrastructure costs the demand for cleaner

energy and energy efficiency have all dramatically changed the nature of the global energy economy (Ben

Caldecott 2014)

Coal has been the energy source that has made so many technological advancements through history possible

Although there has been many struggles and social costs along the way The communities workers and

companies that made this progress possible have substantially contributed to the creation of the modern world

Though if there is one thing we know from history it is that empires rise and fall The coal empire is crumbling

As it crumbles it is creating unnecessary instability stress and hardship on communities In communities like

Mackay where income has dropped by 30ndash40 as many other small mining towns people and businesses have

been caught culturally and economically unprepared for this economic shift (Bleby 2013)

It is clear that coal thermal coal especially is no longer good for humanity despite our former Prime Minister

Tony Abbottrsquos fervent belief that it is (Online 2014) WA Premier Colin Barnett heralded last year in his

declaration that coal is in lsquostructural declinersquo (Burrell 2014) He was not wrong In the past 5 years alone the

Dow Jones Total Coal Market index has fallen by 76 (Baker 2014)

The reality is that the world is rapidly shifting away from fossil fuels including countries that are key

importers of Australiarsquos coal and gas China India Japan and South Korea import over 80 of Australiarsquos

export market for coal and gas The reality is that these countries have recently either announced policies to

shift away from these fuels andor initiatives to drastically enhance renewable energy and energy efficiency

(ldquoPolitics of Climate Change in Asiardquo 2015)

The following section of the report analyses the risk of Australia not being prepared economically for changes

that are already taking place As a country and a state our governing political parties continue to pursue

a strategy that assumes our short and long term economic prosperity is dependent on mining Few of our

political leaders are attempting to communicate an economic vision free from the inevitable boom-bust cycles

created by extracting emissions-intensive resources It is also a strategy that assumes energy production and

distribution will continue on as a very centralised process rather than following the great trend of networked

and decentralised distribution that is shaping the 21st century (Riftkin 2015) This strategy is short-sighted

given recent announcements by China and India to phase out fossil fuels and move rapidly towards cleaner

and more distributed energy sources (Rohr 2014)

The international coal priceThe majority of Queenslandrsquos export coal mining industry is dependent on demand for steel making from

the worldrsquos coking or metallurgical coal market This is a market that has been severely impacted by a

combination of actions in China the biggest steel manufacturer in the world Primarily Chinarsquos housing

boom has been slowing down over recent years this in turn has massively reduced the need for steel Most

importantly China is also running a ldquowar on pollutionrdquo that is having direct short- and long-term impacts on

the viability of the coal industry as a whole This has resulted in a campaign of state enforced closures of coal

plants and steel mills especially near the countryrsquos big industrial coastal cities (Ng 2015)

Prices on the international coking coal stock market have plummeted from the all time high of US$330

tonne in late 2011 to a sobering low of US$109tonne in the first quarter of 2015 The outlook still remains

gloomy for the coal sector

With the continued slowdown in the global and Chinese economies the price of iron ore has also collapsed

Prices have dropped by one third in the first quarter of 2015 alone causing at least one Australian mine to

close operations and many others to cancel plans for expansions (Sandersen 2015) Iron ore is closely linked

to the sales of coking coal which is used most commonly to melt iron ore into steel

8 | JOBS AFTER COAL A Just Transition for Queensland

20

14

US

$t

0

100

200

300

400

2005 2007high quality high coking semi-soft coking

2009 2011 2013 2015

Figure 5 Coking Coal Prices 2005ndash2015 (worldcoalcom)

A similar price drop has hit thermal coal used in coal-fired power stations Thermal coal is mined in many

Surat Basin mines and is also found in some Bowen Basin mines where it is an addition to the high quality

coking coal found in the area Significantly the proposed mining development in the Galilee Basin is only

for thermal coal which at a time when coal-fired power stations are being replaced by cleaner options is

alarming (Pacific 2012) Thermal coal was priced at US$120tonne in late 2011 It had plunged to US$73

per tonne by February 2015 and has remained below US$60tonne since May 2015 Chinarsquos new rules of

cutting ash and sulphur content in seaborne coal imports along with increasing tariffs on coal imports has

meant that even Shenhua Chinarsquos biggest coal company cut coal imports in early 2015 (Jenda 2015)

Overall Chinese consumption dipped by 16 in 2014 despite their economic growth of 73

The decade of relentless and largely unplanned investment in Queensland coal mining in times of high prices

led to a massive oversupply against a background of decreasing demand The state and federal governments

failed to slow the industry down so that it did not overshoot an economically sustainable size This has made

the challenge of transitioning out of the industry even harder along with magnifying the pain now faced by

many mining towns (Neubauer 2015) All of this leaves a million-dollar question Is the downshift in [coal]

demand terminal According to Richard Gibbs from the Macquarie Bank it certainly is (Neubauer 2015)

The global coal market is also experiencing competition from renewables and shale gas slow growth and

government policies which are in part driven by the threat of climate change

The growing competition from renewable energy sources has been increasing its impact on the coal industry

by slowly but steadily eroding profits of domestic coal power stationsmdashand thus demand for coalmdashacross the

country (Hewson 2015) In Queensland the state government should be applauded for its 50 renewable

energy target by 2030 which will further add strain to struggling coal power generators (Parkinson 2015)

A more than 50 decline in coal prices has seen most listed coal companies globally to lose 80ndash90 of their

equity market value in the last four years (Buckley 2014) In 2014 the world added more energy generation

capacity from wind power than from coal Overall Europe and America have already cut coal-fired generation

JOBS AFTER COAL A Just Transition for Queensland | 9

capacity by over a fifth in a decade The sun will undoubtedly rise even further for renewable energy in 2015

but for coal there remains a lot further to fallrdquo said a report by the Institute for Energy Economics and

Financial Analysis in January 2015 (Buckley 2015a)

This statement is borne out by the facts

bull In 2014 new global wind installations grew 40 to 46GW led by China and America (Buckley

2015b)

bull In 2014 the US solar installation sector created almost 50 more jobs than the oil and gas pipeline

construction industry (Foundation 2015)

bull From 2000 to 2011 global annual growth in the yearly global installation rate of photovoltaic solar

panels was 40 In 2011 the total amount of global PV capacity installed was 27GW an astonishing

60 growth on 2010 levels (Green 2012)

bull Unsubsidised renewable energy is now cheaper than new coal-fired power in Australia (Paton 2013)

Solar installation

10 | JOBS AFTER COAL A Just Transition for Queensland

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

Coal power station

JOBS AFTER COAL A Just Transition for Queensland | 11

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

The outlook for coal pricesWhile some consider the outlook for coal prices as cyclical in nature and that a turnaround will increases

prices for coal other analysts believe this downward trend based on policies health impacts and concern

about global warming is here to stay

Financial reports from the major mining companies in Australia paint a grim outlook for global metallurgical

coal prices China was once the great hope for coking coal exporters but BHP Billitonrsquos metallurgical coal

market outlook (May 2013) indicated a flattening demand into the future (Billiton 2013 Rohr 2014)

BHP Billiton has warned that the increased usage of scrap metal in furnaces would result in lower growth in

demand for pig iron while greater production from electric arc furnacesmdashwhich use little or no coking coalmdash

are expected to ldquocontribute a significant share of total Chinese steel production by 2030rdquo Although coking

coal will likely remain necessary for steel production for some time as renewable energy sources grow the

efficiency and lower emissions intensity of electric arc furnaces will help them to outcompete coking coal in

the not too distant future Some experts even predict another technology called lsquodirect reduced ironrsquo that uses

gas to make steel could make coking coal redundant within a decade (Macleod 2013)

It is not just China BHP Billiton also cautions that the Indian steel outlook is less certain as steel production

growth has been slower than expected Prices for commodities from iron ore to coal are sinking as Chinarsquos

leadership tries to steer the economy away from debt-fueled property investment and smokestack industries

embracing services and domestic-led consumption At the same time President Xi Jinping is stepping up efforts

to combat pollution The provincial government of Beijing and a number of other major cities have made plans to

ban coal use by 2020 further putting the squeeze on all types of heavy industry (Coulter 2015)

However the outlook is not all dismal for coal everywhere In India demand is expected to continue to rise

without peaking until the 2030s Indiarsquos government predicts a 19 rise in coal imports this year which

may offer very short-term opportunities for Australian miners The opportunities are short term because these

import increases are something the Indian government has indicated it does not want continued into the

future Indiarsquos plan is to ramp up renewable energy technology as well as develop their untapped coal fields

to support a gradual phase out of thermal-coal imports within the next 2ndash3 years (Baker 2014) Regardless

the Indian mining giant Adani still hopes it can get coal from its proposed Carmichael mine in the Galilee

Basin and export it to India for the duration of its 60 year life span After a number of international banks

have ruled out funding for the Carmichael coal mine Adani has been looking for cash handouts from the

Australian Government to fund its shaky proposal However sanity has prevailed and these have been ruled

out by the new Prime Minister (Edis 2015) It is clear the Indian governmentrsquos plan for Indiarsquos future coal

supply sources does not involve Australian coal

12 | JOBS AFTER COAL A Just Transition for Queensland

This is the marketplace in which Australiarsquos exported coal competes and this is the marketplace that holds the

livelihoods of workers and communities in its hands The current state and future outlook of the coal industry

suggests that it would be risky not to scale down the thermal coal industry and at least restrict any new mine

expansions in the coking coal sector There are those who remain positive about the industryrsquos future but

recent events in the coal industry and uncertainty over medium and long term suggest that there are better

industries to back Behind these diverse risks threatening the coal industry is the inescapable scientific

fact that we cannot afford to burn any more coal from new coal mines if we want to decrease the risk of our

already fifty fifty chance of avoiding the worst impacts of global warming (IPCC 2013) If we wanted to try

and remove the total risk of runaway climate change we could not even afford to burn the coal that are sitting

in trucks on trains at port yards and in ships Not even the coal travelling on conveyors into power station

furnaces about to be burnt right this very moment

The carbon bubbleFrom the South Sea Bubble as well as the housing and dotcom bubbles of the last decade periodic over-

investment has been made into sectors deemed too important to fail The rush and hubris of investors seeking

incomparable profits to finance such industries has led to speculative bubbles of over-estimated value that

eventually burst In the economic fallout that results working people carry the burden while the speculators

and profiteers generally are not held accountable Another speculative bubble has formed and it dwarfs the

size of all of the bubbles that have come before it It is called the Carbon Bubble (Tracker 2015)

One of the few things world leaders agreed upon at the Copenhagen climate talks was that the Earth needs to

stay below 2degC warming to minimize the risk of runaway climate change

bull If we are to avoid going over 2degC we can emit only 565 more gigatonnes of carbon dioxide (IPCC 2007)

bull Burning the fossil fuel that corporations now have in their reserves would result in emitting 2795

gigatonnes of carbon dioxidemdashfive times the safe amount (Leaton 2013)

The Intergovernmental Panel on Climate Change has now produced its own carbon budget They have calculated

that if we continue pumping carbon into the atmosphere at todayrsquos rate this budget will be exhausted within

15ndash25 years (IPCC 2013) This means there will be growing political pressure on the fossil fuel industry to

keep most of its reserves in the ground That pressure has already begun around the world Citizens are pressing

their superannuation funds councils banks universities and other institutions to divest from fossil fuels with

growing success The year 2013 saw several major financial institutions recognise the financial and ethical

implications of continuing to finance fossil fuels with Norwegian Storebrand Rabobank and the World Bank

among those who made major announcements on divestment or cutting loans In 2014 major institutions

including Stanford University the Australian National University and Oxford University have divested their fossil

fuel funds (Advisors 2015) So far in 2015 local councils in Australia such as Moreland Newcastle Byron Bay

Melbourne and many more have also divested (Ryan 2015) Divestment is now going mainstream and will have

increasing impacts on fossil fuel company shares into the future

JOBS AFTER COAL A Just Transition for Queensland | 13

As a result of the momentum of the global divestment movement international stock exchanges are creating

new indexes to exclude fossil fuels in preparation of the impending seismic shift in global finances In late

April 2014 the worldrsquos largest fund manager Blackrock joined with the FTSE Group in London to create

a new index The ex-Fossil Fuels Index Series is an innovative set of benchmark indices that excludes

companies directly engaged in extracting so-called ldquostranded assetsrdquo in the hydrocarbons industry ldquoThis

is one of the fastest-moving debates I think Irsquove seen in my 30 years in marketsrdquo FTSE managing director

Kevin Bourne told the Financial Times (Clarke 2014) The Bank of England is now investigating its exposure

to risk from its fossil fuel investments To top that off the worldrsquos biggest sovereign wealth investment fund in

Norway has recently dumped coal investments (Carrington 2015) The largest contribution to climate change

from the fossil fuels in company inventories at present is from coal Because it has the largest climate impact

per unit of useful energy it is being targeted for early phase out

The book value of fossil fuel companies is determined not only by their current infrastructure and deposits

undergoing extraction but also by the size of their legally claimed reserves Because the book value of so

many companies has greatly exceeded their realisable value as emissions restrictions come into place a

speculative bubble has formed Unfortunately bubbles usually burst in the end leaving behind stranded

assets and stranded capitalmdashand leaving workers in the lurch The only alternative is a mature and planned

phase out of the industry that slowly devalues and deregisters fossil fuel reserves at a pace that does not lead

to financial crisis A planned phase out that gives time for just employment transitions for fossil fuel

communities

500

1000886

565

1500

2000

2500

3000

already burnt

remaining

2000ndash2050

2011ndash2050

Coal 2˚Global carbon

budget

Oil

Gas

GtC

O2

Global fossil fuel reserves

Figure 6 Carbontracker 2012 report The Carbon Bubble

14 | JOBS AFTER COAL A Just Transition for Queensland

In 2013 the report Unburnable Carbon highlighted that ldquoCompany valuation and credit ratings

methodologies do not typically inform investors about their exposure to these stranded assetsrdquo (Leaton

2013) This is very troubling when considering that the supporting share value of these reserves was $4

trillion in 2012 and that they serviced $127 trillion in outstanding corporate debt over the same period We

need to challenge these methodologies (Tracker 2015) In a move that signals a step towards the solutions

required the World Bank the European Investment Bank and the US Export-Import Bank have all announced

that they will not fund further coal-fired power plants except in exceptional circumstances As changes in

policy by the major coal consumers the uptake of renewables and the need to stay within the global carbon

budget begin to bite it is high-cost producers who will be squeezed first Australia is considered a high-cost

producer because of our strong industrial relations and wage laws which makes it all the more necessary that

our governments are vigilant and prepared for impending macroeconomic change (Cleary 2015)

SummaryThis is the environment in which the Australian coal industry finds itself Internationally coal is no longer

looking like a safe long-term investment within the context of the rapid changes afoot in the world The coal

industry leaders are either in denial about their industryrsquos future or are determined to squeeze as much profit

as possible until the cost gets worn by workers and their communities (Saunders 2015)

The issues of climate change demands for cleaner air and more efficient new technologies The realities of

the market are revealing coal as the sunset industry it really is This is not an industry Queenslanders can

rely on to create a stable resilient and sustainable economy It cannot be relied upon for future wealth

and future jobs We have been warned by the UN Climate Change Secretariatrsquos Executive Secretary that the

diversification and a managed transition away from coal is what we need to do and we need to heed this

warning (Australian 2015)

JOBS AFTER COAL A Just Transition for Queensland | 15

3 Assessing some of the economic opportunities in mining regions

IntroductionThe great state of Queensland is endowed with sustainable human and environmental resources that have the

potential if we choose to harness it to drive a balanced diverse and resilient economy for generations to

come Diversifying Queenslandrsquos economy to create sensible and stable prosperity beyond the boom and bust

vagaries of the mining industry must be a key objective of the Queensland Government The Newman LNP

Governmentrsquos Queensland Plan headline was lsquoforging diversity and prosperityrsquo (Government 2014) But

throughout Newmanrsquos reign as premier no action was taken Under the new Palaszczuk Labor Government

there has been some effort to support economic diversification across the state This is insufficient because as

of yet nothing has been done to adequately fund facilitate and empower the actual communities where

mining takes place The grassroots Labour Environmental Action Network an organisation within the

Australian Labour Party has called for change At the 2015 Queensland ALP State Conference they put

forward a motion that was passed calling on the state government to prepare a just transition policy before the

next conference (ALP 2015)

Grain harvest

16 | JOBS AFTER COAL A Just Transition for Queensland

Most importantly both major parties have continued their relentless support for further coal mine expansions

that inherently suffocate the process of diversification

With the coal industry forecast to be in a lsquostructural declinersquo by political leaders and bankers alike it is now

essential that the focus for economic development be on industries that can bring sustainable prosperity to

Queensland (Burrell 2014 Robins 2014) In the United Kingdom under Prime Minister Thatcher the world

witnessed the consequences of industries closing without planning and without investment to transition local

communities and industries

The following section of the report outlines how the opportunities for sustainable economic development

are already known Queensland has well-established sectors with bountiful potential in agriculture tourism

manufacturing and education It also has the opportunity to capitalise on a boom in renewable energy and

bio-industrial products to create more sustainable economic sectors These industries are ready to fill the

void that will be and is being left by coal however they lack the support needed to ensure their presence in

mining communities to provide a just transition away from coal where it is most needed

Agriculture and aquacultureCurrently the Queensland agricultural sector is worth near $147 billion and employs over 90000 people

(Queensland Government 2012) The sector has the potential to massively expand its food exports to Asia as

population and economic growth continue to surge in the dynamic economic region Through the competitive

advantage of our proximity to Asia and high-quality produce capabilities agricultural products have become

Queenslandrsquos second largest export earner and have the potential for continued growth (Heath 2014) By

increasing availability of farming technology driving productivity minimising costs and focusing on profitable

premium produce markets the Queensland Agricultural Strategy (2012) aims to double the total value of

production for all agricultural commodities by 2040 With innovative new farming approaches and ecosystem

system management strategies such increases in production are possible in a way which sustainably manages

and regenerates the land

To reduce pressure on fish stocks from home and abroad the promotion of aquaculture could be further

encouraged across the state This industry is worth $10 Million a year (Lucas DLGP 2011) At present

there are several sites located along the coast however research conducted over the last decade has

identified future sites for land based aquaculture Industry consultation aquaculture management training

programs and related issues in developing a workforce need to be considered (Plan 2012) The Queensland

Aquaculture Industry Federation sees the need for continued collaboration between government and other

stakeholders in order for this industry to reach itsrsquo potential as a strong core industry (Federation 2015)

The Department of Employment Economic Development and Innovation is leading the government drive to

JOBS AFTER COAL A Just Transition for Queensland | 17

develop the aquaculture industry This could see a future where aquaculture goes further than just meeting

domestic demand and grow to cater for high value export markets (Lucas DLGP 2011)

New opportunities in animal genetics aquaculture horticulture and bio-processing are driving agriculture

and aquaculture sector growth in new directions Both industries are about creating intergenerational

economic sustainability Choosing these industries that have unlimited potential to sustain our communities

and our ecosystems over mining is choosing long-term jobs over short-term jobs that cannot be passed on to

the next generation The bottom line is that we live in a hungry world and Queensland is well placed to be a

reliable and sustainable source of food to other nations without the agricultural potential we are endowed with

(Government 2014)

Tourism and recreational fishingDespite setbacks due to the high Australian dollar and loss of skilled workers to the mining boom the

tourism industry is still a critical part of the Queensland economy with massive future potential (Dr Tien Duc

Pham 2015) The tourism industry made a significant employment contribution providing 124000 jobs in

2010ndash11 with steady growth in international visitor nights (Deloitte Access Economics 2012) Queensland

has the potential to become a global leader in tourism and ecotourism and by doing so to create more

jobs and revenue (Government 2014) This will be possible similarly as in agriculture by promoting the

experiences available in our natural places and the quality hospitality we can provide to the growing Asian

middle class (Wilson 2013) The Chinese tourism market is seeking clean fresh and new experiences that

Queensland can cater to and is expected to be worth $74 billion by 2020 (Guterres 2014) Significant to

Queenslandrsquos potential in tourism is our ability to expand the tourism industry in the authentically Australian

rural and stunningly beautiful coastal mining communities where new economic activities are most needed

Further mining expansion in such places threatens to do to tourism what the growth in heavy industry did to

Gladstonersquos economic diversity where fishing and tourism are now non-existent

Although sustainably managed fisheries have the potential to provide continued economic prosperity to

Queensland there lies a major opportunity in net free fisheries to develop as tourism industries specifically

in coal mining regions A great recent example of this taking place is the newly established Net Free Zone

between from the Northern end of St Helens beach to Cape Hillsborough (Spelitis 2015) Along with three

other net free zones across the state the extent of the cumulative commercial opportunities for sustainable

tourism the net free zones have created has made it one of the three pillars as part of the 2020 vision for the

Queensland has the opportunity to develop an abundant and resilient agricultural industry that supports the transition to sustainable prosperity

18 | JOBS AFTER COAL A Just Transition for Queensland

Queensland Tourism Industry Council (Council 2015) The Mackay Isaac and Whitsunday (MIW) coal mining

region has excellent accessibility to a variety of fishing pursuits In addition to the new net free zone ther are

five fresh water stocked impoundment fisheries creating opportunities to promote lake beach offshore and

deepwater angling Improvement of accommodation facilities quality of jetties access roads and coordinating

fish trails with regional events could maximise visitation from recreational and tourism markets (Mackay

Tourism Tourism Queensland 2012) Charter fishing operatiors tackle stores campsites motels boat sales

boat building and maintenance all have the opportunity of benefitted from growth from the recreational fishing

tourism industry (Lucas DLGP 2012)

Higher educationOver the past decade millions of international students have visited Queensland for our quality tertiary

institutions and enjoyable lifestyle International education is Queenslandrsquos biggest service export with

nearly $2431 million being generated in 2013ndash14 alone (Australian Government 2014) The majority

of Queensland is strategically located in the latitudinal tropical zone where at a global level more than

50 of the worldrsquos population is forecasted to live by 2050 (Australian Government 2015) This makes

Queenslandrsquos universities well placed to develop the partnerships and research innovations tailored to the

challenges and opportunities of the new tropically-oriented world This will help Queensland and especially

North Queensland to attract increasing levels of international students to be part of our high-quality tropical

research institutions These students will increase spending through tourism support the creation of our own

skilled and globally connected workforce and connect Australia to business networks and opportunities across

the world In 2013ndash14 the Cairns region benefitted to the tune of $1375 million from international students

(McGuiggan 2014) With the right policies these benefits already being experienced primarily in Cairns

Townsville and Brisbane can be spread further across Queensland to make international education a strong

economic driver in transitioning mining communities

Bio-industrial productsAs the world moves away from fossil fuels the demand for cleaner more sustainable fuel sources will grow

(Emissions 2014) By using excess organic matter produced through food production to develop bio-industrial

products Queensland has the potential to export clean and sustainable fuels and bio-plastic materials to the

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Tourism is about experiences not extraction It has the potential to share Queensland beauty with the rest of the world and create sustainable local economies in the process

Queenslandrsquos greatest resource is the minds of its people We can share and co-create our innovations and learning with students from all over the world who want to make Queensland the launch pad for their careers

JOBS AFTER COAL A Just Transition for Queensland | 19

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Sorghum fields

20 | JOBS AFTER COAL A Just Transition for Queensland

Queensland is well placed to develop biofuel products from waste and oil crops such as Pongamia and algae

in addition to using the statersquos advanced sugarcane industry to convert excess cane using efficient cellulosic

processes Recent scientific developments in bio-plastics at the University of Queensland show that as a

state Queensland has the skills and ability to build a bio-industrial products industry that can contribute to a

sustainable economic future (Queensland 2015)

Renewable energyQueensland the sunshine state has enormous potential to generate electricity from the sun wind and waves

in addition to many other abundant renewable energy sources (Green 2012) Renewable energy has for a long

time been the catch cry from environmentalists as the complete solution to creating the jobs necessary to

replace the fossil fuel industry This report has been written partially to show recognition that as much as

renewable energy has the potential to create more jobs and replace fossil fuel domestic energy production it

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Gemasolar solar thermal power station Spain

JOBS AFTER COAL A Just Transition for Queensland | 21

cannot completely replace all of the coal

export industry jobs Numerous studies

show that with strong climate policies

over 7100 jobs can be created in

Queensland through renewable energy

by 2030 (Institute 2011) Thousands of

these jobs will be in regional

Queensland These should be prioritised

for regions where the mining industry

has developed rural communities in

need of new economic opportunities Far

North Queensland is especially suited to

further renewable energy investment

because of its climatic conditions and

because of the expensive transmissions

losses from having energy wired from

southern power sources (Allen 2011)

This makes it essential that government

policy ensures that the fair share of the

$35 billion in potential renewable

energy investment goes to rural mining

communities not only where it is most

needed economically but where it

makes the most business sense

(Department of Employment 2009)

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Queensland has the potential to become a smart sunshine state powered by clean and sustainable renewable energy By doing this we will be creating jobs in rural mining communities where they are needed most and building a foundation for a new sustainable economy

22 | JOBS AFTER COAL A Just Transition for Queensland

4 Community transitions Global case studies

There are communities around the worldwhich have reinvented themselves after the end of coal mining and

developed prosperous economies in doing so It has been a struggle but where there is a level of government

support inspired local leadership and the community is working together to regenerate its economy it has

been possible (Coal 2015) We are not suggesting any of these examples can be directly transferred to

Queensland communities facing the end of coal mining The object of these case studies is not to provide a

blueprint for Mackay Gladstone Rockhampton or mining towns in Central Queensland but to show the

diversity of ideas that have worked in other places that might stimulate our local communities to reinvent

themselves too

Hazelwood coal power station La Trobe Valley Vic

JOBS AFTER COAL A Just Transition for Queensland | 23

La Trobe ValleyIn the brown coal producing region of the La Trobe Valley in Victoria a grassroots transitionary force has been

underway for the past fifteen years Earthworker was set up by union and climate change activists seeking a

real alternative to coal and privately owned business models Earthworker Cooperativersquos mission is to create

jobs that respond to the lsquochallenges of climate change and the need for local job creation by facilitating the

establishment of worker-owned cooperatives hellip in sustainability-focused industriesrsquo (Earthworker 2015)

Their current focus is the establishment of a cooperative producing solar hot water systems in partnership

with an existing business called lsquoEverlast Hydro Systemsrsquo Their goal is to take production to Morwell in the

La Trobe Valley where workers are in need of an alternative to the coal industry The unique cooperative model

has made selling arrangement possible through inserting the option to buy a solar hot water system through

enterprise bargaining agreements

BanwenThe DOVE workshop in Banwen South Wales (Dove 2015) was started by agroup of women who during

the 1984ndash85 coal minersrsquo strike decided that community-based education was the most practical path to

regenerate the local economy Setting up shop in an abandoned mine office they developed a series of adult

education workshops for women Three decades later the DOVE building hosts a diverse set of small-scale

entrepreneurs including a daycare a library a community garden and a cafeacute featuring local foods

OrkneyOrkney like Central Queensland is a relatively isolated place with a scattered population Situated at the

top of Scotland two hours from the mainland by ferry Orcadians like Central Queenslanders often feel

like spectators to what goes on in the rest of their country They also feel vulnerable to central government

decisions and are often irritated by the lack of understanding of island life on the part of distant authoritiesmdash

its particular customs dialect and ways of doing things Since Norse times Orkney islanders burned peat (a

very young form of coal) as their primary fuel source but all the peat has been dug up This traditional way

of life where each farming family had its own peat bank and spent long summer days cutting and drying

peats while sharing picnics as children played is gone Another non-renewable energy source North Sea oil

discovered in the 1970s brought positive and negatives for the island It turned the tide of depopulation but

like the peat banks the oil is depleting and another lsquoend of an erarsquo is approaching Orcadians have woken up

to the fact that they canrsquot continue to hark back to the past and are confronting the issues of a future without

fossil fuels

Over the last three decades European community funding has helped Orkney to equip itself for the green

energy revolution Orkney now plays a global role in the evolution of wave and tidal technologies and

significant research and development work is creating new employment opportunities A high school in

Stromness was converted into the European Marine Energy Centre and is now a world leader providing

developers the opportunity to test full-scale prototypes in the sea The worldrsquos largest single-rotor tidal turbine

24 | JOBS AFTER COAL A Just Transition for Queensland

was the first in Scotland to be connected to the national grid from this centre Marine energy combined with

an expansion of wind turbines means that the island is now self-sufficient in electricity These renewable

energy developments have created jobs in the Orkneys in civil works and erection grid connection and

communications (Stuart 2011)

Investment in renewable energy and its associated RampD has attracted people to live work and study on the

island Islanders used to have to leave to get tertiary education but it is now possible to study for an MSc in

renewable energy at a Heriot Watt University campus in Stromness A new generation of Orcadians have grown

up to see renewable energy as the way of the future something quite ldquonormalrdquo which will provide greater

opportunities for their children to stay on the island with genuine prospects for employment in meaningful

jobs requiring a wide range of skills and qualifications This shows what a community in transition to a low

carbon future can look like

Nord-Pas De CalaisUntil 1986 the north-east region of France Nord-pas de Calais was a major coal mining area It still boasts

huge twin tailings mountains the largest in Europe which have become a tourist attraction It is known

to Australians for the war cemeteries associated with the battle of the Somme in WW1 but it has recently

undergone a remarkable transformation towards a truly sustainable economy Old coal mines at Lens have

been transformed into an art gallery displaying works from the Louvre collection in Paris Hundreds of people

are trained in energy efficiency solar energy and green architecture at a new training centre in nearby Loos-

en-Gohelle

The Chamber of Commerce invited economist and social visionary Jeremy Rifkin of the TIR Consulting

Group and his chief economist Skip Laitner to apply their model of the third industrial revolution to the

district (Riftkin 2015) Rifkinrsquos Third Industrial Revolution combines renewable energy energy efficiency

and the connectivity of the internet Buildings are energy generators and hydrogen is used as energy storage

After working with the community for some time the Master Plan was published in 2013 and envisages

that 100000 new jobs can be created by the transition plan (LLC 2013) Certainly the population has not

declined since mining days and has even slightly increased Inspired local leadership was the key in this

community plus some outside funding to help with the underpinning research

Appalachia (Kentucky)The transition process is just starting here but the community is very organised Kentuckians For The

Commonwealth has been battling the negative effects of coal mining for some decades and is now planning a

transition to ldquobuilding a better future beyond coalrdquo (Commonwealth 2015) Last year they held a conference

in Harlan Kentucky right in the middle of the Appalachian coal fields and invited guests from other US

regions in the same position as well as from Wales It is too soon to see what the outcome of their learning

process will be but they are another example of a community taking its future into its own handsmdashoptimistic

that there is a better future after coal

JOBS AFTER COAL A Just Transition for Queensland | 25

5 A just transition for coal mining communities policy recommendations

The opportunities to transition from unsustainable coal mining to prosperous communities with decent

employment will not just materialise by themselves It will need the political will and the right incentives to

ensure that communities are not left fending for themselves with unemployment increasing and families

in need of long-term welfare But not only is the political will not currently there both major political

parties continue to support the expansion of this sunset industry and by doing so are making the transition

challenges progressively more difficult (Denniss 2012) For too many years governments have uncritically

supported the coal mining sector Entire government departments have been focused on facilitating mining

with tax incentives weakening assessment and approval processes along with providing through tax payer

money established industrial infrastructure to support new projects Government policy often seeks to grow

royalties income by supporting the extraction of as much coal as possible as an escape the challenge of

finding other ways to increase state revenue New sustainable industries in coal communities will need just as

much if not more support while it gets started

We propose that communities local businesses workers unions community groups environment groups

local government and state and federal governments all need to be involved in planning a transition to

alternative forms of economic development and providing new jobs We call this a Just Transition (Anthea

Bill amp Evans1 2008 Brecher 2012) Just Transition is a framework for a fair and sustainable shift to a low

carbon economy proposed by trade unions and supported by environmental NGOs A Just Transition holds

that a shift to a lower carbon economy is vital to avoid dangerous climate change

Bimblebox Nature Refuge

26 | JOBS AFTER COAL A Just Transition for Queensland

Tough targets to cut greenhouse pollution supported by new environmental regulations and emerging carbon

markets will transform the global economy over the next decade These shifts will have major implications

for working people in energy supply industry and transport and for everyone as consumers There is a concern

that significant periods of economic restructuring in the past have often happened in a chaotic fashion

leaving ordinary workers along with their families and communities to bear the brunt of the transition to

new ways of producing wealth A just transition seeks to prevent such injustice becoming a feature of this

transition suggesting that it would not only be morally wrong and socially damaging but would undermine the

credibility of the transition itself and could slow or even halt the changes that must be made

It is through the challenges of communicating the urgency of climate change and other social and

environmental impacts that much of the debate about coal and its consequences for land water and the

climate has become unnecessarily adversarial and polarised Coal mining and power generation communities

deserve acknowledgement and appreciation for all that they have historically and currently contributed to

our country and our economy In communicating the economic shifts that are taking place and facilitating

the necessary transitions the Australian community needs to be respectful of the history and identity of coal

communities Environment groups government unions and the community need to initiate and engage in

the discussions about transitions in an open honest and compassionate manner Only by approaching the

transition in this way can the adversarial nature of the debate be broken down to make way for transformative

mutually respectful and holistic solutions

Whitsundays lsquoHave a Heart for the Reefrsquo

JOBS AFTER COAL A Just Transition for Queensland | 27

A just transition recognises that support for policies are conditional on a fair distribution of the costs and

benefits of those policies across the economy A just transition should also recognise that the creation of

opportunities for active engagement by those affected in determining the future wellbeing of themselves

and their families is essential for the long term empowerment of citizens and communities The following

recommendations have been written with the aim of emphasising such community empowerment as a priority

Recommendations

1) Establishing a unit within the State Government to support coal mining regions to transition to new economies

Specific institutions are needed to develop transition plans They need to have strong government support

and funding regional offices and representation from diverse stakeholders A dedicated unit within the

Department of Infrastructure Local Government and Planning could be established to oversee this work

They could work on the ground in the main coal mining communities to bring government expertise into

regional entities that would develop local plans that involve and empower the whole community This unit

or a connected unit would analyse existing barriers to the creation of competitive advantages for alternative

sustainable industries and would identify actions the State Government can take to support such creation

Any policy and support should come with clear conditions and timeframes These regional entities would

need generous budgets to assist local groups to develop their transition strategies to support research re-

training and the development of new business and community start-up initiatives based on the needs and

strategies of communities The key to communities becoming economically resilient is high levels of autonomy

and freedom in shaping their economic futures Research funding available to the regional entities will be

essential to the empowerment of local leadership Research funding should at least reach the OECD research

funding average and it should prioritise low carbon technologies and industry sectors with increased triple

bottom line sustainability potential

2) Support community leadership in diversifying local economies through the establishment of democratic regional entities

In each mining community a group of traditional and non-traditional community leaders willing to think

beyond lsquoBusiness as Usualrsquo to imagine a better future could be called together to work in collaboration with

and be resourced by the state government managed regional entities mentioned in recommendation one

The leaders would come from diverse backgrounds such as from local governments business associations

unions farming groups renewable energy businesses and educational institutions The objectives of these

leadership groups would be tailored to each community The objectives would in broad terms be to increase

employment in new diverse industries based on sustainable production and publicservice sector job creation

Expert facilitation alongside inclusive and democratic community engagement initiatives would be essential

to ensure the process and environment for creativity and innovation is maximised To develop such groups

it would be necessary to take stock of the existing resources skills and successful businesses on which a

new future can be built In addition an analysis of the social environmental and economic needs of the

28 | JOBS AFTER COAL A Just Transition for Queensland

community would also be beneficial These groups could then establish economic diversification projects

including value-added local production worker controlled co-operative enterprises and new community-

based enterprises that economically empower the local community Activities may also include support for

alternative industries in regard to process restructuring or subsidising the wages of workers displaced from

higher paying traditional industries

3) Support researching and communicating how the just transition can take place

Consistent research is needed on the best options to support the state and national economies to transition

This requires ongoing situational analysis of the global energy market shifts at both government levels In

addition each mining region will need assistance to research the number of jobs that are dependent on coal

the skills of those employed the level of local national and global long- and short-term risk to local mining

operations the transferability of jobs to other industries local opportunities for new enterprises and their

needs and the local educational and training needs and resources A key issue requiring research will be

around how the transitition scenarios differ depending on the level and relativity of thermal and coking coal

industries across coal mining communities The process for sourcing this information at a local and state

government level should be integrated into a policy feedback loop to support cyclical situational analysis and

policy adjustments from all levels of government This research should take place at the state level and be

encouraged at the industry and local level through grants

Mackay Central Queensland

JOBS AFTER COAL A Just Transition for Queensland | 29

4) Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

Many existing Queensland industries including those not highlighted in this report have the potential to

carry Queensland towards a new sustainable economy [sC5]mdashbut they will need support to do so Instead

of continuing to support and lower costs for the coal mining industry we need a plan to grow competitive

advantage across industries that have potential for sustainability and growth in regional mining communities

Along with industry and community organisations the State Government could organise a State Economic

Summit to assess existing industry clusters identify the potential of new and emerging industries consider

their competitiveness and key capabilities and identify barriers to increasing competitive advantage The

findings and recommendations from this Summit could be used to inform the work of the Unit established in

bullet point one above and the research outlined in bullet point two

5) Provide social protection of workers their families and incomes

If mines close suddenly workers need protection for their incomes and social services and possible relocation

even though many miners these days do not live in the communities where they mine Ideally these transition

plans would be developed early enough to ensure that new employment opportunities are in place for them

before mines actually close For many workers this is already too late but if the process begins now there will

be choices available for future retrenched coal workers who live in mining communities and regions Mining

companies could be incentivised andor penalised to give adequate notice to workers and other stakeholders

that closure may be impending and alternative economic opportunities need to be developed

6) Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

Involving the relevant unions in the planning of community transitions can enable them to move towards

becoming more proactive agents helping to plan the transition with critical networks and specific knowledge

about the needs of their members When a coal-fired power station in Washington State USA was scheduled

for closure for environmental reasons unions played a pivotal role persuading environmentalists and others

to delay the closure long enough for a Just Transition to provide different jobs for the workers This made it

possible for the coal resource to be replaced by wind and other renewable generation rather than natural

gasmdasha better environmental outcome and the unions became an active part in the phase out planning

Unions have a heavy workload defending workers rights and pay They need to be supported and financed to

play important roles in community transitions From facilitation and leadership of planning bodies career

planning and advice preferential hiring for displaced workers in the new alternative emerging industries and

leading the establishment of work controlled cooperatives unions have an essential role to play

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

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After Coal (2015) Community Regeneration West Virginia United States httpaftercoalcomengage-your-community Retrieved 10th of November 2015

Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

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Australian Bureau of Statistics (2014) Australian National Accounts State Accounts 2012ndash13 Canberra Australia Retrieved 10th of November 2015

Australian Bureau of Statistics (2015) MackaymdashCensus Employment by IndustrymdashTime Series Australian Government Department of Employment Retrieved 10th of November 2015

Australian Government Department for Education and Training (2015) Draft National Strategy for International Education Canberra Australian Capital Territory Retrieved 10th of November 2015

Australian Government (2014) Export income to Australia from international education activity in 2013ndash14 Canberra Australia Retrieved 10th of November 2015

BHP Billiton (2013) Coal Briefing httpwwwbhpbillitoncom~mediabhpdocumentsinvestorsreports2013130529_coalbriefingpdf Retrieved 10th of November 2015

Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

Beyond Zero Emissions (2012) Laggard to Leader How Australia Can Lead the World to Zero Carbon Prosperity Melbourne University Melbourne Victoria Retrieved 10th of November 2015

Beyond Zero Emissions (2014) A Fossil Economy in a Changing World Melbourne University Melbourne Victoria httpmediabzeorgaufossileconomyFossilEconomypdf Retrieved 10th of November 2015

Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

One Million Climate Job Campaign (2015) About London United Kingdom httpclimatejobsorgzaabout Retrieved 10th of November 2015

Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 7: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

JOBS AFTER COAL A Just Transition for Queensland | v

The Queensland government is under pressure from mining corporations and other stakeholders to keep the

coal industry going strong Faced with the challenge of creating an economic vision beyond coal our political

leaders have chosen for too long to capitulate to this pressure The coal industry is in denial about its terminal

decline The question community members are left to ponder is if the industry knew its days were counted

would it still try and squeeze as much support out of the government as possible To try to make as many

subsidised profits as it can before throwing in the towel We canrsquot wait and risk the livelihoods of citizens

in coal communities to find out The alternative for the people of Queensland and the Government is to

admit that the decline is terminal and stop delaying the re-orientation of policy and the economy to support

sustainable industries

Challenges faced by the different mining industry towns are quite different from one another As such the

planning of a just transition requires a diverse and adaptative strategic approach For example the challenges

the mining industry towns of Mackay and Rockhampton are facing are substantially different than the ones

the specifically mining operation towns of Moranbah and Blackwater are facing Different regions with

different levels of economic dependency on coal will require unique transitionary solutions and strategies

These different approaches needed are best understood by and will require leadership from the local

community to have the best chances of success

The economic and geographical difference between thermal and coking coal operations is another significant

complexity Often both coal types will be referred to as one homogenous industry by the media and politicians

This misguided referencing makes having a discussion about the different futures for each industry

difficult Coking coal has a substantially different outlook to thermal coal and needs to be discussed and

considered separately Policy supporting a just transition needs to carefully consider their uniqueness and the

implications this has for planning support resources and initiatives in different coal regions where each type

of coal has a different level of operational and economic intensity

The political conversation about a Just Transition has only just started to emerge Rumblings and whispers

of the actions and policies necessary within the environment and labour movements have been building

momentum Policies are being discussed and cooperatives are being launched throughout Australiarsquos coal

communities Significantly this issue is building important relationships between environment groups and

labour unions that have complimentary objectives within the Just Transition framework Their collaborations

are building a stronger and more cooperative civil society and strengthening the fabric of our democracy It is

hoped that this report will help contribute to this momentum so that some tangible and clear actions are seen

in the very near future

vi | JOBS AFTER COAL A Just Transition for Queensland

Key recommendations for the State Government of Queensland

1 Establishing a unit within the State Government to support coal mining regions to transition to new economies

The unit would

bull Work on the ground in coal mining communities to bring government expertise into regional entities

bull Analyse barriers to the creation of competitive advantages for alternative sustainable industries

bull Identify actions the State Government can take to support sustainable industries

bull Provide research funding to that prioritises low carbon technologies and industry sectors with increased triple bottom line sustainability potential

2 Support community leadership in diversifying local economies through the establishment of democratic regional entities that

bull Lead in the development of their communitiesrsquo transition strategies

bull Researching the transition opportunities and pathways for the community

bull Planning and initiating re-training programs for workers from affected industries

bull Facilitate support programs for new businesses cooperatives and social enterprises based on the needs and strategies of communities

bull To take stock of the existing resources skills and successful businesses on which a new future can be built

bull Run an analysis of the social environmental and economic needs of the community

bull Establish economic diversification projects including value-added local production worker controlled co-operative enterprises and new community-based enterprises

bull Work in collaboration with regional councils and economic development organisations

3 Support researching and communicating how the just transition can take place

bull Providing regular academic standard situational analysis of the global energy markets shifts to keep the public informed about energy market trajectories

bull Support regional entities to research the number of jobs that are dependent on coal the skills of those employed the level of local national and global long- and short-term risk to local mining operations the transferability of jobs to other industries local opportunities for new enterprises and their needs and the local educational and training needs and resources

bull Researching how the transition scenarios could differ depending on the level and relativity of thermal and coking coal industries across coal mining communities

JOBS AFTER COAL A Just Transition for Queensland | vii

4 Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

bull Develop a plan to grow competitive advantage across industries that have potential for sustainability and growth in regional mining communities

bull Organise a State Economic Summit to assess existing industry clusters identify the potential of new and emerging industries consider their competitiveness and key capabilities and identify barriers to increasing competitive advantage

5 Provide social protection of workers their families and incomes

bull Create individual mine employment transition plans in cooperation with mining companies and local communities ready for when mines cease operating

bull Penalising mining companies that do not give adequate notice of their closure or restructuring

bull Subsidising workers at a full living income level for a maximum of four years who do not have adequate employment available to them at the time of redundancy to undertake training for careers that support the establishment of the new economy in their community

6 Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

bull Support and finance Unions to play facilitating roles in community transitions

bull Engage Unions to

- Provide career planning and advice

- Negotiate preferential hiring for displaced workers in the new alternative emerging industries

- Lead the establishment of work controlled cooperatives

7 Provide training opportunities for coal workers and communities

bull Mandating coal mining companies to fund education and training for their workers that give them skills for other industries

bull Funding training programs to assist retrenched workers from the coal industry to attain continued retraining and re-education

viii | JOBS AFTER COAL A Just Transition for Queensland

8 Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

bull Bringing mine site rehabilitation standards in Queensland to global best practice

bull Mandate that mine sales are not made to companies without adequate capital to properly rehabilitate the mine site

bull Increasing mining security deposits to ensure that the full cost of third party mine site rehabilitation is progressively implemented and signed off by governments throughout the life of the mine

bull Ban the sale of mines where rehabilitation responsibilities are not complete or behind schedule

bull Support the nationally coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions described above and more detailed policy changes

9 Remove all subsidies and tax payer funded support to coal mining

bull Review and remove all hidden subsidies to the coal industry within the state government

10 Sound investment and resource revenue management

bull Commission an economic assessment of the possible economic mechanisms and changes to existing policies that could fund the above measures to the extent that will be necessary

bull Set aside a percentage of coal royalties for funding the diversification of coal mining regions

JOBS AFTER COAL A Just Transition for Queensland | 1

1 Coalrsquos current role in the Queensland economy

Coal in the Queensland economyOver the last 30 years the Queensland coal industry has grown substantially to become a significant part of

the Queensland economy and create employment in many regional areas The industry has been concentrated

in the Bowen and Surat Basins throughout rural western and central Queensland The boom for the industry

began in 2005ndash2006 when prices for coal rose by around 400 causing massive industry profits in the

2000s (Stanford 2014) Prices have fallen dramatically since the flow on effects of the global financial crisis

(GFC) slowed down Chinarsquos growth in 2011ndash2012 However prices have remained much higher than the

below US$40tonne that was averaged through the 90s and earlier (Quandlcom 2015)

Queensland coal train

2 | JOBS AFTER COAL A Just Transition for Queensland

Over the last five years since the GFC and later slow down in coal demand the total Queensland coal

production has after decades of growth levelled off at just over 200 million tonnes per annum (Figure 1)

0

50

100

150

200

250

2008ndash09 2009ndash10 2010ndash11 2011ndash12 2012ndash13

Mill

ion

tonn

es

Figure 1 Queensland Coal Production 2008ndash09 to 2012ndash13 Source Queensland Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13

Queensland uses 20 to 25 million tonnes of its mined coal for electricity generation each year (Government

2014) But the rest which is 85 to 90 of the mined coal is exported to countries all over the world and

mainly to Asia In 2013ndash14 33 of the production was thermal coal and 67 was for coking coal production

to make steel (Table 1) Both thermal and coking coal create greenhouse gas emissions when they are burnt

However contrary to government and media perceptions the coal industry is not the sole driving force

behind the Queensland economy As in most modern economies the service industry dominates with 60

of economic output followed by the construction industry with 10 manufacturing at 7 and agriculture

forestry and fishing at 3 (ABS 2014)

An overview of the Queensland coal industry would not be complete without an examination of its level of

foreign ownership By volume 80 of Queenslandrsquos coal production is foreign owned (Government 2013)

This means that a majority of the profits from the operations of these companies are being directed out of

Australia to international shareholders

JOBS AFTER COAL A Just Transition for Queensland | 3

Table 1 Queensland Coal Mining Areas Production and Types 2009ndash10 to 2013ndash14

2009ndash2010 2010ndash2011 2011ndash2012 2012ndash2013 2013ndash2014

Mines operating 56 57 58 59 59

Saleable production Open-cut

Northern 76 450 64 167 62 632 71 268 78 953

Central 63 319 52 637 56 032 63 871 73 801

Southern 39 339 37 423 45 010 43 709 43 651

Total (mt) 179 108 154 227 163 674 178 848 196 405

Underground

Northern 7 642 8 965 9 492 13 266 11 470

Central 18 968 16 642 15 082 14 511 18 433

Total (mt) 26 611 25 606 24 574 27 776 29 903

Coking coal total 125 178 108 731 117 000 131 328 151 571

Thermal coal total 80 540 71 103 71 247 75 296 74 737

State total 205 719 179 834 188 247 206 624 226 309

Source Queensland Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13

Abbot Point

4 | JOBS AFTER COAL A Just Transition for Queensland

Revenue and economic activity generated by the coal Industry

As a nation the coal industry is Australiarsquos second

largest export earner after the iron ore industry Last

year it generated $40 billion which equal to about

12 of export revenue (Cleary 2015) The coal

industry in Queensland will pay around $2 billion

which amounts to 80 of total mining royalties

to the state Government in 2014ndash15 (Campbell

2014) Coal royalties represent around 4 of

Queensland Government revenue (Vorrath 2014)

Similar amounts come from vehicle registrations

and interests on funds saved for superannuation

in addition to long service leave entitlements as

shown in Figure 2 Such figures are not large in the

financial context of running a state government

Despite this the taxation contribution of coal is

incorrectly perceived as significant

The large revenues derived from coal exports

is due to the massive volumes the industry has

reached in recent years Total revenue to the coal

industry from its mining operations amounts to

approximately $25 billion per year that is added

to the economy This is a significant contribution

to Queenslandrsquos economy but one that needs

to be viewed relative to the size of the economy

Queenslandrsquos economy produced output worth

$290 billion in 2012ndash13 meaning the coal

sector accounted for around 7 of production

by value as shown in Figure 3 (right)

Commonwealth grants

Other staterevenue

MV registration

3

4840

54Interest

Coal royalties

Figure 2 Queensland State Government Revenue SourcesSource Queensland Treasury (2014) Queensland State Budget 2014ndash15 Paper 2

Non-mining

Other

2

91

7

Coal

Figure 3 Queensland gross state product coal other mining and non-mining sectors 2012ndash13 Source ABS (2013) Catalogue 52200 Australian National Accounts State Accounts

Coal industry jobs and their locationsThere has been much debate recently as to the exact number of people employed by the coal mining industry

Industry figures have been disputed because of the industryrsquos continual representation and communication

of construction jobs as if they were permanent In addition the industry conspicuously classifies indirect

growth in employment within the local economy as jobs that mining development is responsible for creating

Although in regional mining communities mining employment is high it is relatively small on a statewide

JOBS AFTER COAL A Just Transition for Queensland | 5

level Most recently the industryrsquos employment claims were revealed again in the Australian Land Court

case regarding coal mining development by Indian mining company Adani in the Galilee Basin to have been

exaggerated (Cox 2015) Adanirsquos mine proposal cited the figure of 10000 jobs attached to its development

application but the court was told by Adanirsquos own expert witness that the mine development would only

create 1464 actual jobs throughout the ongoing operation of the mine (Branco 2015)

According to research by The Australia Institute a majority of Queenslanders believe that the mining industry

employs ten times the amount of people it actually does (Campbell 2014) In reality the report shows that

the coal industry only employs 12 of the Queensland workforce (Vorrath 2014) What is significant is how

this employee population is regionally distributed with a majority of the employees residing in the Central

Highlands Isaac and Mackay Regional Council areas (Figure 4)

0

5000

10000

15000

20000

25000

30000

Whitsu

nday

Suns

hine C

oast

Banan

a

Rockh

ampt

on

Brisba

ne

Cent

ral H

ighlan

dsIsa

ac

Macka

yTo

tal

Em

ploy

men

t

Figure 4 Coal jobs by Local Government Area (LGA) in Queensland Top 8Source ABS 2011 Census Coal mining jobs by region in Queensland

SummaryThe coal industry plays a significant role in the Queensland economy but it is by no means irreplaceable As

the next section will show the coal industry has fallen from the lofty heights of its unprecedented profitability

and aggressive hunger for expansion It has come to a slower pace but due to the forecasted change expected

to affect the industry a new approach to planning local economies beyond coal is required

6 | JOBS AFTER COAL A Just Transition for Queensland

2 The drivers of change in the coal industry

Drivers of change The global energy market is in a period of dynamic long-term structural change that will have ongoing

repercussions for energy exporting countries such as Australia Over the last ten years the expansion in gas

the decrease in renewable energy prices the increasing of capital infrastructure costs the demand for cleaner

energy and energy efficiency have all dramatically changed the nature of the global energy economy (Ben

Caldecott 2014)

Coal has been the energy source that has made so many technological advancements through history possible

Although there has been many struggles and social costs along the way The communities workers and

companies that made this progress possible have substantially contributed to the creation of the modern world

Though if there is one thing we know from history it is that empires rise and fall The coal empire is crumbling

As it crumbles it is creating unnecessary instability stress and hardship on communities In communities like

Mackay where income has dropped by 30ndash40 as many other small mining towns people and businesses have

been caught culturally and economically unprepared for this economic shift (Bleby 2013)

Windmill and wind farm

JOBS AFTER COAL A Just Transition for Queensland | 7

2 The drivers of change in the coal industry

Drivers of change The global energy market is in a period of dynamic long-term structural change that will have ongoing

repercussions for energy exporting countries such as Australia Over the last ten years the expansion in gas

the decrease in renewable energy prices the increasing of capital infrastructure costs the demand for cleaner

energy and energy efficiency have all dramatically changed the nature of the global energy economy (Ben

Caldecott 2014)

Coal has been the energy source that has made so many technological advancements through history possible

Although there has been many struggles and social costs along the way The communities workers and

companies that made this progress possible have substantially contributed to the creation of the modern world

Though if there is one thing we know from history it is that empires rise and fall The coal empire is crumbling

As it crumbles it is creating unnecessary instability stress and hardship on communities In communities like

Mackay where income has dropped by 30ndash40 as many other small mining towns people and businesses have

been caught culturally and economically unprepared for this economic shift (Bleby 2013)

It is clear that coal thermal coal especially is no longer good for humanity despite our former Prime Minister

Tony Abbottrsquos fervent belief that it is (Online 2014) WA Premier Colin Barnett heralded last year in his

declaration that coal is in lsquostructural declinersquo (Burrell 2014) He was not wrong In the past 5 years alone the

Dow Jones Total Coal Market index has fallen by 76 (Baker 2014)

The reality is that the world is rapidly shifting away from fossil fuels including countries that are key

importers of Australiarsquos coal and gas China India Japan and South Korea import over 80 of Australiarsquos

export market for coal and gas The reality is that these countries have recently either announced policies to

shift away from these fuels andor initiatives to drastically enhance renewable energy and energy efficiency

(ldquoPolitics of Climate Change in Asiardquo 2015)

The following section of the report analyses the risk of Australia not being prepared economically for changes

that are already taking place As a country and a state our governing political parties continue to pursue

a strategy that assumes our short and long term economic prosperity is dependent on mining Few of our

political leaders are attempting to communicate an economic vision free from the inevitable boom-bust cycles

created by extracting emissions-intensive resources It is also a strategy that assumes energy production and

distribution will continue on as a very centralised process rather than following the great trend of networked

and decentralised distribution that is shaping the 21st century (Riftkin 2015) This strategy is short-sighted

given recent announcements by China and India to phase out fossil fuels and move rapidly towards cleaner

and more distributed energy sources (Rohr 2014)

The international coal priceThe majority of Queenslandrsquos export coal mining industry is dependent on demand for steel making from

the worldrsquos coking or metallurgical coal market This is a market that has been severely impacted by a

combination of actions in China the biggest steel manufacturer in the world Primarily Chinarsquos housing

boom has been slowing down over recent years this in turn has massively reduced the need for steel Most

importantly China is also running a ldquowar on pollutionrdquo that is having direct short- and long-term impacts on

the viability of the coal industry as a whole This has resulted in a campaign of state enforced closures of coal

plants and steel mills especially near the countryrsquos big industrial coastal cities (Ng 2015)

Prices on the international coking coal stock market have plummeted from the all time high of US$330

tonne in late 2011 to a sobering low of US$109tonne in the first quarter of 2015 The outlook still remains

gloomy for the coal sector

With the continued slowdown in the global and Chinese economies the price of iron ore has also collapsed

Prices have dropped by one third in the first quarter of 2015 alone causing at least one Australian mine to

close operations and many others to cancel plans for expansions (Sandersen 2015) Iron ore is closely linked

to the sales of coking coal which is used most commonly to melt iron ore into steel

8 | JOBS AFTER COAL A Just Transition for Queensland

20

14

US

$t

0

100

200

300

400

2005 2007high quality high coking semi-soft coking

2009 2011 2013 2015

Figure 5 Coking Coal Prices 2005ndash2015 (worldcoalcom)

A similar price drop has hit thermal coal used in coal-fired power stations Thermal coal is mined in many

Surat Basin mines and is also found in some Bowen Basin mines where it is an addition to the high quality

coking coal found in the area Significantly the proposed mining development in the Galilee Basin is only

for thermal coal which at a time when coal-fired power stations are being replaced by cleaner options is

alarming (Pacific 2012) Thermal coal was priced at US$120tonne in late 2011 It had plunged to US$73

per tonne by February 2015 and has remained below US$60tonne since May 2015 Chinarsquos new rules of

cutting ash and sulphur content in seaborne coal imports along with increasing tariffs on coal imports has

meant that even Shenhua Chinarsquos biggest coal company cut coal imports in early 2015 (Jenda 2015)

Overall Chinese consumption dipped by 16 in 2014 despite their economic growth of 73

The decade of relentless and largely unplanned investment in Queensland coal mining in times of high prices

led to a massive oversupply against a background of decreasing demand The state and federal governments

failed to slow the industry down so that it did not overshoot an economically sustainable size This has made

the challenge of transitioning out of the industry even harder along with magnifying the pain now faced by

many mining towns (Neubauer 2015) All of this leaves a million-dollar question Is the downshift in [coal]

demand terminal According to Richard Gibbs from the Macquarie Bank it certainly is (Neubauer 2015)

The global coal market is also experiencing competition from renewables and shale gas slow growth and

government policies which are in part driven by the threat of climate change

The growing competition from renewable energy sources has been increasing its impact on the coal industry

by slowly but steadily eroding profits of domestic coal power stationsmdashand thus demand for coalmdashacross the

country (Hewson 2015) In Queensland the state government should be applauded for its 50 renewable

energy target by 2030 which will further add strain to struggling coal power generators (Parkinson 2015)

A more than 50 decline in coal prices has seen most listed coal companies globally to lose 80ndash90 of their

equity market value in the last four years (Buckley 2014) In 2014 the world added more energy generation

capacity from wind power than from coal Overall Europe and America have already cut coal-fired generation

JOBS AFTER COAL A Just Transition for Queensland | 9

capacity by over a fifth in a decade The sun will undoubtedly rise even further for renewable energy in 2015

but for coal there remains a lot further to fallrdquo said a report by the Institute for Energy Economics and

Financial Analysis in January 2015 (Buckley 2015a)

This statement is borne out by the facts

bull In 2014 new global wind installations grew 40 to 46GW led by China and America (Buckley

2015b)

bull In 2014 the US solar installation sector created almost 50 more jobs than the oil and gas pipeline

construction industry (Foundation 2015)

bull From 2000 to 2011 global annual growth in the yearly global installation rate of photovoltaic solar

panels was 40 In 2011 the total amount of global PV capacity installed was 27GW an astonishing

60 growth on 2010 levels (Green 2012)

bull Unsubsidised renewable energy is now cheaper than new coal-fired power in Australia (Paton 2013)

Solar installation

10 | JOBS AFTER COAL A Just Transition for Queensland

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

Coal power station

JOBS AFTER COAL A Just Transition for Queensland | 11

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

The outlook for coal pricesWhile some consider the outlook for coal prices as cyclical in nature and that a turnaround will increases

prices for coal other analysts believe this downward trend based on policies health impacts and concern

about global warming is here to stay

Financial reports from the major mining companies in Australia paint a grim outlook for global metallurgical

coal prices China was once the great hope for coking coal exporters but BHP Billitonrsquos metallurgical coal

market outlook (May 2013) indicated a flattening demand into the future (Billiton 2013 Rohr 2014)

BHP Billiton has warned that the increased usage of scrap metal in furnaces would result in lower growth in

demand for pig iron while greater production from electric arc furnacesmdashwhich use little or no coking coalmdash

are expected to ldquocontribute a significant share of total Chinese steel production by 2030rdquo Although coking

coal will likely remain necessary for steel production for some time as renewable energy sources grow the

efficiency and lower emissions intensity of electric arc furnaces will help them to outcompete coking coal in

the not too distant future Some experts even predict another technology called lsquodirect reduced ironrsquo that uses

gas to make steel could make coking coal redundant within a decade (Macleod 2013)

It is not just China BHP Billiton also cautions that the Indian steel outlook is less certain as steel production

growth has been slower than expected Prices for commodities from iron ore to coal are sinking as Chinarsquos

leadership tries to steer the economy away from debt-fueled property investment and smokestack industries

embracing services and domestic-led consumption At the same time President Xi Jinping is stepping up efforts

to combat pollution The provincial government of Beijing and a number of other major cities have made plans to

ban coal use by 2020 further putting the squeeze on all types of heavy industry (Coulter 2015)

However the outlook is not all dismal for coal everywhere In India demand is expected to continue to rise

without peaking until the 2030s Indiarsquos government predicts a 19 rise in coal imports this year which

may offer very short-term opportunities for Australian miners The opportunities are short term because these

import increases are something the Indian government has indicated it does not want continued into the

future Indiarsquos plan is to ramp up renewable energy technology as well as develop their untapped coal fields

to support a gradual phase out of thermal-coal imports within the next 2ndash3 years (Baker 2014) Regardless

the Indian mining giant Adani still hopes it can get coal from its proposed Carmichael mine in the Galilee

Basin and export it to India for the duration of its 60 year life span After a number of international banks

have ruled out funding for the Carmichael coal mine Adani has been looking for cash handouts from the

Australian Government to fund its shaky proposal However sanity has prevailed and these have been ruled

out by the new Prime Minister (Edis 2015) It is clear the Indian governmentrsquos plan for Indiarsquos future coal

supply sources does not involve Australian coal

12 | JOBS AFTER COAL A Just Transition for Queensland

This is the marketplace in which Australiarsquos exported coal competes and this is the marketplace that holds the

livelihoods of workers and communities in its hands The current state and future outlook of the coal industry

suggests that it would be risky not to scale down the thermal coal industry and at least restrict any new mine

expansions in the coking coal sector There are those who remain positive about the industryrsquos future but

recent events in the coal industry and uncertainty over medium and long term suggest that there are better

industries to back Behind these diverse risks threatening the coal industry is the inescapable scientific

fact that we cannot afford to burn any more coal from new coal mines if we want to decrease the risk of our

already fifty fifty chance of avoiding the worst impacts of global warming (IPCC 2013) If we wanted to try

and remove the total risk of runaway climate change we could not even afford to burn the coal that are sitting

in trucks on trains at port yards and in ships Not even the coal travelling on conveyors into power station

furnaces about to be burnt right this very moment

The carbon bubbleFrom the South Sea Bubble as well as the housing and dotcom bubbles of the last decade periodic over-

investment has been made into sectors deemed too important to fail The rush and hubris of investors seeking

incomparable profits to finance such industries has led to speculative bubbles of over-estimated value that

eventually burst In the economic fallout that results working people carry the burden while the speculators

and profiteers generally are not held accountable Another speculative bubble has formed and it dwarfs the

size of all of the bubbles that have come before it It is called the Carbon Bubble (Tracker 2015)

One of the few things world leaders agreed upon at the Copenhagen climate talks was that the Earth needs to

stay below 2degC warming to minimize the risk of runaway climate change

bull If we are to avoid going over 2degC we can emit only 565 more gigatonnes of carbon dioxide (IPCC 2007)

bull Burning the fossil fuel that corporations now have in their reserves would result in emitting 2795

gigatonnes of carbon dioxidemdashfive times the safe amount (Leaton 2013)

The Intergovernmental Panel on Climate Change has now produced its own carbon budget They have calculated

that if we continue pumping carbon into the atmosphere at todayrsquos rate this budget will be exhausted within

15ndash25 years (IPCC 2013) This means there will be growing political pressure on the fossil fuel industry to

keep most of its reserves in the ground That pressure has already begun around the world Citizens are pressing

their superannuation funds councils banks universities and other institutions to divest from fossil fuels with

growing success The year 2013 saw several major financial institutions recognise the financial and ethical

implications of continuing to finance fossil fuels with Norwegian Storebrand Rabobank and the World Bank

among those who made major announcements on divestment or cutting loans In 2014 major institutions

including Stanford University the Australian National University and Oxford University have divested their fossil

fuel funds (Advisors 2015) So far in 2015 local councils in Australia such as Moreland Newcastle Byron Bay

Melbourne and many more have also divested (Ryan 2015) Divestment is now going mainstream and will have

increasing impacts on fossil fuel company shares into the future

JOBS AFTER COAL A Just Transition for Queensland | 13

As a result of the momentum of the global divestment movement international stock exchanges are creating

new indexes to exclude fossil fuels in preparation of the impending seismic shift in global finances In late

April 2014 the worldrsquos largest fund manager Blackrock joined with the FTSE Group in London to create

a new index The ex-Fossil Fuels Index Series is an innovative set of benchmark indices that excludes

companies directly engaged in extracting so-called ldquostranded assetsrdquo in the hydrocarbons industry ldquoThis

is one of the fastest-moving debates I think Irsquove seen in my 30 years in marketsrdquo FTSE managing director

Kevin Bourne told the Financial Times (Clarke 2014) The Bank of England is now investigating its exposure

to risk from its fossil fuel investments To top that off the worldrsquos biggest sovereign wealth investment fund in

Norway has recently dumped coal investments (Carrington 2015) The largest contribution to climate change

from the fossil fuels in company inventories at present is from coal Because it has the largest climate impact

per unit of useful energy it is being targeted for early phase out

The book value of fossil fuel companies is determined not only by their current infrastructure and deposits

undergoing extraction but also by the size of their legally claimed reserves Because the book value of so

many companies has greatly exceeded their realisable value as emissions restrictions come into place a

speculative bubble has formed Unfortunately bubbles usually burst in the end leaving behind stranded

assets and stranded capitalmdashand leaving workers in the lurch The only alternative is a mature and planned

phase out of the industry that slowly devalues and deregisters fossil fuel reserves at a pace that does not lead

to financial crisis A planned phase out that gives time for just employment transitions for fossil fuel

communities

500

1000886

565

1500

2000

2500

3000

already burnt

remaining

2000ndash2050

2011ndash2050

Coal 2˚Global carbon

budget

Oil

Gas

GtC

O2

Global fossil fuel reserves

Figure 6 Carbontracker 2012 report The Carbon Bubble

14 | JOBS AFTER COAL A Just Transition for Queensland

In 2013 the report Unburnable Carbon highlighted that ldquoCompany valuation and credit ratings

methodologies do not typically inform investors about their exposure to these stranded assetsrdquo (Leaton

2013) This is very troubling when considering that the supporting share value of these reserves was $4

trillion in 2012 and that they serviced $127 trillion in outstanding corporate debt over the same period We

need to challenge these methodologies (Tracker 2015) In a move that signals a step towards the solutions

required the World Bank the European Investment Bank and the US Export-Import Bank have all announced

that they will not fund further coal-fired power plants except in exceptional circumstances As changes in

policy by the major coal consumers the uptake of renewables and the need to stay within the global carbon

budget begin to bite it is high-cost producers who will be squeezed first Australia is considered a high-cost

producer because of our strong industrial relations and wage laws which makes it all the more necessary that

our governments are vigilant and prepared for impending macroeconomic change (Cleary 2015)

SummaryThis is the environment in which the Australian coal industry finds itself Internationally coal is no longer

looking like a safe long-term investment within the context of the rapid changes afoot in the world The coal

industry leaders are either in denial about their industryrsquos future or are determined to squeeze as much profit

as possible until the cost gets worn by workers and their communities (Saunders 2015)

The issues of climate change demands for cleaner air and more efficient new technologies The realities of

the market are revealing coal as the sunset industry it really is This is not an industry Queenslanders can

rely on to create a stable resilient and sustainable economy It cannot be relied upon for future wealth

and future jobs We have been warned by the UN Climate Change Secretariatrsquos Executive Secretary that the

diversification and a managed transition away from coal is what we need to do and we need to heed this

warning (Australian 2015)

JOBS AFTER COAL A Just Transition for Queensland | 15

3 Assessing some of the economic opportunities in mining regions

IntroductionThe great state of Queensland is endowed with sustainable human and environmental resources that have the

potential if we choose to harness it to drive a balanced diverse and resilient economy for generations to

come Diversifying Queenslandrsquos economy to create sensible and stable prosperity beyond the boom and bust

vagaries of the mining industry must be a key objective of the Queensland Government The Newman LNP

Governmentrsquos Queensland Plan headline was lsquoforging diversity and prosperityrsquo (Government 2014) But

throughout Newmanrsquos reign as premier no action was taken Under the new Palaszczuk Labor Government

there has been some effort to support economic diversification across the state This is insufficient because as

of yet nothing has been done to adequately fund facilitate and empower the actual communities where

mining takes place The grassroots Labour Environmental Action Network an organisation within the

Australian Labour Party has called for change At the 2015 Queensland ALP State Conference they put

forward a motion that was passed calling on the state government to prepare a just transition policy before the

next conference (ALP 2015)

Grain harvest

16 | JOBS AFTER COAL A Just Transition for Queensland

Most importantly both major parties have continued their relentless support for further coal mine expansions

that inherently suffocate the process of diversification

With the coal industry forecast to be in a lsquostructural declinersquo by political leaders and bankers alike it is now

essential that the focus for economic development be on industries that can bring sustainable prosperity to

Queensland (Burrell 2014 Robins 2014) In the United Kingdom under Prime Minister Thatcher the world

witnessed the consequences of industries closing without planning and without investment to transition local

communities and industries

The following section of the report outlines how the opportunities for sustainable economic development

are already known Queensland has well-established sectors with bountiful potential in agriculture tourism

manufacturing and education It also has the opportunity to capitalise on a boom in renewable energy and

bio-industrial products to create more sustainable economic sectors These industries are ready to fill the

void that will be and is being left by coal however they lack the support needed to ensure their presence in

mining communities to provide a just transition away from coal where it is most needed

Agriculture and aquacultureCurrently the Queensland agricultural sector is worth near $147 billion and employs over 90000 people

(Queensland Government 2012) The sector has the potential to massively expand its food exports to Asia as

population and economic growth continue to surge in the dynamic economic region Through the competitive

advantage of our proximity to Asia and high-quality produce capabilities agricultural products have become

Queenslandrsquos second largest export earner and have the potential for continued growth (Heath 2014) By

increasing availability of farming technology driving productivity minimising costs and focusing on profitable

premium produce markets the Queensland Agricultural Strategy (2012) aims to double the total value of

production for all agricultural commodities by 2040 With innovative new farming approaches and ecosystem

system management strategies such increases in production are possible in a way which sustainably manages

and regenerates the land

To reduce pressure on fish stocks from home and abroad the promotion of aquaculture could be further

encouraged across the state This industry is worth $10 Million a year (Lucas DLGP 2011) At present

there are several sites located along the coast however research conducted over the last decade has

identified future sites for land based aquaculture Industry consultation aquaculture management training

programs and related issues in developing a workforce need to be considered (Plan 2012) The Queensland

Aquaculture Industry Federation sees the need for continued collaboration between government and other

stakeholders in order for this industry to reach itsrsquo potential as a strong core industry (Federation 2015)

The Department of Employment Economic Development and Innovation is leading the government drive to

JOBS AFTER COAL A Just Transition for Queensland | 17

develop the aquaculture industry This could see a future where aquaculture goes further than just meeting

domestic demand and grow to cater for high value export markets (Lucas DLGP 2011)

New opportunities in animal genetics aquaculture horticulture and bio-processing are driving agriculture

and aquaculture sector growth in new directions Both industries are about creating intergenerational

economic sustainability Choosing these industries that have unlimited potential to sustain our communities

and our ecosystems over mining is choosing long-term jobs over short-term jobs that cannot be passed on to

the next generation The bottom line is that we live in a hungry world and Queensland is well placed to be a

reliable and sustainable source of food to other nations without the agricultural potential we are endowed with

(Government 2014)

Tourism and recreational fishingDespite setbacks due to the high Australian dollar and loss of skilled workers to the mining boom the

tourism industry is still a critical part of the Queensland economy with massive future potential (Dr Tien Duc

Pham 2015) The tourism industry made a significant employment contribution providing 124000 jobs in

2010ndash11 with steady growth in international visitor nights (Deloitte Access Economics 2012) Queensland

has the potential to become a global leader in tourism and ecotourism and by doing so to create more

jobs and revenue (Government 2014) This will be possible similarly as in agriculture by promoting the

experiences available in our natural places and the quality hospitality we can provide to the growing Asian

middle class (Wilson 2013) The Chinese tourism market is seeking clean fresh and new experiences that

Queensland can cater to and is expected to be worth $74 billion by 2020 (Guterres 2014) Significant to

Queenslandrsquos potential in tourism is our ability to expand the tourism industry in the authentically Australian

rural and stunningly beautiful coastal mining communities where new economic activities are most needed

Further mining expansion in such places threatens to do to tourism what the growth in heavy industry did to

Gladstonersquos economic diversity where fishing and tourism are now non-existent

Although sustainably managed fisheries have the potential to provide continued economic prosperity to

Queensland there lies a major opportunity in net free fisheries to develop as tourism industries specifically

in coal mining regions A great recent example of this taking place is the newly established Net Free Zone

between from the Northern end of St Helens beach to Cape Hillsborough (Spelitis 2015) Along with three

other net free zones across the state the extent of the cumulative commercial opportunities for sustainable

tourism the net free zones have created has made it one of the three pillars as part of the 2020 vision for the

Queensland has the opportunity to develop an abundant and resilient agricultural industry that supports the transition to sustainable prosperity

18 | JOBS AFTER COAL A Just Transition for Queensland

Queensland Tourism Industry Council (Council 2015) The Mackay Isaac and Whitsunday (MIW) coal mining

region has excellent accessibility to a variety of fishing pursuits In addition to the new net free zone ther are

five fresh water stocked impoundment fisheries creating opportunities to promote lake beach offshore and

deepwater angling Improvement of accommodation facilities quality of jetties access roads and coordinating

fish trails with regional events could maximise visitation from recreational and tourism markets (Mackay

Tourism Tourism Queensland 2012) Charter fishing operatiors tackle stores campsites motels boat sales

boat building and maintenance all have the opportunity of benefitted from growth from the recreational fishing

tourism industry (Lucas DLGP 2012)

Higher educationOver the past decade millions of international students have visited Queensland for our quality tertiary

institutions and enjoyable lifestyle International education is Queenslandrsquos biggest service export with

nearly $2431 million being generated in 2013ndash14 alone (Australian Government 2014) The majority

of Queensland is strategically located in the latitudinal tropical zone where at a global level more than

50 of the worldrsquos population is forecasted to live by 2050 (Australian Government 2015) This makes

Queenslandrsquos universities well placed to develop the partnerships and research innovations tailored to the

challenges and opportunities of the new tropically-oriented world This will help Queensland and especially

North Queensland to attract increasing levels of international students to be part of our high-quality tropical

research institutions These students will increase spending through tourism support the creation of our own

skilled and globally connected workforce and connect Australia to business networks and opportunities across

the world In 2013ndash14 the Cairns region benefitted to the tune of $1375 million from international students

(McGuiggan 2014) With the right policies these benefits already being experienced primarily in Cairns

Townsville and Brisbane can be spread further across Queensland to make international education a strong

economic driver in transitioning mining communities

Bio-industrial productsAs the world moves away from fossil fuels the demand for cleaner more sustainable fuel sources will grow

(Emissions 2014) By using excess organic matter produced through food production to develop bio-industrial

products Queensland has the potential to export clean and sustainable fuels and bio-plastic materials to the

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Tourism is about experiences not extraction It has the potential to share Queensland beauty with the rest of the world and create sustainable local economies in the process

Queenslandrsquos greatest resource is the minds of its people We can share and co-create our innovations and learning with students from all over the world who want to make Queensland the launch pad for their careers

JOBS AFTER COAL A Just Transition for Queensland | 19

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Sorghum fields

20 | JOBS AFTER COAL A Just Transition for Queensland

Queensland is well placed to develop biofuel products from waste and oil crops such as Pongamia and algae

in addition to using the statersquos advanced sugarcane industry to convert excess cane using efficient cellulosic

processes Recent scientific developments in bio-plastics at the University of Queensland show that as a

state Queensland has the skills and ability to build a bio-industrial products industry that can contribute to a

sustainable economic future (Queensland 2015)

Renewable energyQueensland the sunshine state has enormous potential to generate electricity from the sun wind and waves

in addition to many other abundant renewable energy sources (Green 2012) Renewable energy has for a long

time been the catch cry from environmentalists as the complete solution to creating the jobs necessary to

replace the fossil fuel industry This report has been written partially to show recognition that as much as

renewable energy has the potential to create more jobs and replace fossil fuel domestic energy production it

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Gemasolar solar thermal power station Spain

JOBS AFTER COAL A Just Transition for Queensland | 21

cannot completely replace all of the coal

export industry jobs Numerous studies

show that with strong climate policies

over 7100 jobs can be created in

Queensland through renewable energy

by 2030 (Institute 2011) Thousands of

these jobs will be in regional

Queensland These should be prioritised

for regions where the mining industry

has developed rural communities in

need of new economic opportunities Far

North Queensland is especially suited to

further renewable energy investment

because of its climatic conditions and

because of the expensive transmissions

losses from having energy wired from

southern power sources (Allen 2011)

This makes it essential that government

policy ensures that the fair share of the

$35 billion in potential renewable

energy investment goes to rural mining

communities not only where it is most

needed economically but where it

makes the most business sense

(Department of Employment 2009)

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Queensland has the potential to become a smart sunshine state powered by clean and sustainable renewable energy By doing this we will be creating jobs in rural mining communities where they are needed most and building a foundation for a new sustainable economy

22 | JOBS AFTER COAL A Just Transition for Queensland

4 Community transitions Global case studies

There are communities around the worldwhich have reinvented themselves after the end of coal mining and

developed prosperous economies in doing so It has been a struggle but where there is a level of government

support inspired local leadership and the community is working together to regenerate its economy it has

been possible (Coal 2015) We are not suggesting any of these examples can be directly transferred to

Queensland communities facing the end of coal mining The object of these case studies is not to provide a

blueprint for Mackay Gladstone Rockhampton or mining towns in Central Queensland but to show the

diversity of ideas that have worked in other places that might stimulate our local communities to reinvent

themselves too

Hazelwood coal power station La Trobe Valley Vic

JOBS AFTER COAL A Just Transition for Queensland | 23

La Trobe ValleyIn the brown coal producing region of the La Trobe Valley in Victoria a grassroots transitionary force has been

underway for the past fifteen years Earthworker was set up by union and climate change activists seeking a

real alternative to coal and privately owned business models Earthworker Cooperativersquos mission is to create

jobs that respond to the lsquochallenges of climate change and the need for local job creation by facilitating the

establishment of worker-owned cooperatives hellip in sustainability-focused industriesrsquo (Earthworker 2015)

Their current focus is the establishment of a cooperative producing solar hot water systems in partnership

with an existing business called lsquoEverlast Hydro Systemsrsquo Their goal is to take production to Morwell in the

La Trobe Valley where workers are in need of an alternative to the coal industry The unique cooperative model

has made selling arrangement possible through inserting the option to buy a solar hot water system through

enterprise bargaining agreements

BanwenThe DOVE workshop in Banwen South Wales (Dove 2015) was started by agroup of women who during

the 1984ndash85 coal minersrsquo strike decided that community-based education was the most practical path to

regenerate the local economy Setting up shop in an abandoned mine office they developed a series of adult

education workshops for women Three decades later the DOVE building hosts a diverse set of small-scale

entrepreneurs including a daycare a library a community garden and a cafeacute featuring local foods

OrkneyOrkney like Central Queensland is a relatively isolated place with a scattered population Situated at the

top of Scotland two hours from the mainland by ferry Orcadians like Central Queenslanders often feel

like spectators to what goes on in the rest of their country They also feel vulnerable to central government

decisions and are often irritated by the lack of understanding of island life on the part of distant authoritiesmdash

its particular customs dialect and ways of doing things Since Norse times Orkney islanders burned peat (a

very young form of coal) as their primary fuel source but all the peat has been dug up This traditional way

of life where each farming family had its own peat bank and spent long summer days cutting and drying

peats while sharing picnics as children played is gone Another non-renewable energy source North Sea oil

discovered in the 1970s brought positive and negatives for the island It turned the tide of depopulation but

like the peat banks the oil is depleting and another lsquoend of an erarsquo is approaching Orcadians have woken up

to the fact that they canrsquot continue to hark back to the past and are confronting the issues of a future without

fossil fuels

Over the last three decades European community funding has helped Orkney to equip itself for the green

energy revolution Orkney now plays a global role in the evolution of wave and tidal technologies and

significant research and development work is creating new employment opportunities A high school in

Stromness was converted into the European Marine Energy Centre and is now a world leader providing

developers the opportunity to test full-scale prototypes in the sea The worldrsquos largest single-rotor tidal turbine

24 | JOBS AFTER COAL A Just Transition for Queensland

was the first in Scotland to be connected to the national grid from this centre Marine energy combined with

an expansion of wind turbines means that the island is now self-sufficient in electricity These renewable

energy developments have created jobs in the Orkneys in civil works and erection grid connection and

communications (Stuart 2011)

Investment in renewable energy and its associated RampD has attracted people to live work and study on the

island Islanders used to have to leave to get tertiary education but it is now possible to study for an MSc in

renewable energy at a Heriot Watt University campus in Stromness A new generation of Orcadians have grown

up to see renewable energy as the way of the future something quite ldquonormalrdquo which will provide greater

opportunities for their children to stay on the island with genuine prospects for employment in meaningful

jobs requiring a wide range of skills and qualifications This shows what a community in transition to a low

carbon future can look like

Nord-Pas De CalaisUntil 1986 the north-east region of France Nord-pas de Calais was a major coal mining area It still boasts

huge twin tailings mountains the largest in Europe which have become a tourist attraction It is known

to Australians for the war cemeteries associated with the battle of the Somme in WW1 but it has recently

undergone a remarkable transformation towards a truly sustainable economy Old coal mines at Lens have

been transformed into an art gallery displaying works from the Louvre collection in Paris Hundreds of people

are trained in energy efficiency solar energy and green architecture at a new training centre in nearby Loos-

en-Gohelle

The Chamber of Commerce invited economist and social visionary Jeremy Rifkin of the TIR Consulting

Group and his chief economist Skip Laitner to apply their model of the third industrial revolution to the

district (Riftkin 2015) Rifkinrsquos Third Industrial Revolution combines renewable energy energy efficiency

and the connectivity of the internet Buildings are energy generators and hydrogen is used as energy storage

After working with the community for some time the Master Plan was published in 2013 and envisages

that 100000 new jobs can be created by the transition plan (LLC 2013) Certainly the population has not

declined since mining days and has even slightly increased Inspired local leadership was the key in this

community plus some outside funding to help with the underpinning research

Appalachia (Kentucky)The transition process is just starting here but the community is very organised Kentuckians For The

Commonwealth has been battling the negative effects of coal mining for some decades and is now planning a

transition to ldquobuilding a better future beyond coalrdquo (Commonwealth 2015) Last year they held a conference

in Harlan Kentucky right in the middle of the Appalachian coal fields and invited guests from other US

regions in the same position as well as from Wales It is too soon to see what the outcome of their learning

process will be but they are another example of a community taking its future into its own handsmdashoptimistic

that there is a better future after coal

JOBS AFTER COAL A Just Transition for Queensland | 25

5 A just transition for coal mining communities policy recommendations

The opportunities to transition from unsustainable coal mining to prosperous communities with decent

employment will not just materialise by themselves It will need the political will and the right incentives to

ensure that communities are not left fending for themselves with unemployment increasing and families

in need of long-term welfare But not only is the political will not currently there both major political

parties continue to support the expansion of this sunset industry and by doing so are making the transition

challenges progressively more difficult (Denniss 2012) For too many years governments have uncritically

supported the coal mining sector Entire government departments have been focused on facilitating mining

with tax incentives weakening assessment and approval processes along with providing through tax payer

money established industrial infrastructure to support new projects Government policy often seeks to grow

royalties income by supporting the extraction of as much coal as possible as an escape the challenge of

finding other ways to increase state revenue New sustainable industries in coal communities will need just as

much if not more support while it gets started

We propose that communities local businesses workers unions community groups environment groups

local government and state and federal governments all need to be involved in planning a transition to

alternative forms of economic development and providing new jobs We call this a Just Transition (Anthea

Bill amp Evans1 2008 Brecher 2012) Just Transition is a framework for a fair and sustainable shift to a low

carbon economy proposed by trade unions and supported by environmental NGOs A Just Transition holds

that a shift to a lower carbon economy is vital to avoid dangerous climate change

Bimblebox Nature Refuge

26 | JOBS AFTER COAL A Just Transition for Queensland

Tough targets to cut greenhouse pollution supported by new environmental regulations and emerging carbon

markets will transform the global economy over the next decade These shifts will have major implications

for working people in energy supply industry and transport and for everyone as consumers There is a concern

that significant periods of economic restructuring in the past have often happened in a chaotic fashion

leaving ordinary workers along with their families and communities to bear the brunt of the transition to

new ways of producing wealth A just transition seeks to prevent such injustice becoming a feature of this

transition suggesting that it would not only be morally wrong and socially damaging but would undermine the

credibility of the transition itself and could slow or even halt the changes that must be made

It is through the challenges of communicating the urgency of climate change and other social and

environmental impacts that much of the debate about coal and its consequences for land water and the

climate has become unnecessarily adversarial and polarised Coal mining and power generation communities

deserve acknowledgement and appreciation for all that they have historically and currently contributed to

our country and our economy In communicating the economic shifts that are taking place and facilitating

the necessary transitions the Australian community needs to be respectful of the history and identity of coal

communities Environment groups government unions and the community need to initiate and engage in

the discussions about transitions in an open honest and compassionate manner Only by approaching the

transition in this way can the adversarial nature of the debate be broken down to make way for transformative

mutually respectful and holistic solutions

Whitsundays lsquoHave a Heart for the Reefrsquo

JOBS AFTER COAL A Just Transition for Queensland | 27

A just transition recognises that support for policies are conditional on a fair distribution of the costs and

benefits of those policies across the economy A just transition should also recognise that the creation of

opportunities for active engagement by those affected in determining the future wellbeing of themselves

and their families is essential for the long term empowerment of citizens and communities The following

recommendations have been written with the aim of emphasising such community empowerment as a priority

Recommendations

1) Establishing a unit within the State Government to support coal mining regions to transition to new economies

Specific institutions are needed to develop transition plans They need to have strong government support

and funding regional offices and representation from diverse stakeholders A dedicated unit within the

Department of Infrastructure Local Government and Planning could be established to oversee this work

They could work on the ground in the main coal mining communities to bring government expertise into

regional entities that would develop local plans that involve and empower the whole community This unit

or a connected unit would analyse existing barriers to the creation of competitive advantages for alternative

sustainable industries and would identify actions the State Government can take to support such creation

Any policy and support should come with clear conditions and timeframes These regional entities would

need generous budgets to assist local groups to develop their transition strategies to support research re-

training and the development of new business and community start-up initiatives based on the needs and

strategies of communities The key to communities becoming economically resilient is high levels of autonomy

and freedom in shaping their economic futures Research funding available to the regional entities will be

essential to the empowerment of local leadership Research funding should at least reach the OECD research

funding average and it should prioritise low carbon technologies and industry sectors with increased triple

bottom line sustainability potential

2) Support community leadership in diversifying local economies through the establishment of democratic regional entities

In each mining community a group of traditional and non-traditional community leaders willing to think

beyond lsquoBusiness as Usualrsquo to imagine a better future could be called together to work in collaboration with

and be resourced by the state government managed regional entities mentioned in recommendation one

The leaders would come from diverse backgrounds such as from local governments business associations

unions farming groups renewable energy businesses and educational institutions The objectives of these

leadership groups would be tailored to each community The objectives would in broad terms be to increase

employment in new diverse industries based on sustainable production and publicservice sector job creation

Expert facilitation alongside inclusive and democratic community engagement initiatives would be essential

to ensure the process and environment for creativity and innovation is maximised To develop such groups

it would be necessary to take stock of the existing resources skills and successful businesses on which a

new future can be built In addition an analysis of the social environmental and economic needs of the

28 | JOBS AFTER COAL A Just Transition for Queensland

community would also be beneficial These groups could then establish economic diversification projects

including value-added local production worker controlled co-operative enterprises and new community-

based enterprises that economically empower the local community Activities may also include support for

alternative industries in regard to process restructuring or subsidising the wages of workers displaced from

higher paying traditional industries

3) Support researching and communicating how the just transition can take place

Consistent research is needed on the best options to support the state and national economies to transition

This requires ongoing situational analysis of the global energy market shifts at both government levels In

addition each mining region will need assistance to research the number of jobs that are dependent on coal

the skills of those employed the level of local national and global long- and short-term risk to local mining

operations the transferability of jobs to other industries local opportunities for new enterprises and their

needs and the local educational and training needs and resources A key issue requiring research will be

around how the transitition scenarios differ depending on the level and relativity of thermal and coking coal

industries across coal mining communities The process for sourcing this information at a local and state

government level should be integrated into a policy feedback loop to support cyclical situational analysis and

policy adjustments from all levels of government This research should take place at the state level and be

encouraged at the industry and local level through grants

Mackay Central Queensland

JOBS AFTER COAL A Just Transition for Queensland | 29

4) Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

Many existing Queensland industries including those not highlighted in this report have the potential to

carry Queensland towards a new sustainable economy [sC5]mdashbut they will need support to do so Instead

of continuing to support and lower costs for the coal mining industry we need a plan to grow competitive

advantage across industries that have potential for sustainability and growth in regional mining communities

Along with industry and community organisations the State Government could organise a State Economic

Summit to assess existing industry clusters identify the potential of new and emerging industries consider

their competitiveness and key capabilities and identify barriers to increasing competitive advantage The

findings and recommendations from this Summit could be used to inform the work of the Unit established in

bullet point one above and the research outlined in bullet point two

5) Provide social protection of workers their families and incomes

If mines close suddenly workers need protection for their incomes and social services and possible relocation

even though many miners these days do not live in the communities where they mine Ideally these transition

plans would be developed early enough to ensure that new employment opportunities are in place for them

before mines actually close For many workers this is already too late but if the process begins now there will

be choices available for future retrenched coal workers who live in mining communities and regions Mining

companies could be incentivised andor penalised to give adequate notice to workers and other stakeholders

that closure may be impending and alternative economic opportunities need to be developed

6) Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

Involving the relevant unions in the planning of community transitions can enable them to move towards

becoming more proactive agents helping to plan the transition with critical networks and specific knowledge

about the needs of their members When a coal-fired power station in Washington State USA was scheduled

for closure for environmental reasons unions played a pivotal role persuading environmentalists and others

to delay the closure long enough for a Just Transition to provide different jobs for the workers This made it

possible for the coal resource to be replaced by wind and other renewable generation rather than natural

gasmdasha better environmental outcome and the unions became an active part in the phase out planning

Unions have a heavy workload defending workers rights and pay They need to be supported and financed to

play important roles in community transitions From facilitation and leadership of planning bodies career

planning and advice preferential hiring for displaced workers in the new alternative emerging industries and

leading the establishment of work controlled cooperatives unions have an essential role to play

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

References

ABC Online (2014) Coal lsquogood for humanityrsquo Prime Minister Tony Abbott says at $39b Queensland mine opening httpwwwabcnetaunews2014-10-13coal-is-good-for-humanity-pm-tony-abbott-says5810244 Retrieved 10th of November 2015

After Coal (2015) Community Regeneration West Virginia United States httpaftercoalcomengage-your-community Retrieved 10th of November 2015

Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

Arabella Advisors (2015) Measuring the Growth of the Global Fossil Fuel Divestment and Clean Energy Investment Movement httpwwwarabellaadvisorscomwp-contentuploads201509Measuring-the-Growth-of-the-Divestment-Movementpdf Retrieved 10th of November 2015

Australian Bureau of Statistics (2014) Australian National Accounts State Accounts 2012ndash13 Canberra Australia Retrieved 10th of November 2015

Australian Bureau of Statistics (2015) MackaymdashCensus Employment by IndustrymdashTime Series Australian Government Department of Employment Retrieved 10th of November 2015

Australian Government Department for Education and Training (2015) Draft National Strategy for International Education Canberra Australian Capital Territory Retrieved 10th of November 2015

Australian Government (2014) Export income to Australia from international education activity in 2013ndash14 Canberra Australia Retrieved 10th of November 2015

BHP Billiton (2013) Coal Briefing httpwwwbhpbillitoncom~mediabhpdocumentsinvestorsreports2013130529_coalbriefingpdf Retrieved 10th of November 2015

Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

Beyond Zero Emissions (2012) Laggard to Leader How Australia Can Lead the World to Zero Carbon Prosperity Melbourne University Melbourne Victoria Retrieved 10th of November 2015

Beyond Zero Emissions (2014) A Fossil Economy in a Changing World Melbourne University Melbourne Victoria httpmediabzeorgaufossileconomyFossilEconomypdf Retrieved 10th of November 2015

Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

One Million Climate Job Campaign (2015) About London United Kingdom httpclimatejobsorgzaabout Retrieved 10th of November 2015

Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 8: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

vi | JOBS AFTER COAL A Just Transition for Queensland

Key recommendations for the State Government of Queensland

1 Establishing a unit within the State Government to support coal mining regions to transition to new economies

The unit would

bull Work on the ground in coal mining communities to bring government expertise into regional entities

bull Analyse barriers to the creation of competitive advantages for alternative sustainable industries

bull Identify actions the State Government can take to support sustainable industries

bull Provide research funding to that prioritises low carbon technologies and industry sectors with increased triple bottom line sustainability potential

2 Support community leadership in diversifying local economies through the establishment of democratic regional entities that

bull Lead in the development of their communitiesrsquo transition strategies

bull Researching the transition opportunities and pathways for the community

bull Planning and initiating re-training programs for workers from affected industries

bull Facilitate support programs for new businesses cooperatives and social enterprises based on the needs and strategies of communities

bull To take stock of the existing resources skills and successful businesses on which a new future can be built

bull Run an analysis of the social environmental and economic needs of the community

bull Establish economic diversification projects including value-added local production worker controlled co-operative enterprises and new community-based enterprises

bull Work in collaboration with regional councils and economic development organisations

3 Support researching and communicating how the just transition can take place

bull Providing regular academic standard situational analysis of the global energy markets shifts to keep the public informed about energy market trajectories

bull Support regional entities to research the number of jobs that are dependent on coal the skills of those employed the level of local national and global long- and short-term risk to local mining operations the transferability of jobs to other industries local opportunities for new enterprises and their needs and the local educational and training needs and resources

bull Researching how the transition scenarios could differ depending on the level and relativity of thermal and coking coal industries across coal mining communities

JOBS AFTER COAL A Just Transition for Queensland | vii

4 Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

bull Develop a plan to grow competitive advantage across industries that have potential for sustainability and growth in regional mining communities

bull Organise a State Economic Summit to assess existing industry clusters identify the potential of new and emerging industries consider their competitiveness and key capabilities and identify barriers to increasing competitive advantage

5 Provide social protection of workers their families and incomes

bull Create individual mine employment transition plans in cooperation with mining companies and local communities ready for when mines cease operating

bull Penalising mining companies that do not give adequate notice of their closure or restructuring

bull Subsidising workers at a full living income level for a maximum of four years who do not have adequate employment available to them at the time of redundancy to undertake training for careers that support the establishment of the new economy in their community

6 Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

bull Support and finance Unions to play facilitating roles in community transitions

bull Engage Unions to

- Provide career planning and advice

- Negotiate preferential hiring for displaced workers in the new alternative emerging industries

- Lead the establishment of work controlled cooperatives

7 Provide training opportunities for coal workers and communities

bull Mandating coal mining companies to fund education and training for their workers that give them skills for other industries

bull Funding training programs to assist retrenched workers from the coal industry to attain continued retraining and re-education

viii | JOBS AFTER COAL A Just Transition for Queensland

8 Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

bull Bringing mine site rehabilitation standards in Queensland to global best practice

bull Mandate that mine sales are not made to companies without adequate capital to properly rehabilitate the mine site

bull Increasing mining security deposits to ensure that the full cost of third party mine site rehabilitation is progressively implemented and signed off by governments throughout the life of the mine

bull Ban the sale of mines where rehabilitation responsibilities are not complete or behind schedule

bull Support the nationally coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions described above and more detailed policy changes

9 Remove all subsidies and tax payer funded support to coal mining

bull Review and remove all hidden subsidies to the coal industry within the state government

10 Sound investment and resource revenue management

bull Commission an economic assessment of the possible economic mechanisms and changes to existing policies that could fund the above measures to the extent that will be necessary

bull Set aside a percentage of coal royalties for funding the diversification of coal mining regions

JOBS AFTER COAL A Just Transition for Queensland | 1

1 Coalrsquos current role in the Queensland economy

Coal in the Queensland economyOver the last 30 years the Queensland coal industry has grown substantially to become a significant part of

the Queensland economy and create employment in many regional areas The industry has been concentrated

in the Bowen and Surat Basins throughout rural western and central Queensland The boom for the industry

began in 2005ndash2006 when prices for coal rose by around 400 causing massive industry profits in the

2000s (Stanford 2014) Prices have fallen dramatically since the flow on effects of the global financial crisis

(GFC) slowed down Chinarsquos growth in 2011ndash2012 However prices have remained much higher than the

below US$40tonne that was averaged through the 90s and earlier (Quandlcom 2015)

Queensland coal train

2 | JOBS AFTER COAL A Just Transition for Queensland

Over the last five years since the GFC and later slow down in coal demand the total Queensland coal

production has after decades of growth levelled off at just over 200 million tonnes per annum (Figure 1)

0

50

100

150

200

250

2008ndash09 2009ndash10 2010ndash11 2011ndash12 2012ndash13

Mill

ion

tonn

es

Figure 1 Queensland Coal Production 2008ndash09 to 2012ndash13 Source Queensland Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13

Queensland uses 20 to 25 million tonnes of its mined coal for electricity generation each year (Government

2014) But the rest which is 85 to 90 of the mined coal is exported to countries all over the world and

mainly to Asia In 2013ndash14 33 of the production was thermal coal and 67 was for coking coal production

to make steel (Table 1) Both thermal and coking coal create greenhouse gas emissions when they are burnt

However contrary to government and media perceptions the coal industry is not the sole driving force

behind the Queensland economy As in most modern economies the service industry dominates with 60

of economic output followed by the construction industry with 10 manufacturing at 7 and agriculture

forestry and fishing at 3 (ABS 2014)

An overview of the Queensland coal industry would not be complete without an examination of its level of

foreign ownership By volume 80 of Queenslandrsquos coal production is foreign owned (Government 2013)

This means that a majority of the profits from the operations of these companies are being directed out of

Australia to international shareholders

JOBS AFTER COAL A Just Transition for Queensland | 3

Table 1 Queensland Coal Mining Areas Production and Types 2009ndash10 to 2013ndash14

2009ndash2010 2010ndash2011 2011ndash2012 2012ndash2013 2013ndash2014

Mines operating 56 57 58 59 59

Saleable production Open-cut

Northern 76 450 64 167 62 632 71 268 78 953

Central 63 319 52 637 56 032 63 871 73 801

Southern 39 339 37 423 45 010 43 709 43 651

Total (mt) 179 108 154 227 163 674 178 848 196 405

Underground

Northern 7 642 8 965 9 492 13 266 11 470

Central 18 968 16 642 15 082 14 511 18 433

Total (mt) 26 611 25 606 24 574 27 776 29 903

Coking coal total 125 178 108 731 117 000 131 328 151 571

Thermal coal total 80 540 71 103 71 247 75 296 74 737

State total 205 719 179 834 188 247 206 624 226 309

Source Queensland Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13

Abbot Point

4 | JOBS AFTER COAL A Just Transition for Queensland

Revenue and economic activity generated by the coal Industry

As a nation the coal industry is Australiarsquos second

largest export earner after the iron ore industry Last

year it generated $40 billion which equal to about

12 of export revenue (Cleary 2015) The coal

industry in Queensland will pay around $2 billion

which amounts to 80 of total mining royalties

to the state Government in 2014ndash15 (Campbell

2014) Coal royalties represent around 4 of

Queensland Government revenue (Vorrath 2014)

Similar amounts come from vehicle registrations

and interests on funds saved for superannuation

in addition to long service leave entitlements as

shown in Figure 2 Such figures are not large in the

financial context of running a state government

Despite this the taxation contribution of coal is

incorrectly perceived as significant

The large revenues derived from coal exports

is due to the massive volumes the industry has

reached in recent years Total revenue to the coal

industry from its mining operations amounts to

approximately $25 billion per year that is added

to the economy This is a significant contribution

to Queenslandrsquos economy but one that needs

to be viewed relative to the size of the economy

Queenslandrsquos economy produced output worth

$290 billion in 2012ndash13 meaning the coal

sector accounted for around 7 of production

by value as shown in Figure 3 (right)

Commonwealth grants

Other staterevenue

MV registration

3

4840

54Interest

Coal royalties

Figure 2 Queensland State Government Revenue SourcesSource Queensland Treasury (2014) Queensland State Budget 2014ndash15 Paper 2

Non-mining

Other

2

91

7

Coal

Figure 3 Queensland gross state product coal other mining and non-mining sectors 2012ndash13 Source ABS (2013) Catalogue 52200 Australian National Accounts State Accounts

Coal industry jobs and their locationsThere has been much debate recently as to the exact number of people employed by the coal mining industry

Industry figures have been disputed because of the industryrsquos continual representation and communication

of construction jobs as if they were permanent In addition the industry conspicuously classifies indirect

growth in employment within the local economy as jobs that mining development is responsible for creating

Although in regional mining communities mining employment is high it is relatively small on a statewide

JOBS AFTER COAL A Just Transition for Queensland | 5

level Most recently the industryrsquos employment claims were revealed again in the Australian Land Court

case regarding coal mining development by Indian mining company Adani in the Galilee Basin to have been

exaggerated (Cox 2015) Adanirsquos mine proposal cited the figure of 10000 jobs attached to its development

application but the court was told by Adanirsquos own expert witness that the mine development would only

create 1464 actual jobs throughout the ongoing operation of the mine (Branco 2015)

According to research by The Australia Institute a majority of Queenslanders believe that the mining industry

employs ten times the amount of people it actually does (Campbell 2014) In reality the report shows that

the coal industry only employs 12 of the Queensland workforce (Vorrath 2014) What is significant is how

this employee population is regionally distributed with a majority of the employees residing in the Central

Highlands Isaac and Mackay Regional Council areas (Figure 4)

0

5000

10000

15000

20000

25000

30000

Whitsu

nday

Suns

hine C

oast

Banan

a

Rockh

ampt

on

Brisba

ne

Cent

ral H

ighlan

dsIsa

ac

Macka

yTo

tal

Em

ploy

men

t

Figure 4 Coal jobs by Local Government Area (LGA) in Queensland Top 8Source ABS 2011 Census Coal mining jobs by region in Queensland

SummaryThe coal industry plays a significant role in the Queensland economy but it is by no means irreplaceable As

the next section will show the coal industry has fallen from the lofty heights of its unprecedented profitability

and aggressive hunger for expansion It has come to a slower pace but due to the forecasted change expected

to affect the industry a new approach to planning local economies beyond coal is required

6 | JOBS AFTER COAL A Just Transition for Queensland

2 The drivers of change in the coal industry

Drivers of change The global energy market is in a period of dynamic long-term structural change that will have ongoing

repercussions for energy exporting countries such as Australia Over the last ten years the expansion in gas

the decrease in renewable energy prices the increasing of capital infrastructure costs the demand for cleaner

energy and energy efficiency have all dramatically changed the nature of the global energy economy (Ben

Caldecott 2014)

Coal has been the energy source that has made so many technological advancements through history possible

Although there has been many struggles and social costs along the way The communities workers and

companies that made this progress possible have substantially contributed to the creation of the modern world

Though if there is one thing we know from history it is that empires rise and fall The coal empire is crumbling

As it crumbles it is creating unnecessary instability stress and hardship on communities In communities like

Mackay where income has dropped by 30ndash40 as many other small mining towns people and businesses have

been caught culturally and economically unprepared for this economic shift (Bleby 2013)

Windmill and wind farm

JOBS AFTER COAL A Just Transition for Queensland | 7

2 The drivers of change in the coal industry

Drivers of change The global energy market is in a period of dynamic long-term structural change that will have ongoing

repercussions for energy exporting countries such as Australia Over the last ten years the expansion in gas

the decrease in renewable energy prices the increasing of capital infrastructure costs the demand for cleaner

energy and energy efficiency have all dramatically changed the nature of the global energy economy (Ben

Caldecott 2014)

Coal has been the energy source that has made so many technological advancements through history possible

Although there has been many struggles and social costs along the way The communities workers and

companies that made this progress possible have substantially contributed to the creation of the modern world

Though if there is one thing we know from history it is that empires rise and fall The coal empire is crumbling

As it crumbles it is creating unnecessary instability stress and hardship on communities In communities like

Mackay where income has dropped by 30ndash40 as many other small mining towns people and businesses have

been caught culturally and economically unprepared for this economic shift (Bleby 2013)

It is clear that coal thermal coal especially is no longer good for humanity despite our former Prime Minister

Tony Abbottrsquos fervent belief that it is (Online 2014) WA Premier Colin Barnett heralded last year in his

declaration that coal is in lsquostructural declinersquo (Burrell 2014) He was not wrong In the past 5 years alone the

Dow Jones Total Coal Market index has fallen by 76 (Baker 2014)

The reality is that the world is rapidly shifting away from fossil fuels including countries that are key

importers of Australiarsquos coal and gas China India Japan and South Korea import over 80 of Australiarsquos

export market for coal and gas The reality is that these countries have recently either announced policies to

shift away from these fuels andor initiatives to drastically enhance renewable energy and energy efficiency

(ldquoPolitics of Climate Change in Asiardquo 2015)

The following section of the report analyses the risk of Australia not being prepared economically for changes

that are already taking place As a country and a state our governing political parties continue to pursue

a strategy that assumes our short and long term economic prosperity is dependent on mining Few of our

political leaders are attempting to communicate an economic vision free from the inevitable boom-bust cycles

created by extracting emissions-intensive resources It is also a strategy that assumes energy production and

distribution will continue on as a very centralised process rather than following the great trend of networked

and decentralised distribution that is shaping the 21st century (Riftkin 2015) This strategy is short-sighted

given recent announcements by China and India to phase out fossil fuels and move rapidly towards cleaner

and more distributed energy sources (Rohr 2014)

The international coal priceThe majority of Queenslandrsquos export coal mining industry is dependent on demand for steel making from

the worldrsquos coking or metallurgical coal market This is a market that has been severely impacted by a

combination of actions in China the biggest steel manufacturer in the world Primarily Chinarsquos housing

boom has been slowing down over recent years this in turn has massively reduced the need for steel Most

importantly China is also running a ldquowar on pollutionrdquo that is having direct short- and long-term impacts on

the viability of the coal industry as a whole This has resulted in a campaign of state enforced closures of coal

plants and steel mills especially near the countryrsquos big industrial coastal cities (Ng 2015)

Prices on the international coking coal stock market have plummeted from the all time high of US$330

tonne in late 2011 to a sobering low of US$109tonne in the first quarter of 2015 The outlook still remains

gloomy for the coal sector

With the continued slowdown in the global and Chinese economies the price of iron ore has also collapsed

Prices have dropped by one third in the first quarter of 2015 alone causing at least one Australian mine to

close operations and many others to cancel plans for expansions (Sandersen 2015) Iron ore is closely linked

to the sales of coking coal which is used most commonly to melt iron ore into steel

8 | JOBS AFTER COAL A Just Transition for Queensland

20

14

US

$t

0

100

200

300

400

2005 2007high quality high coking semi-soft coking

2009 2011 2013 2015

Figure 5 Coking Coal Prices 2005ndash2015 (worldcoalcom)

A similar price drop has hit thermal coal used in coal-fired power stations Thermal coal is mined in many

Surat Basin mines and is also found in some Bowen Basin mines where it is an addition to the high quality

coking coal found in the area Significantly the proposed mining development in the Galilee Basin is only

for thermal coal which at a time when coal-fired power stations are being replaced by cleaner options is

alarming (Pacific 2012) Thermal coal was priced at US$120tonne in late 2011 It had plunged to US$73

per tonne by February 2015 and has remained below US$60tonne since May 2015 Chinarsquos new rules of

cutting ash and sulphur content in seaborne coal imports along with increasing tariffs on coal imports has

meant that even Shenhua Chinarsquos biggest coal company cut coal imports in early 2015 (Jenda 2015)

Overall Chinese consumption dipped by 16 in 2014 despite their economic growth of 73

The decade of relentless and largely unplanned investment in Queensland coal mining in times of high prices

led to a massive oversupply against a background of decreasing demand The state and federal governments

failed to slow the industry down so that it did not overshoot an economically sustainable size This has made

the challenge of transitioning out of the industry even harder along with magnifying the pain now faced by

many mining towns (Neubauer 2015) All of this leaves a million-dollar question Is the downshift in [coal]

demand terminal According to Richard Gibbs from the Macquarie Bank it certainly is (Neubauer 2015)

The global coal market is also experiencing competition from renewables and shale gas slow growth and

government policies which are in part driven by the threat of climate change

The growing competition from renewable energy sources has been increasing its impact on the coal industry

by slowly but steadily eroding profits of domestic coal power stationsmdashand thus demand for coalmdashacross the

country (Hewson 2015) In Queensland the state government should be applauded for its 50 renewable

energy target by 2030 which will further add strain to struggling coal power generators (Parkinson 2015)

A more than 50 decline in coal prices has seen most listed coal companies globally to lose 80ndash90 of their

equity market value in the last four years (Buckley 2014) In 2014 the world added more energy generation

capacity from wind power than from coal Overall Europe and America have already cut coal-fired generation

JOBS AFTER COAL A Just Transition for Queensland | 9

capacity by over a fifth in a decade The sun will undoubtedly rise even further for renewable energy in 2015

but for coal there remains a lot further to fallrdquo said a report by the Institute for Energy Economics and

Financial Analysis in January 2015 (Buckley 2015a)

This statement is borne out by the facts

bull In 2014 new global wind installations grew 40 to 46GW led by China and America (Buckley

2015b)

bull In 2014 the US solar installation sector created almost 50 more jobs than the oil and gas pipeline

construction industry (Foundation 2015)

bull From 2000 to 2011 global annual growth in the yearly global installation rate of photovoltaic solar

panels was 40 In 2011 the total amount of global PV capacity installed was 27GW an astonishing

60 growth on 2010 levels (Green 2012)

bull Unsubsidised renewable energy is now cheaper than new coal-fired power in Australia (Paton 2013)

Solar installation

10 | JOBS AFTER COAL A Just Transition for Queensland

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

Coal power station

JOBS AFTER COAL A Just Transition for Queensland | 11

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

The outlook for coal pricesWhile some consider the outlook for coal prices as cyclical in nature and that a turnaround will increases

prices for coal other analysts believe this downward trend based on policies health impacts and concern

about global warming is here to stay

Financial reports from the major mining companies in Australia paint a grim outlook for global metallurgical

coal prices China was once the great hope for coking coal exporters but BHP Billitonrsquos metallurgical coal

market outlook (May 2013) indicated a flattening demand into the future (Billiton 2013 Rohr 2014)

BHP Billiton has warned that the increased usage of scrap metal in furnaces would result in lower growth in

demand for pig iron while greater production from electric arc furnacesmdashwhich use little or no coking coalmdash

are expected to ldquocontribute a significant share of total Chinese steel production by 2030rdquo Although coking

coal will likely remain necessary for steel production for some time as renewable energy sources grow the

efficiency and lower emissions intensity of electric arc furnaces will help them to outcompete coking coal in

the not too distant future Some experts even predict another technology called lsquodirect reduced ironrsquo that uses

gas to make steel could make coking coal redundant within a decade (Macleod 2013)

It is not just China BHP Billiton also cautions that the Indian steel outlook is less certain as steel production

growth has been slower than expected Prices for commodities from iron ore to coal are sinking as Chinarsquos

leadership tries to steer the economy away from debt-fueled property investment and smokestack industries

embracing services and domestic-led consumption At the same time President Xi Jinping is stepping up efforts

to combat pollution The provincial government of Beijing and a number of other major cities have made plans to

ban coal use by 2020 further putting the squeeze on all types of heavy industry (Coulter 2015)

However the outlook is not all dismal for coal everywhere In India demand is expected to continue to rise

without peaking until the 2030s Indiarsquos government predicts a 19 rise in coal imports this year which

may offer very short-term opportunities for Australian miners The opportunities are short term because these

import increases are something the Indian government has indicated it does not want continued into the

future Indiarsquos plan is to ramp up renewable energy technology as well as develop their untapped coal fields

to support a gradual phase out of thermal-coal imports within the next 2ndash3 years (Baker 2014) Regardless

the Indian mining giant Adani still hopes it can get coal from its proposed Carmichael mine in the Galilee

Basin and export it to India for the duration of its 60 year life span After a number of international banks

have ruled out funding for the Carmichael coal mine Adani has been looking for cash handouts from the

Australian Government to fund its shaky proposal However sanity has prevailed and these have been ruled

out by the new Prime Minister (Edis 2015) It is clear the Indian governmentrsquos plan for Indiarsquos future coal

supply sources does not involve Australian coal

12 | JOBS AFTER COAL A Just Transition for Queensland

This is the marketplace in which Australiarsquos exported coal competes and this is the marketplace that holds the

livelihoods of workers and communities in its hands The current state and future outlook of the coal industry

suggests that it would be risky not to scale down the thermal coal industry and at least restrict any new mine

expansions in the coking coal sector There are those who remain positive about the industryrsquos future but

recent events in the coal industry and uncertainty over medium and long term suggest that there are better

industries to back Behind these diverse risks threatening the coal industry is the inescapable scientific

fact that we cannot afford to burn any more coal from new coal mines if we want to decrease the risk of our

already fifty fifty chance of avoiding the worst impacts of global warming (IPCC 2013) If we wanted to try

and remove the total risk of runaway climate change we could not even afford to burn the coal that are sitting

in trucks on trains at port yards and in ships Not even the coal travelling on conveyors into power station

furnaces about to be burnt right this very moment

The carbon bubbleFrom the South Sea Bubble as well as the housing and dotcom bubbles of the last decade periodic over-

investment has been made into sectors deemed too important to fail The rush and hubris of investors seeking

incomparable profits to finance such industries has led to speculative bubbles of over-estimated value that

eventually burst In the economic fallout that results working people carry the burden while the speculators

and profiteers generally are not held accountable Another speculative bubble has formed and it dwarfs the

size of all of the bubbles that have come before it It is called the Carbon Bubble (Tracker 2015)

One of the few things world leaders agreed upon at the Copenhagen climate talks was that the Earth needs to

stay below 2degC warming to minimize the risk of runaway climate change

bull If we are to avoid going over 2degC we can emit only 565 more gigatonnes of carbon dioxide (IPCC 2007)

bull Burning the fossil fuel that corporations now have in their reserves would result in emitting 2795

gigatonnes of carbon dioxidemdashfive times the safe amount (Leaton 2013)

The Intergovernmental Panel on Climate Change has now produced its own carbon budget They have calculated

that if we continue pumping carbon into the atmosphere at todayrsquos rate this budget will be exhausted within

15ndash25 years (IPCC 2013) This means there will be growing political pressure on the fossil fuel industry to

keep most of its reserves in the ground That pressure has already begun around the world Citizens are pressing

their superannuation funds councils banks universities and other institutions to divest from fossil fuels with

growing success The year 2013 saw several major financial institutions recognise the financial and ethical

implications of continuing to finance fossil fuels with Norwegian Storebrand Rabobank and the World Bank

among those who made major announcements on divestment or cutting loans In 2014 major institutions

including Stanford University the Australian National University and Oxford University have divested their fossil

fuel funds (Advisors 2015) So far in 2015 local councils in Australia such as Moreland Newcastle Byron Bay

Melbourne and many more have also divested (Ryan 2015) Divestment is now going mainstream and will have

increasing impacts on fossil fuel company shares into the future

JOBS AFTER COAL A Just Transition for Queensland | 13

As a result of the momentum of the global divestment movement international stock exchanges are creating

new indexes to exclude fossil fuels in preparation of the impending seismic shift in global finances In late

April 2014 the worldrsquos largest fund manager Blackrock joined with the FTSE Group in London to create

a new index The ex-Fossil Fuels Index Series is an innovative set of benchmark indices that excludes

companies directly engaged in extracting so-called ldquostranded assetsrdquo in the hydrocarbons industry ldquoThis

is one of the fastest-moving debates I think Irsquove seen in my 30 years in marketsrdquo FTSE managing director

Kevin Bourne told the Financial Times (Clarke 2014) The Bank of England is now investigating its exposure

to risk from its fossil fuel investments To top that off the worldrsquos biggest sovereign wealth investment fund in

Norway has recently dumped coal investments (Carrington 2015) The largest contribution to climate change

from the fossil fuels in company inventories at present is from coal Because it has the largest climate impact

per unit of useful energy it is being targeted for early phase out

The book value of fossil fuel companies is determined not only by their current infrastructure and deposits

undergoing extraction but also by the size of their legally claimed reserves Because the book value of so

many companies has greatly exceeded their realisable value as emissions restrictions come into place a

speculative bubble has formed Unfortunately bubbles usually burst in the end leaving behind stranded

assets and stranded capitalmdashand leaving workers in the lurch The only alternative is a mature and planned

phase out of the industry that slowly devalues and deregisters fossil fuel reserves at a pace that does not lead

to financial crisis A planned phase out that gives time for just employment transitions for fossil fuel

communities

500

1000886

565

1500

2000

2500

3000

already burnt

remaining

2000ndash2050

2011ndash2050

Coal 2˚Global carbon

budget

Oil

Gas

GtC

O2

Global fossil fuel reserves

Figure 6 Carbontracker 2012 report The Carbon Bubble

14 | JOBS AFTER COAL A Just Transition for Queensland

In 2013 the report Unburnable Carbon highlighted that ldquoCompany valuation and credit ratings

methodologies do not typically inform investors about their exposure to these stranded assetsrdquo (Leaton

2013) This is very troubling when considering that the supporting share value of these reserves was $4

trillion in 2012 and that they serviced $127 trillion in outstanding corporate debt over the same period We

need to challenge these methodologies (Tracker 2015) In a move that signals a step towards the solutions

required the World Bank the European Investment Bank and the US Export-Import Bank have all announced

that they will not fund further coal-fired power plants except in exceptional circumstances As changes in

policy by the major coal consumers the uptake of renewables and the need to stay within the global carbon

budget begin to bite it is high-cost producers who will be squeezed first Australia is considered a high-cost

producer because of our strong industrial relations and wage laws which makes it all the more necessary that

our governments are vigilant and prepared for impending macroeconomic change (Cleary 2015)

SummaryThis is the environment in which the Australian coal industry finds itself Internationally coal is no longer

looking like a safe long-term investment within the context of the rapid changes afoot in the world The coal

industry leaders are either in denial about their industryrsquos future or are determined to squeeze as much profit

as possible until the cost gets worn by workers and their communities (Saunders 2015)

The issues of climate change demands for cleaner air and more efficient new technologies The realities of

the market are revealing coal as the sunset industry it really is This is not an industry Queenslanders can

rely on to create a stable resilient and sustainable economy It cannot be relied upon for future wealth

and future jobs We have been warned by the UN Climate Change Secretariatrsquos Executive Secretary that the

diversification and a managed transition away from coal is what we need to do and we need to heed this

warning (Australian 2015)

JOBS AFTER COAL A Just Transition for Queensland | 15

3 Assessing some of the economic opportunities in mining regions

IntroductionThe great state of Queensland is endowed with sustainable human and environmental resources that have the

potential if we choose to harness it to drive a balanced diverse and resilient economy for generations to

come Diversifying Queenslandrsquos economy to create sensible and stable prosperity beyond the boom and bust

vagaries of the mining industry must be a key objective of the Queensland Government The Newman LNP

Governmentrsquos Queensland Plan headline was lsquoforging diversity and prosperityrsquo (Government 2014) But

throughout Newmanrsquos reign as premier no action was taken Under the new Palaszczuk Labor Government

there has been some effort to support economic diversification across the state This is insufficient because as

of yet nothing has been done to adequately fund facilitate and empower the actual communities where

mining takes place The grassroots Labour Environmental Action Network an organisation within the

Australian Labour Party has called for change At the 2015 Queensland ALP State Conference they put

forward a motion that was passed calling on the state government to prepare a just transition policy before the

next conference (ALP 2015)

Grain harvest

16 | JOBS AFTER COAL A Just Transition for Queensland

Most importantly both major parties have continued their relentless support for further coal mine expansions

that inherently suffocate the process of diversification

With the coal industry forecast to be in a lsquostructural declinersquo by political leaders and bankers alike it is now

essential that the focus for economic development be on industries that can bring sustainable prosperity to

Queensland (Burrell 2014 Robins 2014) In the United Kingdom under Prime Minister Thatcher the world

witnessed the consequences of industries closing without planning and without investment to transition local

communities and industries

The following section of the report outlines how the opportunities for sustainable economic development

are already known Queensland has well-established sectors with bountiful potential in agriculture tourism

manufacturing and education It also has the opportunity to capitalise on a boom in renewable energy and

bio-industrial products to create more sustainable economic sectors These industries are ready to fill the

void that will be and is being left by coal however they lack the support needed to ensure their presence in

mining communities to provide a just transition away from coal where it is most needed

Agriculture and aquacultureCurrently the Queensland agricultural sector is worth near $147 billion and employs over 90000 people

(Queensland Government 2012) The sector has the potential to massively expand its food exports to Asia as

population and economic growth continue to surge in the dynamic economic region Through the competitive

advantage of our proximity to Asia and high-quality produce capabilities agricultural products have become

Queenslandrsquos second largest export earner and have the potential for continued growth (Heath 2014) By

increasing availability of farming technology driving productivity minimising costs and focusing on profitable

premium produce markets the Queensland Agricultural Strategy (2012) aims to double the total value of

production for all agricultural commodities by 2040 With innovative new farming approaches and ecosystem

system management strategies such increases in production are possible in a way which sustainably manages

and regenerates the land

To reduce pressure on fish stocks from home and abroad the promotion of aquaculture could be further

encouraged across the state This industry is worth $10 Million a year (Lucas DLGP 2011) At present

there are several sites located along the coast however research conducted over the last decade has

identified future sites for land based aquaculture Industry consultation aquaculture management training

programs and related issues in developing a workforce need to be considered (Plan 2012) The Queensland

Aquaculture Industry Federation sees the need for continued collaboration between government and other

stakeholders in order for this industry to reach itsrsquo potential as a strong core industry (Federation 2015)

The Department of Employment Economic Development and Innovation is leading the government drive to

JOBS AFTER COAL A Just Transition for Queensland | 17

develop the aquaculture industry This could see a future where aquaculture goes further than just meeting

domestic demand and grow to cater for high value export markets (Lucas DLGP 2011)

New opportunities in animal genetics aquaculture horticulture and bio-processing are driving agriculture

and aquaculture sector growth in new directions Both industries are about creating intergenerational

economic sustainability Choosing these industries that have unlimited potential to sustain our communities

and our ecosystems over mining is choosing long-term jobs over short-term jobs that cannot be passed on to

the next generation The bottom line is that we live in a hungry world and Queensland is well placed to be a

reliable and sustainable source of food to other nations without the agricultural potential we are endowed with

(Government 2014)

Tourism and recreational fishingDespite setbacks due to the high Australian dollar and loss of skilled workers to the mining boom the

tourism industry is still a critical part of the Queensland economy with massive future potential (Dr Tien Duc

Pham 2015) The tourism industry made a significant employment contribution providing 124000 jobs in

2010ndash11 with steady growth in international visitor nights (Deloitte Access Economics 2012) Queensland

has the potential to become a global leader in tourism and ecotourism and by doing so to create more

jobs and revenue (Government 2014) This will be possible similarly as in agriculture by promoting the

experiences available in our natural places and the quality hospitality we can provide to the growing Asian

middle class (Wilson 2013) The Chinese tourism market is seeking clean fresh and new experiences that

Queensland can cater to and is expected to be worth $74 billion by 2020 (Guterres 2014) Significant to

Queenslandrsquos potential in tourism is our ability to expand the tourism industry in the authentically Australian

rural and stunningly beautiful coastal mining communities where new economic activities are most needed

Further mining expansion in such places threatens to do to tourism what the growth in heavy industry did to

Gladstonersquos economic diversity where fishing and tourism are now non-existent

Although sustainably managed fisheries have the potential to provide continued economic prosperity to

Queensland there lies a major opportunity in net free fisheries to develop as tourism industries specifically

in coal mining regions A great recent example of this taking place is the newly established Net Free Zone

between from the Northern end of St Helens beach to Cape Hillsborough (Spelitis 2015) Along with three

other net free zones across the state the extent of the cumulative commercial opportunities for sustainable

tourism the net free zones have created has made it one of the three pillars as part of the 2020 vision for the

Queensland has the opportunity to develop an abundant and resilient agricultural industry that supports the transition to sustainable prosperity

18 | JOBS AFTER COAL A Just Transition for Queensland

Queensland Tourism Industry Council (Council 2015) The Mackay Isaac and Whitsunday (MIW) coal mining

region has excellent accessibility to a variety of fishing pursuits In addition to the new net free zone ther are

five fresh water stocked impoundment fisheries creating opportunities to promote lake beach offshore and

deepwater angling Improvement of accommodation facilities quality of jetties access roads and coordinating

fish trails with regional events could maximise visitation from recreational and tourism markets (Mackay

Tourism Tourism Queensland 2012) Charter fishing operatiors tackle stores campsites motels boat sales

boat building and maintenance all have the opportunity of benefitted from growth from the recreational fishing

tourism industry (Lucas DLGP 2012)

Higher educationOver the past decade millions of international students have visited Queensland for our quality tertiary

institutions and enjoyable lifestyle International education is Queenslandrsquos biggest service export with

nearly $2431 million being generated in 2013ndash14 alone (Australian Government 2014) The majority

of Queensland is strategically located in the latitudinal tropical zone where at a global level more than

50 of the worldrsquos population is forecasted to live by 2050 (Australian Government 2015) This makes

Queenslandrsquos universities well placed to develop the partnerships and research innovations tailored to the

challenges and opportunities of the new tropically-oriented world This will help Queensland and especially

North Queensland to attract increasing levels of international students to be part of our high-quality tropical

research institutions These students will increase spending through tourism support the creation of our own

skilled and globally connected workforce and connect Australia to business networks and opportunities across

the world In 2013ndash14 the Cairns region benefitted to the tune of $1375 million from international students

(McGuiggan 2014) With the right policies these benefits already being experienced primarily in Cairns

Townsville and Brisbane can be spread further across Queensland to make international education a strong

economic driver in transitioning mining communities

Bio-industrial productsAs the world moves away from fossil fuels the demand for cleaner more sustainable fuel sources will grow

(Emissions 2014) By using excess organic matter produced through food production to develop bio-industrial

products Queensland has the potential to export clean and sustainable fuels and bio-plastic materials to the

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Tourism is about experiences not extraction It has the potential to share Queensland beauty with the rest of the world and create sustainable local economies in the process

Queenslandrsquos greatest resource is the minds of its people We can share and co-create our innovations and learning with students from all over the world who want to make Queensland the launch pad for their careers

JOBS AFTER COAL A Just Transition for Queensland | 19

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Sorghum fields

20 | JOBS AFTER COAL A Just Transition for Queensland

Queensland is well placed to develop biofuel products from waste and oil crops such as Pongamia and algae

in addition to using the statersquos advanced sugarcane industry to convert excess cane using efficient cellulosic

processes Recent scientific developments in bio-plastics at the University of Queensland show that as a

state Queensland has the skills and ability to build a bio-industrial products industry that can contribute to a

sustainable economic future (Queensland 2015)

Renewable energyQueensland the sunshine state has enormous potential to generate electricity from the sun wind and waves

in addition to many other abundant renewable energy sources (Green 2012) Renewable energy has for a long

time been the catch cry from environmentalists as the complete solution to creating the jobs necessary to

replace the fossil fuel industry This report has been written partially to show recognition that as much as

renewable energy has the potential to create more jobs and replace fossil fuel domestic energy production it

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Gemasolar solar thermal power station Spain

JOBS AFTER COAL A Just Transition for Queensland | 21

cannot completely replace all of the coal

export industry jobs Numerous studies

show that with strong climate policies

over 7100 jobs can be created in

Queensland through renewable energy

by 2030 (Institute 2011) Thousands of

these jobs will be in regional

Queensland These should be prioritised

for regions where the mining industry

has developed rural communities in

need of new economic opportunities Far

North Queensland is especially suited to

further renewable energy investment

because of its climatic conditions and

because of the expensive transmissions

losses from having energy wired from

southern power sources (Allen 2011)

This makes it essential that government

policy ensures that the fair share of the

$35 billion in potential renewable

energy investment goes to rural mining

communities not only where it is most

needed economically but where it

makes the most business sense

(Department of Employment 2009)

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Queensland has the potential to become a smart sunshine state powered by clean and sustainable renewable energy By doing this we will be creating jobs in rural mining communities where they are needed most and building a foundation for a new sustainable economy

22 | JOBS AFTER COAL A Just Transition for Queensland

4 Community transitions Global case studies

There are communities around the worldwhich have reinvented themselves after the end of coal mining and

developed prosperous economies in doing so It has been a struggle but where there is a level of government

support inspired local leadership and the community is working together to regenerate its economy it has

been possible (Coal 2015) We are not suggesting any of these examples can be directly transferred to

Queensland communities facing the end of coal mining The object of these case studies is not to provide a

blueprint for Mackay Gladstone Rockhampton or mining towns in Central Queensland but to show the

diversity of ideas that have worked in other places that might stimulate our local communities to reinvent

themselves too

Hazelwood coal power station La Trobe Valley Vic

JOBS AFTER COAL A Just Transition for Queensland | 23

La Trobe ValleyIn the brown coal producing region of the La Trobe Valley in Victoria a grassroots transitionary force has been

underway for the past fifteen years Earthworker was set up by union and climate change activists seeking a

real alternative to coal and privately owned business models Earthworker Cooperativersquos mission is to create

jobs that respond to the lsquochallenges of climate change and the need for local job creation by facilitating the

establishment of worker-owned cooperatives hellip in sustainability-focused industriesrsquo (Earthworker 2015)

Their current focus is the establishment of a cooperative producing solar hot water systems in partnership

with an existing business called lsquoEverlast Hydro Systemsrsquo Their goal is to take production to Morwell in the

La Trobe Valley where workers are in need of an alternative to the coal industry The unique cooperative model

has made selling arrangement possible through inserting the option to buy a solar hot water system through

enterprise bargaining agreements

BanwenThe DOVE workshop in Banwen South Wales (Dove 2015) was started by agroup of women who during

the 1984ndash85 coal minersrsquo strike decided that community-based education was the most practical path to

regenerate the local economy Setting up shop in an abandoned mine office they developed a series of adult

education workshops for women Three decades later the DOVE building hosts a diverse set of small-scale

entrepreneurs including a daycare a library a community garden and a cafeacute featuring local foods

OrkneyOrkney like Central Queensland is a relatively isolated place with a scattered population Situated at the

top of Scotland two hours from the mainland by ferry Orcadians like Central Queenslanders often feel

like spectators to what goes on in the rest of their country They also feel vulnerable to central government

decisions and are often irritated by the lack of understanding of island life on the part of distant authoritiesmdash

its particular customs dialect and ways of doing things Since Norse times Orkney islanders burned peat (a

very young form of coal) as their primary fuel source but all the peat has been dug up This traditional way

of life where each farming family had its own peat bank and spent long summer days cutting and drying

peats while sharing picnics as children played is gone Another non-renewable energy source North Sea oil

discovered in the 1970s brought positive and negatives for the island It turned the tide of depopulation but

like the peat banks the oil is depleting and another lsquoend of an erarsquo is approaching Orcadians have woken up

to the fact that they canrsquot continue to hark back to the past and are confronting the issues of a future without

fossil fuels

Over the last three decades European community funding has helped Orkney to equip itself for the green

energy revolution Orkney now plays a global role in the evolution of wave and tidal technologies and

significant research and development work is creating new employment opportunities A high school in

Stromness was converted into the European Marine Energy Centre and is now a world leader providing

developers the opportunity to test full-scale prototypes in the sea The worldrsquos largest single-rotor tidal turbine

24 | JOBS AFTER COAL A Just Transition for Queensland

was the first in Scotland to be connected to the national grid from this centre Marine energy combined with

an expansion of wind turbines means that the island is now self-sufficient in electricity These renewable

energy developments have created jobs in the Orkneys in civil works and erection grid connection and

communications (Stuart 2011)

Investment in renewable energy and its associated RampD has attracted people to live work and study on the

island Islanders used to have to leave to get tertiary education but it is now possible to study for an MSc in

renewable energy at a Heriot Watt University campus in Stromness A new generation of Orcadians have grown

up to see renewable energy as the way of the future something quite ldquonormalrdquo which will provide greater

opportunities for their children to stay on the island with genuine prospects for employment in meaningful

jobs requiring a wide range of skills and qualifications This shows what a community in transition to a low

carbon future can look like

Nord-Pas De CalaisUntil 1986 the north-east region of France Nord-pas de Calais was a major coal mining area It still boasts

huge twin tailings mountains the largest in Europe which have become a tourist attraction It is known

to Australians for the war cemeteries associated with the battle of the Somme in WW1 but it has recently

undergone a remarkable transformation towards a truly sustainable economy Old coal mines at Lens have

been transformed into an art gallery displaying works from the Louvre collection in Paris Hundreds of people

are trained in energy efficiency solar energy and green architecture at a new training centre in nearby Loos-

en-Gohelle

The Chamber of Commerce invited economist and social visionary Jeremy Rifkin of the TIR Consulting

Group and his chief economist Skip Laitner to apply their model of the third industrial revolution to the

district (Riftkin 2015) Rifkinrsquos Third Industrial Revolution combines renewable energy energy efficiency

and the connectivity of the internet Buildings are energy generators and hydrogen is used as energy storage

After working with the community for some time the Master Plan was published in 2013 and envisages

that 100000 new jobs can be created by the transition plan (LLC 2013) Certainly the population has not

declined since mining days and has even slightly increased Inspired local leadership was the key in this

community plus some outside funding to help with the underpinning research

Appalachia (Kentucky)The transition process is just starting here but the community is very organised Kentuckians For The

Commonwealth has been battling the negative effects of coal mining for some decades and is now planning a

transition to ldquobuilding a better future beyond coalrdquo (Commonwealth 2015) Last year they held a conference

in Harlan Kentucky right in the middle of the Appalachian coal fields and invited guests from other US

regions in the same position as well as from Wales It is too soon to see what the outcome of their learning

process will be but they are another example of a community taking its future into its own handsmdashoptimistic

that there is a better future after coal

JOBS AFTER COAL A Just Transition for Queensland | 25

5 A just transition for coal mining communities policy recommendations

The opportunities to transition from unsustainable coal mining to prosperous communities with decent

employment will not just materialise by themselves It will need the political will and the right incentives to

ensure that communities are not left fending for themselves with unemployment increasing and families

in need of long-term welfare But not only is the political will not currently there both major political

parties continue to support the expansion of this sunset industry and by doing so are making the transition

challenges progressively more difficult (Denniss 2012) For too many years governments have uncritically

supported the coal mining sector Entire government departments have been focused on facilitating mining

with tax incentives weakening assessment and approval processes along with providing through tax payer

money established industrial infrastructure to support new projects Government policy often seeks to grow

royalties income by supporting the extraction of as much coal as possible as an escape the challenge of

finding other ways to increase state revenue New sustainable industries in coal communities will need just as

much if not more support while it gets started

We propose that communities local businesses workers unions community groups environment groups

local government and state and federal governments all need to be involved in planning a transition to

alternative forms of economic development and providing new jobs We call this a Just Transition (Anthea

Bill amp Evans1 2008 Brecher 2012) Just Transition is a framework for a fair and sustainable shift to a low

carbon economy proposed by trade unions and supported by environmental NGOs A Just Transition holds

that a shift to a lower carbon economy is vital to avoid dangerous climate change

Bimblebox Nature Refuge

26 | JOBS AFTER COAL A Just Transition for Queensland

Tough targets to cut greenhouse pollution supported by new environmental regulations and emerging carbon

markets will transform the global economy over the next decade These shifts will have major implications

for working people in energy supply industry and transport and for everyone as consumers There is a concern

that significant periods of economic restructuring in the past have often happened in a chaotic fashion

leaving ordinary workers along with their families and communities to bear the brunt of the transition to

new ways of producing wealth A just transition seeks to prevent such injustice becoming a feature of this

transition suggesting that it would not only be morally wrong and socially damaging but would undermine the

credibility of the transition itself and could slow or even halt the changes that must be made

It is through the challenges of communicating the urgency of climate change and other social and

environmental impacts that much of the debate about coal and its consequences for land water and the

climate has become unnecessarily adversarial and polarised Coal mining and power generation communities

deserve acknowledgement and appreciation for all that they have historically and currently contributed to

our country and our economy In communicating the economic shifts that are taking place and facilitating

the necessary transitions the Australian community needs to be respectful of the history and identity of coal

communities Environment groups government unions and the community need to initiate and engage in

the discussions about transitions in an open honest and compassionate manner Only by approaching the

transition in this way can the adversarial nature of the debate be broken down to make way for transformative

mutually respectful and holistic solutions

Whitsundays lsquoHave a Heart for the Reefrsquo

JOBS AFTER COAL A Just Transition for Queensland | 27

A just transition recognises that support for policies are conditional on a fair distribution of the costs and

benefits of those policies across the economy A just transition should also recognise that the creation of

opportunities for active engagement by those affected in determining the future wellbeing of themselves

and their families is essential for the long term empowerment of citizens and communities The following

recommendations have been written with the aim of emphasising such community empowerment as a priority

Recommendations

1) Establishing a unit within the State Government to support coal mining regions to transition to new economies

Specific institutions are needed to develop transition plans They need to have strong government support

and funding regional offices and representation from diverse stakeholders A dedicated unit within the

Department of Infrastructure Local Government and Planning could be established to oversee this work

They could work on the ground in the main coal mining communities to bring government expertise into

regional entities that would develop local plans that involve and empower the whole community This unit

or a connected unit would analyse existing barriers to the creation of competitive advantages for alternative

sustainable industries and would identify actions the State Government can take to support such creation

Any policy and support should come with clear conditions and timeframes These regional entities would

need generous budgets to assist local groups to develop their transition strategies to support research re-

training and the development of new business and community start-up initiatives based on the needs and

strategies of communities The key to communities becoming economically resilient is high levels of autonomy

and freedom in shaping their economic futures Research funding available to the regional entities will be

essential to the empowerment of local leadership Research funding should at least reach the OECD research

funding average and it should prioritise low carbon technologies and industry sectors with increased triple

bottom line sustainability potential

2) Support community leadership in diversifying local economies through the establishment of democratic regional entities

In each mining community a group of traditional and non-traditional community leaders willing to think

beyond lsquoBusiness as Usualrsquo to imagine a better future could be called together to work in collaboration with

and be resourced by the state government managed regional entities mentioned in recommendation one

The leaders would come from diverse backgrounds such as from local governments business associations

unions farming groups renewable energy businesses and educational institutions The objectives of these

leadership groups would be tailored to each community The objectives would in broad terms be to increase

employment in new diverse industries based on sustainable production and publicservice sector job creation

Expert facilitation alongside inclusive and democratic community engagement initiatives would be essential

to ensure the process and environment for creativity and innovation is maximised To develop such groups

it would be necessary to take stock of the existing resources skills and successful businesses on which a

new future can be built In addition an analysis of the social environmental and economic needs of the

28 | JOBS AFTER COAL A Just Transition for Queensland

community would also be beneficial These groups could then establish economic diversification projects

including value-added local production worker controlled co-operative enterprises and new community-

based enterprises that economically empower the local community Activities may also include support for

alternative industries in regard to process restructuring or subsidising the wages of workers displaced from

higher paying traditional industries

3) Support researching and communicating how the just transition can take place

Consistent research is needed on the best options to support the state and national economies to transition

This requires ongoing situational analysis of the global energy market shifts at both government levels In

addition each mining region will need assistance to research the number of jobs that are dependent on coal

the skills of those employed the level of local national and global long- and short-term risk to local mining

operations the transferability of jobs to other industries local opportunities for new enterprises and their

needs and the local educational and training needs and resources A key issue requiring research will be

around how the transitition scenarios differ depending on the level and relativity of thermal and coking coal

industries across coal mining communities The process for sourcing this information at a local and state

government level should be integrated into a policy feedback loop to support cyclical situational analysis and

policy adjustments from all levels of government This research should take place at the state level and be

encouraged at the industry and local level through grants

Mackay Central Queensland

JOBS AFTER COAL A Just Transition for Queensland | 29

4) Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

Many existing Queensland industries including those not highlighted in this report have the potential to

carry Queensland towards a new sustainable economy [sC5]mdashbut they will need support to do so Instead

of continuing to support and lower costs for the coal mining industry we need a plan to grow competitive

advantage across industries that have potential for sustainability and growth in regional mining communities

Along with industry and community organisations the State Government could organise a State Economic

Summit to assess existing industry clusters identify the potential of new and emerging industries consider

their competitiveness and key capabilities and identify barriers to increasing competitive advantage The

findings and recommendations from this Summit could be used to inform the work of the Unit established in

bullet point one above and the research outlined in bullet point two

5) Provide social protection of workers their families and incomes

If mines close suddenly workers need protection for their incomes and social services and possible relocation

even though many miners these days do not live in the communities where they mine Ideally these transition

plans would be developed early enough to ensure that new employment opportunities are in place for them

before mines actually close For many workers this is already too late but if the process begins now there will

be choices available for future retrenched coal workers who live in mining communities and regions Mining

companies could be incentivised andor penalised to give adequate notice to workers and other stakeholders

that closure may be impending and alternative economic opportunities need to be developed

6) Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

Involving the relevant unions in the planning of community transitions can enable them to move towards

becoming more proactive agents helping to plan the transition with critical networks and specific knowledge

about the needs of their members When a coal-fired power station in Washington State USA was scheduled

for closure for environmental reasons unions played a pivotal role persuading environmentalists and others

to delay the closure long enough for a Just Transition to provide different jobs for the workers This made it

possible for the coal resource to be replaced by wind and other renewable generation rather than natural

gasmdasha better environmental outcome and the unions became an active part in the phase out planning

Unions have a heavy workload defending workers rights and pay They need to be supported and financed to

play important roles in community transitions From facilitation and leadership of planning bodies career

planning and advice preferential hiring for displaced workers in the new alternative emerging industries and

leading the establishment of work controlled cooperatives unions have an essential role to play

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

References

ABC Online (2014) Coal lsquogood for humanityrsquo Prime Minister Tony Abbott says at $39b Queensland mine opening httpwwwabcnetaunews2014-10-13coal-is-good-for-humanity-pm-tony-abbott-says5810244 Retrieved 10th of November 2015

After Coal (2015) Community Regeneration West Virginia United States httpaftercoalcomengage-your-community Retrieved 10th of November 2015

Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

Arabella Advisors (2015) Measuring the Growth of the Global Fossil Fuel Divestment and Clean Energy Investment Movement httpwwwarabellaadvisorscomwp-contentuploads201509Measuring-the-Growth-of-the-Divestment-Movementpdf Retrieved 10th of November 2015

Australian Bureau of Statistics (2014) Australian National Accounts State Accounts 2012ndash13 Canberra Australia Retrieved 10th of November 2015

Australian Bureau of Statistics (2015) MackaymdashCensus Employment by IndustrymdashTime Series Australian Government Department of Employment Retrieved 10th of November 2015

Australian Government Department for Education and Training (2015) Draft National Strategy for International Education Canberra Australian Capital Territory Retrieved 10th of November 2015

Australian Government (2014) Export income to Australia from international education activity in 2013ndash14 Canberra Australia Retrieved 10th of November 2015

BHP Billiton (2013) Coal Briefing httpwwwbhpbillitoncom~mediabhpdocumentsinvestorsreports2013130529_coalbriefingpdf Retrieved 10th of November 2015

Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

Beyond Zero Emissions (2012) Laggard to Leader How Australia Can Lead the World to Zero Carbon Prosperity Melbourne University Melbourne Victoria Retrieved 10th of November 2015

Beyond Zero Emissions (2014) A Fossil Economy in a Changing World Melbourne University Melbourne Victoria httpmediabzeorgaufossileconomyFossilEconomypdf Retrieved 10th of November 2015

Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

One Million Climate Job Campaign (2015) About London United Kingdom httpclimatejobsorgzaabout Retrieved 10th of November 2015

Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 9: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

JOBS AFTER COAL A Just Transition for Queensland | vii

4 Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

bull Develop a plan to grow competitive advantage across industries that have potential for sustainability and growth in regional mining communities

bull Organise a State Economic Summit to assess existing industry clusters identify the potential of new and emerging industries consider their competitiveness and key capabilities and identify barriers to increasing competitive advantage

5 Provide social protection of workers their families and incomes

bull Create individual mine employment transition plans in cooperation with mining companies and local communities ready for when mines cease operating

bull Penalising mining companies that do not give adequate notice of their closure or restructuring

bull Subsidising workers at a full living income level for a maximum of four years who do not have adequate employment available to them at the time of redundancy to undertake training for careers that support the establishment of the new economy in their community

6 Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

bull Support and finance Unions to play facilitating roles in community transitions

bull Engage Unions to

- Provide career planning and advice

- Negotiate preferential hiring for displaced workers in the new alternative emerging industries

- Lead the establishment of work controlled cooperatives

7 Provide training opportunities for coal workers and communities

bull Mandating coal mining companies to fund education and training for their workers that give them skills for other industries

bull Funding training programs to assist retrenched workers from the coal industry to attain continued retraining and re-education

viii | JOBS AFTER COAL A Just Transition for Queensland

8 Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

bull Bringing mine site rehabilitation standards in Queensland to global best practice

bull Mandate that mine sales are not made to companies without adequate capital to properly rehabilitate the mine site

bull Increasing mining security deposits to ensure that the full cost of third party mine site rehabilitation is progressively implemented and signed off by governments throughout the life of the mine

bull Ban the sale of mines where rehabilitation responsibilities are not complete or behind schedule

bull Support the nationally coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions described above and more detailed policy changes

9 Remove all subsidies and tax payer funded support to coal mining

bull Review and remove all hidden subsidies to the coal industry within the state government

10 Sound investment and resource revenue management

bull Commission an economic assessment of the possible economic mechanisms and changes to existing policies that could fund the above measures to the extent that will be necessary

bull Set aside a percentage of coal royalties for funding the diversification of coal mining regions

JOBS AFTER COAL A Just Transition for Queensland | 1

1 Coalrsquos current role in the Queensland economy

Coal in the Queensland economyOver the last 30 years the Queensland coal industry has grown substantially to become a significant part of

the Queensland economy and create employment in many regional areas The industry has been concentrated

in the Bowen and Surat Basins throughout rural western and central Queensland The boom for the industry

began in 2005ndash2006 when prices for coal rose by around 400 causing massive industry profits in the

2000s (Stanford 2014) Prices have fallen dramatically since the flow on effects of the global financial crisis

(GFC) slowed down Chinarsquos growth in 2011ndash2012 However prices have remained much higher than the

below US$40tonne that was averaged through the 90s and earlier (Quandlcom 2015)

Queensland coal train

2 | JOBS AFTER COAL A Just Transition for Queensland

Over the last five years since the GFC and later slow down in coal demand the total Queensland coal

production has after decades of growth levelled off at just over 200 million tonnes per annum (Figure 1)

0

50

100

150

200

250

2008ndash09 2009ndash10 2010ndash11 2011ndash12 2012ndash13

Mill

ion

tonn

es

Figure 1 Queensland Coal Production 2008ndash09 to 2012ndash13 Source Queensland Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13

Queensland uses 20 to 25 million tonnes of its mined coal for electricity generation each year (Government

2014) But the rest which is 85 to 90 of the mined coal is exported to countries all over the world and

mainly to Asia In 2013ndash14 33 of the production was thermal coal and 67 was for coking coal production

to make steel (Table 1) Both thermal and coking coal create greenhouse gas emissions when they are burnt

However contrary to government and media perceptions the coal industry is not the sole driving force

behind the Queensland economy As in most modern economies the service industry dominates with 60

of economic output followed by the construction industry with 10 manufacturing at 7 and agriculture

forestry and fishing at 3 (ABS 2014)

An overview of the Queensland coal industry would not be complete without an examination of its level of

foreign ownership By volume 80 of Queenslandrsquos coal production is foreign owned (Government 2013)

This means that a majority of the profits from the operations of these companies are being directed out of

Australia to international shareholders

JOBS AFTER COAL A Just Transition for Queensland | 3

Table 1 Queensland Coal Mining Areas Production and Types 2009ndash10 to 2013ndash14

2009ndash2010 2010ndash2011 2011ndash2012 2012ndash2013 2013ndash2014

Mines operating 56 57 58 59 59

Saleable production Open-cut

Northern 76 450 64 167 62 632 71 268 78 953

Central 63 319 52 637 56 032 63 871 73 801

Southern 39 339 37 423 45 010 43 709 43 651

Total (mt) 179 108 154 227 163 674 178 848 196 405

Underground

Northern 7 642 8 965 9 492 13 266 11 470

Central 18 968 16 642 15 082 14 511 18 433

Total (mt) 26 611 25 606 24 574 27 776 29 903

Coking coal total 125 178 108 731 117 000 131 328 151 571

Thermal coal total 80 540 71 103 71 247 75 296 74 737

State total 205 719 179 834 188 247 206 624 226 309

Source Queensland Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13

Abbot Point

4 | JOBS AFTER COAL A Just Transition for Queensland

Revenue and economic activity generated by the coal Industry

As a nation the coal industry is Australiarsquos second

largest export earner after the iron ore industry Last

year it generated $40 billion which equal to about

12 of export revenue (Cleary 2015) The coal

industry in Queensland will pay around $2 billion

which amounts to 80 of total mining royalties

to the state Government in 2014ndash15 (Campbell

2014) Coal royalties represent around 4 of

Queensland Government revenue (Vorrath 2014)

Similar amounts come from vehicle registrations

and interests on funds saved for superannuation

in addition to long service leave entitlements as

shown in Figure 2 Such figures are not large in the

financial context of running a state government

Despite this the taxation contribution of coal is

incorrectly perceived as significant

The large revenues derived from coal exports

is due to the massive volumes the industry has

reached in recent years Total revenue to the coal

industry from its mining operations amounts to

approximately $25 billion per year that is added

to the economy This is a significant contribution

to Queenslandrsquos economy but one that needs

to be viewed relative to the size of the economy

Queenslandrsquos economy produced output worth

$290 billion in 2012ndash13 meaning the coal

sector accounted for around 7 of production

by value as shown in Figure 3 (right)

Commonwealth grants

Other staterevenue

MV registration

3

4840

54Interest

Coal royalties

Figure 2 Queensland State Government Revenue SourcesSource Queensland Treasury (2014) Queensland State Budget 2014ndash15 Paper 2

Non-mining

Other

2

91

7

Coal

Figure 3 Queensland gross state product coal other mining and non-mining sectors 2012ndash13 Source ABS (2013) Catalogue 52200 Australian National Accounts State Accounts

Coal industry jobs and their locationsThere has been much debate recently as to the exact number of people employed by the coal mining industry

Industry figures have been disputed because of the industryrsquos continual representation and communication

of construction jobs as if they were permanent In addition the industry conspicuously classifies indirect

growth in employment within the local economy as jobs that mining development is responsible for creating

Although in regional mining communities mining employment is high it is relatively small on a statewide

JOBS AFTER COAL A Just Transition for Queensland | 5

level Most recently the industryrsquos employment claims were revealed again in the Australian Land Court

case regarding coal mining development by Indian mining company Adani in the Galilee Basin to have been

exaggerated (Cox 2015) Adanirsquos mine proposal cited the figure of 10000 jobs attached to its development

application but the court was told by Adanirsquos own expert witness that the mine development would only

create 1464 actual jobs throughout the ongoing operation of the mine (Branco 2015)

According to research by The Australia Institute a majority of Queenslanders believe that the mining industry

employs ten times the amount of people it actually does (Campbell 2014) In reality the report shows that

the coal industry only employs 12 of the Queensland workforce (Vorrath 2014) What is significant is how

this employee population is regionally distributed with a majority of the employees residing in the Central

Highlands Isaac and Mackay Regional Council areas (Figure 4)

0

5000

10000

15000

20000

25000

30000

Whitsu

nday

Suns

hine C

oast

Banan

a

Rockh

ampt

on

Brisba

ne

Cent

ral H

ighlan

dsIsa

ac

Macka

yTo

tal

Em

ploy

men

t

Figure 4 Coal jobs by Local Government Area (LGA) in Queensland Top 8Source ABS 2011 Census Coal mining jobs by region in Queensland

SummaryThe coal industry plays a significant role in the Queensland economy but it is by no means irreplaceable As

the next section will show the coal industry has fallen from the lofty heights of its unprecedented profitability

and aggressive hunger for expansion It has come to a slower pace but due to the forecasted change expected

to affect the industry a new approach to planning local economies beyond coal is required

6 | JOBS AFTER COAL A Just Transition for Queensland

2 The drivers of change in the coal industry

Drivers of change The global energy market is in a period of dynamic long-term structural change that will have ongoing

repercussions for energy exporting countries such as Australia Over the last ten years the expansion in gas

the decrease in renewable energy prices the increasing of capital infrastructure costs the demand for cleaner

energy and energy efficiency have all dramatically changed the nature of the global energy economy (Ben

Caldecott 2014)

Coal has been the energy source that has made so many technological advancements through history possible

Although there has been many struggles and social costs along the way The communities workers and

companies that made this progress possible have substantially contributed to the creation of the modern world

Though if there is one thing we know from history it is that empires rise and fall The coal empire is crumbling

As it crumbles it is creating unnecessary instability stress and hardship on communities In communities like

Mackay where income has dropped by 30ndash40 as many other small mining towns people and businesses have

been caught culturally and economically unprepared for this economic shift (Bleby 2013)

Windmill and wind farm

JOBS AFTER COAL A Just Transition for Queensland | 7

2 The drivers of change in the coal industry

Drivers of change The global energy market is in a period of dynamic long-term structural change that will have ongoing

repercussions for energy exporting countries such as Australia Over the last ten years the expansion in gas

the decrease in renewable energy prices the increasing of capital infrastructure costs the demand for cleaner

energy and energy efficiency have all dramatically changed the nature of the global energy economy (Ben

Caldecott 2014)

Coal has been the energy source that has made so many technological advancements through history possible

Although there has been many struggles and social costs along the way The communities workers and

companies that made this progress possible have substantially contributed to the creation of the modern world

Though if there is one thing we know from history it is that empires rise and fall The coal empire is crumbling

As it crumbles it is creating unnecessary instability stress and hardship on communities In communities like

Mackay where income has dropped by 30ndash40 as many other small mining towns people and businesses have

been caught culturally and economically unprepared for this economic shift (Bleby 2013)

It is clear that coal thermal coal especially is no longer good for humanity despite our former Prime Minister

Tony Abbottrsquos fervent belief that it is (Online 2014) WA Premier Colin Barnett heralded last year in his

declaration that coal is in lsquostructural declinersquo (Burrell 2014) He was not wrong In the past 5 years alone the

Dow Jones Total Coal Market index has fallen by 76 (Baker 2014)

The reality is that the world is rapidly shifting away from fossil fuels including countries that are key

importers of Australiarsquos coal and gas China India Japan and South Korea import over 80 of Australiarsquos

export market for coal and gas The reality is that these countries have recently either announced policies to

shift away from these fuels andor initiatives to drastically enhance renewable energy and energy efficiency

(ldquoPolitics of Climate Change in Asiardquo 2015)

The following section of the report analyses the risk of Australia not being prepared economically for changes

that are already taking place As a country and a state our governing political parties continue to pursue

a strategy that assumes our short and long term economic prosperity is dependent on mining Few of our

political leaders are attempting to communicate an economic vision free from the inevitable boom-bust cycles

created by extracting emissions-intensive resources It is also a strategy that assumes energy production and

distribution will continue on as a very centralised process rather than following the great trend of networked

and decentralised distribution that is shaping the 21st century (Riftkin 2015) This strategy is short-sighted

given recent announcements by China and India to phase out fossil fuels and move rapidly towards cleaner

and more distributed energy sources (Rohr 2014)

The international coal priceThe majority of Queenslandrsquos export coal mining industry is dependent on demand for steel making from

the worldrsquos coking or metallurgical coal market This is a market that has been severely impacted by a

combination of actions in China the biggest steel manufacturer in the world Primarily Chinarsquos housing

boom has been slowing down over recent years this in turn has massively reduced the need for steel Most

importantly China is also running a ldquowar on pollutionrdquo that is having direct short- and long-term impacts on

the viability of the coal industry as a whole This has resulted in a campaign of state enforced closures of coal

plants and steel mills especially near the countryrsquos big industrial coastal cities (Ng 2015)

Prices on the international coking coal stock market have plummeted from the all time high of US$330

tonne in late 2011 to a sobering low of US$109tonne in the first quarter of 2015 The outlook still remains

gloomy for the coal sector

With the continued slowdown in the global and Chinese economies the price of iron ore has also collapsed

Prices have dropped by one third in the first quarter of 2015 alone causing at least one Australian mine to

close operations and many others to cancel plans for expansions (Sandersen 2015) Iron ore is closely linked

to the sales of coking coal which is used most commonly to melt iron ore into steel

8 | JOBS AFTER COAL A Just Transition for Queensland

20

14

US

$t

0

100

200

300

400

2005 2007high quality high coking semi-soft coking

2009 2011 2013 2015

Figure 5 Coking Coal Prices 2005ndash2015 (worldcoalcom)

A similar price drop has hit thermal coal used in coal-fired power stations Thermal coal is mined in many

Surat Basin mines and is also found in some Bowen Basin mines where it is an addition to the high quality

coking coal found in the area Significantly the proposed mining development in the Galilee Basin is only

for thermal coal which at a time when coal-fired power stations are being replaced by cleaner options is

alarming (Pacific 2012) Thermal coal was priced at US$120tonne in late 2011 It had plunged to US$73

per tonne by February 2015 and has remained below US$60tonne since May 2015 Chinarsquos new rules of

cutting ash and sulphur content in seaborne coal imports along with increasing tariffs on coal imports has

meant that even Shenhua Chinarsquos biggest coal company cut coal imports in early 2015 (Jenda 2015)

Overall Chinese consumption dipped by 16 in 2014 despite their economic growth of 73

The decade of relentless and largely unplanned investment in Queensland coal mining in times of high prices

led to a massive oversupply against a background of decreasing demand The state and federal governments

failed to slow the industry down so that it did not overshoot an economically sustainable size This has made

the challenge of transitioning out of the industry even harder along with magnifying the pain now faced by

many mining towns (Neubauer 2015) All of this leaves a million-dollar question Is the downshift in [coal]

demand terminal According to Richard Gibbs from the Macquarie Bank it certainly is (Neubauer 2015)

The global coal market is also experiencing competition from renewables and shale gas slow growth and

government policies which are in part driven by the threat of climate change

The growing competition from renewable energy sources has been increasing its impact on the coal industry

by slowly but steadily eroding profits of domestic coal power stationsmdashand thus demand for coalmdashacross the

country (Hewson 2015) In Queensland the state government should be applauded for its 50 renewable

energy target by 2030 which will further add strain to struggling coal power generators (Parkinson 2015)

A more than 50 decline in coal prices has seen most listed coal companies globally to lose 80ndash90 of their

equity market value in the last four years (Buckley 2014) In 2014 the world added more energy generation

capacity from wind power than from coal Overall Europe and America have already cut coal-fired generation

JOBS AFTER COAL A Just Transition for Queensland | 9

capacity by over a fifth in a decade The sun will undoubtedly rise even further for renewable energy in 2015

but for coal there remains a lot further to fallrdquo said a report by the Institute for Energy Economics and

Financial Analysis in January 2015 (Buckley 2015a)

This statement is borne out by the facts

bull In 2014 new global wind installations grew 40 to 46GW led by China and America (Buckley

2015b)

bull In 2014 the US solar installation sector created almost 50 more jobs than the oil and gas pipeline

construction industry (Foundation 2015)

bull From 2000 to 2011 global annual growth in the yearly global installation rate of photovoltaic solar

panels was 40 In 2011 the total amount of global PV capacity installed was 27GW an astonishing

60 growth on 2010 levels (Green 2012)

bull Unsubsidised renewable energy is now cheaper than new coal-fired power in Australia (Paton 2013)

Solar installation

10 | JOBS AFTER COAL A Just Transition for Queensland

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

Coal power station

JOBS AFTER COAL A Just Transition for Queensland | 11

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

The outlook for coal pricesWhile some consider the outlook for coal prices as cyclical in nature and that a turnaround will increases

prices for coal other analysts believe this downward trend based on policies health impacts and concern

about global warming is here to stay

Financial reports from the major mining companies in Australia paint a grim outlook for global metallurgical

coal prices China was once the great hope for coking coal exporters but BHP Billitonrsquos metallurgical coal

market outlook (May 2013) indicated a flattening demand into the future (Billiton 2013 Rohr 2014)

BHP Billiton has warned that the increased usage of scrap metal in furnaces would result in lower growth in

demand for pig iron while greater production from electric arc furnacesmdashwhich use little or no coking coalmdash

are expected to ldquocontribute a significant share of total Chinese steel production by 2030rdquo Although coking

coal will likely remain necessary for steel production for some time as renewable energy sources grow the

efficiency and lower emissions intensity of electric arc furnaces will help them to outcompete coking coal in

the not too distant future Some experts even predict another technology called lsquodirect reduced ironrsquo that uses

gas to make steel could make coking coal redundant within a decade (Macleod 2013)

It is not just China BHP Billiton also cautions that the Indian steel outlook is less certain as steel production

growth has been slower than expected Prices for commodities from iron ore to coal are sinking as Chinarsquos

leadership tries to steer the economy away from debt-fueled property investment and smokestack industries

embracing services and domestic-led consumption At the same time President Xi Jinping is stepping up efforts

to combat pollution The provincial government of Beijing and a number of other major cities have made plans to

ban coal use by 2020 further putting the squeeze on all types of heavy industry (Coulter 2015)

However the outlook is not all dismal for coal everywhere In India demand is expected to continue to rise

without peaking until the 2030s Indiarsquos government predicts a 19 rise in coal imports this year which

may offer very short-term opportunities for Australian miners The opportunities are short term because these

import increases are something the Indian government has indicated it does not want continued into the

future Indiarsquos plan is to ramp up renewable energy technology as well as develop their untapped coal fields

to support a gradual phase out of thermal-coal imports within the next 2ndash3 years (Baker 2014) Regardless

the Indian mining giant Adani still hopes it can get coal from its proposed Carmichael mine in the Galilee

Basin and export it to India for the duration of its 60 year life span After a number of international banks

have ruled out funding for the Carmichael coal mine Adani has been looking for cash handouts from the

Australian Government to fund its shaky proposal However sanity has prevailed and these have been ruled

out by the new Prime Minister (Edis 2015) It is clear the Indian governmentrsquos plan for Indiarsquos future coal

supply sources does not involve Australian coal

12 | JOBS AFTER COAL A Just Transition for Queensland

This is the marketplace in which Australiarsquos exported coal competes and this is the marketplace that holds the

livelihoods of workers and communities in its hands The current state and future outlook of the coal industry

suggests that it would be risky not to scale down the thermal coal industry and at least restrict any new mine

expansions in the coking coal sector There are those who remain positive about the industryrsquos future but

recent events in the coal industry and uncertainty over medium and long term suggest that there are better

industries to back Behind these diverse risks threatening the coal industry is the inescapable scientific

fact that we cannot afford to burn any more coal from new coal mines if we want to decrease the risk of our

already fifty fifty chance of avoiding the worst impacts of global warming (IPCC 2013) If we wanted to try

and remove the total risk of runaway climate change we could not even afford to burn the coal that are sitting

in trucks on trains at port yards and in ships Not even the coal travelling on conveyors into power station

furnaces about to be burnt right this very moment

The carbon bubbleFrom the South Sea Bubble as well as the housing and dotcom bubbles of the last decade periodic over-

investment has been made into sectors deemed too important to fail The rush and hubris of investors seeking

incomparable profits to finance such industries has led to speculative bubbles of over-estimated value that

eventually burst In the economic fallout that results working people carry the burden while the speculators

and profiteers generally are not held accountable Another speculative bubble has formed and it dwarfs the

size of all of the bubbles that have come before it It is called the Carbon Bubble (Tracker 2015)

One of the few things world leaders agreed upon at the Copenhagen climate talks was that the Earth needs to

stay below 2degC warming to minimize the risk of runaway climate change

bull If we are to avoid going over 2degC we can emit only 565 more gigatonnes of carbon dioxide (IPCC 2007)

bull Burning the fossil fuel that corporations now have in their reserves would result in emitting 2795

gigatonnes of carbon dioxidemdashfive times the safe amount (Leaton 2013)

The Intergovernmental Panel on Climate Change has now produced its own carbon budget They have calculated

that if we continue pumping carbon into the atmosphere at todayrsquos rate this budget will be exhausted within

15ndash25 years (IPCC 2013) This means there will be growing political pressure on the fossil fuel industry to

keep most of its reserves in the ground That pressure has already begun around the world Citizens are pressing

their superannuation funds councils banks universities and other institutions to divest from fossil fuels with

growing success The year 2013 saw several major financial institutions recognise the financial and ethical

implications of continuing to finance fossil fuels with Norwegian Storebrand Rabobank and the World Bank

among those who made major announcements on divestment or cutting loans In 2014 major institutions

including Stanford University the Australian National University and Oxford University have divested their fossil

fuel funds (Advisors 2015) So far in 2015 local councils in Australia such as Moreland Newcastle Byron Bay

Melbourne and many more have also divested (Ryan 2015) Divestment is now going mainstream and will have

increasing impacts on fossil fuel company shares into the future

JOBS AFTER COAL A Just Transition for Queensland | 13

As a result of the momentum of the global divestment movement international stock exchanges are creating

new indexes to exclude fossil fuels in preparation of the impending seismic shift in global finances In late

April 2014 the worldrsquos largest fund manager Blackrock joined with the FTSE Group in London to create

a new index The ex-Fossil Fuels Index Series is an innovative set of benchmark indices that excludes

companies directly engaged in extracting so-called ldquostranded assetsrdquo in the hydrocarbons industry ldquoThis

is one of the fastest-moving debates I think Irsquove seen in my 30 years in marketsrdquo FTSE managing director

Kevin Bourne told the Financial Times (Clarke 2014) The Bank of England is now investigating its exposure

to risk from its fossil fuel investments To top that off the worldrsquos biggest sovereign wealth investment fund in

Norway has recently dumped coal investments (Carrington 2015) The largest contribution to climate change

from the fossil fuels in company inventories at present is from coal Because it has the largest climate impact

per unit of useful energy it is being targeted for early phase out

The book value of fossil fuel companies is determined not only by their current infrastructure and deposits

undergoing extraction but also by the size of their legally claimed reserves Because the book value of so

many companies has greatly exceeded their realisable value as emissions restrictions come into place a

speculative bubble has formed Unfortunately bubbles usually burst in the end leaving behind stranded

assets and stranded capitalmdashand leaving workers in the lurch The only alternative is a mature and planned

phase out of the industry that slowly devalues and deregisters fossil fuel reserves at a pace that does not lead

to financial crisis A planned phase out that gives time for just employment transitions for fossil fuel

communities

500

1000886

565

1500

2000

2500

3000

already burnt

remaining

2000ndash2050

2011ndash2050

Coal 2˚Global carbon

budget

Oil

Gas

GtC

O2

Global fossil fuel reserves

Figure 6 Carbontracker 2012 report The Carbon Bubble

14 | JOBS AFTER COAL A Just Transition for Queensland

In 2013 the report Unburnable Carbon highlighted that ldquoCompany valuation and credit ratings

methodologies do not typically inform investors about their exposure to these stranded assetsrdquo (Leaton

2013) This is very troubling when considering that the supporting share value of these reserves was $4

trillion in 2012 and that they serviced $127 trillion in outstanding corporate debt over the same period We

need to challenge these methodologies (Tracker 2015) In a move that signals a step towards the solutions

required the World Bank the European Investment Bank and the US Export-Import Bank have all announced

that they will not fund further coal-fired power plants except in exceptional circumstances As changes in

policy by the major coal consumers the uptake of renewables and the need to stay within the global carbon

budget begin to bite it is high-cost producers who will be squeezed first Australia is considered a high-cost

producer because of our strong industrial relations and wage laws which makes it all the more necessary that

our governments are vigilant and prepared for impending macroeconomic change (Cleary 2015)

SummaryThis is the environment in which the Australian coal industry finds itself Internationally coal is no longer

looking like a safe long-term investment within the context of the rapid changes afoot in the world The coal

industry leaders are either in denial about their industryrsquos future or are determined to squeeze as much profit

as possible until the cost gets worn by workers and their communities (Saunders 2015)

The issues of climate change demands for cleaner air and more efficient new technologies The realities of

the market are revealing coal as the sunset industry it really is This is not an industry Queenslanders can

rely on to create a stable resilient and sustainable economy It cannot be relied upon for future wealth

and future jobs We have been warned by the UN Climate Change Secretariatrsquos Executive Secretary that the

diversification and a managed transition away from coal is what we need to do and we need to heed this

warning (Australian 2015)

JOBS AFTER COAL A Just Transition for Queensland | 15

3 Assessing some of the economic opportunities in mining regions

IntroductionThe great state of Queensland is endowed with sustainable human and environmental resources that have the

potential if we choose to harness it to drive a balanced diverse and resilient economy for generations to

come Diversifying Queenslandrsquos economy to create sensible and stable prosperity beyond the boom and bust

vagaries of the mining industry must be a key objective of the Queensland Government The Newman LNP

Governmentrsquos Queensland Plan headline was lsquoforging diversity and prosperityrsquo (Government 2014) But

throughout Newmanrsquos reign as premier no action was taken Under the new Palaszczuk Labor Government

there has been some effort to support economic diversification across the state This is insufficient because as

of yet nothing has been done to adequately fund facilitate and empower the actual communities where

mining takes place The grassroots Labour Environmental Action Network an organisation within the

Australian Labour Party has called for change At the 2015 Queensland ALP State Conference they put

forward a motion that was passed calling on the state government to prepare a just transition policy before the

next conference (ALP 2015)

Grain harvest

16 | JOBS AFTER COAL A Just Transition for Queensland

Most importantly both major parties have continued their relentless support for further coal mine expansions

that inherently suffocate the process of diversification

With the coal industry forecast to be in a lsquostructural declinersquo by political leaders and bankers alike it is now

essential that the focus for economic development be on industries that can bring sustainable prosperity to

Queensland (Burrell 2014 Robins 2014) In the United Kingdom under Prime Minister Thatcher the world

witnessed the consequences of industries closing without planning and without investment to transition local

communities and industries

The following section of the report outlines how the opportunities for sustainable economic development

are already known Queensland has well-established sectors with bountiful potential in agriculture tourism

manufacturing and education It also has the opportunity to capitalise on a boom in renewable energy and

bio-industrial products to create more sustainable economic sectors These industries are ready to fill the

void that will be and is being left by coal however they lack the support needed to ensure their presence in

mining communities to provide a just transition away from coal where it is most needed

Agriculture and aquacultureCurrently the Queensland agricultural sector is worth near $147 billion and employs over 90000 people

(Queensland Government 2012) The sector has the potential to massively expand its food exports to Asia as

population and economic growth continue to surge in the dynamic economic region Through the competitive

advantage of our proximity to Asia and high-quality produce capabilities agricultural products have become

Queenslandrsquos second largest export earner and have the potential for continued growth (Heath 2014) By

increasing availability of farming technology driving productivity minimising costs and focusing on profitable

premium produce markets the Queensland Agricultural Strategy (2012) aims to double the total value of

production for all agricultural commodities by 2040 With innovative new farming approaches and ecosystem

system management strategies such increases in production are possible in a way which sustainably manages

and regenerates the land

To reduce pressure on fish stocks from home and abroad the promotion of aquaculture could be further

encouraged across the state This industry is worth $10 Million a year (Lucas DLGP 2011) At present

there are several sites located along the coast however research conducted over the last decade has

identified future sites for land based aquaculture Industry consultation aquaculture management training

programs and related issues in developing a workforce need to be considered (Plan 2012) The Queensland

Aquaculture Industry Federation sees the need for continued collaboration between government and other

stakeholders in order for this industry to reach itsrsquo potential as a strong core industry (Federation 2015)

The Department of Employment Economic Development and Innovation is leading the government drive to

JOBS AFTER COAL A Just Transition for Queensland | 17

develop the aquaculture industry This could see a future where aquaculture goes further than just meeting

domestic demand and grow to cater for high value export markets (Lucas DLGP 2011)

New opportunities in animal genetics aquaculture horticulture and bio-processing are driving agriculture

and aquaculture sector growth in new directions Both industries are about creating intergenerational

economic sustainability Choosing these industries that have unlimited potential to sustain our communities

and our ecosystems over mining is choosing long-term jobs over short-term jobs that cannot be passed on to

the next generation The bottom line is that we live in a hungry world and Queensland is well placed to be a

reliable and sustainable source of food to other nations without the agricultural potential we are endowed with

(Government 2014)

Tourism and recreational fishingDespite setbacks due to the high Australian dollar and loss of skilled workers to the mining boom the

tourism industry is still a critical part of the Queensland economy with massive future potential (Dr Tien Duc

Pham 2015) The tourism industry made a significant employment contribution providing 124000 jobs in

2010ndash11 with steady growth in international visitor nights (Deloitte Access Economics 2012) Queensland

has the potential to become a global leader in tourism and ecotourism and by doing so to create more

jobs and revenue (Government 2014) This will be possible similarly as in agriculture by promoting the

experiences available in our natural places and the quality hospitality we can provide to the growing Asian

middle class (Wilson 2013) The Chinese tourism market is seeking clean fresh and new experiences that

Queensland can cater to and is expected to be worth $74 billion by 2020 (Guterres 2014) Significant to

Queenslandrsquos potential in tourism is our ability to expand the tourism industry in the authentically Australian

rural and stunningly beautiful coastal mining communities where new economic activities are most needed

Further mining expansion in such places threatens to do to tourism what the growth in heavy industry did to

Gladstonersquos economic diversity where fishing and tourism are now non-existent

Although sustainably managed fisheries have the potential to provide continued economic prosperity to

Queensland there lies a major opportunity in net free fisheries to develop as tourism industries specifically

in coal mining regions A great recent example of this taking place is the newly established Net Free Zone

between from the Northern end of St Helens beach to Cape Hillsborough (Spelitis 2015) Along with three

other net free zones across the state the extent of the cumulative commercial opportunities for sustainable

tourism the net free zones have created has made it one of the three pillars as part of the 2020 vision for the

Queensland has the opportunity to develop an abundant and resilient agricultural industry that supports the transition to sustainable prosperity

18 | JOBS AFTER COAL A Just Transition for Queensland

Queensland Tourism Industry Council (Council 2015) The Mackay Isaac and Whitsunday (MIW) coal mining

region has excellent accessibility to a variety of fishing pursuits In addition to the new net free zone ther are

five fresh water stocked impoundment fisheries creating opportunities to promote lake beach offshore and

deepwater angling Improvement of accommodation facilities quality of jetties access roads and coordinating

fish trails with regional events could maximise visitation from recreational and tourism markets (Mackay

Tourism Tourism Queensland 2012) Charter fishing operatiors tackle stores campsites motels boat sales

boat building and maintenance all have the opportunity of benefitted from growth from the recreational fishing

tourism industry (Lucas DLGP 2012)

Higher educationOver the past decade millions of international students have visited Queensland for our quality tertiary

institutions and enjoyable lifestyle International education is Queenslandrsquos biggest service export with

nearly $2431 million being generated in 2013ndash14 alone (Australian Government 2014) The majority

of Queensland is strategically located in the latitudinal tropical zone where at a global level more than

50 of the worldrsquos population is forecasted to live by 2050 (Australian Government 2015) This makes

Queenslandrsquos universities well placed to develop the partnerships and research innovations tailored to the

challenges and opportunities of the new tropically-oriented world This will help Queensland and especially

North Queensland to attract increasing levels of international students to be part of our high-quality tropical

research institutions These students will increase spending through tourism support the creation of our own

skilled and globally connected workforce and connect Australia to business networks and opportunities across

the world In 2013ndash14 the Cairns region benefitted to the tune of $1375 million from international students

(McGuiggan 2014) With the right policies these benefits already being experienced primarily in Cairns

Townsville and Brisbane can be spread further across Queensland to make international education a strong

economic driver in transitioning mining communities

Bio-industrial productsAs the world moves away from fossil fuels the demand for cleaner more sustainable fuel sources will grow

(Emissions 2014) By using excess organic matter produced through food production to develop bio-industrial

products Queensland has the potential to export clean and sustainable fuels and bio-plastic materials to the

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Tourism is about experiences not extraction It has the potential to share Queensland beauty with the rest of the world and create sustainable local economies in the process

Queenslandrsquos greatest resource is the minds of its people We can share and co-create our innovations and learning with students from all over the world who want to make Queensland the launch pad for their careers

JOBS AFTER COAL A Just Transition for Queensland | 19

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Sorghum fields

20 | JOBS AFTER COAL A Just Transition for Queensland

Queensland is well placed to develop biofuel products from waste and oil crops such as Pongamia and algae

in addition to using the statersquos advanced sugarcane industry to convert excess cane using efficient cellulosic

processes Recent scientific developments in bio-plastics at the University of Queensland show that as a

state Queensland has the skills and ability to build a bio-industrial products industry that can contribute to a

sustainable economic future (Queensland 2015)

Renewable energyQueensland the sunshine state has enormous potential to generate electricity from the sun wind and waves

in addition to many other abundant renewable energy sources (Green 2012) Renewable energy has for a long

time been the catch cry from environmentalists as the complete solution to creating the jobs necessary to

replace the fossil fuel industry This report has been written partially to show recognition that as much as

renewable energy has the potential to create more jobs and replace fossil fuel domestic energy production it

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Gemasolar solar thermal power station Spain

JOBS AFTER COAL A Just Transition for Queensland | 21

cannot completely replace all of the coal

export industry jobs Numerous studies

show that with strong climate policies

over 7100 jobs can be created in

Queensland through renewable energy

by 2030 (Institute 2011) Thousands of

these jobs will be in regional

Queensland These should be prioritised

for regions where the mining industry

has developed rural communities in

need of new economic opportunities Far

North Queensland is especially suited to

further renewable energy investment

because of its climatic conditions and

because of the expensive transmissions

losses from having energy wired from

southern power sources (Allen 2011)

This makes it essential that government

policy ensures that the fair share of the

$35 billion in potential renewable

energy investment goes to rural mining

communities not only where it is most

needed economically but where it

makes the most business sense

(Department of Employment 2009)

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Queensland has the potential to become a smart sunshine state powered by clean and sustainable renewable energy By doing this we will be creating jobs in rural mining communities where they are needed most and building a foundation for a new sustainable economy

22 | JOBS AFTER COAL A Just Transition for Queensland

4 Community transitions Global case studies

There are communities around the worldwhich have reinvented themselves after the end of coal mining and

developed prosperous economies in doing so It has been a struggle but where there is a level of government

support inspired local leadership and the community is working together to regenerate its economy it has

been possible (Coal 2015) We are not suggesting any of these examples can be directly transferred to

Queensland communities facing the end of coal mining The object of these case studies is not to provide a

blueprint for Mackay Gladstone Rockhampton or mining towns in Central Queensland but to show the

diversity of ideas that have worked in other places that might stimulate our local communities to reinvent

themselves too

Hazelwood coal power station La Trobe Valley Vic

JOBS AFTER COAL A Just Transition for Queensland | 23

La Trobe ValleyIn the brown coal producing region of the La Trobe Valley in Victoria a grassroots transitionary force has been

underway for the past fifteen years Earthworker was set up by union and climate change activists seeking a

real alternative to coal and privately owned business models Earthworker Cooperativersquos mission is to create

jobs that respond to the lsquochallenges of climate change and the need for local job creation by facilitating the

establishment of worker-owned cooperatives hellip in sustainability-focused industriesrsquo (Earthworker 2015)

Their current focus is the establishment of a cooperative producing solar hot water systems in partnership

with an existing business called lsquoEverlast Hydro Systemsrsquo Their goal is to take production to Morwell in the

La Trobe Valley where workers are in need of an alternative to the coal industry The unique cooperative model

has made selling arrangement possible through inserting the option to buy a solar hot water system through

enterprise bargaining agreements

BanwenThe DOVE workshop in Banwen South Wales (Dove 2015) was started by agroup of women who during

the 1984ndash85 coal minersrsquo strike decided that community-based education was the most practical path to

regenerate the local economy Setting up shop in an abandoned mine office they developed a series of adult

education workshops for women Three decades later the DOVE building hosts a diverse set of small-scale

entrepreneurs including a daycare a library a community garden and a cafeacute featuring local foods

OrkneyOrkney like Central Queensland is a relatively isolated place with a scattered population Situated at the

top of Scotland two hours from the mainland by ferry Orcadians like Central Queenslanders often feel

like spectators to what goes on in the rest of their country They also feel vulnerable to central government

decisions and are often irritated by the lack of understanding of island life on the part of distant authoritiesmdash

its particular customs dialect and ways of doing things Since Norse times Orkney islanders burned peat (a

very young form of coal) as their primary fuel source but all the peat has been dug up This traditional way

of life where each farming family had its own peat bank and spent long summer days cutting and drying

peats while sharing picnics as children played is gone Another non-renewable energy source North Sea oil

discovered in the 1970s brought positive and negatives for the island It turned the tide of depopulation but

like the peat banks the oil is depleting and another lsquoend of an erarsquo is approaching Orcadians have woken up

to the fact that they canrsquot continue to hark back to the past and are confronting the issues of a future without

fossil fuels

Over the last three decades European community funding has helped Orkney to equip itself for the green

energy revolution Orkney now plays a global role in the evolution of wave and tidal technologies and

significant research and development work is creating new employment opportunities A high school in

Stromness was converted into the European Marine Energy Centre and is now a world leader providing

developers the opportunity to test full-scale prototypes in the sea The worldrsquos largest single-rotor tidal turbine

24 | JOBS AFTER COAL A Just Transition for Queensland

was the first in Scotland to be connected to the national grid from this centre Marine energy combined with

an expansion of wind turbines means that the island is now self-sufficient in electricity These renewable

energy developments have created jobs in the Orkneys in civil works and erection grid connection and

communications (Stuart 2011)

Investment in renewable energy and its associated RampD has attracted people to live work and study on the

island Islanders used to have to leave to get tertiary education but it is now possible to study for an MSc in

renewable energy at a Heriot Watt University campus in Stromness A new generation of Orcadians have grown

up to see renewable energy as the way of the future something quite ldquonormalrdquo which will provide greater

opportunities for their children to stay on the island with genuine prospects for employment in meaningful

jobs requiring a wide range of skills and qualifications This shows what a community in transition to a low

carbon future can look like

Nord-Pas De CalaisUntil 1986 the north-east region of France Nord-pas de Calais was a major coal mining area It still boasts

huge twin tailings mountains the largest in Europe which have become a tourist attraction It is known

to Australians for the war cemeteries associated with the battle of the Somme in WW1 but it has recently

undergone a remarkable transformation towards a truly sustainable economy Old coal mines at Lens have

been transformed into an art gallery displaying works from the Louvre collection in Paris Hundreds of people

are trained in energy efficiency solar energy and green architecture at a new training centre in nearby Loos-

en-Gohelle

The Chamber of Commerce invited economist and social visionary Jeremy Rifkin of the TIR Consulting

Group and his chief economist Skip Laitner to apply their model of the third industrial revolution to the

district (Riftkin 2015) Rifkinrsquos Third Industrial Revolution combines renewable energy energy efficiency

and the connectivity of the internet Buildings are energy generators and hydrogen is used as energy storage

After working with the community for some time the Master Plan was published in 2013 and envisages

that 100000 new jobs can be created by the transition plan (LLC 2013) Certainly the population has not

declined since mining days and has even slightly increased Inspired local leadership was the key in this

community plus some outside funding to help with the underpinning research

Appalachia (Kentucky)The transition process is just starting here but the community is very organised Kentuckians For The

Commonwealth has been battling the negative effects of coal mining for some decades and is now planning a

transition to ldquobuilding a better future beyond coalrdquo (Commonwealth 2015) Last year they held a conference

in Harlan Kentucky right in the middle of the Appalachian coal fields and invited guests from other US

regions in the same position as well as from Wales It is too soon to see what the outcome of their learning

process will be but they are another example of a community taking its future into its own handsmdashoptimistic

that there is a better future after coal

JOBS AFTER COAL A Just Transition for Queensland | 25

5 A just transition for coal mining communities policy recommendations

The opportunities to transition from unsustainable coal mining to prosperous communities with decent

employment will not just materialise by themselves It will need the political will and the right incentives to

ensure that communities are not left fending for themselves with unemployment increasing and families

in need of long-term welfare But not only is the political will not currently there both major political

parties continue to support the expansion of this sunset industry and by doing so are making the transition

challenges progressively more difficult (Denniss 2012) For too many years governments have uncritically

supported the coal mining sector Entire government departments have been focused on facilitating mining

with tax incentives weakening assessment and approval processes along with providing through tax payer

money established industrial infrastructure to support new projects Government policy often seeks to grow

royalties income by supporting the extraction of as much coal as possible as an escape the challenge of

finding other ways to increase state revenue New sustainable industries in coal communities will need just as

much if not more support while it gets started

We propose that communities local businesses workers unions community groups environment groups

local government and state and federal governments all need to be involved in planning a transition to

alternative forms of economic development and providing new jobs We call this a Just Transition (Anthea

Bill amp Evans1 2008 Brecher 2012) Just Transition is a framework for a fair and sustainable shift to a low

carbon economy proposed by trade unions and supported by environmental NGOs A Just Transition holds

that a shift to a lower carbon economy is vital to avoid dangerous climate change

Bimblebox Nature Refuge

26 | JOBS AFTER COAL A Just Transition for Queensland

Tough targets to cut greenhouse pollution supported by new environmental regulations and emerging carbon

markets will transform the global economy over the next decade These shifts will have major implications

for working people in energy supply industry and transport and for everyone as consumers There is a concern

that significant periods of economic restructuring in the past have often happened in a chaotic fashion

leaving ordinary workers along with their families and communities to bear the brunt of the transition to

new ways of producing wealth A just transition seeks to prevent such injustice becoming a feature of this

transition suggesting that it would not only be morally wrong and socially damaging but would undermine the

credibility of the transition itself and could slow or even halt the changes that must be made

It is through the challenges of communicating the urgency of climate change and other social and

environmental impacts that much of the debate about coal and its consequences for land water and the

climate has become unnecessarily adversarial and polarised Coal mining and power generation communities

deserve acknowledgement and appreciation for all that they have historically and currently contributed to

our country and our economy In communicating the economic shifts that are taking place and facilitating

the necessary transitions the Australian community needs to be respectful of the history and identity of coal

communities Environment groups government unions and the community need to initiate and engage in

the discussions about transitions in an open honest and compassionate manner Only by approaching the

transition in this way can the adversarial nature of the debate be broken down to make way for transformative

mutually respectful and holistic solutions

Whitsundays lsquoHave a Heart for the Reefrsquo

JOBS AFTER COAL A Just Transition for Queensland | 27

A just transition recognises that support for policies are conditional on a fair distribution of the costs and

benefits of those policies across the economy A just transition should also recognise that the creation of

opportunities for active engagement by those affected in determining the future wellbeing of themselves

and their families is essential for the long term empowerment of citizens and communities The following

recommendations have been written with the aim of emphasising such community empowerment as a priority

Recommendations

1) Establishing a unit within the State Government to support coal mining regions to transition to new economies

Specific institutions are needed to develop transition plans They need to have strong government support

and funding regional offices and representation from diverse stakeholders A dedicated unit within the

Department of Infrastructure Local Government and Planning could be established to oversee this work

They could work on the ground in the main coal mining communities to bring government expertise into

regional entities that would develop local plans that involve and empower the whole community This unit

or a connected unit would analyse existing barriers to the creation of competitive advantages for alternative

sustainable industries and would identify actions the State Government can take to support such creation

Any policy and support should come with clear conditions and timeframes These regional entities would

need generous budgets to assist local groups to develop their transition strategies to support research re-

training and the development of new business and community start-up initiatives based on the needs and

strategies of communities The key to communities becoming economically resilient is high levels of autonomy

and freedom in shaping their economic futures Research funding available to the regional entities will be

essential to the empowerment of local leadership Research funding should at least reach the OECD research

funding average and it should prioritise low carbon technologies and industry sectors with increased triple

bottom line sustainability potential

2) Support community leadership in diversifying local economies through the establishment of democratic regional entities

In each mining community a group of traditional and non-traditional community leaders willing to think

beyond lsquoBusiness as Usualrsquo to imagine a better future could be called together to work in collaboration with

and be resourced by the state government managed regional entities mentioned in recommendation one

The leaders would come from diverse backgrounds such as from local governments business associations

unions farming groups renewable energy businesses and educational institutions The objectives of these

leadership groups would be tailored to each community The objectives would in broad terms be to increase

employment in new diverse industries based on sustainable production and publicservice sector job creation

Expert facilitation alongside inclusive and democratic community engagement initiatives would be essential

to ensure the process and environment for creativity and innovation is maximised To develop such groups

it would be necessary to take stock of the existing resources skills and successful businesses on which a

new future can be built In addition an analysis of the social environmental and economic needs of the

28 | JOBS AFTER COAL A Just Transition for Queensland

community would also be beneficial These groups could then establish economic diversification projects

including value-added local production worker controlled co-operative enterprises and new community-

based enterprises that economically empower the local community Activities may also include support for

alternative industries in regard to process restructuring or subsidising the wages of workers displaced from

higher paying traditional industries

3) Support researching and communicating how the just transition can take place

Consistent research is needed on the best options to support the state and national economies to transition

This requires ongoing situational analysis of the global energy market shifts at both government levels In

addition each mining region will need assistance to research the number of jobs that are dependent on coal

the skills of those employed the level of local national and global long- and short-term risk to local mining

operations the transferability of jobs to other industries local opportunities for new enterprises and their

needs and the local educational and training needs and resources A key issue requiring research will be

around how the transitition scenarios differ depending on the level and relativity of thermal and coking coal

industries across coal mining communities The process for sourcing this information at a local and state

government level should be integrated into a policy feedback loop to support cyclical situational analysis and

policy adjustments from all levels of government This research should take place at the state level and be

encouraged at the industry and local level through grants

Mackay Central Queensland

JOBS AFTER COAL A Just Transition for Queensland | 29

4) Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

Many existing Queensland industries including those not highlighted in this report have the potential to

carry Queensland towards a new sustainable economy [sC5]mdashbut they will need support to do so Instead

of continuing to support and lower costs for the coal mining industry we need a plan to grow competitive

advantage across industries that have potential for sustainability and growth in regional mining communities

Along with industry and community organisations the State Government could organise a State Economic

Summit to assess existing industry clusters identify the potential of new and emerging industries consider

their competitiveness and key capabilities and identify barriers to increasing competitive advantage The

findings and recommendations from this Summit could be used to inform the work of the Unit established in

bullet point one above and the research outlined in bullet point two

5) Provide social protection of workers their families and incomes

If mines close suddenly workers need protection for their incomes and social services and possible relocation

even though many miners these days do not live in the communities where they mine Ideally these transition

plans would be developed early enough to ensure that new employment opportunities are in place for them

before mines actually close For many workers this is already too late but if the process begins now there will

be choices available for future retrenched coal workers who live in mining communities and regions Mining

companies could be incentivised andor penalised to give adequate notice to workers and other stakeholders

that closure may be impending and alternative economic opportunities need to be developed

6) Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

Involving the relevant unions in the planning of community transitions can enable them to move towards

becoming more proactive agents helping to plan the transition with critical networks and specific knowledge

about the needs of their members When a coal-fired power station in Washington State USA was scheduled

for closure for environmental reasons unions played a pivotal role persuading environmentalists and others

to delay the closure long enough for a Just Transition to provide different jobs for the workers This made it

possible for the coal resource to be replaced by wind and other renewable generation rather than natural

gasmdasha better environmental outcome and the unions became an active part in the phase out planning

Unions have a heavy workload defending workers rights and pay They need to be supported and financed to

play important roles in community transitions From facilitation and leadership of planning bodies career

planning and advice preferential hiring for displaced workers in the new alternative emerging industries and

leading the establishment of work controlled cooperatives unions have an essential role to play

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

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After Coal (2015) Community Regeneration West Virginia United States httpaftercoalcomengage-your-community Retrieved 10th of November 2015

Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

Arabella Advisors (2015) Measuring the Growth of the Global Fossil Fuel Divestment and Clean Energy Investment Movement httpwwwarabellaadvisorscomwp-contentuploads201509Measuring-the-Growth-of-the-Divestment-Movementpdf Retrieved 10th of November 2015

Australian Bureau of Statistics (2014) Australian National Accounts State Accounts 2012ndash13 Canberra Australia Retrieved 10th of November 2015

Australian Bureau of Statistics (2015) MackaymdashCensus Employment by IndustrymdashTime Series Australian Government Department of Employment Retrieved 10th of November 2015

Australian Government Department for Education and Training (2015) Draft National Strategy for International Education Canberra Australian Capital Territory Retrieved 10th of November 2015

Australian Government (2014) Export income to Australia from international education activity in 2013ndash14 Canberra Australia Retrieved 10th of November 2015

BHP Billiton (2013) Coal Briefing httpwwwbhpbillitoncom~mediabhpdocumentsinvestorsreports2013130529_coalbriefingpdf Retrieved 10th of November 2015

Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

Beyond Zero Emissions (2012) Laggard to Leader How Australia Can Lead the World to Zero Carbon Prosperity Melbourne University Melbourne Victoria Retrieved 10th of November 2015

Beyond Zero Emissions (2014) A Fossil Economy in a Changing World Melbourne University Melbourne Victoria httpmediabzeorgaufossileconomyFossilEconomypdf Retrieved 10th of November 2015

Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

One Million Climate Job Campaign (2015) About London United Kingdom httpclimatejobsorgzaabout Retrieved 10th of November 2015

Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 10: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

viii | JOBS AFTER COAL A Just Transition for Queensland

8 Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

bull Bringing mine site rehabilitation standards in Queensland to global best practice

bull Mandate that mine sales are not made to companies without adequate capital to properly rehabilitate the mine site

bull Increasing mining security deposits to ensure that the full cost of third party mine site rehabilitation is progressively implemented and signed off by governments throughout the life of the mine

bull Ban the sale of mines where rehabilitation responsibilities are not complete or behind schedule

bull Support the nationally coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions described above and more detailed policy changes

9 Remove all subsidies and tax payer funded support to coal mining

bull Review and remove all hidden subsidies to the coal industry within the state government

10 Sound investment and resource revenue management

bull Commission an economic assessment of the possible economic mechanisms and changes to existing policies that could fund the above measures to the extent that will be necessary

bull Set aside a percentage of coal royalties for funding the diversification of coal mining regions

JOBS AFTER COAL A Just Transition for Queensland | 1

1 Coalrsquos current role in the Queensland economy

Coal in the Queensland economyOver the last 30 years the Queensland coal industry has grown substantially to become a significant part of

the Queensland economy and create employment in many regional areas The industry has been concentrated

in the Bowen and Surat Basins throughout rural western and central Queensland The boom for the industry

began in 2005ndash2006 when prices for coal rose by around 400 causing massive industry profits in the

2000s (Stanford 2014) Prices have fallen dramatically since the flow on effects of the global financial crisis

(GFC) slowed down Chinarsquos growth in 2011ndash2012 However prices have remained much higher than the

below US$40tonne that was averaged through the 90s and earlier (Quandlcom 2015)

Queensland coal train

2 | JOBS AFTER COAL A Just Transition for Queensland

Over the last five years since the GFC and later slow down in coal demand the total Queensland coal

production has after decades of growth levelled off at just over 200 million tonnes per annum (Figure 1)

0

50

100

150

200

250

2008ndash09 2009ndash10 2010ndash11 2011ndash12 2012ndash13

Mill

ion

tonn

es

Figure 1 Queensland Coal Production 2008ndash09 to 2012ndash13 Source Queensland Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13

Queensland uses 20 to 25 million tonnes of its mined coal for electricity generation each year (Government

2014) But the rest which is 85 to 90 of the mined coal is exported to countries all over the world and

mainly to Asia In 2013ndash14 33 of the production was thermal coal and 67 was for coking coal production

to make steel (Table 1) Both thermal and coking coal create greenhouse gas emissions when they are burnt

However contrary to government and media perceptions the coal industry is not the sole driving force

behind the Queensland economy As in most modern economies the service industry dominates with 60

of economic output followed by the construction industry with 10 manufacturing at 7 and agriculture

forestry and fishing at 3 (ABS 2014)

An overview of the Queensland coal industry would not be complete without an examination of its level of

foreign ownership By volume 80 of Queenslandrsquos coal production is foreign owned (Government 2013)

This means that a majority of the profits from the operations of these companies are being directed out of

Australia to international shareholders

JOBS AFTER COAL A Just Transition for Queensland | 3

Table 1 Queensland Coal Mining Areas Production and Types 2009ndash10 to 2013ndash14

2009ndash2010 2010ndash2011 2011ndash2012 2012ndash2013 2013ndash2014

Mines operating 56 57 58 59 59

Saleable production Open-cut

Northern 76 450 64 167 62 632 71 268 78 953

Central 63 319 52 637 56 032 63 871 73 801

Southern 39 339 37 423 45 010 43 709 43 651

Total (mt) 179 108 154 227 163 674 178 848 196 405

Underground

Northern 7 642 8 965 9 492 13 266 11 470

Central 18 968 16 642 15 082 14 511 18 433

Total (mt) 26 611 25 606 24 574 27 776 29 903

Coking coal total 125 178 108 731 117 000 131 328 151 571

Thermal coal total 80 540 71 103 71 247 75 296 74 737

State total 205 719 179 834 188 247 206 624 226 309

Source Queensland Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13

Abbot Point

4 | JOBS AFTER COAL A Just Transition for Queensland

Revenue and economic activity generated by the coal Industry

As a nation the coal industry is Australiarsquos second

largest export earner after the iron ore industry Last

year it generated $40 billion which equal to about

12 of export revenue (Cleary 2015) The coal

industry in Queensland will pay around $2 billion

which amounts to 80 of total mining royalties

to the state Government in 2014ndash15 (Campbell

2014) Coal royalties represent around 4 of

Queensland Government revenue (Vorrath 2014)

Similar amounts come from vehicle registrations

and interests on funds saved for superannuation

in addition to long service leave entitlements as

shown in Figure 2 Such figures are not large in the

financial context of running a state government

Despite this the taxation contribution of coal is

incorrectly perceived as significant

The large revenues derived from coal exports

is due to the massive volumes the industry has

reached in recent years Total revenue to the coal

industry from its mining operations amounts to

approximately $25 billion per year that is added

to the economy This is a significant contribution

to Queenslandrsquos economy but one that needs

to be viewed relative to the size of the economy

Queenslandrsquos economy produced output worth

$290 billion in 2012ndash13 meaning the coal

sector accounted for around 7 of production

by value as shown in Figure 3 (right)

Commonwealth grants

Other staterevenue

MV registration

3

4840

54Interest

Coal royalties

Figure 2 Queensland State Government Revenue SourcesSource Queensland Treasury (2014) Queensland State Budget 2014ndash15 Paper 2

Non-mining

Other

2

91

7

Coal

Figure 3 Queensland gross state product coal other mining and non-mining sectors 2012ndash13 Source ABS (2013) Catalogue 52200 Australian National Accounts State Accounts

Coal industry jobs and their locationsThere has been much debate recently as to the exact number of people employed by the coal mining industry

Industry figures have been disputed because of the industryrsquos continual representation and communication

of construction jobs as if they were permanent In addition the industry conspicuously classifies indirect

growth in employment within the local economy as jobs that mining development is responsible for creating

Although in regional mining communities mining employment is high it is relatively small on a statewide

JOBS AFTER COAL A Just Transition for Queensland | 5

level Most recently the industryrsquos employment claims were revealed again in the Australian Land Court

case regarding coal mining development by Indian mining company Adani in the Galilee Basin to have been

exaggerated (Cox 2015) Adanirsquos mine proposal cited the figure of 10000 jobs attached to its development

application but the court was told by Adanirsquos own expert witness that the mine development would only

create 1464 actual jobs throughout the ongoing operation of the mine (Branco 2015)

According to research by The Australia Institute a majority of Queenslanders believe that the mining industry

employs ten times the amount of people it actually does (Campbell 2014) In reality the report shows that

the coal industry only employs 12 of the Queensland workforce (Vorrath 2014) What is significant is how

this employee population is regionally distributed with a majority of the employees residing in the Central

Highlands Isaac and Mackay Regional Council areas (Figure 4)

0

5000

10000

15000

20000

25000

30000

Whitsu

nday

Suns

hine C

oast

Banan

a

Rockh

ampt

on

Brisba

ne

Cent

ral H

ighlan

dsIsa

ac

Macka

yTo

tal

Em

ploy

men

t

Figure 4 Coal jobs by Local Government Area (LGA) in Queensland Top 8Source ABS 2011 Census Coal mining jobs by region in Queensland

SummaryThe coal industry plays a significant role in the Queensland economy but it is by no means irreplaceable As

the next section will show the coal industry has fallen from the lofty heights of its unprecedented profitability

and aggressive hunger for expansion It has come to a slower pace but due to the forecasted change expected

to affect the industry a new approach to planning local economies beyond coal is required

6 | JOBS AFTER COAL A Just Transition for Queensland

2 The drivers of change in the coal industry

Drivers of change The global energy market is in a period of dynamic long-term structural change that will have ongoing

repercussions for energy exporting countries such as Australia Over the last ten years the expansion in gas

the decrease in renewable energy prices the increasing of capital infrastructure costs the demand for cleaner

energy and energy efficiency have all dramatically changed the nature of the global energy economy (Ben

Caldecott 2014)

Coal has been the energy source that has made so many technological advancements through history possible

Although there has been many struggles and social costs along the way The communities workers and

companies that made this progress possible have substantially contributed to the creation of the modern world

Though if there is one thing we know from history it is that empires rise and fall The coal empire is crumbling

As it crumbles it is creating unnecessary instability stress and hardship on communities In communities like

Mackay where income has dropped by 30ndash40 as many other small mining towns people and businesses have

been caught culturally and economically unprepared for this economic shift (Bleby 2013)

Windmill and wind farm

JOBS AFTER COAL A Just Transition for Queensland | 7

2 The drivers of change in the coal industry

Drivers of change The global energy market is in a period of dynamic long-term structural change that will have ongoing

repercussions for energy exporting countries such as Australia Over the last ten years the expansion in gas

the decrease in renewable energy prices the increasing of capital infrastructure costs the demand for cleaner

energy and energy efficiency have all dramatically changed the nature of the global energy economy (Ben

Caldecott 2014)

Coal has been the energy source that has made so many technological advancements through history possible

Although there has been many struggles and social costs along the way The communities workers and

companies that made this progress possible have substantially contributed to the creation of the modern world

Though if there is one thing we know from history it is that empires rise and fall The coal empire is crumbling

As it crumbles it is creating unnecessary instability stress and hardship on communities In communities like

Mackay where income has dropped by 30ndash40 as many other small mining towns people and businesses have

been caught culturally and economically unprepared for this economic shift (Bleby 2013)

It is clear that coal thermal coal especially is no longer good for humanity despite our former Prime Minister

Tony Abbottrsquos fervent belief that it is (Online 2014) WA Premier Colin Barnett heralded last year in his

declaration that coal is in lsquostructural declinersquo (Burrell 2014) He was not wrong In the past 5 years alone the

Dow Jones Total Coal Market index has fallen by 76 (Baker 2014)

The reality is that the world is rapidly shifting away from fossil fuels including countries that are key

importers of Australiarsquos coal and gas China India Japan and South Korea import over 80 of Australiarsquos

export market for coal and gas The reality is that these countries have recently either announced policies to

shift away from these fuels andor initiatives to drastically enhance renewable energy and energy efficiency

(ldquoPolitics of Climate Change in Asiardquo 2015)

The following section of the report analyses the risk of Australia not being prepared economically for changes

that are already taking place As a country and a state our governing political parties continue to pursue

a strategy that assumes our short and long term economic prosperity is dependent on mining Few of our

political leaders are attempting to communicate an economic vision free from the inevitable boom-bust cycles

created by extracting emissions-intensive resources It is also a strategy that assumes energy production and

distribution will continue on as a very centralised process rather than following the great trend of networked

and decentralised distribution that is shaping the 21st century (Riftkin 2015) This strategy is short-sighted

given recent announcements by China and India to phase out fossil fuels and move rapidly towards cleaner

and more distributed energy sources (Rohr 2014)

The international coal priceThe majority of Queenslandrsquos export coal mining industry is dependent on demand for steel making from

the worldrsquos coking or metallurgical coal market This is a market that has been severely impacted by a

combination of actions in China the biggest steel manufacturer in the world Primarily Chinarsquos housing

boom has been slowing down over recent years this in turn has massively reduced the need for steel Most

importantly China is also running a ldquowar on pollutionrdquo that is having direct short- and long-term impacts on

the viability of the coal industry as a whole This has resulted in a campaign of state enforced closures of coal

plants and steel mills especially near the countryrsquos big industrial coastal cities (Ng 2015)

Prices on the international coking coal stock market have plummeted from the all time high of US$330

tonne in late 2011 to a sobering low of US$109tonne in the first quarter of 2015 The outlook still remains

gloomy for the coal sector

With the continued slowdown in the global and Chinese economies the price of iron ore has also collapsed

Prices have dropped by one third in the first quarter of 2015 alone causing at least one Australian mine to

close operations and many others to cancel plans for expansions (Sandersen 2015) Iron ore is closely linked

to the sales of coking coal which is used most commonly to melt iron ore into steel

8 | JOBS AFTER COAL A Just Transition for Queensland

20

14

US

$t

0

100

200

300

400

2005 2007high quality high coking semi-soft coking

2009 2011 2013 2015

Figure 5 Coking Coal Prices 2005ndash2015 (worldcoalcom)

A similar price drop has hit thermal coal used in coal-fired power stations Thermal coal is mined in many

Surat Basin mines and is also found in some Bowen Basin mines where it is an addition to the high quality

coking coal found in the area Significantly the proposed mining development in the Galilee Basin is only

for thermal coal which at a time when coal-fired power stations are being replaced by cleaner options is

alarming (Pacific 2012) Thermal coal was priced at US$120tonne in late 2011 It had plunged to US$73

per tonne by February 2015 and has remained below US$60tonne since May 2015 Chinarsquos new rules of

cutting ash and sulphur content in seaborne coal imports along with increasing tariffs on coal imports has

meant that even Shenhua Chinarsquos biggest coal company cut coal imports in early 2015 (Jenda 2015)

Overall Chinese consumption dipped by 16 in 2014 despite their economic growth of 73

The decade of relentless and largely unplanned investment in Queensland coal mining in times of high prices

led to a massive oversupply against a background of decreasing demand The state and federal governments

failed to slow the industry down so that it did not overshoot an economically sustainable size This has made

the challenge of transitioning out of the industry even harder along with magnifying the pain now faced by

many mining towns (Neubauer 2015) All of this leaves a million-dollar question Is the downshift in [coal]

demand terminal According to Richard Gibbs from the Macquarie Bank it certainly is (Neubauer 2015)

The global coal market is also experiencing competition from renewables and shale gas slow growth and

government policies which are in part driven by the threat of climate change

The growing competition from renewable energy sources has been increasing its impact on the coal industry

by slowly but steadily eroding profits of domestic coal power stationsmdashand thus demand for coalmdashacross the

country (Hewson 2015) In Queensland the state government should be applauded for its 50 renewable

energy target by 2030 which will further add strain to struggling coal power generators (Parkinson 2015)

A more than 50 decline in coal prices has seen most listed coal companies globally to lose 80ndash90 of their

equity market value in the last four years (Buckley 2014) In 2014 the world added more energy generation

capacity from wind power than from coal Overall Europe and America have already cut coal-fired generation

JOBS AFTER COAL A Just Transition for Queensland | 9

capacity by over a fifth in a decade The sun will undoubtedly rise even further for renewable energy in 2015

but for coal there remains a lot further to fallrdquo said a report by the Institute for Energy Economics and

Financial Analysis in January 2015 (Buckley 2015a)

This statement is borne out by the facts

bull In 2014 new global wind installations grew 40 to 46GW led by China and America (Buckley

2015b)

bull In 2014 the US solar installation sector created almost 50 more jobs than the oil and gas pipeline

construction industry (Foundation 2015)

bull From 2000 to 2011 global annual growth in the yearly global installation rate of photovoltaic solar

panels was 40 In 2011 the total amount of global PV capacity installed was 27GW an astonishing

60 growth on 2010 levels (Green 2012)

bull Unsubsidised renewable energy is now cheaper than new coal-fired power in Australia (Paton 2013)

Solar installation

10 | JOBS AFTER COAL A Just Transition for Queensland

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

Coal power station

JOBS AFTER COAL A Just Transition for Queensland | 11

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

The outlook for coal pricesWhile some consider the outlook for coal prices as cyclical in nature and that a turnaround will increases

prices for coal other analysts believe this downward trend based on policies health impacts and concern

about global warming is here to stay

Financial reports from the major mining companies in Australia paint a grim outlook for global metallurgical

coal prices China was once the great hope for coking coal exporters but BHP Billitonrsquos metallurgical coal

market outlook (May 2013) indicated a flattening demand into the future (Billiton 2013 Rohr 2014)

BHP Billiton has warned that the increased usage of scrap metal in furnaces would result in lower growth in

demand for pig iron while greater production from electric arc furnacesmdashwhich use little or no coking coalmdash

are expected to ldquocontribute a significant share of total Chinese steel production by 2030rdquo Although coking

coal will likely remain necessary for steel production for some time as renewable energy sources grow the

efficiency and lower emissions intensity of electric arc furnaces will help them to outcompete coking coal in

the not too distant future Some experts even predict another technology called lsquodirect reduced ironrsquo that uses

gas to make steel could make coking coal redundant within a decade (Macleod 2013)

It is not just China BHP Billiton also cautions that the Indian steel outlook is less certain as steel production

growth has been slower than expected Prices for commodities from iron ore to coal are sinking as Chinarsquos

leadership tries to steer the economy away from debt-fueled property investment and smokestack industries

embracing services and domestic-led consumption At the same time President Xi Jinping is stepping up efforts

to combat pollution The provincial government of Beijing and a number of other major cities have made plans to

ban coal use by 2020 further putting the squeeze on all types of heavy industry (Coulter 2015)

However the outlook is not all dismal for coal everywhere In India demand is expected to continue to rise

without peaking until the 2030s Indiarsquos government predicts a 19 rise in coal imports this year which

may offer very short-term opportunities for Australian miners The opportunities are short term because these

import increases are something the Indian government has indicated it does not want continued into the

future Indiarsquos plan is to ramp up renewable energy technology as well as develop their untapped coal fields

to support a gradual phase out of thermal-coal imports within the next 2ndash3 years (Baker 2014) Regardless

the Indian mining giant Adani still hopes it can get coal from its proposed Carmichael mine in the Galilee

Basin and export it to India for the duration of its 60 year life span After a number of international banks

have ruled out funding for the Carmichael coal mine Adani has been looking for cash handouts from the

Australian Government to fund its shaky proposal However sanity has prevailed and these have been ruled

out by the new Prime Minister (Edis 2015) It is clear the Indian governmentrsquos plan for Indiarsquos future coal

supply sources does not involve Australian coal

12 | JOBS AFTER COAL A Just Transition for Queensland

This is the marketplace in which Australiarsquos exported coal competes and this is the marketplace that holds the

livelihoods of workers and communities in its hands The current state and future outlook of the coal industry

suggests that it would be risky not to scale down the thermal coal industry and at least restrict any new mine

expansions in the coking coal sector There are those who remain positive about the industryrsquos future but

recent events in the coal industry and uncertainty over medium and long term suggest that there are better

industries to back Behind these diverse risks threatening the coal industry is the inescapable scientific

fact that we cannot afford to burn any more coal from new coal mines if we want to decrease the risk of our

already fifty fifty chance of avoiding the worst impacts of global warming (IPCC 2013) If we wanted to try

and remove the total risk of runaway climate change we could not even afford to burn the coal that are sitting

in trucks on trains at port yards and in ships Not even the coal travelling on conveyors into power station

furnaces about to be burnt right this very moment

The carbon bubbleFrom the South Sea Bubble as well as the housing and dotcom bubbles of the last decade periodic over-

investment has been made into sectors deemed too important to fail The rush and hubris of investors seeking

incomparable profits to finance such industries has led to speculative bubbles of over-estimated value that

eventually burst In the economic fallout that results working people carry the burden while the speculators

and profiteers generally are not held accountable Another speculative bubble has formed and it dwarfs the

size of all of the bubbles that have come before it It is called the Carbon Bubble (Tracker 2015)

One of the few things world leaders agreed upon at the Copenhagen climate talks was that the Earth needs to

stay below 2degC warming to minimize the risk of runaway climate change

bull If we are to avoid going over 2degC we can emit only 565 more gigatonnes of carbon dioxide (IPCC 2007)

bull Burning the fossil fuel that corporations now have in their reserves would result in emitting 2795

gigatonnes of carbon dioxidemdashfive times the safe amount (Leaton 2013)

The Intergovernmental Panel on Climate Change has now produced its own carbon budget They have calculated

that if we continue pumping carbon into the atmosphere at todayrsquos rate this budget will be exhausted within

15ndash25 years (IPCC 2013) This means there will be growing political pressure on the fossil fuel industry to

keep most of its reserves in the ground That pressure has already begun around the world Citizens are pressing

their superannuation funds councils banks universities and other institutions to divest from fossil fuels with

growing success The year 2013 saw several major financial institutions recognise the financial and ethical

implications of continuing to finance fossil fuels with Norwegian Storebrand Rabobank and the World Bank

among those who made major announcements on divestment or cutting loans In 2014 major institutions

including Stanford University the Australian National University and Oxford University have divested their fossil

fuel funds (Advisors 2015) So far in 2015 local councils in Australia such as Moreland Newcastle Byron Bay

Melbourne and many more have also divested (Ryan 2015) Divestment is now going mainstream and will have

increasing impacts on fossil fuel company shares into the future

JOBS AFTER COAL A Just Transition for Queensland | 13

As a result of the momentum of the global divestment movement international stock exchanges are creating

new indexes to exclude fossil fuels in preparation of the impending seismic shift in global finances In late

April 2014 the worldrsquos largest fund manager Blackrock joined with the FTSE Group in London to create

a new index The ex-Fossil Fuels Index Series is an innovative set of benchmark indices that excludes

companies directly engaged in extracting so-called ldquostranded assetsrdquo in the hydrocarbons industry ldquoThis

is one of the fastest-moving debates I think Irsquove seen in my 30 years in marketsrdquo FTSE managing director

Kevin Bourne told the Financial Times (Clarke 2014) The Bank of England is now investigating its exposure

to risk from its fossil fuel investments To top that off the worldrsquos biggest sovereign wealth investment fund in

Norway has recently dumped coal investments (Carrington 2015) The largest contribution to climate change

from the fossil fuels in company inventories at present is from coal Because it has the largest climate impact

per unit of useful energy it is being targeted for early phase out

The book value of fossil fuel companies is determined not only by their current infrastructure and deposits

undergoing extraction but also by the size of their legally claimed reserves Because the book value of so

many companies has greatly exceeded their realisable value as emissions restrictions come into place a

speculative bubble has formed Unfortunately bubbles usually burst in the end leaving behind stranded

assets and stranded capitalmdashand leaving workers in the lurch The only alternative is a mature and planned

phase out of the industry that slowly devalues and deregisters fossil fuel reserves at a pace that does not lead

to financial crisis A planned phase out that gives time for just employment transitions for fossil fuel

communities

500

1000886

565

1500

2000

2500

3000

already burnt

remaining

2000ndash2050

2011ndash2050

Coal 2˚Global carbon

budget

Oil

Gas

GtC

O2

Global fossil fuel reserves

Figure 6 Carbontracker 2012 report The Carbon Bubble

14 | JOBS AFTER COAL A Just Transition for Queensland

In 2013 the report Unburnable Carbon highlighted that ldquoCompany valuation and credit ratings

methodologies do not typically inform investors about their exposure to these stranded assetsrdquo (Leaton

2013) This is very troubling when considering that the supporting share value of these reserves was $4

trillion in 2012 and that they serviced $127 trillion in outstanding corporate debt over the same period We

need to challenge these methodologies (Tracker 2015) In a move that signals a step towards the solutions

required the World Bank the European Investment Bank and the US Export-Import Bank have all announced

that they will not fund further coal-fired power plants except in exceptional circumstances As changes in

policy by the major coal consumers the uptake of renewables and the need to stay within the global carbon

budget begin to bite it is high-cost producers who will be squeezed first Australia is considered a high-cost

producer because of our strong industrial relations and wage laws which makes it all the more necessary that

our governments are vigilant and prepared for impending macroeconomic change (Cleary 2015)

SummaryThis is the environment in which the Australian coal industry finds itself Internationally coal is no longer

looking like a safe long-term investment within the context of the rapid changes afoot in the world The coal

industry leaders are either in denial about their industryrsquos future or are determined to squeeze as much profit

as possible until the cost gets worn by workers and their communities (Saunders 2015)

The issues of climate change demands for cleaner air and more efficient new technologies The realities of

the market are revealing coal as the sunset industry it really is This is not an industry Queenslanders can

rely on to create a stable resilient and sustainable economy It cannot be relied upon for future wealth

and future jobs We have been warned by the UN Climate Change Secretariatrsquos Executive Secretary that the

diversification and a managed transition away from coal is what we need to do and we need to heed this

warning (Australian 2015)

JOBS AFTER COAL A Just Transition for Queensland | 15

3 Assessing some of the economic opportunities in mining regions

IntroductionThe great state of Queensland is endowed with sustainable human and environmental resources that have the

potential if we choose to harness it to drive a balanced diverse and resilient economy for generations to

come Diversifying Queenslandrsquos economy to create sensible and stable prosperity beyond the boom and bust

vagaries of the mining industry must be a key objective of the Queensland Government The Newman LNP

Governmentrsquos Queensland Plan headline was lsquoforging diversity and prosperityrsquo (Government 2014) But

throughout Newmanrsquos reign as premier no action was taken Under the new Palaszczuk Labor Government

there has been some effort to support economic diversification across the state This is insufficient because as

of yet nothing has been done to adequately fund facilitate and empower the actual communities where

mining takes place The grassroots Labour Environmental Action Network an organisation within the

Australian Labour Party has called for change At the 2015 Queensland ALP State Conference they put

forward a motion that was passed calling on the state government to prepare a just transition policy before the

next conference (ALP 2015)

Grain harvest

16 | JOBS AFTER COAL A Just Transition for Queensland

Most importantly both major parties have continued their relentless support for further coal mine expansions

that inherently suffocate the process of diversification

With the coal industry forecast to be in a lsquostructural declinersquo by political leaders and bankers alike it is now

essential that the focus for economic development be on industries that can bring sustainable prosperity to

Queensland (Burrell 2014 Robins 2014) In the United Kingdom under Prime Minister Thatcher the world

witnessed the consequences of industries closing without planning and without investment to transition local

communities and industries

The following section of the report outlines how the opportunities for sustainable economic development

are already known Queensland has well-established sectors with bountiful potential in agriculture tourism

manufacturing and education It also has the opportunity to capitalise on a boom in renewable energy and

bio-industrial products to create more sustainable economic sectors These industries are ready to fill the

void that will be and is being left by coal however they lack the support needed to ensure their presence in

mining communities to provide a just transition away from coal where it is most needed

Agriculture and aquacultureCurrently the Queensland agricultural sector is worth near $147 billion and employs over 90000 people

(Queensland Government 2012) The sector has the potential to massively expand its food exports to Asia as

population and economic growth continue to surge in the dynamic economic region Through the competitive

advantage of our proximity to Asia and high-quality produce capabilities agricultural products have become

Queenslandrsquos second largest export earner and have the potential for continued growth (Heath 2014) By

increasing availability of farming technology driving productivity minimising costs and focusing on profitable

premium produce markets the Queensland Agricultural Strategy (2012) aims to double the total value of

production for all agricultural commodities by 2040 With innovative new farming approaches and ecosystem

system management strategies such increases in production are possible in a way which sustainably manages

and regenerates the land

To reduce pressure on fish stocks from home and abroad the promotion of aquaculture could be further

encouraged across the state This industry is worth $10 Million a year (Lucas DLGP 2011) At present

there are several sites located along the coast however research conducted over the last decade has

identified future sites for land based aquaculture Industry consultation aquaculture management training

programs and related issues in developing a workforce need to be considered (Plan 2012) The Queensland

Aquaculture Industry Federation sees the need for continued collaboration between government and other

stakeholders in order for this industry to reach itsrsquo potential as a strong core industry (Federation 2015)

The Department of Employment Economic Development and Innovation is leading the government drive to

JOBS AFTER COAL A Just Transition for Queensland | 17

develop the aquaculture industry This could see a future where aquaculture goes further than just meeting

domestic demand and grow to cater for high value export markets (Lucas DLGP 2011)

New opportunities in animal genetics aquaculture horticulture and bio-processing are driving agriculture

and aquaculture sector growth in new directions Both industries are about creating intergenerational

economic sustainability Choosing these industries that have unlimited potential to sustain our communities

and our ecosystems over mining is choosing long-term jobs over short-term jobs that cannot be passed on to

the next generation The bottom line is that we live in a hungry world and Queensland is well placed to be a

reliable and sustainable source of food to other nations without the agricultural potential we are endowed with

(Government 2014)

Tourism and recreational fishingDespite setbacks due to the high Australian dollar and loss of skilled workers to the mining boom the

tourism industry is still a critical part of the Queensland economy with massive future potential (Dr Tien Duc

Pham 2015) The tourism industry made a significant employment contribution providing 124000 jobs in

2010ndash11 with steady growth in international visitor nights (Deloitte Access Economics 2012) Queensland

has the potential to become a global leader in tourism and ecotourism and by doing so to create more

jobs and revenue (Government 2014) This will be possible similarly as in agriculture by promoting the

experiences available in our natural places and the quality hospitality we can provide to the growing Asian

middle class (Wilson 2013) The Chinese tourism market is seeking clean fresh and new experiences that

Queensland can cater to and is expected to be worth $74 billion by 2020 (Guterres 2014) Significant to

Queenslandrsquos potential in tourism is our ability to expand the tourism industry in the authentically Australian

rural and stunningly beautiful coastal mining communities where new economic activities are most needed

Further mining expansion in such places threatens to do to tourism what the growth in heavy industry did to

Gladstonersquos economic diversity where fishing and tourism are now non-existent

Although sustainably managed fisheries have the potential to provide continued economic prosperity to

Queensland there lies a major opportunity in net free fisheries to develop as tourism industries specifically

in coal mining regions A great recent example of this taking place is the newly established Net Free Zone

between from the Northern end of St Helens beach to Cape Hillsborough (Spelitis 2015) Along with three

other net free zones across the state the extent of the cumulative commercial opportunities for sustainable

tourism the net free zones have created has made it one of the three pillars as part of the 2020 vision for the

Queensland has the opportunity to develop an abundant and resilient agricultural industry that supports the transition to sustainable prosperity

18 | JOBS AFTER COAL A Just Transition for Queensland

Queensland Tourism Industry Council (Council 2015) The Mackay Isaac and Whitsunday (MIW) coal mining

region has excellent accessibility to a variety of fishing pursuits In addition to the new net free zone ther are

five fresh water stocked impoundment fisheries creating opportunities to promote lake beach offshore and

deepwater angling Improvement of accommodation facilities quality of jetties access roads and coordinating

fish trails with regional events could maximise visitation from recreational and tourism markets (Mackay

Tourism Tourism Queensland 2012) Charter fishing operatiors tackle stores campsites motels boat sales

boat building and maintenance all have the opportunity of benefitted from growth from the recreational fishing

tourism industry (Lucas DLGP 2012)

Higher educationOver the past decade millions of international students have visited Queensland for our quality tertiary

institutions and enjoyable lifestyle International education is Queenslandrsquos biggest service export with

nearly $2431 million being generated in 2013ndash14 alone (Australian Government 2014) The majority

of Queensland is strategically located in the latitudinal tropical zone where at a global level more than

50 of the worldrsquos population is forecasted to live by 2050 (Australian Government 2015) This makes

Queenslandrsquos universities well placed to develop the partnerships and research innovations tailored to the

challenges and opportunities of the new tropically-oriented world This will help Queensland and especially

North Queensland to attract increasing levels of international students to be part of our high-quality tropical

research institutions These students will increase spending through tourism support the creation of our own

skilled and globally connected workforce and connect Australia to business networks and opportunities across

the world In 2013ndash14 the Cairns region benefitted to the tune of $1375 million from international students

(McGuiggan 2014) With the right policies these benefits already being experienced primarily in Cairns

Townsville and Brisbane can be spread further across Queensland to make international education a strong

economic driver in transitioning mining communities

Bio-industrial productsAs the world moves away from fossil fuels the demand for cleaner more sustainable fuel sources will grow

(Emissions 2014) By using excess organic matter produced through food production to develop bio-industrial

products Queensland has the potential to export clean and sustainable fuels and bio-plastic materials to the

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Tourism is about experiences not extraction It has the potential to share Queensland beauty with the rest of the world and create sustainable local economies in the process

Queenslandrsquos greatest resource is the minds of its people We can share and co-create our innovations and learning with students from all over the world who want to make Queensland the launch pad for their careers

JOBS AFTER COAL A Just Transition for Queensland | 19

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Sorghum fields

20 | JOBS AFTER COAL A Just Transition for Queensland

Queensland is well placed to develop biofuel products from waste and oil crops such as Pongamia and algae

in addition to using the statersquos advanced sugarcane industry to convert excess cane using efficient cellulosic

processes Recent scientific developments in bio-plastics at the University of Queensland show that as a

state Queensland has the skills and ability to build a bio-industrial products industry that can contribute to a

sustainable economic future (Queensland 2015)

Renewable energyQueensland the sunshine state has enormous potential to generate electricity from the sun wind and waves

in addition to many other abundant renewable energy sources (Green 2012) Renewable energy has for a long

time been the catch cry from environmentalists as the complete solution to creating the jobs necessary to

replace the fossil fuel industry This report has been written partially to show recognition that as much as

renewable energy has the potential to create more jobs and replace fossil fuel domestic energy production it

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Gemasolar solar thermal power station Spain

JOBS AFTER COAL A Just Transition for Queensland | 21

cannot completely replace all of the coal

export industry jobs Numerous studies

show that with strong climate policies

over 7100 jobs can be created in

Queensland through renewable energy

by 2030 (Institute 2011) Thousands of

these jobs will be in regional

Queensland These should be prioritised

for regions where the mining industry

has developed rural communities in

need of new economic opportunities Far

North Queensland is especially suited to

further renewable energy investment

because of its climatic conditions and

because of the expensive transmissions

losses from having energy wired from

southern power sources (Allen 2011)

This makes it essential that government

policy ensures that the fair share of the

$35 billion in potential renewable

energy investment goes to rural mining

communities not only where it is most

needed economically but where it

makes the most business sense

(Department of Employment 2009)

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Queensland has the potential to become a smart sunshine state powered by clean and sustainable renewable energy By doing this we will be creating jobs in rural mining communities where they are needed most and building a foundation for a new sustainable economy

22 | JOBS AFTER COAL A Just Transition for Queensland

4 Community transitions Global case studies

There are communities around the worldwhich have reinvented themselves after the end of coal mining and

developed prosperous economies in doing so It has been a struggle but where there is a level of government

support inspired local leadership and the community is working together to regenerate its economy it has

been possible (Coal 2015) We are not suggesting any of these examples can be directly transferred to

Queensland communities facing the end of coal mining The object of these case studies is not to provide a

blueprint for Mackay Gladstone Rockhampton or mining towns in Central Queensland but to show the

diversity of ideas that have worked in other places that might stimulate our local communities to reinvent

themselves too

Hazelwood coal power station La Trobe Valley Vic

JOBS AFTER COAL A Just Transition for Queensland | 23

La Trobe ValleyIn the brown coal producing region of the La Trobe Valley in Victoria a grassroots transitionary force has been

underway for the past fifteen years Earthworker was set up by union and climate change activists seeking a

real alternative to coal and privately owned business models Earthworker Cooperativersquos mission is to create

jobs that respond to the lsquochallenges of climate change and the need for local job creation by facilitating the

establishment of worker-owned cooperatives hellip in sustainability-focused industriesrsquo (Earthworker 2015)

Their current focus is the establishment of a cooperative producing solar hot water systems in partnership

with an existing business called lsquoEverlast Hydro Systemsrsquo Their goal is to take production to Morwell in the

La Trobe Valley where workers are in need of an alternative to the coal industry The unique cooperative model

has made selling arrangement possible through inserting the option to buy a solar hot water system through

enterprise bargaining agreements

BanwenThe DOVE workshop in Banwen South Wales (Dove 2015) was started by agroup of women who during

the 1984ndash85 coal minersrsquo strike decided that community-based education was the most practical path to

regenerate the local economy Setting up shop in an abandoned mine office they developed a series of adult

education workshops for women Three decades later the DOVE building hosts a diverse set of small-scale

entrepreneurs including a daycare a library a community garden and a cafeacute featuring local foods

OrkneyOrkney like Central Queensland is a relatively isolated place with a scattered population Situated at the

top of Scotland two hours from the mainland by ferry Orcadians like Central Queenslanders often feel

like spectators to what goes on in the rest of their country They also feel vulnerable to central government

decisions and are often irritated by the lack of understanding of island life on the part of distant authoritiesmdash

its particular customs dialect and ways of doing things Since Norse times Orkney islanders burned peat (a

very young form of coal) as their primary fuel source but all the peat has been dug up This traditional way

of life where each farming family had its own peat bank and spent long summer days cutting and drying

peats while sharing picnics as children played is gone Another non-renewable energy source North Sea oil

discovered in the 1970s brought positive and negatives for the island It turned the tide of depopulation but

like the peat banks the oil is depleting and another lsquoend of an erarsquo is approaching Orcadians have woken up

to the fact that they canrsquot continue to hark back to the past and are confronting the issues of a future without

fossil fuels

Over the last three decades European community funding has helped Orkney to equip itself for the green

energy revolution Orkney now plays a global role in the evolution of wave and tidal technologies and

significant research and development work is creating new employment opportunities A high school in

Stromness was converted into the European Marine Energy Centre and is now a world leader providing

developers the opportunity to test full-scale prototypes in the sea The worldrsquos largest single-rotor tidal turbine

24 | JOBS AFTER COAL A Just Transition for Queensland

was the first in Scotland to be connected to the national grid from this centre Marine energy combined with

an expansion of wind turbines means that the island is now self-sufficient in electricity These renewable

energy developments have created jobs in the Orkneys in civil works and erection grid connection and

communications (Stuart 2011)

Investment in renewable energy and its associated RampD has attracted people to live work and study on the

island Islanders used to have to leave to get tertiary education but it is now possible to study for an MSc in

renewable energy at a Heriot Watt University campus in Stromness A new generation of Orcadians have grown

up to see renewable energy as the way of the future something quite ldquonormalrdquo which will provide greater

opportunities for their children to stay on the island with genuine prospects for employment in meaningful

jobs requiring a wide range of skills and qualifications This shows what a community in transition to a low

carbon future can look like

Nord-Pas De CalaisUntil 1986 the north-east region of France Nord-pas de Calais was a major coal mining area It still boasts

huge twin tailings mountains the largest in Europe which have become a tourist attraction It is known

to Australians for the war cemeteries associated with the battle of the Somme in WW1 but it has recently

undergone a remarkable transformation towards a truly sustainable economy Old coal mines at Lens have

been transformed into an art gallery displaying works from the Louvre collection in Paris Hundreds of people

are trained in energy efficiency solar energy and green architecture at a new training centre in nearby Loos-

en-Gohelle

The Chamber of Commerce invited economist and social visionary Jeremy Rifkin of the TIR Consulting

Group and his chief economist Skip Laitner to apply their model of the third industrial revolution to the

district (Riftkin 2015) Rifkinrsquos Third Industrial Revolution combines renewable energy energy efficiency

and the connectivity of the internet Buildings are energy generators and hydrogen is used as energy storage

After working with the community for some time the Master Plan was published in 2013 and envisages

that 100000 new jobs can be created by the transition plan (LLC 2013) Certainly the population has not

declined since mining days and has even slightly increased Inspired local leadership was the key in this

community plus some outside funding to help with the underpinning research

Appalachia (Kentucky)The transition process is just starting here but the community is very organised Kentuckians For The

Commonwealth has been battling the negative effects of coal mining for some decades and is now planning a

transition to ldquobuilding a better future beyond coalrdquo (Commonwealth 2015) Last year they held a conference

in Harlan Kentucky right in the middle of the Appalachian coal fields and invited guests from other US

regions in the same position as well as from Wales It is too soon to see what the outcome of their learning

process will be but they are another example of a community taking its future into its own handsmdashoptimistic

that there is a better future after coal

JOBS AFTER COAL A Just Transition for Queensland | 25

5 A just transition for coal mining communities policy recommendations

The opportunities to transition from unsustainable coal mining to prosperous communities with decent

employment will not just materialise by themselves It will need the political will and the right incentives to

ensure that communities are not left fending for themselves with unemployment increasing and families

in need of long-term welfare But not only is the political will not currently there both major political

parties continue to support the expansion of this sunset industry and by doing so are making the transition

challenges progressively more difficult (Denniss 2012) For too many years governments have uncritically

supported the coal mining sector Entire government departments have been focused on facilitating mining

with tax incentives weakening assessment and approval processes along with providing through tax payer

money established industrial infrastructure to support new projects Government policy often seeks to grow

royalties income by supporting the extraction of as much coal as possible as an escape the challenge of

finding other ways to increase state revenue New sustainable industries in coal communities will need just as

much if not more support while it gets started

We propose that communities local businesses workers unions community groups environment groups

local government and state and federal governments all need to be involved in planning a transition to

alternative forms of economic development and providing new jobs We call this a Just Transition (Anthea

Bill amp Evans1 2008 Brecher 2012) Just Transition is a framework for a fair and sustainable shift to a low

carbon economy proposed by trade unions and supported by environmental NGOs A Just Transition holds

that a shift to a lower carbon economy is vital to avoid dangerous climate change

Bimblebox Nature Refuge

26 | JOBS AFTER COAL A Just Transition for Queensland

Tough targets to cut greenhouse pollution supported by new environmental regulations and emerging carbon

markets will transform the global economy over the next decade These shifts will have major implications

for working people in energy supply industry and transport and for everyone as consumers There is a concern

that significant periods of economic restructuring in the past have often happened in a chaotic fashion

leaving ordinary workers along with their families and communities to bear the brunt of the transition to

new ways of producing wealth A just transition seeks to prevent such injustice becoming a feature of this

transition suggesting that it would not only be morally wrong and socially damaging but would undermine the

credibility of the transition itself and could slow or even halt the changes that must be made

It is through the challenges of communicating the urgency of climate change and other social and

environmental impacts that much of the debate about coal and its consequences for land water and the

climate has become unnecessarily adversarial and polarised Coal mining and power generation communities

deserve acknowledgement and appreciation for all that they have historically and currently contributed to

our country and our economy In communicating the economic shifts that are taking place and facilitating

the necessary transitions the Australian community needs to be respectful of the history and identity of coal

communities Environment groups government unions and the community need to initiate and engage in

the discussions about transitions in an open honest and compassionate manner Only by approaching the

transition in this way can the adversarial nature of the debate be broken down to make way for transformative

mutually respectful and holistic solutions

Whitsundays lsquoHave a Heart for the Reefrsquo

JOBS AFTER COAL A Just Transition for Queensland | 27

A just transition recognises that support for policies are conditional on a fair distribution of the costs and

benefits of those policies across the economy A just transition should also recognise that the creation of

opportunities for active engagement by those affected in determining the future wellbeing of themselves

and their families is essential for the long term empowerment of citizens and communities The following

recommendations have been written with the aim of emphasising such community empowerment as a priority

Recommendations

1) Establishing a unit within the State Government to support coal mining regions to transition to new economies

Specific institutions are needed to develop transition plans They need to have strong government support

and funding regional offices and representation from diverse stakeholders A dedicated unit within the

Department of Infrastructure Local Government and Planning could be established to oversee this work

They could work on the ground in the main coal mining communities to bring government expertise into

regional entities that would develop local plans that involve and empower the whole community This unit

or a connected unit would analyse existing barriers to the creation of competitive advantages for alternative

sustainable industries and would identify actions the State Government can take to support such creation

Any policy and support should come with clear conditions and timeframes These regional entities would

need generous budgets to assist local groups to develop their transition strategies to support research re-

training and the development of new business and community start-up initiatives based on the needs and

strategies of communities The key to communities becoming economically resilient is high levels of autonomy

and freedom in shaping their economic futures Research funding available to the regional entities will be

essential to the empowerment of local leadership Research funding should at least reach the OECD research

funding average and it should prioritise low carbon technologies and industry sectors with increased triple

bottom line sustainability potential

2) Support community leadership in diversifying local economies through the establishment of democratic regional entities

In each mining community a group of traditional and non-traditional community leaders willing to think

beyond lsquoBusiness as Usualrsquo to imagine a better future could be called together to work in collaboration with

and be resourced by the state government managed regional entities mentioned in recommendation one

The leaders would come from diverse backgrounds such as from local governments business associations

unions farming groups renewable energy businesses and educational institutions The objectives of these

leadership groups would be tailored to each community The objectives would in broad terms be to increase

employment in new diverse industries based on sustainable production and publicservice sector job creation

Expert facilitation alongside inclusive and democratic community engagement initiatives would be essential

to ensure the process and environment for creativity and innovation is maximised To develop such groups

it would be necessary to take stock of the existing resources skills and successful businesses on which a

new future can be built In addition an analysis of the social environmental and economic needs of the

28 | JOBS AFTER COAL A Just Transition for Queensland

community would also be beneficial These groups could then establish economic diversification projects

including value-added local production worker controlled co-operative enterprises and new community-

based enterprises that economically empower the local community Activities may also include support for

alternative industries in regard to process restructuring or subsidising the wages of workers displaced from

higher paying traditional industries

3) Support researching and communicating how the just transition can take place

Consistent research is needed on the best options to support the state and national economies to transition

This requires ongoing situational analysis of the global energy market shifts at both government levels In

addition each mining region will need assistance to research the number of jobs that are dependent on coal

the skills of those employed the level of local national and global long- and short-term risk to local mining

operations the transferability of jobs to other industries local opportunities for new enterprises and their

needs and the local educational and training needs and resources A key issue requiring research will be

around how the transitition scenarios differ depending on the level and relativity of thermal and coking coal

industries across coal mining communities The process for sourcing this information at a local and state

government level should be integrated into a policy feedback loop to support cyclical situational analysis and

policy adjustments from all levels of government This research should take place at the state level and be

encouraged at the industry and local level through grants

Mackay Central Queensland

JOBS AFTER COAL A Just Transition for Queensland | 29

4) Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

Many existing Queensland industries including those not highlighted in this report have the potential to

carry Queensland towards a new sustainable economy [sC5]mdashbut they will need support to do so Instead

of continuing to support and lower costs for the coal mining industry we need a plan to grow competitive

advantage across industries that have potential for sustainability and growth in regional mining communities

Along with industry and community organisations the State Government could organise a State Economic

Summit to assess existing industry clusters identify the potential of new and emerging industries consider

their competitiveness and key capabilities and identify barriers to increasing competitive advantage The

findings and recommendations from this Summit could be used to inform the work of the Unit established in

bullet point one above and the research outlined in bullet point two

5) Provide social protection of workers their families and incomes

If mines close suddenly workers need protection for their incomes and social services and possible relocation

even though many miners these days do not live in the communities where they mine Ideally these transition

plans would be developed early enough to ensure that new employment opportunities are in place for them

before mines actually close For many workers this is already too late but if the process begins now there will

be choices available for future retrenched coal workers who live in mining communities and regions Mining

companies could be incentivised andor penalised to give adequate notice to workers and other stakeholders

that closure may be impending and alternative economic opportunities need to be developed

6) Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

Involving the relevant unions in the planning of community transitions can enable them to move towards

becoming more proactive agents helping to plan the transition with critical networks and specific knowledge

about the needs of their members When a coal-fired power station in Washington State USA was scheduled

for closure for environmental reasons unions played a pivotal role persuading environmentalists and others

to delay the closure long enough for a Just Transition to provide different jobs for the workers This made it

possible for the coal resource to be replaced by wind and other renewable generation rather than natural

gasmdasha better environmental outcome and the unions became an active part in the phase out planning

Unions have a heavy workload defending workers rights and pay They need to be supported and financed to

play important roles in community transitions From facilitation and leadership of planning bodies career

planning and advice preferential hiring for displaced workers in the new alternative emerging industries and

leading the establishment of work controlled cooperatives unions have an essential role to play

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

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Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

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Australian Government Department for Education and Training (2015) Draft National Strategy for International Education Canberra Australian Capital Territory Retrieved 10th of November 2015

Australian Government (2014) Export income to Australia from international education activity in 2013ndash14 Canberra Australia Retrieved 10th of November 2015

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Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

Beyond Zero Emissions (2012) Laggard to Leader How Australia Can Lead the World to Zero Carbon Prosperity Melbourne University Melbourne Victoria Retrieved 10th of November 2015

Beyond Zero Emissions (2014) A Fossil Economy in a Changing World Melbourne University Melbourne Victoria httpmediabzeorgaufossileconomyFossilEconomypdf Retrieved 10th of November 2015

Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

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Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

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Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

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Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

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Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 11: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

JOBS AFTER COAL A Just Transition for Queensland | 1

1 Coalrsquos current role in the Queensland economy

Coal in the Queensland economyOver the last 30 years the Queensland coal industry has grown substantially to become a significant part of

the Queensland economy and create employment in many regional areas The industry has been concentrated

in the Bowen and Surat Basins throughout rural western and central Queensland The boom for the industry

began in 2005ndash2006 when prices for coal rose by around 400 causing massive industry profits in the

2000s (Stanford 2014) Prices have fallen dramatically since the flow on effects of the global financial crisis

(GFC) slowed down Chinarsquos growth in 2011ndash2012 However prices have remained much higher than the

below US$40tonne that was averaged through the 90s and earlier (Quandlcom 2015)

Queensland coal train

2 | JOBS AFTER COAL A Just Transition for Queensland

Over the last five years since the GFC and later slow down in coal demand the total Queensland coal

production has after decades of growth levelled off at just over 200 million tonnes per annum (Figure 1)

0

50

100

150

200

250

2008ndash09 2009ndash10 2010ndash11 2011ndash12 2012ndash13

Mill

ion

tonn

es

Figure 1 Queensland Coal Production 2008ndash09 to 2012ndash13 Source Queensland Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13

Queensland uses 20 to 25 million tonnes of its mined coal for electricity generation each year (Government

2014) But the rest which is 85 to 90 of the mined coal is exported to countries all over the world and

mainly to Asia In 2013ndash14 33 of the production was thermal coal and 67 was for coking coal production

to make steel (Table 1) Both thermal and coking coal create greenhouse gas emissions when they are burnt

However contrary to government and media perceptions the coal industry is not the sole driving force

behind the Queensland economy As in most modern economies the service industry dominates with 60

of economic output followed by the construction industry with 10 manufacturing at 7 and agriculture

forestry and fishing at 3 (ABS 2014)

An overview of the Queensland coal industry would not be complete without an examination of its level of

foreign ownership By volume 80 of Queenslandrsquos coal production is foreign owned (Government 2013)

This means that a majority of the profits from the operations of these companies are being directed out of

Australia to international shareholders

JOBS AFTER COAL A Just Transition for Queensland | 3

Table 1 Queensland Coal Mining Areas Production and Types 2009ndash10 to 2013ndash14

2009ndash2010 2010ndash2011 2011ndash2012 2012ndash2013 2013ndash2014

Mines operating 56 57 58 59 59

Saleable production Open-cut

Northern 76 450 64 167 62 632 71 268 78 953

Central 63 319 52 637 56 032 63 871 73 801

Southern 39 339 37 423 45 010 43 709 43 651

Total (mt) 179 108 154 227 163 674 178 848 196 405

Underground

Northern 7 642 8 965 9 492 13 266 11 470

Central 18 968 16 642 15 082 14 511 18 433

Total (mt) 26 611 25 606 24 574 27 776 29 903

Coking coal total 125 178 108 731 117 000 131 328 151 571

Thermal coal total 80 540 71 103 71 247 75 296 74 737

State total 205 719 179 834 188 247 206 624 226 309

Source Queensland Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13

Abbot Point

4 | JOBS AFTER COAL A Just Transition for Queensland

Revenue and economic activity generated by the coal Industry

As a nation the coal industry is Australiarsquos second

largest export earner after the iron ore industry Last

year it generated $40 billion which equal to about

12 of export revenue (Cleary 2015) The coal

industry in Queensland will pay around $2 billion

which amounts to 80 of total mining royalties

to the state Government in 2014ndash15 (Campbell

2014) Coal royalties represent around 4 of

Queensland Government revenue (Vorrath 2014)

Similar amounts come from vehicle registrations

and interests on funds saved for superannuation

in addition to long service leave entitlements as

shown in Figure 2 Such figures are not large in the

financial context of running a state government

Despite this the taxation contribution of coal is

incorrectly perceived as significant

The large revenues derived from coal exports

is due to the massive volumes the industry has

reached in recent years Total revenue to the coal

industry from its mining operations amounts to

approximately $25 billion per year that is added

to the economy This is a significant contribution

to Queenslandrsquos economy but one that needs

to be viewed relative to the size of the economy

Queenslandrsquos economy produced output worth

$290 billion in 2012ndash13 meaning the coal

sector accounted for around 7 of production

by value as shown in Figure 3 (right)

Commonwealth grants

Other staterevenue

MV registration

3

4840

54Interest

Coal royalties

Figure 2 Queensland State Government Revenue SourcesSource Queensland Treasury (2014) Queensland State Budget 2014ndash15 Paper 2

Non-mining

Other

2

91

7

Coal

Figure 3 Queensland gross state product coal other mining and non-mining sectors 2012ndash13 Source ABS (2013) Catalogue 52200 Australian National Accounts State Accounts

Coal industry jobs and their locationsThere has been much debate recently as to the exact number of people employed by the coal mining industry

Industry figures have been disputed because of the industryrsquos continual representation and communication

of construction jobs as if they were permanent In addition the industry conspicuously classifies indirect

growth in employment within the local economy as jobs that mining development is responsible for creating

Although in regional mining communities mining employment is high it is relatively small on a statewide

JOBS AFTER COAL A Just Transition for Queensland | 5

level Most recently the industryrsquos employment claims were revealed again in the Australian Land Court

case regarding coal mining development by Indian mining company Adani in the Galilee Basin to have been

exaggerated (Cox 2015) Adanirsquos mine proposal cited the figure of 10000 jobs attached to its development

application but the court was told by Adanirsquos own expert witness that the mine development would only

create 1464 actual jobs throughout the ongoing operation of the mine (Branco 2015)

According to research by The Australia Institute a majority of Queenslanders believe that the mining industry

employs ten times the amount of people it actually does (Campbell 2014) In reality the report shows that

the coal industry only employs 12 of the Queensland workforce (Vorrath 2014) What is significant is how

this employee population is regionally distributed with a majority of the employees residing in the Central

Highlands Isaac and Mackay Regional Council areas (Figure 4)

0

5000

10000

15000

20000

25000

30000

Whitsu

nday

Suns

hine C

oast

Banan

a

Rockh

ampt

on

Brisba

ne

Cent

ral H

ighlan

dsIsa

ac

Macka

yTo

tal

Em

ploy

men

t

Figure 4 Coal jobs by Local Government Area (LGA) in Queensland Top 8Source ABS 2011 Census Coal mining jobs by region in Queensland

SummaryThe coal industry plays a significant role in the Queensland economy but it is by no means irreplaceable As

the next section will show the coal industry has fallen from the lofty heights of its unprecedented profitability

and aggressive hunger for expansion It has come to a slower pace but due to the forecasted change expected

to affect the industry a new approach to planning local economies beyond coal is required

6 | JOBS AFTER COAL A Just Transition for Queensland

2 The drivers of change in the coal industry

Drivers of change The global energy market is in a period of dynamic long-term structural change that will have ongoing

repercussions for energy exporting countries such as Australia Over the last ten years the expansion in gas

the decrease in renewable energy prices the increasing of capital infrastructure costs the demand for cleaner

energy and energy efficiency have all dramatically changed the nature of the global energy economy (Ben

Caldecott 2014)

Coal has been the energy source that has made so many technological advancements through history possible

Although there has been many struggles and social costs along the way The communities workers and

companies that made this progress possible have substantially contributed to the creation of the modern world

Though if there is one thing we know from history it is that empires rise and fall The coal empire is crumbling

As it crumbles it is creating unnecessary instability stress and hardship on communities In communities like

Mackay where income has dropped by 30ndash40 as many other small mining towns people and businesses have

been caught culturally and economically unprepared for this economic shift (Bleby 2013)

Windmill and wind farm

JOBS AFTER COAL A Just Transition for Queensland | 7

2 The drivers of change in the coal industry

Drivers of change The global energy market is in a period of dynamic long-term structural change that will have ongoing

repercussions for energy exporting countries such as Australia Over the last ten years the expansion in gas

the decrease in renewable energy prices the increasing of capital infrastructure costs the demand for cleaner

energy and energy efficiency have all dramatically changed the nature of the global energy economy (Ben

Caldecott 2014)

Coal has been the energy source that has made so many technological advancements through history possible

Although there has been many struggles and social costs along the way The communities workers and

companies that made this progress possible have substantially contributed to the creation of the modern world

Though if there is one thing we know from history it is that empires rise and fall The coal empire is crumbling

As it crumbles it is creating unnecessary instability stress and hardship on communities In communities like

Mackay where income has dropped by 30ndash40 as many other small mining towns people and businesses have

been caught culturally and economically unprepared for this economic shift (Bleby 2013)

It is clear that coal thermal coal especially is no longer good for humanity despite our former Prime Minister

Tony Abbottrsquos fervent belief that it is (Online 2014) WA Premier Colin Barnett heralded last year in his

declaration that coal is in lsquostructural declinersquo (Burrell 2014) He was not wrong In the past 5 years alone the

Dow Jones Total Coal Market index has fallen by 76 (Baker 2014)

The reality is that the world is rapidly shifting away from fossil fuels including countries that are key

importers of Australiarsquos coal and gas China India Japan and South Korea import over 80 of Australiarsquos

export market for coal and gas The reality is that these countries have recently either announced policies to

shift away from these fuels andor initiatives to drastically enhance renewable energy and energy efficiency

(ldquoPolitics of Climate Change in Asiardquo 2015)

The following section of the report analyses the risk of Australia not being prepared economically for changes

that are already taking place As a country and a state our governing political parties continue to pursue

a strategy that assumes our short and long term economic prosperity is dependent on mining Few of our

political leaders are attempting to communicate an economic vision free from the inevitable boom-bust cycles

created by extracting emissions-intensive resources It is also a strategy that assumes energy production and

distribution will continue on as a very centralised process rather than following the great trend of networked

and decentralised distribution that is shaping the 21st century (Riftkin 2015) This strategy is short-sighted

given recent announcements by China and India to phase out fossil fuels and move rapidly towards cleaner

and more distributed energy sources (Rohr 2014)

The international coal priceThe majority of Queenslandrsquos export coal mining industry is dependent on demand for steel making from

the worldrsquos coking or metallurgical coal market This is a market that has been severely impacted by a

combination of actions in China the biggest steel manufacturer in the world Primarily Chinarsquos housing

boom has been slowing down over recent years this in turn has massively reduced the need for steel Most

importantly China is also running a ldquowar on pollutionrdquo that is having direct short- and long-term impacts on

the viability of the coal industry as a whole This has resulted in a campaign of state enforced closures of coal

plants and steel mills especially near the countryrsquos big industrial coastal cities (Ng 2015)

Prices on the international coking coal stock market have plummeted from the all time high of US$330

tonne in late 2011 to a sobering low of US$109tonne in the first quarter of 2015 The outlook still remains

gloomy for the coal sector

With the continued slowdown in the global and Chinese economies the price of iron ore has also collapsed

Prices have dropped by one third in the first quarter of 2015 alone causing at least one Australian mine to

close operations and many others to cancel plans for expansions (Sandersen 2015) Iron ore is closely linked

to the sales of coking coal which is used most commonly to melt iron ore into steel

8 | JOBS AFTER COAL A Just Transition for Queensland

20

14

US

$t

0

100

200

300

400

2005 2007high quality high coking semi-soft coking

2009 2011 2013 2015

Figure 5 Coking Coal Prices 2005ndash2015 (worldcoalcom)

A similar price drop has hit thermal coal used in coal-fired power stations Thermal coal is mined in many

Surat Basin mines and is also found in some Bowen Basin mines where it is an addition to the high quality

coking coal found in the area Significantly the proposed mining development in the Galilee Basin is only

for thermal coal which at a time when coal-fired power stations are being replaced by cleaner options is

alarming (Pacific 2012) Thermal coal was priced at US$120tonne in late 2011 It had plunged to US$73

per tonne by February 2015 and has remained below US$60tonne since May 2015 Chinarsquos new rules of

cutting ash and sulphur content in seaborne coal imports along with increasing tariffs on coal imports has

meant that even Shenhua Chinarsquos biggest coal company cut coal imports in early 2015 (Jenda 2015)

Overall Chinese consumption dipped by 16 in 2014 despite their economic growth of 73

The decade of relentless and largely unplanned investment in Queensland coal mining in times of high prices

led to a massive oversupply against a background of decreasing demand The state and federal governments

failed to slow the industry down so that it did not overshoot an economically sustainable size This has made

the challenge of transitioning out of the industry even harder along with magnifying the pain now faced by

many mining towns (Neubauer 2015) All of this leaves a million-dollar question Is the downshift in [coal]

demand terminal According to Richard Gibbs from the Macquarie Bank it certainly is (Neubauer 2015)

The global coal market is also experiencing competition from renewables and shale gas slow growth and

government policies which are in part driven by the threat of climate change

The growing competition from renewable energy sources has been increasing its impact on the coal industry

by slowly but steadily eroding profits of domestic coal power stationsmdashand thus demand for coalmdashacross the

country (Hewson 2015) In Queensland the state government should be applauded for its 50 renewable

energy target by 2030 which will further add strain to struggling coal power generators (Parkinson 2015)

A more than 50 decline in coal prices has seen most listed coal companies globally to lose 80ndash90 of their

equity market value in the last four years (Buckley 2014) In 2014 the world added more energy generation

capacity from wind power than from coal Overall Europe and America have already cut coal-fired generation

JOBS AFTER COAL A Just Transition for Queensland | 9

capacity by over a fifth in a decade The sun will undoubtedly rise even further for renewable energy in 2015

but for coal there remains a lot further to fallrdquo said a report by the Institute for Energy Economics and

Financial Analysis in January 2015 (Buckley 2015a)

This statement is borne out by the facts

bull In 2014 new global wind installations grew 40 to 46GW led by China and America (Buckley

2015b)

bull In 2014 the US solar installation sector created almost 50 more jobs than the oil and gas pipeline

construction industry (Foundation 2015)

bull From 2000 to 2011 global annual growth in the yearly global installation rate of photovoltaic solar

panels was 40 In 2011 the total amount of global PV capacity installed was 27GW an astonishing

60 growth on 2010 levels (Green 2012)

bull Unsubsidised renewable energy is now cheaper than new coal-fired power in Australia (Paton 2013)

Solar installation

10 | JOBS AFTER COAL A Just Transition for Queensland

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

Coal power station

JOBS AFTER COAL A Just Transition for Queensland | 11

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

The outlook for coal pricesWhile some consider the outlook for coal prices as cyclical in nature and that a turnaround will increases

prices for coal other analysts believe this downward trend based on policies health impacts and concern

about global warming is here to stay

Financial reports from the major mining companies in Australia paint a grim outlook for global metallurgical

coal prices China was once the great hope for coking coal exporters but BHP Billitonrsquos metallurgical coal

market outlook (May 2013) indicated a flattening demand into the future (Billiton 2013 Rohr 2014)

BHP Billiton has warned that the increased usage of scrap metal in furnaces would result in lower growth in

demand for pig iron while greater production from electric arc furnacesmdashwhich use little or no coking coalmdash

are expected to ldquocontribute a significant share of total Chinese steel production by 2030rdquo Although coking

coal will likely remain necessary for steel production for some time as renewable energy sources grow the

efficiency and lower emissions intensity of electric arc furnaces will help them to outcompete coking coal in

the not too distant future Some experts even predict another technology called lsquodirect reduced ironrsquo that uses

gas to make steel could make coking coal redundant within a decade (Macleod 2013)

It is not just China BHP Billiton also cautions that the Indian steel outlook is less certain as steel production

growth has been slower than expected Prices for commodities from iron ore to coal are sinking as Chinarsquos

leadership tries to steer the economy away from debt-fueled property investment and smokestack industries

embracing services and domestic-led consumption At the same time President Xi Jinping is stepping up efforts

to combat pollution The provincial government of Beijing and a number of other major cities have made plans to

ban coal use by 2020 further putting the squeeze on all types of heavy industry (Coulter 2015)

However the outlook is not all dismal for coal everywhere In India demand is expected to continue to rise

without peaking until the 2030s Indiarsquos government predicts a 19 rise in coal imports this year which

may offer very short-term opportunities for Australian miners The opportunities are short term because these

import increases are something the Indian government has indicated it does not want continued into the

future Indiarsquos plan is to ramp up renewable energy technology as well as develop their untapped coal fields

to support a gradual phase out of thermal-coal imports within the next 2ndash3 years (Baker 2014) Regardless

the Indian mining giant Adani still hopes it can get coal from its proposed Carmichael mine in the Galilee

Basin and export it to India for the duration of its 60 year life span After a number of international banks

have ruled out funding for the Carmichael coal mine Adani has been looking for cash handouts from the

Australian Government to fund its shaky proposal However sanity has prevailed and these have been ruled

out by the new Prime Minister (Edis 2015) It is clear the Indian governmentrsquos plan for Indiarsquos future coal

supply sources does not involve Australian coal

12 | JOBS AFTER COAL A Just Transition for Queensland

This is the marketplace in which Australiarsquos exported coal competes and this is the marketplace that holds the

livelihoods of workers and communities in its hands The current state and future outlook of the coal industry

suggests that it would be risky not to scale down the thermal coal industry and at least restrict any new mine

expansions in the coking coal sector There are those who remain positive about the industryrsquos future but

recent events in the coal industry and uncertainty over medium and long term suggest that there are better

industries to back Behind these diverse risks threatening the coal industry is the inescapable scientific

fact that we cannot afford to burn any more coal from new coal mines if we want to decrease the risk of our

already fifty fifty chance of avoiding the worst impacts of global warming (IPCC 2013) If we wanted to try

and remove the total risk of runaway climate change we could not even afford to burn the coal that are sitting

in trucks on trains at port yards and in ships Not even the coal travelling on conveyors into power station

furnaces about to be burnt right this very moment

The carbon bubbleFrom the South Sea Bubble as well as the housing and dotcom bubbles of the last decade periodic over-

investment has been made into sectors deemed too important to fail The rush and hubris of investors seeking

incomparable profits to finance such industries has led to speculative bubbles of over-estimated value that

eventually burst In the economic fallout that results working people carry the burden while the speculators

and profiteers generally are not held accountable Another speculative bubble has formed and it dwarfs the

size of all of the bubbles that have come before it It is called the Carbon Bubble (Tracker 2015)

One of the few things world leaders agreed upon at the Copenhagen climate talks was that the Earth needs to

stay below 2degC warming to minimize the risk of runaway climate change

bull If we are to avoid going over 2degC we can emit only 565 more gigatonnes of carbon dioxide (IPCC 2007)

bull Burning the fossil fuel that corporations now have in their reserves would result in emitting 2795

gigatonnes of carbon dioxidemdashfive times the safe amount (Leaton 2013)

The Intergovernmental Panel on Climate Change has now produced its own carbon budget They have calculated

that if we continue pumping carbon into the atmosphere at todayrsquos rate this budget will be exhausted within

15ndash25 years (IPCC 2013) This means there will be growing political pressure on the fossil fuel industry to

keep most of its reserves in the ground That pressure has already begun around the world Citizens are pressing

their superannuation funds councils banks universities and other institutions to divest from fossil fuels with

growing success The year 2013 saw several major financial institutions recognise the financial and ethical

implications of continuing to finance fossil fuels with Norwegian Storebrand Rabobank and the World Bank

among those who made major announcements on divestment or cutting loans In 2014 major institutions

including Stanford University the Australian National University and Oxford University have divested their fossil

fuel funds (Advisors 2015) So far in 2015 local councils in Australia such as Moreland Newcastle Byron Bay

Melbourne and many more have also divested (Ryan 2015) Divestment is now going mainstream and will have

increasing impacts on fossil fuel company shares into the future

JOBS AFTER COAL A Just Transition for Queensland | 13

As a result of the momentum of the global divestment movement international stock exchanges are creating

new indexes to exclude fossil fuels in preparation of the impending seismic shift in global finances In late

April 2014 the worldrsquos largest fund manager Blackrock joined with the FTSE Group in London to create

a new index The ex-Fossil Fuels Index Series is an innovative set of benchmark indices that excludes

companies directly engaged in extracting so-called ldquostranded assetsrdquo in the hydrocarbons industry ldquoThis

is one of the fastest-moving debates I think Irsquove seen in my 30 years in marketsrdquo FTSE managing director

Kevin Bourne told the Financial Times (Clarke 2014) The Bank of England is now investigating its exposure

to risk from its fossil fuel investments To top that off the worldrsquos biggest sovereign wealth investment fund in

Norway has recently dumped coal investments (Carrington 2015) The largest contribution to climate change

from the fossil fuels in company inventories at present is from coal Because it has the largest climate impact

per unit of useful energy it is being targeted for early phase out

The book value of fossil fuel companies is determined not only by their current infrastructure and deposits

undergoing extraction but also by the size of their legally claimed reserves Because the book value of so

many companies has greatly exceeded their realisable value as emissions restrictions come into place a

speculative bubble has formed Unfortunately bubbles usually burst in the end leaving behind stranded

assets and stranded capitalmdashand leaving workers in the lurch The only alternative is a mature and planned

phase out of the industry that slowly devalues and deregisters fossil fuel reserves at a pace that does not lead

to financial crisis A planned phase out that gives time for just employment transitions for fossil fuel

communities

500

1000886

565

1500

2000

2500

3000

already burnt

remaining

2000ndash2050

2011ndash2050

Coal 2˚Global carbon

budget

Oil

Gas

GtC

O2

Global fossil fuel reserves

Figure 6 Carbontracker 2012 report The Carbon Bubble

14 | JOBS AFTER COAL A Just Transition for Queensland

In 2013 the report Unburnable Carbon highlighted that ldquoCompany valuation and credit ratings

methodologies do not typically inform investors about their exposure to these stranded assetsrdquo (Leaton

2013) This is very troubling when considering that the supporting share value of these reserves was $4

trillion in 2012 and that they serviced $127 trillion in outstanding corporate debt over the same period We

need to challenge these methodologies (Tracker 2015) In a move that signals a step towards the solutions

required the World Bank the European Investment Bank and the US Export-Import Bank have all announced

that they will not fund further coal-fired power plants except in exceptional circumstances As changes in

policy by the major coal consumers the uptake of renewables and the need to stay within the global carbon

budget begin to bite it is high-cost producers who will be squeezed first Australia is considered a high-cost

producer because of our strong industrial relations and wage laws which makes it all the more necessary that

our governments are vigilant and prepared for impending macroeconomic change (Cleary 2015)

SummaryThis is the environment in which the Australian coal industry finds itself Internationally coal is no longer

looking like a safe long-term investment within the context of the rapid changes afoot in the world The coal

industry leaders are either in denial about their industryrsquos future or are determined to squeeze as much profit

as possible until the cost gets worn by workers and their communities (Saunders 2015)

The issues of climate change demands for cleaner air and more efficient new technologies The realities of

the market are revealing coal as the sunset industry it really is This is not an industry Queenslanders can

rely on to create a stable resilient and sustainable economy It cannot be relied upon for future wealth

and future jobs We have been warned by the UN Climate Change Secretariatrsquos Executive Secretary that the

diversification and a managed transition away from coal is what we need to do and we need to heed this

warning (Australian 2015)

JOBS AFTER COAL A Just Transition for Queensland | 15

3 Assessing some of the economic opportunities in mining regions

IntroductionThe great state of Queensland is endowed with sustainable human and environmental resources that have the

potential if we choose to harness it to drive a balanced diverse and resilient economy for generations to

come Diversifying Queenslandrsquos economy to create sensible and stable prosperity beyond the boom and bust

vagaries of the mining industry must be a key objective of the Queensland Government The Newman LNP

Governmentrsquos Queensland Plan headline was lsquoforging diversity and prosperityrsquo (Government 2014) But

throughout Newmanrsquos reign as premier no action was taken Under the new Palaszczuk Labor Government

there has been some effort to support economic diversification across the state This is insufficient because as

of yet nothing has been done to adequately fund facilitate and empower the actual communities where

mining takes place The grassroots Labour Environmental Action Network an organisation within the

Australian Labour Party has called for change At the 2015 Queensland ALP State Conference they put

forward a motion that was passed calling on the state government to prepare a just transition policy before the

next conference (ALP 2015)

Grain harvest

16 | JOBS AFTER COAL A Just Transition for Queensland

Most importantly both major parties have continued their relentless support for further coal mine expansions

that inherently suffocate the process of diversification

With the coal industry forecast to be in a lsquostructural declinersquo by political leaders and bankers alike it is now

essential that the focus for economic development be on industries that can bring sustainable prosperity to

Queensland (Burrell 2014 Robins 2014) In the United Kingdom under Prime Minister Thatcher the world

witnessed the consequences of industries closing without planning and without investment to transition local

communities and industries

The following section of the report outlines how the opportunities for sustainable economic development

are already known Queensland has well-established sectors with bountiful potential in agriculture tourism

manufacturing and education It also has the opportunity to capitalise on a boom in renewable energy and

bio-industrial products to create more sustainable economic sectors These industries are ready to fill the

void that will be and is being left by coal however they lack the support needed to ensure their presence in

mining communities to provide a just transition away from coal where it is most needed

Agriculture and aquacultureCurrently the Queensland agricultural sector is worth near $147 billion and employs over 90000 people

(Queensland Government 2012) The sector has the potential to massively expand its food exports to Asia as

population and economic growth continue to surge in the dynamic economic region Through the competitive

advantage of our proximity to Asia and high-quality produce capabilities agricultural products have become

Queenslandrsquos second largest export earner and have the potential for continued growth (Heath 2014) By

increasing availability of farming technology driving productivity minimising costs and focusing on profitable

premium produce markets the Queensland Agricultural Strategy (2012) aims to double the total value of

production for all agricultural commodities by 2040 With innovative new farming approaches and ecosystem

system management strategies such increases in production are possible in a way which sustainably manages

and regenerates the land

To reduce pressure on fish stocks from home and abroad the promotion of aquaculture could be further

encouraged across the state This industry is worth $10 Million a year (Lucas DLGP 2011) At present

there are several sites located along the coast however research conducted over the last decade has

identified future sites for land based aquaculture Industry consultation aquaculture management training

programs and related issues in developing a workforce need to be considered (Plan 2012) The Queensland

Aquaculture Industry Federation sees the need for continued collaboration between government and other

stakeholders in order for this industry to reach itsrsquo potential as a strong core industry (Federation 2015)

The Department of Employment Economic Development and Innovation is leading the government drive to

JOBS AFTER COAL A Just Transition for Queensland | 17

develop the aquaculture industry This could see a future where aquaculture goes further than just meeting

domestic demand and grow to cater for high value export markets (Lucas DLGP 2011)

New opportunities in animal genetics aquaculture horticulture and bio-processing are driving agriculture

and aquaculture sector growth in new directions Both industries are about creating intergenerational

economic sustainability Choosing these industries that have unlimited potential to sustain our communities

and our ecosystems over mining is choosing long-term jobs over short-term jobs that cannot be passed on to

the next generation The bottom line is that we live in a hungry world and Queensland is well placed to be a

reliable and sustainable source of food to other nations without the agricultural potential we are endowed with

(Government 2014)

Tourism and recreational fishingDespite setbacks due to the high Australian dollar and loss of skilled workers to the mining boom the

tourism industry is still a critical part of the Queensland economy with massive future potential (Dr Tien Duc

Pham 2015) The tourism industry made a significant employment contribution providing 124000 jobs in

2010ndash11 with steady growth in international visitor nights (Deloitte Access Economics 2012) Queensland

has the potential to become a global leader in tourism and ecotourism and by doing so to create more

jobs and revenue (Government 2014) This will be possible similarly as in agriculture by promoting the

experiences available in our natural places and the quality hospitality we can provide to the growing Asian

middle class (Wilson 2013) The Chinese tourism market is seeking clean fresh and new experiences that

Queensland can cater to and is expected to be worth $74 billion by 2020 (Guterres 2014) Significant to

Queenslandrsquos potential in tourism is our ability to expand the tourism industry in the authentically Australian

rural and stunningly beautiful coastal mining communities where new economic activities are most needed

Further mining expansion in such places threatens to do to tourism what the growth in heavy industry did to

Gladstonersquos economic diversity where fishing and tourism are now non-existent

Although sustainably managed fisheries have the potential to provide continued economic prosperity to

Queensland there lies a major opportunity in net free fisheries to develop as tourism industries specifically

in coal mining regions A great recent example of this taking place is the newly established Net Free Zone

between from the Northern end of St Helens beach to Cape Hillsborough (Spelitis 2015) Along with three

other net free zones across the state the extent of the cumulative commercial opportunities for sustainable

tourism the net free zones have created has made it one of the three pillars as part of the 2020 vision for the

Queensland has the opportunity to develop an abundant and resilient agricultural industry that supports the transition to sustainable prosperity

18 | JOBS AFTER COAL A Just Transition for Queensland

Queensland Tourism Industry Council (Council 2015) The Mackay Isaac and Whitsunday (MIW) coal mining

region has excellent accessibility to a variety of fishing pursuits In addition to the new net free zone ther are

five fresh water stocked impoundment fisheries creating opportunities to promote lake beach offshore and

deepwater angling Improvement of accommodation facilities quality of jetties access roads and coordinating

fish trails with regional events could maximise visitation from recreational and tourism markets (Mackay

Tourism Tourism Queensland 2012) Charter fishing operatiors tackle stores campsites motels boat sales

boat building and maintenance all have the opportunity of benefitted from growth from the recreational fishing

tourism industry (Lucas DLGP 2012)

Higher educationOver the past decade millions of international students have visited Queensland for our quality tertiary

institutions and enjoyable lifestyle International education is Queenslandrsquos biggest service export with

nearly $2431 million being generated in 2013ndash14 alone (Australian Government 2014) The majority

of Queensland is strategically located in the latitudinal tropical zone where at a global level more than

50 of the worldrsquos population is forecasted to live by 2050 (Australian Government 2015) This makes

Queenslandrsquos universities well placed to develop the partnerships and research innovations tailored to the

challenges and opportunities of the new tropically-oriented world This will help Queensland and especially

North Queensland to attract increasing levels of international students to be part of our high-quality tropical

research institutions These students will increase spending through tourism support the creation of our own

skilled and globally connected workforce and connect Australia to business networks and opportunities across

the world In 2013ndash14 the Cairns region benefitted to the tune of $1375 million from international students

(McGuiggan 2014) With the right policies these benefits already being experienced primarily in Cairns

Townsville and Brisbane can be spread further across Queensland to make international education a strong

economic driver in transitioning mining communities

Bio-industrial productsAs the world moves away from fossil fuels the demand for cleaner more sustainable fuel sources will grow

(Emissions 2014) By using excess organic matter produced through food production to develop bio-industrial

products Queensland has the potential to export clean and sustainable fuels and bio-plastic materials to the

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Tourism is about experiences not extraction It has the potential to share Queensland beauty with the rest of the world and create sustainable local economies in the process

Queenslandrsquos greatest resource is the minds of its people We can share and co-create our innovations and learning with students from all over the world who want to make Queensland the launch pad for their careers

JOBS AFTER COAL A Just Transition for Queensland | 19

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Sorghum fields

20 | JOBS AFTER COAL A Just Transition for Queensland

Queensland is well placed to develop biofuel products from waste and oil crops such as Pongamia and algae

in addition to using the statersquos advanced sugarcane industry to convert excess cane using efficient cellulosic

processes Recent scientific developments in bio-plastics at the University of Queensland show that as a

state Queensland has the skills and ability to build a bio-industrial products industry that can contribute to a

sustainable economic future (Queensland 2015)

Renewable energyQueensland the sunshine state has enormous potential to generate electricity from the sun wind and waves

in addition to many other abundant renewable energy sources (Green 2012) Renewable energy has for a long

time been the catch cry from environmentalists as the complete solution to creating the jobs necessary to

replace the fossil fuel industry This report has been written partially to show recognition that as much as

renewable energy has the potential to create more jobs and replace fossil fuel domestic energy production it

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Gemasolar solar thermal power station Spain

JOBS AFTER COAL A Just Transition for Queensland | 21

cannot completely replace all of the coal

export industry jobs Numerous studies

show that with strong climate policies

over 7100 jobs can be created in

Queensland through renewable energy

by 2030 (Institute 2011) Thousands of

these jobs will be in regional

Queensland These should be prioritised

for regions where the mining industry

has developed rural communities in

need of new economic opportunities Far

North Queensland is especially suited to

further renewable energy investment

because of its climatic conditions and

because of the expensive transmissions

losses from having energy wired from

southern power sources (Allen 2011)

This makes it essential that government

policy ensures that the fair share of the

$35 billion in potential renewable

energy investment goes to rural mining

communities not only where it is most

needed economically but where it

makes the most business sense

(Department of Employment 2009)

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Queensland has the potential to become a smart sunshine state powered by clean and sustainable renewable energy By doing this we will be creating jobs in rural mining communities where they are needed most and building a foundation for a new sustainable economy

22 | JOBS AFTER COAL A Just Transition for Queensland

4 Community transitions Global case studies

There are communities around the worldwhich have reinvented themselves after the end of coal mining and

developed prosperous economies in doing so It has been a struggle but where there is a level of government

support inspired local leadership and the community is working together to regenerate its economy it has

been possible (Coal 2015) We are not suggesting any of these examples can be directly transferred to

Queensland communities facing the end of coal mining The object of these case studies is not to provide a

blueprint for Mackay Gladstone Rockhampton or mining towns in Central Queensland but to show the

diversity of ideas that have worked in other places that might stimulate our local communities to reinvent

themselves too

Hazelwood coal power station La Trobe Valley Vic

JOBS AFTER COAL A Just Transition for Queensland | 23

La Trobe ValleyIn the brown coal producing region of the La Trobe Valley in Victoria a grassroots transitionary force has been

underway for the past fifteen years Earthworker was set up by union and climate change activists seeking a

real alternative to coal and privately owned business models Earthworker Cooperativersquos mission is to create

jobs that respond to the lsquochallenges of climate change and the need for local job creation by facilitating the

establishment of worker-owned cooperatives hellip in sustainability-focused industriesrsquo (Earthworker 2015)

Their current focus is the establishment of a cooperative producing solar hot water systems in partnership

with an existing business called lsquoEverlast Hydro Systemsrsquo Their goal is to take production to Morwell in the

La Trobe Valley where workers are in need of an alternative to the coal industry The unique cooperative model

has made selling arrangement possible through inserting the option to buy a solar hot water system through

enterprise bargaining agreements

BanwenThe DOVE workshop in Banwen South Wales (Dove 2015) was started by agroup of women who during

the 1984ndash85 coal minersrsquo strike decided that community-based education was the most practical path to

regenerate the local economy Setting up shop in an abandoned mine office they developed a series of adult

education workshops for women Three decades later the DOVE building hosts a diverse set of small-scale

entrepreneurs including a daycare a library a community garden and a cafeacute featuring local foods

OrkneyOrkney like Central Queensland is a relatively isolated place with a scattered population Situated at the

top of Scotland two hours from the mainland by ferry Orcadians like Central Queenslanders often feel

like spectators to what goes on in the rest of their country They also feel vulnerable to central government

decisions and are often irritated by the lack of understanding of island life on the part of distant authoritiesmdash

its particular customs dialect and ways of doing things Since Norse times Orkney islanders burned peat (a

very young form of coal) as their primary fuel source but all the peat has been dug up This traditional way

of life where each farming family had its own peat bank and spent long summer days cutting and drying

peats while sharing picnics as children played is gone Another non-renewable energy source North Sea oil

discovered in the 1970s brought positive and negatives for the island It turned the tide of depopulation but

like the peat banks the oil is depleting and another lsquoend of an erarsquo is approaching Orcadians have woken up

to the fact that they canrsquot continue to hark back to the past and are confronting the issues of a future without

fossil fuels

Over the last three decades European community funding has helped Orkney to equip itself for the green

energy revolution Orkney now plays a global role in the evolution of wave and tidal technologies and

significant research and development work is creating new employment opportunities A high school in

Stromness was converted into the European Marine Energy Centre and is now a world leader providing

developers the opportunity to test full-scale prototypes in the sea The worldrsquos largest single-rotor tidal turbine

24 | JOBS AFTER COAL A Just Transition for Queensland

was the first in Scotland to be connected to the national grid from this centre Marine energy combined with

an expansion of wind turbines means that the island is now self-sufficient in electricity These renewable

energy developments have created jobs in the Orkneys in civil works and erection grid connection and

communications (Stuart 2011)

Investment in renewable energy and its associated RampD has attracted people to live work and study on the

island Islanders used to have to leave to get tertiary education but it is now possible to study for an MSc in

renewable energy at a Heriot Watt University campus in Stromness A new generation of Orcadians have grown

up to see renewable energy as the way of the future something quite ldquonormalrdquo which will provide greater

opportunities for their children to stay on the island with genuine prospects for employment in meaningful

jobs requiring a wide range of skills and qualifications This shows what a community in transition to a low

carbon future can look like

Nord-Pas De CalaisUntil 1986 the north-east region of France Nord-pas de Calais was a major coal mining area It still boasts

huge twin tailings mountains the largest in Europe which have become a tourist attraction It is known

to Australians for the war cemeteries associated with the battle of the Somme in WW1 but it has recently

undergone a remarkable transformation towards a truly sustainable economy Old coal mines at Lens have

been transformed into an art gallery displaying works from the Louvre collection in Paris Hundreds of people

are trained in energy efficiency solar energy and green architecture at a new training centre in nearby Loos-

en-Gohelle

The Chamber of Commerce invited economist and social visionary Jeremy Rifkin of the TIR Consulting

Group and his chief economist Skip Laitner to apply their model of the third industrial revolution to the

district (Riftkin 2015) Rifkinrsquos Third Industrial Revolution combines renewable energy energy efficiency

and the connectivity of the internet Buildings are energy generators and hydrogen is used as energy storage

After working with the community for some time the Master Plan was published in 2013 and envisages

that 100000 new jobs can be created by the transition plan (LLC 2013) Certainly the population has not

declined since mining days and has even slightly increased Inspired local leadership was the key in this

community plus some outside funding to help with the underpinning research

Appalachia (Kentucky)The transition process is just starting here but the community is very organised Kentuckians For The

Commonwealth has been battling the negative effects of coal mining for some decades and is now planning a

transition to ldquobuilding a better future beyond coalrdquo (Commonwealth 2015) Last year they held a conference

in Harlan Kentucky right in the middle of the Appalachian coal fields and invited guests from other US

regions in the same position as well as from Wales It is too soon to see what the outcome of their learning

process will be but they are another example of a community taking its future into its own handsmdashoptimistic

that there is a better future after coal

JOBS AFTER COAL A Just Transition for Queensland | 25

5 A just transition for coal mining communities policy recommendations

The opportunities to transition from unsustainable coal mining to prosperous communities with decent

employment will not just materialise by themselves It will need the political will and the right incentives to

ensure that communities are not left fending for themselves with unemployment increasing and families

in need of long-term welfare But not only is the political will not currently there both major political

parties continue to support the expansion of this sunset industry and by doing so are making the transition

challenges progressively more difficult (Denniss 2012) For too many years governments have uncritically

supported the coal mining sector Entire government departments have been focused on facilitating mining

with tax incentives weakening assessment and approval processes along with providing through tax payer

money established industrial infrastructure to support new projects Government policy often seeks to grow

royalties income by supporting the extraction of as much coal as possible as an escape the challenge of

finding other ways to increase state revenue New sustainable industries in coal communities will need just as

much if not more support while it gets started

We propose that communities local businesses workers unions community groups environment groups

local government and state and federal governments all need to be involved in planning a transition to

alternative forms of economic development and providing new jobs We call this a Just Transition (Anthea

Bill amp Evans1 2008 Brecher 2012) Just Transition is a framework for a fair and sustainable shift to a low

carbon economy proposed by trade unions and supported by environmental NGOs A Just Transition holds

that a shift to a lower carbon economy is vital to avoid dangerous climate change

Bimblebox Nature Refuge

26 | JOBS AFTER COAL A Just Transition for Queensland

Tough targets to cut greenhouse pollution supported by new environmental regulations and emerging carbon

markets will transform the global economy over the next decade These shifts will have major implications

for working people in energy supply industry and transport and for everyone as consumers There is a concern

that significant periods of economic restructuring in the past have often happened in a chaotic fashion

leaving ordinary workers along with their families and communities to bear the brunt of the transition to

new ways of producing wealth A just transition seeks to prevent such injustice becoming a feature of this

transition suggesting that it would not only be morally wrong and socially damaging but would undermine the

credibility of the transition itself and could slow or even halt the changes that must be made

It is through the challenges of communicating the urgency of climate change and other social and

environmental impacts that much of the debate about coal and its consequences for land water and the

climate has become unnecessarily adversarial and polarised Coal mining and power generation communities

deserve acknowledgement and appreciation for all that they have historically and currently contributed to

our country and our economy In communicating the economic shifts that are taking place and facilitating

the necessary transitions the Australian community needs to be respectful of the history and identity of coal

communities Environment groups government unions and the community need to initiate and engage in

the discussions about transitions in an open honest and compassionate manner Only by approaching the

transition in this way can the adversarial nature of the debate be broken down to make way for transformative

mutually respectful and holistic solutions

Whitsundays lsquoHave a Heart for the Reefrsquo

JOBS AFTER COAL A Just Transition for Queensland | 27

A just transition recognises that support for policies are conditional on a fair distribution of the costs and

benefits of those policies across the economy A just transition should also recognise that the creation of

opportunities for active engagement by those affected in determining the future wellbeing of themselves

and their families is essential for the long term empowerment of citizens and communities The following

recommendations have been written with the aim of emphasising such community empowerment as a priority

Recommendations

1) Establishing a unit within the State Government to support coal mining regions to transition to new economies

Specific institutions are needed to develop transition plans They need to have strong government support

and funding regional offices and representation from diverse stakeholders A dedicated unit within the

Department of Infrastructure Local Government and Planning could be established to oversee this work

They could work on the ground in the main coal mining communities to bring government expertise into

regional entities that would develop local plans that involve and empower the whole community This unit

or a connected unit would analyse existing barriers to the creation of competitive advantages for alternative

sustainable industries and would identify actions the State Government can take to support such creation

Any policy and support should come with clear conditions and timeframes These regional entities would

need generous budgets to assist local groups to develop their transition strategies to support research re-

training and the development of new business and community start-up initiatives based on the needs and

strategies of communities The key to communities becoming economically resilient is high levels of autonomy

and freedom in shaping their economic futures Research funding available to the regional entities will be

essential to the empowerment of local leadership Research funding should at least reach the OECD research

funding average and it should prioritise low carbon technologies and industry sectors with increased triple

bottom line sustainability potential

2) Support community leadership in diversifying local economies through the establishment of democratic regional entities

In each mining community a group of traditional and non-traditional community leaders willing to think

beyond lsquoBusiness as Usualrsquo to imagine a better future could be called together to work in collaboration with

and be resourced by the state government managed regional entities mentioned in recommendation one

The leaders would come from diverse backgrounds such as from local governments business associations

unions farming groups renewable energy businesses and educational institutions The objectives of these

leadership groups would be tailored to each community The objectives would in broad terms be to increase

employment in new diverse industries based on sustainable production and publicservice sector job creation

Expert facilitation alongside inclusive and democratic community engagement initiatives would be essential

to ensure the process and environment for creativity and innovation is maximised To develop such groups

it would be necessary to take stock of the existing resources skills and successful businesses on which a

new future can be built In addition an analysis of the social environmental and economic needs of the

28 | JOBS AFTER COAL A Just Transition for Queensland

community would also be beneficial These groups could then establish economic diversification projects

including value-added local production worker controlled co-operative enterprises and new community-

based enterprises that economically empower the local community Activities may also include support for

alternative industries in regard to process restructuring or subsidising the wages of workers displaced from

higher paying traditional industries

3) Support researching and communicating how the just transition can take place

Consistent research is needed on the best options to support the state and national economies to transition

This requires ongoing situational analysis of the global energy market shifts at both government levels In

addition each mining region will need assistance to research the number of jobs that are dependent on coal

the skills of those employed the level of local national and global long- and short-term risk to local mining

operations the transferability of jobs to other industries local opportunities for new enterprises and their

needs and the local educational and training needs and resources A key issue requiring research will be

around how the transitition scenarios differ depending on the level and relativity of thermal and coking coal

industries across coal mining communities The process for sourcing this information at a local and state

government level should be integrated into a policy feedback loop to support cyclical situational analysis and

policy adjustments from all levels of government This research should take place at the state level and be

encouraged at the industry and local level through grants

Mackay Central Queensland

JOBS AFTER COAL A Just Transition for Queensland | 29

4) Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

Many existing Queensland industries including those not highlighted in this report have the potential to

carry Queensland towards a new sustainable economy [sC5]mdashbut they will need support to do so Instead

of continuing to support and lower costs for the coal mining industry we need a plan to grow competitive

advantage across industries that have potential for sustainability and growth in regional mining communities

Along with industry and community organisations the State Government could organise a State Economic

Summit to assess existing industry clusters identify the potential of new and emerging industries consider

their competitiveness and key capabilities and identify barriers to increasing competitive advantage The

findings and recommendations from this Summit could be used to inform the work of the Unit established in

bullet point one above and the research outlined in bullet point two

5) Provide social protection of workers their families and incomes

If mines close suddenly workers need protection for their incomes and social services and possible relocation

even though many miners these days do not live in the communities where they mine Ideally these transition

plans would be developed early enough to ensure that new employment opportunities are in place for them

before mines actually close For many workers this is already too late but if the process begins now there will

be choices available for future retrenched coal workers who live in mining communities and regions Mining

companies could be incentivised andor penalised to give adequate notice to workers and other stakeholders

that closure may be impending and alternative economic opportunities need to be developed

6) Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

Involving the relevant unions in the planning of community transitions can enable them to move towards

becoming more proactive agents helping to plan the transition with critical networks and specific knowledge

about the needs of their members When a coal-fired power station in Washington State USA was scheduled

for closure for environmental reasons unions played a pivotal role persuading environmentalists and others

to delay the closure long enough for a Just Transition to provide different jobs for the workers This made it

possible for the coal resource to be replaced by wind and other renewable generation rather than natural

gasmdasha better environmental outcome and the unions became an active part in the phase out planning

Unions have a heavy workload defending workers rights and pay They need to be supported and financed to

play important roles in community transitions From facilitation and leadership of planning bodies career

planning and advice preferential hiring for displaced workers in the new alternative emerging industries and

leading the establishment of work controlled cooperatives unions have an essential role to play

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

References

ABC Online (2014) Coal lsquogood for humanityrsquo Prime Minister Tony Abbott says at $39b Queensland mine opening httpwwwabcnetaunews2014-10-13coal-is-good-for-humanity-pm-tony-abbott-says5810244 Retrieved 10th of November 2015

After Coal (2015) Community Regeneration West Virginia United States httpaftercoalcomengage-your-community Retrieved 10th of November 2015

Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

Arabella Advisors (2015) Measuring the Growth of the Global Fossil Fuel Divestment and Clean Energy Investment Movement httpwwwarabellaadvisorscomwp-contentuploads201509Measuring-the-Growth-of-the-Divestment-Movementpdf Retrieved 10th of November 2015

Australian Bureau of Statistics (2014) Australian National Accounts State Accounts 2012ndash13 Canberra Australia Retrieved 10th of November 2015

Australian Bureau of Statistics (2015) MackaymdashCensus Employment by IndustrymdashTime Series Australian Government Department of Employment Retrieved 10th of November 2015

Australian Government Department for Education and Training (2015) Draft National Strategy for International Education Canberra Australian Capital Territory Retrieved 10th of November 2015

Australian Government (2014) Export income to Australia from international education activity in 2013ndash14 Canberra Australia Retrieved 10th of November 2015

BHP Billiton (2013) Coal Briefing httpwwwbhpbillitoncom~mediabhpdocumentsinvestorsreports2013130529_coalbriefingpdf Retrieved 10th of November 2015

Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

Beyond Zero Emissions (2012) Laggard to Leader How Australia Can Lead the World to Zero Carbon Prosperity Melbourne University Melbourne Victoria Retrieved 10th of November 2015

Beyond Zero Emissions (2014) A Fossil Economy in a Changing World Melbourne University Melbourne Victoria httpmediabzeorgaufossileconomyFossilEconomypdf Retrieved 10th of November 2015

Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

One Million Climate Job Campaign (2015) About London United Kingdom httpclimatejobsorgzaabout Retrieved 10th of November 2015

Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 12: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

2 | JOBS AFTER COAL A Just Transition for Queensland

Over the last five years since the GFC and later slow down in coal demand the total Queensland coal

production has after decades of growth levelled off at just over 200 million tonnes per annum (Figure 1)

0

50

100

150

200

250

2008ndash09 2009ndash10 2010ndash11 2011ndash12 2012ndash13

Mill

ion

tonn

es

Figure 1 Queensland Coal Production 2008ndash09 to 2012ndash13 Source Queensland Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13

Queensland uses 20 to 25 million tonnes of its mined coal for electricity generation each year (Government

2014) But the rest which is 85 to 90 of the mined coal is exported to countries all over the world and

mainly to Asia In 2013ndash14 33 of the production was thermal coal and 67 was for coking coal production

to make steel (Table 1) Both thermal and coking coal create greenhouse gas emissions when they are burnt

However contrary to government and media perceptions the coal industry is not the sole driving force

behind the Queensland economy As in most modern economies the service industry dominates with 60

of economic output followed by the construction industry with 10 manufacturing at 7 and agriculture

forestry and fishing at 3 (ABS 2014)

An overview of the Queensland coal industry would not be complete without an examination of its level of

foreign ownership By volume 80 of Queenslandrsquos coal production is foreign owned (Government 2013)

This means that a majority of the profits from the operations of these companies are being directed out of

Australia to international shareholders

JOBS AFTER COAL A Just Transition for Queensland | 3

Table 1 Queensland Coal Mining Areas Production and Types 2009ndash10 to 2013ndash14

2009ndash2010 2010ndash2011 2011ndash2012 2012ndash2013 2013ndash2014

Mines operating 56 57 58 59 59

Saleable production Open-cut

Northern 76 450 64 167 62 632 71 268 78 953

Central 63 319 52 637 56 032 63 871 73 801

Southern 39 339 37 423 45 010 43 709 43 651

Total (mt) 179 108 154 227 163 674 178 848 196 405

Underground

Northern 7 642 8 965 9 492 13 266 11 470

Central 18 968 16 642 15 082 14 511 18 433

Total (mt) 26 611 25 606 24 574 27 776 29 903

Coking coal total 125 178 108 731 117 000 131 328 151 571

Thermal coal total 80 540 71 103 71 247 75 296 74 737

State total 205 719 179 834 188 247 206 624 226 309

Source Queensland Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13

Abbot Point

4 | JOBS AFTER COAL A Just Transition for Queensland

Revenue and economic activity generated by the coal Industry

As a nation the coal industry is Australiarsquos second

largest export earner after the iron ore industry Last

year it generated $40 billion which equal to about

12 of export revenue (Cleary 2015) The coal

industry in Queensland will pay around $2 billion

which amounts to 80 of total mining royalties

to the state Government in 2014ndash15 (Campbell

2014) Coal royalties represent around 4 of

Queensland Government revenue (Vorrath 2014)

Similar amounts come from vehicle registrations

and interests on funds saved for superannuation

in addition to long service leave entitlements as

shown in Figure 2 Such figures are not large in the

financial context of running a state government

Despite this the taxation contribution of coal is

incorrectly perceived as significant

The large revenues derived from coal exports

is due to the massive volumes the industry has

reached in recent years Total revenue to the coal

industry from its mining operations amounts to

approximately $25 billion per year that is added

to the economy This is a significant contribution

to Queenslandrsquos economy but one that needs

to be viewed relative to the size of the economy

Queenslandrsquos economy produced output worth

$290 billion in 2012ndash13 meaning the coal

sector accounted for around 7 of production

by value as shown in Figure 3 (right)

Commonwealth grants

Other staterevenue

MV registration

3

4840

54Interest

Coal royalties

Figure 2 Queensland State Government Revenue SourcesSource Queensland Treasury (2014) Queensland State Budget 2014ndash15 Paper 2

Non-mining

Other

2

91

7

Coal

Figure 3 Queensland gross state product coal other mining and non-mining sectors 2012ndash13 Source ABS (2013) Catalogue 52200 Australian National Accounts State Accounts

Coal industry jobs and their locationsThere has been much debate recently as to the exact number of people employed by the coal mining industry

Industry figures have been disputed because of the industryrsquos continual representation and communication

of construction jobs as if they were permanent In addition the industry conspicuously classifies indirect

growth in employment within the local economy as jobs that mining development is responsible for creating

Although in regional mining communities mining employment is high it is relatively small on a statewide

JOBS AFTER COAL A Just Transition for Queensland | 5

level Most recently the industryrsquos employment claims were revealed again in the Australian Land Court

case regarding coal mining development by Indian mining company Adani in the Galilee Basin to have been

exaggerated (Cox 2015) Adanirsquos mine proposal cited the figure of 10000 jobs attached to its development

application but the court was told by Adanirsquos own expert witness that the mine development would only

create 1464 actual jobs throughout the ongoing operation of the mine (Branco 2015)

According to research by The Australia Institute a majority of Queenslanders believe that the mining industry

employs ten times the amount of people it actually does (Campbell 2014) In reality the report shows that

the coal industry only employs 12 of the Queensland workforce (Vorrath 2014) What is significant is how

this employee population is regionally distributed with a majority of the employees residing in the Central

Highlands Isaac and Mackay Regional Council areas (Figure 4)

0

5000

10000

15000

20000

25000

30000

Whitsu

nday

Suns

hine C

oast

Banan

a

Rockh

ampt

on

Brisba

ne

Cent

ral H

ighlan

dsIsa

ac

Macka

yTo

tal

Em

ploy

men

t

Figure 4 Coal jobs by Local Government Area (LGA) in Queensland Top 8Source ABS 2011 Census Coal mining jobs by region in Queensland

SummaryThe coal industry plays a significant role in the Queensland economy but it is by no means irreplaceable As

the next section will show the coal industry has fallen from the lofty heights of its unprecedented profitability

and aggressive hunger for expansion It has come to a slower pace but due to the forecasted change expected

to affect the industry a new approach to planning local economies beyond coal is required

6 | JOBS AFTER COAL A Just Transition for Queensland

2 The drivers of change in the coal industry

Drivers of change The global energy market is in a period of dynamic long-term structural change that will have ongoing

repercussions for energy exporting countries such as Australia Over the last ten years the expansion in gas

the decrease in renewable energy prices the increasing of capital infrastructure costs the demand for cleaner

energy and energy efficiency have all dramatically changed the nature of the global energy economy (Ben

Caldecott 2014)

Coal has been the energy source that has made so many technological advancements through history possible

Although there has been many struggles and social costs along the way The communities workers and

companies that made this progress possible have substantially contributed to the creation of the modern world

Though if there is one thing we know from history it is that empires rise and fall The coal empire is crumbling

As it crumbles it is creating unnecessary instability stress and hardship on communities In communities like

Mackay where income has dropped by 30ndash40 as many other small mining towns people and businesses have

been caught culturally and economically unprepared for this economic shift (Bleby 2013)

Windmill and wind farm

JOBS AFTER COAL A Just Transition for Queensland | 7

2 The drivers of change in the coal industry

Drivers of change The global energy market is in a period of dynamic long-term structural change that will have ongoing

repercussions for energy exporting countries such as Australia Over the last ten years the expansion in gas

the decrease in renewable energy prices the increasing of capital infrastructure costs the demand for cleaner

energy and energy efficiency have all dramatically changed the nature of the global energy economy (Ben

Caldecott 2014)

Coal has been the energy source that has made so many technological advancements through history possible

Although there has been many struggles and social costs along the way The communities workers and

companies that made this progress possible have substantially contributed to the creation of the modern world

Though if there is one thing we know from history it is that empires rise and fall The coal empire is crumbling

As it crumbles it is creating unnecessary instability stress and hardship on communities In communities like

Mackay where income has dropped by 30ndash40 as many other small mining towns people and businesses have

been caught culturally and economically unprepared for this economic shift (Bleby 2013)

It is clear that coal thermal coal especially is no longer good for humanity despite our former Prime Minister

Tony Abbottrsquos fervent belief that it is (Online 2014) WA Premier Colin Barnett heralded last year in his

declaration that coal is in lsquostructural declinersquo (Burrell 2014) He was not wrong In the past 5 years alone the

Dow Jones Total Coal Market index has fallen by 76 (Baker 2014)

The reality is that the world is rapidly shifting away from fossil fuels including countries that are key

importers of Australiarsquos coal and gas China India Japan and South Korea import over 80 of Australiarsquos

export market for coal and gas The reality is that these countries have recently either announced policies to

shift away from these fuels andor initiatives to drastically enhance renewable energy and energy efficiency

(ldquoPolitics of Climate Change in Asiardquo 2015)

The following section of the report analyses the risk of Australia not being prepared economically for changes

that are already taking place As a country and a state our governing political parties continue to pursue

a strategy that assumes our short and long term economic prosperity is dependent on mining Few of our

political leaders are attempting to communicate an economic vision free from the inevitable boom-bust cycles

created by extracting emissions-intensive resources It is also a strategy that assumes energy production and

distribution will continue on as a very centralised process rather than following the great trend of networked

and decentralised distribution that is shaping the 21st century (Riftkin 2015) This strategy is short-sighted

given recent announcements by China and India to phase out fossil fuels and move rapidly towards cleaner

and more distributed energy sources (Rohr 2014)

The international coal priceThe majority of Queenslandrsquos export coal mining industry is dependent on demand for steel making from

the worldrsquos coking or metallurgical coal market This is a market that has been severely impacted by a

combination of actions in China the biggest steel manufacturer in the world Primarily Chinarsquos housing

boom has been slowing down over recent years this in turn has massively reduced the need for steel Most

importantly China is also running a ldquowar on pollutionrdquo that is having direct short- and long-term impacts on

the viability of the coal industry as a whole This has resulted in a campaign of state enforced closures of coal

plants and steel mills especially near the countryrsquos big industrial coastal cities (Ng 2015)

Prices on the international coking coal stock market have plummeted from the all time high of US$330

tonne in late 2011 to a sobering low of US$109tonne in the first quarter of 2015 The outlook still remains

gloomy for the coal sector

With the continued slowdown in the global and Chinese economies the price of iron ore has also collapsed

Prices have dropped by one third in the first quarter of 2015 alone causing at least one Australian mine to

close operations and many others to cancel plans for expansions (Sandersen 2015) Iron ore is closely linked

to the sales of coking coal which is used most commonly to melt iron ore into steel

8 | JOBS AFTER COAL A Just Transition for Queensland

20

14

US

$t

0

100

200

300

400

2005 2007high quality high coking semi-soft coking

2009 2011 2013 2015

Figure 5 Coking Coal Prices 2005ndash2015 (worldcoalcom)

A similar price drop has hit thermal coal used in coal-fired power stations Thermal coal is mined in many

Surat Basin mines and is also found in some Bowen Basin mines where it is an addition to the high quality

coking coal found in the area Significantly the proposed mining development in the Galilee Basin is only

for thermal coal which at a time when coal-fired power stations are being replaced by cleaner options is

alarming (Pacific 2012) Thermal coal was priced at US$120tonne in late 2011 It had plunged to US$73

per tonne by February 2015 and has remained below US$60tonne since May 2015 Chinarsquos new rules of

cutting ash and sulphur content in seaborne coal imports along with increasing tariffs on coal imports has

meant that even Shenhua Chinarsquos biggest coal company cut coal imports in early 2015 (Jenda 2015)

Overall Chinese consumption dipped by 16 in 2014 despite their economic growth of 73

The decade of relentless and largely unplanned investment in Queensland coal mining in times of high prices

led to a massive oversupply against a background of decreasing demand The state and federal governments

failed to slow the industry down so that it did not overshoot an economically sustainable size This has made

the challenge of transitioning out of the industry even harder along with magnifying the pain now faced by

many mining towns (Neubauer 2015) All of this leaves a million-dollar question Is the downshift in [coal]

demand terminal According to Richard Gibbs from the Macquarie Bank it certainly is (Neubauer 2015)

The global coal market is also experiencing competition from renewables and shale gas slow growth and

government policies which are in part driven by the threat of climate change

The growing competition from renewable energy sources has been increasing its impact on the coal industry

by slowly but steadily eroding profits of domestic coal power stationsmdashand thus demand for coalmdashacross the

country (Hewson 2015) In Queensland the state government should be applauded for its 50 renewable

energy target by 2030 which will further add strain to struggling coal power generators (Parkinson 2015)

A more than 50 decline in coal prices has seen most listed coal companies globally to lose 80ndash90 of their

equity market value in the last four years (Buckley 2014) In 2014 the world added more energy generation

capacity from wind power than from coal Overall Europe and America have already cut coal-fired generation

JOBS AFTER COAL A Just Transition for Queensland | 9

capacity by over a fifth in a decade The sun will undoubtedly rise even further for renewable energy in 2015

but for coal there remains a lot further to fallrdquo said a report by the Institute for Energy Economics and

Financial Analysis in January 2015 (Buckley 2015a)

This statement is borne out by the facts

bull In 2014 new global wind installations grew 40 to 46GW led by China and America (Buckley

2015b)

bull In 2014 the US solar installation sector created almost 50 more jobs than the oil and gas pipeline

construction industry (Foundation 2015)

bull From 2000 to 2011 global annual growth in the yearly global installation rate of photovoltaic solar

panels was 40 In 2011 the total amount of global PV capacity installed was 27GW an astonishing

60 growth on 2010 levels (Green 2012)

bull Unsubsidised renewable energy is now cheaper than new coal-fired power in Australia (Paton 2013)

Solar installation

10 | JOBS AFTER COAL A Just Transition for Queensland

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

Coal power station

JOBS AFTER COAL A Just Transition for Queensland | 11

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

The outlook for coal pricesWhile some consider the outlook for coal prices as cyclical in nature and that a turnaround will increases

prices for coal other analysts believe this downward trend based on policies health impacts and concern

about global warming is here to stay

Financial reports from the major mining companies in Australia paint a grim outlook for global metallurgical

coal prices China was once the great hope for coking coal exporters but BHP Billitonrsquos metallurgical coal

market outlook (May 2013) indicated a flattening demand into the future (Billiton 2013 Rohr 2014)

BHP Billiton has warned that the increased usage of scrap metal in furnaces would result in lower growth in

demand for pig iron while greater production from electric arc furnacesmdashwhich use little or no coking coalmdash

are expected to ldquocontribute a significant share of total Chinese steel production by 2030rdquo Although coking

coal will likely remain necessary for steel production for some time as renewable energy sources grow the

efficiency and lower emissions intensity of electric arc furnaces will help them to outcompete coking coal in

the not too distant future Some experts even predict another technology called lsquodirect reduced ironrsquo that uses

gas to make steel could make coking coal redundant within a decade (Macleod 2013)

It is not just China BHP Billiton also cautions that the Indian steel outlook is less certain as steel production

growth has been slower than expected Prices for commodities from iron ore to coal are sinking as Chinarsquos

leadership tries to steer the economy away from debt-fueled property investment and smokestack industries

embracing services and domestic-led consumption At the same time President Xi Jinping is stepping up efforts

to combat pollution The provincial government of Beijing and a number of other major cities have made plans to

ban coal use by 2020 further putting the squeeze on all types of heavy industry (Coulter 2015)

However the outlook is not all dismal for coal everywhere In India demand is expected to continue to rise

without peaking until the 2030s Indiarsquos government predicts a 19 rise in coal imports this year which

may offer very short-term opportunities for Australian miners The opportunities are short term because these

import increases are something the Indian government has indicated it does not want continued into the

future Indiarsquos plan is to ramp up renewable energy technology as well as develop their untapped coal fields

to support a gradual phase out of thermal-coal imports within the next 2ndash3 years (Baker 2014) Regardless

the Indian mining giant Adani still hopes it can get coal from its proposed Carmichael mine in the Galilee

Basin and export it to India for the duration of its 60 year life span After a number of international banks

have ruled out funding for the Carmichael coal mine Adani has been looking for cash handouts from the

Australian Government to fund its shaky proposal However sanity has prevailed and these have been ruled

out by the new Prime Minister (Edis 2015) It is clear the Indian governmentrsquos plan for Indiarsquos future coal

supply sources does not involve Australian coal

12 | JOBS AFTER COAL A Just Transition for Queensland

This is the marketplace in which Australiarsquos exported coal competes and this is the marketplace that holds the

livelihoods of workers and communities in its hands The current state and future outlook of the coal industry

suggests that it would be risky not to scale down the thermal coal industry and at least restrict any new mine

expansions in the coking coal sector There are those who remain positive about the industryrsquos future but

recent events in the coal industry and uncertainty over medium and long term suggest that there are better

industries to back Behind these diverse risks threatening the coal industry is the inescapable scientific

fact that we cannot afford to burn any more coal from new coal mines if we want to decrease the risk of our

already fifty fifty chance of avoiding the worst impacts of global warming (IPCC 2013) If we wanted to try

and remove the total risk of runaway climate change we could not even afford to burn the coal that are sitting

in trucks on trains at port yards and in ships Not even the coal travelling on conveyors into power station

furnaces about to be burnt right this very moment

The carbon bubbleFrom the South Sea Bubble as well as the housing and dotcom bubbles of the last decade periodic over-

investment has been made into sectors deemed too important to fail The rush and hubris of investors seeking

incomparable profits to finance such industries has led to speculative bubbles of over-estimated value that

eventually burst In the economic fallout that results working people carry the burden while the speculators

and profiteers generally are not held accountable Another speculative bubble has formed and it dwarfs the

size of all of the bubbles that have come before it It is called the Carbon Bubble (Tracker 2015)

One of the few things world leaders agreed upon at the Copenhagen climate talks was that the Earth needs to

stay below 2degC warming to minimize the risk of runaway climate change

bull If we are to avoid going over 2degC we can emit only 565 more gigatonnes of carbon dioxide (IPCC 2007)

bull Burning the fossil fuel that corporations now have in their reserves would result in emitting 2795

gigatonnes of carbon dioxidemdashfive times the safe amount (Leaton 2013)

The Intergovernmental Panel on Climate Change has now produced its own carbon budget They have calculated

that if we continue pumping carbon into the atmosphere at todayrsquos rate this budget will be exhausted within

15ndash25 years (IPCC 2013) This means there will be growing political pressure on the fossil fuel industry to

keep most of its reserves in the ground That pressure has already begun around the world Citizens are pressing

their superannuation funds councils banks universities and other institutions to divest from fossil fuels with

growing success The year 2013 saw several major financial institutions recognise the financial and ethical

implications of continuing to finance fossil fuels with Norwegian Storebrand Rabobank and the World Bank

among those who made major announcements on divestment or cutting loans In 2014 major institutions

including Stanford University the Australian National University and Oxford University have divested their fossil

fuel funds (Advisors 2015) So far in 2015 local councils in Australia such as Moreland Newcastle Byron Bay

Melbourne and many more have also divested (Ryan 2015) Divestment is now going mainstream and will have

increasing impacts on fossil fuel company shares into the future

JOBS AFTER COAL A Just Transition for Queensland | 13

As a result of the momentum of the global divestment movement international stock exchanges are creating

new indexes to exclude fossil fuels in preparation of the impending seismic shift in global finances In late

April 2014 the worldrsquos largest fund manager Blackrock joined with the FTSE Group in London to create

a new index The ex-Fossil Fuels Index Series is an innovative set of benchmark indices that excludes

companies directly engaged in extracting so-called ldquostranded assetsrdquo in the hydrocarbons industry ldquoThis

is one of the fastest-moving debates I think Irsquove seen in my 30 years in marketsrdquo FTSE managing director

Kevin Bourne told the Financial Times (Clarke 2014) The Bank of England is now investigating its exposure

to risk from its fossil fuel investments To top that off the worldrsquos biggest sovereign wealth investment fund in

Norway has recently dumped coal investments (Carrington 2015) The largest contribution to climate change

from the fossil fuels in company inventories at present is from coal Because it has the largest climate impact

per unit of useful energy it is being targeted for early phase out

The book value of fossil fuel companies is determined not only by their current infrastructure and deposits

undergoing extraction but also by the size of their legally claimed reserves Because the book value of so

many companies has greatly exceeded their realisable value as emissions restrictions come into place a

speculative bubble has formed Unfortunately bubbles usually burst in the end leaving behind stranded

assets and stranded capitalmdashand leaving workers in the lurch The only alternative is a mature and planned

phase out of the industry that slowly devalues and deregisters fossil fuel reserves at a pace that does not lead

to financial crisis A planned phase out that gives time for just employment transitions for fossil fuel

communities

500

1000886

565

1500

2000

2500

3000

already burnt

remaining

2000ndash2050

2011ndash2050

Coal 2˚Global carbon

budget

Oil

Gas

GtC

O2

Global fossil fuel reserves

Figure 6 Carbontracker 2012 report The Carbon Bubble

14 | JOBS AFTER COAL A Just Transition for Queensland

In 2013 the report Unburnable Carbon highlighted that ldquoCompany valuation and credit ratings

methodologies do not typically inform investors about their exposure to these stranded assetsrdquo (Leaton

2013) This is very troubling when considering that the supporting share value of these reserves was $4

trillion in 2012 and that they serviced $127 trillion in outstanding corporate debt over the same period We

need to challenge these methodologies (Tracker 2015) In a move that signals a step towards the solutions

required the World Bank the European Investment Bank and the US Export-Import Bank have all announced

that they will not fund further coal-fired power plants except in exceptional circumstances As changes in

policy by the major coal consumers the uptake of renewables and the need to stay within the global carbon

budget begin to bite it is high-cost producers who will be squeezed first Australia is considered a high-cost

producer because of our strong industrial relations and wage laws which makes it all the more necessary that

our governments are vigilant and prepared for impending macroeconomic change (Cleary 2015)

SummaryThis is the environment in which the Australian coal industry finds itself Internationally coal is no longer

looking like a safe long-term investment within the context of the rapid changes afoot in the world The coal

industry leaders are either in denial about their industryrsquos future or are determined to squeeze as much profit

as possible until the cost gets worn by workers and their communities (Saunders 2015)

The issues of climate change demands for cleaner air and more efficient new technologies The realities of

the market are revealing coal as the sunset industry it really is This is not an industry Queenslanders can

rely on to create a stable resilient and sustainable economy It cannot be relied upon for future wealth

and future jobs We have been warned by the UN Climate Change Secretariatrsquos Executive Secretary that the

diversification and a managed transition away from coal is what we need to do and we need to heed this

warning (Australian 2015)

JOBS AFTER COAL A Just Transition for Queensland | 15

3 Assessing some of the economic opportunities in mining regions

IntroductionThe great state of Queensland is endowed with sustainable human and environmental resources that have the

potential if we choose to harness it to drive a balanced diverse and resilient economy for generations to

come Diversifying Queenslandrsquos economy to create sensible and stable prosperity beyond the boom and bust

vagaries of the mining industry must be a key objective of the Queensland Government The Newman LNP

Governmentrsquos Queensland Plan headline was lsquoforging diversity and prosperityrsquo (Government 2014) But

throughout Newmanrsquos reign as premier no action was taken Under the new Palaszczuk Labor Government

there has been some effort to support economic diversification across the state This is insufficient because as

of yet nothing has been done to adequately fund facilitate and empower the actual communities where

mining takes place The grassroots Labour Environmental Action Network an organisation within the

Australian Labour Party has called for change At the 2015 Queensland ALP State Conference they put

forward a motion that was passed calling on the state government to prepare a just transition policy before the

next conference (ALP 2015)

Grain harvest

16 | JOBS AFTER COAL A Just Transition for Queensland

Most importantly both major parties have continued their relentless support for further coal mine expansions

that inherently suffocate the process of diversification

With the coal industry forecast to be in a lsquostructural declinersquo by political leaders and bankers alike it is now

essential that the focus for economic development be on industries that can bring sustainable prosperity to

Queensland (Burrell 2014 Robins 2014) In the United Kingdom under Prime Minister Thatcher the world

witnessed the consequences of industries closing without planning and without investment to transition local

communities and industries

The following section of the report outlines how the opportunities for sustainable economic development

are already known Queensland has well-established sectors with bountiful potential in agriculture tourism

manufacturing and education It also has the opportunity to capitalise on a boom in renewable energy and

bio-industrial products to create more sustainable economic sectors These industries are ready to fill the

void that will be and is being left by coal however they lack the support needed to ensure their presence in

mining communities to provide a just transition away from coal where it is most needed

Agriculture and aquacultureCurrently the Queensland agricultural sector is worth near $147 billion and employs over 90000 people

(Queensland Government 2012) The sector has the potential to massively expand its food exports to Asia as

population and economic growth continue to surge in the dynamic economic region Through the competitive

advantage of our proximity to Asia and high-quality produce capabilities agricultural products have become

Queenslandrsquos second largest export earner and have the potential for continued growth (Heath 2014) By

increasing availability of farming technology driving productivity minimising costs and focusing on profitable

premium produce markets the Queensland Agricultural Strategy (2012) aims to double the total value of

production for all agricultural commodities by 2040 With innovative new farming approaches and ecosystem

system management strategies such increases in production are possible in a way which sustainably manages

and regenerates the land

To reduce pressure on fish stocks from home and abroad the promotion of aquaculture could be further

encouraged across the state This industry is worth $10 Million a year (Lucas DLGP 2011) At present

there are several sites located along the coast however research conducted over the last decade has

identified future sites for land based aquaculture Industry consultation aquaculture management training

programs and related issues in developing a workforce need to be considered (Plan 2012) The Queensland

Aquaculture Industry Federation sees the need for continued collaboration between government and other

stakeholders in order for this industry to reach itsrsquo potential as a strong core industry (Federation 2015)

The Department of Employment Economic Development and Innovation is leading the government drive to

JOBS AFTER COAL A Just Transition for Queensland | 17

develop the aquaculture industry This could see a future where aquaculture goes further than just meeting

domestic demand and grow to cater for high value export markets (Lucas DLGP 2011)

New opportunities in animal genetics aquaculture horticulture and bio-processing are driving agriculture

and aquaculture sector growth in new directions Both industries are about creating intergenerational

economic sustainability Choosing these industries that have unlimited potential to sustain our communities

and our ecosystems over mining is choosing long-term jobs over short-term jobs that cannot be passed on to

the next generation The bottom line is that we live in a hungry world and Queensland is well placed to be a

reliable and sustainable source of food to other nations without the agricultural potential we are endowed with

(Government 2014)

Tourism and recreational fishingDespite setbacks due to the high Australian dollar and loss of skilled workers to the mining boom the

tourism industry is still a critical part of the Queensland economy with massive future potential (Dr Tien Duc

Pham 2015) The tourism industry made a significant employment contribution providing 124000 jobs in

2010ndash11 with steady growth in international visitor nights (Deloitte Access Economics 2012) Queensland

has the potential to become a global leader in tourism and ecotourism and by doing so to create more

jobs and revenue (Government 2014) This will be possible similarly as in agriculture by promoting the

experiences available in our natural places and the quality hospitality we can provide to the growing Asian

middle class (Wilson 2013) The Chinese tourism market is seeking clean fresh and new experiences that

Queensland can cater to and is expected to be worth $74 billion by 2020 (Guterres 2014) Significant to

Queenslandrsquos potential in tourism is our ability to expand the tourism industry in the authentically Australian

rural and stunningly beautiful coastal mining communities where new economic activities are most needed

Further mining expansion in such places threatens to do to tourism what the growth in heavy industry did to

Gladstonersquos economic diversity where fishing and tourism are now non-existent

Although sustainably managed fisheries have the potential to provide continued economic prosperity to

Queensland there lies a major opportunity in net free fisheries to develop as tourism industries specifically

in coal mining regions A great recent example of this taking place is the newly established Net Free Zone

between from the Northern end of St Helens beach to Cape Hillsborough (Spelitis 2015) Along with three

other net free zones across the state the extent of the cumulative commercial opportunities for sustainable

tourism the net free zones have created has made it one of the three pillars as part of the 2020 vision for the

Queensland has the opportunity to develop an abundant and resilient agricultural industry that supports the transition to sustainable prosperity

18 | JOBS AFTER COAL A Just Transition for Queensland

Queensland Tourism Industry Council (Council 2015) The Mackay Isaac and Whitsunday (MIW) coal mining

region has excellent accessibility to a variety of fishing pursuits In addition to the new net free zone ther are

five fresh water stocked impoundment fisheries creating opportunities to promote lake beach offshore and

deepwater angling Improvement of accommodation facilities quality of jetties access roads and coordinating

fish trails with regional events could maximise visitation from recreational and tourism markets (Mackay

Tourism Tourism Queensland 2012) Charter fishing operatiors tackle stores campsites motels boat sales

boat building and maintenance all have the opportunity of benefitted from growth from the recreational fishing

tourism industry (Lucas DLGP 2012)

Higher educationOver the past decade millions of international students have visited Queensland for our quality tertiary

institutions and enjoyable lifestyle International education is Queenslandrsquos biggest service export with

nearly $2431 million being generated in 2013ndash14 alone (Australian Government 2014) The majority

of Queensland is strategically located in the latitudinal tropical zone where at a global level more than

50 of the worldrsquos population is forecasted to live by 2050 (Australian Government 2015) This makes

Queenslandrsquos universities well placed to develop the partnerships and research innovations tailored to the

challenges and opportunities of the new tropically-oriented world This will help Queensland and especially

North Queensland to attract increasing levels of international students to be part of our high-quality tropical

research institutions These students will increase spending through tourism support the creation of our own

skilled and globally connected workforce and connect Australia to business networks and opportunities across

the world In 2013ndash14 the Cairns region benefitted to the tune of $1375 million from international students

(McGuiggan 2014) With the right policies these benefits already being experienced primarily in Cairns

Townsville and Brisbane can be spread further across Queensland to make international education a strong

economic driver in transitioning mining communities

Bio-industrial productsAs the world moves away from fossil fuels the demand for cleaner more sustainable fuel sources will grow

(Emissions 2014) By using excess organic matter produced through food production to develop bio-industrial

products Queensland has the potential to export clean and sustainable fuels and bio-plastic materials to the

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Tourism is about experiences not extraction It has the potential to share Queensland beauty with the rest of the world and create sustainable local economies in the process

Queenslandrsquos greatest resource is the minds of its people We can share and co-create our innovations and learning with students from all over the world who want to make Queensland the launch pad for their careers

JOBS AFTER COAL A Just Transition for Queensland | 19

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Sorghum fields

20 | JOBS AFTER COAL A Just Transition for Queensland

Queensland is well placed to develop biofuel products from waste and oil crops such as Pongamia and algae

in addition to using the statersquos advanced sugarcane industry to convert excess cane using efficient cellulosic

processes Recent scientific developments in bio-plastics at the University of Queensland show that as a

state Queensland has the skills and ability to build a bio-industrial products industry that can contribute to a

sustainable economic future (Queensland 2015)

Renewable energyQueensland the sunshine state has enormous potential to generate electricity from the sun wind and waves

in addition to many other abundant renewable energy sources (Green 2012) Renewable energy has for a long

time been the catch cry from environmentalists as the complete solution to creating the jobs necessary to

replace the fossil fuel industry This report has been written partially to show recognition that as much as

renewable energy has the potential to create more jobs and replace fossil fuel domestic energy production it

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Gemasolar solar thermal power station Spain

JOBS AFTER COAL A Just Transition for Queensland | 21

cannot completely replace all of the coal

export industry jobs Numerous studies

show that with strong climate policies

over 7100 jobs can be created in

Queensland through renewable energy

by 2030 (Institute 2011) Thousands of

these jobs will be in regional

Queensland These should be prioritised

for regions where the mining industry

has developed rural communities in

need of new economic opportunities Far

North Queensland is especially suited to

further renewable energy investment

because of its climatic conditions and

because of the expensive transmissions

losses from having energy wired from

southern power sources (Allen 2011)

This makes it essential that government

policy ensures that the fair share of the

$35 billion in potential renewable

energy investment goes to rural mining

communities not only where it is most

needed economically but where it

makes the most business sense

(Department of Employment 2009)

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Queensland has the potential to become a smart sunshine state powered by clean and sustainable renewable energy By doing this we will be creating jobs in rural mining communities where they are needed most and building a foundation for a new sustainable economy

22 | JOBS AFTER COAL A Just Transition for Queensland

4 Community transitions Global case studies

There are communities around the worldwhich have reinvented themselves after the end of coal mining and

developed prosperous economies in doing so It has been a struggle but where there is a level of government

support inspired local leadership and the community is working together to regenerate its economy it has

been possible (Coal 2015) We are not suggesting any of these examples can be directly transferred to

Queensland communities facing the end of coal mining The object of these case studies is not to provide a

blueprint for Mackay Gladstone Rockhampton or mining towns in Central Queensland but to show the

diversity of ideas that have worked in other places that might stimulate our local communities to reinvent

themselves too

Hazelwood coal power station La Trobe Valley Vic

JOBS AFTER COAL A Just Transition for Queensland | 23

La Trobe ValleyIn the brown coal producing region of the La Trobe Valley in Victoria a grassroots transitionary force has been

underway for the past fifteen years Earthworker was set up by union and climate change activists seeking a

real alternative to coal and privately owned business models Earthworker Cooperativersquos mission is to create

jobs that respond to the lsquochallenges of climate change and the need for local job creation by facilitating the

establishment of worker-owned cooperatives hellip in sustainability-focused industriesrsquo (Earthworker 2015)

Their current focus is the establishment of a cooperative producing solar hot water systems in partnership

with an existing business called lsquoEverlast Hydro Systemsrsquo Their goal is to take production to Morwell in the

La Trobe Valley where workers are in need of an alternative to the coal industry The unique cooperative model

has made selling arrangement possible through inserting the option to buy a solar hot water system through

enterprise bargaining agreements

BanwenThe DOVE workshop in Banwen South Wales (Dove 2015) was started by agroup of women who during

the 1984ndash85 coal minersrsquo strike decided that community-based education was the most practical path to

regenerate the local economy Setting up shop in an abandoned mine office they developed a series of adult

education workshops for women Three decades later the DOVE building hosts a diverse set of small-scale

entrepreneurs including a daycare a library a community garden and a cafeacute featuring local foods

OrkneyOrkney like Central Queensland is a relatively isolated place with a scattered population Situated at the

top of Scotland two hours from the mainland by ferry Orcadians like Central Queenslanders often feel

like spectators to what goes on in the rest of their country They also feel vulnerable to central government

decisions and are often irritated by the lack of understanding of island life on the part of distant authoritiesmdash

its particular customs dialect and ways of doing things Since Norse times Orkney islanders burned peat (a

very young form of coal) as their primary fuel source but all the peat has been dug up This traditional way

of life where each farming family had its own peat bank and spent long summer days cutting and drying

peats while sharing picnics as children played is gone Another non-renewable energy source North Sea oil

discovered in the 1970s brought positive and negatives for the island It turned the tide of depopulation but

like the peat banks the oil is depleting and another lsquoend of an erarsquo is approaching Orcadians have woken up

to the fact that they canrsquot continue to hark back to the past and are confronting the issues of a future without

fossil fuels

Over the last three decades European community funding has helped Orkney to equip itself for the green

energy revolution Orkney now plays a global role in the evolution of wave and tidal technologies and

significant research and development work is creating new employment opportunities A high school in

Stromness was converted into the European Marine Energy Centre and is now a world leader providing

developers the opportunity to test full-scale prototypes in the sea The worldrsquos largest single-rotor tidal turbine

24 | JOBS AFTER COAL A Just Transition for Queensland

was the first in Scotland to be connected to the national grid from this centre Marine energy combined with

an expansion of wind turbines means that the island is now self-sufficient in electricity These renewable

energy developments have created jobs in the Orkneys in civil works and erection grid connection and

communications (Stuart 2011)

Investment in renewable energy and its associated RampD has attracted people to live work and study on the

island Islanders used to have to leave to get tertiary education but it is now possible to study for an MSc in

renewable energy at a Heriot Watt University campus in Stromness A new generation of Orcadians have grown

up to see renewable energy as the way of the future something quite ldquonormalrdquo which will provide greater

opportunities for their children to stay on the island with genuine prospects for employment in meaningful

jobs requiring a wide range of skills and qualifications This shows what a community in transition to a low

carbon future can look like

Nord-Pas De CalaisUntil 1986 the north-east region of France Nord-pas de Calais was a major coal mining area It still boasts

huge twin tailings mountains the largest in Europe which have become a tourist attraction It is known

to Australians for the war cemeteries associated with the battle of the Somme in WW1 but it has recently

undergone a remarkable transformation towards a truly sustainable economy Old coal mines at Lens have

been transformed into an art gallery displaying works from the Louvre collection in Paris Hundreds of people

are trained in energy efficiency solar energy and green architecture at a new training centre in nearby Loos-

en-Gohelle

The Chamber of Commerce invited economist and social visionary Jeremy Rifkin of the TIR Consulting

Group and his chief economist Skip Laitner to apply their model of the third industrial revolution to the

district (Riftkin 2015) Rifkinrsquos Third Industrial Revolution combines renewable energy energy efficiency

and the connectivity of the internet Buildings are energy generators and hydrogen is used as energy storage

After working with the community for some time the Master Plan was published in 2013 and envisages

that 100000 new jobs can be created by the transition plan (LLC 2013) Certainly the population has not

declined since mining days and has even slightly increased Inspired local leadership was the key in this

community plus some outside funding to help with the underpinning research

Appalachia (Kentucky)The transition process is just starting here but the community is very organised Kentuckians For The

Commonwealth has been battling the negative effects of coal mining for some decades and is now planning a

transition to ldquobuilding a better future beyond coalrdquo (Commonwealth 2015) Last year they held a conference

in Harlan Kentucky right in the middle of the Appalachian coal fields and invited guests from other US

regions in the same position as well as from Wales It is too soon to see what the outcome of their learning

process will be but they are another example of a community taking its future into its own handsmdashoptimistic

that there is a better future after coal

JOBS AFTER COAL A Just Transition for Queensland | 25

5 A just transition for coal mining communities policy recommendations

The opportunities to transition from unsustainable coal mining to prosperous communities with decent

employment will not just materialise by themselves It will need the political will and the right incentives to

ensure that communities are not left fending for themselves with unemployment increasing and families

in need of long-term welfare But not only is the political will not currently there both major political

parties continue to support the expansion of this sunset industry and by doing so are making the transition

challenges progressively more difficult (Denniss 2012) For too many years governments have uncritically

supported the coal mining sector Entire government departments have been focused on facilitating mining

with tax incentives weakening assessment and approval processes along with providing through tax payer

money established industrial infrastructure to support new projects Government policy often seeks to grow

royalties income by supporting the extraction of as much coal as possible as an escape the challenge of

finding other ways to increase state revenue New sustainable industries in coal communities will need just as

much if not more support while it gets started

We propose that communities local businesses workers unions community groups environment groups

local government and state and federal governments all need to be involved in planning a transition to

alternative forms of economic development and providing new jobs We call this a Just Transition (Anthea

Bill amp Evans1 2008 Brecher 2012) Just Transition is a framework for a fair and sustainable shift to a low

carbon economy proposed by trade unions and supported by environmental NGOs A Just Transition holds

that a shift to a lower carbon economy is vital to avoid dangerous climate change

Bimblebox Nature Refuge

26 | JOBS AFTER COAL A Just Transition for Queensland

Tough targets to cut greenhouse pollution supported by new environmental regulations and emerging carbon

markets will transform the global economy over the next decade These shifts will have major implications

for working people in energy supply industry and transport and for everyone as consumers There is a concern

that significant periods of economic restructuring in the past have often happened in a chaotic fashion

leaving ordinary workers along with their families and communities to bear the brunt of the transition to

new ways of producing wealth A just transition seeks to prevent such injustice becoming a feature of this

transition suggesting that it would not only be morally wrong and socially damaging but would undermine the

credibility of the transition itself and could slow or even halt the changes that must be made

It is through the challenges of communicating the urgency of climate change and other social and

environmental impacts that much of the debate about coal and its consequences for land water and the

climate has become unnecessarily adversarial and polarised Coal mining and power generation communities

deserve acknowledgement and appreciation for all that they have historically and currently contributed to

our country and our economy In communicating the economic shifts that are taking place and facilitating

the necessary transitions the Australian community needs to be respectful of the history and identity of coal

communities Environment groups government unions and the community need to initiate and engage in

the discussions about transitions in an open honest and compassionate manner Only by approaching the

transition in this way can the adversarial nature of the debate be broken down to make way for transformative

mutually respectful and holistic solutions

Whitsundays lsquoHave a Heart for the Reefrsquo

JOBS AFTER COAL A Just Transition for Queensland | 27

A just transition recognises that support for policies are conditional on a fair distribution of the costs and

benefits of those policies across the economy A just transition should also recognise that the creation of

opportunities for active engagement by those affected in determining the future wellbeing of themselves

and their families is essential for the long term empowerment of citizens and communities The following

recommendations have been written with the aim of emphasising such community empowerment as a priority

Recommendations

1) Establishing a unit within the State Government to support coal mining regions to transition to new economies

Specific institutions are needed to develop transition plans They need to have strong government support

and funding regional offices and representation from diverse stakeholders A dedicated unit within the

Department of Infrastructure Local Government and Planning could be established to oversee this work

They could work on the ground in the main coal mining communities to bring government expertise into

regional entities that would develop local plans that involve and empower the whole community This unit

or a connected unit would analyse existing barriers to the creation of competitive advantages for alternative

sustainable industries and would identify actions the State Government can take to support such creation

Any policy and support should come with clear conditions and timeframes These regional entities would

need generous budgets to assist local groups to develop their transition strategies to support research re-

training and the development of new business and community start-up initiatives based on the needs and

strategies of communities The key to communities becoming economically resilient is high levels of autonomy

and freedom in shaping their economic futures Research funding available to the regional entities will be

essential to the empowerment of local leadership Research funding should at least reach the OECD research

funding average and it should prioritise low carbon technologies and industry sectors with increased triple

bottom line sustainability potential

2) Support community leadership in diversifying local economies through the establishment of democratic regional entities

In each mining community a group of traditional and non-traditional community leaders willing to think

beyond lsquoBusiness as Usualrsquo to imagine a better future could be called together to work in collaboration with

and be resourced by the state government managed regional entities mentioned in recommendation one

The leaders would come from diverse backgrounds such as from local governments business associations

unions farming groups renewable energy businesses and educational institutions The objectives of these

leadership groups would be tailored to each community The objectives would in broad terms be to increase

employment in new diverse industries based on sustainable production and publicservice sector job creation

Expert facilitation alongside inclusive and democratic community engagement initiatives would be essential

to ensure the process and environment for creativity and innovation is maximised To develop such groups

it would be necessary to take stock of the existing resources skills and successful businesses on which a

new future can be built In addition an analysis of the social environmental and economic needs of the

28 | JOBS AFTER COAL A Just Transition for Queensland

community would also be beneficial These groups could then establish economic diversification projects

including value-added local production worker controlled co-operative enterprises and new community-

based enterprises that economically empower the local community Activities may also include support for

alternative industries in regard to process restructuring or subsidising the wages of workers displaced from

higher paying traditional industries

3) Support researching and communicating how the just transition can take place

Consistent research is needed on the best options to support the state and national economies to transition

This requires ongoing situational analysis of the global energy market shifts at both government levels In

addition each mining region will need assistance to research the number of jobs that are dependent on coal

the skills of those employed the level of local national and global long- and short-term risk to local mining

operations the transferability of jobs to other industries local opportunities for new enterprises and their

needs and the local educational and training needs and resources A key issue requiring research will be

around how the transitition scenarios differ depending on the level and relativity of thermal and coking coal

industries across coal mining communities The process for sourcing this information at a local and state

government level should be integrated into a policy feedback loop to support cyclical situational analysis and

policy adjustments from all levels of government This research should take place at the state level and be

encouraged at the industry and local level through grants

Mackay Central Queensland

JOBS AFTER COAL A Just Transition for Queensland | 29

4) Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

Many existing Queensland industries including those not highlighted in this report have the potential to

carry Queensland towards a new sustainable economy [sC5]mdashbut they will need support to do so Instead

of continuing to support and lower costs for the coal mining industry we need a plan to grow competitive

advantage across industries that have potential for sustainability and growth in regional mining communities

Along with industry and community organisations the State Government could organise a State Economic

Summit to assess existing industry clusters identify the potential of new and emerging industries consider

their competitiveness and key capabilities and identify barriers to increasing competitive advantage The

findings and recommendations from this Summit could be used to inform the work of the Unit established in

bullet point one above and the research outlined in bullet point two

5) Provide social protection of workers their families and incomes

If mines close suddenly workers need protection for their incomes and social services and possible relocation

even though many miners these days do not live in the communities where they mine Ideally these transition

plans would be developed early enough to ensure that new employment opportunities are in place for them

before mines actually close For many workers this is already too late but if the process begins now there will

be choices available for future retrenched coal workers who live in mining communities and regions Mining

companies could be incentivised andor penalised to give adequate notice to workers and other stakeholders

that closure may be impending and alternative economic opportunities need to be developed

6) Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

Involving the relevant unions in the planning of community transitions can enable them to move towards

becoming more proactive agents helping to plan the transition with critical networks and specific knowledge

about the needs of their members When a coal-fired power station in Washington State USA was scheduled

for closure for environmental reasons unions played a pivotal role persuading environmentalists and others

to delay the closure long enough for a Just Transition to provide different jobs for the workers This made it

possible for the coal resource to be replaced by wind and other renewable generation rather than natural

gasmdasha better environmental outcome and the unions became an active part in the phase out planning

Unions have a heavy workload defending workers rights and pay They need to be supported and financed to

play important roles in community transitions From facilitation and leadership of planning bodies career

planning and advice preferential hiring for displaced workers in the new alternative emerging industries and

leading the establishment of work controlled cooperatives unions have an essential role to play

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

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After Coal (2015) Community Regeneration West Virginia United States httpaftercoalcomengage-your-community Retrieved 10th of November 2015

Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

Arabella Advisors (2015) Measuring the Growth of the Global Fossil Fuel Divestment and Clean Energy Investment Movement httpwwwarabellaadvisorscomwp-contentuploads201509Measuring-the-Growth-of-the-Divestment-Movementpdf Retrieved 10th of November 2015

Australian Bureau of Statistics (2014) Australian National Accounts State Accounts 2012ndash13 Canberra Australia Retrieved 10th of November 2015

Australian Bureau of Statistics (2015) MackaymdashCensus Employment by IndustrymdashTime Series Australian Government Department of Employment Retrieved 10th of November 2015

Australian Government Department for Education and Training (2015) Draft National Strategy for International Education Canberra Australian Capital Territory Retrieved 10th of November 2015

Australian Government (2014) Export income to Australia from international education activity in 2013ndash14 Canberra Australia Retrieved 10th of November 2015

BHP Billiton (2013) Coal Briefing httpwwwbhpbillitoncom~mediabhpdocumentsinvestorsreports2013130529_coalbriefingpdf Retrieved 10th of November 2015

Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

Beyond Zero Emissions (2012) Laggard to Leader How Australia Can Lead the World to Zero Carbon Prosperity Melbourne University Melbourne Victoria Retrieved 10th of November 2015

Beyond Zero Emissions (2014) A Fossil Economy in a Changing World Melbourne University Melbourne Victoria httpmediabzeorgaufossileconomyFossilEconomypdf Retrieved 10th of November 2015

Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

One Million Climate Job Campaign (2015) About London United Kingdom httpclimatejobsorgzaabout Retrieved 10th of November 2015

Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 13: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

JOBS AFTER COAL A Just Transition for Queensland | 3

Table 1 Queensland Coal Mining Areas Production and Types 2009ndash10 to 2013ndash14

2009ndash2010 2010ndash2011 2011ndash2012 2012ndash2013 2013ndash2014

Mines operating 56 57 58 59 59

Saleable production Open-cut

Northern 76 450 64 167 62 632 71 268 78 953

Central 63 319 52 637 56 032 63 871 73 801

Southern 39 339 37 423 45 010 43 709 43 651

Total (mt) 179 108 154 227 163 674 178 848 196 405

Underground

Northern 7 642 8 965 9 492 13 266 11 470

Central 18 968 16 642 15 082 14 511 18 433

Total (mt) 26 611 25 606 24 574 27 776 29 903

Coking coal total 125 178 108 731 117 000 131 328 151 571

Thermal coal total 80 540 71 103 71 247 75 296 74 737

State total 205 719 179 834 188 247 206 624 226 309

Source Queensland Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13

Abbot Point

4 | JOBS AFTER COAL A Just Transition for Queensland

Revenue and economic activity generated by the coal Industry

As a nation the coal industry is Australiarsquos second

largest export earner after the iron ore industry Last

year it generated $40 billion which equal to about

12 of export revenue (Cleary 2015) The coal

industry in Queensland will pay around $2 billion

which amounts to 80 of total mining royalties

to the state Government in 2014ndash15 (Campbell

2014) Coal royalties represent around 4 of

Queensland Government revenue (Vorrath 2014)

Similar amounts come from vehicle registrations

and interests on funds saved for superannuation

in addition to long service leave entitlements as

shown in Figure 2 Such figures are not large in the

financial context of running a state government

Despite this the taxation contribution of coal is

incorrectly perceived as significant

The large revenues derived from coal exports

is due to the massive volumes the industry has

reached in recent years Total revenue to the coal

industry from its mining operations amounts to

approximately $25 billion per year that is added

to the economy This is a significant contribution

to Queenslandrsquos economy but one that needs

to be viewed relative to the size of the economy

Queenslandrsquos economy produced output worth

$290 billion in 2012ndash13 meaning the coal

sector accounted for around 7 of production

by value as shown in Figure 3 (right)

Commonwealth grants

Other staterevenue

MV registration

3

4840

54Interest

Coal royalties

Figure 2 Queensland State Government Revenue SourcesSource Queensland Treasury (2014) Queensland State Budget 2014ndash15 Paper 2

Non-mining

Other

2

91

7

Coal

Figure 3 Queensland gross state product coal other mining and non-mining sectors 2012ndash13 Source ABS (2013) Catalogue 52200 Australian National Accounts State Accounts

Coal industry jobs and their locationsThere has been much debate recently as to the exact number of people employed by the coal mining industry

Industry figures have been disputed because of the industryrsquos continual representation and communication

of construction jobs as if they were permanent In addition the industry conspicuously classifies indirect

growth in employment within the local economy as jobs that mining development is responsible for creating

Although in regional mining communities mining employment is high it is relatively small on a statewide

JOBS AFTER COAL A Just Transition for Queensland | 5

level Most recently the industryrsquos employment claims were revealed again in the Australian Land Court

case regarding coal mining development by Indian mining company Adani in the Galilee Basin to have been

exaggerated (Cox 2015) Adanirsquos mine proposal cited the figure of 10000 jobs attached to its development

application but the court was told by Adanirsquos own expert witness that the mine development would only

create 1464 actual jobs throughout the ongoing operation of the mine (Branco 2015)

According to research by The Australia Institute a majority of Queenslanders believe that the mining industry

employs ten times the amount of people it actually does (Campbell 2014) In reality the report shows that

the coal industry only employs 12 of the Queensland workforce (Vorrath 2014) What is significant is how

this employee population is regionally distributed with a majority of the employees residing in the Central

Highlands Isaac and Mackay Regional Council areas (Figure 4)

0

5000

10000

15000

20000

25000

30000

Whitsu

nday

Suns

hine C

oast

Banan

a

Rockh

ampt

on

Brisba

ne

Cent

ral H

ighlan

dsIsa

ac

Macka

yTo

tal

Em

ploy

men

t

Figure 4 Coal jobs by Local Government Area (LGA) in Queensland Top 8Source ABS 2011 Census Coal mining jobs by region in Queensland

SummaryThe coal industry plays a significant role in the Queensland economy but it is by no means irreplaceable As

the next section will show the coal industry has fallen from the lofty heights of its unprecedented profitability

and aggressive hunger for expansion It has come to a slower pace but due to the forecasted change expected

to affect the industry a new approach to planning local economies beyond coal is required

6 | JOBS AFTER COAL A Just Transition for Queensland

2 The drivers of change in the coal industry

Drivers of change The global energy market is in a period of dynamic long-term structural change that will have ongoing

repercussions for energy exporting countries such as Australia Over the last ten years the expansion in gas

the decrease in renewable energy prices the increasing of capital infrastructure costs the demand for cleaner

energy and energy efficiency have all dramatically changed the nature of the global energy economy (Ben

Caldecott 2014)

Coal has been the energy source that has made so many technological advancements through history possible

Although there has been many struggles and social costs along the way The communities workers and

companies that made this progress possible have substantially contributed to the creation of the modern world

Though if there is one thing we know from history it is that empires rise and fall The coal empire is crumbling

As it crumbles it is creating unnecessary instability stress and hardship on communities In communities like

Mackay where income has dropped by 30ndash40 as many other small mining towns people and businesses have

been caught culturally and economically unprepared for this economic shift (Bleby 2013)

Windmill and wind farm

JOBS AFTER COAL A Just Transition for Queensland | 7

2 The drivers of change in the coal industry

Drivers of change The global energy market is in a period of dynamic long-term structural change that will have ongoing

repercussions for energy exporting countries such as Australia Over the last ten years the expansion in gas

the decrease in renewable energy prices the increasing of capital infrastructure costs the demand for cleaner

energy and energy efficiency have all dramatically changed the nature of the global energy economy (Ben

Caldecott 2014)

Coal has been the energy source that has made so many technological advancements through history possible

Although there has been many struggles and social costs along the way The communities workers and

companies that made this progress possible have substantially contributed to the creation of the modern world

Though if there is one thing we know from history it is that empires rise and fall The coal empire is crumbling

As it crumbles it is creating unnecessary instability stress and hardship on communities In communities like

Mackay where income has dropped by 30ndash40 as many other small mining towns people and businesses have

been caught culturally and economically unprepared for this economic shift (Bleby 2013)

It is clear that coal thermal coal especially is no longer good for humanity despite our former Prime Minister

Tony Abbottrsquos fervent belief that it is (Online 2014) WA Premier Colin Barnett heralded last year in his

declaration that coal is in lsquostructural declinersquo (Burrell 2014) He was not wrong In the past 5 years alone the

Dow Jones Total Coal Market index has fallen by 76 (Baker 2014)

The reality is that the world is rapidly shifting away from fossil fuels including countries that are key

importers of Australiarsquos coal and gas China India Japan and South Korea import over 80 of Australiarsquos

export market for coal and gas The reality is that these countries have recently either announced policies to

shift away from these fuels andor initiatives to drastically enhance renewable energy and energy efficiency

(ldquoPolitics of Climate Change in Asiardquo 2015)

The following section of the report analyses the risk of Australia not being prepared economically for changes

that are already taking place As a country and a state our governing political parties continue to pursue

a strategy that assumes our short and long term economic prosperity is dependent on mining Few of our

political leaders are attempting to communicate an economic vision free from the inevitable boom-bust cycles

created by extracting emissions-intensive resources It is also a strategy that assumes energy production and

distribution will continue on as a very centralised process rather than following the great trend of networked

and decentralised distribution that is shaping the 21st century (Riftkin 2015) This strategy is short-sighted

given recent announcements by China and India to phase out fossil fuels and move rapidly towards cleaner

and more distributed energy sources (Rohr 2014)

The international coal priceThe majority of Queenslandrsquos export coal mining industry is dependent on demand for steel making from

the worldrsquos coking or metallurgical coal market This is a market that has been severely impacted by a

combination of actions in China the biggest steel manufacturer in the world Primarily Chinarsquos housing

boom has been slowing down over recent years this in turn has massively reduced the need for steel Most

importantly China is also running a ldquowar on pollutionrdquo that is having direct short- and long-term impacts on

the viability of the coal industry as a whole This has resulted in a campaign of state enforced closures of coal

plants and steel mills especially near the countryrsquos big industrial coastal cities (Ng 2015)

Prices on the international coking coal stock market have plummeted from the all time high of US$330

tonne in late 2011 to a sobering low of US$109tonne in the first quarter of 2015 The outlook still remains

gloomy for the coal sector

With the continued slowdown in the global and Chinese economies the price of iron ore has also collapsed

Prices have dropped by one third in the first quarter of 2015 alone causing at least one Australian mine to

close operations and many others to cancel plans for expansions (Sandersen 2015) Iron ore is closely linked

to the sales of coking coal which is used most commonly to melt iron ore into steel

8 | JOBS AFTER COAL A Just Transition for Queensland

20

14

US

$t

0

100

200

300

400

2005 2007high quality high coking semi-soft coking

2009 2011 2013 2015

Figure 5 Coking Coal Prices 2005ndash2015 (worldcoalcom)

A similar price drop has hit thermal coal used in coal-fired power stations Thermal coal is mined in many

Surat Basin mines and is also found in some Bowen Basin mines where it is an addition to the high quality

coking coal found in the area Significantly the proposed mining development in the Galilee Basin is only

for thermal coal which at a time when coal-fired power stations are being replaced by cleaner options is

alarming (Pacific 2012) Thermal coal was priced at US$120tonne in late 2011 It had plunged to US$73

per tonne by February 2015 and has remained below US$60tonne since May 2015 Chinarsquos new rules of

cutting ash and sulphur content in seaborne coal imports along with increasing tariffs on coal imports has

meant that even Shenhua Chinarsquos biggest coal company cut coal imports in early 2015 (Jenda 2015)

Overall Chinese consumption dipped by 16 in 2014 despite their economic growth of 73

The decade of relentless and largely unplanned investment in Queensland coal mining in times of high prices

led to a massive oversupply against a background of decreasing demand The state and federal governments

failed to slow the industry down so that it did not overshoot an economically sustainable size This has made

the challenge of transitioning out of the industry even harder along with magnifying the pain now faced by

many mining towns (Neubauer 2015) All of this leaves a million-dollar question Is the downshift in [coal]

demand terminal According to Richard Gibbs from the Macquarie Bank it certainly is (Neubauer 2015)

The global coal market is also experiencing competition from renewables and shale gas slow growth and

government policies which are in part driven by the threat of climate change

The growing competition from renewable energy sources has been increasing its impact on the coal industry

by slowly but steadily eroding profits of domestic coal power stationsmdashand thus demand for coalmdashacross the

country (Hewson 2015) In Queensland the state government should be applauded for its 50 renewable

energy target by 2030 which will further add strain to struggling coal power generators (Parkinson 2015)

A more than 50 decline in coal prices has seen most listed coal companies globally to lose 80ndash90 of their

equity market value in the last four years (Buckley 2014) In 2014 the world added more energy generation

capacity from wind power than from coal Overall Europe and America have already cut coal-fired generation

JOBS AFTER COAL A Just Transition for Queensland | 9

capacity by over a fifth in a decade The sun will undoubtedly rise even further for renewable energy in 2015

but for coal there remains a lot further to fallrdquo said a report by the Institute for Energy Economics and

Financial Analysis in January 2015 (Buckley 2015a)

This statement is borne out by the facts

bull In 2014 new global wind installations grew 40 to 46GW led by China and America (Buckley

2015b)

bull In 2014 the US solar installation sector created almost 50 more jobs than the oil and gas pipeline

construction industry (Foundation 2015)

bull From 2000 to 2011 global annual growth in the yearly global installation rate of photovoltaic solar

panels was 40 In 2011 the total amount of global PV capacity installed was 27GW an astonishing

60 growth on 2010 levels (Green 2012)

bull Unsubsidised renewable energy is now cheaper than new coal-fired power in Australia (Paton 2013)

Solar installation

10 | JOBS AFTER COAL A Just Transition for Queensland

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

Coal power station

JOBS AFTER COAL A Just Transition for Queensland | 11

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

The outlook for coal pricesWhile some consider the outlook for coal prices as cyclical in nature and that a turnaround will increases

prices for coal other analysts believe this downward trend based on policies health impacts and concern

about global warming is here to stay

Financial reports from the major mining companies in Australia paint a grim outlook for global metallurgical

coal prices China was once the great hope for coking coal exporters but BHP Billitonrsquos metallurgical coal

market outlook (May 2013) indicated a flattening demand into the future (Billiton 2013 Rohr 2014)

BHP Billiton has warned that the increased usage of scrap metal in furnaces would result in lower growth in

demand for pig iron while greater production from electric arc furnacesmdashwhich use little or no coking coalmdash

are expected to ldquocontribute a significant share of total Chinese steel production by 2030rdquo Although coking

coal will likely remain necessary for steel production for some time as renewable energy sources grow the

efficiency and lower emissions intensity of electric arc furnaces will help them to outcompete coking coal in

the not too distant future Some experts even predict another technology called lsquodirect reduced ironrsquo that uses

gas to make steel could make coking coal redundant within a decade (Macleod 2013)

It is not just China BHP Billiton also cautions that the Indian steel outlook is less certain as steel production

growth has been slower than expected Prices for commodities from iron ore to coal are sinking as Chinarsquos

leadership tries to steer the economy away from debt-fueled property investment and smokestack industries

embracing services and domestic-led consumption At the same time President Xi Jinping is stepping up efforts

to combat pollution The provincial government of Beijing and a number of other major cities have made plans to

ban coal use by 2020 further putting the squeeze on all types of heavy industry (Coulter 2015)

However the outlook is not all dismal for coal everywhere In India demand is expected to continue to rise

without peaking until the 2030s Indiarsquos government predicts a 19 rise in coal imports this year which

may offer very short-term opportunities for Australian miners The opportunities are short term because these

import increases are something the Indian government has indicated it does not want continued into the

future Indiarsquos plan is to ramp up renewable energy technology as well as develop their untapped coal fields

to support a gradual phase out of thermal-coal imports within the next 2ndash3 years (Baker 2014) Regardless

the Indian mining giant Adani still hopes it can get coal from its proposed Carmichael mine in the Galilee

Basin and export it to India for the duration of its 60 year life span After a number of international banks

have ruled out funding for the Carmichael coal mine Adani has been looking for cash handouts from the

Australian Government to fund its shaky proposal However sanity has prevailed and these have been ruled

out by the new Prime Minister (Edis 2015) It is clear the Indian governmentrsquos plan for Indiarsquos future coal

supply sources does not involve Australian coal

12 | JOBS AFTER COAL A Just Transition for Queensland

This is the marketplace in which Australiarsquos exported coal competes and this is the marketplace that holds the

livelihoods of workers and communities in its hands The current state and future outlook of the coal industry

suggests that it would be risky not to scale down the thermal coal industry and at least restrict any new mine

expansions in the coking coal sector There are those who remain positive about the industryrsquos future but

recent events in the coal industry and uncertainty over medium and long term suggest that there are better

industries to back Behind these diverse risks threatening the coal industry is the inescapable scientific

fact that we cannot afford to burn any more coal from new coal mines if we want to decrease the risk of our

already fifty fifty chance of avoiding the worst impacts of global warming (IPCC 2013) If we wanted to try

and remove the total risk of runaway climate change we could not even afford to burn the coal that are sitting

in trucks on trains at port yards and in ships Not even the coal travelling on conveyors into power station

furnaces about to be burnt right this very moment

The carbon bubbleFrom the South Sea Bubble as well as the housing and dotcom bubbles of the last decade periodic over-

investment has been made into sectors deemed too important to fail The rush and hubris of investors seeking

incomparable profits to finance such industries has led to speculative bubbles of over-estimated value that

eventually burst In the economic fallout that results working people carry the burden while the speculators

and profiteers generally are not held accountable Another speculative bubble has formed and it dwarfs the

size of all of the bubbles that have come before it It is called the Carbon Bubble (Tracker 2015)

One of the few things world leaders agreed upon at the Copenhagen climate talks was that the Earth needs to

stay below 2degC warming to minimize the risk of runaway climate change

bull If we are to avoid going over 2degC we can emit only 565 more gigatonnes of carbon dioxide (IPCC 2007)

bull Burning the fossil fuel that corporations now have in their reserves would result in emitting 2795

gigatonnes of carbon dioxidemdashfive times the safe amount (Leaton 2013)

The Intergovernmental Panel on Climate Change has now produced its own carbon budget They have calculated

that if we continue pumping carbon into the atmosphere at todayrsquos rate this budget will be exhausted within

15ndash25 years (IPCC 2013) This means there will be growing political pressure on the fossil fuel industry to

keep most of its reserves in the ground That pressure has already begun around the world Citizens are pressing

their superannuation funds councils banks universities and other institutions to divest from fossil fuels with

growing success The year 2013 saw several major financial institutions recognise the financial and ethical

implications of continuing to finance fossil fuels with Norwegian Storebrand Rabobank and the World Bank

among those who made major announcements on divestment or cutting loans In 2014 major institutions

including Stanford University the Australian National University and Oxford University have divested their fossil

fuel funds (Advisors 2015) So far in 2015 local councils in Australia such as Moreland Newcastle Byron Bay

Melbourne and many more have also divested (Ryan 2015) Divestment is now going mainstream and will have

increasing impacts on fossil fuel company shares into the future

JOBS AFTER COAL A Just Transition for Queensland | 13

As a result of the momentum of the global divestment movement international stock exchanges are creating

new indexes to exclude fossil fuels in preparation of the impending seismic shift in global finances In late

April 2014 the worldrsquos largest fund manager Blackrock joined with the FTSE Group in London to create

a new index The ex-Fossil Fuels Index Series is an innovative set of benchmark indices that excludes

companies directly engaged in extracting so-called ldquostranded assetsrdquo in the hydrocarbons industry ldquoThis

is one of the fastest-moving debates I think Irsquove seen in my 30 years in marketsrdquo FTSE managing director

Kevin Bourne told the Financial Times (Clarke 2014) The Bank of England is now investigating its exposure

to risk from its fossil fuel investments To top that off the worldrsquos biggest sovereign wealth investment fund in

Norway has recently dumped coal investments (Carrington 2015) The largest contribution to climate change

from the fossil fuels in company inventories at present is from coal Because it has the largest climate impact

per unit of useful energy it is being targeted for early phase out

The book value of fossil fuel companies is determined not only by their current infrastructure and deposits

undergoing extraction but also by the size of their legally claimed reserves Because the book value of so

many companies has greatly exceeded their realisable value as emissions restrictions come into place a

speculative bubble has formed Unfortunately bubbles usually burst in the end leaving behind stranded

assets and stranded capitalmdashand leaving workers in the lurch The only alternative is a mature and planned

phase out of the industry that slowly devalues and deregisters fossil fuel reserves at a pace that does not lead

to financial crisis A planned phase out that gives time for just employment transitions for fossil fuel

communities

500

1000886

565

1500

2000

2500

3000

already burnt

remaining

2000ndash2050

2011ndash2050

Coal 2˚Global carbon

budget

Oil

Gas

GtC

O2

Global fossil fuel reserves

Figure 6 Carbontracker 2012 report The Carbon Bubble

14 | JOBS AFTER COAL A Just Transition for Queensland

In 2013 the report Unburnable Carbon highlighted that ldquoCompany valuation and credit ratings

methodologies do not typically inform investors about their exposure to these stranded assetsrdquo (Leaton

2013) This is very troubling when considering that the supporting share value of these reserves was $4

trillion in 2012 and that they serviced $127 trillion in outstanding corporate debt over the same period We

need to challenge these methodologies (Tracker 2015) In a move that signals a step towards the solutions

required the World Bank the European Investment Bank and the US Export-Import Bank have all announced

that they will not fund further coal-fired power plants except in exceptional circumstances As changes in

policy by the major coal consumers the uptake of renewables and the need to stay within the global carbon

budget begin to bite it is high-cost producers who will be squeezed first Australia is considered a high-cost

producer because of our strong industrial relations and wage laws which makes it all the more necessary that

our governments are vigilant and prepared for impending macroeconomic change (Cleary 2015)

SummaryThis is the environment in which the Australian coal industry finds itself Internationally coal is no longer

looking like a safe long-term investment within the context of the rapid changes afoot in the world The coal

industry leaders are either in denial about their industryrsquos future or are determined to squeeze as much profit

as possible until the cost gets worn by workers and their communities (Saunders 2015)

The issues of climate change demands for cleaner air and more efficient new technologies The realities of

the market are revealing coal as the sunset industry it really is This is not an industry Queenslanders can

rely on to create a stable resilient and sustainable economy It cannot be relied upon for future wealth

and future jobs We have been warned by the UN Climate Change Secretariatrsquos Executive Secretary that the

diversification and a managed transition away from coal is what we need to do and we need to heed this

warning (Australian 2015)

JOBS AFTER COAL A Just Transition for Queensland | 15

3 Assessing some of the economic opportunities in mining regions

IntroductionThe great state of Queensland is endowed with sustainable human and environmental resources that have the

potential if we choose to harness it to drive a balanced diverse and resilient economy for generations to

come Diversifying Queenslandrsquos economy to create sensible and stable prosperity beyond the boom and bust

vagaries of the mining industry must be a key objective of the Queensland Government The Newman LNP

Governmentrsquos Queensland Plan headline was lsquoforging diversity and prosperityrsquo (Government 2014) But

throughout Newmanrsquos reign as premier no action was taken Under the new Palaszczuk Labor Government

there has been some effort to support economic diversification across the state This is insufficient because as

of yet nothing has been done to adequately fund facilitate and empower the actual communities where

mining takes place The grassroots Labour Environmental Action Network an organisation within the

Australian Labour Party has called for change At the 2015 Queensland ALP State Conference they put

forward a motion that was passed calling on the state government to prepare a just transition policy before the

next conference (ALP 2015)

Grain harvest

16 | JOBS AFTER COAL A Just Transition for Queensland

Most importantly both major parties have continued their relentless support for further coal mine expansions

that inherently suffocate the process of diversification

With the coal industry forecast to be in a lsquostructural declinersquo by political leaders and bankers alike it is now

essential that the focus for economic development be on industries that can bring sustainable prosperity to

Queensland (Burrell 2014 Robins 2014) In the United Kingdom under Prime Minister Thatcher the world

witnessed the consequences of industries closing without planning and without investment to transition local

communities and industries

The following section of the report outlines how the opportunities for sustainable economic development

are already known Queensland has well-established sectors with bountiful potential in agriculture tourism

manufacturing and education It also has the opportunity to capitalise on a boom in renewable energy and

bio-industrial products to create more sustainable economic sectors These industries are ready to fill the

void that will be and is being left by coal however they lack the support needed to ensure their presence in

mining communities to provide a just transition away from coal where it is most needed

Agriculture and aquacultureCurrently the Queensland agricultural sector is worth near $147 billion and employs over 90000 people

(Queensland Government 2012) The sector has the potential to massively expand its food exports to Asia as

population and economic growth continue to surge in the dynamic economic region Through the competitive

advantage of our proximity to Asia and high-quality produce capabilities agricultural products have become

Queenslandrsquos second largest export earner and have the potential for continued growth (Heath 2014) By

increasing availability of farming technology driving productivity minimising costs and focusing on profitable

premium produce markets the Queensland Agricultural Strategy (2012) aims to double the total value of

production for all agricultural commodities by 2040 With innovative new farming approaches and ecosystem

system management strategies such increases in production are possible in a way which sustainably manages

and regenerates the land

To reduce pressure on fish stocks from home and abroad the promotion of aquaculture could be further

encouraged across the state This industry is worth $10 Million a year (Lucas DLGP 2011) At present

there are several sites located along the coast however research conducted over the last decade has

identified future sites for land based aquaculture Industry consultation aquaculture management training

programs and related issues in developing a workforce need to be considered (Plan 2012) The Queensland

Aquaculture Industry Federation sees the need for continued collaboration between government and other

stakeholders in order for this industry to reach itsrsquo potential as a strong core industry (Federation 2015)

The Department of Employment Economic Development and Innovation is leading the government drive to

JOBS AFTER COAL A Just Transition for Queensland | 17

develop the aquaculture industry This could see a future where aquaculture goes further than just meeting

domestic demand and grow to cater for high value export markets (Lucas DLGP 2011)

New opportunities in animal genetics aquaculture horticulture and bio-processing are driving agriculture

and aquaculture sector growth in new directions Both industries are about creating intergenerational

economic sustainability Choosing these industries that have unlimited potential to sustain our communities

and our ecosystems over mining is choosing long-term jobs over short-term jobs that cannot be passed on to

the next generation The bottom line is that we live in a hungry world and Queensland is well placed to be a

reliable and sustainable source of food to other nations without the agricultural potential we are endowed with

(Government 2014)

Tourism and recreational fishingDespite setbacks due to the high Australian dollar and loss of skilled workers to the mining boom the

tourism industry is still a critical part of the Queensland economy with massive future potential (Dr Tien Duc

Pham 2015) The tourism industry made a significant employment contribution providing 124000 jobs in

2010ndash11 with steady growth in international visitor nights (Deloitte Access Economics 2012) Queensland

has the potential to become a global leader in tourism and ecotourism and by doing so to create more

jobs and revenue (Government 2014) This will be possible similarly as in agriculture by promoting the

experiences available in our natural places and the quality hospitality we can provide to the growing Asian

middle class (Wilson 2013) The Chinese tourism market is seeking clean fresh and new experiences that

Queensland can cater to and is expected to be worth $74 billion by 2020 (Guterres 2014) Significant to

Queenslandrsquos potential in tourism is our ability to expand the tourism industry in the authentically Australian

rural and stunningly beautiful coastal mining communities where new economic activities are most needed

Further mining expansion in such places threatens to do to tourism what the growth in heavy industry did to

Gladstonersquos economic diversity where fishing and tourism are now non-existent

Although sustainably managed fisheries have the potential to provide continued economic prosperity to

Queensland there lies a major opportunity in net free fisheries to develop as tourism industries specifically

in coal mining regions A great recent example of this taking place is the newly established Net Free Zone

between from the Northern end of St Helens beach to Cape Hillsborough (Spelitis 2015) Along with three

other net free zones across the state the extent of the cumulative commercial opportunities for sustainable

tourism the net free zones have created has made it one of the three pillars as part of the 2020 vision for the

Queensland has the opportunity to develop an abundant and resilient agricultural industry that supports the transition to sustainable prosperity

18 | JOBS AFTER COAL A Just Transition for Queensland

Queensland Tourism Industry Council (Council 2015) The Mackay Isaac and Whitsunday (MIW) coal mining

region has excellent accessibility to a variety of fishing pursuits In addition to the new net free zone ther are

five fresh water stocked impoundment fisheries creating opportunities to promote lake beach offshore and

deepwater angling Improvement of accommodation facilities quality of jetties access roads and coordinating

fish trails with regional events could maximise visitation from recreational and tourism markets (Mackay

Tourism Tourism Queensland 2012) Charter fishing operatiors tackle stores campsites motels boat sales

boat building and maintenance all have the opportunity of benefitted from growth from the recreational fishing

tourism industry (Lucas DLGP 2012)

Higher educationOver the past decade millions of international students have visited Queensland for our quality tertiary

institutions and enjoyable lifestyle International education is Queenslandrsquos biggest service export with

nearly $2431 million being generated in 2013ndash14 alone (Australian Government 2014) The majority

of Queensland is strategically located in the latitudinal tropical zone where at a global level more than

50 of the worldrsquos population is forecasted to live by 2050 (Australian Government 2015) This makes

Queenslandrsquos universities well placed to develop the partnerships and research innovations tailored to the

challenges and opportunities of the new tropically-oriented world This will help Queensland and especially

North Queensland to attract increasing levels of international students to be part of our high-quality tropical

research institutions These students will increase spending through tourism support the creation of our own

skilled and globally connected workforce and connect Australia to business networks and opportunities across

the world In 2013ndash14 the Cairns region benefitted to the tune of $1375 million from international students

(McGuiggan 2014) With the right policies these benefits already being experienced primarily in Cairns

Townsville and Brisbane can be spread further across Queensland to make international education a strong

economic driver in transitioning mining communities

Bio-industrial productsAs the world moves away from fossil fuels the demand for cleaner more sustainable fuel sources will grow

(Emissions 2014) By using excess organic matter produced through food production to develop bio-industrial

products Queensland has the potential to export clean and sustainable fuels and bio-plastic materials to the

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Tourism is about experiences not extraction It has the potential to share Queensland beauty with the rest of the world and create sustainable local economies in the process

Queenslandrsquos greatest resource is the minds of its people We can share and co-create our innovations and learning with students from all over the world who want to make Queensland the launch pad for their careers

JOBS AFTER COAL A Just Transition for Queensland | 19

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Sorghum fields

20 | JOBS AFTER COAL A Just Transition for Queensland

Queensland is well placed to develop biofuel products from waste and oil crops such as Pongamia and algae

in addition to using the statersquos advanced sugarcane industry to convert excess cane using efficient cellulosic

processes Recent scientific developments in bio-plastics at the University of Queensland show that as a

state Queensland has the skills and ability to build a bio-industrial products industry that can contribute to a

sustainable economic future (Queensland 2015)

Renewable energyQueensland the sunshine state has enormous potential to generate electricity from the sun wind and waves

in addition to many other abundant renewable energy sources (Green 2012) Renewable energy has for a long

time been the catch cry from environmentalists as the complete solution to creating the jobs necessary to

replace the fossil fuel industry This report has been written partially to show recognition that as much as

renewable energy has the potential to create more jobs and replace fossil fuel domestic energy production it

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Gemasolar solar thermal power station Spain

JOBS AFTER COAL A Just Transition for Queensland | 21

cannot completely replace all of the coal

export industry jobs Numerous studies

show that with strong climate policies

over 7100 jobs can be created in

Queensland through renewable energy

by 2030 (Institute 2011) Thousands of

these jobs will be in regional

Queensland These should be prioritised

for regions where the mining industry

has developed rural communities in

need of new economic opportunities Far

North Queensland is especially suited to

further renewable energy investment

because of its climatic conditions and

because of the expensive transmissions

losses from having energy wired from

southern power sources (Allen 2011)

This makes it essential that government

policy ensures that the fair share of the

$35 billion in potential renewable

energy investment goes to rural mining

communities not only where it is most

needed economically but where it

makes the most business sense

(Department of Employment 2009)

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Queensland has the potential to become a smart sunshine state powered by clean and sustainable renewable energy By doing this we will be creating jobs in rural mining communities where they are needed most and building a foundation for a new sustainable economy

22 | JOBS AFTER COAL A Just Transition for Queensland

4 Community transitions Global case studies

There are communities around the worldwhich have reinvented themselves after the end of coal mining and

developed prosperous economies in doing so It has been a struggle but where there is a level of government

support inspired local leadership and the community is working together to regenerate its economy it has

been possible (Coal 2015) We are not suggesting any of these examples can be directly transferred to

Queensland communities facing the end of coal mining The object of these case studies is not to provide a

blueprint for Mackay Gladstone Rockhampton or mining towns in Central Queensland but to show the

diversity of ideas that have worked in other places that might stimulate our local communities to reinvent

themselves too

Hazelwood coal power station La Trobe Valley Vic

JOBS AFTER COAL A Just Transition for Queensland | 23

La Trobe ValleyIn the brown coal producing region of the La Trobe Valley in Victoria a grassroots transitionary force has been

underway for the past fifteen years Earthworker was set up by union and climate change activists seeking a

real alternative to coal and privately owned business models Earthworker Cooperativersquos mission is to create

jobs that respond to the lsquochallenges of climate change and the need for local job creation by facilitating the

establishment of worker-owned cooperatives hellip in sustainability-focused industriesrsquo (Earthworker 2015)

Their current focus is the establishment of a cooperative producing solar hot water systems in partnership

with an existing business called lsquoEverlast Hydro Systemsrsquo Their goal is to take production to Morwell in the

La Trobe Valley where workers are in need of an alternative to the coal industry The unique cooperative model

has made selling arrangement possible through inserting the option to buy a solar hot water system through

enterprise bargaining agreements

BanwenThe DOVE workshop in Banwen South Wales (Dove 2015) was started by agroup of women who during

the 1984ndash85 coal minersrsquo strike decided that community-based education was the most practical path to

regenerate the local economy Setting up shop in an abandoned mine office they developed a series of adult

education workshops for women Three decades later the DOVE building hosts a diverse set of small-scale

entrepreneurs including a daycare a library a community garden and a cafeacute featuring local foods

OrkneyOrkney like Central Queensland is a relatively isolated place with a scattered population Situated at the

top of Scotland two hours from the mainland by ferry Orcadians like Central Queenslanders often feel

like spectators to what goes on in the rest of their country They also feel vulnerable to central government

decisions and are often irritated by the lack of understanding of island life on the part of distant authoritiesmdash

its particular customs dialect and ways of doing things Since Norse times Orkney islanders burned peat (a

very young form of coal) as their primary fuel source but all the peat has been dug up This traditional way

of life where each farming family had its own peat bank and spent long summer days cutting and drying

peats while sharing picnics as children played is gone Another non-renewable energy source North Sea oil

discovered in the 1970s brought positive and negatives for the island It turned the tide of depopulation but

like the peat banks the oil is depleting and another lsquoend of an erarsquo is approaching Orcadians have woken up

to the fact that they canrsquot continue to hark back to the past and are confronting the issues of a future without

fossil fuels

Over the last three decades European community funding has helped Orkney to equip itself for the green

energy revolution Orkney now plays a global role in the evolution of wave and tidal technologies and

significant research and development work is creating new employment opportunities A high school in

Stromness was converted into the European Marine Energy Centre and is now a world leader providing

developers the opportunity to test full-scale prototypes in the sea The worldrsquos largest single-rotor tidal turbine

24 | JOBS AFTER COAL A Just Transition for Queensland

was the first in Scotland to be connected to the national grid from this centre Marine energy combined with

an expansion of wind turbines means that the island is now self-sufficient in electricity These renewable

energy developments have created jobs in the Orkneys in civil works and erection grid connection and

communications (Stuart 2011)

Investment in renewable energy and its associated RampD has attracted people to live work and study on the

island Islanders used to have to leave to get tertiary education but it is now possible to study for an MSc in

renewable energy at a Heriot Watt University campus in Stromness A new generation of Orcadians have grown

up to see renewable energy as the way of the future something quite ldquonormalrdquo which will provide greater

opportunities for their children to stay on the island with genuine prospects for employment in meaningful

jobs requiring a wide range of skills and qualifications This shows what a community in transition to a low

carbon future can look like

Nord-Pas De CalaisUntil 1986 the north-east region of France Nord-pas de Calais was a major coal mining area It still boasts

huge twin tailings mountains the largest in Europe which have become a tourist attraction It is known

to Australians for the war cemeteries associated with the battle of the Somme in WW1 but it has recently

undergone a remarkable transformation towards a truly sustainable economy Old coal mines at Lens have

been transformed into an art gallery displaying works from the Louvre collection in Paris Hundreds of people

are trained in energy efficiency solar energy and green architecture at a new training centre in nearby Loos-

en-Gohelle

The Chamber of Commerce invited economist and social visionary Jeremy Rifkin of the TIR Consulting

Group and his chief economist Skip Laitner to apply their model of the third industrial revolution to the

district (Riftkin 2015) Rifkinrsquos Third Industrial Revolution combines renewable energy energy efficiency

and the connectivity of the internet Buildings are energy generators and hydrogen is used as energy storage

After working with the community for some time the Master Plan was published in 2013 and envisages

that 100000 new jobs can be created by the transition plan (LLC 2013) Certainly the population has not

declined since mining days and has even slightly increased Inspired local leadership was the key in this

community plus some outside funding to help with the underpinning research

Appalachia (Kentucky)The transition process is just starting here but the community is very organised Kentuckians For The

Commonwealth has been battling the negative effects of coal mining for some decades and is now planning a

transition to ldquobuilding a better future beyond coalrdquo (Commonwealth 2015) Last year they held a conference

in Harlan Kentucky right in the middle of the Appalachian coal fields and invited guests from other US

regions in the same position as well as from Wales It is too soon to see what the outcome of their learning

process will be but they are another example of a community taking its future into its own handsmdashoptimistic

that there is a better future after coal

JOBS AFTER COAL A Just Transition for Queensland | 25

5 A just transition for coal mining communities policy recommendations

The opportunities to transition from unsustainable coal mining to prosperous communities with decent

employment will not just materialise by themselves It will need the political will and the right incentives to

ensure that communities are not left fending for themselves with unemployment increasing and families

in need of long-term welfare But not only is the political will not currently there both major political

parties continue to support the expansion of this sunset industry and by doing so are making the transition

challenges progressively more difficult (Denniss 2012) For too many years governments have uncritically

supported the coal mining sector Entire government departments have been focused on facilitating mining

with tax incentives weakening assessment and approval processes along with providing through tax payer

money established industrial infrastructure to support new projects Government policy often seeks to grow

royalties income by supporting the extraction of as much coal as possible as an escape the challenge of

finding other ways to increase state revenue New sustainable industries in coal communities will need just as

much if not more support while it gets started

We propose that communities local businesses workers unions community groups environment groups

local government and state and federal governments all need to be involved in planning a transition to

alternative forms of economic development and providing new jobs We call this a Just Transition (Anthea

Bill amp Evans1 2008 Brecher 2012) Just Transition is a framework for a fair and sustainable shift to a low

carbon economy proposed by trade unions and supported by environmental NGOs A Just Transition holds

that a shift to a lower carbon economy is vital to avoid dangerous climate change

Bimblebox Nature Refuge

26 | JOBS AFTER COAL A Just Transition for Queensland

Tough targets to cut greenhouse pollution supported by new environmental regulations and emerging carbon

markets will transform the global economy over the next decade These shifts will have major implications

for working people in energy supply industry and transport and for everyone as consumers There is a concern

that significant periods of economic restructuring in the past have often happened in a chaotic fashion

leaving ordinary workers along with their families and communities to bear the brunt of the transition to

new ways of producing wealth A just transition seeks to prevent such injustice becoming a feature of this

transition suggesting that it would not only be morally wrong and socially damaging but would undermine the

credibility of the transition itself and could slow or even halt the changes that must be made

It is through the challenges of communicating the urgency of climate change and other social and

environmental impacts that much of the debate about coal and its consequences for land water and the

climate has become unnecessarily adversarial and polarised Coal mining and power generation communities

deserve acknowledgement and appreciation for all that they have historically and currently contributed to

our country and our economy In communicating the economic shifts that are taking place and facilitating

the necessary transitions the Australian community needs to be respectful of the history and identity of coal

communities Environment groups government unions and the community need to initiate and engage in

the discussions about transitions in an open honest and compassionate manner Only by approaching the

transition in this way can the adversarial nature of the debate be broken down to make way for transformative

mutually respectful and holistic solutions

Whitsundays lsquoHave a Heart for the Reefrsquo

JOBS AFTER COAL A Just Transition for Queensland | 27

A just transition recognises that support for policies are conditional on a fair distribution of the costs and

benefits of those policies across the economy A just transition should also recognise that the creation of

opportunities for active engagement by those affected in determining the future wellbeing of themselves

and their families is essential for the long term empowerment of citizens and communities The following

recommendations have been written with the aim of emphasising such community empowerment as a priority

Recommendations

1) Establishing a unit within the State Government to support coal mining regions to transition to new economies

Specific institutions are needed to develop transition plans They need to have strong government support

and funding regional offices and representation from diverse stakeholders A dedicated unit within the

Department of Infrastructure Local Government and Planning could be established to oversee this work

They could work on the ground in the main coal mining communities to bring government expertise into

regional entities that would develop local plans that involve and empower the whole community This unit

or a connected unit would analyse existing barriers to the creation of competitive advantages for alternative

sustainable industries and would identify actions the State Government can take to support such creation

Any policy and support should come with clear conditions and timeframes These regional entities would

need generous budgets to assist local groups to develop their transition strategies to support research re-

training and the development of new business and community start-up initiatives based on the needs and

strategies of communities The key to communities becoming economically resilient is high levels of autonomy

and freedom in shaping their economic futures Research funding available to the regional entities will be

essential to the empowerment of local leadership Research funding should at least reach the OECD research

funding average and it should prioritise low carbon technologies and industry sectors with increased triple

bottom line sustainability potential

2) Support community leadership in diversifying local economies through the establishment of democratic regional entities

In each mining community a group of traditional and non-traditional community leaders willing to think

beyond lsquoBusiness as Usualrsquo to imagine a better future could be called together to work in collaboration with

and be resourced by the state government managed regional entities mentioned in recommendation one

The leaders would come from diverse backgrounds such as from local governments business associations

unions farming groups renewable energy businesses and educational institutions The objectives of these

leadership groups would be tailored to each community The objectives would in broad terms be to increase

employment in new diverse industries based on sustainable production and publicservice sector job creation

Expert facilitation alongside inclusive and democratic community engagement initiatives would be essential

to ensure the process and environment for creativity and innovation is maximised To develop such groups

it would be necessary to take stock of the existing resources skills and successful businesses on which a

new future can be built In addition an analysis of the social environmental and economic needs of the

28 | JOBS AFTER COAL A Just Transition for Queensland

community would also be beneficial These groups could then establish economic diversification projects

including value-added local production worker controlled co-operative enterprises and new community-

based enterprises that economically empower the local community Activities may also include support for

alternative industries in regard to process restructuring or subsidising the wages of workers displaced from

higher paying traditional industries

3) Support researching and communicating how the just transition can take place

Consistent research is needed on the best options to support the state and national economies to transition

This requires ongoing situational analysis of the global energy market shifts at both government levels In

addition each mining region will need assistance to research the number of jobs that are dependent on coal

the skills of those employed the level of local national and global long- and short-term risk to local mining

operations the transferability of jobs to other industries local opportunities for new enterprises and their

needs and the local educational and training needs and resources A key issue requiring research will be

around how the transitition scenarios differ depending on the level and relativity of thermal and coking coal

industries across coal mining communities The process for sourcing this information at a local and state

government level should be integrated into a policy feedback loop to support cyclical situational analysis and

policy adjustments from all levels of government This research should take place at the state level and be

encouraged at the industry and local level through grants

Mackay Central Queensland

JOBS AFTER COAL A Just Transition for Queensland | 29

4) Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

Many existing Queensland industries including those not highlighted in this report have the potential to

carry Queensland towards a new sustainable economy [sC5]mdashbut they will need support to do so Instead

of continuing to support and lower costs for the coal mining industry we need a plan to grow competitive

advantage across industries that have potential for sustainability and growth in regional mining communities

Along with industry and community organisations the State Government could organise a State Economic

Summit to assess existing industry clusters identify the potential of new and emerging industries consider

their competitiveness and key capabilities and identify barriers to increasing competitive advantage The

findings and recommendations from this Summit could be used to inform the work of the Unit established in

bullet point one above and the research outlined in bullet point two

5) Provide social protection of workers their families and incomes

If mines close suddenly workers need protection for their incomes and social services and possible relocation

even though many miners these days do not live in the communities where they mine Ideally these transition

plans would be developed early enough to ensure that new employment opportunities are in place for them

before mines actually close For many workers this is already too late but if the process begins now there will

be choices available for future retrenched coal workers who live in mining communities and regions Mining

companies could be incentivised andor penalised to give adequate notice to workers and other stakeholders

that closure may be impending and alternative economic opportunities need to be developed

6) Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

Involving the relevant unions in the planning of community transitions can enable them to move towards

becoming more proactive agents helping to plan the transition with critical networks and specific knowledge

about the needs of their members When a coal-fired power station in Washington State USA was scheduled

for closure for environmental reasons unions played a pivotal role persuading environmentalists and others

to delay the closure long enough for a Just Transition to provide different jobs for the workers This made it

possible for the coal resource to be replaced by wind and other renewable generation rather than natural

gasmdasha better environmental outcome and the unions became an active part in the phase out planning

Unions have a heavy workload defending workers rights and pay They need to be supported and financed to

play important roles in community transitions From facilitation and leadership of planning bodies career

planning and advice preferential hiring for displaced workers in the new alternative emerging industries and

leading the establishment of work controlled cooperatives unions have an essential role to play

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

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Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

One Million Climate Job Campaign (2015) About London United Kingdom httpclimatejobsorgzaabout Retrieved 10th of November 2015

Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 14: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

4 | JOBS AFTER COAL A Just Transition for Queensland

Revenue and economic activity generated by the coal Industry

As a nation the coal industry is Australiarsquos second

largest export earner after the iron ore industry Last

year it generated $40 billion which equal to about

12 of export revenue (Cleary 2015) The coal

industry in Queensland will pay around $2 billion

which amounts to 80 of total mining royalties

to the state Government in 2014ndash15 (Campbell

2014) Coal royalties represent around 4 of

Queensland Government revenue (Vorrath 2014)

Similar amounts come from vehicle registrations

and interests on funds saved for superannuation

in addition to long service leave entitlements as

shown in Figure 2 Such figures are not large in the

financial context of running a state government

Despite this the taxation contribution of coal is

incorrectly perceived as significant

The large revenues derived from coal exports

is due to the massive volumes the industry has

reached in recent years Total revenue to the coal

industry from its mining operations amounts to

approximately $25 billion per year that is added

to the economy This is a significant contribution

to Queenslandrsquos economy but one that needs

to be viewed relative to the size of the economy

Queenslandrsquos economy produced output worth

$290 billion in 2012ndash13 meaning the coal

sector accounted for around 7 of production

by value as shown in Figure 3 (right)

Commonwealth grants

Other staterevenue

MV registration

3

4840

54Interest

Coal royalties

Figure 2 Queensland State Government Revenue SourcesSource Queensland Treasury (2014) Queensland State Budget 2014ndash15 Paper 2

Non-mining

Other

2

91

7

Coal

Figure 3 Queensland gross state product coal other mining and non-mining sectors 2012ndash13 Source ABS (2013) Catalogue 52200 Australian National Accounts State Accounts

Coal industry jobs and their locationsThere has been much debate recently as to the exact number of people employed by the coal mining industry

Industry figures have been disputed because of the industryrsquos continual representation and communication

of construction jobs as if they were permanent In addition the industry conspicuously classifies indirect

growth in employment within the local economy as jobs that mining development is responsible for creating

Although in regional mining communities mining employment is high it is relatively small on a statewide

JOBS AFTER COAL A Just Transition for Queensland | 5

level Most recently the industryrsquos employment claims were revealed again in the Australian Land Court

case regarding coal mining development by Indian mining company Adani in the Galilee Basin to have been

exaggerated (Cox 2015) Adanirsquos mine proposal cited the figure of 10000 jobs attached to its development

application but the court was told by Adanirsquos own expert witness that the mine development would only

create 1464 actual jobs throughout the ongoing operation of the mine (Branco 2015)

According to research by The Australia Institute a majority of Queenslanders believe that the mining industry

employs ten times the amount of people it actually does (Campbell 2014) In reality the report shows that

the coal industry only employs 12 of the Queensland workforce (Vorrath 2014) What is significant is how

this employee population is regionally distributed with a majority of the employees residing in the Central

Highlands Isaac and Mackay Regional Council areas (Figure 4)

0

5000

10000

15000

20000

25000

30000

Whitsu

nday

Suns

hine C

oast

Banan

a

Rockh

ampt

on

Brisba

ne

Cent

ral H

ighlan

dsIsa

ac

Macka

yTo

tal

Em

ploy

men

t

Figure 4 Coal jobs by Local Government Area (LGA) in Queensland Top 8Source ABS 2011 Census Coal mining jobs by region in Queensland

SummaryThe coal industry plays a significant role in the Queensland economy but it is by no means irreplaceable As

the next section will show the coal industry has fallen from the lofty heights of its unprecedented profitability

and aggressive hunger for expansion It has come to a slower pace but due to the forecasted change expected

to affect the industry a new approach to planning local economies beyond coal is required

6 | JOBS AFTER COAL A Just Transition for Queensland

2 The drivers of change in the coal industry

Drivers of change The global energy market is in a period of dynamic long-term structural change that will have ongoing

repercussions for energy exporting countries such as Australia Over the last ten years the expansion in gas

the decrease in renewable energy prices the increasing of capital infrastructure costs the demand for cleaner

energy and energy efficiency have all dramatically changed the nature of the global energy economy (Ben

Caldecott 2014)

Coal has been the energy source that has made so many technological advancements through history possible

Although there has been many struggles and social costs along the way The communities workers and

companies that made this progress possible have substantially contributed to the creation of the modern world

Though if there is one thing we know from history it is that empires rise and fall The coal empire is crumbling

As it crumbles it is creating unnecessary instability stress and hardship on communities In communities like

Mackay where income has dropped by 30ndash40 as many other small mining towns people and businesses have

been caught culturally and economically unprepared for this economic shift (Bleby 2013)

Windmill and wind farm

JOBS AFTER COAL A Just Transition for Queensland | 7

2 The drivers of change in the coal industry

Drivers of change The global energy market is in a period of dynamic long-term structural change that will have ongoing

repercussions for energy exporting countries such as Australia Over the last ten years the expansion in gas

the decrease in renewable energy prices the increasing of capital infrastructure costs the demand for cleaner

energy and energy efficiency have all dramatically changed the nature of the global energy economy (Ben

Caldecott 2014)

Coal has been the energy source that has made so many technological advancements through history possible

Although there has been many struggles and social costs along the way The communities workers and

companies that made this progress possible have substantially contributed to the creation of the modern world

Though if there is one thing we know from history it is that empires rise and fall The coal empire is crumbling

As it crumbles it is creating unnecessary instability stress and hardship on communities In communities like

Mackay where income has dropped by 30ndash40 as many other small mining towns people and businesses have

been caught culturally and economically unprepared for this economic shift (Bleby 2013)

It is clear that coal thermal coal especially is no longer good for humanity despite our former Prime Minister

Tony Abbottrsquos fervent belief that it is (Online 2014) WA Premier Colin Barnett heralded last year in his

declaration that coal is in lsquostructural declinersquo (Burrell 2014) He was not wrong In the past 5 years alone the

Dow Jones Total Coal Market index has fallen by 76 (Baker 2014)

The reality is that the world is rapidly shifting away from fossil fuels including countries that are key

importers of Australiarsquos coal and gas China India Japan and South Korea import over 80 of Australiarsquos

export market for coal and gas The reality is that these countries have recently either announced policies to

shift away from these fuels andor initiatives to drastically enhance renewable energy and energy efficiency

(ldquoPolitics of Climate Change in Asiardquo 2015)

The following section of the report analyses the risk of Australia not being prepared economically for changes

that are already taking place As a country and a state our governing political parties continue to pursue

a strategy that assumes our short and long term economic prosperity is dependent on mining Few of our

political leaders are attempting to communicate an economic vision free from the inevitable boom-bust cycles

created by extracting emissions-intensive resources It is also a strategy that assumes energy production and

distribution will continue on as a very centralised process rather than following the great trend of networked

and decentralised distribution that is shaping the 21st century (Riftkin 2015) This strategy is short-sighted

given recent announcements by China and India to phase out fossil fuels and move rapidly towards cleaner

and more distributed energy sources (Rohr 2014)

The international coal priceThe majority of Queenslandrsquos export coal mining industry is dependent on demand for steel making from

the worldrsquos coking or metallurgical coal market This is a market that has been severely impacted by a

combination of actions in China the biggest steel manufacturer in the world Primarily Chinarsquos housing

boom has been slowing down over recent years this in turn has massively reduced the need for steel Most

importantly China is also running a ldquowar on pollutionrdquo that is having direct short- and long-term impacts on

the viability of the coal industry as a whole This has resulted in a campaign of state enforced closures of coal

plants and steel mills especially near the countryrsquos big industrial coastal cities (Ng 2015)

Prices on the international coking coal stock market have plummeted from the all time high of US$330

tonne in late 2011 to a sobering low of US$109tonne in the first quarter of 2015 The outlook still remains

gloomy for the coal sector

With the continued slowdown in the global and Chinese economies the price of iron ore has also collapsed

Prices have dropped by one third in the first quarter of 2015 alone causing at least one Australian mine to

close operations and many others to cancel plans for expansions (Sandersen 2015) Iron ore is closely linked

to the sales of coking coal which is used most commonly to melt iron ore into steel

8 | JOBS AFTER COAL A Just Transition for Queensland

20

14

US

$t

0

100

200

300

400

2005 2007high quality high coking semi-soft coking

2009 2011 2013 2015

Figure 5 Coking Coal Prices 2005ndash2015 (worldcoalcom)

A similar price drop has hit thermal coal used in coal-fired power stations Thermal coal is mined in many

Surat Basin mines and is also found in some Bowen Basin mines where it is an addition to the high quality

coking coal found in the area Significantly the proposed mining development in the Galilee Basin is only

for thermal coal which at a time when coal-fired power stations are being replaced by cleaner options is

alarming (Pacific 2012) Thermal coal was priced at US$120tonne in late 2011 It had plunged to US$73

per tonne by February 2015 and has remained below US$60tonne since May 2015 Chinarsquos new rules of

cutting ash and sulphur content in seaborne coal imports along with increasing tariffs on coal imports has

meant that even Shenhua Chinarsquos biggest coal company cut coal imports in early 2015 (Jenda 2015)

Overall Chinese consumption dipped by 16 in 2014 despite their economic growth of 73

The decade of relentless and largely unplanned investment in Queensland coal mining in times of high prices

led to a massive oversupply against a background of decreasing demand The state and federal governments

failed to slow the industry down so that it did not overshoot an economically sustainable size This has made

the challenge of transitioning out of the industry even harder along with magnifying the pain now faced by

many mining towns (Neubauer 2015) All of this leaves a million-dollar question Is the downshift in [coal]

demand terminal According to Richard Gibbs from the Macquarie Bank it certainly is (Neubauer 2015)

The global coal market is also experiencing competition from renewables and shale gas slow growth and

government policies which are in part driven by the threat of climate change

The growing competition from renewable energy sources has been increasing its impact on the coal industry

by slowly but steadily eroding profits of domestic coal power stationsmdashand thus demand for coalmdashacross the

country (Hewson 2015) In Queensland the state government should be applauded for its 50 renewable

energy target by 2030 which will further add strain to struggling coal power generators (Parkinson 2015)

A more than 50 decline in coal prices has seen most listed coal companies globally to lose 80ndash90 of their

equity market value in the last four years (Buckley 2014) In 2014 the world added more energy generation

capacity from wind power than from coal Overall Europe and America have already cut coal-fired generation

JOBS AFTER COAL A Just Transition for Queensland | 9

capacity by over a fifth in a decade The sun will undoubtedly rise even further for renewable energy in 2015

but for coal there remains a lot further to fallrdquo said a report by the Institute for Energy Economics and

Financial Analysis in January 2015 (Buckley 2015a)

This statement is borne out by the facts

bull In 2014 new global wind installations grew 40 to 46GW led by China and America (Buckley

2015b)

bull In 2014 the US solar installation sector created almost 50 more jobs than the oil and gas pipeline

construction industry (Foundation 2015)

bull From 2000 to 2011 global annual growth in the yearly global installation rate of photovoltaic solar

panels was 40 In 2011 the total amount of global PV capacity installed was 27GW an astonishing

60 growth on 2010 levels (Green 2012)

bull Unsubsidised renewable energy is now cheaper than new coal-fired power in Australia (Paton 2013)

Solar installation

10 | JOBS AFTER COAL A Just Transition for Queensland

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

Coal power station

JOBS AFTER COAL A Just Transition for Queensland | 11

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

The outlook for coal pricesWhile some consider the outlook for coal prices as cyclical in nature and that a turnaround will increases

prices for coal other analysts believe this downward trend based on policies health impacts and concern

about global warming is here to stay

Financial reports from the major mining companies in Australia paint a grim outlook for global metallurgical

coal prices China was once the great hope for coking coal exporters but BHP Billitonrsquos metallurgical coal

market outlook (May 2013) indicated a flattening demand into the future (Billiton 2013 Rohr 2014)

BHP Billiton has warned that the increased usage of scrap metal in furnaces would result in lower growth in

demand for pig iron while greater production from electric arc furnacesmdashwhich use little or no coking coalmdash

are expected to ldquocontribute a significant share of total Chinese steel production by 2030rdquo Although coking

coal will likely remain necessary for steel production for some time as renewable energy sources grow the

efficiency and lower emissions intensity of electric arc furnaces will help them to outcompete coking coal in

the not too distant future Some experts even predict another technology called lsquodirect reduced ironrsquo that uses

gas to make steel could make coking coal redundant within a decade (Macleod 2013)

It is not just China BHP Billiton also cautions that the Indian steel outlook is less certain as steel production

growth has been slower than expected Prices for commodities from iron ore to coal are sinking as Chinarsquos

leadership tries to steer the economy away from debt-fueled property investment and smokestack industries

embracing services and domestic-led consumption At the same time President Xi Jinping is stepping up efforts

to combat pollution The provincial government of Beijing and a number of other major cities have made plans to

ban coal use by 2020 further putting the squeeze on all types of heavy industry (Coulter 2015)

However the outlook is not all dismal for coal everywhere In India demand is expected to continue to rise

without peaking until the 2030s Indiarsquos government predicts a 19 rise in coal imports this year which

may offer very short-term opportunities for Australian miners The opportunities are short term because these

import increases are something the Indian government has indicated it does not want continued into the

future Indiarsquos plan is to ramp up renewable energy technology as well as develop their untapped coal fields

to support a gradual phase out of thermal-coal imports within the next 2ndash3 years (Baker 2014) Regardless

the Indian mining giant Adani still hopes it can get coal from its proposed Carmichael mine in the Galilee

Basin and export it to India for the duration of its 60 year life span After a number of international banks

have ruled out funding for the Carmichael coal mine Adani has been looking for cash handouts from the

Australian Government to fund its shaky proposal However sanity has prevailed and these have been ruled

out by the new Prime Minister (Edis 2015) It is clear the Indian governmentrsquos plan for Indiarsquos future coal

supply sources does not involve Australian coal

12 | JOBS AFTER COAL A Just Transition for Queensland

This is the marketplace in which Australiarsquos exported coal competes and this is the marketplace that holds the

livelihoods of workers and communities in its hands The current state and future outlook of the coal industry

suggests that it would be risky not to scale down the thermal coal industry and at least restrict any new mine

expansions in the coking coal sector There are those who remain positive about the industryrsquos future but

recent events in the coal industry and uncertainty over medium and long term suggest that there are better

industries to back Behind these diverse risks threatening the coal industry is the inescapable scientific

fact that we cannot afford to burn any more coal from new coal mines if we want to decrease the risk of our

already fifty fifty chance of avoiding the worst impacts of global warming (IPCC 2013) If we wanted to try

and remove the total risk of runaway climate change we could not even afford to burn the coal that are sitting

in trucks on trains at port yards and in ships Not even the coal travelling on conveyors into power station

furnaces about to be burnt right this very moment

The carbon bubbleFrom the South Sea Bubble as well as the housing and dotcom bubbles of the last decade periodic over-

investment has been made into sectors deemed too important to fail The rush and hubris of investors seeking

incomparable profits to finance such industries has led to speculative bubbles of over-estimated value that

eventually burst In the economic fallout that results working people carry the burden while the speculators

and profiteers generally are not held accountable Another speculative bubble has formed and it dwarfs the

size of all of the bubbles that have come before it It is called the Carbon Bubble (Tracker 2015)

One of the few things world leaders agreed upon at the Copenhagen climate talks was that the Earth needs to

stay below 2degC warming to minimize the risk of runaway climate change

bull If we are to avoid going over 2degC we can emit only 565 more gigatonnes of carbon dioxide (IPCC 2007)

bull Burning the fossil fuel that corporations now have in their reserves would result in emitting 2795

gigatonnes of carbon dioxidemdashfive times the safe amount (Leaton 2013)

The Intergovernmental Panel on Climate Change has now produced its own carbon budget They have calculated

that if we continue pumping carbon into the atmosphere at todayrsquos rate this budget will be exhausted within

15ndash25 years (IPCC 2013) This means there will be growing political pressure on the fossil fuel industry to

keep most of its reserves in the ground That pressure has already begun around the world Citizens are pressing

their superannuation funds councils banks universities and other institutions to divest from fossil fuels with

growing success The year 2013 saw several major financial institutions recognise the financial and ethical

implications of continuing to finance fossil fuels with Norwegian Storebrand Rabobank and the World Bank

among those who made major announcements on divestment or cutting loans In 2014 major institutions

including Stanford University the Australian National University and Oxford University have divested their fossil

fuel funds (Advisors 2015) So far in 2015 local councils in Australia such as Moreland Newcastle Byron Bay

Melbourne and many more have also divested (Ryan 2015) Divestment is now going mainstream and will have

increasing impacts on fossil fuel company shares into the future

JOBS AFTER COAL A Just Transition for Queensland | 13

As a result of the momentum of the global divestment movement international stock exchanges are creating

new indexes to exclude fossil fuels in preparation of the impending seismic shift in global finances In late

April 2014 the worldrsquos largest fund manager Blackrock joined with the FTSE Group in London to create

a new index The ex-Fossil Fuels Index Series is an innovative set of benchmark indices that excludes

companies directly engaged in extracting so-called ldquostranded assetsrdquo in the hydrocarbons industry ldquoThis

is one of the fastest-moving debates I think Irsquove seen in my 30 years in marketsrdquo FTSE managing director

Kevin Bourne told the Financial Times (Clarke 2014) The Bank of England is now investigating its exposure

to risk from its fossil fuel investments To top that off the worldrsquos biggest sovereign wealth investment fund in

Norway has recently dumped coal investments (Carrington 2015) The largest contribution to climate change

from the fossil fuels in company inventories at present is from coal Because it has the largest climate impact

per unit of useful energy it is being targeted for early phase out

The book value of fossil fuel companies is determined not only by their current infrastructure and deposits

undergoing extraction but also by the size of their legally claimed reserves Because the book value of so

many companies has greatly exceeded their realisable value as emissions restrictions come into place a

speculative bubble has formed Unfortunately bubbles usually burst in the end leaving behind stranded

assets and stranded capitalmdashand leaving workers in the lurch The only alternative is a mature and planned

phase out of the industry that slowly devalues and deregisters fossil fuel reserves at a pace that does not lead

to financial crisis A planned phase out that gives time for just employment transitions for fossil fuel

communities

500

1000886

565

1500

2000

2500

3000

already burnt

remaining

2000ndash2050

2011ndash2050

Coal 2˚Global carbon

budget

Oil

Gas

GtC

O2

Global fossil fuel reserves

Figure 6 Carbontracker 2012 report The Carbon Bubble

14 | JOBS AFTER COAL A Just Transition for Queensland

In 2013 the report Unburnable Carbon highlighted that ldquoCompany valuation and credit ratings

methodologies do not typically inform investors about their exposure to these stranded assetsrdquo (Leaton

2013) This is very troubling when considering that the supporting share value of these reserves was $4

trillion in 2012 and that they serviced $127 trillion in outstanding corporate debt over the same period We

need to challenge these methodologies (Tracker 2015) In a move that signals a step towards the solutions

required the World Bank the European Investment Bank and the US Export-Import Bank have all announced

that they will not fund further coal-fired power plants except in exceptional circumstances As changes in

policy by the major coal consumers the uptake of renewables and the need to stay within the global carbon

budget begin to bite it is high-cost producers who will be squeezed first Australia is considered a high-cost

producer because of our strong industrial relations and wage laws which makes it all the more necessary that

our governments are vigilant and prepared for impending macroeconomic change (Cleary 2015)

SummaryThis is the environment in which the Australian coal industry finds itself Internationally coal is no longer

looking like a safe long-term investment within the context of the rapid changes afoot in the world The coal

industry leaders are either in denial about their industryrsquos future or are determined to squeeze as much profit

as possible until the cost gets worn by workers and their communities (Saunders 2015)

The issues of climate change demands for cleaner air and more efficient new technologies The realities of

the market are revealing coal as the sunset industry it really is This is not an industry Queenslanders can

rely on to create a stable resilient and sustainable economy It cannot be relied upon for future wealth

and future jobs We have been warned by the UN Climate Change Secretariatrsquos Executive Secretary that the

diversification and a managed transition away from coal is what we need to do and we need to heed this

warning (Australian 2015)

JOBS AFTER COAL A Just Transition for Queensland | 15

3 Assessing some of the economic opportunities in mining regions

IntroductionThe great state of Queensland is endowed with sustainable human and environmental resources that have the

potential if we choose to harness it to drive a balanced diverse and resilient economy for generations to

come Diversifying Queenslandrsquos economy to create sensible and stable prosperity beyond the boom and bust

vagaries of the mining industry must be a key objective of the Queensland Government The Newman LNP

Governmentrsquos Queensland Plan headline was lsquoforging diversity and prosperityrsquo (Government 2014) But

throughout Newmanrsquos reign as premier no action was taken Under the new Palaszczuk Labor Government

there has been some effort to support economic diversification across the state This is insufficient because as

of yet nothing has been done to adequately fund facilitate and empower the actual communities where

mining takes place The grassroots Labour Environmental Action Network an organisation within the

Australian Labour Party has called for change At the 2015 Queensland ALP State Conference they put

forward a motion that was passed calling on the state government to prepare a just transition policy before the

next conference (ALP 2015)

Grain harvest

16 | JOBS AFTER COAL A Just Transition for Queensland

Most importantly both major parties have continued their relentless support for further coal mine expansions

that inherently suffocate the process of diversification

With the coal industry forecast to be in a lsquostructural declinersquo by political leaders and bankers alike it is now

essential that the focus for economic development be on industries that can bring sustainable prosperity to

Queensland (Burrell 2014 Robins 2014) In the United Kingdom under Prime Minister Thatcher the world

witnessed the consequences of industries closing without planning and without investment to transition local

communities and industries

The following section of the report outlines how the opportunities for sustainable economic development

are already known Queensland has well-established sectors with bountiful potential in agriculture tourism

manufacturing and education It also has the opportunity to capitalise on a boom in renewable energy and

bio-industrial products to create more sustainable economic sectors These industries are ready to fill the

void that will be and is being left by coal however they lack the support needed to ensure their presence in

mining communities to provide a just transition away from coal where it is most needed

Agriculture and aquacultureCurrently the Queensland agricultural sector is worth near $147 billion and employs over 90000 people

(Queensland Government 2012) The sector has the potential to massively expand its food exports to Asia as

population and economic growth continue to surge in the dynamic economic region Through the competitive

advantage of our proximity to Asia and high-quality produce capabilities agricultural products have become

Queenslandrsquos second largest export earner and have the potential for continued growth (Heath 2014) By

increasing availability of farming technology driving productivity minimising costs and focusing on profitable

premium produce markets the Queensland Agricultural Strategy (2012) aims to double the total value of

production for all agricultural commodities by 2040 With innovative new farming approaches and ecosystem

system management strategies such increases in production are possible in a way which sustainably manages

and regenerates the land

To reduce pressure on fish stocks from home and abroad the promotion of aquaculture could be further

encouraged across the state This industry is worth $10 Million a year (Lucas DLGP 2011) At present

there are several sites located along the coast however research conducted over the last decade has

identified future sites for land based aquaculture Industry consultation aquaculture management training

programs and related issues in developing a workforce need to be considered (Plan 2012) The Queensland

Aquaculture Industry Federation sees the need for continued collaboration between government and other

stakeholders in order for this industry to reach itsrsquo potential as a strong core industry (Federation 2015)

The Department of Employment Economic Development and Innovation is leading the government drive to

JOBS AFTER COAL A Just Transition for Queensland | 17

develop the aquaculture industry This could see a future where aquaculture goes further than just meeting

domestic demand and grow to cater for high value export markets (Lucas DLGP 2011)

New opportunities in animal genetics aquaculture horticulture and bio-processing are driving agriculture

and aquaculture sector growth in new directions Both industries are about creating intergenerational

economic sustainability Choosing these industries that have unlimited potential to sustain our communities

and our ecosystems over mining is choosing long-term jobs over short-term jobs that cannot be passed on to

the next generation The bottom line is that we live in a hungry world and Queensland is well placed to be a

reliable and sustainable source of food to other nations without the agricultural potential we are endowed with

(Government 2014)

Tourism and recreational fishingDespite setbacks due to the high Australian dollar and loss of skilled workers to the mining boom the

tourism industry is still a critical part of the Queensland economy with massive future potential (Dr Tien Duc

Pham 2015) The tourism industry made a significant employment contribution providing 124000 jobs in

2010ndash11 with steady growth in international visitor nights (Deloitte Access Economics 2012) Queensland

has the potential to become a global leader in tourism and ecotourism and by doing so to create more

jobs and revenue (Government 2014) This will be possible similarly as in agriculture by promoting the

experiences available in our natural places and the quality hospitality we can provide to the growing Asian

middle class (Wilson 2013) The Chinese tourism market is seeking clean fresh and new experiences that

Queensland can cater to and is expected to be worth $74 billion by 2020 (Guterres 2014) Significant to

Queenslandrsquos potential in tourism is our ability to expand the tourism industry in the authentically Australian

rural and stunningly beautiful coastal mining communities where new economic activities are most needed

Further mining expansion in such places threatens to do to tourism what the growth in heavy industry did to

Gladstonersquos economic diversity where fishing and tourism are now non-existent

Although sustainably managed fisheries have the potential to provide continued economic prosperity to

Queensland there lies a major opportunity in net free fisheries to develop as tourism industries specifically

in coal mining regions A great recent example of this taking place is the newly established Net Free Zone

between from the Northern end of St Helens beach to Cape Hillsborough (Spelitis 2015) Along with three

other net free zones across the state the extent of the cumulative commercial opportunities for sustainable

tourism the net free zones have created has made it one of the three pillars as part of the 2020 vision for the

Queensland has the opportunity to develop an abundant and resilient agricultural industry that supports the transition to sustainable prosperity

18 | JOBS AFTER COAL A Just Transition for Queensland

Queensland Tourism Industry Council (Council 2015) The Mackay Isaac and Whitsunday (MIW) coal mining

region has excellent accessibility to a variety of fishing pursuits In addition to the new net free zone ther are

five fresh water stocked impoundment fisheries creating opportunities to promote lake beach offshore and

deepwater angling Improvement of accommodation facilities quality of jetties access roads and coordinating

fish trails with regional events could maximise visitation from recreational and tourism markets (Mackay

Tourism Tourism Queensland 2012) Charter fishing operatiors tackle stores campsites motels boat sales

boat building and maintenance all have the opportunity of benefitted from growth from the recreational fishing

tourism industry (Lucas DLGP 2012)

Higher educationOver the past decade millions of international students have visited Queensland for our quality tertiary

institutions and enjoyable lifestyle International education is Queenslandrsquos biggest service export with

nearly $2431 million being generated in 2013ndash14 alone (Australian Government 2014) The majority

of Queensland is strategically located in the latitudinal tropical zone where at a global level more than

50 of the worldrsquos population is forecasted to live by 2050 (Australian Government 2015) This makes

Queenslandrsquos universities well placed to develop the partnerships and research innovations tailored to the

challenges and opportunities of the new tropically-oriented world This will help Queensland and especially

North Queensland to attract increasing levels of international students to be part of our high-quality tropical

research institutions These students will increase spending through tourism support the creation of our own

skilled and globally connected workforce and connect Australia to business networks and opportunities across

the world In 2013ndash14 the Cairns region benefitted to the tune of $1375 million from international students

(McGuiggan 2014) With the right policies these benefits already being experienced primarily in Cairns

Townsville and Brisbane can be spread further across Queensland to make international education a strong

economic driver in transitioning mining communities

Bio-industrial productsAs the world moves away from fossil fuels the demand for cleaner more sustainable fuel sources will grow

(Emissions 2014) By using excess organic matter produced through food production to develop bio-industrial

products Queensland has the potential to export clean and sustainable fuels and bio-plastic materials to the

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Tourism is about experiences not extraction It has the potential to share Queensland beauty with the rest of the world and create sustainable local economies in the process

Queenslandrsquos greatest resource is the minds of its people We can share and co-create our innovations and learning with students from all over the world who want to make Queensland the launch pad for their careers

JOBS AFTER COAL A Just Transition for Queensland | 19

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Sorghum fields

20 | JOBS AFTER COAL A Just Transition for Queensland

Queensland is well placed to develop biofuel products from waste and oil crops such as Pongamia and algae

in addition to using the statersquos advanced sugarcane industry to convert excess cane using efficient cellulosic

processes Recent scientific developments in bio-plastics at the University of Queensland show that as a

state Queensland has the skills and ability to build a bio-industrial products industry that can contribute to a

sustainable economic future (Queensland 2015)

Renewable energyQueensland the sunshine state has enormous potential to generate electricity from the sun wind and waves

in addition to many other abundant renewable energy sources (Green 2012) Renewable energy has for a long

time been the catch cry from environmentalists as the complete solution to creating the jobs necessary to

replace the fossil fuel industry This report has been written partially to show recognition that as much as

renewable energy has the potential to create more jobs and replace fossil fuel domestic energy production it

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Gemasolar solar thermal power station Spain

JOBS AFTER COAL A Just Transition for Queensland | 21

cannot completely replace all of the coal

export industry jobs Numerous studies

show that with strong climate policies

over 7100 jobs can be created in

Queensland through renewable energy

by 2030 (Institute 2011) Thousands of

these jobs will be in regional

Queensland These should be prioritised

for regions where the mining industry

has developed rural communities in

need of new economic opportunities Far

North Queensland is especially suited to

further renewable energy investment

because of its climatic conditions and

because of the expensive transmissions

losses from having energy wired from

southern power sources (Allen 2011)

This makes it essential that government

policy ensures that the fair share of the

$35 billion in potential renewable

energy investment goes to rural mining

communities not only where it is most

needed economically but where it

makes the most business sense

(Department of Employment 2009)

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Queensland has the potential to become a smart sunshine state powered by clean and sustainable renewable energy By doing this we will be creating jobs in rural mining communities where they are needed most and building a foundation for a new sustainable economy

22 | JOBS AFTER COAL A Just Transition for Queensland

4 Community transitions Global case studies

There are communities around the worldwhich have reinvented themselves after the end of coal mining and

developed prosperous economies in doing so It has been a struggle but where there is a level of government

support inspired local leadership and the community is working together to regenerate its economy it has

been possible (Coal 2015) We are not suggesting any of these examples can be directly transferred to

Queensland communities facing the end of coal mining The object of these case studies is not to provide a

blueprint for Mackay Gladstone Rockhampton or mining towns in Central Queensland but to show the

diversity of ideas that have worked in other places that might stimulate our local communities to reinvent

themselves too

Hazelwood coal power station La Trobe Valley Vic

JOBS AFTER COAL A Just Transition for Queensland | 23

La Trobe ValleyIn the brown coal producing region of the La Trobe Valley in Victoria a grassroots transitionary force has been

underway for the past fifteen years Earthworker was set up by union and climate change activists seeking a

real alternative to coal and privately owned business models Earthworker Cooperativersquos mission is to create

jobs that respond to the lsquochallenges of climate change and the need for local job creation by facilitating the

establishment of worker-owned cooperatives hellip in sustainability-focused industriesrsquo (Earthworker 2015)

Their current focus is the establishment of a cooperative producing solar hot water systems in partnership

with an existing business called lsquoEverlast Hydro Systemsrsquo Their goal is to take production to Morwell in the

La Trobe Valley where workers are in need of an alternative to the coal industry The unique cooperative model

has made selling arrangement possible through inserting the option to buy a solar hot water system through

enterprise bargaining agreements

BanwenThe DOVE workshop in Banwen South Wales (Dove 2015) was started by agroup of women who during

the 1984ndash85 coal minersrsquo strike decided that community-based education was the most practical path to

regenerate the local economy Setting up shop in an abandoned mine office they developed a series of adult

education workshops for women Three decades later the DOVE building hosts a diverse set of small-scale

entrepreneurs including a daycare a library a community garden and a cafeacute featuring local foods

OrkneyOrkney like Central Queensland is a relatively isolated place with a scattered population Situated at the

top of Scotland two hours from the mainland by ferry Orcadians like Central Queenslanders often feel

like spectators to what goes on in the rest of their country They also feel vulnerable to central government

decisions and are often irritated by the lack of understanding of island life on the part of distant authoritiesmdash

its particular customs dialect and ways of doing things Since Norse times Orkney islanders burned peat (a

very young form of coal) as their primary fuel source but all the peat has been dug up This traditional way

of life where each farming family had its own peat bank and spent long summer days cutting and drying

peats while sharing picnics as children played is gone Another non-renewable energy source North Sea oil

discovered in the 1970s brought positive and negatives for the island It turned the tide of depopulation but

like the peat banks the oil is depleting and another lsquoend of an erarsquo is approaching Orcadians have woken up

to the fact that they canrsquot continue to hark back to the past and are confronting the issues of a future without

fossil fuels

Over the last three decades European community funding has helped Orkney to equip itself for the green

energy revolution Orkney now plays a global role in the evolution of wave and tidal technologies and

significant research and development work is creating new employment opportunities A high school in

Stromness was converted into the European Marine Energy Centre and is now a world leader providing

developers the opportunity to test full-scale prototypes in the sea The worldrsquos largest single-rotor tidal turbine

24 | JOBS AFTER COAL A Just Transition for Queensland

was the first in Scotland to be connected to the national grid from this centre Marine energy combined with

an expansion of wind turbines means that the island is now self-sufficient in electricity These renewable

energy developments have created jobs in the Orkneys in civil works and erection grid connection and

communications (Stuart 2011)

Investment in renewable energy and its associated RampD has attracted people to live work and study on the

island Islanders used to have to leave to get tertiary education but it is now possible to study for an MSc in

renewable energy at a Heriot Watt University campus in Stromness A new generation of Orcadians have grown

up to see renewable energy as the way of the future something quite ldquonormalrdquo which will provide greater

opportunities for their children to stay on the island with genuine prospects for employment in meaningful

jobs requiring a wide range of skills and qualifications This shows what a community in transition to a low

carbon future can look like

Nord-Pas De CalaisUntil 1986 the north-east region of France Nord-pas de Calais was a major coal mining area It still boasts

huge twin tailings mountains the largest in Europe which have become a tourist attraction It is known

to Australians for the war cemeteries associated with the battle of the Somme in WW1 but it has recently

undergone a remarkable transformation towards a truly sustainable economy Old coal mines at Lens have

been transformed into an art gallery displaying works from the Louvre collection in Paris Hundreds of people

are trained in energy efficiency solar energy and green architecture at a new training centre in nearby Loos-

en-Gohelle

The Chamber of Commerce invited economist and social visionary Jeremy Rifkin of the TIR Consulting

Group and his chief economist Skip Laitner to apply their model of the third industrial revolution to the

district (Riftkin 2015) Rifkinrsquos Third Industrial Revolution combines renewable energy energy efficiency

and the connectivity of the internet Buildings are energy generators and hydrogen is used as energy storage

After working with the community for some time the Master Plan was published in 2013 and envisages

that 100000 new jobs can be created by the transition plan (LLC 2013) Certainly the population has not

declined since mining days and has even slightly increased Inspired local leadership was the key in this

community plus some outside funding to help with the underpinning research

Appalachia (Kentucky)The transition process is just starting here but the community is very organised Kentuckians For The

Commonwealth has been battling the negative effects of coal mining for some decades and is now planning a

transition to ldquobuilding a better future beyond coalrdquo (Commonwealth 2015) Last year they held a conference

in Harlan Kentucky right in the middle of the Appalachian coal fields and invited guests from other US

regions in the same position as well as from Wales It is too soon to see what the outcome of their learning

process will be but they are another example of a community taking its future into its own handsmdashoptimistic

that there is a better future after coal

JOBS AFTER COAL A Just Transition for Queensland | 25

5 A just transition for coal mining communities policy recommendations

The opportunities to transition from unsustainable coal mining to prosperous communities with decent

employment will not just materialise by themselves It will need the political will and the right incentives to

ensure that communities are not left fending for themselves with unemployment increasing and families

in need of long-term welfare But not only is the political will not currently there both major political

parties continue to support the expansion of this sunset industry and by doing so are making the transition

challenges progressively more difficult (Denniss 2012) For too many years governments have uncritically

supported the coal mining sector Entire government departments have been focused on facilitating mining

with tax incentives weakening assessment and approval processes along with providing through tax payer

money established industrial infrastructure to support new projects Government policy often seeks to grow

royalties income by supporting the extraction of as much coal as possible as an escape the challenge of

finding other ways to increase state revenue New sustainable industries in coal communities will need just as

much if not more support while it gets started

We propose that communities local businesses workers unions community groups environment groups

local government and state and federal governments all need to be involved in planning a transition to

alternative forms of economic development and providing new jobs We call this a Just Transition (Anthea

Bill amp Evans1 2008 Brecher 2012) Just Transition is a framework for a fair and sustainable shift to a low

carbon economy proposed by trade unions and supported by environmental NGOs A Just Transition holds

that a shift to a lower carbon economy is vital to avoid dangerous climate change

Bimblebox Nature Refuge

26 | JOBS AFTER COAL A Just Transition for Queensland

Tough targets to cut greenhouse pollution supported by new environmental regulations and emerging carbon

markets will transform the global economy over the next decade These shifts will have major implications

for working people in energy supply industry and transport and for everyone as consumers There is a concern

that significant periods of economic restructuring in the past have often happened in a chaotic fashion

leaving ordinary workers along with their families and communities to bear the brunt of the transition to

new ways of producing wealth A just transition seeks to prevent such injustice becoming a feature of this

transition suggesting that it would not only be morally wrong and socially damaging but would undermine the

credibility of the transition itself and could slow or even halt the changes that must be made

It is through the challenges of communicating the urgency of climate change and other social and

environmental impacts that much of the debate about coal and its consequences for land water and the

climate has become unnecessarily adversarial and polarised Coal mining and power generation communities

deserve acknowledgement and appreciation for all that they have historically and currently contributed to

our country and our economy In communicating the economic shifts that are taking place and facilitating

the necessary transitions the Australian community needs to be respectful of the history and identity of coal

communities Environment groups government unions and the community need to initiate and engage in

the discussions about transitions in an open honest and compassionate manner Only by approaching the

transition in this way can the adversarial nature of the debate be broken down to make way for transformative

mutually respectful and holistic solutions

Whitsundays lsquoHave a Heart for the Reefrsquo

JOBS AFTER COAL A Just Transition for Queensland | 27

A just transition recognises that support for policies are conditional on a fair distribution of the costs and

benefits of those policies across the economy A just transition should also recognise that the creation of

opportunities for active engagement by those affected in determining the future wellbeing of themselves

and their families is essential for the long term empowerment of citizens and communities The following

recommendations have been written with the aim of emphasising such community empowerment as a priority

Recommendations

1) Establishing a unit within the State Government to support coal mining regions to transition to new economies

Specific institutions are needed to develop transition plans They need to have strong government support

and funding regional offices and representation from diverse stakeholders A dedicated unit within the

Department of Infrastructure Local Government and Planning could be established to oversee this work

They could work on the ground in the main coal mining communities to bring government expertise into

regional entities that would develop local plans that involve and empower the whole community This unit

or a connected unit would analyse existing barriers to the creation of competitive advantages for alternative

sustainable industries and would identify actions the State Government can take to support such creation

Any policy and support should come with clear conditions and timeframes These regional entities would

need generous budgets to assist local groups to develop their transition strategies to support research re-

training and the development of new business and community start-up initiatives based on the needs and

strategies of communities The key to communities becoming economically resilient is high levels of autonomy

and freedom in shaping their economic futures Research funding available to the regional entities will be

essential to the empowerment of local leadership Research funding should at least reach the OECD research

funding average and it should prioritise low carbon technologies and industry sectors with increased triple

bottom line sustainability potential

2) Support community leadership in diversifying local economies through the establishment of democratic regional entities

In each mining community a group of traditional and non-traditional community leaders willing to think

beyond lsquoBusiness as Usualrsquo to imagine a better future could be called together to work in collaboration with

and be resourced by the state government managed regional entities mentioned in recommendation one

The leaders would come from diverse backgrounds such as from local governments business associations

unions farming groups renewable energy businesses and educational institutions The objectives of these

leadership groups would be tailored to each community The objectives would in broad terms be to increase

employment in new diverse industries based on sustainable production and publicservice sector job creation

Expert facilitation alongside inclusive and democratic community engagement initiatives would be essential

to ensure the process and environment for creativity and innovation is maximised To develop such groups

it would be necessary to take stock of the existing resources skills and successful businesses on which a

new future can be built In addition an analysis of the social environmental and economic needs of the

28 | JOBS AFTER COAL A Just Transition for Queensland

community would also be beneficial These groups could then establish economic diversification projects

including value-added local production worker controlled co-operative enterprises and new community-

based enterprises that economically empower the local community Activities may also include support for

alternative industries in regard to process restructuring or subsidising the wages of workers displaced from

higher paying traditional industries

3) Support researching and communicating how the just transition can take place

Consistent research is needed on the best options to support the state and national economies to transition

This requires ongoing situational analysis of the global energy market shifts at both government levels In

addition each mining region will need assistance to research the number of jobs that are dependent on coal

the skills of those employed the level of local national and global long- and short-term risk to local mining

operations the transferability of jobs to other industries local opportunities for new enterprises and their

needs and the local educational and training needs and resources A key issue requiring research will be

around how the transitition scenarios differ depending on the level and relativity of thermal and coking coal

industries across coal mining communities The process for sourcing this information at a local and state

government level should be integrated into a policy feedback loop to support cyclical situational analysis and

policy adjustments from all levels of government This research should take place at the state level and be

encouraged at the industry and local level through grants

Mackay Central Queensland

JOBS AFTER COAL A Just Transition for Queensland | 29

4) Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

Many existing Queensland industries including those not highlighted in this report have the potential to

carry Queensland towards a new sustainable economy [sC5]mdashbut they will need support to do so Instead

of continuing to support and lower costs for the coal mining industry we need a plan to grow competitive

advantage across industries that have potential for sustainability and growth in regional mining communities

Along with industry and community organisations the State Government could organise a State Economic

Summit to assess existing industry clusters identify the potential of new and emerging industries consider

their competitiveness and key capabilities and identify barriers to increasing competitive advantage The

findings and recommendations from this Summit could be used to inform the work of the Unit established in

bullet point one above and the research outlined in bullet point two

5) Provide social protection of workers their families and incomes

If mines close suddenly workers need protection for their incomes and social services and possible relocation

even though many miners these days do not live in the communities where they mine Ideally these transition

plans would be developed early enough to ensure that new employment opportunities are in place for them

before mines actually close For many workers this is already too late but if the process begins now there will

be choices available for future retrenched coal workers who live in mining communities and regions Mining

companies could be incentivised andor penalised to give adequate notice to workers and other stakeholders

that closure may be impending and alternative economic opportunities need to be developed

6) Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

Involving the relevant unions in the planning of community transitions can enable them to move towards

becoming more proactive agents helping to plan the transition with critical networks and specific knowledge

about the needs of their members When a coal-fired power station in Washington State USA was scheduled

for closure for environmental reasons unions played a pivotal role persuading environmentalists and others

to delay the closure long enough for a Just Transition to provide different jobs for the workers This made it

possible for the coal resource to be replaced by wind and other renewable generation rather than natural

gasmdasha better environmental outcome and the unions became an active part in the phase out planning

Unions have a heavy workload defending workers rights and pay They need to be supported and financed to

play important roles in community transitions From facilitation and leadership of planning bodies career

planning and advice preferential hiring for displaced workers in the new alternative emerging industries and

leading the establishment of work controlled cooperatives unions have an essential role to play

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

References

ABC Online (2014) Coal lsquogood for humanityrsquo Prime Minister Tony Abbott says at $39b Queensland mine opening httpwwwabcnetaunews2014-10-13coal-is-good-for-humanity-pm-tony-abbott-says5810244 Retrieved 10th of November 2015

After Coal (2015) Community Regeneration West Virginia United States httpaftercoalcomengage-your-community Retrieved 10th of November 2015

Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

Arabella Advisors (2015) Measuring the Growth of the Global Fossil Fuel Divestment and Clean Energy Investment Movement httpwwwarabellaadvisorscomwp-contentuploads201509Measuring-the-Growth-of-the-Divestment-Movementpdf Retrieved 10th of November 2015

Australian Bureau of Statistics (2014) Australian National Accounts State Accounts 2012ndash13 Canberra Australia Retrieved 10th of November 2015

Australian Bureau of Statistics (2015) MackaymdashCensus Employment by IndustrymdashTime Series Australian Government Department of Employment Retrieved 10th of November 2015

Australian Government Department for Education and Training (2015) Draft National Strategy for International Education Canberra Australian Capital Territory Retrieved 10th of November 2015

Australian Government (2014) Export income to Australia from international education activity in 2013ndash14 Canberra Australia Retrieved 10th of November 2015

BHP Billiton (2013) Coal Briefing httpwwwbhpbillitoncom~mediabhpdocumentsinvestorsreports2013130529_coalbriefingpdf Retrieved 10th of November 2015

Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

Beyond Zero Emissions (2012) Laggard to Leader How Australia Can Lead the World to Zero Carbon Prosperity Melbourne University Melbourne Victoria Retrieved 10th of November 2015

Beyond Zero Emissions (2014) A Fossil Economy in a Changing World Melbourne University Melbourne Victoria httpmediabzeorgaufossileconomyFossilEconomypdf Retrieved 10th of November 2015

Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

One Million Climate Job Campaign (2015) About London United Kingdom httpclimatejobsorgzaabout Retrieved 10th of November 2015

Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 15: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

JOBS AFTER COAL A Just Transition for Queensland | 5

level Most recently the industryrsquos employment claims were revealed again in the Australian Land Court

case regarding coal mining development by Indian mining company Adani in the Galilee Basin to have been

exaggerated (Cox 2015) Adanirsquos mine proposal cited the figure of 10000 jobs attached to its development

application but the court was told by Adanirsquos own expert witness that the mine development would only

create 1464 actual jobs throughout the ongoing operation of the mine (Branco 2015)

According to research by The Australia Institute a majority of Queenslanders believe that the mining industry

employs ten times the amount of people it actually does (Campbell 2014) In reality the report shows that

the coal industry only employs 12 of the Queensland workforce (Vorrath 2014) What is significant is how

this employee population is regionally distributed with a majority of the employees residing in the Central

Highlands Isaac and Mackay Regional Council areas (Figure 4)

0

5000

10000

15000

20000

25000

30000

Whitsu

nday

Suns

hine C

oast

Banan

a

Rockh

ampt

on

Brisba

ne

Cent

ral H

ighlan

dsIsa

ac

Macka

yTo

tal

Em

ploy

men

t

Figure 4 Coal jobs by Local Government Area (LGA) in Queensland Top 8Source ABS 2011 Census Coal mining jobs by region in Queensland

SummaryThe coal industry plays a significant role in the Queensland economy but it is by no means irreplaceable As

the next section will show the coal industry has fallen from the lofty heights of its unprecedented profitability

and aggressive hunger for expansion It has come to a slower pace but due to the forecasted change expected

to affect the industry a new approach to planning local economies beyond coal is required

6 | JOBS AFTER COAL A Just Transition for Queensland

2 The drivers of change in the coal industry

Drivers of change The global energy market is in a period of dynamic long-term structural change that will have ongoing

repercussions for energy exporting countries such as Australia Over the last ten years the expansion in gas

the decrease in renewable energy prices the increasing of capital infrastructure costs the demand for cleaner

energy and energy efficiency have all dramatically changed the nature of the global energy economy (Ben

Caldecott 2014)

Coal has been the energy source that has made so many technological advancements through history possible

Although there has been many struggles and social costs along the way The communities workers and

companies that made this progress possible have substantially contributed to the creation of the modern world

Though if there is one thing we know from history it is that empires rise and fall The coal empire is crumbling

As it crumbles it is creating unnecessary instability stress and hardship on communities In communities like

Mackay where income has dropped by 30ndash40 as many other small mining towns people and businesses have

been caught culturally and economically unprepared for this economic shift (Bleby 2013)

Windmill and wind farm

JOBS AFTER COAL A Just Transition for Queensland | 7

2 The drivers of change in the coal industry

Drivers of change The global energy market is in a period of dynamic long-term structural change that will have ongoing

repercussions for energy exporting countries such as Australia Over the last ten years the expansion in gas

the decrease in renewable energy prices the increasing of capital infrastructure costs the demand for cleaner

energy and energy efficiency have all dramatically changed the nature of the global energy economy (Ben

Caldecott 2014)

Coal has been the energy source that has made so many technological advancements through history possible

Although there has been many struggles and social costs along the way The communities workers and

companies that made this progress possible have substantially contributed to the creation of the modern world

Though if there is one thing we know from history it is that empires rise and fall The coal empire is crumbling

As it crumbles it is creating unnecessary instability stress and hardship on communities In communities like

Mackay where income has dropped by 30ndash40 as many other small mining towns people and businesses have

been caught culturally and economically unprepared for this economic shift (Bleby 2013)

It is clear that coal thermal coal especially is no longer good for humanity despite our former Prime Minister

Tony Abbottrsquos fervent belief that it is (Online 2014) WA Premier Colin Barnett heralded last year in his

declaration that coal is in lsquostructural declinersquo (Burrell 2014) He was not wrong In the past 5 years alone the

Dow Jones Total Coal Market index has fallen by 76 (Baker 2014)

The reality is that the world is rapidly shifting away from fossil fuels including countries that are key

importers of Australiarsquos coal and gas China India Japan and South Korea import over 80 of Australiarsquos

export market for coal and gas The reality is that these countries have recently either announced policies to

shift away from these fuels andor initiatives to drastically enhance renewable energy and energy efficiency

(ldquoPolitics of Climate Change in Asiardquo 2015)

The following section of the report analyses the risk of Australia not being prepared economically for changes

that are already taking place As a country and a state our governing political parties continue to pursue

a strategy that assumes our short and long term economic prosperity is dependent on mining Few of our

political leaders are attempting to communicate an economic vision free from the inevitable boom-bust cycles

created by extracting emissions-intensive resources It is also a strategy that assumes energy production and

distribution will continue on as a very centralised process rather than following the great trend of networked

and decentralised distribution that is shaping the 21st century (Riftkin 2015) This strategy is short-sighted

given recent announcements by China and India to phase out fossil fuels and move rapidly towards cleaner

and more distributed energy sources (Rohr 2014)

The international coal priceThe majority of Queenslandrsquos export coal mining industry is dependent on demand for steel making from

the worldrsquos coking or metallurgical coal market This is a market that has been severely impacted by a

combination of actions in China the biggest steel manufacturer in the world Primarily Chinarsquos housing

boom has been slowing down over recent years this in turn has massively reduced the need for steel Most

importantly China is also running a ldquowar on pollutionrdquo that is having direct short- and long-term impacts on

the viability of the coal industry as a whole This has resulted in a campaign of state enforced closures of coal

plants and steel mills especially near the countryrsquos big industrial coastal cities (Ng 2015)

Prices on the international coking coal stock market have plummeted from the all time high of US$330

tonne in late 2011 to a sobering low of US$109tonne in the first quarter of 2015 The outlook still remains

gloomy for the coal sector

With the continued slowdown in the global and Chinese economies the price of iron ore has also collapsed

Prices have dropped by one third in the first quarter of 2015 alone causing at least one Australian mine to

close operations and many others to cancel plans for expansions (Sandersen 2015) Iron ore is closely linked

to the sales of coking coal which is used most commonly to melt iron ore into steel

8 | JOBS AFTER COAL A Just Transition for Queensland

20

14

US

$t

0

100

200

300

400

2005 2007high quality high coking semi-soft coking

2009 2011 2013 2015

Figure 5 Coking Coal Prices 2005ndash2015 (worldcoalcom)

A similar price drop has hit thermal coal used in coal-fired power stations Thermal coal is mined in many

Surat Basin mines and is also found in some Bowen Basin mines where it is an addition to the high quality

coking coal found in the area Significantly the proposed mining development in the Galilee Basin is only

for thermal coal which at a time when coal-fired power stations are being replaced by cleaner options is

alarming (Pacific 2012) Thermal coal was priced at US$120tonne in late 2011 It had plunged to US$73

per tonne by February 2015 and has remained below US$60tonne since May 2015 Chinarsquos new rules of

cutting ash and sulphur content in seaborne coal imports along with increasing tariffs on coal imports has

meant that even Shenhua Chinarsquos biggest coal company cut coal imports in early 2015 (Jenda 2015)

Overall Chinese consumption dipped by 16 in 2014 despite their economic growth of 73

The decade of relentless and largely unplanned investment in Queensland coal mining in times of high prices

led to a massive oversupply against a background of decreasing demand The state and federal governments

failed to slow the industry down so that it did not overshoot an economically sustainable size This has made

the challenge of transitioning out of the industry even harder along with magnifying the pain now faced by

many mining towns (Neubauer 2015) All of this leaves a million-dollar question Is the downshift in [coal]

demand terminal According to Richard Gibbs from the Macquarie Bank it certainly is (Neubauer 2015)

The global coal market is also experiencing competition from renewables and shale gas slow growth and

government policies which are in part driven by the threat of climate change

The growing competition from renewable energy sources has been increasing its impact on the coal industry

by slowly but steadily eroding profits of domestic coal power stationsmdashand thus demand for coalmdashacross the

country (Hewson 2015) In Queensland the state government should be applauded for its 50 renewable

energy target by 2030 which will further add strain to struggling coal power generators (Parkinson 2015)

A more than 50 decline in coal prices has seen most listed coal companies globally to lose 80ndash90 of their

equity market value in the last four years (Buckley 2014) In 2014 the world added more energy generation

capacity from wind power than from coal Overall Europe and America have already cut coal-fired generation

JOBS AFTER COAL A Just Transition for Queensland | 9

capacity by over a fifth in a decade The sun will undoubtedly rise even further for renewable energy in 2015

but for coal there remains a lot further to fallrdquo said a report by the Institute for Energy Economics and

Financial Analysis in January 2015 (Buckley 2015a)

This statement is borne out by the facts

bull In 2014 new global wind installations grew 40 to 46GW led by China and America (Buckley

2015b)

bull In 2014 the US solar installation sector created almost 50 more jobs than the oil and gas pipeline

construction industry (Foundation 2015)

bull From 2000 to 2011 global annual growth in the yearly global installation rate of photovoltaic solar

panels was 40 In 2011 the total amount of global PV capacity installed was 27GW an astonishing

60 growth on 2010 levels (Green 2012)

bull Unsubsidised renewable energy is now cheaper than new coal-fired power in Australia (Paton 2013)

Solar installation

10 | JOBS AFTER COAL A Just Transition for Queensland

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

Coal power station

JOBS AFTER COAL A Just Transition for Queensland | 11

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

The outlook for coal pricesWhile some consider the outlook for coal prices as cyclical in nature and that a turnaround will increases

prices for coal other analysts believe this downward trend based on policies health impacts and concern

about global warming is here to stay

Financial reports from the major mining companies in Australia paint a grim outlook for global metallurgical

coal prices China was once the great hope for coking coal exporters but BHP Billitonrsquos metallurgical coal

market outlook (May 2013) indicated a flattening demand into the future (Billiton 2013 Rohr 2014)

BHP Billiton has warned that the increased usage of scrap metal in furnaces would result in lower growth in

demand for pig iron while greater production from electric arc furnacesmdashwhich use little or no coking coalmdash

are expected to ldquocontribute a significant share of total Chinese steel production by 2030rdquo Although coking

coal will likely remain necessary for steel production for some time as renewable energy sources grow the

efficiency and lower emissions intensity of electric arc furnaces will help them to outcompete coking coal in

the not too distant future Some experts even predict another technology called lsquodirect reduced ironrsquo that uses

gas to make steel could make coking coal redundant within a decade (Macleod 2013)

It is not just China BHP Billiton also cautions that the Indian steel outlook is less certain as steel production

growth has been slower than expected Prices for commodities from iron ore to coal are sinking as Chinarsquos

leadership tries to steer the economy away from debt-fueled property investment and smokestack industries

embracing services and domestic-led consumption At the same time President Xi Jinping is stepping up efforts

to combat pollution The provincial government of Beijing and a number of other major cities have made plans to

ban coal use by 2020 further putting the squeeze on all types of heavy industry (Coulter 2015)

However the outlook is not all dismal for coal everywhere In India demand is expected to continue to rise

without peaking until the 2030s Indiarsquos government predicts a 19 rise in coal imports this year which

may offer very short-term opportunities for Australian miners The opportunities are short term because these

import increases are something the Indian government has indicated it does not want continued into the

future Indiarsquos plan is to ramp up renewable energy technology as well as develop their untapped coal fields

to support a gradual phase out of thermal-coal imports within the next 2ndash3 years (Baker 2014) Regardless

the Indian mining giant Adani still hopes it can get coal from its proposed Carmichael mine in the Galilee

Basin and export it to India for the duration of its 60 year life span After a number of international banks

have ruled out funding for the Carmichael coal mine Adani has been looking for cash handouts from the

Australian Government to fund its shaky proposal However sanity has prevailed and these have been ruled

out by the new Prime Minister (Edis 2015) It is clear the Indian governmentrsquos plan for Indiarsquos future coal

supply sources does not involve Australian coal

12 | JOBS AFTER COAL A Just Transition for Queensland

This is the marketplace in which Australiarsquos exported coal competes and this is the marketplace that holds the

livelihoods of workers and communities in its hands The current state and future outlook of the coal industry

suggests that it would be risky not to scale down the thermal coal industry and at least restrict any new mine

expansions in the coking coal sector There are those who remain positive about the industryrsquos future but

recent events in the coal industry and uncertainty over medium and long term suggest that there are better

industries to back Behind these diverse risks threatening the coal industry is the inescapable scientific

fact that we cannot afford to burn any more coal from new coal mines if we want to decrease the risk of our

already fifty fifty chance of avoiding the worst impacts of global warming (IPCC 2013) If we wanted to try

and remove the total risk of runaway climate change we could not even afford to burn the coal that are sitting

in trucks on trains at port yards and in ships Not even the coal travelling on conveyors into power station

furnaces about to be burnt right this very moment

The carbon bubbleFrom the South Sea Bubble as well as the housing and dotcom bubbles of the last decade periodic over-

investment has been made into sectors deemed too important to fail The rush and hubris of investors seeking

incomparable profits to finance such industries has led to speculative bubbles of over-estimated value that

eventually burst In the economic fallout that results working people carry the burden while the speculators

and profiteers generally are not held accountable Another speculative bubble has formed and it dwarfs the

size of all of the bubbles that have come before it It is called the Carbon Bubble (Tracker 2015)

One of the few things world leaders agreed upon at the Copenhagen climate talks was that the Earth needs to

stay below 2degC warming to minimize the risk of runaway climate change

bull If we are to avoid going over 2degC we can emit only 565 more gigatonnes of carbon dioxide (IPCC 2007)

bull Burning the fossil fuel that corporations now have in their reserves would result in emitting 2795

gigatonnes of carbon dioxidemdashfive times the safe amount (Leaton 2013)

The Intergovernmental Panel on Climate Change has now produced its own carbon budget They have calculated

that if we continue pumping carbon into the atmosphere at todayrsquos rate this budget will be exhausted within

15ndash25 years (IPCC 2013) This means there will be growing political pressure on the fossil fuel industry to

keep most of its reserves in the ground That pressure has already begun around the world Citizens are pressing

their superannuation funds councils banks universities and other institutions to divest from fossil fuels with

growing success The year 2013 saw several major financial institutions recognise the financial and ethical

implications of continuing to finance fossil fuels with Norwegian Storebrand Rabobank and the World Bank

among those who made major announcements on divestment or cutting loans In 2014 major institutions

including Stanford University the Australian National University and Oxford University have divested their fossil

fuel funds (Advisors 2015) So far in 2015 local councils in Australia such as Moreland Newcastle Byron Bay

Melbourne and many more have also divested (Ryan 2015) Divestment is now going mainstream and will have

increasing impacts on fossil fuel company shares into the future

JOBS AFTER COAL A Just Transition for Queensland | 13

As a result of the momentum of the global divestment movement international stock exchanges are creating

new indexes to exclude fossil fuels in preparation of the impending seismic shift in global finances In late

April 2014 the worldrsquos largest fund manager Blackrock joined with the FTSE Group in London to create

a new index The ex-Fossil Fuels Index Series is an innovative set of benchmark indices that excludes

companies directly engaged in extracting so-called ldquostranded assetsrdquo in the hydrocarbons industry ldquoThis

is one of the fastest-moving debates I think Irsquove seen in my 30 years in marketsrdquo FTSE managing director

Kevin Bourne told the Financial Times (Clarke 2014) The Bank of England is now investigating its exposure

to risk from its fossil fuel investments To top that off the worldrsquos biggest sovereign wealth investment fund in

Norway has recently dumped coal investments (Carrington 2015) The largest contribution to climate change

from the fossil fuels in company inventories at present is from coal Because it has the largest climate impact

per unit of useful energy it is being targeted for early phase out

The book value of fossil fuel companies is determined not only by their current infrastructure and deposits

undergoing extraction but also by the size of their legally claimed reserves Because the book value of so

many companies has greatly exceeded their realisable value as emissions restrictions come into place a

speculative bubble has formed Unfortunately bubbles usually burst in the end leaving behind stranded

assets and stranded capitalmdashand leaving workers in the lurch The only alternative is a mature and planned

phase out of the industry that slowly devalues and deregisters fossil fuel reserves at a pace that does not lead

to financial crisis A planned phase out that gives time for just employment transitions for fossil fuel

communities

500

1000886

565

1500

2000

2500

3000

already burnt

remaining

2000ndash2050

2011ndash2050

Coal 2˚Global carbon

budget

Oil

Gas

GtC

O2

Global fossil fuel reserves

Figure 6 Carbontracker 2012 report The Carbon Bubble

14 | JOBS AFTER COAL A Just Transition for Queensland

In 2013 the report Unburnable Carbon highlighted that ldquoCompany valuation and credit ratings

methodologies do not typically inform investors about their exposure to these stranded assetsrdquo (Leaton

2013) This is very troubling when considering that the supporting share value of these reserves was $4

trillion in 2012 and that they serviced $127 trillion in outstanding corporate debt over the same period We

need to challenge these methodologies (Tracker 2015) In a move that signals a step towards the solutions

required the World Bank the European Investment Bank and the US Export-Import Bank have all announced

that they will not fund further coal-fired power plants except in exceptional circumstances As changes in

policy by the major coal consumers the uptake of renewables and the need to stay within the global carbon

budget begin to bite it is high-cost producers who will be squeezed first Australia is considered a high-cost

producer because of our strong industrial relations and wage laws which makes it all the more necessary that

our governments are vigilant and prepared for impending macroeconomic change (Cleary 2015)

SummaryThis is the environment in which the Australian coal industry finds itself Internationally coal is no longer

looking like a safe long-term investment within the context of the rapid changes afoot in the world The coal

industry leaders are either in denial about their industryrsquos future or are determined to squeeze as much profit

as possible until the cost gets worn by workers and their communities (Saunders 2015)

The issues of climate change demands for cleaner air and more efficient new technologies The realities of

the market are revealing coal as the sunset industry it really is This is not an industry Queenslanders can

rely on to create a stable resilient and sustainable economy It cannot be relied upon for future wealth

and future jobs We have been warned by the UN Climate Change Secretariatrsquos Executive Secretary that the

diversification and a managed transition away from coal is what we need to do and we need to heed this

warning (Australian 2015)

JOBS AFTER COAL A Just Transition for Queensland | 15

3 Assessing some of the economic opportunities in mining regions

IntroductionThe great state of Queensland is endowed with sustainable human and environmental resources that have the

potential if we choose to harness it to drive a balanced diverse and resilient economy for generations to

come Diversifying Queenslandrsquos economy to create sensible and stable prosperity beyond the boom and bust

vagaries of the mining industry must be a key objective of the Queensland Government The Newman LNP

Governmentrsquos Queensland Plan headline was lsquoforging diversity and prosperityrsquo (Government 2014) But

throughout Newmanrsquos reign as premier no action was taken Under the new Palaszczuk Labor Government

there has been some effort to support economic diversification across the state This is insufficient because as

of yet nothing has been done to adequately fund facilitate and empower the actual communities where

mining takes place The grassroots Labour Environmental Action Network an organisation within the

Australian Labour Party has called for change At the 2015 Queensland ALP State Conference they put

forward a motion that was passed calling on the state government to prepare a just transition policy before the

next conference (ALP 2015)

Grain harvest

16 | JOBS AFTER COAL A Just Transition for Queensland

Most importantly both major parties have continued their relentless support for further coal mine expansions

that inherently suffocate the process of diversification

With the coal industry forecast to be in a lsquostructural declinersquo by political leaders and bankers alike it is now

essential that the focus for economic development be on industries that can bring sustainable prosperity to

Queensland (Burrell 2014 Robins 2014) In the United Kingdom under Prime Minister Thatcher the world

witnessed the consequences of industries closing without planning and without investment to transition local

communities and industries

The following section of the report outlines how the opportunities for sustainable economic development

are already known Queensland has well-established sectors with bountiful potential in agriculture tourism

manufacturing and education It also has the opportunity to capitalise on a boom in renewable energy and

bio-industrial products to create more sustainable economic sectors These industries are ready to fill the

void that will be and is being left by coal however they lack the support needed to ensure their presence in

mining communities to provide a just transition away from coal where it is most needed

Agriculture and aquacultureCurrently the Queensland agricultural sector is worth near $147 billion and employs over 90000 people

(Queensland Government 2012) The sector has the potential to massively expand its food exports to Asia as

population and economic growth continue to surge in the dynamic economic region Through the competitive

advantage of our proximity to Asia and high-quality produce capabilities agricultural products have become

Queenslandrsquos second largest export earner and have the potential for continued growth (Heath 2014) By

increasing availability of farming technology driving productivity minimising costs and focusing on profitable

premium produce markets the Queensland Agricultural Strategy (2012) aims to double the total value of

production for all agricultural commodities by 2040 With innovative new farming approaches and ecosystem

system management strategies such increases in production are possible in a way which sustainably manages

and regenerates the land

To reduce pressure on fish stocks from home and abroad the promotion of aquaculture could be further

encouraged across the state This industry is worth $10 Million a year (Lucas DLGP 2011) At present

there are several sites located along the coast however research conducted over the last decade has

identified future sites for land based aquaculture Industry consultation aquaculture management training

programs and related issues in developing a workforce need to be considered (Plan 2012) The Queensland

Aquaculture Industry Federation sees the need for continued collaboration between government and other

stakeholders in order for this industry to reach itsrsquo potential as a strong core industry (Federation 2015)

The Department of Employment Economic Development and Innovation is leading the government drive to

JOBS AFTER COAL A Just Transition for Queensland | 17

develop the aquaculture industry This could see a future where aquaculture goes further than just meeting

domestic demand and grow to cater for high value export markets (Lucas DLGP 2011)

New opportunities in animal genetics aquaculture horticulture and bio-processing are driving agriculture

and aquaculture sector growth in new directions Both industries are about creating intergenerational

economic sustainability Choosing these industries that have unlimited potential to sustain our communities

and our ecosystems over mining is choosing long-term jobs over short-term jobs that cannot be passed on to

the next generation The bottom line is that we live in a hungry world and Queensland is well placed to be a

reliable and sustainable source of food to other nations without the agricultural potential we are endowed with

(Government 2014)

Tourism and recreational fishingDespite setbacks due to the high Australian dollar and loss of skilled workers to the mining boom the

tourism industry is still a critical part of the Queensland economy with massive future potential (Dr Tien Duc

Pham 2015) The tourism industry made a significant employment contribution providing 124000 jobs in

2010ndash11 with steady growth in international visitor nights (Deloitte Access Economics 2012) Queensland

has the potential to become a global leader in tourism and ecotourism and by doing so to create more

jobs and revenue (Government 2014) This will be possible similarly as in agriculture by promoting the

experiences available in our natural places and the quality hospitality we can provide to the growing Asian

middle class (Wilson 2013) The Chinese tourism market is seeking clean fresh and new experiences that

Queensland can cater to and is expected to be worth $74 billion by 2020 (Guterres 2014) Significant to

Queenslandrsquos potential in tourism is our ability to expand the tourism industry in the authentically Australian

rural and stunningly beautiful coastal mining communities where new economic activities are most needed

Further mining expansion in such places threatens to do to tourism what the growth in heavy industry did to

Gladstonersquos economic diversity where fishing and tourism are now non-existent

Although sustainably managed fisheries have the potential to provide continued economic prosperity to

Queensland there lies a major opportunity in net free fisheries to develop as tourism industries specifically

in coal mining regions A great recent example of this taking place is the newly established Net Free Zone

between from the Northern end of St Helens beach to Cape Hillsborough (Spelitis 2015) Along with three

other net free zones across the state the extent of the cumulative commercial opportunities for sustainable

tourism the net free zones have created has made it one of the three pillars as part of the 2020 vision for the

Queensland has the opportunity to develop an abundant and resilient agricultural industry that supports the transition to sustainable prosperity

18 | JOBS AFTER COAL A Just Transition for Queensland

Queensland Tourism Industry Council (Council 2015) The Mackay Isaac and Whitsunday (MIW) coal mining

region has excellent accessibility to a variety of fishing pursuits In addition to the new net free zone ther are

five fresh water stocked impoundment fisheries creating opportunities to promote lake beach offshore and

deepwater angling Improvement of accommodation facilities quality of jetties access roads and coordinating

fish trails with regional events could maximise visitation from recreational and tourism markets (Mackay

Tourism Tourism Queensland 2012) Charter fishing operatiors tackle stores campsites motels boat sales

boat building and maintenance all have the opportunity of benefitted from growth from the recreational fishing

tourism industry (Lucas DLGP 2012)

Higher educationOver the past decade millions of international students have visited Queensland for our quality tertiary

institutions and enjoyable lifestyle International education is Queenslandrsquos biggest service export with

nearly $2431 million being generated in 2013ndash14 alone (Australian Government 2014) The majority

of Queensland is strategically located in the latitudinal tropical zone where at a global level more than

50 of the worldrsquos population is forecasted to live by 2050 (Australian Government 2015) This makes

Queenslandrsquos universities well placed to develop the partnerships and research innovations tailored to the

challenges and opportunities of the new tropically-oriented world This will help Queensland and especially

North Queensland to attract increasing levels of international students to be part of our high-quality tropical

research institutions These students will increase spending through tourism support the creation of our own

skilled and globally connected workforce and connect Australia to business networks and opportunities across

the world In 2013ndash14 the Cairns region benefitted to the tune of $1375 million from international students

(McGuiggan 2014) With the right policies these benefits already being experienced primarily in Cairns

Townsville and Brisbane can be spread further across Queensland to make international education a strong

economic driver in transitioning mining communities

Bio-industrial productsAs the world moves away from fossil fuels the demand for cleaner more sustainable fuel sources will grow

(Emissions 2014) By using excess organic matter produced through food production to develop bio-industrial

products Queensland has the potential to export clean and sustainable fuels and bio-plastic materials to the

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Tourism is about experiences not extraction It has the potential to share Queensland beauty with the rest of the world and create sustainable local economies in the process

Queenslandrsquos greatest resource is the minds of its people We can share and co-create our innovations and learning with students from all over the world who want to make Queensland the launch pad for their careers

JOBS AFTER COAL A Just Transition for Queensland | 19

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Sorghum fields

20 | JOBS AFTER COAL A Just Transition for Queensland

Queensland is well placed to develop biofuel products from waste and oil crops such as Pongamia and algae

in addition to using the statersquos advanced sugarcane industry to convert excess cane using efficient cellulosic

processes Recent scientific developments in bio-plastics at the University of Queensland show that as a

state Queensland has the skills and ability to build a bio-industrial products industry that can contribute to a

sustainable economic future (Queensland 2015)

Renewable energyQueensland the sunshine state has enormous potential to generate electricity from the sun wind and waves

in addition to many other abundant renewable energy sources (Green 2012) Renewable energy has for a long

time been the catch cry from environmentalists as the complete solution to creating the jobs necessary to

replace the fossil fuel industry This report has been written partially to show recognition that as much as

renewable energy has the potential to create more jobs and replace fossil fuel domestic energy production it

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Gemasolar solar thermal power station Spain

JOBS AFTER COAL A Just Transition for Queensland | 21

cannot completely replace all of the coal

export industry jobs Numerous studies

show that with strong climate policies

over 7100 jobs can be created in

Queensland through renewable energy

by 2030 (Institute 2011) Thousands of

these jobs will be in regional

Queensland These should be prioritised

for regions where the mining industry

has developed rural communities in

need of new economic opportunities Far

North Queensland is especially suited to

further renewable energy investment

because of its climatic conditions and

because of the expensive transmissions

losses from having energy wired from

southern power sources (Allen 2011)

This makes it essential that government

policy ensures that the fair share of the

$35 billion in potential renewable

energy investment goes to rural mining

communities not only where it is most

needed economically but where it

makes the most business sense

(Department of Employment 2009)

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Queensland has the potential to become a smart sunshine state powered by clean and sustainable renewable energy By doing this we will be creating jobs in rural mining communities where they are needed most and building a foundation for a new sustainable economy

22 | JOBS AFTER COAL A Just Transition for Queensland

4 Community transitions Global case studies

There are communities around the worldwhich have reinvented themselves after the end of coal mining and

developed prosperous economies in doing so It has been a struggle but where there is a level of government

support inspired local leadership and the community is working together to regenerate its economy it has

been possible (Coal 2015) We are not suggesting any of these examples can be directly transferred to

Queensland communities facing the end of coal mining The object of these case studies is not to provide a

blueprint for Mackay Gladstone Rockhampton or mining towns in Central Queensland but to show the

diversity of ideas that have worked in other places that might stimulate our local communities to reinvent

themselves too

Hazelwood coal power station La Trobe Valley Vic

JOBS AFTER COAL A Just Transition for Queensland | 23

La Trobe ValleyIn the brown coal producing region of the La Trobe Valley in Victoria a grassroots transitionary force has been

underway for the past fifteen years Earthworker was set up by union and climate change activists seeking a

real alternative to coal and privately owned business models Earthworker Cooperativersquos mission is to create

jobs that respond to the lsquochallenges of climate change and the need for local job creation by facilitating the

establishment of worker-owned cooperatives hellip in sustainability-focused industriesrsquo (Earthworker 2015)

Their current focus is the establishment of a cooperative producing solar hot water systems in partnership

with an existing business called lsquoEverlast Hydro Systemsrsquo Their goal is to take production to Morwell in the

La Trobe Valley where workers are in need of an alternative to the coal industry The unique cooperative model

has made selling arrangement possible through inserting the option to buy a solar hot water system through

enterprise bargaining agreements

BanwenThe DOVE workshop in Banwen South Wales (Dove 2015) was started by agroup of women who during

the 1984ndash85 coal minersrsquo strike decided that community-based education was the most practical path to

regenerate the local economy Setting up shop in an abandoned mine office they developed a series of adult

education workshops for women Three decades later the DOVE building hosts a diverse set of small-scale

entrepreneurs including a daycare a library a community garden and a cafeacute featuring local foods

OrkneyOrkney like Central Queensland is a relatively isolated place with a scattered population Situated at the

top of Scotland two hours from the mainland by ferry Orcadians like Central Queenslanders often feel

like spectators to what goes on in the rest of their country They also feel vulnerable to central government

decisions and are often irritated by the lack of understanding of island life on the part of distant authoritiesmdash

its particular customs dialect and ways of doing things Since Norse times Orkney islanders burned peat (a

very young form of coal) as their primary fuel source but all the peat has been dug up This traditional way

of life where each farming family had its own peat bank and spent long summer days cutting and drying

peats while sharing picnics as children played is gone Another non-renewable energy source North Sea oil

discovered in the 1970s brought positive and negatives for the island It turned the tide of depopulation but

like the peat banks the oil is depleting and another lsquoend of an erarsquo is approaching Orcadians have woken up

to the fact that they canrsquot continue to hark back to the past and are confronting the issues of a future without

fossil fuels

Over the last three decades European community funding has helped Orkney to equip itself for the green

energy revolution Orkney now plays a global role in the evolution of wave and tidal technologies and

significant research and development work is creating new employment opportunities A high school in

Stromness was converted into the European Marine Energy Centre and is now a world leader providing

developers the opportunity to test full-scale prototypes in the sea The worldrsquos largest single-rotor tidal turbine

24 | JOBS AFTER COAL A Just Transition for Queensland

was the first in Scotland to be connected to the national grid from this centre Marine energy combined with

an expansion of wind turbines means that the island is now self-sufficient in electricity These renewable

energy developments have created jobs in the Orkneys in civil works and erection grid connection and

communications (Stuart 2011)

Investment in renewable energy and its associated RampD has attracted people to live work and study on the

island Islanders used to have to leave to get tertiary education but it is now possible to study for an MSc in

renewable energy at a Heriot Watt University campus in Stromness A new generation of Orcadians have grown

up to see renewable energy as the way of the future something quite ldquonormalrdquo which will provide greater

opportunities for their children to stay on the island with genuine prospects for employment in meaningful

jobs requiring a wide range of skills and qualifications This shows what a community in transition to a low

carbon future can look like

Nord-Pas De CalaisUntil 1986 the north-east region of France Nord-pas de Calais was a major coal mining area It still boasts

huge twin tailings mountains the largest in Europe which have become a tourist attraction It is known

to Australians for the war cemeteries associated with the battle of the Somme in WW1 but it has recently

undergone a remarkable transformation towards a truly sustainable economy Old coal mines at Lens have

been transformed into an art gallery displaying works from the Louvre collection in Paris Hundreds of people

are trained in energy efficiency solar energy and green architecture at a new training centre in nearby Loos-

en-Gohelle

The Chamber of Commerce invited economist and social visionary Jeremy Rifkin of the TIR Consulting

Group and his chief economist Skip Laitner to apply their model of the third industrial revolution to the

district (Riftkin 2015) Rifkinrsquos Third Industrial Revolution combines renewable energy energy efficiency

and the connectivity of the internet Buildings are energy generators and hydrogen is used as energy storage

After working with the community for some time the Master Plan was published in 2013 and envisages

that 100000 new jobs can be created by the transition plan (LLC 2013) Certainly the population has not

declined since mining days and has even slightly increased Inspired local leadership was the key in this

community plus some outside funding to help with the underpinning research

Appalachia (Kentucky)The transition process is just starting here but the community is very organised Kentuckians For The

Commonwealth has been battling the negative effects of coal mining for some decades and is now planning a

transition to ldquobuilding a better future beyond coalrdquo (Commonwealth 2015) Last year they held a conference

in Harlan Kentucky right in the middle of the Appalachian coal fields and invited guests from other US

regions in the same position as well as from Wales It is too soon to see what the outcome of their learning

process will be but they are another example of a community taking its future into its own handsmdashoptimistic

that there is a better future after coal

JOBS AFTER COAL A Just Transition for Queensland | 25

5 A just transition for coal mining communities policy recommendations

The opportunities to transition from unsustainable coal mining to prosperous communities with decent

employment will not just materialise by themselves It will need the political will and the right incentives to

ensure that communities are not left fending for themselves with unemployment increasing and families

in need of long-term welfare But not only is the political will not currently there both major political

parties continue to support the expansion of this sunset industry and by doing so are making the transition

challenges progressively more difficult (Denniss 2012) For too many years governments have uncritically

supported the coal mining sector Entire government departments have been focused on facilitating mining

with tax incentives weakening assessment and approval processes along with providing through tax payer

money established industrial infrastructure to support new projects Government policy often seeks to grow

royalties income by supporting the extraction of as much coal as possible as an escape the challenge of

finding other ways to increase state revenue New sustainable industries in coal communities will need just as

much if not more support while it gets started

We propose that communities local businesses workers unions community groups environment groups

local government and state and federal governments all need to be involved in planning a transition to

alternative forms of economic development and providing new jobs We call this a Just Transition (Anthea

Bill amp Evans1 2008 Brecher 2012) Just Transition is a framework for a fair and sustainable shift to a low

carbon economy proposed by trade unions and supported by environmental NGOs A Just Transition holds

that a shift to a lower carbon economy is vital to avoid dangerous climate change

Bimblebox Nature Refuge

26 | JOBS AFTER COAL A Just Transition for Queensland

Tough targets to cut greenhouse pollution supported by new environmental regulations and emerging carbon

markets will transform the global economy over the next decade These shifts will have major implications

for working people in energy supply industry and transport and for everyone as consumers There is a concern

that significant periods of economic restructuring in the past have often happened in a chaotic fashion

leaving ordinary workers along with their families and communities to bear the brunt of the transition to

new ways of producing wealth A just transition seeks to prevent such injustice becoming a feature of this

transition suggesting that it would not only be morally wrong and socially damaging but would undermine the

credibility of the transition itself and could slow or even halt the changes that must be made

It is through the challenges of communicating the urgency of climate change and other social and

environmental impacts that much of the debate about coal and its consequences for land water and the

climate has become unnecessarily adversarial and polarised Coal mining and power generation communities

deserve acknowledgement and appreciation for all that they have historically and currently contributed to

our country and our economy In communicating the economic shifts that are taking place and facilitating

the necessary transitions the Australian community needs to be respectful of the history and identity of coal

communities Environment groups government unions and the community need to initiate and engage in

the discussions about transitions in an open honest and compassionate manner Only by approaching the

transition in this way can the adversarial nature of the debate be broken down to make way for transformative

mutually respectful and holistic solutions

Whitsundays lsquoHave a Heart for the Reefrsquo

JOBS AFTER COAL A Just Transition for Queensland | 27

A just transition recognises that support for policies are conditional on a fair distribution of the costs and

benefits of those policies across the economy A just transition should also recognise that the creation of

opportunities for active engagement by those affected in determining the future wellbeing of themselves

and their families is essential for the long term empowerment of citizens and communities The following

recommendations have been written with the aim of emphasising such community empowerment as a priority

Recommendations

1) Establishing a unit within the State Government to support coal mining regions to transition to new economies

Specific institutions are needed to develop transition plans They need to have strong government support

and funding regional offices and representation from diverse stakeholders A dedicated unit within the

Department of Infrastructure Local Government and Planning could be established to oversee this work

They could work on the ground in the main coal mining communities to bring government expertise into

regional entities that would develop local plans that involve and empower the whole community This unit

or a connected unit would analyse existing barriers to the creation of competitive advantages for alternative

sustainable industries and would identify actions the State Government can take to support such creation

Any policy and support should come with clear conditions and timeframes These regional entities would

need generous budgets to assist local groups to develop their transition strategies to support research re-

training and the development of new business and community start-up initiatives based on the needs and

strategies of communities The key to communities becoming economically resilient is high levels of autonomy

and freedom in shaping their economic futures Research funding available to the regional entities will be

essential to the empowerment of local leadership Research funding should at least reach the OECD research

funding average and it should prioritise low carbon technologies and industry sectors with increased triple

bottom line sustainability potential

2) Support community leadership in diversifying local economies through the establishment of democratic regional entities

In each mining community a group of traditional and non-traditional community leaders willing to think

beyond lsquoBusiness as Usualrsquo to imagine a better future could be called together to work in collaboration with

and be resourced by the state government managed regional entities mentioned in recommendation one

The leaders would come from diverse backgrounds such as from local governments business associations

unions farming groups renewable energy businesses and educational institutions The objectives of these

leadership groups would be tailored to each community The objectives would in broad terms be to increase

employment in new diverse industries based on sustainable production and publicservice sector job creation

Expert facilitation alongside inclusive and democratic community engagement initiatives would be essential

to ensure the process and environment for creativity and innovation is maximised To develop such groups

it would be necessary to take stock of the existing resources skills and successful businesses on which a

new future can be built In addition an analysis of the social environmental and economic needs of the

28 | JOBS AFTER COAL A Just Transition for Queensland

community would also be beneficial These groups could then establish economic diversification projects

including value-added local production worker controlled co-operative enterprises and new community-

based enterprises that economically empower the local community Activities may also include support for

alternative industries in regard to process restructuring or subsidising the wages of workers displaced from

higher paying traditional industries

3) Support researching and communicating how the just transition can take place

Consistent research is needed on the best options to support the state and national economies to transition

This requires ongoing situational analysis of the global energy market shifts at both government levels In

addition each mining region will need assistance to research the number of jobs that are dependent on coal

the skills of those employed the level of local national and global long- and short-term risk to local mining

operations the transferability of jobs to other industries local opportunities for new enterprises and their

needs and the local educational and training needs and resources A key issue requiring research will be

around how the transitition scenarios differ depending on the level and relativity of thermal and coking coal

industries across coal mining communities The process for sourcing this information at a local and state

government level should be integrated into a policy feedback loop to support cyclical situational analysis and

policy adjustments from all levels of government This research should take place at the state level and be

encouraged at the industry and local level through grants

Mackay Central Queensland

JOBS AFTER COAL A Just Transition for Queensland | 29

4) Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

Many existing Queensland industries including those not highlighted in this report have the potential to

carry Queensland towards a new sustainable economy [sC5]mdashbut they will need support to do so Instead

of continuing to support and lower costs for the coal mining industry we need a plan to grow competitive

advantage across industries that have potential for sustainability and growth in regional mining communities

Along with industry and community organisations the State Government could organise a State Economic

Summit to assess existing industry clusters identify the potential of new and emerging industries consider

their competitiveness and key capabilities and identify barriers to increasing competitive advantage The

findings and recommendations from this Summit could be used to inform the work of the Unit established in

bullet point one above and the research outlined in bullet point two

5) Provide social protection of workers their families and incomes

If mines close suddenly workers need protection for their incomes and social services and possible relocation

even though many miners these days do not live in the communities where they mine Ideally these transition

plans would be developed early enough to ensure that new employment opportunities are in place for them

before mines actually close For many workers this is already too late but if the process begins now there will

be choices available for future retrenched coal workers who live in mining communities and regions Mining

companies could be incentivised andor penalised to give adequate notice to workers and other stakeholders

that closure may be impending and alternative economic opportunities need to be developed

6) Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

Involving the relevant unions in the planning of community transitions can enable them to move towards

becoming more proactive agents helping to plan the transition with critical networks and specific knowledge

about the needs of their members When a coal-fired power station in Washington State USA was scheduled

for closure for environmental reasons unions played a pivotal role persuading environmentalists and others

to delay the closure long enough for a Just Transition to provide different jobs for the workers This made it

possible for the coal resource to be replaced by wind and other renewable generation rather than natural

gasmdasha better environmental outcome and the unions became an active part in the phase out planning

Unions have a heavy workload defending workers rights and pay They need to be supported and financed to

play important roles in community transitions From facilitation and leadership of planning bodies career

planning and advice preferential hiring for displaced workers in the new alternative emerging industries and

leading the establishment of work controlled cooperatives unions have an essential role to play

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

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Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

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Australian Government (2014) Export income to Australia from international education activity in 2013ndash14 Canberra Australia Retrieved 10th of November 2015

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Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

Beyond Zero Emissions (2012) Laggard to Leader How Australia Can Lead the World to Zero Carbon Prosperity Melbourne University Melbourne Victoria Retrieved 10th of November 2015

Beyond Zero Emissions (2014) A Fossil Economy in a Changing World Melbourne University Melbourne Victoria httpmediabzeorgaufossileconomyFossilEconomypdf Retrieved 10th of November 2015

Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

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Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

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Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

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Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

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36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

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Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

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The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 16: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

6 | JOBS AFTER COAL A Just Transition for Queensland

2 The drivers of change in the coal industry

Drivers of change The global energy market is in a period of dynamic long-term structural change that will have ongoing

repercussions for energy exporting countries such as Australia Over the last ten years the expansion in gas

the decrease in renewable energy prices the increasing of capital infrastructure costs the demand for cleaner

energy and energy efficiency have all dramatically changed the nature of the global energy economy (Ben

Caldecott 2014)

Coal has been the energy source that has made so many technological advancements through history possible

Although there has been many struggles and social costs along the way The communities workers and

companies that made this progress possible have substantially contributed to the creation of the modern world

Though if there is one thing we know from history it is that empires rise and fall The coal empire is crumbling

As it crumbles it is creating unnecessary instability stress and hardship on communities In communities like

Mackay where income has dropped by 30ndash40 as many other small mining towns people and businesses have

been caught culturally and economically unprepared for this economic shift (Bleby 2013)

Windmill and wind farm

JOBS AFTER COAL A Just Transition for Queensland | 7

2 The drivers of change in the coal industry

Drivers of change The global energy market is in a period of dynamic long-term structural change that will have ongoing

repercussions for energy exporting countries such as Australia Over the last ten years the expansion in gas

the decrease in renewable energy prices the increasing of capital infrastructure costs the demand for cleaner

energy and energy efficiency have all dramatically changed the nature of the global energy economy (Ben

Caldecott 2014)

Coal has been the energy source that has made so many technological advancements through history possible

Although there has been many struggles and social costs along the way The communities workers and

companies that made this progress possible have substantially contributed to the creation of the modern world

Though if there is one thing we know from history it is that empires rise and fall The coal empire is crumbling

As it crumbles it is creating unnecessary instability stress and hardship on communities In communities like

Mackay where income has dropped by 30ndash40 as many other small mining towns people and businesses have

been caught culturally and economically unprepared for this economic shift (Bleby 2013)

It is clear that coal thermal coal especially is no longer good for humanity despite our former Prime Minister

Tony Abbottrsquos fervent belief that it is (Online 2014) WA Premier Colin Barnett heralded last year in his

declaration that coal is in lsquostructural declinersquo (Burrell 2014) He was not wrong In the past 5 years alone the

Dow Jones Total Coal Market index has fallen by 76 (Baker 2014)

The reality is that the world is rapidly shifting away from fossil fuels including countries that are key

importers of Australiarsquos coal and gas China India Japan and South Korea import over 80 of Australiarsquos

export market for coal and gas The reality is that these countries have recently either announced policies to

shift away from these fuels andor initiatives to drastically enhance renewable energy and energy efficiency

(ldquoPolitics of Climate Change in Asiardquo 2015)

The following section of the report analyses the risk of Australia not being prepared economically for changes

that are already taking place As a country and a state our governing political parties continue to pursue

a strategy that assumes our short and long term economic prosperity is dependent on mining Few of our

political leaders are attempting to communicate an economic vision free from the inevitable boom-bust cycles

created by extracting emissions-intensive resources It is also a strategy that assumes energy production and

distribution will continue on as a very centralised process rather than following the great trend of networked

and decentralised distribution that is shaping the 21st century (Riftkin 2015) This strategy is short-sighted

given recent announcements by China and India to phase out fossil fuels and move rapidly towards cleaner

and more distributed energy sources (Rohr 2014)

The international coal priceThe majority of Queenslandrsquos export coal mining industry is dependent on demand for steel making from

the worldrsquos coking or metallurgical coal market This is a market that has been severely impacted by a

combination of actions in China the biggest steel manufacturer in the world Primarily Chinarsquos housing

boom has been slowing down over recent years this in turn has massively reduced the need for steel Most

importantly China is also running a ldquowar on pollutionrdquo that is having direct short- and long-term impacts on

the viability of the coal industry as a whole This has resulted in a campaign of state enforced closures of coal

plants and steel mills especially near the countryrsquos big industrial coastal cities (Ng 2015)

Prices on the international coking coal stock market have plummeted from the all time high of US$330

tonne in late 2011 to a sobering low of US$109tonne in the first quarter of 2015 The outlook still remains

gloomy for the coal sector

With the continued slowdown in the global and Chinese economies the price of iron ore has also collapsed

Prices have dropped by one third in the first quarter of 2015 alone causing at least one Australian mine to

close operations and many others to cancel plans for expansions (Sandersen 2015) Iron ore is closely linked

to the sales of coking coal which is used most commonly to melt iron ore into steel

8 | JOBS AFTER COAL A Just Transition for Queensland

20

14

US

$t

0

100

200

300

400

2005 2007high quality high coking semi-soft coking

2009 2011 2013 2015

Figure 5 Coking Coal Prices 2005ndash2015 (worldcoalcom)

A similar price drop has hit thermal coal used in coal-fired power stations Thermal coal is mined in many

Surat Basin mines and is also found in some Bowen Basin mines where it is an addition to the high quality

coking coal found in the area Significantly the proposed mining development in the Galilee Basin is only

for thermal coal which at a time when coal-fired power stations are being replaced by cleaner options is

alarming (Pacific 2012) Thermal coal was priced at US$120tonne in late 2011 It had plunged to US$73

per tonne by February 2015 and has remained below US$60tonne since May 2015 Chinarsquos new rules of

cutting ash and sulphur content in seaborne coal imports along with increasing tariffs on coal imports has

meant that even Shenhua Chinarsquos biggest coal company cut coal imports in early 2015 (Jenda 2015)

Overall Chinese consumption dipped by 16 in 2014 despite their economic growth of 73

The decade of relentless and largely unplanned investment in Queensland coal mining in times of high prices

led to a massive oversupply against a background of decreasing demand The state and federal governments

failed to slow the industry down so that it did not overshoot an economically sustainable size This has made

the challenge of transitioning out of the industry even harder along with magnifying the pain now faced by

many mining towns (Neubauer 2015) All of this leaves a million-dollar question Is the downshift in [coal]

demand terminal According to Richard Gibbs from the Macquarie Bank it certainly is (Neubauer 2015)

The global coal market is also experiencing competition from renewables and shale gas slow growth and

government policies which are in part driven by the threat of climate change

The growing competition from renewable energy sources has been increasing its impact on the coal industry

by slowly but steadily eroding profits of domestic coal power stationsmdashand thus demand for coalmdashacross the

country (Hewson 2015) In Queensland the state government should be applauded for its 50 renewable

energy target by 2030 which will further add strain to struggling coal power generators (Parkinson 2015)

A more than 50 decline in coal prices has seen most listed coal companies globally to lose 80ndash90 of their

equity market value in the last four years (Buckley 2014) In 2014 the world added more energy generation

capacity from wind power than from coal Overall Europe and America have already cut coal-fired generation

JOBS AFTER COAL A Just Transition for Queensland | 9

capacity by over a fifth in a decade The sun will undoubtedly rise even further for renewable energy in 2015

but for coal there remains a lot further to fallrdquo said a report by the Institute for Energy Economics and

Financial Analysis in January 2015 (Buckley 2015a)

This statement is borne out by the facts

bull In 2014 new global wind installations grew 40 to 46GW led by China and America (Buckley

2015b)

bull In 2014 the US solar installation sector created almost 50 more jobs than the oil and gas pipeline

construction industry (Foundation 2015)

bull From 2000 to 2011 global annual growth in the yearly global installation rate of photovoltaic solar

panels was 40 In 2011 the total amount of global PV capacity installed was 27GW an astonishing

60 growth on 2010 levels (Green 2012)

bull Unsubsidised renewable energy is now cheaper than new coal-fired power in Australia (Paton 2013)

Solar installation

10 | JOBS AFTER COAL A Just Transition for Queensland

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

Coal power station

JOBS AFTER COAL A Just Transition for Queensland | 11

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

The outlook for coal pricesWhile some consider the outlook for coal prices as cyclical in nature and that a turnaround will increases

prices for coal other analysts believe this downward trend based on policies health impacts and concern

about global warming is here to stay

Financial reports from the major mining companies in Australia paint a grim outlook for global metallurgical

coal prices China was once the great hope for coking coal exporters but BHP Billitonrsquos metallurgical coal

market outlook (May 2013) indicated a flattening demand into the future (Billiton 2013 Rohr 2014)

BHP Billiton has warned that the increased usage of scrap metal in furnaces would result in lower growth in

demand for pig iron while greater production from electric arc furnacesmdashwhich use little or no coking coalmdash

are expected to ldquocontribute a significant share of total Chinese steel production by 2030rdquo Although coking

coal will likely remain necessary for steel production for some time as renewable energy sources grow the

efficiency and lower emissions intensity of electric arc furnaces will help them to outcompete coking coal in

the not too distant future Some experts even predict another technology called lsquodirect reduced ironrsquo that uses

gas to make steel could make coking coal redundant within a decade (Macleod 2013)

It is not just China BHP Billiton also cautions that the Indian steel outlook is less certain as steel production

growth has been slower than expected Prices for commodities from iron ore to coal are sinking as Chinarsquos

leadership tries to steer the economy away from debt-fueled property investment and smokestack industries

embracing services and domestic-led consumption At the same time President Xi Jinping is stepping up efforts

to combat pollution The provincial government of Beijing and a number of other major cities have made plans to

ban coal use by 2020 further putting the squeeze on all types of heavy industry (Coulter 2015)

However the outlook is not all dismal for coal everywhere In India demand is expected to continue to rise

without peaking until the 2030s Indiarsquos government predicts a 19 rise in coal imports this year which

may offer very short-term opportunities for Australian miners The opportunities are short term because these

import increases are something the Indian government has indicated it does not want continued into the

future Indiarsquos plan is to ramp up renewable energy technology as well as develop their untapped coal fields

to support a gradual phase out of thermal-coal imports within the next 2ndash3 years (Baker 2014) Regardless

the Indian mining giant Adani still hopes it can get coal from its proposed Carmichael mine in the Galilee

Basin and export it to India for the duration of its 60 year life span After a number of international banks

have ruled out funding for the Carmichael coal mine Adani has been looking for cash handouts from the

Australian Government to fund its shaky proposal However sanity has prevailed and these have been ruled

out by the new Prime Minister (Edis 2015) It is clear the Indian governmentrsquos plan for Indiarsquos future coal

supply sources does not involve Australian coal

12 | JOBS AFTER COAL A Just Transition for Queensland

This is the marketplace in which Australiarsquos exported coal competes and this is the marketplace that holds the

livelihoods of workers and communities in its hands The current state and future outlook of the coal industry

suggests that it would be risky not to scale down the thermal coal industry and at least restrict any new mine

expansions in the coking coal sector There are those who remain positive about the industryrsquos future but

recent events in the coal industry and uncertainty over medium and long term suggest that there are better

industries to back Behind these diverse risks threatening the coal industry is the inescapable scientific

fact that we cannot afford to burn any more coal from new coal mines if we want to decrease the risk of our

already fifty fifty chance of avoiding the worst impacts of global warming (IPCC 2013) If we wanted to try

and remove the total risk of runaway climate change we could not even afford to burn the coal that are sitting

in trucks on trains at port yards and in ships Not even the coal travelling on conveyors into power station

furnaces about to be burnt right this very moment

The carbon bubbleFrom the South Sea Bubble as well as the housing and dotcom bubbles of the last decade periodic over-

investment has been made into sectors deemed too important to fail The rush and hubris of investors seeking

incomparable profits to finance such industries has led to speculative bubbles of over-estimated value that

eventually burst In the economic fallout that results working people carry the burden while the speculators

and profiteers generally are not held accountable Another speculative bubble has formed and it dwarfs the

size of all of the bubbles that have come before it It is called the Carbon Bubble (Tracker 2015)

One of the few things world leaders agreed upon at the Copenhagen climate talks was that the Earth needs to

stay below 2degC warming to minimize the risk of runaway climate change

bull If we are to avoid going over 2degC we can emit only 565 more gigatonnes of carbon dioxide (IPCC 2007)

bull Burning the fossil fuel that corporations now have in their reserves would result in emitting 2795

gigatonnes of carbon dioxidemdashfive times the safe amount (Leaton 2013)

The Intergovernmental Panel on Climate Change has now produced its own carbon budget They have calculated

that if we continue pumping carbon into the atmosphere at todayrsquos rate this budget will be exhausted within

15ndash25 years (IPCC 2013) This means there will be growing political pressure on the fossil fuel industry to

keep most of its reserves in the ground That pressure has already begun around the world Citizens are pressing

their superannuation funds councils banks universities and other institutions to divest from fossil fuels with

growing success The year 2013 saw several major financial institutions recognise the financial and ethical

implications of continuing to finance fossil fuels with Norwegian Storebrand Rabobank and the World Bank

among those who made major announcements on divestment or cutting loans In 2014 major institutions

including Stanford University the Australian National University and Oxford University have divested their fossil

fuel funds (Advisors 2015) So far in 2015 local councils in Australia such as Moreland Newcastle Byron Bay

Melbourne and many more have also divested (Ryan 2015) Divestment is now going mainstream and will have

increasing impacts on fossil fuel company shares into the future

JOBS AFTER COAL A Just Transition for Queensland | 13

As a result of the momentum of the global divestment movement international stock exchanges are creating

new indexes to exclude fossil fuels in preparation of the impending seismic shift in global finances In late

April 2014 the worldrsquos largest fund manager Blackrock joined with the FTSE Group in London to create

a new index The ex-Fossil Fuels Index Series is an innovative set of benchmark indices that excludes

companies directly engaged in extracting so-called ldquostranded assetsrdquo in the hydrocarbons industry ldquoThis

is one of the fastest-moving debates I think Irsquove seen in my 30 years in marketsrdquo FTSE managing director

Kevin Bourne told the Financial Times (Clarke 2014) The Bank of England is now investigating its exposure

to risk from its fossil fuel investments To top that off the worldrsquos biggest sovereign wealth investment fund in

Norway has recently dumped coal investments (Carrington 2015) The largest contribution to climate change

from the fossil fuels in company inventories at present is from coal Because it has the largest climate impact

per unit of useful energy it is being targeted for early phase out

The book value of fossil fuel companies is determined not only by their current infrastructure and deposits

undergoing extraction but also by the size of their legally claimed reserves Because the book value of so

many companies has greatly exceeded their realisable value as emissions restrictions come into place a

speculative bubble has formed Unfortunately bubbles usually burst in the end leaving behind stranded

assets and stranded capitalmdashand leaving workers in the lurch The only alternative is a mature and planned

phase out of the industry that slowly devalues and deregisters fossil fuel reserves at a pace that does not lead

to financial crisis A planned phase out that gives time for just employment transitions for fossil fuel

communities

500

1000886

565

1500

2000

2500

3000

already burnt

remaining

2000ndash2050

2011ndash2050

Coal 2˚Global carbon

budget

Oil

Gas

GtC

O2

Global fossil fuel reserves

Figure 6 Carbontracker 2012 report The Carbon Bubble

14 | JOBS AFTER COAL A Just Transition for Queensland

In 2013 the report Unburnable Carbon highlighted that ldquoCompany valuation and credit ratings

methodologies do not typically inform investors about their exposure to these stranded assetsrdquo (Leaton

2013) This is very troubling when considering that the supporting share value of these reserves was $4

trillion in 2012 and that they serviced $127 trillion in outstanding corporate debt over the same period We

need to challenge these methodologies (Tracker 2015) In a move that signals a step towards the solutions

required the World Bank the European Investment Bank and the US Export-Import Bank have all announced

that they will not fund further coal-fired power plants except in exceptional circumstances As changes in

policy by the major coal consumers the uptake of renewables and the need to stay within the global carbon

budget begin to bite it is high-cost producers who will be squeezed first Australia is considered a high-cost

producer because of our strong industrial relations and wage laws which makes it all the more necessary that

our governments are vigilant and prepared for impending macroeconomic change (Cleary 2015)

SummaryThis is the environment in which the Australian coal industry finds itself Internationally coal is no longer

looking like a safe long-term investment within the context of the rapid changes afoot in the world The coal

industry leaders are either in denial about their industryrsquos future or are determined to squeeze as much profit

as possible until the cost gets worn by workers and their communities (Saunders 2015)

The issues of climate change demands for cleaner air and more efficient new technologies The realities of

the market are revealing coal as the sunset industry it really is This is not an industry Queenslanders can

rely on to create a stable resilient and sustainable economy It cannot be relied upon for future wealth

and future jobs We have been warned by the UN Climate Change Secretariatrsquos Executive Secretary that the

diversification and a managed transition away from coal is what we need to do and we need to heed this

warning (Australian 2015)

JOBS AFTER COAL A Just Transition for Queensland | 15

3 Assessing some of the economic opportunities in mining regions

IntroductionThe great state of Queensland is endowed with sustainable human and environmental resources that have the

potential if we choose to harness it to drive a balanced diverse and resilient economy for generations to

come Diversifying Queenslandrsquos economy to create sensible and stable prosperity beyond the boom and bust

vagaries of the mining industry must be a key objective of the Queensland Government The Newman LNP

Governmentrsquos Queensland Plan headline was lsquoforging diversity and prosperityrsquo (Government 2014) But

throughout Newmanrsquos reign as premier no action was taken Under the new Palaszczuk Labor Government

there has been some effort to support economic diversification across the state This is insufficient because as

of yet nothing has been done to adequately fund facilitate and empower the actual communities where

mining takes place The grassroots Labour Environmental Action Network an organisation within the

Australian Labour Party has called for change At the 2015 Queensland ALP State Conference they put

forward a motion that was passed calling on the state government to prepare a just transition policy before the

next conference (ALP 2015)

Grain harvest

16 | JOBS AFTER COAL A Just Transition for Queensland

Most importantly both major parties have continued their relentless support for further coal mine expansions

that inherently suffocate the process of diversification

With the coal industry forecast to be in a lsquostructural declinersquo by political leaders and bankers alike it is now

essential that the focus for economic development be on industries that can bring sustainable prosperity to

Queensland (Burrell 2014 Robins 2014) In the United Kingdom under Prime Minister Thatcher the world

witnessed the consequences of industries closing without planning and without investment to transition local

communities and industries

The following section of the report outlines how the opportunities for sustainable economic development

are already known Queensland has well-established sectors with bountiful potential in agriculture tourism

manufacturing and education It also has the opportunity to capitalise on a boom in renewable energy and

bio-industrial products to create more sustainable economic sectors These industries are ready to fill the

void that will be and is being left by coal however they lack the support needed to ensure their presence in

mining communities to provide a just transition away from coal where it is most needed

Agriculture and aquacultureCurrently the Queensland agricultural sector is worth near $147 billion and employs over 90000 people

(Queensland Government 2012) The sector has the potential to massively expand its food exports to Asia as

population and economic growth continue to surge in the dynamic economic region Through the competitive

advantage of our proximity to Asia and high-quality produce capabilities agricultural products have become

Queenslandrsquos second largest export earner and have the potential for continued growth (Heath 2014) By

increasing availability of farming technology driving productivity minimising costs and focusing on profitable

premium produce markets the Queensland Agricultural Strategy (2012) aims to double the total value of

production for all agricultural commodities by 2040 With innovative new farming approaches and ecosystem

system management strategies such increases in production are possible in a way which sustainably manages

and regenerates the land

To reduce pressure on fish stocks from home and abroad the promotion of aquaculture could be further

encouraged across the state This industry is worth $10 Million a year (Lucas DLGP 2011) At present

there are several sites located along the coast however research conducted over the last decade has

identified future sites for land based aquaculture Industry consultation aquaculture management training

programs and related issues in developing a workforce need to be considered (Plan 2012) The Queensland

Aquaculture Industry Federation sees the need for continued collaboration between government and other

stakeholders in order for this industry to reach itsrsquo potential as a strong core industry (Federation 2015)

The Department of Employment Economic Development and Innovation is leading the government drive to

JOBS AFTER COAL A Just Transition for Queensland | 17

develop the aquaculture industry This could see a future where aquaculture goes further than just meeting

domestic demand and grow to cater for high value export markets (Lucas DLGP 2011)

New opportunities in animal genetics aquaculture horticulture and bio-processing are driving agriculture

and aquaculture sector growth in new directions Both industries are about creating intergenerational

economic sustainability Choosing these industries that have unlimited potential to sustain our communities

and our ecosystems over mining is choosing long-term jobs over short-term jobs that cannot be passed on to

the next generation The bottom line is that we live in a hungry world and Queensland is well placed to be a

reliable and sustainable source of food to other nations without the agricultural potential we are endowed with

(Government 2014)

Tourism and recreational fishingDespite setbacks due to the high Australian dollar and loss of skilled workers to the mining boom the

tourism industry is still a critical part of the Queensland economy with massive future potential (Dr Tien Duc

Pham 2015) The tourism industry made a significant employment contribution providing 124000 jobs in

2010ndash11 with steady growth in international visitor nights (Deloitte Access Economics 2012) Queensland

has the potential to become a global leader in tourism and ecotourism and by doing so to create more

jobs and revenue (Government 2014) This will be possible similarly as in agriculture by promoting the

experiences available in our natural places and the quality hospitality we can provide to the growing Asian

middle class (Wilson 2013) The Chinese tourism market is seeking clean fresh and new experiences that

Queensland can cater to and is expected to be worth $74 billion by 2020 (Guterres 2014) Significant to

Queenslandrsquos potential in tourism is our ability to expand the tourism industry in the authentically Australian

rural and stunningly beautiful coastal mining communities where new economic activities are most needed

Further mining expansion in such places threatens to do to tourism what the growth in heavy industry did to

Gladstonersquos economic diversity where fishing and tourism are now non-existent

Although sustainably managed fisheries have the potential to provide continued economic prosperity to

Queensland there lies a major opportunity in net free fisheries to develop as tourism industries specifically

in coal mining regions A great recent example of this taking place is the newly established Net Free Zone

between from the Northern end of St Helens beach to Cape Hillsborough (Spelitis 2015) Along with three

other net free zones across the state the extent of the cumulative commercial opportunities for sustainable

tourism the net free zones have created has made it one of the three pillars as part of the 2020 vision for the

Queensland has the opportunity to develop an abundant and resilient agricultural industry that supports the transition to sustainable prosperity

18 | JOBS AFTER COAL A Just Transition for Queensland

Queensland Tourism Industry Council (Council 2015) The Mackay Isaac and Whitsunday (MIW) coal mining

region has excellent accessibility to a variety of fishing pursuits In addition to the new net free zone ther are

five fresh water stocked impoundment fisheries creating opportunities to promote lake beach offshore and

deepwater angling Improvement of accommodation facilities quality of jetties access roads and coordinating

fish trails with regional events could maximise visitation from recreational and tourism markets (Mackay

Tourism Tourism Queensland 2012) Charter fishing operatiors tackle stores campsites motels boat sales

boat building and maintenance all have the opportunity of benefitted from growth from the recreational fishing

tourism industry (Lucas DLGP 2012)

Higher educationOver the past decade millions of international students have visited Queensland for our quality tertiary

institutions and enjoyable lifestyle International education is Queenslandrsquos biggest service export with

nearly $2431 million being generated in 2013ndash14 alone (Australian Government 2014) The majority

of Queensland is strategically located in the latitudinal tropical zone where at a global level more than

50 of the worldrsquos population is forecasted to live by 2050 (Australian Government 2015) This makes

Queenslandrsquos universities well placed to develop the partnerships and research innovations tailored to the

challenges and opportunities of the new tropically-oriented world This will help Queensland and especially

North Queensland to attract increasing levels of international students to be part of our high-quality tropical

research institutions These students will increase spending through tourism support the creation of our own

skilled and globally connected workforce and connect Australia to business networks and opportunities across

the world In 2013ndash14 the Cairns region benefitted to the tune of $1375 million from international students

(McGuiggan 2014) With the right policies these benefits already being experienced primarily in Cairns

Townsville and Brisbane can be spread further across Queensland to make international education a strong

economic driver in transitioning mining communities

Bio-industrial productsAs the world moves away from fossil fuels the demand for cleaner more sustainable fuel sources will grow

(Emissions 2014) By using excess organic matter produced through food production to develop bio-industrial

products Queensland has the potential to export clean and sustainable fuels and bio-plastic materials to the

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Tourism is about experiences not extraction It has the potential to share Queensland beauty with the rest of the world and create sustainable local economies in the process

Queenslandrsquos greatest resource is the minds of its people We can share and co-create our innovations and learning with students from all over the world who want to make Queensland the launch pad for their careers

JOBS AFTER COAL A Just Transition for Queensland | 19

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Sorghum fields

20 | JOBS AFTER COAL A Just Transition for Queensland

Queensland is well placed to develop biofuel products from waste and oil crops such as Pongamia and algae

in addition to using the statersquos advanced sugarcane industry to convert excess cane using efficient cellulosic

processes Recent scientific developments in bio-plastics at the University of Queensland show that as a

state Queensland has the skills and ability to build a bio-industrial products industry that can contribute to a

sustainable economic future (Queensland 2015)

Renewable energyQueensland the sunshine state has enormous potential to generate electricity from the sun wind and waves

in addition to many other abundant renewable energy sources (Green 2012) Renewable energy has for a long

time been the catch cry from environmentalists as the complete solution to creating the jobs necessary to

replace the fossil fuel industry This report has been written partially to show recognition that as much as

renewable energy has the potential to create more jobs and replace fossil fuel domestic energy production it

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Gemasolar solar thermal power station Spain

JOBS AFTER COAL A Just Transition for Queensland | 21

cannot completely replace all of the coal

export industry jobs Numerous studies

show that with strong climate policies

over 7100 jobs can be created in

Queensland through renewable energy

by 2030 (Institute 2011) Thousands of

these jobs will be in regional

Queensland These should be prioritised

for regions where the mining industry

has developed rural communities in

need of new economic opportunities Far

North Queensland is especially suited to

further renewable energy investment

because of its climatic conditions and

because of the expensive transmissions

losses from having energy wired from

southern power sources (Allen 2011)

This makes it essential that government

policy ensures that the fair share of the

$35 billion in potential renewable

energy investment goes to rural mining

communities not only where it is most

needed economically but where it

makes the most business sense

(Department of Employment 2009)

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Queensland has the potential to become a smart sunshine state powered by clean and sustainable renewable energy By doing this we will be creating jobs in rural mining communities where they are needed most and building a foundation for a new sustainable economy

22 | JOBS AFTER COAL A Just Transition for Queensland

4 Community transitions Global case studies

There are communities around the worldwhich have reinvented themselves after the end of coal mining and

developed prosperous economies in doing so It has been a struggle but where there is a level of government

support inspired local leadership and the community is working together to regenerate its economy it has

been possible (Coal 2015) We are not suggesting any of these examples can be directly transferred to

Queensland communities facing the end of coal mining The object of these case studies is not to provide a

blueprint for Mackay Gladstone Rockhampton or mining towns in Central Queensland but to show the

diversity of ideas that have worked in other places that might stimulate our local communities to reinvent

themselves too

Hazelwood coal power station La Trobe Valley Vic

JOBS AFTER COAL A Just Transition for Queensland | 23

La Trobe ValleyIn the brown coal producing region of the La Trobe Valley in Victoria a grassroots transitionary force has been

underway for the past fifteen years Earthworker was set up by union and climate change activists seeking a

real alternative to coal and privately owned business models Earthworker Cooperativersquos mission is to create

jobs that respond to the lsquochallenges of climate change and the need for local job creation by facilitating the

establishment of worker-owned cooperatives hellip in sustainability-focused industriesrsquo (Earthworker 2015)

Their current focus is the establishment of a cooperative producing solar hot water systems in partnership

with an existing business called lsquoEverlast Hydro Systemsrsquo Their goal is to take production to Morwell in the

La Trobe Valley where workers are in need of an alternative to the coal industry The unique cooperative model

has made selling arrangement possible through inserting the option to buy a solar hot water system through

enterprise bargaining agreements

BanwenThe DOVE workshop in Banwen South Wales (Dove 2015) was started by agroup of women who during

the 1984ndash85 coal minersrsquo strike decided that community-based education was the most practical path to

regenerate the local economy Setting up shop in an abandoned mine office they developed a series of adult

education workshops for women Three decades later the DOVE building hosts a diverse set of small-scale

entrepreneurs including a daycare a library a community garden and a cafeacute featuring local foods

OrkneyOrkney like Central Queensland is a relatively isolated place with a scattered population Situated at the

top of Scotland two hours from the mainland by ferry Orcadians like Central Queenslanders often feel

like spectators to what goes on in the rest of their country They also feel vulnerable to central government

decisions and are often irritated by the lack of understanding of island life on the part of distant authoritiesmdash

its particular customs dialect and ways of doing things Since Norse times Orkney islanders burned peat (a

very young form of coal) as their primary fuel source but all the peat has been dug up This traditional way

of life where each farming family had its own peat bank and spent long summer days cutting and drying

peats while sharing picnics as children played is gone Another non-renewable energy source North Sea oil

discovered in the 1970s brought positive and negatives for the island It turned the tide of depopulation but

like the peat banks the oil is depleting and another lsquoend of an erarsquo is approaching Orcadians have woken up

to the fact that they canrsquot continue to hark back to the past and are confronting the issues of a future without

fossil fuels

Over the last three decades European community funding has helped Orkney to equip itself for the green

energy revolution Orkney now plays a global role in the evolution of wave and tidal technologies and

significant research and development work is creating new employment opportunities A high school in

Stromness was converted into the European Marine Energy Centre and is now a world leader providing

developers the opportunity to test full-scale prototypes in the sea The worldrsquos largest single-rotor tidal turbine

24 | JOBS AFTER COAL A Just Transition for Queensland

was the first in Scotland to be connected to the national grid from this centre Marine energy combined with

an expansion of wind turbines means that the island is now self-sufficient in electricity These renewable

energy developments have created jobs in the Orkneys in civil works and erection grid connection and

communications (Stuart 2011)

Investment in renewable energy and its associated RampD has attracted people to live work and study on the

island Islanders used to have to leave to get tertiary education but it is now possible to study for an MSc in

renewable energy at a Heriot Watt University campus in Stromness A new generation of Orcadians have grown

up to see renewable energy as the way of the future something quite ldquonormalrdquo which will provide greater

opportunities for their children to stay on the island with genuine prospects for employment in meaningful

jobs requiring a wide range of skills and qualifications This shows what a community in transition to a low

carbon future can look like

Nord-Pas De CalaisUntil 1986 the north-east region of France Nord-pas de Calais was a major coal mining area It still boasts

huge twin tailings mountains the largest in Europe which have become a tourist attraction It is known

to Australians for the war cemeteries associated with the battle of the Somme in WW1 but it has recently

undergone a remarkable transformation towards a truly sustainable economy Old coal mines at Lens have

been transformed into an art gallery displaying works from the Louvre collection in Paris Hundreds of people

are trained in energy efficiency solar energy and green architecture at a new training centre in nearby Loos-

en-Gohelle

The Chamber of Commerce invited economist and social visionary Jeremy Rifkin of the TIR Consulting

Group and his chief economist Skip Laitner to apply their model of the third industrial revolution to the

district (Riftkin 2015) Rifkinrsquos Third Industrial Revolution combines renewable energy energy efficiency

and the connectivity of the internet Buildings are energy generators and hydrogen is used as energy storage

After working with the community for some time the Master Plan was published in 2013 and envisages

that 100000 new jobs can be created by the transition plan (LLC 2013) Certainly the population has not

declined since mining days and has even slightly increased Inspired local leadership was the key in this

community plus some outside funding to help with the underpinning research

Appalachia (Kentucky)The transition process is just starting here but the community is very organised Kentuckians For The

Commonwealth has been battling the negative effects of coal mining for some decades and is now planning a

transition to ldquobuilding a better future beyond coalrdquo (Commonwealth 2015) Last year they held a conference

in Harlan Kentucky right in the middle of the Appalachian coal fields and invited guests from other US

regions in the same position as well as from Wales It is too soon to see what the outcome of their learning

process will be but they are another example of a community taking its future into its own handsmdashoptimistic

that there is a better future after coal

JOBS AFTER COAL A Just Transition for Queensland | 25

5 A just transition for coal mining communities policy recommendations

The opportunities to transition from unsustainable coal mining to prosperous communities with decent

employment will not just materialise by themselves It will need the political will and the right incentives to

ensure that communities are not left fending for themselves with unemployment increasing and families

in need of long-term welfare But not only is the political will not currently there both major political

parties continue to support the expansion of this sunset industry and by doing so are making the transition

challenges progressively more difficult (Denniss 2012) For too many years governments have uncritically

supported the coal mining sector Entire government departments have been focused on facilitating mining

with tax incentives weakening assessment and approval processes along with providing through tax payer

money established industrial infrastructure to support new projects Government policy often seeks to grow

royalties income by supporting the extraction of as much coal as possible as an escape the challenge of

finding other ways to increase state revenue New sustainable industries in coal communities will need just as

much if not more support while it gets started

We propose that communities local businesses workers unions community groups environment groups

local government and state and federal governments all need to be involved in planning a transition to

alternative forms of economic development and providing new jobs We call this a Just Transition (Anthea

Bill amp Evans1 2008 Brecher 2012) Just Transition is a framework for a fair and sustainable shift to a low

carbon economy proposed by trade unions and supported by environmental NGOs A Just Transition holds

that a shift to a lower carbon economy is vital to avoid dangerous climate change

Bimblebox Nature Refuge

26 | JOBS AFTER COAL A Just Transition for Queensland

Tough targets to cut greenhouse pollution supported by new environmental regulations and emerging carbon

markets will transform the global economy over the next decade These shifts will have major implications

for working people in energy supply industry and transport and for everyone as consumers There is a concern

that significant periods of economic restructuring in the past have often happened in a chaotic fashion

leaving ordinary workers along with their families and communities to bear the brunt of the transition to

new ways of producing wealth A just transition seeks to prevent such injustice becoming a feature of this

transition suggesting that it would not only be morally wrong and socially damaging but would undermine the

credibility of the transition itself and could slow or even halt the changes that must be made

It is through the challenges of communicating the urgency of climate change and other social and

environmental impacts that much of the debate about coal and its consequences for land water and the

climate has become unnecessarily adversarial and polarised Coal mining and power generation communities

deserve acknowledgement and appreciation for all that they have historically and currently contributed to

our country and our economy In communicating the economic shifts that are taking place and facilitating

the necessary transitions the Australian community needs to be respectful of the history and identity of coal

communities Environment groups government unions and the community need to initiate and engage in

the discussions about transitions in an open honest and compassionate manner Only by approaching the

transition in this way can the adversarial nature of the debate be broken down to make way for transformative

mutually respectful and holistic solutions

Whitsundays lsquoHave a Heart for the Reefrsquo

JOBS AFTER COAL A Just Transition for Queensland | 27

A just transition recognises that support for policies are conditional on a fair distribution of the costs and

benefits of those policies across the economy A just transition should also recognise that the creation of

opportunities for active engagement by those affected in determining the future wellbeing of themselves

and their families is essential for the long term empowerment of citizens and communities The following

recommendations have been written with the aim of emphasising such community empowerment as a priority

Recommendations

1) Establishing a unit within the State Government to support coal mining regions to transition to new economies

Specific institutions are needed to develop transition plans They need to have strong government support

and funding regional offices and representation from diverse stakeholders A dedicated unit within the

Department of Infrastructure Local Government and Planning could be established to oversee this work

They could work on the ground in the main coal mining communities to bring government expertise into

regional entities that would develop local plans that involve and empower the whole community This unit

or a connected unit would analyse existing barriers to the creation of competitive advantages for alternative

sustainable industries and would identify actions the State Government can take to support such creation

Any policy and support should come with clear conditions and timeframes These regional entities would

need generous budgets to assist local groups to develop their transition strategies to support research re-

training and the development of new business and community start-up initiatives based on the needs and

strategies of communities The key to communities becoming economically resilient is high levels of autonomy

and freedom in shaping their economic futures Research funding available to the regional entities will be

essential to the empowerment of local leadership Research funding should at least reach the OECD research

funding average and it should prioritise low carbon technologies and industry sectors with increased triple

bottom line sustainability potential

2) Support community leadership in diversifying local economies through the establishment of democratic regional entities

In each mining community a group of traditional and non-traditional community leaders willing to think

beyond lsquoBusiness as Usualrsquo to imagine a better future could be called together to work in collaboration with

and be resourced by the state government managed regional entities mentioned in recommendation one

The leaders would come from diverse backgrounds such as from local governments business associations

unions farming groups renewable energy businesses and educational institutions The objectives of these

leadership groups would be tailored to each community The objectives would in broad terms be to increase

employment in new diverse industries based on sustainable production and publicservice sector job creation

Expert facilitation alongside inclusive and democratic community engagement initiatives would be essential

to ensure the process and environment for creativity and innovation is maximised To develop such groups

it would be necessary to take stock of the existing resources skills and successful businesses on which a

new future can be built In addition an analysis of the social environmental and economic needs of the

28 | JOBS AFTER COAL A Just Transition for Queensland

community would also be beneficial These groups could then establish economic diversification projects

including value-added local production worker controlled co-operative enterprises and new community-

based enterprises that economically empower the local community Activities may also include support for

alternative industries in regard to process restructuring or subsidising the wages of workers displaced from

higher paying traditional industries

3) Support researching and communicating how the just transition can take place

Consistent research is needed on the best options to support the state and national economies to transition

This requires ongoing situational analysis of the global energy market shifts at both government levels In

addition each mining region will need assistance to research the number of jobs that are dependent on coal

the skills of those employed the level of local national and global long- and short-term risk to local mining

operations the transferability of jobs to other industries local opportunities for new enterprises and their

needs and the local educational and training needs and resources A key issue requiring research will be

around how the transitition scenarios differ depending on the level and relativity of thermal and coking coal

industries across coal mining communities The process for sourcing this information at a local and state

government level should be integrated into a policy feedback loop to support cyclical situational analysis and

policy adjustments from all levels of government This research should take place at the state level and be

encouraged at the industry and local level through grants

Mackay Central Queensland

JOBS AFTER COAL A Just Transition for Queensland | 29

4) Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

Many existing Queensland industries including those not highlighted in this report have the potential to

carry Queensland towards a new sustainable economy [sC5]mdashbut they will need support to do so Instead

of continuing to support and lower costs for the coal mining industry we need a plan to grow competitive

advantage across industries that have potential for sustainability and growth in regional mining communities

Along with industry and community organisations the State Government could organise a State Economic

Summit to assess existing industry clusters identify the potential of new and emerging industries consider

their competitiveness and key capabilities and identify barriers to increasing competitive advantage The

findings and recommendations from this Summit could be used to inform the work of the Unit established in

bullet point one above and the research outlined in bullet point two

5) Provide social protection of workers their families and incomes

If mines close suddenly workers need protection for their incomes and social services and possible relocation

even though many miners these days do not live in the communities where they mine Ideally these transition

plans would be developed early enough to ensure that new employment opportunities are in place for them

before mines actually close For many workers this is already too late but if the process begins now there will

be choices available for future retrenched coal workers who live in mining communities and regions Mining

companies could be incentivised andor penalised to give adequate notice to workers and other stakeholders

that closure may be impending and alternative economic opportunities need to be developed

6) Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

Involving the relevant unions in the planning of community transitions can enable them to move towards

becoming more proactive agents helping to plan the transition with critical networks and specific knowledge

about the needs of their members When a coal-fired power station in Washington State USA was scheduled

for closure for environmental reasons unions played a pivotal role persuading environmentalists and others

to delay the closure long enough for a Just Transition to provide different jobs for the workers This made it

possible for the coal resource to be replaced by wind and other renewable generation rather than natural

gasmdasha better environmental outcome and the unions became an active part in the phase out planning

Unions have a heavy workload defending workers rights and pay They need to be supported and financed to

play important roles in community transitions From facilitation and leadership of planning bodies career

planning and advice preferential hiring for displaced workers in the new alternative emerging industries and

leading the establishment of work controlled cooperatives unions have an essential role to play

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

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ABC Online (2014) Coal lsquogood for humanityrsquo Prime Minister Tony Abbott says at $39b Queensland mine opening httpwwwabcnetaunews2014-10-13coal-is-good-for-humanity-pm-tony-abbott-says5810244 Retrieved 10th of November 2015

After Coal (2015) Community Regeneration West Virginia United States httpaftercoalcomengage-your-community Retrieved 10th of November 2015

Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

Arabella Advisors (2015) Measuring the Growth of the Global Fossil Fuel Divestment and Clean Energy Investment Movement httpwwwarabellaadvisorscomwp-contentuploads201509Measuring-the-Growth-of-the-Divestment-Movementpdf Retrieved 10th of November 2015

Australian Bureau of Statistics (2014) Australian National Accounts State Accounts 2012ndash13 Canberra Australia Retrieved 10th of November 2015

Australian Bureau of Statistics (2015) MackaymdashCensus Employment by IndustrymdashTime Series Australian Government Department of Employment Retrieved 10th of November 2015

Australian Government Department for Education and Training (2015) Draft National Strategy for International Education Canberra Australian Capital Territory Retrieved 10th of November 2015

Australian Government (2014) Export income to Australia from international education activity in 2013ndash14 Canberra Australia Retrieved 10th of November 2015

BHP Billiton (2013) Coal Briefing httpwwwbhpbillitoncom~mediabhpdocumentsinvestorsreports2013130529_coalbriefingpdf Retrieved 10th of November 2015

Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

Beyond Zero Emissions (2012) Laggard to Leader How Australia Can Lead the World to Zero Carbon Prosperity Melbourne University Melbourne Victoria Retrieved 10th of November 2015

Beyond Zero Emissions (2014) A Fossil Economy in a Changing World Melbourne University Melbourne Victoria httpmediabzeorgaufossileconomyFossilEconomypdf Retrieved 10th of November 2015

Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

One Million Climate Job Campaign (2015) About London United Kingdom httpclimatejobsorgzaabout Retrieved 10th of November 2015

Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 17: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

JOBS AFTER COAL A Just Transition for Queensland | 7

2 The drivers of change in the coal industry

Drivers of change The global energy market is in a period of dynamic long-term structural change that will have ongoing

repercussions for energy exporting countries such as Australia Over the last ten years the expansion in gas

the decrease in renewable energy prices the increasing of capital infrastructure costs the demand for cleaner

energy and energy efficiency have all dramatically changed the nature of the global energy economy (Ben

Caldecott 2014)

Coal has been the energy source that has made so many technological advancements through history possible

Although there has been many struggles and social costs along the way The communities workers and

companies that made this progress possible have substantially contributed to the creation of the modern world

Though if there is one thing we know from history it is that empires rise and fall The coal empire is crumbling

As it crumbles it is creating unnecessary instability stress and hardship on communities In communities like

Mackay where income has dropped by 30ndash40 as many other small mining towns people and businesses have

been caught culturally and economically unprepared for this economic shift (Bleby 2013)

It is clear that coal thermal coal especially is no longer good for humanity despite our former Prime Minister

Tony Abbottrsquos fervent belief that it is (Online 2014) WA Premier Colin Barnett heralded last year in his

declaration that coal is in lsquostructural declinersquo (Burrell 2014) He was not wrong In the past 5 years alone the

Dow Jones Total Coal Market index has fallen by 76 (Baker 2014)

The reality is that the world is rapidly shifting away from fossil fuels including countries that are key

importers of Australiarsquos coal and gas China India Japan and South Korea import over 80 of Australiarsquos

export market for coal and gas The reality is that these countries have recently either announced policies to

shift away from these fuels andor initiatives to drastically enhance renewable energy and energy efficiency

(ldquoPolitics of Climate Change in Asiardquo 2015)

The following section of the report analyses the risk of Australia not being prepared economically for changes

that are already taking place As a country and a state our governing political parties continue to pursue

a strategy that assumes our short and long term economic prosperity is dependent on mining Few of our

political leaders are attempting to communicate an economic vision free from the inevitable boom-bust cycles

created by extracting emissions-intensive resources It is also a strategy that assumes energy production and

distribution will continue on as a very centralised process rather than following the great trend of networked

and decentralised distribution that is shaping the 21st century (Riftkin 2015) This strategy is short-sighted

given recent announcements by China and India to phase out fossil fuels and move rapidly towards cleaner

and more distributed energy sources (Rohr 2014)

The international coal priceThe majority of Queenslandrsquos export coal mining industry is dependent on demand for steel making from

the worldrsquos coking or metallurgical coal market This is a market that has been severely impacted by a

combination of actions in China the biggest steel manufacturer in the world Primarily Chinarsquos housing

boom has been slowing down over recent years this in turn has massively reduced the need for steel Most

importantly China is also running a ldquowar on pollutionrdquo that is having direct short- and long-term impacts on

the viability of the coal industry as a whole This has resulted in a campaign of state enforced closures of coal

plants and steel mills especially near the countryrsquos big industrial coastal cities (Ng 2015)

Prices on the international coking coal stock market have plummeted from the all time high of US$330

tonne in late 2011 to a sobering low of US$109tonne in the first quarter of 2015 The outlook still remains

gloomy for the coal sector

With the continued slowdown in the global and Chinese economies the price of iron ore has also collapsed

Prices have dropped by one third in the first quarter of 2015 alone causing at least one Australian mine to

close operations and many others to cancel plans for expansions (Sandersen 2015) Iron ore is closely linked

to the sales of coking coal which is used most commonly to melt iron ore into steel

8 | JOBS AFTER COAL A Just Transition for Queensland

20

14

US

$t

0

100

200

300

400

2005 2007high quality high coking semi-soft coking

2009 2011 2013 2015

Figure 5 Coking Coal Prices 2005ndash2015 (worldcoalcom)

A similar price drop has hit thermal coal used in coal-fired power stations Thermal coal is mined in many

Surat Basin mines and is also found in some Bowen Basin mines where it is an addition to the high quality

coking coal found in the area Significantly the proposed mining development in the Galilee Basin is only

for thermal coal which at a time when coal-fired power stations are being replaced by cleaner options is

alarming (Pacific 2012) Thermal coal was priced at US$120tonne in late 2011 It had plunged to US$73

per tonne by February 2015 and has remained below US$60tonne since May 2015 Chinarsquos new rules of

cutting ash and sulphur content in seaborne coal imports along with increasing tariffs on coal imports has

meant that even Shenhua Chinarsquos biggest coal company cut coal imports in early 2015 (Jenda 2015)

Overall Chinese consumption dipped by 16 in 2014 despite their economic growth of 73

The decade of relentless and largely unplanned investment in Queensland coal mining in times of high prices

led to a massive oversupply against a background of decreasing demand The state and federal governments

failed to slow the industry down so that it did not overshoot an economically sustainable size This has made

the challenge of transitioning out of the industry even harder along with magnifying the pain now faced by

many mining towns (Neubauer 2015) All of this leaves a million-dollar question Is the downshift in [coal]

demand terminal According to Richard Gibbs from the Macquarie Bank it certainly is (Neubauer 2015)

The global coal market is also experiencing competition from renewables and shale gas slow growth and

government policies which are in part driven by the threat of climate change

The growing competition from renewable energy sources has been increasing its impact on the coal industry

by slowly but steadily eroding profits of domestic coal power stationsmdashand thus demand for coalmdashacross the

country (Hewson 2015) In Queensland the state government should be applauded for its 50 renewable

energy target by 2030 which will further add strain to struggling coal power generators (Parkinson 2015)

A more than 50 decline in coal prices has seen most listed coal companies globally to lose 80ndash90 of their

equity market value in the last four years (Buckley 2014) In 2014 the world added more energy generation

capacity from wind power than from coal Overall Europe and America have already cut coal-fired generation

JOBS AFTER COAL A Just Transition for Queensland | 9

capacity by over a fifth in a decade The sun will undoubtedly rise even further for renewable energy in 2015

but for coal there remains a lot further to fallrdquo said a report by the Institute for Energy Economics and

Financial Analysis in January 2015 (Buckley 2015a)

This statement is borne out by the facts

bull In 2014 new global wind installations grew 40 to 46GW led by China and America (Buckley

2015b)

bull In 2014 the US solar installation sector created almost 50 more jobs than the oil and gas pipeline

construction industry (Foundation 2015)

bull From 2000 to 2011 global annual growth in the yearly global installation rate of photovoltaic solar

panels was 40 In 2011 the total amount of global PV capacity installed was 27GW an astonishing

60 growth on 2010 levels (Green 2012)

bull Unsubsidised renewable energy is now cheaper than new coal-fired power in Australia (Paton 2013)

Solar installation

10 | JOBS AFTER COAL A Just Transition for Queensland

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

Coal power station

JOBS AFTER COAL A Just Transition for Queensland | 11

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

The outlook for coal pricesWhile some consider the outlook for coal prices as cyclical in nature and that a turnaround will increases

prices for coal other analysts believe this downward trend based on policies health impacts and concern

about global warming is here to stay

Financial reports from the major mining companies in Australia paint a grim outlook for global metallurgical

coal prices China was once the great hope for coking coal exporters but BHP Billitonrsquos metallurgical coal

market outlook (May 2013) indicated a flattening demand into the future (Billiton 2013 Rohr 2014)

BHP Billiton has warned that the increased usage of scrap metal in furnaces would result in lower growth in

demand for pig iron while greater production from electric arc furnacesmdashwhich use little or no coking coalmdash

are expected to ldquocontribute a significant share of total Chinese steel production by 2030rdquo Although coking

coal will likely remain necessary for steel production for some time as renewable energy sources grow the

efficiency and lower emissions intensity of electric arc furnaces will help them to outcompete coking coal in

the not too distant future Some experts even predict another technology called lsquodirect reduced ironrsquo that uses

gas to make steel could make coking coal redundant within a decade (Macleod 2013)

It is not just China BHP Billiton also cautions that the Indian steel outlook is less certain as steel production

growth has been slower than expected Prices for commodities from iron ore to coal are sinking as Chinarsquos

leadership tries to steer the economy away from debt-fueled property investment and smokestack industries

embracing services and domestic-led consumption At the same time President Xi Jinping is stepping up efforts

to combat pollution The provincial government of Beijing and a number of other major cities have made plans to

ban coal use by 2020 further putting the squeeze on all types of heavy industry (Coulter 2015)

However the outlook is not all dismal for coal everywhere In India demand is expected to continue to rise

without peaking until the 2030s Indiarsquos government predicts a 19 rise in coal imports this year which

may offer very short-term opportunities for Australian miners The opportunities are short term because these

import increases are something the Indian government has indicated it does not want continued into the

future Indiarsquos plan is to ramp up renewable energy technology as well as develop their untapped coal fields

to support a gradual phase out of thermal-coal imports within the next 2ndash3 years (Baker 2014) Regardless

the Indian mining giant Adani still hopes it can get coal from its proposed Carmichael mine in the Galilee

Basin and export it to India for the duration of its 60 year life span After a number of international banks

have ruled out funding for the Carmichael coal mine Adani has been looking for cash handouts from the

Australian Government to fund its shaky proposal However sanity has prevailed and these have been ruled

out by the new Prime Minister (Edis 2015) It is clear the Indian governmentrsquos plan for Indiarsquos future coal

supply sources does not involve Australian coal

12 | JOBS AFTER COAL A Just Transition for Queensland

This is the marketplace in which Australiarsquos exported coal competes and this is the marketplace that holds the

livelihoods of workers and communities in its hands The current state and future outlook of the coal industry

suggests that it would be risky not to scale down the thermal coal industry and at least restrict any new mine

expansions in the coking coal sector There are those who remain positive about the industryrsquos future but

recent events in the coal industry and uncertainty over medium and long term suggest that there are better

industries to back Behind these diverse risks threatening the coal industry is the inescapable scientific

fact that we cannot afford to burn any more coal from new coal mines if we want to decrease the risk of our

already fifty fifty chance of avoiding the worst impacts of global warming (IPCC 2013) If we wanted to try

and remove the total risk of runaway climate change we could not even afford to burn the coal that are sitting

in trucks on trains at port yards and in ships Not even the coal travelling on conveyors into power station

furnaces about to be burnt right this very moment

The carbon bubbleFrom the South Sea Bubble as well as the housing and dotcom bubbles of the last decade periodic over-

investment has been made into sectors deemed too important to fail The rush and hubris of investors seeking

incomparable profits to finance such industries has led to speculative bubbles of over-estimated value that

eventually burst In the economic fallout that results working people carry the burden while the speculators

and profiteers generally are not held accountable Another speculative bubble has formed and it dwarfs the

size of all of the bubbles that have come before it It is called the Carbon Bubble (Tracker 2015)

One of the few things world leaders agreed upon at the Copenhagen climate talks was that the Earth needs to

stay below 2degC warming to minimize the risk of runaway climate change

bull If we are to avoid going over 2degC we can emit only 565 more gigatonnes of carbon dioxide (IPCC 2007)

bull Burning the fossil fuel that corporations now have in their reserves would result in emitting 2795

gigatonnes of carbon dioxidemdashfive times the safe amount (Leaton 2013)

The Intergovernmental Panel on Climate Change has now produced its own carbon budget They have calculated

that if we continue pumping carbon into the atmosphere at todayrsquos rate this budget will be exhausted within

15ndash25 years (IPCC 2013) This means there will be growing political pressure on the fossil fuel industry to

keep most of its reserves in the ground That pressure has already begun around the world Citizens are pressing

their superannuation funds councils banks universities and other institutions to divest from fossil fuels with

growing success The year 2013 saw several major financial institutions recognise the financial and ethical

implications of continuing to finance fossil fuels with Norwegian Storebrand Rabobank and the World Bank

among those who made major announcements on divestment or cutting loans In 2014 major institutions

including Stanford University the Australian National University and Oxford University have divested their fossil

fuel funds (Advisors 2015) So far in 2015 local councils in Australia such as Moreland Newcastle Byron Bay

Melbourne and many more have also divested (Ryan 2015) Divestment is now going mainstream and will have

increasing impacts on fossil fuel company shares into the future

JOBS AFTER COAL A Just Transition for Queensland | 13

As a result of the momentum of the global divestment movement international stock exchanges are creating

new indexes to exclude fossil fuels in preparation of the impending seismic shift in global finances In late

April 2014 the worldrsquos largest fund manager Blackrock joined with the FTSE Group in London to create

a new index The ex-Fossil Fuels Index Series is an innovative set of benchmark indices that excludes

companies directly engaged in extracting so-called ldquostranded assetsrdquo in the hydrocarbons industry ldquoThis

is one of the fastest-moving debates I think Irsquove seen in my 30 years in marketsrdquo FTSE managing director

Kevin Bourne told the Financial Times (Clarke 2014) The Bank of England is now investigating its exposure

to risk from its fossil fuel investments To top that off the worldrsquos biggest sovereign wealth investment fund in

Norway has recently dumped coal investments (Carrington 2015) The largest contribution to climate change

from the fossil fuels in company inventories at present is from coal Because it has the largest climate impact

per unit of useful energy it is being targeted for early phase out

The book value of fossil fuel companies is determined not only by their current infrastructure and deposits

undergoing extraction but also by the size of their legally claimed reserves Because the book value of so

many companies has greatly exceeded their realisable value as emissions restrictions come into place a

speculative bubble has formed Unfortunately bubbles usually burst in the end leaving behind stranded

assets and stranded capitalmdashand leaving workers in the lurch The only alternative is a mature and planned

phase out of the industry that slowly devalues and deregisters fossil fuel reserves at a pace that does not lead

to financial crisis A planned phase out that gives time for just employment transitions for fossil fuel

communities

500

1000886

565

1500

2000

2500

3000

already burnt

remaining

2000ndash2050

2011ndash2050

Coal 2˚Global carbon

budget

Oil

Gas

GtC

O2

Global fossil fuel reserves

Figure 6 Carbontracker 2012 report The Carbon Bubble

14 | JOBS AFTER COAL A Just Transition for Queensland

In 2013 the report Unburnable Carbon highlighted that ldquoCompany valuation and credit ratings

methodologies do not typically inform investors about their exposure to these stranded assetsrdquo (Leaton

2013) This is very troubling when considering that the supporting share value of these reserves was $4

trillion in 2012 and that they serviced $127 trillion in outstanding corporate debt over the same period We

need to challenge these methodologies (Tracker 2015) In a move that signals a step towards the solutions

required the World Bank the European Investment Bank and the US Export-Import Bank have all announced

that they will not fund further coal-fired power plants except in exceptional circumstances As changes in

policy by the major coal consumers the uptake of renewables and the need to stay within the global carbon

budget begin to bite it is high-cost producers who will be squeezed first Australia is considered a high-cost

producer because of our strong industrial relations and wage laws which makes it all the more necessary that

our governments are vigilant and prepared for impending macroeconomic change (Cleary 2015)

SummaryThis is the environment in which the Australian coal industry finds itself Internationally coal is no longer

looking like a safe long-term investment within the context of the rapid changes afoot in the world The coal

industry leaders are either in denial about their industryrsquos future or are determined to squeeze as much profit

as possible until the cost gets worn by workers and their communities (Saunders 2015)

The issues of climate change demands for cleaner air and more efficient new technologies The realities of

the market are revealing coal as the sunset industry it really is This is not an industry Queenslanders can

rely on to create a stable resilient and sustainable economy It cannot be relied upon for future wealth

and future jobs We have been warned by the UN Climate Change Secretariatrsquos Executive Secretary that the

diversification and a managed transition away from coal is what we need to do and we need to heed this

warning (Australian 2015)

JOBS AFTER COAL A Just Transition for Queensland | 15

3 Assessing some of the economic opportunities in mining regions

IntroductionThe great state of Queensland is endowed with sustainable human and environmental resources that have the

potential if we choose to harness it to drive a balanced diverse and resilient economy for generations to

come Diversifying Queenslandrsquos economy to create sensible and stable prosperity beyond the boom and bust

vagaries of the mining industry must be a key objective of the Queensland Government The Newman LNP

Governmentrsquos Queensland Plan headline was lsquoforging diversity and prosperityrsquo (Government 2014) But

throughout Newmanrsquos reign as premier no action was taken Under the new Palaszczuk Labor Government

there has been some effort to support economic diversification across the state This is insufficient because as

of yet nothing has been done to adequately fund facilitate and empower the actual communities where

mining takes place The grassroots Labour Environmental Action Network an organisation within the

Australian Labour Party has called for change At the 2015 Queensland ALP State Conference they put

forward a motion that was passed calling on the state government to prepare a just transition policy before the

next conference (ALP 2015)

Grain harvest

16 | JOBS AFTER COAL A Just Transition for Queensland

Most importantly both major parties have continued their relentless support for further coal mine expansions

that inherently suffocate the process of diversification

With the coal industry forecast to be in a lsquostructural declinersquo by political leaders and bankers alike it is now

essential that the focus for economic development be on industries that can bring sustainable prosperity to

Queensland (Burrell 2014 Robins 2014) In the United Kingdom under Prime Minister Thatcher the world

witnessed the consequences of industries closing without planning and without investment to transition local

communities and industries

The following section of the report outlines how the opportunities for sustainable economic development

are already known Queensland has well-established sectors with bountiful potential in agriculture tourism

manufacturing and education It also has the opportunity to capitalise on a boom in renewable energy and

bio-industrial products to create more sustainable economic sectors These industries are ready to fill the

void that will be and is being left by coal however they lack the support needed to ensure their presence in

mining communities to provide a just transition away from coal where it is most needed

Agriculture and aquacultureCurrently the Queensland agricultural sector is worth near $147 billion and employs over 90000 people

(Queensland Government 2012) The sector has the potential to massively expand its food exports to Asia as

population and economic growth continue to surge in the dynamic economic region Through the competitive

advantage of our proximity to Asia and high-quality produce capabilities agricultural products have become

Queenslandrsquos second largest export earner and have the potential for continued growth (Heath 2014) By

increasing availability of farming technology driving productivity minimising costs and focusing on profitable

premium produce markets the Queensland Agricultural Strategy (2012) aims to double the total value of

production for all agricultural commodities by 2040 With innovative new farming approaches and ecosystem

system management strategies such increases in production are possible in a way which sustainably manages

and regenerates the land

To reduce pressure on fish stocks from home and abroad the promotion of aquaculture could be further

encouraged across the state This industry is worth $10 Million a year (Lucas DLGP 2011) At present

there are several sites located along the coast however research conducted over the last decade has

identified future sites for land based aquaculture Industry consultation aquaculture management training

programs and related issues in developing a workforce need to be considered (Plan 2012) The Queensland

Aquaculture Industry Federation sees the need for continued collaboration between government and other

stakeholders in order for this industry to reach itsrsquo potential as a strong core industry (Federation 2015)

The Department of Employment Economic Development and Innovation is leading the government drive to

JOBS AFTER COAL A Just Transition for Queensland | 17

develop the aquaculture industry This could see a future where aquaculture goes further than just meeting

domestic demand and grow to cater for high value export markets (Lucas DLGP 2011)

New opportunities in animal genetics aquaculture horticulture and bio-processing are driving agriculture

and aquaculture sector growth in new directions Both industries are about creating intergenerational

economic sustainability Choosing these industries that have unlimited potential to sustain our communities

and our ecosystems over mining is choosing long-term jobs over short-term jobs that cannot be passed on to

the next generation The bottom line is that we live in a hungry world and Queensland is well placed to be a

reliable and sustainable source of food to other nations without the agricultural potential we are endowed with

(Government 2014)

Tourism and recreational fishingDespite setbacks due to the high Australian dollar and loss of skilled workers to the mining boom the

tourism industry is still a critical part of the Queensland economy with massive future potential (Dr Tien Duc

Pham 2015) The tourism industry made a significant employment contribution providing 124000 jobs in

2010ndash11 with steady growth in international visitor nights (Deloitte Access Economics 2012) Queensland

has the potential to become a global leader in tourism and ecotourism and by doing so to create more

jobs and revenue (Government 2014) This will be possible similarly as in agriculture by promoting the

experiences available in our natural places and the quality hospitality we can provide to the growing Asian

middle class (Wilson 2013) The Chinese tourism market is seeking clean fresh and new experiences that

Queensland can cater to and is expected to be worth $74 billion by 2020 (Guterres 2014) Significant to

Queenslandrsquos potential in tourism is our ability to expand the tourism industry in the authentically Australian

rural and stunningly beautiful coastal mining communities where new economic activities are most needed

Further mining expansion in such places threatens to do to tourism what the growth in heavy industry did to

Gladstonersquos economic diversity where fishing and tourism are now non-existent

Although sustainably managed fisheries have the potential to provide continued economic prosperity to

Queensland there lies a major opportunity in net free fisheries to develop as tourism industries specifically

in coal mining regions A great recent example of this taking place is the newly established Net Free Zone

between from the Northern end of St Helens beach to Cape Hillsborough (Spelitis 2015) Along with three

other net free zones across the state the extent of the cumulative commercial opportunities for sustainable

tourism the net free zones have created has made it one of the three pillars as part of the 2020 vision for the

Queensland has the opportunity to develop an abundant and resilient agricultural industry that supports the transition to sustainable prosperity

18 | JOBS AFTER COAL A Just Transition for Queensland

Queensland Tourism Industry Council (Council 2015) The Mackay Isaac and Whitsunday (MIW) coal mining

region has excellent accessibility to a variety of fishing pursuits In addition to the new net free zone ther are

five fresh water stocked impoundment fisheries creating opportunities to promote lake beach offshore and

deepwater angling Improvement of accommodation facilities quality of jetties access roads and coordinating

fish trails with regional events could maximise visitation from recreational and tourism markets (Mackay

Tourism Tourism Queensland 2012) Charter fishing operatiors tackle stores campsites motels boat sales

boat building and maintenance all have the opportunity of benefitted from growth from the recreational fishing

tourism industry (Lucas DLGP 2012)

Higher educationOver the past decade millions of international students have visited Queensland for our quality tertiary

institutions and enjoyable lifestyle International education is Queenslandrsquos biggest service export with

nearly $2431 million being generated in 2013ndash14 alone (Australian Government 2014) The majority

of Queensland is strategically located in the latitudinal tropical zone where at a global level more than

50 of the worldrsquos population is forecasted to live by 2050 (Australian Government 2015) This makes

Queenslandrsquos universities well placed to develop the partnerships and research innovations tailored to the

challenges and opportunities of the new tropically-oriented world This will help Queensland and especially

North Queensland to attract increasing levels of international students to be part of our high-quality tropical

research institutions These students will increase spending through tourism support the creation of our own

skilled and globally connected workforce and connect Australia to business networks and opportunities across

the world In 2013ndash14 the Cairns region benefitted to the tune of $1375 million from international students

(McGuiggan 2014) With the right policies these benefits already being experienced primarily in Cairns

Townsville and Brisbane can be spread further across Queensland to make international education a strong

economic driver in transitioning mining communities

Bio-industrial productsAs the world moves away from fossil fuels the demand for cleaner more sustainable fuel sources will grow

(Emissions 2014) By using excess organic matter produced through food production to develop bio-industrial

products Queensland has the potential to export clean and sustainable fuels and bio-plastic materials to the

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Tourism is about experiences not extraction It has the potential to share Queensland beauty with the rest of the world and create sustainable local economies in the process

Queenslandrsquos greatest resource is the minds of its people We can share and co-create our innovations and learning with students from all over the world who want to make Queensland the launch pad for their careers

JOBS AFTER COAL A Just Transition for Queensland | 19

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Sorghum fields

20 | JOBS AFTER COAL A Just Transition for Queensland

Queensland is well placed to develop biofuel products from waste and oil crops such as Pongamia and algae

in addition to using the statersquos advanced sugarcane industry to convert excess cane using efficient cellulosic

processes Recent scientific developments in bio-plastics at the University of Queensland show that as a

state Queensland has the skills and ability to build a bio-industrial products industry that can contribute to a

sustainable economic future (Queensland 2015)

Renewable energyQueensland the sunshine state has enormous potential to generate electricity from the sun wind and waves

in addition to many other abundant renewable energy sources (Green 2012) Renewable energy has for a long

time been the catch cry from environmentalists as the complete solution to creating the jobs necessary to

replace the fossil fuel industry This report has been written partially to show recognition that as much as

renewable energy has the potential to create more jobs and replace fossil fuel domestic energy production it

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Gemasolar solar thermal power station Spain

JOBS AFTER COAL A Just Transition for Queensland | 21

cannot completely replace all of the coal

export industry jobs Numerous studies

show that with strong climate policies

over 7100 jobs can be created in

Queensland through renewable energy

by 2030 (Institute 2011) Thousands of

these jobs will be in regional

Queensland These should be prioritised

for regions where the mining industry

has developed rural communities in

need of new economic opportunities Far

North Queensland is especially suited to

further renewable energy investment

because of its climatic conditions and

because of the expensive transmissions

losses from having energy wired from

southern power sources (Allen 2011)

This makes it essential that government

policy ensures that the fair share of the

$35 billion in potential renewable

energy investment goes to rural mining

communities not only where it is most

needed economically but where it

makes the most business sense

(Department of Employment 2009)

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Queensland has the potential to become a smart sunshine state powered by clean and sustainable renewable energy By doing this we will be creating jobs in rural mining communities where they are needed most and building a foundation for a new sustainable economy

22 | JOBS AFTER COAL A Just Transition for Queensland

4 Community transitions Global case studies

There are communities around the worldwhich have reinvented themselves after the end of coal mining and

developed prosperous economies in doing so It has been a struggle but where there is a level of government

support inspired local leadership and the community is working together to regenerate its economy it has

been possible (Coal 2015) We are not suggesting any of these examples can be directly transferred to

Queensland communities facing the end of coal mining The object of these case studies is not to provide a

blueprint for Mackay Gladstone Rockhampton or mining towns in Central Queensland but to show the

diversity of ideas that have worked in other places that might stimulate our local communities to reinvent

themselves too

Hazelwood coal power station La Trobe Valley Vic

JOBS AFTER COAL A Just Transition for Queensland | 23

La Trobe ValleyIn the brown coal producing region of the La Trobe Valley in Victoria a grassroots transitionary force has been

underway for the past fifteen years Earthworker was set up by union and climate change activists seeking a

real alternative to coal and privately owned business models Earthworker Cooperativersquos mission is to create

jobs that respond to the lsquochallenges of climate change and the need for local job creation by facilitating the

establishment of worker-owned cooperatives hellip in sustainability-focused industriesrsquo (Earthworker 2015)

Their current focus is the establishment of a cooperative producing solar hot water systems in partnership

with an existing business called lsquoEverlast Hydro Systemsrsquo Their goal is to take production to Morwell in the

La Trobe Valley where workers are in need of an alternative to the coal industry The unique cooperative model

has made selling arrangement possible through inserting the option to buy a solar hot water system through

enterprise bargaining agreements

BanwenThe DOVE workshop in Banwen South Wales (Dove 2015) was started by agroup of women who during

the 1984ndash85 coal minersrsquo strike decided that community-based education was the most practical path to

regenerate the local economy Setting up shop in an abandoned mine office they developed a series of adult

education workshops for women Three decades later the DOVE building hosts a diverse set of small-scale

entrepreneurs including a daycare a library a community garden and a cafeacute featuring local foods

OrkneyOrkney like Central Queensland is a relatively isolated place with a scattered population Situated at the

top of Scotland two hours from the mainland by ferry Orcadians like Central Queenslanders often feel

like spectators to what goes on in the rest of their country They also feel vulnerable to central government

decisions and are often irritated by the lack of understanding of island life on the part of distant authoritiesmdash

its particular customs dialect and ways of doing things Since Norse times Orkney islanders burned peat (a

very young form of coal) as their primary fuel source but all the peat has been dug up This traditional way

of life where each farming family had its own peat bank and spent long summer days cutting and drying

peats while sharing picnics as children played is gone Another non-renewable energy source North Sea oil

discovered in the 1970s brought positive and negatives for the island It turned the tide of depopulation but

like the peat banks the oil is depleting and another lsquoend of an erarsquo is approaching Orcadians have woken up

to the fact that they canrsquot continue to hark back to the past and are confronting the issues of a future without

fossil fuels

Over the last three decades European community funding has helped Orkney to equip itself for the green

energy revolution Orkney now plays a global role in the evolution of wave and tidal technologies and

significant research and development work is creating new employment opportunities A high school in

Stromness was converted into the European Marine Energy Centre and is now a world leader providing

developers the opportunity to test full-scale prototypes in the sea The worldrsquos largest single-rotor tidal turbine

24 | JOBS AFTER COAL A Just Transition for Queensland

was the first in Scotland to be connected to the national grid from this centre Marine energy combined with

an expansion of wind turbines means that the island is now self-sufficient in electricity These renewable

energy developments have created jobs in the Orkneys in civil works and erection grid connection and

communications (Stuart 2011)

Investment in renewable energy and its associated RampD has attracted people to live work and study on the

island Islanders used to have to leave to get tertiary education but it is now possible to study for an MSc in

renewable energy at a Heriot Watt University campus in Stromness A new generation of Orcadians have grown

up to see renewable energy as the way of the future something quite ldquonormalrdquo which will provide greater

opportunities for their children to stay on the island with genuine prospects for employment in meaningful

jobs requiring a wide range of skills and qualifications This shows what a community in transition to a low

carbon future can look like

Nord-Pas De CalaisUntil 1986 the north-east region of France Nord-pas de Calais was a major coal mining area It still boasts

huge twin tailings mountains the largest in Europe which have become a tourist attraction It is known

to Australians for the war cemeteries associated with the battle of the Somme in WW1 but it has recently

undergone a remarkable transformation towards a truly sustainable economy Old coal mines at Lens have

been transformed into an art gallery displaying works from the Louvre collection in Paris Hundreds of people

are trained in energy efficiency solar energy and green architecture at a new training centre in nearby Loos-

en-Gohelle

The Chamber of Commerce invited economist and social visionary Jeremy Rifkin of the TIR Consulting

Group and his chief economist Skip Laitner to apply their model of the third industrial revolution to the

district (Riftkin 2015) Rifkinrsquos Third Industrial Revolution combines renewable energy energy efficiency

and the connectivity of the internet Buildings are energy generators and hydrogen is used as energy storage

After working with the community for some time the Master Plan was published in 2013 and envisages

that 100000 new jobs can be created by the transition plan (LLC 2013) Certainly the population has not

declined since mining days and has even slightly increased Inspired local leadership was the key in this

community plus some outside funding to help with the underpinning research

Appalachia (Kentucky)The transition process is just starting here but the community is very organised Kentuckians For The

Commonwealth has been battling the negative effects of coal mining for some decades and is now planning a

transition to ldquobuilding a better future beyond coalrdquo (Commonwealth 2015) Last year they held a conference

in Harlan Kentucky right in the middle of the Appalachian coal fields and invited guests from other US

regions in the same position as well as from Wales It is too soon to see what the outcome of their learning

process will be but they are another example of a community taking its future into its own handsmdashoptimistic

that there is a better future after coal

JOBS AFTER COAL A Just Transition for Queensland | 25

5 A just transition for coal mining communities policy recommendations

The opportunities to transition from unsustainable coal mining to prosperous communities with decent

employment will not just materialise by themselves It will need the political will and the right incentives to

ensure that communities are not left fending for themselves with unemployment increasing and families

in need of long-term welfare But not only is the political will not currently there both major political

parties continue to support the expansion of this sunset industry and by doing so are making the transition

challenges progressively more difficult (Denniss 2012) For too many years governments have uncritically

supported the coal mining sector Entire government departments have been focused on facilitating mining

with tax incentives weakening assessment and approval processes along with providing through tax payer

money established industrial infrastructure to support new projects Government policy often seeks to grow

royalties income by supporting the extraction of as much coal as possible as an escape the challenge of

finding other ways to increase state revenue New sustainable industries in coal communities will need just as

much if not more support while it gets started

We propose that communities local businesses workers unions community groups environment groups

local government and state and federal governments all need to be involved in planning a transition to

alternative forms of economic development and providing new jobs We call this a Just Transition (Anthea

Bill amp Evans1 2008 Brecher 2012) Just Transition is a framework for a fair and sustainable shift to a low

carbon economy proposed by trade unions and supported by environmental NGOs A Just Transition holds

that a shift to a lower carbon economy is vital to avoid dangerous climate change

Bimblebox Nature Refuge

26 | JOBS AFTER COAL A Just Transition for Queensland

Tough targets to cut greenhouse pollution supported by new environmental regulations and emerging carbon

markets will transform the global economy over the next decade These shifts will have major implications

for working people in energy supply industry and transport and for everyone as consumers There is a concern

that significant periods of economic restructuring in the past have often happened in a chaotic fashion

leaving ordinary workers along with their families and communities to bear the brunt of the transition to

new ways of producing wealth A just transition seeks to prevent such injustice becoming a feature of this

transition suggesting that it would not only be morally wrong and socially damaging but would undermine the

credibility of the transition itself and could slow or even halt the changes that must be made

It is through the challenges of communicating the urgency of climate change and other social and

environmental impacts that much of the debate about coal and its consequences for land water and the

climate has become unnecessarily adversarial and polarised Coal mining and power generation communities

deserve acknowledgement and appreciation for all that they have historically and currently contributed to

our country and our economy In communicating the economic shifts that are taking place and facilitating

the necessary transitions the Australian community needs to be respectful of the history and identity of coal

communities Environment groups government unions and the community need to initiate and engage in

the discussions about transitions in an open honest and compassionate manner Only by approaching the

transition in this way can the adversarial nature of the debate be broken down to make way for transformative

mutually respectful and holistic solutions

Whitsundays lsquoHave a Heart for the Reefrsquo

JOBS AFTER COAL A Just Transition for Queensland | 27

A just transition recognises that support for policies are conditional on a fair distribution of the costs and

benefits of those policies across the economy A just transition should also recognise that the creation of

opportunities for active engagement by those affected in determining the future wellbeing of themselves

and their families is essential for the long term empowerment of citizens and communities The following

recommendations have been written with the aim of emphasising such community empowerment as a priority

Recommendations

1) Establishing a unit within the State Government to support coal mining regions to transition to new economies

Specific institutions are needed to develop transition plans They need to have strong government support

and funding regional offices and representation from diverse stakeholders A dedicated unit within the

Department of Infrastructure Local Government and Planning could be established to oversee this work

They could work on the ground in the main coal mining communities to bring government expertise into

regional entities that would develop local plans that involve and empower the whole community This unit

or a connected unit would analyse existing barriers to the creation of competitive advantages for alternative

sustainable industries and would identify actions the State Government can take to support such creation

Any policy and support should come with clear conditions and timeframes These regional entities would

need generous budgets to assist local groups to develop their transition strategies to support research re-

training and the development of new business and community start-up initiatives based on the needs and

strategies of communities The key to communities becoming economically resilient is high levels of autonomy

and freedom in shaping their economic futures Research funding available to the regional entities will be

essential to the empowerment of local leadership Research funding should at least reach the OECD research

funding average and it should prioritise low carbon technologies and industry sectors with increased triple

bottom line sustainability potential

2) Support community leadership in diversifying local economies through the establishment of democratic regional entities

In each mining community a group of traditional and non-traditional community leaders willing to think

beyond lsquoBusiness as Usualrsquo to imagine a better future could be called together to work in collaboration with

and be resourced by the state government managed regional entities mentioned in recommendation one

The leaders would come from diverse backgrounds such as from local governments business associations

unions farming groups renewable energy businesses and educational institutions The objectives of these

leadership groups would be tailored to each community The objectives would in broad terms be to increase

employment in new diverse industries based on sustainable production and publicservice sector job creation

Expert facilitation alongside inclusive and democratic community engagement initiatives would be essential

to ensure the process and environment for creativity and innovation is maximised To develop such groups

it would be necessary to take stock of the existing resources skills and successful businesses on which a

new future can be built In addition an analysis of the social environmental and economic needs of the

28 | JOBS AFTER COAL A Just Transition for Queensland

community would also be beneficial These groups could then establish economic diversification projects

including value-added local production worker controlled co-operative enterprises and new community-

based enterprises that economically empower the local community Activities may also include support for

alternative industries in regard to process restructuring or subsidising the wages of workers displaced from

higher paying traditional industries

3) Support researching and communicating how the just transition can take place

Consistent research is needed on the best options to support the state and national economies to transition

This requires ongoing situational analysis of the global energy market shifts at both government levels In

addition each mining region will need assistance to research the number of jobs that are dependent on coal

the skills of those employed the level of local national and global long- and short-term risk to local mining

operations the transferability of jobs to other industries local opportunities for new enterprises and their

needs and the local educational and training needs and resources A key issue requiring research will be

around how the transitition scenarios differ depending on the level and relativity of thermal and coking coal

industries across coal mining communities The process for sourcing this information at a local and state

government level should be integrated into a policy feedback loop to support cyclical situational analysis and

policy adjustments from all levels of government This research should take place at the state level and be

encouraged at the industry and local level through grants

Mackay Central Queensland

JOBS AFTER COAL A Just Transition for Queensland | 29

4) Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

Many existing Queensland industries including those not highlighted in this report have the potential to

carry Queensland towards a new sustainable economy [sC5]mdashbut they will need support to do so Instead

of continuing to support and lower costs for the coal mining industry we need a plan to grow competitive

advantage across industries that have potential for sustainability and growth in regional mining communities

Along with industry and community organisations the State Government could organise a State Economic

Summit to assess existing industry clusters identify the potential of new and emerging industries consider

their competitiveness and key capabilities and identify barriers to increasing competitive advantage The

findings and recommendations from this Summit could be used to inform the work of the Unit established in

bullet point one above and the research outlined in bullet point two

5) Provide social protection of workers their families and incomes

If mines close suddenly workers need protection for their incomes and social services and possible relocation

even though many miners these days do not live in the communities where they mine Ideally these transition

plans would be developed early enough to ensure that new employment opportunities are in place for them

before mines actually close For many workers this is already too late but if the process begins now there will

be choices available for future retrenched coal workers who live in mining communities and regions Mining

companies could be incentivised andor penalised to give adequate notice to workers and other stakeholders

that closure may be impending and alternative economic opportunities need to be developed

6) Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

Involving the relevant unions in the planning of community transitions can enable them to move towards

becoming more proactive agents helping to plan the transition with critical networks and specific knowledge

about the needs of their members When a coal-fired power station in Washington State USA was scheduled

for closure for environmental reasons unions played a pivotal role persuading environmentalists and others

to delay the closure long enough for a Just Transition to provide different jobs for the workers This made it

possible for the coal resource to be replaced by wind and other renewable generation rather than natural

gasmdasha better environmental outcome and the unions became an active part in the phase out planning

Unions have a heavy workload defending workers rights and pay They need to be supported and financed to

play important roles in community transitions From facilitation and leadership of planning bodies career

planning and advice preferential hiring for displaced workers in the new alternative emerging industries and

leading the establishment of work controlled cooperatives unions have an essential role to play

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

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After Coal (2015) Community Regeneration West Virginia United States httpaftercoalcomengage-your-community Retrieved 10th of November 2015

Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

Arabella Advisors (2015) Measuring the Growth of the Global Fossil Fuel Divestment and Clean Energy Investment Movement httpwwwarabellaadvisorscomwp-contentuploads201509Measuring-the-Growth-of-the-Divestment-Movementpdf Retrieved 10th of November 2015

Australian Bureau of Statistics (2014) Australian National Accounts State Accounts 2012ndash13 Canberra Australia Retrieved 10th of November 2015

Australian Bureau of Statistics (2015) MackaymdashCensus Employment by IndustrymdashTime Series Australian Government Department of Employment Retrieved 10th of November 2015

Australian Government Department for Education and Training (2015) Draft National Strategy for International Education Canberra Australian Capital Territory Retrieved 10th of November 2015

Australian Government (2014) Export income to Australia from international education activity in 2013ndash14 Canberra Australia Retrieved 10th of November 2015

BHP Billiton (2013) Coal Briefing httpwwwbhpbillitoncom~mediabhpdocumentsinvestorsreports2013130529_coalbriefingpdf Retrieved 10th of November 2015

Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

Beyond Zero Emissions (2012) Laggard to Leader How Australia Can Lead the World to Zero Carbon Prosperity Melbourne University Melbourne Victoria Retrieved 10th of November 2015

Beyond Zero Emissions (2014) A Fossil Economy in a Changing World Melbourne University Melbourne Victoria httpmediabzeorgaufossileconomyFossilEconomypdf Retrieved 10th of November 2015

Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

One Million Climate Job Campaign (2015) About London United Kingdom httpclimatejobsorgzaabout Retrieved 10th of November 2015

Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 18: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

8 | JOBS AFTER COAL A Just Transition for Queensland

20

14

US

$t

0

100

200

300

400

2005 2007high quality high coking semi-soft coking

2009 2011 2013 2015

Figure 5 Coking Coal Prices 2005ndash2015 (worldcoalcom)

A similar price drop has hit thermal coal used in coal-fired power stations Thermal coal is mined in many

Surat Basin mines and is also found in some Bowen Basin mines where it is an addition to the high quality

coking coal found in the area Significantly the proposed mining development in the Galilee Basin is only

for thermal coal which at a time when coal-fired power stations are being replaced by cleaner options is

alarming (Pacific 2012) Thermal coal was priced at US$120tonne in late 2011 It had plunged to US$73

per tonne by February 2015 and has remained below US$60tonne since May 2015 Chinarsquos new rules of

cutting ash and sulphur content in seaborne coal imports along with increasing tariffs on coal imports has

meant that even Shenhua Chinarsquos biggest coal company cut coal imports in early 2015 (Jenda 2015)

Overall Chinese consumption dipped by 16 in 2014 despite their economic growth of 73

The decade of relentless and largely unplanned investment in Queensland coal mining in times of high prices

led to a massive oversupply against a background of decreasing demand The state and federal governments

failed to slow the industry down so that it did not overshoot an economically sustainable size This has made

the challenge of transitioning out of the industry even harder along with magnifying the pain now faced by

many mining towns (Neubauer 2015) All of this leaves a million-dollar question Is the downshift in [coal]

demand terminal According to Richard Gibbs from the Macquarie Bank it certainly is (Neubauer 2015)

The global coal market is also experiencing competition from renewables and shale gas slow growth and

government policies which are in part driven by the threat of climate change

The growing competition from renewable energy sources has been increasing its impact on the coal industry

by slowly but steadily eroding profits of domestic coal power stationsmdashand thus demand for coalmdashacross the

country (Hewson 2015) In Queensland the state government should be applauded for its 50 renewable

energy target by 2030 which will further add strain to struggling coal power generators (Parkinson 2015)

A more than 50 decline in coal prices has seen most listed coal companies globally to lose 80ndash90 of their

equity market value in the last four years (Buckley 2014) In 2014 the world added more energy generation

capacity from wind power than from coal Overall Europe and America have already cut coal-fired generation

JOBS AFTER COAL A Just Transition for Queensland | 9

capacity by over a fifth in a decade The sun will undoubtedly rise even further for renewable energy in 2015

but for coal there remains a lot further to fallrdquo said a report by the Institute for Energy Economics and

Financial Analysis in January 2015 (Buckley 2015a)

This statement is borne out by the facts

bull In 2014 new global wind installations grew 40 to 46GW led by China and America (Buckley

2015b)

bull In 2014 the US solar installation sector created almost 50 more jobs than the oil and gas pipeline

construction industry (Foundation 2015)

bull From 2000 to 2011 global annual growth in the yearly global installation rate of photovoltaic solar

panels was 40 In 2011 the total amount of global PV capacity installed was 27GW an astonishing

60 growth on 2010 levels (Green 2012)

bull Unsubsidised renewable energy is now cheaper than new coal-fired power in Australia (Paton 2013)

Solar installation

10 | JOBS AFTER COAL A Just Transition for Queensland

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

Coal power station

JOBS AFTER COAL A Just Transition for Queensland | 11

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

The outlook for coal pricesWhile some consider the outlook for coal prices as cyclical in nature and that a turnaround will increases

prices for coal other analysts believe this downward trend based on policies health impacts and concern

about global warming is here to stay

Financial reports from the major mining companies in Australia paint a grim outlook for global metallurgical

coal prices China was once the great hope for coking coal exporters but BHP Billitonrsquos metallurgical coal

market outlook (May 2013) indicated a flattening demand into the future (Billiton 2013 Rohr 2014)

BHP Billiton has warned that the increased usage of scrap metal in furnaces would result in lower growth in

demand for pig iron while greater production from electric arc furnacesmdashwhich use little or no coking coalmdash

are expected to ldquocontribute a significant share of total Chinese steel production by 2030rdquo Although coking

coal will likely remain necessary for steel production for some time as renewable energy sources grow the

efficiency and lower emissions intensity of electric arc furnaces will help them to outcompete coking coal in

the not too distant future Some experts even predict another technology called lsquodirect reduced ironrsquo that uses

gas to make steel could make coking coal redundant within a decade (Macleod 2013)

It is not just China BHP Billiton also cautions that the Indian steel outlook is less certain as steel production

growth has been slower than expected Prices for commodities from iron ore to coal are sinking as Chinarsquos

leadership tries to steer the economy away from debt-fueled property investment and smokestack industries

embracing services and domestic-led consumption At the same time President Xi Jinping is stepping up efforts

to combat pollution The provincial government of Beijing and a number of other major cities have made plans to

ban coal use by 2020 further putting the squeeze on all types of heavy industry (Coulter 2015)

However the outlook is not all dismal for coal everywhere In India demand is expected to continue to rise

without peaking until the 2030s Indiarsquos government predicts a 19 rise in coal imports this year which

may offer very short-term opportunities for Australian miners The opportunities are short term because these

import increases are something the Indian government has indicated it does not want continued into the

future Indiarsquos plan is to ramp up renewable energy technology as well as develop their untapped coal fields

to support a gradual phase out of thermal-coal imports within the next 2ndash3 years (Baker 2014) Regardless

the Indian mining giant Adani still hopes it can get coal from its proposed Carmichael mine in the Galilee

Basin and export it to India for the duration of its 60 year life span After a number of international banks

have ruled out funding for the Carmichael coal mine Adani has been looking for cash handouts from the

Australian Government to fund its shaky proposal However sanity has prevailed and these have been ruled

out by the new Prime Minister (Edis 2015) It is clear the Indian governmentrsquos plan for Indiarsquos future coal

supply sources does not involve Australian coal

12 | JOBS AFTER COAL A Just Transition for Queensland

This is the marketplace in which Australiarsquos exported coal competes and this is the marketplace that holds the

livelihoods of workers and communities in its hands The current state and future outlook of the coal industry

suggests that it would be risky not to scale down the thermal coal industry and at least restrict any new mine

expansions in the coking coal sector There are those who remain positive about the industryrsquos future but

recent events in the coal industry and uncertainty over medium and long term suggest that there are better

industries to back Behind these diverse risks threatening the coal industry is the inescapable scientific

fact that we cannot afford to burn any more coal from new coal mines if we want to decrease the risk of our

already fifty fifty chance of avoiding the worst impacts of global warming (IPCC 2013) If we wanted to try

and remove the total risk of runaway climate change we could not even afford to burn the coal that are sitting

in trucks on trains at port yards and in ships Not even the coal travelling on conveyors into power station

furnaces about to be burnt right this very moment

The carbon bubbleFrom the South Sea Bubble as well as the housing and dotcom bubbles of the last decade periodic over-

investment has been made into sectors deemed too important to fail The rush and hubris of investors seeking

incomparable profits to finance such industries has led to speculative bubbles of over-estimated value that

eventually burst In the economic fallout that results working people carry the burden while the speculators

and profiteers generally are not held accountable Another speculative bubble has formed and it dwarfs the

size of all of the bubbles that have come before it It is called the Carbon Bubble (Tracker 2015)

One of the few things world leaders agreed upon at the Copenhagen climate talks was that the Earth needs to

stay below 2degC warming to minimize the risk of runaway climate change

bull If we are to avoid going over 2degC we can emit only 565 more gigatonnes of carbon dioxide (IPCC 2007)

bull Burning the fossil fuel that corporations now have in their reserves would result in emitting 2795

gigatonnes of carbon dioxidemdashfive times the safe amount (Leaton 2013)

The Intergovernmental Panel on Climate Change has now produced its own carbon budget They have calculated

that if we continue pumping carbon into the atmosphere at todayrsquos rate this budget will be exhausted within

15ndash25 years (IPCC 2013) This means there will be growing political pressure on the fossil fuel industry to

keep most of its reserves in the ground That pressure has already begun around the world Citizens are pressing

their superannuation funds councils banks universities and other institutions to divest from fossil fuels with

growing success The year 2013 saw several major financial institutions recognise the financial and ethical

implications of continuing to finance fossil fuels with Norwegian Storebrand Rabobank and the World Bank

among those who made major announcements on divestment or cutting loans In 2014 major institutions

including Stanford University the Australian National University and Oxford University have divested their fossil

fuel funds (Advisors 2015) So far in 2015 local councils in Australia such as Moreland Newcastle Byron Bay

Melbourne and many more have also divested (Ryan 2015) Divestment is now going mainstream and will have

increasing impacts on fossil fuel company shares into the future

JOBS AFTER COAL A Just Transition for Queensland | 13

As a result of the momentum of the global divestment movement international stock exchanges are creating

new indexes to exclude fossil fuels in preparation of the impending seismic shift in global finances In late

April 2014 the worldrsquos largest fund manager Blackrock joined with the FTSE Group in London to create

a new index The ex-Fossil Fuels Index Series is an innovative set of benchmark indices that excludes

companies directly engaged in extracting so-called ldquostranded assetsrdquo in the hydrocarbons industry ldquoThis

is one of the fastest-moving debates I think Irsquove seen in my 30 years in marketsrdquo FTSE managing director

Kevin Bourne told the Financial Times (Clarke 2014) The Bank of England is now investigating its exposure

to risk from its fossil fuel investments To top that off the worldrsquos biggest sovereign wealth investment fund in

Norway has recently dumped coal investments (Carrington 2015) The largest contribution to climate change

from the fossil fuels in company inventories at present is from coal Because it has the largest climate impact

per unit of useful energy it is being targeted for early phase out

The book value of fossil fuel companies is determined not only by their current infrastructure and deposits

undergoing extraction but also by the size of their legally claimed reserves Because the book value of so

many companies has greatly exceeded their realisable value as emissions restrictions come into place a

speculative bubble has formed Unfortunately bubbles usually burst in the end leaving behind stranded

assets and stranded capitalmdashand leaving workers in the lurch The only alternative is a mature and planned

phase out of the industry that slowly devalues and deregisters fossil fuel reserves at a pace that does not lead

to financial crisis A planned phase out that gives time for just employment transitions for fossil fuel

communities

500

1000886

565

1500

2000

2500

3000

already burnt

remaining

2000ndash2050

2011ndash2050

Coal 2˚Global carbon

budget

Oil

Gas

GtC

O2

Global fossil fuel reserves

Figure 6 Carbontracker 2012 report The Carbon Bubble

14 | JOBS AFTER COAL A Just Transition for Queensland

In 2013 the report Unburnable Carbon highlighted that ldquoCompany valuation and credit ratings

methodologies do not typically inform investors about their exposure to these stranded assetsrdquo (Leaton

2013) This is very troubling when considering that the supporting share value of these reserves was $4

trillion in 2012 and that they serviced $127 trillion in outstanding corporate debt over the same period We

need to challenge these methodologies (Tracker 2015) In a move that signals a step towards the solutions

required the World Bank the European Investment Bank and the US Export-Import Bank have all announced

that they will not fund further coal-fired power plants except in exceptional circumstances As changes in

policy by the major coal consumers the uptake of renewables and the need to stay within the global carbon

budget begin to bite it is high-cost producers who will be squeezed first Australia is considered a high-cost

producer because of our strong industrial relations and wage laws which makes it all the more necessary that

our governments are vigilant and prepared for impending macroeconomic change (Cleary 2015)

SummaryThis is the environment in which the Australian coal industry finds itself Internationally coal is no longer

looking like a safe long-term investment within the context of the rapid changes afoot in the world The coal

industry leaders are either in denial about their industryrsquos future or are determined to squeeze as much profit

as possible until the cost gets worn by workers and their communities (Saunders 2015)

The issues of climate change demands for cleaner air and more efficient new technologies The realities of

the market are revealing coal as the sunset industry it really is This is not an industry Queenslanders can

rely on to create a stable resilient and sustainable economy It cannot be relied upon for future wealth

and future jobs We have been warned by the UN Climate Change Secretariatrsquos Executive Secretary that the

diversification and a managed transition away from coal is what we need to do and we need to heed this

warning (Australian 2015)

JOBS AFTER COAL A Just Transition for Queensland | 15

3 Assessing some of the economic opportunities in mining regions

IntroductionThe great state of Queensland is endowed with sustainable human and environmental resources that have the

potential if we choose to harness it to drive a balanced diverse and resilient economy for generations to

come Diversifying Queenslandrsquos economy to create sensible and stable prosperity beyond the boom and bust

vagaries of the mining industry must be a key objective of the Queensland Government The Newman LNP

Governmentrsquos Queensland Plan headline was lsquoforging diversity and prosperityrsquo (Government 2014) But

throughout Newmanrsquos reign as premier no action was taken Under the new Palaszczuk Labor Government

there has been some effort to support economic diversification across the state This is insufficient because as

of yet nothing has been done to adequately fund facilitate and empower the actual communities where

mining takes place The grassroots Labour Environmental Action Network an organisation within the

Australian Labour Party has called for change At the 2015 Queensland ALP State Conference they put

forward a motion that was passed calling on the state government to prepare a just transition policy before the

next conference (ALP 2015)

Grain harvest

16 | JOBS AFTER COAL A Just Transition for Queensland

Most importantly both major parties have continued their relentless support for further coal mine expansions

that inherently suffocate the process of diversification

With the coal industry forecast to be in a lsquostructural declinersquo by political leaders and bankers alike it is now

essential that the focus for economic development be on industries that can bring sustainable prosperity to

Queensland (Burrell 2014 Robins 2014) In the United Kingdom under Prime Minister Thatcher the world

witnessed the consequences of industries closing without planning and without investment to transition local

communities and industries

The following section of the report outlines how the opportunities for sustainable economic development

are already known Queensland has well-established sectors with bountiful potential in agriculture tourism

manufacturing and education It also has the opportunity to capitalise on a boom in renewable energy and

bio-industrial products to create more sustainable economic sectors These industries are ready to fill the

void that will be and is being left by coal however they lack the support needed to ensure their presence in

mining communities to provide a just transition away from coal where it is most needed

Agriculture and aquacultureCurrently the Queensland agricultural sector is worth near $147 billion and employs over 90000 people

(Queensland Government 2012) The sector has the potential to massively expand its food exports to Asia as

population and economic growth continue to surge in the dynamic economic region Through the competitive

advantage of our proximity to Asia and high-quality produce capabilities agricultural products have become

Queenslandrsquos second largest export earner and have the potential for continued growth (Heath 2014) By

increasing availability of farming technology driving productivity minimising costs and focusing on profitable

premium produce markets the Queensland Agricultural Strategy (2012) aims to double the total value of

production for all agricultural commodities by 2040 With innovative new farming approaches and ecosystem

system management strategies such increases in production are possible in a way which sustainably manages

and regenerates the land

To reduce pressure on fish stocks from home and abroad the promotion of aquaculture could be further

encouraged across the state This industry is worth $10 Million a year (Lucas DLGP 2011) At present

there are several sites located along the coast however research conducted over the last decade has

identified future sites for land based aquaculture Industry consultation aquaculture management training

programs and related issues in developing a workforce need to be considered (Plan 2012) The Queensland

Aquaculture Industry Federation sees the need for continued collaboration between government and other

stakeholders in order for this industry to reach itsrsquo potential as a strong core industry (Federation 2015)

The Department of Employment Economic Development and Innovation is leading the government drive to

JOBS AFTER COAL A Just Transition for Queensland | 17

develop the aquaculture industry This could see a future where aquaculture goes further than just meeting

domestic demand and grow to cater for high value export markets (Lucas DLGP 2011)

New opportunities in animal genetics aquaculture horticulture and bio-processing are driving agriculture

and aquaculture sector growth in new directions Both industries are about creating intergenerational

economic sustainability Choosing these industries that have unlimited potential to sustain our communities

and our ecosystems over mining is choosing long-term jobs over short-term jobs that cannot be passed on to

the next generation The bottom line is that we live in a hungry world and Queensland is well placed to be a

reliable and sustainable source of food to other nations without the agricultural potential we are endowed with

(Government 2014)

Tourism and recreational fishingDespite setbacks due to the high Australian dollar and loss of skilled workers to the mining boom the

tourism industry is still a critical part of the Queensland economy with massive future potential (Dr Tien Duc

Pham 2015) The tourism industry made a significant employment contribution providing 124000 jobs in

2010ndash11 with steady growth in international visitor nights (Deloitte Access Economics 2012) Queensland

has the potential to become a global leader in tourism and ecotourism and by doing so to create more

jobs and revenue (Government 2014) This will be possible similarly as in agriculture by promoting the

experiences available in our natural places and the quality hospitality we can provide to the growing Asian

middle class (Wilson 2013) The Chinese tourism market is seeking clean fresh and new experiences that

Queensland can cater to and is expected to be worth $74 billion by 2020 (Guterres 2014) Significant to

Queenslandrsquos potential in tourism is our ability to expand the tourism industry in the authentically Australian

rural and stunningly beautiful coastal mining communities where new economic activities are most needed

Further mining expansion in such places threatens to do to tourism what the growth in heavy industry did to

Gladstonersquos economic diversity where fishing and tourism are now non-existent

Although sustainably managed fisheries have the potential to provide continued economic prosperity to

Queensland there lies a major opportunity in net free fisheries to develop as tourism industries specifically

in coal mining regions A great recent example of this taking place is the newly established Net Free Zone

between from the Northern end of St Helens beach to Cape Hillsborough (Spelitis 2015) Along with three

other net free zones across the state the extent of the cumulative commercial opportunities for sustainable

tourism the net free zones have created has made it one of the three pillars as part of the 2020 vision for the

Queensland has the opportunity to develop an abundant and resilient agricultural industry that supports the transition to sustainable prosperity

18 | JOBS AFTER COAL A Just Transition for Queensland

Queensland Tourism Industry Council (Council 2015) The Mackay Isaac and Whitsunday (MIW) coal mining

region has excellent accessibility to a variety of fishing pursuits In addition to the new net free zone ther are

five fresh water stocked impoundment fisheries creating opportunities to promote lake beach offshore and

deepwater angling Improvement of accommodation facilities quality of jetties access roads and coordinating

fish trails with regional events could maximise visitation from recreational and tourism markets (Mackay

Tourism Tourism Queensland 2012) Charter fishing operatiors tackle stores campsites motels boat sales

boat building and maintenance all have the opportunity of benefitted from growth from the recreational fishing

tourism industry (Lucas DLGP 2012)

Higher educationOver the past decade millions of international students have visited Queensland for our quality tertiary

institutions and enjoyable lifestyle International education is Queenslandrsquos biggest service export with

nearly $2431 million being generated in 2013ndash14 alone (Australian Government 2014) The majority

of Queensland is strategically located in the latitudinal tropical zone where at a global level more than

50 of the worldrsquos population is forecasted to live by 2050 (Australian Government 2015) This makes

Queenslandrsquos universities well placed to develop the partnerships and research innovations tailored to the

challenges and opportunities of the new tropically-oriented world This will help Queensland and especially

North Queensland to attract increasing levels of international students to be part of our high-quality tropical

research institutions These students will increase spending through tourism support the creation of our own

skilled and globally connected workforce and connect Australia to business networks and opportunities across

the world In 2013ndash14 the Cairns region benefitted to the tune of $1375 million from international students

(McGuiggan 2014) With the right policies these benefits already being experienced primarily in Cairns

Townsville and Brisbane can be spread further across Queensland to make international education a strong

economic driver in transitioning mining communities

Bio-industrial productsAs the world moves away from fossil fuels the demand for cleaner more sustainable fuel sources will grow

(Emissions 2014) By using excess organic matter produced through food production to develop bio-industrial

products Queensland has the potential to export clean and sustainable fuels and bio-plastic materials to the

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Tourism is about experiences not extraction It has the potential to share Queensland beauty with the rest of the world and create sustainable local economies in the process

Queenslandrsquos greatest resource is the minds of its people We can share and co-create our innovations and learning with students from all over the world who want to make Queensland the launch pad for their careers

JOBS AFTER COAL A Just Transition for Queensland | 19

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Sorghum fields

20 | JOBS AFTER COAL A Just Transition for Queensland

Queensland is well placed to develop biofuel products from waste and oil crops such as Pongamia and algae

in addition to using the statersquos advanced sugarcane industry to convert excess cane using efficient cellulosic

processes Recent scientific developments in bio-plastics at the University of Queensland show that as a

state Queensland has the skills and ability to build a bio-industrial products industry that can contribute to a

sustainable economic future (Queensland 2015)

Renewable energyQueensland the sunshine state has enormous potential to generate electricity from the sun wind and waves

in addition to many other abundant renewable energy sources (Green 2012) Renewable energy has for a long

time been the catch cry from environmentalists as the complete solution to creating the jobs necessary to

replace the fossil fuel industry This report has been written partially to show recognition that as much as

renewable energy has the potential to create more jobs and replace fossil fuel domestic energy production it

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Gemasolar solar thermal power station Spain

JOBS AFTER COAL A Just Transition for Queensland | 21

cannot completely replace all of the coal

export industry jobs Numerous studies

show that with strong climate policies

over 7100 jobs can be created in

Queensland through renewable energy

by 2030 (Institute 2011) Thousands of

these jobs will be in regional

Queensland These should be prioritised

for regions where the mining industry

has developed rural communities in

need of new economic opportunities Far

North Queensland is especially suited to

further renewable energy investment

because of its climatic conditions and

because of the expensive transmissions

losses from having energy wired from

southern power sources (Allen 2011)

This makes it essential that government

policy ensures that the fair share of the

$35 billion in potential renewable

energy investment goes to rural mining

communities not only where it is most

needed economically but where it

makes the most business sense

(Department of Employment 2009)

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Queensland has the potential to become a smart sunshine state powered by clean and sustainable renewable energy By doing this we will be creating jobs in rural mining communities where they are needed most and building a foundation for a new sustainable economy

22 | JOBS AFTER COAL A Just Transition for Queensland

4 Community transitions Global case studies

There are communities around the worldwhich have reinvented themselves after the end of coal mining and

developed prosperous economies in doing so It has been a struggle but where there is a level of government

support inspired local leadership and the community is working together to regenerate its economy it has

been possible (Coal 2015) We are not suggesting any of these examples can be directly transferred to

Queensland communities facing the end of coal mining The object of these case studies is not to provide a

blueprint for Mackay Gladstone Rockhampton or mining towns in Central Queensland but to show the

diversity of ideas that have worked in other places that might stimulate our local communities to reinvent

themselves too

Hazelwood coal power station La Trobe Valley Vic

JOBS AFTER COAL A Just Transition for Queensland | 23

La Trobe ValleyIn the brown coal producing region of the La Trobe Valley in Victoria a grassroots transitionary force has been

underway for the past fifteen years Earthworker was set up by union and climate change activists seeking a

real alternative to coal and privately owned business models Earthworker Cooperativersquos mission is to create

jobs that respond to the lsquochallenges of climate change and the need for local job creation by facilitating the

establishment of worker-owned cooperatives hellip in sustainability-focused industriesrsquo (Earthworker 2015)

Their current focus is the establishment of a cooperative producing solar hot water systems in partnership

with an existing business called lsquoEverlast Hydro Systemsrsquo Their goal is to take production to Morwell in the

La Trobe Valley where workers are in need of an alternative to the coal industry The unique cooperative model

has made selling arrangement possible through inserting the option to buy a solar hot water system through

enterprise bargaining agreements

BanwenThe DOVE workshop in Banwen South Wales (Dove 2015) was started by agroup of women who during

the 1984ndash85 coal minersrsquo strike decided that community-based education was the most practical path to

regenerate the local economy Setting up shop in an abandoned mine office they developed a series of adult

education workshops for women Three decades later the DOVE building hosts a diverse set of small-scale

entrepreneurs including a daycare a library a community garden and a cafeacute featuring local foods

OrkneyOrkney like Central Queensland is a relatively isolated place with a scattered population Situated at the

top of Scotland two hours from the mainland by ferry Orcadians like Central Queenslanders often feel

like spectators to what goes on in the rest of their country They also feel vulnerable to central government

decisions and are often irritated by the lack of understanding of island life on the part of distant authoritiesmdash

its particular customs dialect and ways of doing things Since Norse times Orkney islanders burned peat (a

very young form of coal) as their primary fuel source but all the peat has been dug up This traditional way

of life where each farming family had its own peat bank and spent long summer days cutting and drying

peats while sharing picnics as children played is gone Another non-renewable energy source North Sea oil

discovered in the 1970s brought positive and negatives for the island It turned the tide of depopulation but

like the peat banks the oil is depleting and another lsquoend of an erarsquo is approaching Orcadians have woken up

to the fact that they canrsquot continue to hark back to the past and are confronting the issues of a future without

fossil fuels

Over the last three decades European community funding has helped Orkney to equip itself for the green

energy revolution Orkney now plays a global role in the evolution of wave and tidal technologies and

significant research and development work is creating new employment opportunities A high school in

Stromness was converted into the European Marine Energy Centre and is now a world leader providing

developers the opportunity to test full-scale prototypes in the sea The worldrsquos largest single-rotor tidal turbine

24 | JOBS AFTER COAL A Just Transition for Queensland

was the first in Scotland to be connected to the national grid from this centre Marine energy combined with

an expansion of wind turbines means that the island is now self-sufficient in electricity These renewable

energy developments have created jobs in the Orkneys in civil works and erection grid connection and

communications (Stuart 2011)

Investment in renewable energy and its associated RampD has attracted people to live work and study on the

island Islanders used to have to leave to get tertiary education but it is now possible to study for an MSc in

renewable energy at a Heriot Watt University campus in Stromness A new generation of Orcadians have grown

up to see renewable energy as the way of the future something quite ldquonormalrdquo which will provide greater

opportunities for their children to stay on the island with genuine prospects for employment in meaningful

jobs requiring a wide range of skills and qualifications This shows what a community in transition to a low

carbon future can look like

Nord-Pas De CalaisUntil 1986 the north-east region of France Nord-pas de Calais was a major coal mining area It still boasts

huge twin tailings mountains the largest in Europe which have become a tourist attraction It is known

to Australians for the war cemeteries associated with the battle of the Somme in WW1 but it has recently

undergone a remarkable transformation towards a truly sustainable economy Old coal mines at Lens have

been transformed into an art gallery displaying works from the Louvre collection in Paris Hundreds of people

are trained in energy efficiency solar energy and green architecture at a new training centre in nearby Loos-

en-Gohelle

The Chamber of Commerce invited economist and social visionary Jeremy Rifkin of the TIR Consulting

Group and his chief economist Skip Laitner to apply their model of the third industrial revolution to the

district (Riftkin 2015) Rifkinrsquos Third Industrial Revolution combines renewable energy energy efficiency

and the connectivity of the internet Buildings are energy generators and hydrogen is used as energy storage

After working with the community for some time the Master Plan was published in 2013 and envisages

that 100000 new jobs can be created by the transition plan (LLC 2013) Certainly the population has not

declined since mining days and has even slightly increased Inspired local leadership was the key in this

community plus some outside funding to help with the underpinning research

Appalachia (Kentucky)The transition process is just starting here but the community is very organised Kentuckians For The

Commonwealth has been battling the negative effects of coal mining for some decades and is now planning a

transition to ldquobuilding a better future beyond coalrdquo (Commonwealth 2015) Last year they held a conference

in Harlan Kentucky right in the middle of the Appalachian coal fields and invited guests from other US

regions in the same position as well as from Wales It is too soon to see what the outcome of their learning

process will be but they are another example of a community taking its future into its own handsmdashoptimistic

that there is a better future after coal

JOBS AFTER COAL A Just Transition for Queensland | 25

5 A just transition for coal mining communities policy recommendations

The opportunities to transition from unsustainable coal mining to prosperous communities with decent

employment will not just materialise by themselves It will need the political will and the right incentives to

ensure that communities are not left fending for themselves with unemployment increasing and families

in need of long-term welfare But not only is the political will not currently there both major political

parties continue to support the expansion of this sunset industry and by doing so are making the transition

challenges progressively more difficult (Denniss 2012) For too many years governments have uncritically

supported the coal mining sector Entire government departments have been focused on facilitating mining

with tax incentives weakening assessment and approval processes along with providing through tax payer

money established industrial infrastructure to support new projects Government policy often seeks to grow

royalties income by supporting the extraction of as much coal as possible as an escape the challenge of

finding other ways to increase state revenue New sustainable industries in coal communities will need just as

much if not more support while it gets started

We propose that communities local businesses workers unions community groups environment groups

local government and state and federal governments all need to be involved in planning a transition to

alternative forms of economic development and providing new jobs We call this a Just Transition (Anthea

Bill amp Evans1 2008 Brecher 2012) Just Transition is a framework for a fair and sustainable shift to a low

carbon economy proposed by trade unions and supported by environmental NGOs A Just Transition holds

that a shift to a lower carbon economy is vital to avoid dangerous climate change

Bimblebox Nature Refuge

26 | JOBS AFTER COAL A Just Transition for Queensland

Tough targets to cut greenhouse pollution supported by new environmental regulations and emerging carbon

markets will transform the global economy over the next decade These shifts will have major implications

for working people in energy supply industry and transport and for everyone as consumers There is a concern

that significant periods of economic restructuring in the past have often happened in a chaotic fashion

leaving ordinary workers along with their families and communities to bear the brunt of the transition to

new ways of producing wealth A just transition seeks to prevent such injustice becoming a feature of this

transition suggesting that it would not only be morally wrong and socially damaging but would undermine the

credibility of the transition itself and could slow or even halt the changes that must be made

It is through the challenges of communicating the urgency of climate change and other social and

environmental impacts that much of the debate about coal and its consequences for land water and the

climate has become unnecessarily adversarial and polarised Coal mining and power generation communities

deserve acknowledgement and appreciation for all that they have historically and currently contributed to

our country and our economy In communicating the economic shifts that are taking place and facilitating

the necessary transitions the Australian community needs to be respectful of the history and identity of coal

communities Environment groups government unions and the community need to initiate and engage in

the discussions about transitions in an open honest and compassionate manner Only by approaching the

transition in this way can the adversarial nature of the debate be broken down to make way for transformative

mutually respectful and holistic solutions

Whitsundays lsquoHave a Heart for the Reefrsquo

JOBS AFTER COAL A Just Transition for Queensland | 27

A just transition recognises that support for policies are conditional on a fair distribution of the costs and

benefits of those policies across the economy A just transition should also recognise that the creation of

opportunities for active engagement by those affected in determining the future wellbeing of themselves

and their families is essential for the long term empowerment of citizens and communities The following

recommendations have been written with the aim of emphasising such community empowerment as a priority

Recommendations

1) Establishing a unit within the State Government to support coal mining regions to transition to new economies

Specific institutions are needed to develop transition plans They need to have strong government support

and funding regional offices and representation from diverse stakeholders A dedicated unit within the

Department of Infrastructure Local Government and Planning could be established to oversee this work

They could work on the ground in the main coal mining communities to bring government expertise into

regional entities that would develop local plans that involve and empower the whole community This unit

or a connected unit would analyse existing barriers to the creation of competitive advantages for alternative

sustainable industries and would identify actions the State Government can take to support such creation

Any policy and support should come with clear conditions and timeframes These regional entities would

need generous budgets to assist local groups to develop their transition strategies to support research re-

training and the development of new business and community start-up initiatives based on the needs and

strategies of communities The key to communities becoming economically resilient is high levels of autonomy

and freedom in shaping their economic futures Research funding available to the regional entities will be

essential to the empowerment of local leadership Research funding should at least reach the OECD research

funding average and it should prioritise low carbon technologies and industry sectors with increased triple

bottom line sustainability potential

2) Support community leadership in diversifying local economies through the establishment of democratic regional entities

In each mining community a group of traditional and non-traditional community leaders willing to think

beyond lsquoBusiness as Usualrsquo to imagine a better future could be called together to work in collaboration with

and be resourced by the state government managed regional entities mentioned in recommendation one

The leaders would come from diverse backgrounds such as from local governments business associations

unions farming groups renewable energy businesses and educational institutions The objectives of these

leadership groups would be tailored to each community The objectives would in broad terms be to increase

employment in new diverse industries based on sustainable production and publicservice sector job creation

Expert facilitation alongside inclusive and democratic community engagement initiatives would be essential

to ensure the process and environment for creativity and innovation is maximised To develop such groups

it would be necessary to take stock of the existing resources skills and successful businesses on which a

new future can be built In addition an analysis of the social environmental and economic needs of the

28 | JOBS AFTER COAL A Just Transition for Queensland

community would also be beneficial These groups could then establish economic diversification projects

including value-added local production worker controlled co-operative enterprises and new community-

based enterprises that economically empower the local community Activities may also include support for

alternative industries in regard to process restructuring or subsidising the wages of workers displaced from

higher paying traditional industries

3) Support researching and communicating how the just transition can take place

Consistent research is needed on the best options to support the state and national economies to transition

This requires ongoing situational analysis of the global energy market shifts at both government levels In

addition each mining region will need assistance to research the number of jobs that are dependent on coal

the skills of those employed the level of local national and global long- and short-term risk to local mining

operations the transferability of jobs to other industries local opportunities for new enterprises and their

needs and the local educational and training needs and resources A key issue requiring research will be

around how the transitition scenarios differ depending on the level and relativity of thermal and coking coal

industries across coal mining communities The process for sourcing this information at a local and state

government level should be integrated into a policy feedback loop to support cyclical situational analysis and

policy adjustments from all levels of government This research should take place at the state level and be

encouraged at the industry and local level through grants

Mackay Central Queensland

JOBS AFTER COAL A Just Transition for Queensland | 29

4) Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

Many existing Queensland industries including those not highlighted in this report have the potential to

carry Queensland towards a new sustainable economy [sC5]mdashbut they will need support to do so Instead

of continuing to support and lower costs for the coal mining industry we need a plan to grow competitive

advantage across industries that have potential for sustainability and growth in regional mining communities

Along with industry and community organisations the State Government could organise a State Economic

Summit to assess existing industry clusters identify the potential of new and emerging industries consider

their competitiveness and key capabilities and identify barriers to increasing competitive advantage The

findings and recommendations from this Summit could be used to inform the work of the Unit established in

bullet point one above and the research outlined in bullet point two

5) Provide social protection of workers their families and incomes

If mines close suddenly workers need protection for their incomes and social services and possible relocation

even though many miners these days do not live in the communities where they mine Ideally these transition

plans would be developed early enough to ensure that new employment opportunities are in place for them

before mines actually close For many workers this is already too late but if the process begins now there will

be choices available for future retrenched coal workers who live in mining communities and regions Mining

companies could be incentivised andor penalised to give adequate notice to workers and other stakeholders

that closure may be impending and alternative economic opportunities need to be developed

6) Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

Involving the relevant unions in the planning of community transitions can enable them to move towards

becoming more proactive agents helping to plan the transition with critical networks and specific knowledge

about the needs of their members When a coal-fired power station in Washington State USA was scheduled

for closure for environmental reasons unions played a pivotal role persuading environmentalists and others

to delay the closure long enough for a Just Transition to provide different jobs for the workers This made it

possible for the coal resource to be replaced by wind and other renewable generation rather than natural

gasmdasha better environmental outcome and the unions became an active part in the phase out planning

Unions have a heavy workload defending workers rights and pay They need to be supported and financed to

play important roles in community transitions From facilitation and leadership of planning bodies career

planning and advice preferential hiring for displaced workers in the new alternative emerging industries and

leading the establishment of work controlled cooperatives unions have an essential role to play

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

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After Coal (2015) Community Regeneration West Virginia United States httpaftercoalcomengage-your-community Retrieved 10th of November 2015

Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

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Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

Beyond Zero Emissions (2012) Laggard to Leader How Australia Can Lead the World to Zero Carbon Prosperity Melbourne University Melbourne Victoria Retrieved 10th of November 2015

Beyond Zero Emissions (2014) A Fossil Economy in a Changing World Melbourne University Melbourne Victoria httpmediabzeorgaufossileconomyFossilEconomypdf Retrieved 10th of November 2015

Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

One Million Climate Job Campaign (2015) About London United Kingdom httpclimatejobsorgzaabout Retrieved 10th of November 2015

Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 19: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

JOBS AFTER COAL A Just Transition for Queensland | 9

capacity by over a fifth in a decade The sun will undoubtedly rise even further for renewable energy in 2015

but for coal there remains a lot further to fallrdquo said a report by the Institute for Energy Economics and

Financial Analysis in January 2015 (Buckley 2015a)

This statement is borne out by the facts

bull In 2014 new global wind installations grew 40 to 46GW led by China and America (Buckley

2015b)

bull In 2014 the US solar installation sector created almost 50 more jobs than the oil and gas pipeline

construction industry (Foundation 2015)

bull From 2000 to 2011 global annual growth in the yearly global installation rate of photovoltaic solar

panels was 40 In 2011 the total amount of global PV capacity installed was 27GW an astonishing

60 growth on 2010 levels (Green 2012)

bull Unsubsidised renewable energy is now cheaper than new coal-fired power in Australia (Paton 2013)

Solar installation

10 | JOBS AFTER COAL A Just Transition for Queensland

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

Coal power station

JOBS AFTER COAL A Just Transition for Queensland | 11

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

The outlook for coal pricesWhile some consider the outlook for coal prices as cyclical in nature and that a turnaround will increases

prices for coal other analysts believe this downward trend based on policies health impacts and concern

about global warming is here to stay

Financial reports from the major mining companies in Australia paint a grim outlook for global metallurgical

coal prices China was once the great hope for coking coal exporters but BHP Billitonrsquos metallurgical coal

market outlook (May 2013) indicated a flattening demand into the future (Billiton 2013 Rohr 2014)

BHP Billiton has warned that the increased usage of scrap metal in furnaces would result in lower growth in

demand for pig iron while greater production from electric arc furnacesmdashwhich use little or no coking coalmdash

are expected to ldquocontribute a significant share of total Chinese steel production by 2030rdquo Although coking

coal will likely remain necessary for steel production for some time as renewable energy sources grow the

efficiency and lower emissions intensity of electric arc furnaces will help them to outcompete coking coal in

the not too distant future Some experts even predict another technology called lsquodirect reduced ironrsquo that uses

gas to make steel could make coking coal redundant within a decade (Macleod 2013)

It is not just China BHP Billiton also cautions that the Indian steel outlook is less certain as steel production

growth has been slower than expected Prices for commodities from iron ore to coal are sinking as Chinarsquos

leadership tries to steer the economy away from debt-fueled property investment and smokestack industries

embracing services and domestic-led consumption At the same time President Xi Jinping is stepping up efforts

to combat pollution The provincial government of Beijing and a number of other major cities have made plans to

ban coal use by 2020 further putting the squeeze on all types of heavy industry (Coulter 2015)

However the outlook is not all dismal for coal everywhere In India demand is expected to continue to rise

without peaking until the 2030s Indiarsquos government predicts a 19 rise in coal imports this year which

may offer very short-term opportunities for Australian miners The opportunities are short term because these

import increases are something the Indian government has indicated it does not want continued into the

future Indiarsquos plan is to ramp up renewable energy technology as well as develop their untapped coal fields

to support a gradual phase out of thermal-coal imports within the next 2ndash3 years (Baker 2014) Regardless

the Indian mining giant Adani still hopes it can get coal from its proposed Carmichael mine in the Galilee

Basin and export it to India for the duration of its 60 year life span After a number of international banks

have ruled out funding for the Carmichael coal mine Adani has been looking for cash handouts from the

Australian Government to fund its shaky proposal However sanity has prevailed and these have been ruled

out by the new Prime Minister (Edis 2015) It is clear the Indian governmentrsquos plan for Indiarsquos future coal

supply sources does not involve Australian coal

12 | JOBS AFTER COAL A Just Transition for Queensland

This is the marketplace in which Australiarsquos exported coal competes and this is the marketplace that holds the

livelihoods of workers and communities in its hands The current state and future outlook of the coal industry

suggests that it would be risky not to scale down the thermal coal industry and at least restrict any new mine

expansions in the coking coal sector There are those who remain positive about the industryrsquos future but

recent events in the coal industry and uncertainty over medium and long term suggest that there are better

industries to back Behind these diverse risks threatening the coal industry is the inescapable scientific

fact that we cannot afford to burn any more coal from new coal mines if we want to decrease the risk of our

already fifty fifty chance of avoiding the worst impacts of global warming (IPCC 2013) If we wanted to try

and remove the total risk of runaway climate change we could not even afford to burn the coal that are sitting

in trucks on trains at port yards and in ships Not even the coal travelling on conveyors into power station

furnaces about to be burnt right this very moment

The carbon bubbleFrom the South Sea Bubble as well as the housing and dotcom bubbles of the last decade periodic over-

investment has been made into sectors deemed too important to fail The rush and hubris of investors seeking

incomparable profits to finance such industries has led to speculative bubbles of over-estimated value that

eventually burst In the economic fallout that results working people carry the burden while the speculators

and profiteers generally are not held accountable Another speculative bubble has formed and it dwarfs the

size of all of the bubbles that have come before it It is called the Carbon Bubble (Tracker 2015)

One of the few things world leaders agreed upon at the Copenhagen climate talks was that the Earth needs to

stay below 2degC warming to minimize the risk of runaway climate change

bull If we are to avoid going over 2degC we can emit only 565 more gigatonnes of carbon dioxide (IPCC 2007)

bull Burning the fossil fuel that corporations now have in their reserves would result in emitting 2795

gigatonnes of carbon dioxidemdashfive times the safe amount (Leaton 2013)

The Intergovernmental Panel on Climate Change has now produced its own carbon budget They have calculated

that if we continue pumping carbon into the atmosphere at todayrsquos rate this budget will be exhausted within

15ndash25 years (IPCC 2013) This means there will be growing political pressure on the fossil fuel industry to

keep most of its reserves in the ground That pressure has already begun around the world Citizens are pressing

their superannuation funds councils banks universities and other institutions to divest from fossil fuels with

growing success The year 2013 saw several major financial institutions recognise the financial and ethical

implications of continuing to finance fossil fuels with Norwegian Storebrand Rabobank and the World Bank

among those who made major announcements on divestment or cutting loans In 2014 major institutions

including Stanford University the Australian National University and Oxford University have divested their fossil

fuel funds (Advisors 2015) So far in 2015 local councils in Australia such as Moreland Newcastle Byron Bay

Melbourne and many more have also divested (Ryan 2015) Divestment is now going mainstream and will have

increasing impacts on fossil fuel company shares into the future

JOBS AFTER COAL A Just Transition for Queensland | 13

As a result of the momentum of the global divestment movement international stock exchanges are creating

new indexes to exclude fossil fuels in preparation of the impending seismic shift in global finances In late

April 2014 the worldrsquos largest fund manager Blackrock joined with the FTSE Group in London to create

a new index The ex-Fossil Fuels Index Series is an innovative set of benchmark indices that excludes

companies directly engaged in extracting so-called ldquostranded assetsrdquo in the hydrocarbons industry ldquoThis

is one of the fastest-moving debates I think Irsquove seen in my 30 years in marketsrdquo FTSE managing director

Kevin Bourne told the Financial Times (Clarke 2014) The Bank of England is now investigating its exposure

to risk from its fossil fuel investments To top that off the worldrsquos biggest sovereign wealth investment fund in

Norway has recently dumped coal investments (Carrington 2015) The largest contribution to climate change

from the fossil fuels in company inventories at present is from coal Because it has the largest climate impact

per unit of useful energy it is being targeted for early phase out

The book value of fossil fuel companies is determined not only by their current infrastructure and deposits

undergoing extraction but also by the size of their legally claimed reserves Because the book value of so

many companies has greatly exceeded their realisable value as emissions restrictions come into place a

speculative bubble has formed Unfortunately bubbles usually burst in the end leaving behind stranded

assets and stranded capitalmdashand leaving workers in the lurch The only alternative is a mature and planned

phase out of the industry that slowly devalues and deregisters fossil fuel reserves at a pace that does not lead

to financial crisis A planned phase out that gives time for just employment transitions for fossil fuel

communities

500

1000886

565

1500

2000

2500

3000

already burnt

remaining

2000ndash2050

2011ndash2050

Coal 2˚Global carbon

budget

Oil

Gas

GtC

O2

Global fossil fuel reserves

Figure 6 Carbontracker 2012 report The Carbon Bubble

14 | JOBS AFTER COAL A Just Transition for Queensland

In 2013 the report Unburnable Carbon highlighted that ldquoCompany valuation and credit ratings

methodologies do not typically inform investors about their exposure to these stranded assetsrdquo (Leaton

2013) This is very troubling when considering that the supporting share value of these reserves was $4

trillion in 2012 and that they serviced $127 trillion in outstanding corporate debt over the same period We

need to challenge these methodologies (Tracker 2015) In a move that signals a step towards the solutions

required the World Bank the European Investment Bank and the US Export-Import Bank have all announced

that they will not fund further coal-fired power plants except in exceptional circumstances As changes in

policy by the major coal consumers the uptake of renewables and the need to stay within the global carbon

budget begin to bite it is high-cost producers who will be squeezed first Australia is considered a high-cost

producer because of our strong industrial relations and wage laws which makes it all the more necessary that

our governments are vigilant and prepared for impending macroeconomic change (Cleary 2015)

SummaryThis is the environment in which the Australian coal industry finds itself Internationally coal is no longer

looking like a safe long-term investment within the context of the rapid changes afoot in the world The coal

industry leaders are either in denial about their industryrsquos future or are determined to squeeze as much profit

as possible until the cost gets worn by workers and their communities (Saunders 2015)

The issues of climate change demands for cleaner air and more efficient new technologies The realities of

the market are revealing coal as the sunset industry it really is This is not an industry Queenslanders can

rely on to create a stable resilient and sustainable economy It cannot be relied upon for future wealth

and future jobs We have been warned by the UN Climate Change Secretariatrsquos Executive Secretary that the

diversification and a managed transition away from coal is what we need to do and we need to heed this

warning (Australian 2015)

JOBS AFTER COAL A Just Transition for Queensland | 15

3 Assessing some of the economic opportunities in mining regions

IntroductionThe great state of Queensland is endowed with sustainable human and environmental resources that have the

potential if we choose to harness it to drive a balanced diverse and resilient economy for generations to

come Diversifying Queenslandrsquos economy to create sensible and stable prosperity beyond the boom and bust

vagaries of the mining industry must be a key objective of the Queensland Government The Newman LNP

Governmentrsquos Queensland Plan headline was lsquoforging diversity and prosperityrsquo (Government 2014) But

throughout Newmanrsquos reign as premier no action was taken Under the new Palaszczuk Labor Government

there has been some effort to support economic diversification across the state This is insufficient because as

of yet nothing has been done to adequately fund facilitate and empower the actual communities where

mining takes place The grassroots Labour Environmental Action Network an organisation within the

Australian Labour Party has called for change At the 2015 Queensland ALP State Conference they put

forward a motion that was passed calling on the state government to prepare a just transition policy before the

next conference (ALP 2015)

Grain harvest

16 | JOBS AFTER COAL A Just Transition for Queensland

Most importantly both major parties have continued their relentless support for further coal mine expansions

that inherently suffocate the process of diversification

With the coal industry forecast to be in a lsquostructural declinersquo by political leaders and bankers alike it is now

essential that the focus for economic development be on industries that can bring sustainable prosperity to

Queensland (Burrell 2014 Robins 2014) In the United Kingdom under Prime Minister Thatcher the world

witnessed the consequences of industries closing without planning and without investment to transition local

communities and industries

The following section of the report outlines how the opportunities for sustainable economic development

are already known Queensland has well-established sectors with bountiful potential in agriculture tourism

manufacturing and education It also has the opportunity to capitalise on a boom in renewable energy and

bio-industrial products to create more sustainable economic sectors These industries are ready to fill the

void that will be and is being left by coal however they lack the support needed to ensure their presence in

mining communities to provide a just transition away from coal where it is most needed

Agriculture and aquacultureCurrently the Queensland agricultural sector is worth near $147 billion and employs over 90000 people

(Queensland Government 2012) The sector has the potential to massively expand its food exports to Asia as

population and economic growth continue to surge in the dynamic economic region Through the competitive

advantage of our proximity to Asia and high-quality produce capabilities agricultural products have become

Queenslandrsquos second largest export earner and have the potential for continued growth (Heath 2014) By

increasing availability of farming technology driving productivity minimising costs and focusing on profitable

premium produce markets the Queensland Agricultural Strategy (2012) aims to double the total value of

production for all agricultural commodities by 2040 With innovative new farming approaches and ecosystem

system management strategies such increases in production are possible in a way which sustainably manages

and regenerates the land

To reduce pressure on fish stocks from home and abroad the promotion of aquaculture could be further

encouraged across the state This industry is worth $10 Million a year (Lucas DLGP 2011) At present

there are several sites located along the coast however research conducted over the last decade has

identified future sites for land based aquaculture Industry consultation aquaculture management training

programs and related issues in developing a workforce need to be considered (Plan 2012) The Queensland

Aquaculture Industry Federation sees the need for continued collaboration between government and other

stakeholders in order for this industry to reach itsrsquo potential as a strong core industry (Federation 2015)

The Department of Employment Economic Development and Innovation is leading the government drive to

JOBS AFTER COAL A Just Transition for Queensland | 17

develop the aquaculture industry This could see a future where aquaculture goes further than just meeting

domestic demand and grow to cater for high value export markets (Lucas DLGP 2011)

New opportunities in animal genetics aquaculture horticulture and bio-processing are driving agriculture

and aquaculture sector growth in new directions Both industries are about creating intergenerational

economic sustainability Choosing these industries that have unlimited potential to sustain our communities

and our ecosystems over mining is choosing long-term jobs over short-term jobs that cannot be passed on to

the next generation The bottom line is that we live in a hungry world and Queensland is well placed to be a

reliable and sustainable source of food to other nations without the agricultural potential we are endowed with

(Government 2014)

Tourism and recreational fishingDespite setbacks due to the high Australian dollar and loss of skilled workers to the mining boom the

tourism industry is still a critical part of the Queensland economy with massive future potential (Dr Tien Duc

Pham 2015) The tourism industry made a significant employment contribution providing 124000 jobs in

2010ndash11 with steady growth in international visitor nights (Deloitte Access Economics 2012) Queensland

has the potential to become a global leader in tourism and ecotourism and by doing so to create more

jobs and revenue (Government 2014) This will be possible similarly as in agriculture by promoting the

experiences available in our natural places and the quality hospitality we can provide to the growing Asian

middle class (Wilson 2013) The Chinese tourism market is seeking clean fresh and new experiences that

Queensland can cater to and is expected to be worth $74 billion by 2020 (Guterres 2014) Significant to

Queenslandrsquos potential in tourism is our ability to expand the tourism industry in the authentically Australian

rural and stunningly beautiful coastal mining communities where new economic activities are most needed

Further mining expansion in such places threatens to do to tourism what the growth in heavy industry did to

Gladstonersquos economic diversity where fishing and tourism are now non-existent

Although sustainably managed fisheries have the potential to provide continued economic prosperity to

Queensland there lies a major opportunity in net free fisheries to develop as tourism industries specifically

in coal mining regions A great recent example of this taking place is the newly established Net Free Zone

between from the Northern end of St Helens beach to Cape Hillsborough (Spelitis 2015) Along with three

other net free zones across the state the extent of the cumulative commercial opportunities for sustainable

tourism the net free zones have created has made it one of the three pillars as part of the 2020 vision for the

Queensland has the opportunity to develop an abundant and resilient agricultural industry that supports the transition to sustainable prosperity

18 | JOBS AFTER COAL A Just Transition for Queensland

Queensland Tourism Industry Council (Council 2015) The Mackay Isaac and Whitsunday (MIW) coal mining

region has excellent accessibility to a variety of fishing pursuits In addition to the new net free zone ther are

five fresh water stocked impoundment fisheries creating opportunities to promote lake beach offshore and

deepwater angling Improvement of accommodation facilities quality of jetties access roads and coordinating

fish trails with regional events could maximise visitation from recreational and tourism markets (Mackay

Tourism Tourism Queensland 2012) Charter fishing operatiors tackle stores campsites motels boat sales

boat building and maintenance all have the opportunity of benefitted from growth from the recreational fishing

tourism industry (Lucas DLGP 2012)

Higher educationOver the past decade millions of international students have visited Queensland for our quality tertiary

institutions and enjoyable lifestyle International education is Queenslandrsquos biggest service export with

nearly $2431 million being generated in 2013ndash14 alone (Australian Government 2014) The majority

of Queensland is strategically located in the latitudinal tropical zone where at a global level more than

50 of the worldrsquos population is forecasted to live by 2050 (Australian Government 2015) This makes

Queenslandrsquos universities well placed to develop the partnerships and research innovations tailored to the

challenges and opportunities of the new tropically-oriented world This will help Queensland and especially

North Queensland to attract increasing levels of international students to be part of our high-quality tropical

research institutions These students will increase spending through tourism support the creation of our own

skilled and globally connected workforce and connect Australia to business networks and opportunities across

the world In 2013ndash14 the Cairns region benefitted to the tune of $1375 million from international students

(McGuiggan 2014) With the right policies these benefits already being experienced primarily in Cairns

Townsville and Brisbane can be spread further across Queensland to make international education a strong

economic driver in transitioning mining communities

Bio-industrial productsAs the world moves away from fossil fuels the demand for cleaner more sustainable fuel sources will grow

(Emissions 2014) By using excess organic matter produced through food production to develop bio-industrial

products Queensland has the potential to export clean and sustainable fuels and bio-plastic materials to the

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Tourism is about experiences not extraction It has the potential to share Queensland beauty with the rest of the world and create sustainable local economies in the process

Queenslandrsquos greatest resource is the minds of its people We can share and co-create our innovations and learning with students from all over the world who want to make Queensland the launch pad for their careers

JOBS AFTER COAL A Just Transition for Queensland | 19

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Sorghum fields

20 | JOBS AFTER COAL A Just Transition for Queensland

Queensland is well placed to develop biofuel products from waste and oil crops such as Pongamia and algae

in addition to using the statersquos advanced sugarcane industry to convert excess cane using efficient cellulosic

processes Recent scientific developments in bio-plastics at the University of Queensland show that as a

state Queensland has the skills and ability to build a bio-industrial products industry that can contribute to a

sustainable economic future (Queensland 2015)

Renewable energyQueensland the sunshine state has enormous potential to generate electricity from the sun wind and waves

in addition to many other abundant renewable energy sources (Green 2012) Renewable energy has for a long

time been the catch cry from environmentalists as the complete solution to creating the jobs necessary to

replace the fossil fuel industry This report has been written partially to show recognition that as much as

renewable energy has the potential to create more jobs and replace fossil fuel domestic energy production it

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Gemasolar solar thermal power station Spain

JOBS AFTER COAL A Just Transition for Queensland | 21

cannot completely replace all of the coal

export industry jobs Numerous studies

show that with strong climate policies

over 7100 jobs can be created in

Queensland through renewable energy

by 2030 (Institute 2011) Thousands of

these jobs will be in regional

Queensland These should be prioritised

for regions where the mining industry

has developed rural communities in

need of new economic opportunities Far

North Queensland is especially suited to

further renewable energy investment

because of its climatic conditions and

because of the expensive transmissions

losses from having energy wired from

southern power sources (Allen 2011)

This makes it essential that government

policy ensures that the fair share of the

$35 billion in potential renewable

energy investment goes to rural mining

communities not only where it is most

needed economically but where it

makes the most business sense

(Department of Employment 2009)

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Queensland has the potential to become a smart sunshine state powered by clean and sustainable renewable energy By doing this we will be creating jobs in rural mining communities where they are needed most and building a foundation for a new sustainable economy

22 | JOBS AFTER COAL A Just Transition for Queensland

4 Community transitions Global case studies

There are communities around the worldwhich have reinvented themselves after the end of coal mining and

developed prosperous economies in doing so It has been a struggle but where there is a level of government

support inspired local leadership and the community is working together to regenerate its economy it has

been possible (Coal 2015) We are not suggesting any of these examples can be directly transferred to

Queensland communities facing the end of coal mining The object of these case studies is not to provide a

blueprint for Mackay Gladstone Rockhampton or mining towns in Central Queensland but to show the

diversity of ideas that have worked in other places that might stimulate our local communities to reinvent

themselves too

Hazelwood coal power station La Trobe Valley Vic

JOBS AFTER COAL A Just Transition for Queensland | 23

La Trobe ValleyIn the brown coal producing region of the La Trobe Valley in Victoria a grassroots transitionary force has been

underway for the past fifteen years Earthworker was set up by union and climate change activists seeking a

real alternative to coal and privately owned business models Earthworker Cooperativersquos mission is to create

jobs that respond to the lsquochallenges of climate change and the need for local job creation by facilitating the

establishment of worker-owned cooperatives hellip in sustainability-focused industriesrsquo (Earthworker 2015)

Their current focus is the establishment of a cooperative producing solar hot water systems in partnership

with an existing business called lsquoEverlast Hydro Systemsrsquo Their goal is to take production to Morwell in the

La Trobe Valley where workers are in need of an alternative to the coal industry The unique cooperative model

has made selling arrangement possible through inserting the option to buy a solar hot water system through

enterprise bargaining agreements

BanwenThe DOVE workshop in Banwen South Wales (Dove 2015) was started by agroup of women who during

the 1984ndash85 coal minersrsquo strike decided that community-based education was the most practical path to

regenerate the local economy Setting up shop in an abandoned mine office they developed a series of adult

education workshops for women Three decades later the DOVE building hosts a diverse set of small-scale

entrepreneurs including a daycare a library a community garden and a cafeacute featuring local foods

OrkneyOrkney like Central Queensland is a relatively isolated place with a scattered population Situated at the

top of Scotland two hours from the mainland by ferry Orcadians like Central Queenslanders often feel

like spectators to what goes on in the rest of their country They also feel vulnerable to central government

decisions and are often irritated by the lack of understanding of island life on the part of distant authoritiesmdash

its particular customs dialect and ways of doing things Since Norse times Orkney islanders burned peat (a

very young form of coal) as their primary fuel source but all the peat has been dug up This traditional way

of life where each farming family had its own peat bank and spent long summer days cutting and drying

peats while sharing picnics as children played is gone Another non-renewable energy source North Sea oil

discovered in the 1970s brought positive and negatives for the island It turned the tide of depopulation but

like the peat banks the oil is depleting and another lsquoend of an erarsquo is approaching Orcadians have woken up

to the fact that they canrsquot continue to hark back to the past and are confronting the issues of a future without

fossil fuels

Over the last three decades European community funding has helped Orkney to equip itself for the green

energy revolution Orkney now plays a global role in the evolution of wave and tidal technologies and

significant research and development work is creating new employment opportunities A high school in

Stromness was converted into the European Marine Energy Centre and is now a world leader providing

developers the opportunity to test full-scale prototypes in the sea The worldrsquos largest single-rotor tidal turbine

24 | JOBS AFTER COAL A Just Transition for Queensland

was the first in Scotland to be connected to the national grid from this centre Marine energy combined with

an expansion of wind turbines means that the island is now self-sufficient in electricity These renewable

energy developments have created jobs in the Orkneys in civil works and erection grid connection and

communications (Stuart 2011)

Investment in renewable energy and its associated RampD has attracted people to live work and study on the

island Islanders used to have to leave to get tertiary education but it is now possible to study for an MSc in

renewable energy at a Heriot Watt University campus in Stromness A new generation of Orcadians have grown

up to see renewable energy as the way of the future something quite ldquonormalrdquo which will provide greater

opportunities for their children to stay on the island with genuine prospects for employment in meaningful

jobs requiring a wide range of skills and qualifications This shows what a community in transition to a low

carbon future can look like

Nord-Pas De CalaisUntil 1986 the north-east region of France Nord-pas de Calais was a major coal mining area It still boasts

huge twin tailings mountains the largest in Europe which have become a tourist attraction It is known

to Australians for the war cemeteries associated with the battle of the Somme in WW1 but it has recently

undergone a remarkable transformation towards a truly sustainable economy Old coal mines at Lens have

been transformed into an art gallery displaying works from the Louvre collection in Paris Hundreds of people

are trained in energy efficiency solar energy and green architecture at a new training centre in nearby Loos-

en-Gohelle

The Chamber of Commerce invited economist and social visionary Jeremy Rifkin of the TIR Consulting

Group and his chief economist Skip Laitner to apply their model of the third industrial revolution to the

district (Riftkin 2015) Rifkinrsquos Third Industrial Revolution combines renewable energy energy efficiency

and the connectivity of the internet Buildings are energy generators and hydrogen is used as energy storage

After working with the community for some time the Master Plan was published in 2013 and envisages

that 100000 new jobs can be created by the transition plan (LLC 2013) Certainly the population has not

declined since mining days and has even slightly increased Inspired local leadership was the key in this

community plus some outside funding to help with the underpinning research

Appalachia (Kentucky)The transition process is just starting here but the community is very organised Kentuckians For The

Commonwealth has been battling the negative effects of coal mining for some decades and is now planning a

transition to ldquobuilding a better future beyond coalrdquo (Commonwealth 2015) Last year they held a conference

in Harlan Kentucky right in the middle of the Appalachian coal fields and invited guests from other US

regions in the same position as well as from Wales It is too soon to see what the outcome of their learning

process will be but they are another example of a community taking its future into its own handsmdashoptimistic

that there is a better future after coal

JOBS AFTER COAL A Just Transition for Queensland | 25

5 A just transition for coal mining communities policy recommendations

The opportunities to transition from unsustainable coal mining to prosperous communities with decent

employment will not just materialise by themselves It will need the political will and the right incentives to

ensure that communities are not left fending for themselves with unemployment increasing and families

in need of long-term welfare But not only is the political will not currently there both major political

parties continue to support the expansion of this sunset industry and by doing so are making the transition

challenges progressively more difficult (Denniss 2012) For too many years governments have uncritically

supported the coal mining sector Entire government departments have been focused on facilitating mining

with tax incentives weakening assessment and approval processes along with providing through tax payer

money established industrial infrastructure to support new projects Government policy often seeks to grow

royalties income by supporting the extraction of as much coal as possible as an escape the challenge of

finding other ways to increase state revenue New sustainable industries in coal communities will need just as

much if not more support while it gets started

We propose that communities local businesses workers unions community groups environment groups

local government and state and federal governments all need to be involved in planning a transition to

alternative forms of economic development and providing new jobs We call this a Just Transition (Anthea

Bill amp Evans1 2008 Brecher 2012) Just Transition is a framework for a fair and sustainable shift to a low

carbon economy proposed by trade unions and supported by environmental NGOs A Just Transition holds

that a shift to a lower carbon economy is vital to avoid dangerous climate change

Bimblebox Nature Refuge

26 | JOBS AFTER COAL A Just Transition for Queensland

Tough targets to cut greenhouse pollution supported by new environmental regulations and emerging carbon

markets will transform the global economy over the next decade These shifts will have major implications

for working people in energy supply industry and transport and for everyone as consumers There is a concern

that significant periods of economic restructuring in the past have often happened in a chaotic fashion

leaving ordinary workers along with their families and communities to bear the brunt of the transition to

new ways of producing wealth A just transition seeks to prevent such injustice becoming a feature of this

transition suggesting that it would not only be morally wrong and socially damaging but would undermine the

credibility of the transition itself and could slow or even halt the changes that must be made

It is through the challenges of communicating the urgency of climate change and other social and

environmental impacts that much of the debate about coal and its consequences for land water and the

climate has become unnecessarily adversarial and polarised Coal mining and power generation communities

deserve acknowledgement and appreciation for all that they have historically and currently contributed to

our country and our economy In communicating the economic shifts that are taking place and facilitating

the necessary transitions the Australian community needs to be respectful of the history and identity of coal

communities Environment groups government unions and the community need to initiate and engage in

the discussions about transitions in an open honest and compassionate manner Only by approaching the

transition in this way can the adversarial nature of the debate be broken down to make way for transformative

mutually respectful and holistic solutions

Whitsundays lsquoHave a Heart for the Reefrsquo

JOBS AFTER COAL A Just Transition for Queensland | 27

A just transition recognises that support for policies are conditional on a fair distribution of the costs and

benefits of those policies across the economy A just transition should also recognise that the creation of

opportunities for active engagement by those affected in determining the future wellbeing of themselves

and their families is essential for the long term empowerment of citizens and communities The following

recommendations have been written with the aim of emphasising such community empowerment as a priority

Recommendations

1) Establishing a unit within the State Government to support coal mining regions to transition to new economies

Specific institutions are needed to develop transition plans They need to have strong government support

and funding regional offices and representation from diverse stakeholders A dedicated unit within the

Department of Infrastructure Local Government and Planning could be established to oversee this work

They could work on the ground in the main coal mining communities to bring government expertise into

regional entities that would develop local plans that involve and empower the whole community This unit

or a connected unit would analyse existing barriers to the creation of competitive advantages for alternative

sustainable industries and would identify actions the State Government can take to support such creation

Any policy and support should come with clear conditions and timeframes These regional entities would

need generous budgets to assist local groups to develop their transition strategies to support research re-

training and the development of new business and community start-up initiatives based on the needs and

strategies of communities The key to communities becoming economically resilient is high levels of autonomy

and freedom in shaping their economic futures Research funding available to the regional entities will be

essential to the empowerment of local leadership Research funding should at least reach the OECD research

funding average and it should prioritise low carbon technologies and industry sectors with increased triple

bottom line sustainability potential

2) Support community leadership in diversifying local economies through the establishment of democratic regional entities

In each mining community a group of traditional and non-traditional community leaders willing to think

beyond lsquoBusiness as Usualrsquo to imagine a better future could be called together to work in collaboration with

and be resourced by the state government managed regional entities mentioned in recommendation one

The leaders would come from diverse backgrounds such as from local governments business associations

unions farming groups renewable energy businesses and educational institutions The objectives of these

leadership groups would be tailored to each community The objectives would in broad terms be to increase

employment in new diverse industries based on sustainable production and publicservice sector job creation

Expert facilitation alongside inclusive and democratic community engagement initiatives would be essential

to ensure the process and environment for creativity and innovation is maximised To develop such groups

it would be necessary to take stock of the existing resources skills and successful businesses on which a

new future can be built In addition an analysis of the social environmental and economic needs of the

28 | JOBS AFTER COAL A Just Transition for Queensland

community would also be beneficial These groups could then establish economic diversification projects

including value-added local production worker controlled co-operative enterprises and new community-

based enterprises that economically empower the local community Activities may also include support for

alternative industries in regard to process restructuring or subsidising the wages of workers displaced from

higher paying traditional industries

3) Support researching and communicating how the just transition can take place

Consistent research is needed on the best options to support the state and national economies to transition

This requires ongoing situational analysis of the global energy market shifts at both government levels In

addition each mining region will need assistance to research the number of jobs that are dependent on coal

the skills of those employed the level of local national and global long- and short-term risk to local mining

operations the transferability of jobs to other industries local opportunities for new enterprises and their

needs and the local educational and training needs and resources A key issue requiring research will be

around how the transitition scenarios differ depending on the level and relativity of thermal and coking coal

industries across coal mining communities The process for sourcing this information at a local and state

government level should be integrated into a policy feedback loop to support cyclical situational analysis and

policy adjustments from all levels of government This research should take place at the state level and be

encouraged at the industry and local level through grants

Mackay Central Queensland

JOBS AFTER COAL A Just Transition for Queensland | 29

4) Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

Many existing Queensland industries including those not highlighted in this report have the potential to

carry Queensland towards a new sustainable economy [sC5]mdashbut they will need support to do so Instead

of continuing to support and lower costs for the coal mining industry we need a plan to grow competitive

advantage across industries that have potential for sustainability and growth in regional mining communities

Along with industry and community organisations the State Government could organise a State Economic

Summit to assess existing industry clusters identify the potential of new and emerging industries consider

their competitiveness and key capabilities and identify barriers to increasing competitive advantage The

findings and recommendations from this Summit could be used to inform the work of the Unit established in

bullet point one above and the research outlined in bullet point two

5) Provide social protection of workers their families and incomes

If mines close suddenly workers need protection for their incomes and social services and possible relocation

even though many miners these days do not live in the communities where they mine Ideally these transition

plans would be developed early enough to ensure that new employment opportunities are in place for them

before mines actually close For many workers this is already too late but if the process begins now there will

be choices available for future retrenched coal workers who live in mining communities and regions Mining

companies could be incentivised andor penalised to give adequate notice to workers and other stakeholders

that closure may be impending and alternative economic opportunities need to be developed

6) Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

Involving the relevant unions in the planning of community transitions can enable them to move towards

becoming more proactive agents helping to plan the transition with critical networks and specific knowledge

about the needs of their members When a coal-fired power station in Washington State USA was scheduled

for closure for environmental reasons unions played a pivotal role persuading environmentalists and others

to delay the closure long enough for a Just Transition to provide different jobs for the workers This made it

possible for the coal resource to be replaced by wind and other renewable generation rather than natural

gasmdasha better environmental outcome and the unions became an active part in the phase out planning

Unions have a heavy workload defending workers rights and pay They need to be supported and financed to

play important roles in community transitions From facilitation and leadership of planning bodies career

planning and advice preferential hiring for displaced workers in the new alternative emerging industries and

leading the establishment of work controlled cooperatives unions have an essential role to play

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

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ABC Online (2014) Coal lsquogood for humanityrsquo Prime Minister Tony Abbott says at $39b Queensland mine opening httpwwwabcnetaunews2014-10-13coal-is-good-for-humanity-pm-tony-abbott-says5810244 Retrieved 10th of November 2015

After Coal (2015) Community Regeneration West Virginia United States httpaftercoalcomengage-your-community Retrieved 10th of November 2015

Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

Arabella Advisors (2015) Measuring the Growth of the Global Fossil Fuel Divestment and Clean Energy Investment Movement httpwwwarabellaadvisorscomwp-contentuploads201509Measuring-the-Growth-of-the-Divestment-Movementpdf Retrieved 10th of November 2015

Australian Bureau of Statistics (2014) Australian National Accounts State Accounts 2012ndash13 Canberra Australia Retrieved 10th of November 2015

Australian Bureau of Statistics (2015) MackaymdashCensus Employment by IndustrymdashTime Series Australian Government Department of Employment Retrieved 10th of November 2015

Australian Government Department for Education and Training (2015) Draft National Strategy for International Education Canberra Australian Capital Territory Retrieved 10th of November 2015

Australian Government (2014) Export income to Australia from international education activity in 2013ndash14 Canberra Australia Retrieved 10th of November 2015

BHP Billiton (2013) Coal Briefing httpwwwbhpbillitoncom~mediabhpdocumentsinvestorsreports2013130529_coalbriefingpdf Retrieved 10th of November 2015

Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

Beyond Zero Emissions (2012) Laggard to Leader How Australia Can Lead the World to Zero Carbon Prosperity Melbourne University Melbourne Victoria Retrieved 10th of November 2015

Beyond Zero Emissions (2014) A Fossil Economy in a Changing World Melbourne University Melbourne Victoria httpmediabzeorgaufossileconomyFossilEconomypdf Retrieved 10th of November 2015

Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

One Million Climate Job Campaign (2015) About London United Kingdom httpclimatejobsorgzaabout Retrieved 10th of November 2015

Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 20: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

10 | JOBS AFTER COAL A Just Transition for Queensland

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

Coal power station

JOBS AFTER COAL A Just Transition for Queensland | 11

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

The outlook for coal pricesWhile some consider the outlook for coal prices as cyclical in nature and that a turnaround will increases

prices for coal other analysts believe this downward trend based on policies health impacts and concern

about global warming is here to stay

Financial reports from the major mining companies in Australia paint a grim outlook for global metallurgical

coal prices China was once the great hope for coking coal exporters but BHP Billitonrsquos metallurgical coal

market outlook (May 2013) indicated a flattening demand into the future (Billiton 2013 Rohr 2014)

BHP Billiton has warned that the increased usage of scrap metal in furnaces would result in lower growth in

demand for pig iron while greater production from electric arc furnacesmdashwhich use little or no coking coalmdash

are expected to ldquocontribute a significant share of total Chinese steel production by 2030rdquo Although coking

coal will likely remain necessary for steel production for some time as renewable energy sources grow the

efficiency and lower emissions intensity of electric arc furnaces will help them to outcompete coking coal in

the not too distant future Some experts even predict another technology called lsquodirect reduced ironrsquo that uses

gas to make steel could make coking coal redundant within a decade (Macleod 2013)

It is not just China BHP Billiton also cautions that the Indian steel outlook is less certain as steel production

growth has been slower than expected Prices for commodities from iron ore to coal are sinking as Chinarsquos

leadership tries to steer the economy away from debt-fueled property investment and smokestack industries

embracing services and domestic-led consumption At the same time President Xi Jinping is stepping up efforts

to combat pollution The provincial government of Beijing and a number of other major cities have made plans to

ban coal use by 2020 further putting the squeeze on all types of heavy industry (Coulter 2015)

However the outlook is not all dismal for coal everywhere In India demand is expected to continue to rise

without peaking until the 2030s Indiarsquos government predicts a 19 rise in coal imports this year which

may offer very short-term opportunities for Australian miners The opportunities are short term because these

import increases are something the Indian government has indicated it does not want continued into the

future Indiarsquos plan is to ramp up renewable energy technology as well as develop their untapped coal fields

to support a gradual phase out of thermal-coal imports within the next 2ndash3 years (Baker 2014) Regardless

the Indian mining giant Adani still hopes it can get coal from its proposed Carmichael mine in the Galilee

Basin and export it to India for the duration of its 60 year life span After a number of international banks

have ruled out funding for the Carmichael coal mine Adani has been looking for cash handouts from the

Australian Government to fund its shaky proposal However sanity has prevailed and these have been ruled

out by the new Prime Minister (Edis 2015) It is clear the Indian governmentrsquos plan for Indiarsquos future coal

supply sources does not involve Australian coal

12 | JOBS AFTER COAL A Just Transition for Queensland

This is the marketplace in which Australiarsquos exported coal competes and this is the marketplace that holds the

livelihoods of workers and communities in its hands The current state and future outlook of the coal industry

suggests that it would be risky not to scale down the thermal coal industry and at least restrict any new mine

expansions in the coking coal sector There are those who remain positive about the industryrsquos future but

recent events in the coal industry and uncertainty over medium and long term suggest that there are better

industries to back Behind these diverse risks threatening the coal industry is the inescapable scientific

fact that we cannot afford to burn any more coal from new coal mines if we want to decrease the risk of our

already fifty fifty chance of avoiding the worst impacts of global warming (IPCC 2013) If we wanted to try

and remove the total risk of runaway climate change we could not even afford to burn the coal that are sitting

in trucks on trains at port yards and in ships Not even the coal travelling on conveyors into power station

furnaces about to be burnt right this very moment

The carbon bubbleFrom the South Sea Bubble as well as the housing and dotcom bubbles of the last decade periodic over-

investment has been made into sectors deemed too important to fail The rush and hubris of investors seeking

incomparable profits to finance such industries has led to speculative bubbles of over-estimated value that

eventually burst In the economic fallout that results working people carry the burden while the speculators

and profiteers generally are not held accountable Another speculative bubble has formed and it dwarfs the

size of all of the bubbles that have come before it It is called the Carbon Bubble (Tracker 2015)

One of the few things world leaders agreed upon at the Copenhagen climate talks was that the Earth needs to

stay below 2degC warming to minimize the risk of runaway climate change

bull If we are to avoid going over 2degC we can emit only 565 more gigatonnes of carbon dioxide (IPCC 2007)

bull Burning the fossil fuel that corporations now have in their reserves would result in emitting 2795

gigatonnes of carbon dioxidemdashfive times the safe amount (Leaton 2013)

The Intergovernmental Panel on Climate Change has now produced its own carbon budget They have calculated

that if we continue pumping carbon into the atmosphere at todayrsquos rate this budget will be exhausted within

15ndash25 years (IPCC 2013) This means there will be growing political pressure on the fossil fuel industry to

keep most of its reserves in the ground That pressure has already begun around the world Citizens are pressing

their superannuation funds councils banks universities and other institutions to divest from fossil fuels with

growing success The year 2013 saw several major financial institutions recognise the financial and ethical

implications of continuing to finance fossil fuels with Norwegian Storebrand Rabobank and the World Bank

among those who made major announcements on divestment or cutting loans In 2014 major institutions

including Stanford University the Australian National University and Oxford University have divested their fossil

fuel funds (Advisors 2015) So far in 2015 local councils in Australia such as Moreland Newcastle Byron Bay

Melbourne and many more have also divested (Ryan 2015) Divestment is now going mainstream and will have

increasing impacts on fossil fuel company shares into the future

JOBS AFTER COAL A Just Transition for Queensland | 13

As a result of the momentum of the global divestment movement international stock exchanges are creating

new indexes to exclude fossil fuels in preparation of the impending seismic shift in global finances In late

April 2014 the worldrsquos largest fund manager Blackrock joined with the FTSE Group in London to create

a new index The ex-Fossil Fuels Index Series is an innovative set of benchmark indices that excludes

companies directly engaged in extracting so-called ldquostranded assetsrdquo in the hydrocarbons industry ldquoThis

is one of the fastest-moving debates I think Irsquove seen in my 30 years in marketsrdquo FTSE managing director

Kevin Bourne told the Financial Times (Clarke 2014) The Bank of England is now investigating its exposure

to risk from its fossil fuel investments To top that off the worldrsquos biggest sovereign wealth investment fund in

Norway has recently dumped coal investments (Carrington 2015) The largest contribution to climate change

from the fossil fuels in company inventories at present is from coal Because it has the largest climate impact

per unit of useful energy it is being targeted for early phase out

The book value of fossil fuel companies is determined not only by their current infrastructure and deposits

undergoing extraction but also by the size of their legally claimed reserves Because the book value of so

many companies has greatly exceeded their realisable value as emissions restrictions come into place a

speculative bubble has formed Unfortunately bubbles usually burst in the end leaving behind stranded

assets and stranded capitalmdashand leaving workers in the lurch The only alternative is a mature and planned

phase out of the industry that slowly devalues and deregisters fossil fuel reserves at a pace that does not lead

to financial crisis A planned phase out that gives time for just employment transitions for fossil fuel

communities

500

1000886

565

1500

2000

2500

3000

already burnt

remaining

2000ndash2050

2011ndash2050

Coal 2˚Global carbon

budget

Oil

Gas

GtC

O2

Global fossil fuel reserves

Figure 6 Carbontracker 2012 report The Carbon Bubble

14 | JOBS AFTER COAL A Just Transition for Queensland

In 2013 the report Unburnable Carbon highlighted that ldquoCompany valuation and credit ratings

methodologies do not typically inform investors about their exposure to these stranded assetsrdquo (Leaton

2013) This is very troubling when considering that the supporting share value of these reserves was $4

trillion in 2012 and that they serviced $127 trillion in outstanding corporate debt over the same period We

need to challenge these methodologies (Tracker 2015) In a move that signals a step towards the solutions

required the World Bank the European Investment Bank and the US Export-Import Bank have all announced

that they will not fund further coal-fired power plants except in exceptional circumstances As changes in

policy by the major coal consumers the uptake of renewables and the need to stay within the global carbon

budget begin to bite it is high-cost producers who will be squeezed first Australia is considered a high-cost

producer because of our strong industrial relations and wage laws which makes it all the more necessary that

our governments are vigilant and prepared for impending macroeconomic change (Cleary 2015)

SummaryThis is the environment in which the Australian coal industry finds itself Internationally coal is no longer

looking like a safe long-term investment within the context of the rapid changes afoot in the world The coal

industry leaders are either in denial about their industryrsquos future or are determined to squeeze as much profit

as possible until the cost gets worn by workers and their communities (Saunders 2015)

The issues of climate change demands for cleaner air and more efficient new technologies The realities of

the market are revealing coal as the sunset industry it really is This is not an industry Queenslanders can

rely on to create a stable resilient and sustainable economy It cannot be relied upon for future wealth

and future jobs We have been warned by the UN Climate Change Secretariatrsquos Executive Secretary that the

diversification and a managed transition away from coal is what we need to do and we need to heed this

warning (Australian 2015)

JOBS AFTER COAL A Just Transition for Queensland | 15

3 Assessing some of the economic opportunities in mining regions

IntroductionThe great state of Queensland is endowed with sustainable human and environmental resources that have the

potential if we choose to harness it to drive a balanced diverse and resilient economy for generations to

come Diversifying Queenslandrsquos economy to create sensible and stable prosperity beyond the boom and bust

vagaries of the mining industry must be a key objective of the Queensland Government The Newman LNP

Governmentrsquos Queensland Plan headline was lsquoforging diversity and prosperityrsquo (Government 2014) But

throughout Newmanrsquos reign as premier no action was taken Under the new Palaszczuk Labor Government

there has been some effort to support economic diversification across the state This is insufficient because as

of yet nothing has been done to adequately fund facilitate and empower the actual communities where

mining takes place The grassroots Labour Environmental Action Network an organisation within the

Australian Labour Party has called for change At the 2015 Queensland ALP State Conference they put

forward a motion that was passed calling on the state government to prepare a just transition policy before the

next conference (ALP 2015)

Grain harvest

16 | JOBS AFTER COAL A Just Transition for Queensland

Most importantly both major parties have continued their relentless support for further coal mine expansions

that inherently suffocate the process of diversification

With the coal industry forecast to be in a lsquostructural declinersquo by political leaders and bankers alike it is now

essential that the focus for economic development be on industries that can bring sustainable prosperity to

Queensland (Burrell 2014 Robins 2014) In the United Kingdom under Prime Minister Thatcher the world

witnessed the consequences of industries closing without planning and without investment to transition local

communities and industries

The following section of the report outlines how the opportunities for sustainable economic development

are already known Queensland has well-established sectors with bountiful potential in agriculture tourism

manufacturing and education It also has the opportunity to capitalise on a boom in renewable energy and

bio-industrial products to create more sustainable economic sectors These industries are ready to fill the

void that will be and is being left by coal however they lack the support needed to ensure their presence in

mining communities to provide a just transition away from coal where it is most needed

Agriculture and aquacultureCurrently the Queensland agricultural sector is worth near $147 billion and employs over 90000 people

(Queensland Government 2012) The sector has the potential to massively expand its food exports to Asia as

population and economic growth continue to surge in the dynamic economic region Through the competitive

advantage of our proximity to Asia and high-quality produce capabilities agricultural products have become

Queenslandrsquos second largest export earner and have the potential for continued growth (Heath 2014) By

increasing availability of farming technology driving productivity minimising costs and focusing on profitable

premium produce markets the Queensland Agricultural Strategy (2012) aims to double the total value of

production for all agricultural commodities by 2040 With innovative new farming approaches and ecosystem

system management strategies such increases in production are possible in a way which sustainably manages

and regenerates the land

To reduce pressure on fish stocks from home and abroad the promotion of aquaculture could be further

encouraged across the state This industry is worth $10 Million a year (Lucas DLGP 2011) At present

there are several sites located along the coast however research conducted over the last decade has

identified future sites for land based aquaculture Industry consultation aquaculture management training

programs and related issues in developing a workforce need to be considered (Plan 2012) The Queensland

Aquaculture Industry Federation sees the need for continued collaboration between government and other

stakeholders in order for this industry to reach itsrsquo potential as a strong core industry (Federation 2015)

The Department of Employment Economic Development and Innovation is leading the government drive to

JOBS AFTER COAL A Just Transition for Queensland | 17

develop the aquaculture industry This could see a future where aquaculture goes further than just meeting

domestic demand and grow to cater for high value export markets (Lucas DLGP 2011)

New opportunities in animal genetics aquaculture horticulture and bio-processing are driving agriculture

and aquaculture sector growth in new directions Both industries are about creating intergenerational

economic sustainability Choosing these industries that have unlimited potential to sustain our communities

and our ecosystems over mining is choosing long-term jobs over short-term jobs that cannot be passed on to

the next generation The bottom line is that we live in a hungry world and Queensland is well placed to be a

reliable and sustainable source of food to other nations without the agricultural potential we are endowed with

(Government 2014)

Tourism and recreational fishingDespite setbacks due to the high Australian dollar and loss of skilled workers to the mining boom the

tourism industry is still a critical part of the Queensland economy with massive future potential (Dr Tien Duc

Pham 2015) The tourism industry made a significant employment contribution providing 124000 jobs in

2010ndash11 with steady growth in international visitor nights (Deloitte Access Economics 2012) Queensland

has the potential to become a global leader in tourism and ecotourism and by doing so to create more

jobs and revenue (Government 2014) This will be possible similarly as in agriculture by promoting the

experiences available in our natural places and the quality hospitality we can provide to the growing Asian

middle class (Wilson 2013) The Chinese tourism market is seeking clean fresh and new experiences that

Queensland can cater to and is expected to be worth $74 billion by 2020 (Guterres 2014) Significant to

Queenslandrsquos potential in tourism is our ability to expand the tourism industry in the authentically Australian

rural and stunningly beautiful coastal mining communities where new economic activities are most needed

Further mining expansion in such places threatens to do to tourism what the growth in heavy industry did to

Gladstonersquos economic diversity where fishing and tourism are now non-existent

Although sustainably managed fisheries have the potential to provide continued economic prosperity to

Queensland there lies a major opportunity in net free fisheries to develop as tourism industries specifically

in coal mining regions A great recent example of this taking place is the newly established Net Free Zone

between from the Northern end of St Helens beach to Cape Hillsborough (Spelitis 2015) Along with three

other net free zones across the state the extent of the cumulative commercial opportunities for sustainable

tourism the net free zones have created has made it one of the three pillars as part of the 2020 vision for the

Queensland has the opportunity to develop an abundant and resilient agricultural industry that supports the transition to sustainable prosperity

18 | JOBS AFTER COAL A Just Transition for Queensland

Queensland Tourism Industry Council (Council 2015) The Mackay Isaac and Whitsunday (MIW) coal mining

region has excellent accessibility to a variety of fishing pursuits In addition to the new net free zone ther are

five fresh water stocked impoundment fisheries creating opportunities to promote lake beach offshore and

deepwater angling Improvement of accommodation facilities quality of jetties access roads and coordinating

fish trails with regional events could maximise visitation from recreational and tourism markets (Mackay

Tourism Tourism Queensland 2012) Charter fishing operatiors tackle stores campsites motels boat sales

boat building and maintenance all have the opportunity of benefitted from growth from the recreational fishing

tourism industry (Lucas DLGP 2012)

Higher educationOver the past decade millions of international students have visited Queensland for our quality tertiary

institutions and enjoyable lifestyle International education is Queenslandrsquos biggest service export with

nearly $2431 million being generated in 2013ndash14 alone (Australian Government 2014) The majority

of Queensland is strategically located in the latitudinal tropical zone where at a global level more than

50 of the worldrsquos population is forecasted to live by 2050 (Australian Government 2015) This makes

Queenslandrsquos universities well placed to develop the partnerships and research innovations tailored to the

challenges and opportunities of the new tropically-oriented world This will help Queensland and especially

North Queensland to attract increasing levels of international students to be part of our high-quality tropical

research institutions These students will increase spending through tourism support the creation of our own

skilled and globally connected workforce and connect Australia to business networks and opportunities across

the world In 2013ndash14 the Cairns region benefitted to the tune of $1375 million from international students

(McGuiggan 2014) With the right policies these benefits already being experienced primarily in Cairns

Townsville and Brisbane can be spread further across Queensland to make international education a strong

economic driver in transitioning mining communities

Bio-industrial productsAs the world moves away from fossil fuels the demand for cleaner more sustainable fuel sources will grow

(Emissions 2014) By using excess organic matter produced through food production to develop bio-industrial

products Queensland has the potential to export clean and sustainable fuels and bio-plastic materials to the

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Tourism is about experiences not extraction It has the potential to share Queensland beauty with the rest of the world and create sustainable local economies in the process

Queenslandrsquos greatest resource is the minds of its people We can share and co-create our innovations and learning with students from all over the world who want to make Queensland the launch pad for their careers

JOBS AFTER COAL A Just Transition for Queensland | 19

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Sorghum fields

20 | JOBS AFTER COAL A Just Transition for Queensland

Queensland is well placed to develop biofuel products from waste and oil crops such as Pongamia and algae

in addition to using the statersquos advanced sugarcane industry to convert excess cane using efficient cellulosic

processes Recent scientific developments in bio-plastics at the University of Queensland show that as a

state Queensland has the skills and ability to build a bio-industrial products industry that can contribute to a

sustainable economic future (Queensland 2015)

Renewable energyQueensland the sunshine state has enormous potential to generate electricity from the sun wind and waves

in addition to many other abundant renewable energy sources (Green 2012) Renewable energy has for a long

time been the catch cry from environmentalists as the complete solution to creating the jobs necessary to

replace the fossil fuel industry This report has been written partially to show recognition that as much as

renewable energy has the potential to create more jobs and replace fossil fuel domestic energy production it

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Gemasolar solar thermal power station Spain

JOBS AFTER COAL A Just Transition for Queensland | 21

cannot completely replace all of the coal

export industry jobs Numerous studies

show that with strong climate policies

over 7100 jobs can be created in

Queensland through renewable energy

by 2030 (Institute 2011) Thousands of

these jobs will be in regional

Queensland These should be prioritised

for regions where the mining industry

has developed rural communities in

need of new economic opportunities Far

North Queensland is especially suited to

further renewable energy investment

because of its climatic conditions and

because of the expensive transmissions

losses from having energy wired from

southern power sources (Allen 2011)

This makes it essential that government

policy ensures that the fair share of the

$35 billion in potential renewable

energy investment goes to rural mining

communities not only where it is most

needed economically but where it

makes the most business sense

(Department of Employment 2009)

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Queensland has the potential to become a smart sunshine state powered by clean and sustainable renewable energy By doing this we will be creating jobs in rural mining communities where they are needed most and building a foundation for a new sustainable economy

22 | JOBS AFTER COAL A Just Transition for Queensland

4 Community transitions Global case studies

There are communities around the worldwhich have reinvented themselves after the end of coal mining and

developed prosperous economies in doing so It has been a struggle but where there is a level of government

support inspired local leadership and the community is working together to regenerate its economy it has

been possible (Coal 2015) We are not suggesting any of these examples can be directly transferred to

Queensland communities facing the end of coal mining The object of these case studies is not to provide a

blueprint for Mackay Gladstone Rockhampton or mining towns in Central Queensland but to show the

diversity of ideas that have worked in other places that might stimulate our local communities to reinvent

themselves too

Hazelwood coal power station La Trobe Valley Vic

JOBS AFTER COAL A Just Transition for Queensland | 23

La Trobe ValleyIn the brown coal producing region of the La Trobe Valley in Victoria a grassroots transitionary force has been

underway for the past fifteen years Earthworker was set up by union and climate change activists seeking a

real alternative to coal and privately owned business models Earthworker Cooperativersquos mission is to create

jobs that respond to the lsquochallenges of climate change and the need for local job creation by facilitating the

establishment of worker-owned cooperatives hellip in sustainability-focused industriesrsquo (Earthworker 2015)

Their current focus is the establishment of a cooperative producing solar hot water systems in partnership

with an existing business called lsquoEverlast Hydro Systemsrsquo Their goal is to take production to Morwell in the

La Trobe Valley where workers are in need of an alternative to the coal industry The unique cooperative model

has made selling arrangement possible through inserting the option to buy a solar hot water system through

enterprise bargaining agreements

BanwenThe DOVE workshop in Banwen South Wales (Dove 2015) was started by agroup of women who during

the 1984ndash85 coal minersrsquo strike decided that community-based education was the most practical path to

regenerate the local economy Setting up shop in an abandoned mine office they developed a series of adult

education workshops for women Three decades later the DOVE building hosts a diverse set of small-scale

entrepreneurs including a daycare a library a community garden and a cafeacute featuring local foods

OrkneyOrkney like Central Queensland is a relatively isolated place with a scattered population Situated at the

top of Scotland two hours from the mainland by ferry Orcadians like Central Queenslanders often feel

like spectators to what goes on in the rest of their country They also feel vulnerable to central government

decisions and are often irritated by the lack of understanding of island life on the part of distant authoritiesmdash

its particular customs dialect and ways of doing things Since Norse times Orkney islanders burned peat (a

very young form of coal) as their primary fuel source but all the peat has been dug up This traditional way

of life where each farming family had its own peat bank and spent long summer days cutting and drying

peats while sharing picnics as children played is gone Another non-renewable energy source North Sea oil

discovered in the 1970s brought positive and negatives for the island It turned the tide of depopulation but

like the peat banks the oil is depleting and another lsquoend of an erarsquo is approaching Orcadians have woken up

to the fact that they canrsquot continue to hark back to the past and are confronting the issues of a future without

fossil fuels

Over the last three decades European community funding has helped Orkney to equip itself for the green

energy revolution Orkney now plays a global role in the evolution of wave and tidal technologies and

significant research and development work is creating new employment opportunities A high school in

Stromness was converted into the European Marine Energy Centre and is now a world leader providing

developers the opportunity to test full-scale prototypes in the sea The worldrsquos largest single-rotor tidal turbine

24 | JOBS AFTER COAL A Just Transition for Queensland

was the first in Scotland to be connected to the national grid from this centre Marine energy combined with

an expansion of wind turbines means that the island is now self-sufficient in electricity These renewable

energy developments have created jobs in the Orkneys in civil works and erection grid connection and

communications (Stuart 2011)

Investment in renewable energy and its associated RampD has attracted people to live work and study on the

island Islanders used to have to leave to get tertiary education but it is now possible to study for an MSc in

renewable energy at a Heriot Watt University campus in Stromness A new generation of Orcadians have grown

up to see renewable energy as the way of the future something quite ldquonormalrdquo which will provide greater

opportunities for their children to stay on the island with genuine prospects for employment in meaningful

jobs requiring a wide range of skills and qualifications This shows what a community in transition to a low

carbon future can look like

Nord-Pas De CalaisUntil 1986 the north-east region of France Nord-pas de Calais was a major coal mining area It still boasts

huge twin tailings mountains the largest in Europe which have become a tourist attraction It is known

to Australians for the war cemeteries associated with the battle of the Somme in WW1 but it has recently

undergone a remarkable transformation towards a truly sustainable economy Old coal mines at Lens have

been transformed into an art gallery displaying works from the Louvre collection in Paris Hundreds of people

are trained in energy efficiency solar energy and green architecture at a new training centre in nearby Loos-

en-Gohelle

The Chamber of Commerce invited economist and social visionary Jeremy Rifkin of the TIR Consulting

Group and his chief economist Skip Laitner to apply their model of the third industrial revolution to the

district (Riftkin 2015) Rifkinrsquos Third Industrial Revolution combines renewable energy energy efficiency

and the connectivity of the internet Buildings are energy generators and hydrogen is used as energy storage

After working with the community for some time the Master Plan was published in 2013 and envisages

that 100000 new jobs can be created by the transition plan (LLC 2013) Certainly the population has not

declined since mining days and has even slightly increased Inspired local leadership was the key in this

community plus some outside funding to help with the underpinning research

Appalachia (Kentucky)The transition process is just starting here but the community is very organised Kentuckians For The

Commonwealth has been battling the negative effects of coal mining for some decades and is now planning a

transition to ldquobuilding a better future beyond coalrdquo (Commonwealth 2015) Last year they held a conference

in Harlan Kentucky right in the middle of the Appalachian coal fields and invited guests from other US

regions in the same position as well as from Wales It is too soon to see what the outcome of their learning

process will be but they are another example of a community taking its future into its own handsmdashoptimistic

that there is a better future after coal

JOBS AFTER COAL A Just Transition for Queensland | 25

5 A just transition for coal mining communities policy recommendations

The opportunities to transition from unsustainable coal mining to prosperous communities with decent

employment will not just materialise by themselves It will need the political will and the right incentives to

ensure that communities are not left fending for themselves with unemployment increasing and families

in need of long-term welfare But not only is the political will not currently there both major political

parties continue to support the expansion of this sunset industry and by doing so are making the transition

challenges progressively more difficult (Denniss 2012) For too many years governments have uncritically

supported the coal mining sector Entire government departments have been focused on facilitating mining

with tax incentives weakening assessment and approval processes along with providing through tax payer

money established industrial infrastructure to support new projects Government policy often seeks to grow

royalties income by supporting the extraction of as much coal as possible as an escape the challenge of

finding other ways to increase state revenue New sustainable industries in coal communities will need just as

much if not more support while it gets started

We propose that communities local businesses workers unions community groups environment groups

local government and state and federal governments all need to be involved in planning a transition to

alternative forms of economic development and providing new jobs We call this a Just Transition (Anthea

Bill amp Evans1 2008 Brecher 2012) Just Transition is a framework for a fair and sustainable shift to a low

carbon economy proposed by trade unions and supported by environmental NGOs A Just Transition holds

that a shift to a lower carbon economy is vital to avoid dangerous climate change

Bimblebox Nature Refuge

26 | JOBS AFTER COAL A Just Transition for Queensland

Tough targets to cut greenhouse pollution supported by new environmental regulations and emerging carbon

markets will transform the global economy over the next decade These shifts will have major implications

for working people in energy supply industry and transport and for everyone as consumers There is a concern

that significant periods of economic restructuring in the past have often happened in a chaotic fashion

leaving ordinary workers along with their families and communities to bear the brunt of the transition to

new ways of producing wealth A just transition seeks to prevent such injustice becoming a feature of this

transition suggesting that it would not only be morally wrong and socially damaging but would undermine the

credibility of the transition itself and could slow or even halt the changes that must be made

It is through the challenges of communicating the urgency of climate change and other social and

environmental impacts that much of the debate about coal and its consequences for land water and the

climate has become unnecessarily adversarial and polarised Coal mining and power generation communities

deserve acknowledgement and appreciation for all that they have historically and currently contributed to

our country and our economy In communicating the economic shifts that are taking place and facilitating

the necessary transitions the Australian community needs to be respectful of the history and identity of coal

communities Environment groups government unions and the community need to initiate and engage in

the discussions about transitions in an open honest and compassionate manner Only by approaching the

transition in this way can the adversarial nature of the debate be broken down to make way for transformative

mutually respectful and holistic solutions

Whitsundays lsquoHave a Heart for the Reefrsquo

JOBS AFTER COAL A Just Transition for Queensland | 27

A just transition recognises that support for policies are conditional on a fair distribution of the costs and

benefits of those policies across the economy A just transition should also recognise that the creation of

opportunities for active engagement by those affected in determining the future wellbeing of themselves

and their families is essential for the long term empowerment of citizens and communities The following

recommendations have been written with the aim of emphasising such community empowerment as a priority

Recommendations

1) Establishing a unit within the State Government to support coal mining regions to transition to new economies

Specific institutions are needed to develop transition plans They need to have strong government support

and funding regional offices and representation from diverse stakeholders A dedicated unit within the

Department of Infrastructure Local Government and Planning could be established to oversee this work

They could work on the ground in the main coal mining communities to bring government expertise into

regional entities that would develop local plans that involve and empower the whole community This unit

or a connected unit would analyse existing barriers to the creation of competitive advantages for alternative

sustainable industries and would identify actions the State Government can take to support such creation

Any policy and support should come with clear conditions and timeframes These regional entities would

need generous budgets to assist local groups to develop their transition strategies to support research re-

training and the development of new business and community start-up initiatives based on the needs and

strategies of communities The key to communities becoming economically resilient is high levels of autonomy

and freedom in shaping their economic futures Research funding available to the regional entities will be

essential to the empowerment of local leadership Research funding should at least reach the OECD research

funding average and it should prioritise low carbon technologies and industry sectors with increased triple

bottom line sustainability potential

2) Support community leadership in diversifying local economies through the establishment of democratic regional entities

In each mining community a group of traditional and non-traditional community leaders willing to think

beyond lsquoBusiness as Usualrsquo to imagine a better future could be called together to work in collaboration with

and be resourced by the state government managed regional entities mentioned in recommendation one

The leaders would come from diverse backgrounds such as from local governments business associations

unions farming groups renewable energy businesses and educational institutions The objectives of these

leadership groups would be tailored to each community The objectives would in broad terms be to increase

employment in new diverse industries based on sustainable production and publicservice sector job creation

Expert facilitation alongside inclusive and democratic community engagement initiatives would be essential

to ensure the process and environment for creativity and innovation is maximised To develop such groups

it would be necessary to take stock of the existing resources skills and successful businesses on which a

new future can be built In addition an analysis of the social environmental and economic needs of the

28 | JOBS AFTER COAL A Just Transition for Queensland

community would also be beneficial These groups could then establish economic diversification projects

including value-added local production worker controlled co-operative enterprises and new community-

based enterprises that economically empower the local community Activities may also include support for

alternative industries in regard to process restructuring or subsidising the wages of workers displaced from

higher paying traditional industries

3) Support researching and communicating how the just transition can take place

Consistent research is needed on the best options to support the state and national economies to transition

This requires ongoing situational analysis of the global energy market shifts at both government levels In

addition each mining region will need assistance to research the number of jobs that are dependent on coal

the skills of those employed the level of local national and global long- and short-term risk to local mining

operations the transferability of jobs to other industries local opportunities for new enterprises and their

needs and the local educational and training needs and resources A key issue requiring research will be

around how the transitition scenarios differ depending on the level and relativity of thermal and coking coal

industries across coal mining communities The process for sourcing this information at a local and state

government level should be integrated into a policy feedback loop to support cyclical situational analysis and

policy adjustments from all levels of government This research should take place at the state level and be

encouraged at the industry and local level through grants

Mackay Central Queensland

JOBS AFTER COAL A Just Transition for Queensland | 29

4) Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

Many existing Queensland industries including those not highlighted in this report have the potential to

carry Queensland towards a new sustainable economy [sC5]mdashbut they will need support to do so Instead

of continuing to support and lower costs for the coal mining industry we need a plan to grow competitive

advantage across industries that have potential for sustainability and growth in regional mining communities

Along with industry and community organisations the State Government could organise a State Economic

Summit to assess existing industry clusters identify the potential of new and emerging industries consider

their competitiveness and key capabilities and identify barriers to increasing competitive advantage The

findings and recommendations from this Summit could be used to inform the work of the Unit established in

bullet point one above and the research outlined in bullet point two

5) Provide social protection of workers their families and incomes

If mines close suddenly workers need protection for their incomes and social services and possible relocation

even though many miners these days do not live in the communities where they mine Ideally these transition

plans would be developed early enough to ensure that new employment opportunities are in place for them

before mines actually close For many workers this is already too late but if the process begins now there will

be choices available for future retrenched coal workers who live in mining communities and regions Mining

companies could be incentivised andor penalised to give adequate notice to workers and other stakeholders

that closure may be impending and alternative economic opportunities need to be developed

6) Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

Involving the relevant unions in the planning of community transitions can enable them to move towards

becoming more proactive agents helping to plan the transition with critical networks and specific knowledge

about the needs of their members When a coal-fired power station in Washington State USA was scheduled

for closure for environmental reasons unions played a pivotal role persuading environmentalists and others

to delay the closure long enough for a Just Transition to provide different jobs for the workers This made it

possible for the coal resource to be replaced by wind and other renewable generation rather than natural

gasmdasha better environmental outcome and the unions became an active part in the phase out planning

Unions have a heavy workload defending workers rights and pay They need to be supported and financed to

play important roles in community transitions From facilitation and leadership of planning bodies career

planning and advice preferential hiring for displaced workers in the new alternative emerging industries and

leading the establishment of work controlled cooperatives unions have an essential role to play

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

References

ABC Online (2014) Coal lsquogood for humanityrsquo Prime Minister Tony Abbott says at $39b Queensland mine opening httpwwwabcnetaunews2014-10-13coal-is-good-for-humanity-pm-tony-abbott-says5810244 Retrieved 10th of November 2015

After Coal (2015) Community Regeneration West Virginia United States httpaftercoalcomengage-your-community Retrieved 10th of November 2015

Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

Arabella Advisors (2015) Measuring the Growth of the Global Fossil Fuel Divestment and Clean Energy Investment Movement httpwwwarabellaadvisorscomwp-contentuploads201509Measuring-the-Growth-of-the-Divestment-Movementpdf Retrieved 10th of November 2015

Australian Bureau of Statistics (2014) Australian National Accounts State Accounts 2012ndash13 Canberra Australia Retrieved 10th of November 2015

Australian Bureau of Statistics (2015) MackaymdashCensus Employment by IndustrymdashTime Series Australian Government Department of Employment Retrieved 10th of November 2015

Australian Government Department for Education and Training (2015) Draft National Strategy for International Education Canberra Australian Capital Territory Retrieved 10th of November 2015

Australian Government (2014) Export income to Australia from international education activity in 2013ndash14 Canberra Australia Retrieved 10th of November 2015

BHP Billiton (2013) Coal Briefing httpwwwbhpbillitoncom~mediabhpdocumentsinvestorsreports2013130529_coalbriefingpdf Retrieved 10th of November 2015

Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

Beyond Zero Emissions (2012) Laggard to Leader How Australia Can Lead the World to Zero Carbon Prosperity Melbourne University Melbourne Victoria Retrieved 10th of November 2015

Beyond Zero Emissions (2014) A Fossil Economy in a Changing World Melbourne University Melbourne Victoria httpmediabzeorgaufossileconomyFossilEconomypdf Retrieved 10th of November 2015

Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

One Million Climate Job Campaign (2015) About London United Kingdom httpclimatejobsorgzaabout Retrieved 10th of November 2015

Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 21: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

JOBS AFTER COAL A Just Transition for Queensland | 11

International mining companiesIt is not just in Australia that coal mining jobs are being lost Internationally the picture is very similarmdash

the global coal industry is being hit hard and jobs overseas are also being lost Rather than just wait for

continued disruptive innovation along with human and environmentally-oriented policy shifts to drive them to

bankruptcy the worldrsquos biggest coal companies are restructuring A good example is the German energy giant

EOn The company has stakes in all forms of energy from coal to gas nuclear and renewables In December

2014 the company announced that it wants to focus on renewable energy and has parcelled all of its

fossil fuel interests into a separate company to avoid the risk to its primary growth-driving renewable energy

company (Hope 2014) Mining giant Rio Tinto has also signalled a move away from coal mining It has done

this by separating its coal assets into a different company Along with BHP Billiton who have halved their

coal use both mining companies have sold off many of their thermal coal mining operations in Australia and

globally (Buckley 2015c)

In the US the birthplace of many new technologies the coal industry is in free-fall like nowhere else A massive

expansion in shale gas has shifted energy production towards gas leaving the domestic consumption oriented

coal industry stranded(Mathieson 2015) This has caused historically major mining companies Arch Coal and

Peabody to lose massive value resulting in lower share prices than seen for decades Like dedicated Australian

coal miners Whitehaven Coal and Newhope Coal neither of these companies have anywhere to go They are run

purely on coal They do not have the diversification options that EOn and BHP have available to them

The outlook for coal pricesWhile some consider the outlook for coal prices as cyclical in nature and that a turnaround will increases

prices for coal other analysts believe this downward trend based on policies health impacts and concern

about global warming is here to stay

Financial reports from the major mining companies in Australia paint a grim outlook for global metallurgical

coal prices China was once the great hope for coking coal exporters but BHP Billitonrsquos metallurgical coal

market outlook (May 2013) indicated a flattening demand into the future (Billiton 2013 Rohr 2014)

BHP Billiton has warned that the increased usage of scrap metal in furnaces would result in lower growth in

demand for pig iron while greater production from electric arc furnacesmdashwhich use little or no coking coalmdash

are expected to ldquocontribute a significant share of total Chinese steel production by 2030rdquo Although coking

coal will likely remain necessary for steel production for some time as renewable energy sources grow the

efficiency and lower emissions intensity of electric arc furnaces will help them to outcompete coking coal in

the not too distant future Some experts even predict another technology called lsquodirect reduced ironrsquo that uses

gas to make steel could make coking coal redundant within a decade (Macleod 2013)

It is not just China BHP Billiton also cautions that the Indian steel outlook is less certain as steel production

growth has been slower than expected Prices for commodities from iron ore to coal are sinking as Chinarsquos

leadership tries to steer the economy away from debt-fueled property investment and smokestack industries

embracing services and domestic-led consumption At the same time President Xi Jinping is stepping up efforts

to combat pollution The provincial government of Beijing and a number of other major cities have made plans to

ban coal use by 2020 further putting the squeeze on all types of heavy industry (Coulter 2015)

However the outlook is not all dismal for coal everywhere In India demand is expected to continue to rise

without peaking until the 2030s Indiarsquos government predicts a 19 rise in coal imports this year which

may offer very short-term opportunities for Australian miners The opportunities are short term because these

import increases are something the Indian government has indicated it does not want continued into the

future Indiarsquos plan is to ramp up renewable energy technology as well as develop their untapped coal fields

to support a gradual phase out of thermal-coal imports within the next 2ndash3 years (Baker 2014) Regardless

the Indian mining giant Adani still hopes it can get coal from its proposed Carmichael mine in the Galilee

Basin and export it to India for the duration of its 60 year life span After a number of international banks

have ruled out funding for the Carmichael coal mine Adani has been looking for cash handouts from the

Australian Government to fund its shaky proposal However sanity has prevailed and these have been ruled

out by the new Prime Minister (Edis 2015) It is clear the Indian governmentrsquos plan for Indiarsquos future coal

supply sources does not involve Australian coal

12 | JOBS AFTER COAL A Just Transition for Queensland

This is the marketplace in which Australiarsquos exported coal competes and this is the marketplace that holds the

livelihoods of workers and communities in its hands The current state and future outlook of the coal industry

suggests that it would be risky not to scale down the thermal coal industry and at least restrict any new mine

expansions in the coking coal sector There are those who remain positive about the industryrsquos future but

recent events in the coal industry and uncertainty over medium and long term suggest that there are better

industries to back Behind these diverse risks threatening the coal industry is the inescapable scientific

fact that we cannot afford to burn any more coal from new coal mines if we want to decrease the risk of our

already fifty fifty chance of avoiding the worst impacts of global warming (IPCC 2013) If we wanted to try

and remove the total risk of runaway climate change we could not even afford to burn the coal that are sitting

in trucks on trains at port yards and in ships Not even the coal travelling on conveyors into power station

furnaces about to be burnt right this very moment

The carbon bubbleFrom the South Sea Bubble as well as the housing and dotcom bubbles of the last decade periodic over-

investment has been made into sectors deemed too important to fail The rush and hubris of investors seeking

incomparable profits to finance such industries has led to speculative bubbles of over-estimated value that

eventually burst In the economic fallout that results working people carry the burden while the speculators

and profiteers generally are not held accountable Another speculative bubble has formed and it dwarfs the

size of all of the bubbles that have come before it It is called the Carbon Bubble (Tracker 2015)

One of the few things world leaders agreed upon at the Copenhagen climate talks was that the Earth needs to

stay below 2degC warming to minimize the risk of runaway climate change

bull If we are to avoid going over 2degC we can emit only 565 more gigatonnes of carbon dioxide (IPCC 2007)

bull Burning the fossil fuel that corporations now have in their reserves would result in emitting 2795

gigatonnes of carbon dioxidemdashfive times the safe amount (Leaton 2013)

The Intergovernmental Panel on Climate Change has now produced its own carbon budget They have calculated

that if we continue pumping carbon into the atmosphere at todayrsquos rate this budget will be exhausted within

15ndash25 years (IPCC 2013) This means there will be growing political pressure on the fossil fuel industry to

keep most of its reserves in the ground That pressure has already begun around the world Citizens are pressing

their superannuation funds councils banks universities and other institutions to divest from fossil fuels with

growing success The year 2013 saw several major financial institutions recognise the financial and ethical

implications of continuing to finance fossil fuels with Norwegian Storebrand Rabobank and the World Bank

among those who made major announcements on divestment or cutting loans In 2014 major institutions

including Stanford University the Australian National University and Oxford University have divested their fossil

fuel funds (Advisors 2015) So far in 2015 local councils in Australia such as Moreland Newcastle Byron Bay

Melbourne and many more have also divested (Ryan 2015) Divestment is now going mainstream and will have

increasing impacts on fossil fuel company shares into the future

JOBS AFTER COAL A Just Transition for Queensland | 13

As a result of the momentum of the global divestment movement international stock exchanges are creating

new indexes to exclude fossil fuels in preparation of the impending seismic shift in global finances In late

April 2014 the worldrsquos largest fund manager Blackrock joined with the FTSE Group in London to create

a new index The ex-Fossil Fuels Index Series is an innovative set of benchmark indices that excludes

companies directly engaged in extracting so-called ldquostranded assetsrdquo in the hydrocarbons industry ldquoThis

is one of the fastest-moving debates I think Irsquove seen in my 30 years in marketsrdquo FTSE managing director

Kevin Bourne told the Financial Times (Clarke 2014) The Bank of England is now investigating its exposure

to risk from its fossil fuel investments To top that off the worldrsquos biggest sovereign wealth investment fund in

Norway has recently dumped coal investments (Carrington 2015) The largest contribution to climate change

from the fossil fuels in company inventories at present is from coal Because it has the largest climate impact

per unit of useful energy it is being targeted for early phase out

The book value of fossil fuel companies is determined not only by their current infrastructure and deposits

undergoing extraction but also by the size of their legally claimed reserves Because the book value of so

many companies has greatly exceeded their realisable value as emissions restrictions come into place a

speculative bubble has formed Unfortunately bubbles usually burst in the end leaving behind stranded

assets and stranded capitalmdashand leaving workers in the lurch The only alternative is a mature and planned

phase out of the industry that slowly devalues and deregisters fossil fuel reserves at a pace that does not lead

to financial crisis A planned phase out that gives time for just employment transitions for fossil fuel

communities

500

1000886

565

1500

2000

2500

3000

already burnt

remaining

2000ndash2050

2011ndash2050

Coal 2˚Global carbon

budget

Oil

Gas

GtC

O2

Global fossil fuel reserves

Figure 6 Carbontracker 2012 report The Carbon Bubble

14 | JOBS AFTER COAL A Just Transition for Queensland

In 2013 the report Unburnable Carbon highlighted that ldquoCompany valuation and credit ratings

methodologies do not typically inform investors about their exposure to these stranded assetsrdquo (Leaton

2013) This is very troubling when considering that the supporting share value of these reserves was $4

trillion in 2012 and that they serviced $127 trillion in outstanding corporate debt over the same period We

need to challenge these methodologies (Tracker 2015) In a move that signals a step towards the solutions

required the World Bank the European Investment Bank and the US Export-Import Bank have all announced

that they will not fund further coal-fired power plants except in exceptional circumstances As changes in

policy by the major coal consumers the uptake of renewables and the need to stay within the global carbon

budget begin to bite it is high-cost producers who will be squeezed first Australia is considered a high-cost

producer because of our strong industrial relations and wage laws which makes it all the more necessary that

our governments are vigilant and prepared for impending macroeconomic change (Cleary 2015)

SummaryThis is the environment in which the Australian coal industry finds itself Internationally coal is no longer

looking like a safe long-term investment within the context of the rapid changes afoot in the world The coal

industry leaders are either in denial about their industryrsquos future or are determined to squeeze as much profit

as possible until the cost gets worn by workers and their communities (Saunders 2015)

The issues of climate change demands for cleaner air and more efficient new technologies The realities of

the market are revealing coal as the sunset industry it really is This is not an industry Queenslanders can

rely on to create a stable resilient and sustainable economy It cannot be relied upon for future wealth

and future jobs We have been warned by the UN Climate Change Secretariatrsquos Executive Secretary that the

diversification and a managed transition away from coal is what we need to do and we need to heed this

warning (Australian 2015)

JOBS AFTER COAL A Just Transition for Queensland | 15

3 Assessing some of the economic opportunities in mining regions

IntroductionThe great state of Queensland is endowed with sustainable human and environmental resources that have the

potential if we choose to harness it to drive a balanced diverse and resilient economy for generations to

come Diversifying Queenslandrsquos economy to create sensible and stable prosperity beyond the boom and bust

vagaries of the mining industry must be a key objective of the Queensland Government The Newman LNP

Governmentrsquos Queensland Plan headline was lsquoforging diversity and prosperityrsquo (Government 2014) But

throughout Newmanrsquos reign as premier no action was taken Under the new Palaszczuk Labor Government

there has been some effort to support economic diversification across the state This is insufficient because as

of yet nothing has been done to adequately fund facilitate and empower the actual communities where

mining takes place The grassroots Labour Environmental Action Network an organisation within the

Australian Labour Party has called for change At the 2015 Queensland ALP State Conference they put

forward a motion that was passed calling on the state government to prepare a just transition policy before the

next conference (ALP 2015)

Grain harvest

16 | JOBS AFTER COAL A Just Transition for Queensland

Most importantly both major parties have continued their relentless support for further coal mine expansions

that inherently suffocate the process of diversification

With the coal industry forecast to be in a lsquostructural declinersquo by political leaders and bankers alike it is now

essential that the focus for economic development be on industries that can bring sustainable prosperity to

Queensland (Burrell 2014 Robins 2014) In the United Kingdom under Prime Minister Thatcher the world

witnessed the consequences of industries closing without planning and without investment to transition local

communities and industries

The following section of the report outlines how the opportunities for sustainable economic development

are already known Queensland has well-established sectors with bountiful potential in agriculture tourism

manufacturing and education It also has the opportunity to capitalise on a boom in renewable energy and

bio-industrial products to create more sustainable economic sectors These industries are ready to fill the

void that will be and is being left by coal however they lack the support needed to ensure their presence in

mining communities to provide a just transition away from coal where it is most needed

Agriculture and aquacultureCurrently the Queensland agricultural sector is worth near $147 billion and employs over 90000 people

(Queensland Government 2012) The sector has the potential to massively expand its food exports to Asia as

population and economic growth continue to surge in the dynamic economic region Through the competitive

advantage of our proximity to Asia and high-quality produce capabilities agricultural products have become

Queenslandrsquos second largest export earner and have the potential for continued growth (Heath 2014) By

increasing availability of farming technology driving productivity minimising costs and focusing on profitable

premium produce markets the Queensland Agricultural Strategy (2012) aims to double the total value of

production for all agricultural commodities by 2040 With innovative new farming approaches and ecosystem

system management strategies such increases in production are possible in a way which sustainably manages

and regenerates the land

To reduce pressure on fish stocks from home and abroad the promotion of aquaculture could be further

encouraged across the state This industry is worth $10 Million a year (Lucas DLGP 2011) At present

there are several sites located along the coast however research conducted over the last decade has

identified future sites for land based aquaculture Industry consultation aquaculture management training

programs and related issues in developing a workforce need to be considered (Plan 2012) The Queensland

Aquaculture Industry Federation sees the need for continued collaboration between government and other

stakeholders in order for this industry to reach itsrsquo potential as a strong core industry (Federation 2015)

The Department of Employment Economic Development and Innovation is leading the government drive to

JOBS AFTER COAL A Just Transition for Queensland | 17

develop the aquaculture industry This could see a future where aquaculture goes further than just meeting

domestic demand and grow to cater for high value export markets (Lucas DLGP 2011)

New opportunities in animal genetics aquaculture horticulture and bio-processing are driving agriculture

and aquaculture sector growth in new directions Both industries are about creating intergenerational

economic sustainability Choosing these industries that have unlimited potential to sustain our communities

and our ecosystems over mining is choosing long-term jobs over short-term jobs that cannot be passed on to

the next generation The bottom line is that we live in a hungry world and Queensland is well placed to be a

reliable and sustainable source of food to other nations without the agricultural potential we are endowed with

(Government 2014)

Tourism and recreational fishingDespite setbacks due to the high Australian dollar and loss of skilled workers to the mining boom the

tourism industry is still a critical part of the Queensland economy with massive future potential (Dr Tien Duc

Pham 2015) The tourism industry made a significant employment contribution providing 124000 jobs in

2010ndash11 with steady growth in international visitor nights (Deloitte Access Economics 2012) Queensland

has the potential to become a global leader in tourism and ecotourism and by doing so to create more

jobs and revenue (Government 2014) This will be possible similarly as in agriculture by promoting the

experiences available in our natural places and the quality hospitality we can provide to the growing Asian

middle class (Wilson 2013) The Chinese tourism market is seeking clean fresh and new experiences that

Queensland can cater to and is expected to be worth $74 billion by 2020 (Guterres 2014) Significant to

Queenslandrsquos potential in tourism is our ability to expand the tourism industry in the authentically Australian

rural and stunningly beautiful coastal mining communities where new economic activities are most needed

Further mining expansion in such places threatens to do to tourism what the growth in heavy industry did to

Gladstonersquos economic diversity where fishing and tourism are now non-existent

Although sustainably managed fisheries have the potential to provide continued economic prosperity to

Queensland there lies a major opportunity in net free fisheries to develop as tourism industries specifically

in coal mining regions A great recent example of this taking place is the newly established Net Free Zone

between from the Northern end of St Helens beach to Cape Hillsborough (Spelitis 2015) Along with three

other net free zones across the state the extent of the cumulative commercial opportunities for sustainable

tourism the net free zones have created has made it one of the three pillars as part of the 2020 vision for the

Queensland has the opportunity to develop an abundant and resilient agricultural industry that supports the transition to sustainable prosperity

18 | JOBS AFTER COAL A Just Transition for Queensland

Queensland Tourism Industry Council (Council 2015) The Mackay Isaac and Whitsunday (MIW) coal mining

region has excellent accessibility to a variety of fishing pursuits In addition to the new net free zone ther are

five fresh water stocked impoundment fisheries creating opportunities to promote lake beach offshore and

deepwater angling Improvement of accommodation facilities quality of jetties access roads and coordinating

fish trails with regional events could maximise visitation from recreational and tourism markets (Mackay

Tourism Tourism Queensland 2012) Charter fishing operatiors tackle stores campsites motels boat sales

boat building and maintenance all have the opportunity of benefitted from growth from the recreational fishing

tourism industry (Lucas DLGP 2012)

Higher educationOver the past decade millions of international students have visited Queensland for our quality tertiary

institutions and enjoyable lifestyle International education is Queenslandrsquos biggest service export with

nearly $2431 million being generated in 2013ndash14 alone (Australian Government 2014) The majority

of Queensland is strategically located in the latitudinal tropical zone where at a global level more than

50 of the worldrsquos population is forecasted to live by 2050 (Australian Government 2015) This makes

Queenslandrsquos universities well placed to develop the partnerships and research innovations tailored to the

challenges and opportunities of the new tropically-oriented world This will help Queensland and especially

North Queensland to attract increasing levels of international students to be part of our high-quality tropical

research institutions These students will increase spending through tourism support the creation of our own

skilled and globally connected workforce and connect Australia to business networks and opportunities across

the world In 2013ndash14 the Cairns region benefitted to the tune of $1375 million from international students

(McGuiggan 2014) With the right policies these benefits already being experienced primarily in Cairns

Townsville and Brisbane can be spread further across Queensland to make international education a strong

economic driver in transitioning mining communities

Bio-industrial productsAs the world moves away from fossil fuels the demand for cleaner more sustainable fuel sources will grow

(Emissions 2014) By using excess organic matter produced through food production to develop bio-industrial

products Queensland has the potential to export clean and sustainable fuels and bio-plastic materials to the

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Tourism is about experiences not extraction It has the potential to share Queensland beauty with the rest of the world and create sustainable local economies in the process

Queenslandrsquos greatest resource is the minds of its people We can share and co-create our innovations and learning with students from all over the world who want to make Queensland the launch pad for their careers

JOBS AFTER COAL A Just Transition for Queensland | 19

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Sorghum fields

20 | JOBS AFTER COAL A Just Transition for Queensland

Queensland is well placed to develop biofuel products from waste and oil crops such as Pongamia and algae

in addition to using the statersquos advanced sugarcane industry to convert excess cane using efficient cellulosic

processes Recent scientific developments in bio-plastics at the University of Queensland show that as a

state Queensland has the skills and ability to build a bio-industrial products industry that can contribute to a

sustainable economic future (Queensland 2015)

Renewable energyQueensland the sunshine state has enormous potential to generate electricity from the sun wind and waves

in addition to many other abundant renewable energy sources (Green 2012) Renewable energy has for a long

time been the catch cry from environmentalists as the complete solution to creating the jobs necessary to

replace the fossil fuel industry This report has been written partially to show recognition that as much as

renewable energy has the potential to create more jobs and replace fossil fuel domestic energy production it

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Gemasolar solar thermal power station Spain

JOBS AFTER COAL A Just Transition for Queensland | 21

cannot completely replace all of the coal

export industry jobs Numerous studies

show that with strong climate policies

over 7100 jobs can be created in

Queensland through renewable energy

by 2030 (Institute 2011) Thousands of

these jobs will be in regional

Queensland These should be prioritised

for regions where the mining industry

has developed rural communities in

need of new economic opportunities Far

North Queensland is especially suited to

further renewable energy investment

because of its climatic conditions and

because of the expensive transmissions

losses from having energy wired from

southern power sources (Allen 2011)

This makes it essential that government

policy ensures that the fair share of the

$35 billion in potential renewable

energy investment goes to rural mining

communities not only where it is most

needed economically but where it

makes the most business sense

(Department of Employment 2009)

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Queensland has the potential to become a smart sunshine state powered by clean and sustainable renewable energy By doing this we will be creating jobs in rural mining communities where they are needed most and building a foundation for a new sustainable economy

22 | JOBS AFTER COAL A Just Transition for Queensland

4 Community transitions Global case studies

There are communities around the worldwhich have reinvented themselves after the end of coal mining and

developed prosperous economies in doing so It has been a struggle but where there is a level of government

support inspired local leadership and the community is working together to regenerate its economy it has

been possible (Coal 2015) We are not suggesting any of these examples can be directly transferred to

Queensland communities facing the end of coal mining The object of these case studies is not to provide a

blueprint for Mackay Gladstone Rockhampton or mining towns in Central Queensland but to show the

diversity of ideas that have worked in other places that might stimulate our local communities to reinvent

themselves too

Hazelwood coal power station La Trobe Valley Vic

JOBS AFTER COAL A Just Transition for Queensland | 23

La Trobe ValleyIn the brown coal producing region of the La Trobe Valley in Victoria a grassroots transitionary force has been

underway for the past fifteen years Earthworker was set up by union and climate change activists seeking a

real alternative to coal and privately owned business models Earthworker Cooperativersquos mission is to create

jobs that respond to the lsquochallenges of climate change and the need for local job creation by facilitating the

establishment of worker-owned cooperatives hellip in sustainability-focused industriesrsquo (Earthworker 2015)

Their current focus is the establishment of a cooperative producing solar hot water systems in partnership

with an existing business called lsquoEverlast Hydro Systemsrsquo Their goal is to take production to Morwell in the

La Trobe Valley where workers are in need of an alternative to the coal industry The unique cooperative model

has made selling arrangement possible through inserting the option to buy a solar hot water system through

enterprise bargaining agreements

BanwenThe DOVE workshop in Banwen South Wales (Dove 2015) was started by agroup of women who during

the 1984ndash85 coal minersrsquo strike decided that community-based education was the most practical path to

regenerate the local economy Setting up shop in an abandoned mine office they developed a series of adult

education workshops for women Three decades later the DOVE building hosts a diverse set of small-scale

entrepreneurs including a daycare a library a community garden and a cafeacute featuring local foods

OrkneyOrkney like Central Queensland is a relatively isolated place with a scattered population Situated at the

top of Scotland two hours from the mainland by ferry Orcadians like Central Queenslanders often feel

like spectators to what goes on in the rest of their country They also feel vulnerable to central government

decisions and are often irritated by the lack of understanding of island life on the part of distant authoritiesmdash

its particular customs dialect and ways of doing things Since Norse times Orkney islanders burned peat (a

very young form of coal) as their primary fuel source but all the peat has been dug up This traditional way

of life where each farming family had its own peat bank and spent long summer days cutting and drying

peats while sharing picnics as children played is gone Another non-renewable energy source North Sea oil

discovered in the 1970s brought positive and negatives for the island It turned the tide of depopulation but

like the peat banks the oil is depleting and another lsquoend of an erarsquo is approaching Orcadians have woken up

to the fact that they canrsquot continue to hark back to the past and are confronting the issues of a future without

fossil fuels

Over the last three decades European community funding has helped Orkney to equip itself for the green

energy revolution Orkney now plays a global role in the evolution of wave and tidal technologies and

significant research and development work is creating new employment opportunities A high school in

Stromness was converted into the European Marine Energy Centre and is now a world leader providing

developers the opportunity to test full-scale prototypes in the sea The worldrsquos largest single-rotor tidal turbine

24 | JOBS AFTER COAL A Just Transition for Queensland

was the first in Scotland to be connected to the national grid from this centre Marine energy combined with

an expansion of wind turbines means that the island is now self-sufficient in electricity These renewable

energy developments have created jobs in the Orkneys in civil works and erection grid connection and

communications (Stuart 2011)

Investment in renewable energy and its associated RampD has attracted people to live work and study on the

island Islanders used to have to leave to get tertiary education but it is now possible to study for an MSc in

renewable energy at a Heriot Watt University campus in Stromness A new generation of Orcadians have grown

up to see renewable energy as the way of the future something quite ldquonormalrdquo which will provide greater

opportunities for their children to stay on the island with genuine prospects for employment in meaningful

jobs requiring a wide range of skills and qualifications This shows what a community in transition to a low

carbon future can look like

Nord-Pas De CalaisUntil 1986 the north-east region of France Nord-pas de Calais was a major coal mining area It still boasts

huge twin tailings mountains the largest in Europe which have become a tourist attraction It is known

to Australians for the war cemeteries associated with the battle of the Somme in WW1 but it has recently

undergone a remarkable transformation towards a truly sustainable economy Old coal mines at Lens have

been transformed into an art gallery displaying works from the Louvre collection in Paris Hundreds of people

are trained in energy efficiency solar energy and green architecture at a new training centre in nearby Loos-

en-Gohelle

The Chamber of Commerce invited economist and social visionary Jeremy Rifkin of the TIR Consulting

Group and his chief economist Skip Laitner to apply their model of the third industrial revolution to the

district (Riftkin 2015) Rifkinrsquos Third Industrial Revolution combines renewable energy energy efficiency

and the connectivity of the internet Buildings are energy generators and hydrogen is used as energy storage

After working with the community for some time the Master Plan was published in 2013 and envisages

that 100000 new jobs can be created by the transition plan (LLC 2013) Certainly the population has not

declined since mining days and has even slightly increased Inspired local leadership was the key in this

community plus some outside funding to help with the underpinning research

Appalachia (Kentucky)The transition process is just starting here but the community is very organised Kentuckians For The

Commonwealth has been battling the negative effects of coal mining for some decades and is now planning a

transition to ldquobuilding a better future beyond coalrdquo (Commonwealth 2015) Last year they held a conference

in Harlan Kentucky right in the middle of the Appalachian coal fields and invited guests from other US

regions in the same position as well as from Wales It is too soon to see what the outcome of their learning

process will be but they are another example of a community taking its future into its own handsmdashoptimistic

that there is a better future after coal

JOBS AFTER COAL A Just Transition for Queensland | 25

5 A just transition for coal mining communities policy recommendations

The opportunities to transition from unsustainable coal mining to prosperous communities with decent

employment will not just materialise by themselves It will need the political will and the right incentives to

ensure that communities are not left fending for themselves with unemployment increasing and families

in need of long-term welfare But not only is the political will not currently there both major political

parties continue to support the expansion of this sunset industry and by doing so are making the transition

challenges progressively more difficult (Denniss 2012) For too many years governments have uncritically

supported the coal mining sector Entire government departments have been focused on facilitating mining

with tax incentives weakening assessment and approval processes along with providing through tax payer

money established industrial infrastructure to support new projects Government policy often seeks to grow

royalties income by supporting the extraction of as much coal as possible as an escape the challenge of

finding other ways to increase state revenue New sustainable industries in coal communities will need just as

much if not more support while it gets started

We propose that communities local businesses workers unions community groups environment groups

local government and state and federal governments all need to be involved in planning a transition to

alternative forms of economic development and providing new jobs We call this a Just Transition (Anthea

Bill amp Evans1 2008 Brecher 2012) Just Transition is a framework for a fair and sustainable shift to a low

carbon economy proposed by trade unions and supported by environmental NGOs A Just Transition holds

that a shift to a lower carbon economy is vital to avoid dangerous climate change

Bimblebox Nature Refuge

26 | JOBS AFTER COAL A Just Transition for Queensland

Tough targets to cut greenhouse pollution supported by new environmental regulations and emerging carbon

markets will transform the global economy over the next decade These shifts will have major implications

for working people in energy supply industry and transport and for everyone as consumers There is a concern

that significant periods of economic restructuring in the past have often happened in a chaotic fashion

leaving ordinary workers along with their families and communities to bear the brunt of the transition to

new ways of producing wealth A just transition seeks to prevent such injustice becoming a feature of this

transition suggesting that it would not only be morally wrong and socially damaging but would undermine the

credibility of the transition itself and could slow or even halt the changes that must be made

It is through the challenges of communicating the urgency of climate change and other social and

environmental impacts that much of the debate about coal and its consequences for land water and the

climate has become unnecessarily adversarial and polarised Coal mining and power generation communities

deserve acknowledgement and appreciation for all that they have historically and currently contributed to

our country and our economy In communicating the economic shifts that are taking place and facilitating

the necessary transitions the Australian community needs to be respectful of the history and identity of coal

communities Environment groups government unions and the community need to initiate and engage in

the discussions about transitions in an open honest and compassionate manner Only by approaching the

transition in this way can the adversarial nature of the debate be broken down to make way for transformative

mutually respectful and holistic solutions

Whitsundays lsquoHave a Heart for the Reefrsquo

JOBS AFTER COAL A Just Transition for Queensland | 27

A just transition recognises that support for policies are conditional on a fair distribution of the costs and

benefits of those policies across the economy A just transition should also recognise that the creation of

opportunities for active engagement by those affected in determining the future wellbeing of themselves

and their families is essential for the long term empowerment of citizens and communities The following

recommendations have been written with the aim of emphasising such community empowerment as a priority

Recommendations

1) Establishing a unit within the State Government to support coal mining regions to transition to new economies

Specific institutions are needed to develop transition plans They need to have strong government support

and funding regional offices and representation from diverse stakeholders A dedicated unit within the

Department of Infrastructure Local Government and Planning could be established to oversee this work

They could work on the ground in the main coal mining communities to bring government expertise into

regional entities that would develop local plans that involve and empower the whole community This unit

or a connected unit would analyse existing barriers to the creation of competitive advantages for alternative

sustainable industries and would identify actions the State Government can take to support such creation

Any policy and support should come with clear conditions and timeframes These regional entities would

need generous budgets to assist local groups to develop their transition strategies to support research re-

training and the development of new business and community start-up initiatives based on the needs and

strategies of communities The key to communities becoming economically resilient is high levels of autonomy

and freedom in shaping their economic futures Research funding available to the regional entities will be

essential to the empowerment of local leadership Research funding should at least reach the OECD research

funding average and it should prioritise low carbon technologies and industry sectors with increased triple

bottom line sustainability potential

2) Support community leadership in diversifying local economies through the establishment of democratic regional entities

In each mining community a group of traditional and non-traditional community leaders willing to think

beyond lsquoBusiness as Usualrsquo to imagine a better future could be called together to work in collaboration with

and be resourced by the state government managed regional entities mentioned in recommendation one

The leaders would come from diverse backgrounds such as from local governments business associations

unions farming groups renewable energy businesses and educational institutions The objectives of these

leadership groups would be tailored to each community The objectives would in broad terms be to increase

employment in new diverse industries based on sustainable production and publicservice sector job creation

Expert facilitation alongside inclusive and democratic community engagement initiatives would be essential

to ensure the process and environment for creativity and innovation is maximised To develop such groups

it would be necessary to take stock of the existing resources skills and successful businesses on which a

new future can be built In addition an analysis of the social environmental and economic needs of the

28 | JOBS AFTER COAL A Just Transition for Queensland

community would also be beneficial These groups could then establish economic diversification projects

including value-added local production worker controlled co-operative enterprises and new community-

based enterprises that economically empower the local community Activities may also include support for

alternative industries in regard to process restructuring or subsidising the wages of workers displaced from

higher paying traditional industries

3) Support researching and communicating how the just transition can take place

Consistent research is needed on the best options to support the state and national economies to transition

This requires ongoing situational analysis of the global energy market shifts at both government levels In

addition each mining region will need assistance to research the number of jobs that are dependent on coal

the skills of those employed the level of local national and global long- and short-term risk to local mining

operations the transferability of jobs to other industries local opportunities for new enterprises and their

needs and the local educational and training needs and resources A key issue requiring research will be

around how the transitition scenarios differ depending on the level and relativity of thermal and coking coal

industries across coal mining communities The process for sourcing this information at a local and state

government level should be integrated into a policy feedback loop to support cyclical situational analysis and

policy adjustments from all levels of government This research should take place at the state level and be

encouraged at the industry and local level through grants

Mackay Central Queensland

JOBS AFTER COAL A Just Transition for Queensland | 29

4) Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

Many existing Queensland industries including those not highlighted in this report have the potential to

carry Queensland towards a new sustainable economy [sC5]mdashbut they will need support to do so Instead

of continuing to support and lower costs for the coal mining industry we need a plan to grow competitive

advantage across industries that have potential for sustainability and growth in regional mining communities

Along with industry and community organisations the State Government could organise a State Economic

Summit to assess existing industry clusters identify the potential of new and emerging industries consider

their competitiveness and key capabilities and identify barriers to increasing competitive advantage The

findings and recommendations from this Summit could be used to inform the work of the Unit established in

bullet point one above and the research outlined in bullet point two

5) Provide social protection of workers their families and incomes

If mines close suddenly workers need protection for their incomes and social services and possible relocation

even though many miners these days do not live in the communities where they mine Ideally these transition

plans would be developed early enough to ensure that new employment opportunities are in place for them

before mines actually close For many workers this is already too late but if the process begins now there will

be choices available for future retrenched coal workers who live in mining communities and regions Mining

companies could be incentivised andor penalised to give adequate notice to workers and other stakeholders

that closure may be impending and alternative economic opportunities need to be developed

6) Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

Involving the relevant unions in the planning of community transitions can enable them to move towards

becoming more proactive agents helping to plan the transition with critical networks and specific knowledge

about the needs of their members When a coal-fired power station in Washington State USA was scheduled

for closure for environmental reasons unions played a pivotal role persuading environmentalists and others

to delay the closure long enough for a Just Transition to provide different jobs for the workers This made it

possible for the coal resource to be replaced by wind and other renewable generation rather than natural

gasmdasha better environmental outcome and the unions became an active part in the phase out planning

Unions have a heavy workload defending workers rights and pay They need to be supported and financed to

play important roles in community transitions From facilitation and leadership of planning bodies career

planning and advice preferential hiring for displaced workers in the new alternative emerging industries and

leading the establishment of work controlled cooperatives unions have an essential role to play

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

References

ABC Online (2014) Coal lsquogood for humanityrsquo Prime Minister Tony Abbott says at $39b Queensland mine opening httpwwwabcnetaunews2014-10-13coal-is-good-for-humanity-pm-tony-abbott-says5810244 Retrieved 10th of November 2015

After Coal (2015) Community Regeneration West Virginia United States httpaftercoalcomengage-your-community Retrieved 10th of November 2015

Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

Arabella Advisors (2015) Measuring the Growth of the Global Fossil Fuel Divestment and Clean Energy Investment Movement httpwwwarabellaadvisorscomwp-contentuploads201509Measuring-the-Growth-of-the-Divestment-Movementpdf Retrieved 10th of November 2015

Australian Bureau of Statistics (2014) Australian National Accounts State Accounts 2012ndash13 Canberra Australia Retrieved 10th of November 2015

Australian Bureau of Statistics (2015) MackaymdashCensus Employment by IndustrymdashTime Series Australian Government Department of Employment Retrieved 10th of November 2015

Australian Government Department for Education and Training (2015) Draft National Strategy for International Education Canberra Australian Capital Territory Retrieved 10th of November 2015

Australian Government (2014) Export income to Australia from international education activity in 2013ndash14 Canberra Australia Retrieved 10th of November 2015

BHP Billiton (2013) Coal Briefing httpwwwbhpbillitoncom~mediabhpdocumentsinvestorsreports2013130529_coalbriefingpdf Retrieved 10th of November 2015

Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

Beyond Zero Emissions (2012) Laggard to Leader How Australia Can Lead the World to Zero Carbon Prosperity Melbourne University Melbourne Victoria Retrieved 10th of November 2015

Beyond Zero Emissions (2014) A Fossil Economy in a Changing World Melbourne University Melbourne Victoria httpmediabzeorgaufossileconomyFossilEconomypdf Retrieved 10th of November 2015

Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

One Million Climate Job Campaign (2015) About London United Kingdom httpclimatejobsorgzaabout Retrieved 10th of November 2015

Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 22: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

12 | JOBS AFTER COAL A Just Transition for Queensland

This is the marketplace in which Australiarsquos exported coal competes and this is the marketplace that holds the

livelihoods of workers and communities in its hands The current state and future outlook of the coal industry

suggests that it would be risky not to scale down the thermal coal industry and at least restrict any new mine

expansions in the coking coal sector There are those who remain positive about the industryrsquos future but

recent events in the coal industry and uncertainty over medium and long term suggest that there are better

industries to back Behind these diverse risks threatening the coal industry is the inescapable scientific

fact that we cannot afford to burn any more coal from new coal mines if we want to decrease the risk of our

already fifty fifty chance of avoiding the worst impacts of global warming (IPCC 2013) If we wanted to try

and remove the total risk of runaway climate change we could not even afford to burn the coal that are sitting

in trucks on trains at port yards and in ships Not even the coal travelling on conveyors into power station

furnaces about to be burnt right this very moment

The carbon bubbleFrom the South Sea Bubble as well as the housing and dotcom bubbles of the last decade periodic over-

investment has been made into sectors deemed too important to fail The rush and hubris of investors seeking

incomparable profits to finance such industries has led to speculative bubbles of over-estimated value that

eventually burst In the economic fallout that results working people carry the burden while the speculators

and profiteers generally are not held accountable Another speculative bubble has formed and it dwarfs the

size of all of the bubbles that have come before it It is called the Carbon Bubble (Tracker 2015)

One of the few things world leaders agreed upon at the Copenhagen climate talks was that the Earth needs to

stay below 2degC warming to minimize the risk of runaway climate change

bull If we are to avoid going over 2degC we can emit only 565 more gigatonnes of carbon dioxide (IPCC 2007)

bull Burning the fossil fuel that corporations now have in their reserves would result in emitting 2795

gigatonnes of carbon dioxidemdashfive times the safe amount (Leaton 2013)

The Intergovernmental Panel on Climate Change has now produced its own carbon budget They have calculated

that if we continue pumping carbon into the atmosphere at todayrsquos rate this budget will be exhausted within

15ndash25 years (IPCC 2013) This means there will be growing political pressure on the fossil fuel industry to

keep most of its reserves in the ground That pressure has already begun around the world Citizens are pressing

their superannuation funds councils banks universities and other institutions to divest from fossil fuels with

growing success The year 2013 saw several major financial institutions recognise the financial and ethical

implications of continuing to finance fossil fuels with Norwegian Storebrand Rabobank and the World Bank

among those who made major announcements on divestment or cutting loans In 2014 major institutions

including Stanford University the Australian National University and Oxford University have divested their fossil

fuel funds (Advisors 2015) So far in 2015 local councils in Australia such as Moreland Newcastle Byron Bay

Melbourne and many more have also divested (Ryan 2015) Divestment is now going mainstream and will have

increasing impacts on fossil fuel company shares into the future

JOBS AFTER COAL A Just Transition for Queensland | 13

As a result of the momentum of the global divestment movement international stock exchanges are creating

new indexes to exclude fossil fuels in preparation of the impending seismic shift in global finances In late

April 2014 the worldrsquos largest fund manager Blackrock joined with the FTSE Group in London to create

a new index The ex-Fossil Fuels Index Series is an innovative set of benchmark indices that excludes

companies directly engaged in extracting so-called ldquostranded assetsrdquo in the hydrocarbons industry ldquoThis

is one of the fastest-moving debates I think Irsquove seen in my 30 years in marketsrdquo FTSE managing director

Kevin Bourne told the Financial Times (Clarke 2014) The Bank of England is now investigating its exposure

to risk from its fossil fuel investments To top that off the worldrsquos biggest sovereign wealth investment fund in

Norway has recently dumped coal investments (Carrington 2015) The largest contribution to climate change

from the fossil fuels in company inventories at present is from coal Because it has the largest climate impact

per unit of useful energy it is being targeted for early phase out

The book value of fossil fuel companies is determined not only by their current infrastructure and deposits

undergoing extraction but also by the size of their legally claimed reserves Because the book value of so

many companies has greatly exceeded their realisable value as emissions restrictions come into place a

speculative bubble has formed Unfortunately bubbles usually burst in the end leaving behind stranded

assets and stranded capitalmdashand leaving workers in the lurch The only alternative is a mature and planned

phase out of the industry that slowly devalues and deregisters fossil fuel reserves at a pace that does not lead

to financial crisis A planned phase out that gives time for just employment transitions for fossil fuel

communities

500

1000886

565

1500

2000

2500

3000

already burnt

remaining

2000ndash2050

2011ndash2050

Coal 2˚Global carbon

budget

Oil

Gas

GtC

O2

Global fossil fuel reserves

Figure 6 Carbontracker 2012 report The Carbon Bubble

14 | JOBS AFTER COAL A Just Transition for Queensland

In 2013 the report Unburnable Carbon highlighted that ldquoCompany valuation and credit ratings

methodologies do not typically inform investors about their exposure to these stranded assetsrdquo (Leaton

2013) This is very troubling when considering that the supporting share value of these reserves was $4

trillion in 2012 and that they serviced $127 trillion in outstanding corporate debt over the same period We

need to challenge these methodologies (Tracker 2015) In a move that signals a step towards the solutions

required the World Bank the European Investment Bank and the US Export-Import Bank have all announced

that they will not fund further coal-fired power plants except in exceptional circumstances As changes in

policy by the major coal consumers the uptake of renewables and the need to stay within the global carbon

budget begin to bite it is high-cost producers who will be squeezed first Australia is considered a high-cost

producer because of our strong industrial relations and wage laws which makes it all the more necessary that

our governments are vigilant and prepared for impending macroeconomic change (Cleary 2015)

SummaryThis is the environment in which the Australian coal industry finds itself Internationally coal is no longer

looking like a safe long-term investment within the context of the rapid changes afoot in the world The coal

industry leaders are either in denial about their industryrsquos future or are determined to squeeze as much profit

as possible until the cost gets worn by workers and their communities (Saunders 2015)

The issues of climate change demands for cleaner air and more efficient new technologies The realities of

the market are revealing coal as the sunset industry it really is This is not an industry Queenslanders can

rely on to create a stable resilient and sustainable economy It cannot be relied upon for future wealth

and future jobs We have been warned by the UN Climate Change Secretariatrsquos Executive Secretary that the

diversification and a managed transition away from coal is what we need to do and we need to heed this

warning (Australian 2015)

JOBS AFTER COAL A Just Transition for Queensland | 15

3 Assessing some of the economic opportunities in mining regions

IntroductionThe great state of Queensland is endowed with sustainable human and environmental resources that have the

potential if we choose to harness it to drive a balanced diverse and resilient economy for generations to

come Diversifying Queenslandrsquos economy to create sensible and stable prosperity beyond the boom and bust

vagaries of the mining industry must be a key objective of the Queensland Government The Newman LNP

Governmentrsquos Queensland Plan headline was lsquoforging diversity and prosperityrsquo (Government 2014) But

throughout Newmanrsquos reign as premier no action was taken Under the new Palaszczuk Labor Government

there has been some effort to support economic diversification across the state This is insufficient because as

of yet nothing has been done to adequately fund facilitate and empower the actual communities where

mining takes place The grassroots Labour Environmental Action Network an organisation within the

Australian Labour Party has called for change At the 2015 Queensland ALP State Conference they put

forward a motion that was passed calling on the state government to prepare a just transition policy before the

next conference (ALP 2015)

Grain harvest

16 | JOBS AFTER COAL A Just Transition for Queensland

Most importantly both major parties have continued their relentless support for further coal mine expansions

that inherently suffocate the process of diversification

With the coal industry forecast to be in a lsquostructural declinersquo by political leaders and bankers alike it is now

essential that the focus for economic development be on industries that can bring sustainable prosperity to

Queensland (Burrell 2014 Robins 2014) In the United Kingdom under Prime Minister Thatcher the world

witnessed the consequences of industries closing without planning and without investment to transition local

communities and industries

The following section of the report outlines how the opportunities for sustainable economic development

are already known Queensland has well-established sectors with bountiful potential in agriculture tourism

manufacturing and education It also has the opportunity to capitalise on a boom in renewable energy and

bio-industrial products to create more sustainable economic sectors These industries are ready to fill the

void that will be and is being left by coal however they lack the support needed to ensure their presence in

mining communities to provide a just transition away from coal where it is most needed

Agriculture and aquacultureCurrently the Queensland agricultural sector is worth near $147 billion and employs over 90000 people

(Queensland Government 2012) The sector has the potential to massively expand its food exports to Asia as

population and economic growth continue to surge in the dynamic economic region Through the competitive

advantage of our proximity to Asia and high-quality produce capabilities agricultural products have become

Queenslandrsquos second largest export earner and have the potential for continued growth (Heath 2014) By

increasing availability of farming technology driving productivity minimising costs and focusing on profitable

premium produce markets the Queensland Agricultural Strategy (2012) aims to double the total value of

production for all agricultural commodities by 2040 With innovative new farming approaches and ecosystem

system management strategies such increases in production are possible in a way which sustainably manages

and regenerates the land

To reduce pressure on fish stocks from home and abroad the promotion of aquaculture could be further

encouraged across the state This industry is worth $10 Million a year (Lucas DLGP 2011) At present

there are several sites located along the coast however research conducted over the last decade has

identified future sites for land based aquaculture Industry consultation aquaculture management training

programs and related issues in developing a workforce need to be considered (Plan 2012) The Queensland

Aquaculture Industry Federation sees the need for continued collaboration between government and other

stakeholders in order for this industry to reach itsrsquo potential as a strong core industry (Federation 2015)

The Department of Employment Economic Development and Innovation is leading the government drive to

JOBS AFTER COAL A Just Transition for Queensland | 17

develop the aquaculture industry This could see a future where aquaculture goes further than just meeting

domestic demand and grow to cater for high value export markets (Lucas DLGP 2011)

New opportunities in animal genetics aquaculture horticulture and bio-processing are driving agriculture

and aquaculture sector growth in new directions Both industries are about creating intergenerational

economic sustainability Choosing these industries that have unlimited potential to sustain our communities

and our ecosystems over mining is choosing long-term jobs over short-term jobs that cannot be passed on to

the next generation The bottom line is that we live in a hungry world and Queensland is well placed to be a

reliable and sustainable source of food to other nations without the agricultural potential we are endowed with

(Government 2014)

Tourism and recreational fishingDespite setbacks due to the high Australian dollar and loss of skilled workers to the mining boom the

tourism industry is still a critical part of the Queensland economy with massive future potential (Dr Tien Duc

Pham 2015) The tourism industry made a significant employment contribution providing 124000 jobs in

2010ndash11 with steady growth in international visitor nights (Deloitte Access Economics 2012) Queensland

has the potential to become a global leader in tourism and ecotourism and by doing so to create more

jobs and revenue (Government 2014) This will be possible similarly as in agriculture by promoting the

experiences available in our natural places and the quality hospitality we can provide to the growing Asian

middle class (Wilson 2013) The Chinese tourism market is seeking clean fresh and new experiences that

Queensland can cater to and is expected to be worth $74 billion by 2020 (Guterres 2014) Significant to

Queenslandrsquos potential in tourism is our ability to expand the tourism industry in the authentically Australian

rural and stunningly beautiful coastal mining communities where new economic activities are most needed

Further mining expansion in such places threatens to do to tourism what the growth in heavy industry did to

Gladstonersquos economic diversity where fishing and tourism are now non-existent

Although sustainably managed fisheries have the potential to provide continued economic prosperity to

Queensland there lies a major opportunity in net free fisheries to develop as tourism industries specifically

in coal mining regions A great recent example of this taking place is the newly established Net Free Zone

between from the Northern end of St Helens beach to Cape Hillsborough (Spelitis 2015) Along with three

other net free zones across the state the extent of the cumulative commercial opportunities for sustainable

tourism the net free zones have created has made it one of the three pillars as part of the 2020 vision for the

Queensland has the opportunity to develop an abundant and resilient agricultural industry that supports the transition to sustainable prosperity

18 | JOBS AFTER COAL A Just Transition for Queensland

Queensland Tourism Industry Council (Council 2015) The Mackay Isaac and Whitsunday (MIW) coal mining

region has excellent accessibility to a variety of fishing pursuits In addition to the new net free zone ther are

five fresh water stocked impoundment fisheries creating opportunities to promote lake beach offshore and

deepwater angling Improvement of accommodation facilities quality of jetties access roads and coordinating

fish trails with regional events could maximise visitation from recreational and tourism markets (Mackay

Tourism Tourism Queensland 2012) Charter fishing operatiors tackle stores campsites motels boat sales

boat building and maintenance all have the opportunity of benefitted from growth from the recreational fishing

tourism industry (Lucas DLGP 2012)

Higher educationOver the past decade millions of international students have visited Queensland for our quality tertiary

institutions and enjoyable lifestyle International education is Queenslandrsquos biggest service export with

nearly $2431 million being generated in 2013ndash14 alone (Australian Government 2014) The majority

of Queensland is strategically located in the latitudinal tropical zone where at a global level more than

50 of the worldrsquos population is forecasted to live by 2050 (Australian Government 2015) This makes

Queenslandrsquos universities well placed to develop the partnerships and research innovations tailored to the

challenges and opportunities of the new tropically-oriented world This will help Queensland and especially

North Queensland to attract increasing levels of international students to be part of our high-quality tropical

research institutions These students will increase spending through tourism support the creation of our own

skilled and globally connected workforce and connect Australia to business networks and opportunities across

the world In 2013ndash14 the Cairns region benefitted to the tune of $1375 million from international students

(McGuiggan 2014) With the right policies these benefits already being experienced primarily in Cairns

Townsville and Brisbane can be spread further across Queensland to make international education a strong

economic driver in transitioning mining communities

Bio-industrial productsAs the world moves away from fossil fuels the demand for cleaner more sustainable fuel sources will grow

(Emissions 2014) By using excess organic matter produced through food production to develop bio-industrial

products Queensland has the potential to export clean and sustainable fuels and bio-plastic materials to the

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Tourism is about experiences not extraction It has the potential to share Queensland beauty with the rest of the world and create sustainable local economies in the process

Queenslandrsquos greatest resource is the minds of its people We can share and co-create our innovations and learning with students from all over the world who want to make Queensland the launch pad for their careers

JOBS AFTER COAL A Just Transition for Queensland | 19

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Sorghum fields

20 | JOBS AFTER COAL A Just Transition for Queensland

Queensland is well placed to develop biofuel products from waste and oil crops such as Pongamia and algae

in addition to using the statersquos advanced sugarcane industry to convert excess cane using efficient cellulosic

processes Recent scientific developments in bio-plastics at the University of Queensland show that as a

state Queensland has the skills and ability to build a bio-industrial products industry that can contribute to a

sustainable economic future (Queensland 2015)

Renewable energyQueensland the sunshine state has enormous potential to generate electricity from the sun wind and waves

in addition to many other abundant renewable energy sources (Green 2012) Renewable energy has for a long

time been the catch cry from environmentalists as the complete solution to creating the jobs necessary to

replace the fossil fuel industry This report has been written partially to show recognition that as much as

renewable energy has the potential to create more jobs and replace fossil fuel domestic energy production it

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Gemasolar solar thermal power station Spain

JOBS AFTER COAL A Just Transition for Queensland | 21

cannot completely replace all of the coal

export industry jobs Numerous studies

show that with strong climate policies

over 7100 jobs can be created in

Queensland through renewable energy

by 2030 (Institute 2011) Thousands of

these jobs will be in regional

Queensland These should be prioritised

for regions where the mining industry

has developed rural communities in

need of new economic opportunities Far

North Queensland is especially suited to

further renewable energy investment

because of its climatic conditions and

because of the expensive transmissions

losses from having energy wired from

southern power sources (Allen 2011)

This makes it essential that government

policy ensures that the fair share of the

$35 billion in potential renewable

energy investment goes to rural mining

communities not only where it is most

needed economically but where it

makes the most business sense

(Department of Employment 2009)

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Queensland has the potential to become a smart sunshine state powered by clean and sustainable renewable energy By doing this we will be creating jobs in rural mining communities where they are needed most and building a foundation for a new sustainable economy

22 | JOBS AFTER COAL A Just Transition for Queensland

4 Community transitions Global case studies

There are communities around the worldwhich have reinvented themselves after the end of coal mining and

developed prosperous economies in doing so It has been a struggle but where there is a level of government

support inspired local leadership and the community is working together to regenerate its economy it has

been possible (Coal 2015) We are not suggesting any of these examples can be directly transferred to

Queensland communities facing the end of coal mining The object of these case studies is not to provide a

blueprint for Mackay Gladstone Rockhampton or mining towns in Central Queensland but to show the

diversity of ideas that have worked in other places that might stimulate our local communities to reinvent

themselves too

Hazelwood coal power station La Trobe Valley Vic

JOBS AFTER COAL A Just Transition for Queensland | 23

La Trobe ValleyIn the brown coal producing region of the La Trobe Valley in Victoria a grassroots transitionary force has been

underway for the past fifteen years Earthworker was set up by union and climate change activists seeking a

real alternative to coal and privately owned business models Earthworker Cooperativersquos mission is to create

jobs that respond to the lsquochallenges of climate change and the need for local job creation by facilitating the

establishment of worker-owned cooperatives hellip in sustainability-focused industriesrsquo (Earthworker 2015)

Their current focus is the establishment of a cooperative producing solar hot water systems in partnership

with an existing business called lsquoEverlast Hydro Systemsrsquo Their goal is to take production to Morwell in the

La Trobe Valley where workers are in need of an alternative to the coal industry The unique cooperative model

has made selling arrangement possible through inserting the option to buy a solar hot water system through

enterprise bargaining agreements

BanwenThe DOVE workshop in Banwen South Wales (Dove 2015) was started by agroup of women who during

the 1984ndash85 coal minersrsquo strike decided that community-based education was the most practical path to

regenerate the local economy Setting up shop in an abandoned mine office they developed a series of adult

education workshops for women Three decades later the DOVE building hosts a diverse set of small-scale

entrepreneurs including a daycare a library a community garden and a cafeacute featuring local foods

OrkneyOrkney like Central Queensland is a relatively isolated place with a scattered population Situated at the

top of Scotland two hours from the mainland by ferry Orcadians like Central Queenslanders often feel

like spectators to what goes on in the rest of their country They also feel vulnerable to central government

decisions and are often irritated by the lack of understanding of island life on the part of distant authoritiesmdash

its particular customs dialect and ways of doing things Since Norse times Orkney islanders burned peat (a

very young form of coal) as their primary fuel source but all the peat has been dug up This traditional way

of life where each farming family had its own peat bank and spent long summer days cutting and drying

peats while sharing picnics as children played is gone Another non-renewable energy source North Sea oil

discovered in the 1970s brought positive and negatives for the island It turned the tide of depopulation but

like the peat banks the oil is depleting and another lsquoend of an erarsquo is approaching Orcadians have woken up

to the fact that they canrsquot continue to hark back to the past and are confronting the issues of a future without

fossil fuels

Over the last three decades European community funding has helped Orkney to equip itself for the green

energy revolution Orkney now plays a global role in the evolution of wave and tidal technologies and

significant research and development work is creating new employment opportunities A high school in

Stromness was converted into the European Marine Energy Centre and is now a world leader providing

developers the opportunity to test full-scale prototypes in the sea The worldrsquos largest single-rotor tidal turbine

24 | JOBS AFTER COAL A Just Transition for Queensland

was the first in Scotland to be connected to the national grid from this centre Marine energy combined with

an expansion of wind turbines means that the island is now self-sufficient in electricity These renewable

energy developments have created jobs in the Orkneys in civil works and erection grid connection and

communications (Stuart 2011)

Investment in renewable energy and its associated RampD has attracted people to live work and study on the

island Islanders used to have to leave to get tertiary education but it is now possible to study for an MSc in

renewable energy at a Heriot Watt University campus in Stromness A new generation of Orcadians have grown

up to see renewable energy as the way of the future something quite ldquonormalrdquo which will provide greater

opportunities for their children to stay on the island with genuine prospects for employment in meaningful

jobs requiring a wide range of skills and qualifications This shows what a community in transition to a low

carbon future can look like

Nord-Pas De CalaisUntil 1986 the north-east region of France Nord-pas de Calais was a major coal mining area It still boasts

huge twin tailings mountains the largest in Europe which have become a tourist attraction It is known

to Australians for the war cemeteries associated with the battle of the Somme in WW1 but it has recently

undergone a remarkable transformation towards a truly sustainable economy Old coal mines at Lens have

been transformed into an art gallery displaying works from the Louvre collection in Paris Hundreds of people

are trained in energy efficiency solar energy and green architecture at a new training centre in nearby Loos-

en-Gohelle

The Chamber of Commerce invited economist and social visionary Jeremy Rifkin of the TIR Consulting

Group and his chief economist Skip Laitner to apply their model of the third industrial revolution to the

district (Riftkin 2015) Rifkinrsquos Third Industrial Revolution combines renewable energy energy efficiency

and the connectivity of the internet Buildings are energy generators and hydrogen is used as energy storage

After working with the community for some time the Master Plan was published in 2013 and envisages

that 100000 new jobs can be created by the transition plan (LLC 2013) Certainly the population has not

declined since mining days and has even slightly increased Inspired local leadership was the key in this

community plus some outside funding to help with the underpinning research

Appalachia (Kentucky)The transition process is just starting here but the community is very organised Kentuckians For The

Commonwealth has been battling the negative effects of coal mining for some decades and is now planning a

transition to ldquobuilding a better future beyond coalrdquo (Commonwealth 2015) Last year they held a conference

in Harlan Kentucky right in the middle of the Appalachian coal fields and invited guests from other US

regions in the same position as well as from Wales It is too soon to see what the outcome of their learning

process will be but they are another example of a community taking its future into its own handsmdashoptimistic

that there is a better future after coal

JOBS AFTER COAL A Just Transition for Queensland | 25

5 A just transition for coal mining communities policy recommendations

The opportunities to transition from unsustainable coal mining to prosperous communities with decent

employment will not just materialise by themselves It will need the political will and the right incentives to

ensure that communities are not left fending for themselves with unemployment increasing and families

in need of long-term welfare But not only is the political will not currently there both major political

parties continue to support the expansion of this sunset industry and by doing so are making the transition

challenges progressively more difficult (Denniss 2012) For too many years governments have uncritically

supported the coal mining sector Entire government departments have been focused on facilitating mining

with tax incentives weakening assessment and approval processes along with providing through tax payer

money established industrial infrastructure to support new projects Government policy often seeks to grow

royalties income by supporting the extraction of as much coal as possible as an escape the challenge of

finding other ways to increase state revenue New sustainable industries in coal communities will need just as

much if not more support while it gets started

We propose that communities local businesses workers unions community groups environment groups

local government and state and federal governments all need to be involved in planning a transition to

alternative forms of economic development and providing new jobs We call this a Just Transition (Anthea

Bill amp Evans1 2008 Brecher 2012) Just Transition is a framework for a fair and sustainable shift to a low

carbon economy proposed by trade unions and supported by environmental NGOs A Just Transition holds

that a shift to a lower carbon economy is vital to avoid dangerous climate change

Bimblebox Nature Refuge

26 | JOBS AFTER COAL A Just Transition for Queensland

Tough targets to cut greenhouse pollution supported by new environmental regulations and emerging carbon

markets will transform the global economy over the next decade These shifts will have major implications

for working people in energy supply industry and transport and for everyone as consumers There is a concern

that significant periods of economic restructuring in the past have often happened in a chaotic fashion

leaving ordinary workers along with their families and communities to bear the brunt of the transition to

new ways of producing wealth A just transition seeks to prevent such injustice becoming a feature of this

transition suggesting that it would not only be morally wrong and socially damaging but would undermine the

credibility of the transition itself and could slow or even halt the changes that must be made

It is through the challenges of communicating the urgency of climate change and other social and

environmental impacts that much of the debate about coal and its consequences for land water and the

climate has become unnecessarily adversarial and polarised Coal mining and power generation communities

deserve acknowledgement and appreciation for all that they have historically and currently contributed to

our country and our economy In communicating the economic shifts that are taking place and facilitating

the necessary transitions the Australian community needs to be respectful of the history and identity of coal

communities Environment groups government unions and the community need to initiate and engage in

the discussions about transitions in an open honest and compassionate manner Only by approaching the

transition in this way can the adversarial nature of the debate be broken down to make way for transformative

mutually respectful and holistic solutions

Whitsundays lsquoHave a Heart for the Reefrsquo

JOBS AFTER COAL A Just Transition for Queensland | 27

A just transition recognises that support for policies are conditional on a fair distribution of the costs and

benefits of those policies across the economy A just transition should also recognise that the creation of

opportunities for active engagement by those affected in determining the future wellbeing of themselves

and their families is essential for the long term empowerment of citizens and communities The following

recommendations have been written with the aim of emphasising such community empowerment as a priority

Recommendations

1) Establishing a unit within the State Government to support coal mining regions to transition to new economies

Specific institutions are needed to develop transition plans They need to have strong government support

and funding regional offices and representation from diverse stakeholders A dedicated unit within the

Department of Infrastructure Local Government and Planning could be established to oversee this work

They could work on the ground in the main coal mining communities to bring government expertise into

regional entities that would develop local plans that involve and empower the whole community This unit

or a connected unit would analyse existing barriers to the creation of competitive advantages for alternative

sustainable industries and would identify actions the State Government can take to support such creation

Any policy and support should come with clear conditions and timeframes These regional entities would

need generous budgets to assist local groups to develop their transition strategies to support research re-

training and the development of new business and community start-up initiatives based on the needs and

strategies of communities The key to communities becoming economically resilient is high levels of autonomy

and freedom in shaping their economic futures Research funding available to the regional entities will be

essential to the empowerment of local leadership Research funding should at least reach the OECD research

funding average and it should prioritise low carbon technologies and industry sectors with increased triple

bottom line sustainability potential

2) Support community leadership in diversifying local economies through the establishment of democratic regional entities

In each mining community a group of traditional and non-traditional community leaders willing to think

beyond lsquoBusiness as Usualrsquo to imagine a better future could be called together to work in collaboration with

and be resourced by the state government managed regional entities mentioned in recommendation one

The leaders would come from diverse backgrounds such as from local governments business associations

unions farming groups renewable energy businesses and educational institutions The objectives of these

leadership groups would be tailored to each community The objectives would in broad terms be to increase

employment in new diverse industries based on sustainable production and publicservice sector job creation

Expert facilitation alongside inclusive and democratic community engagement initiatives would be essential

to ensure the process and environment for creativity and innovation is maximised To develop such groups

it would be necessary to take stock of the existing resources skills and successful businesses on which a

new future can be built In addition an analysis of the social environmental and economic needs of the

28 | JOBS AFTER COAL A Just Transition for Queensland

community would also be beneficial These groups could then establish economic diversification projects

including value-added local production worker controlled co-operative enterprises and new community-

based enterprises that economically empower the local community Activities may also include support for

alternative industries in regard to process restructuring or subsidising the wages of workers displaced from

higher paying traditional industries

3) Support researching and communicating how the just transition can take place

Consistent research is needed on the best options to support the state and national economies to transition

This requires ongoing situational analysis of the global energy market shifts at both government levels In

addition each mining region will need assistance to research the number of jobs that are dependent on coal

the skills of those employed the level of local national and global long- and short-term risk to local mining

operations the transferability of jobs to other industries local opportunities for new enterprises and their

needs and the local educational and training needs and resources A key issue requiring research will be

around how the transitition scenarios differ depending on the level and relativity of thermal and coking coal

industries across coal mining communities The process for sourcing this information at a local and state

government level should be integrated into a policy feedback loop to support cyclical situational analysis and

policy adjustments from all levels of government This research should take place at the state level and be

encouraged at the industry and local level through grants

Mackay Central Queensland

JOBS AFTER COAL A Just Transition for Queensland | 29

4) Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

Many existing Queensland industries including those not highlighted in this report have the potential to

carry Queensland towards a new sustainable economy [sC5]mdashbut they will need support to do so Instead

of continuing to support and lower costs for the coal mining industry we need a plan to grow competitive

advantage across industries that have potential for sustainability and growth in regional mining communities

Along with industry and community organisations the State Government could organise a State Economic

Summit to assess existing industry clusters identify the potential of new and emerging industries consider

their competitiveness and key capabilities and identify barriers to increasing competitive advantage The

findings and recommendations from this Summit could be used to inform the work of the Unit established in

bullet point one above and the research outlined in bullet point two

5) Provide social protection of workers their families and incomes

If mines close suddenly workers need protection for their incomes and social services and possible relocation

even though many miners these days do not live in the communities where they mine Ideally these transition

plans would be developed early enough to ensure that new employment opportunities are in place for them

before mines actually close For many workers this is already too late but if the process begins now there will

be choices available for future retrenched coal workers who live in mining communities and regions Mining

companies could be incentivised andor penalised to give adequate notice to workers and other stakeholders

that closure may be impending and alternative economic opportunities need to be developed

6) Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

Involving the relevant unions in the planning of community transitions can enable them to move towards

becoming more proactive agents helping to plan the transition with critical networks and specific knowledge

about the needs of their members When a coal-fired power station in Washington State USA was scheduled

for closure for environmental reasons unions played a pivotal role persuading environmentalists and others

to delay the closure long enough for a Just Transition to provide different jobs for the workers This made it

possible for the coal resource to be replaced by wind and other renewable generation rather than natural

gasmdasha better environmental outcome and the unions became an active part in the phase out planning

Unions have a heavy workload defending workers rights and pay They need to be supported and financed to

play important roles in community transitions From facilitation and leadership of planning bodies career

planning and advice preferential hiring for displaced workers in the new alternative emerging industries and

leading the establishment of work controlled cooperatives unions have an essential role to play

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

References

ABC Online (2014) Coal lsquogood for humanityrsquo Prime Minister Tony Abbott says at $39b Queensland mine opening httpwwwabcnetaunews2014-10-13coal-is-good-for-humanity-pm-tony-abbott-says5810244 Retrieved 10th of November 2015

After Coal (2015) Community Regeneration West Virginia United States httpaftercoalcomengage-your-community Retrieved 10th of November 2015

Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

Arabella Advisors (2015) Measuring the Growth of the Global Fossil Fuel Divestment and Clean Energy Investment Movement httpwwwarabellaadvisorscomwp-contentuploads201509Measuring-the-Growth-of-the-Divestment-Movementpdf Retrieved 10th of November 2015

Australian Bureau of Statistics (2014) Australian National Accounts State Accounts 2012ndash13 Canberra Australia Retrieved 10th of November 2015

Australian Bureau of Statistics (2015) MackaymdashCensus Employment by IndustrymdashTime Series Australian Government Department of Employment Retrieved 10th of November 2015

Australian Government Department for Education and Training (2015) Draft National Strategy for International Education Canberra Australian Capital Territory Retrieved 10th of November 2015

Australian Government (2014) Export income to Australia from international education activity in 2013ndash14 Canberra Australia Retrieved 10th of November 2015

BHP Billiton (2013) Coal Briefing httpwwwbhpbillitoncom~mediabhpdocumentsinvestorsreports2013130529_coalbriefingpdf Retrieved 10th of November 2015

Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

Beyond Zero Emissions (2012) Laggard to Leader How Australia Can Lead the World to Zero Carbon Prosperity Melbourne University Melbourne Victoria Retrieved 10th of November 2015

Beyond Zero Emissions (2014) A Fossil Economy in a Changing World Melbourne University Melbourne Victoria httpmediabzeorgaufossileconomyFossilEconomypdf Retrieved 10th of November 2015

Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

One Million Climate Job Campaign (2015) About London United Kingdom httpclimatejobsorgzaabout Retrieved 10th of November 2015

Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 23: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

JOBS AFTER COAL A Just Transition for Queensland | 13

As a result of the momentum of the global divestment movement international stock exchanges are creating

new indexes to exclude fossil fuels in preparation of the impending seismic shift in global finances In late

April 2014 the worldrsquos largest fund manager Blackrock joined with the FTSE Group in London to create

a new index The ex-Fossil Fuels Index Series is an innovative set of benchmark indices that excludes

companies directly engaged in extracting so-called ldquostranded assetsrdquo in the hydrocarbons industry ldquoThis

is one of the fastest-moving debates I think Irsquove seen in my 30 years in marketsrdquo FTSE managing director

Kevin Bourne told the Financial Times (Clarke 2014) The Bank of England is now investigating its exposure

to risk from its fossil fuel investments To top that off the worldrsquos biggest sovereign wealth investment fund in

Norway has recently dumped coal investments (Carrington 2015) The largest contribution to climate change

from the fossil fuels in company inventories at present is from coal Because it has the largest climate impact

per unit of useful energy it is being targeted for early phase out

The book value of fossil fuel companies is determined not only by their current infrastructure and deposits

undergoing extraction but also by the size of their legally claimed reserves Because the book value of so

many companies has greatly exceeded their realisable value as emissions restrictions come into place a

speculative bubble has formed Unfortunately bubbles usually burst in the end leaving behind stranded

assets and stranded capitalmdashand leaving workers in the lurch The only alternative is a mature and planned

phase out of the industry that slowly devalues and deregisters fossil fuel reserves at a pace that does not lead

to financial crisis A planned phase out that gives time for just employment transitions for fossil fuel

communities

500

1000886

565

1500

2000

2500

3000

already burnt

remaining

2000ndash2050

2011ndash2050

Coal 2˚Global carbon

budget

Oil

Gas

GtC

O2

Global fossil fuel reserves

Figure 6 Carbontracker 2012 report The Carbon Bubble

14 | JOBS AFTER COAL A Just Transition for Queensland

In 2013 the report Unburnable Carbon highlighted that ldquoCompany valuation and credit ratings

methodologies do not typically inform investors about their exposure to these stranded assetsrdquo (Leaton

2013) This is very troubling when considering that the supporting share value of these reserves was $4

trillion in 2012 and that they serviced $127 trillion in outstanding corporate debt over the same period We

need to challenge these methodologies (Tracker 2015) In a move that signals a step towards the solutions

required the World Bank the European Investment Bank and the US Export-Import Bank have all announced

that they will not fund further coal-fired power plants except in exceptional circumstances As changes in

policy by the major coal consumers the uptake of renewables and the need to stay within the global carbon

budget begin to bite it is high-cost producers who will be squeezed first Australia is considered a high-cost

producer because of our strong industrial relations and wage laws which makes it all the more necessary that

our governments are vigilant and prepared for impending macroeconomic change (Cleary 2015)

SummaryThis is the environment in which the Australian coal industry finds itself Internationally coal is no longer

looking like a safe long-term investment within the context of the rapid changes afoot in the world The coal

industry leaders are either in denial about their industryrsquos future or are determined to squeeze as much profit

as possible until the cost gets worn by workers and their communities (Saunders 2015)

The issues of climate change demands for cleaner air and more efficient new technologies The realities of

the market are revealing coal as the sunset industry it really is This is not an industry Queenslanders can

rely on to create a stable resilient and sustainable economy It cannot be relied upon for future wealth

and future jobs We have been warned by the UN Climate Change Secretariatrsquos Executive Secretary that the

diversification and a managed transition away from coal is what we need to do and we need to heed this

warning (Australian 2015)

JOBS AFTER COAL A Just Transition for Queensland | 15

3 Assessing some of the economic opportunities in mining regions

IntroductionThe great state of Queensland is endowed with sustainable human and environmental resources that have the

potential if we choose to harness it to drive a balanced diverse and resilient economy for generations to

come Diversifying Queenslandrsquos economy to create sensible and stable prosperity beyond the boom and bust

vagaries of the mining industry must be a key objective of the Queensland Government The Newman LNP

Governmentrsquos Queensland Plan headline was lsquoforging diversity and prosperityrsquo (Government 2014) But

throughout Newmanrsquos reign as premier no action was taken Under the new Palaszczuk Labor Government

there has been some effort to support economic diversification across the state This is insufficient because as

of yet nothing has been done to adequately fund facilitate and empower the actual communities where

mining takes place The grassroots Labour Environmental Action Network an organisation within the

Australian Labour Party has called for change At the 2015 Queensland ALP State Conference they put

forward a motion that was passed calling on the state government to prepare a just transition policy before the

next conference (ALP 2015)

Grain harvest

16 | JOBS AFTER COAL A Just Transition for Queensland

Most importantly both major parties have continued their relentless support for further coal mine expansions

that inherently suffocate the process of diversification

With the coal industry forecast to be in a lsquostructural declinersquo by political leaders and bankers alike it is now

essential that the focus for economic development be on industries that can bring sustainable prosperity to

Queensland (Burrell 2014 Robins 2014) In the United Kingdom under Prime Minister Thatcher the world

witnessed the consequences of industries closing without planning and without investment to transition local

communities and industries

The following section of the report outlines how the opportunities for sustainable economic development

are already known Queensland has well-established sectors with bountiful potential in agriculture tourism

manufacturing and education It also has the opportunity to capitalise on a boom in renewable energy and

bio-industrial products to create more sustainable economic sectors These industries are ready to fill the

void that will be and is being left by coal however they lack the support needed to ensure their presence in

mining communities to provide a just transition away from coal where it is most needed

Agriculture and aquacultureCurrently the Queensland agricultural sector is worth near $147 billion and employs over 90000 people

(Queensland Government 2012) The sector has the potential to massively expand its food exports to Asia as

population and economic growth continue to surge in the dynamic economic region Through the competitive

advantage of our proximity to Asia and high-quality produce capabilities agricultural products have become

Queenslandrsquos second largest export earner and have the potential for continued growth (Heath 2014) By

increasing availability of farming technology driving productivity minimising costs and focusing on profitable

premium produce markets the Queensland Agricultural Strategy (2012) aims to double the total value of

production for all agricultural commodities by 2040 With innovative new farming approaches and ecosystem

system management strategies such increases in production are possible in a way which sustainably manages

and regenerates the land

To reduce pressure on fish stocks from home and abroad the promotion of aquaculture could be further

encouraged across the state This industry is worth $10 Million a year (Lucas DLGP 2011) At present

there are several sites located along the coast however research conducted over the last decade has

identified future sites for land based aquaculture Industry consultation aquaculture management training

programs and related issues in developing a workforce need to be considered (Plan 2012) The Queensland

Aquaculture Industry Federation sees the need for continued collaboration between government and other

stakeholders in order for this industry to reach itsrsquo potential as a strong core industry (Federation 2015)

The Department of Employment Economic Development and Innovation is leading the government drive to

JOBS AFTER COAL A Just Transition for Queensland | 17

develop the aquaculture industry This could see a future where aquaculture goes further than just meeting

domestic demand and grow to cater for high value export markets (Lucas DLGP 2011)

New opportunities in animal genetics aquaculture horticulture and bio-processing are driving agriculture

and aquaculture sector growth in new directions Both industries are about creating intergenerational

economic sustainability Choosing these industries that have unlimited potential to sustain our communities

and our ecosystems over mining is choosing long-term jobs over short-term jobs that cannot be passed on to

the next generation The bottom line is that we live in a hungry world and Queensland is well placed to be a

reliable and sustainable source of food to other nations without the agricultural potential we are endowed with

(Government 2014)

Tourism and recreational fishingDespite setbacks due to the high Australian dollar and loss of skilled workers to the mining boom the

tourism industry is still a critical part of the Queensland economy with massive future potential (Dr Tien Duc

Pham 2015) The tourism industry made a significant employment contribution providing 124000 jobs in

2010ndash11 with steady growth in international visitor nights (Deloitte Access Economics 2012) Queensland

has the potential to become a global leader in tourism and ecotourism and by doing so to create more

jobs and revenue (Government 2014) This will be possible similarly as in agriculture by promoting the

experiences available in our natural places and the quality hospitality we can provide to the growing Asian

middle class (Wilson 2013) The Chinese tourism market is seeking clean fresh and new experiences that

Queensland can cater to and is expected to be worth $74 billion by 2020 (Guterres 2014) Significant to

Queenslandrsquos potential in tourism is our ability to expand the tourism industry in the authentically Australian

rural and stunningly beautiful coastal mining communities where new economic activities are most needed

Further mining expansion in such places threatens to do to tourism what the growth in heavy industry did to

Gladstonersquos economic diversity where fishing and tourism are now non-existent

Although sustainably managed fisheries have the potential to provide continued economic prosperity to

Queensland there lies a major opportunity in net free fisheries to develop as tourism industries specifically

in coal mining regions A great recent example of this taking place is the newly established Net Free Zone

between from the Northern end of St Helens beach to Cape Hillsborough (Spelitis 2015) Along with three

other net free zones across the state the extent of the cumulative commercial opportunities for sustainable

tourism the net free zones have created has made it one of the three pillars as part of the 2020 vision for the

Queensland has the opportunity to develop an abundant and resilient agricultural industry that supports the transition to sustainable prosperity

18 | JOBS AFTER COAL A Just Transition for Queensland

Queensland Tourism Industry Council (Council 2015) The Mackay Isaac and Whitsunday (MIW) coal mining

region has excellent accessibility to a variety of fishing pursuits In addition to the new net free zone ther are

five fresh water stocked impoundment fisheries creating opportunities to promote lake beach offshore and

deepwater angling Improvement of accommodation facilities quality of jetties access roads and coordinating

fish trails with regional events could maximise visitation from recreational and tourism markets (Mackay

Tourism Tourism Queensland 2012) Charter fishing operatiors tackle stores campsites motels boat sales

boat building and maintenance all have the opportunity of benefitted from growth from the recreational fishing

tourism industry (Lucas DLGP 2012)

Higher educationOver the past decade millions of international students have visited Queensland for our quality tertiary

institutions and enjoyable lifestyle International education is Queenslandrsquos biggest service export with

nearly $2431 million being generated in 2013ndash14 alone (Australian Government 2014) The majority

of Queensland is strategically located in the latitudinal tropical zone where at a global level more than

50 of the worldrsquos population is forecasted to live by 2050 (Australian Government 2015) This makes

Queenslandrsquos universities well placed to develop the partnerships and research innovations tailored to the

challenges and opportunities of the new tropically-oriented world This will help Queensland and especially

North Queensland to attract increasing levels of international students to be part of our high-quality tropical

research institutions These students will increase spending through tourism support the creation of our own

skilled and globally connected workforce and connect Australia to business networks and opportunities across

the world In 2013ndash14 the Cairns region benefitted to the tune of $1375 million from international students

(McGuiggan 2014) With the right policies these benefits already being experienced primarily in Cairns

Townsville and Brisbane can be spread further across Queensland to make international education a strong

economic driver in transitioning mining communities

Bio-industrial productsAs the world moves away from fossil fuels the demand for cleaner more sustainable fuel sources will grow

(Emissions 2014) By using excess organic matter produced through food production to develop bio-industrial

products Queensland has the potential to export clean and sustainable fuels and bio-plastic materials to the

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Tourism is about experiences not extraction It has the potential to share Queensland beauty with the rest of the world and create sustainable local economies in the process

Queenslandrsquos greatest resource is the minds of its people We can share and co-create our innovations and learning with students from all over the world who want to make Queensland the launch pad for their careers

JOBS AFTER COAL A Just Transition for Queensland | 19

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Sorghum fields

20 | JOBS AFTER COAL A Just Transition for Queensland

Queensland is well placed to develop biofuel products from waste and oil crops such as Pongamia and algae

in addition to using the statersquos advanced sugarcane industry to convert excess cane using efficient cellulosic

processes Recent scientific developments in bio-plastics at the University of Queensland show that as a

state Queensland has the skills and ability to build a bio-industrial products industry that can contribute to a

sustainable economic future (Queensland 2015)

Renewable energyQueensland the sunshine state has enormous potential to generate electricity from the sun wind and waves

in addition to many other abundant renewable energy sources (Green 2012) Renewable energy has for a long

time been the catch cry from environmentalists as the complete solution to creating the jobs necessary to

replace the fossil fuel industry This report has been written partially to show recognition that as much as

renewable energy has the potential to create more jobs and replace fossil fuel domestic energy production it

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Gemasolar solar thermal power station Spain

JOBS AFTER COAL A Just Transition for Queensland | 21

cannot completely replace all of the coal

export industry jobs Numerous studies

show that with strong climate policies

over 7100 jobs can be created in

Queensland through renewable energy

by 2030 (Institute 2011) Thousands of

these jobs will be in regional

Queensland These should be prioritised

for regions where the mining industry

has developed rural communities in

need of new economic opportunities Far

North Queensland is especially suited to

further renewable energy investment

because of its climatic conditions and

because of the expensive transmissions

losses from having energy wired from

southern power sources (Allen 2011)

This makes it essential that government

policy ensures that the fair share of the

$35 billion in potential renewable

energy investment goes to rural mining

communities not only where it is most

needed economically but where it

makes the most business sense

(Department of Employment 2009)

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Queensland has the potential to become a smart sunshine state powered by clean and sustainable renewable energy By doing this we will be creating jobs in rural mining communities where they are needed most and building a foundation for a new sustainable economy

22 | JOBS AFTER COAL A Just Transition for Queensland

4 Community transitions Global case studies

There are communities around the worldwhich have reinvented themselves after the end of coal mining and

developed prosperous economies in doing so It has been a struggle but where there is a level of government

support inspired local leadership and the community is working together to regenerate its economy it has

been possible (Coal 2015) We are not suggesting any of these examples can be directly transferred to

Queensland communities facing the end of coal mining The object of these case studies is not to provide a

blueprint for Mackay Gladstone Rockhampton or mining towns in Central Queensland but to show the

diversity of ideas that have worked in other places that might stimulate our local communities to reinvent

themselves too

Hazelwood coal power station La Trobe Valley Vic

JOBS AFTER COAL A Just Transition for Queensland | 23

La Trobe ValleyIn the brown coal producing region of the La Trobe Valley in Victoria a grassroots transitionary force has been

underway for the past fifteen years Earthworker was set up by union and climate change activists seeking a

real alternative to coal and privately owned business models Earthworker Cooperativersquos mission is to create

jobs that respond to the lsquochallenges of climate change and the need for local job creation by facilitating the

establishment of worker-owned cooperatives hellip in sustainability-focused industriesrsquo (Earthworker 2015)

Their current focus is the establishment of a cooperative producing solar hot water systems in partnership

with an existing business called lsquoEverlast Hydro Systemsrsquo Their goal is to take production to Morwell in the

La Trobe Valley where workers are in need of an alternative to the coal industry The unique cooperative model

has made selling arrangement possible through inserting the option to buy a solar hot water system through

enterprise bargaining agreements

BanwenThe DOVE workshop in Banwen South Wales (Dove 2015) was started by agroup of women who during

the 1984ndash85 coal minersrsquo strike decided that community-based education was the most practical path to

regenerate the local economy Setting up shop in an abandoned mine office they developed a series of adult

education workshops for women Three decades later the DOVE building hosts a diverse set of small-scale

entrepreneurs including a daycare a library a community garden and a cafeacute featuring local foods

OrkneyOrkney like Central Queensland is a relatively isolated place with a scattered population Situated at the

top of Scotland two hours from the mainland by ferry Orcadians like Central Queenslanders often feel

like spectators to what goes on in the rest of their country They also feel vulnerable to central government

decisions and are often irritated by the lack of understanding of island life on the part of distant authoritiesmdash

its particular customs dialect and ways of doing things Since Norse times Orkney islanders burned peat (a

very young form of coal) as their primary fuel source but all the peat has been dug up This traditional way

of life where each farming family had its own peat bank and spent long summer days cutting and drying

peats while sharing picnics as children played is gone Another non-renewable energy source North Sea oil

discovered in the 1970s brought positive and negatives for the island It turned the tide of depopulation but

like the peat banks the oil is depleting and another lsquoend of an erarsquo is approaching Orcadians have woken up

to the fact that they canrsquot continue to hark back to the past and are confronting the issues of a future without

fossil fuels

Over the last three decades European community funding has helped Orkney to equip itself for the green

energy revolution Orkney now plays a global role in the evolution of wave and tidal technologies and

significant research and development work is creating new employment opportunities A high school in

Stromness was converted into the European Marine Energy Centre and is now a world leader providing

developers the opportunity to test full-scale prototypes in the sea The worldrsquos largest single-rotor tidal turbine

24 | JOBS AFTER COAL A Just Transition for Queensland

was the first in Scotland to be connected to the national grid from this centre Marine energy combined with

an expansion of wind turbines means that the island is now self-sufficient in electricity These renewable

energy developments have created jobs in the Orkneys in civil works and erection grid connection and

communications (Stuart 2011)

Investment in renewable energy and its associated RampD has attracted people to live work and study on the

island Islanders used to have to leave to get tertiary education but it is now possible to study for an MSc in

renewable energy at a Heriot Watt University campus in Stromness A new generation of Orcadians have grown

up to see renewable energy as the way of the future something quite ldquonormalrdquo which will provide greater

opportunities for their children to stay on the island with genuine prospects for employment in meaningful

jobs requiring a wide range of skills and qualifications This shows what a community in transition to a low

carbon future can look like

Nord-Pas De CalaisUntil 1986 the north-east region of France Nord-pas de Calais was a major coal mining area It still boasts

huge twin tailings mountains the largest in Europe which have become a tourist attraction It is known

to Australians for the war cemeteries associated with the battle of the Somme in WW1 but it has recently

undergone a remarkable transformation towards a truly sustainable economy Old coal mines at Lens have

been transformed into an art gallery displaying works from the Louvre collection in Paris Hundreds of people

are trained in energy efficiency solar energy and green architecture at a new training centre in nearby Loos-

en-Gohelle

The Chamber of Commerce invited economist and social visionary Jeremy Rifkin of the TIR Consulting

Group and his chief economist Skip Laitner to apply their model of the third industrial revolution to the

district (Riftkin 2015) Rifkinrsquos Third Industrial Revolution combines renewable energy energy efficiency

and the connectivity of the internet Buildings are energy generators and hydrogen is used as energy storage

After working with the community for some time the Master Plan was published in 2013 and envisages

that 100000 new jobs can be created by the transition plan (LLC 2013) Certainly the population has not

declined since mining days and has even slightly increased Inspired local leadership was the key in this

community plus some outside funding to help with the underpinning research

Appalachia (Kentucky)The transition process is just starting here but the community is very organised Kentuckians For The

Commonwealth has been battling the negative effects of coal mining for some decades and is now planning a

transition to ldquobuilding a better future beyond coalrdquo (Commonwealth 2015) Last year they held a conference

in Harlan Kentucky right in the middle of the Appalachian coal fields and invited guests from other US

regions in the same position as well as from Wales It is too soon to see what the outcome of their learning

process will be but they are another example of a community taking its future into its own handsmdashoptimistic

that there is a better future after coal

JOBS AFTER COAL A Just Transition for Queensland | 25

5 A just transition for coal mining communities policy recommendations

The opportunities to transition from unsustainable coal mining to prosperous communities with decent

employment will not just materialise by themselves It will need the political will and the right incentives to

ensure that communities are not left fending for themselves with unemployment increasing and families

in need of long-term welfare But not only is the political will not currently there both major political

parties continue to support the expansion of this sunset industry and by doing so are making the transition

challenges progressively more difficult (Denniss 2012) For too many years governments have uncritically

supported the coal mining sector Entire government departments have been focused on facilitating mining

with tax incentives weakening assessment and approval processes along with providing through tax payer

money established industrial infrastructure to support new projects Government policy often seeks to grow

royalties income by supporting the extraction of as much coal as possible as an escape the challenge of

finding other ways to increase state revenue New sustainable industries in coal communities will need just as

much if not more support while it gets started

We propose that communities local businesses workers unions community groups environment groups

local government and state and federal governments all need to be involved in planning a transition to

alternative forms of economic development and providing new jobs We call this a Just Transition (Anthea

Bill amp Evans1 2008 Brecher 2012) Just Transition is a framework for a fair and sustainable shift to a low

carbon economy proposed by trade unions and supported by environmental NGOs A Just Transition holds

that a shift to a lower carbon economy is vital to avoid dangerous climate change

Bimblebox Nature Refuge

26 | JOBS AFTER COAL A Just Transition for Queensland

Tough targets to cut greenhouse pollution supported by new environmental regulations and emerging carbon

markets will transform the global economy over the next decade These shifts will have major implications

for working people in energy supply industry and transport and for everyone as consumers There is a concern

that significant periods of economic restructuring in the past have often happened in a chaotic fashion

leaving ordinary workers along with their families and communities to bear the brunt of the transition to

new ways of producing wealth A just transition seeks to prevent such injustice becoming a feature of this

transition suggesting that it would not only be morally wrong and socially damaging but would undermine the

credibility of the transition itself and could slow or even halt the changes that must be made

It is through the challenges of communicating the urgency of climate change and other social and

environmental impacts that much of the debate about coal and its consequences for land water and the

climate has become unnecessarily adversarial and polarised Coal mining and power generation communities

deserve acknowledgement and appreciation for all that they have historically and currently contributed to

our country and our economy In communicating the economic shifts that are taking place and facilitating

the necessary transitions the Australian community needs to be respectful of the history and identity of coal

communities Environment groups government unions and the community need to initiate and engage in

the discussions about transitions in an open honest and compassionate manner Only by approaching the

transition in this way can the adversarial nature of the debate be broken down to make way for transformative

mutually respectful and holistic solutions

Whitsundays lsquoHave a Heart for the Reefrsquo

JOBS AFTER COAL A Just Transition for Queensland | 27

A just transition recognises that support for policies are conditional on a fair distribution of the costs and

benefits of those policies across the economy A just transition should also recognise that the creation of

opportunities for active engagement by those affected in determining the future wellbeing of themselves

and their families is essential for the long term empowerment of citizens and communities The following

recommendations have been written with the aim of emphasising such community empowerment as a priority

Recommendations

1) Establishing a unit within the State Government to support coal mining regions to transition to new economies

Specific institutions are needed to develop transition plans They need to have strong government support

and funding regional offices and representation from diverse stakeholders A dedicated unit within the

Department of Infrastructure Local Government and Planning could be established to oversee this work

They could work on the ground in the main coal mining communities to bring government expertise into

regional entities that would develop local plans that involve and empower the whole community This unit

or a connected unit would analyse existing barriers to the creation of competitive advantages for alternative

sustainable industries and would identify actions the State Government can take to support such creation

Any policy and support should come with clear conditions and timeframes These regional entities would

need generous budgets to assist local groups to develop their transition strategies to support research re-

training and the development of new business and community start-up initiatives based on the needs and

strategies of communities The key to communities becoming economically resilient is high levels of autonomy

and freedom in shaping their economic futures Research funding available to the regional entities will be

essential to the empowerment of local leadership Research funding should at least reach the OECD research

funding average and it should prioritise low carbon technologies and industry sectors with increased triple

bottom line sustainability potential

2) Support community leadership in diversifying local economies through the establishment of democratic regional entities

In each mining community a group of traditional and non-traditional community leaders willing to think

beyond lsquoBusiness as Usualrsquo to imagine a better future could be called together to work in collaboration with

and be resourced by the state government managed regional entities mentioned in recommendation one

The leaders would come from diverse backgrounds such as from local governments business associations

unions farming groups renewable energy businesses and educational institutions The objectives of these

leadership groups would be tailored to each community The objectives would in broad terms be to increase

employment in new diverse industries based on sustainable production and publicservice sector job creation

Expert facilitation alongside inclusive and democratic community engagement initiatives would be essential

to ensure the process and environment for creativity and innovation is maximised To develop such groups

it would be necessary to take stock of the existing resources skills and successful businesses on which a

new future can be built In addition an analysis of the social environmental and economic needs of the

28 | JOBS AFTER COAL A Just Transition for Queensland

community would also be beneficial These groups could then establish economic diversification projects

including value-added local production worker controlled co-operative enterprises and new community-

based enterprises that economically empower the local community Activities may also include support for

alternative industries in regard to process restructuring or subsidising the wages of workers displaced from

higher paying traditional industries

3) Support researching and communicating how the just transition can take place

Consistent research is needed on the best options to support the state and national economies to transition

This requires ongoing situational analysis of the global energy market shifts at both government levels In

addition each mining region will need assistance to research the number of jobs that are dependent on coal

the skills of those employed the level of local national and global long- and short-term risk to local mining

operations the transferability of jobs to other industries local opportunities for new enterprises and their

needs and the local educational and training needs and resources A key issue requiring research will be

around how the transitition scenarios differ depending on the level and relativity of thermal and coking coal

industries across coal mining communities The process for sourcing this information at a local and state

government level should be integrated into a policy feedback loop to support cyclical situational analysis and

policy adjustments from all levels of government This research should take place at the state level and be

encouraged at the industry and local level through grants

Mackay Central Queensland

JOBS AFTER COAL A Just Transition for Queensland | 29

4) Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

Many existing Queensland industries including those not highlighted in this report have the potential to

carry Queensland towards a new sustainable economy [sC5]mdashbut they will need support to do so Instead

of continuing to support and lower costs for the coal mining industry we need a plan to grow competitive

advantage across industries that have potential for sustainability and growth in regional mining communities

Along with industry and community organisations the State Government could organise a State Economic

Summit to assess existing industry clusters identify the potential of new and emerging industries consider

their competitiveness and key capabilities and identify barriers to increasing competitive advantage The

findings and recommendations from this Summit could be used to inform the work of the Unit established in

bullet point one above and the research outlined in bullet point two

5) Provide social protection of workers their families and incomes

If mines close suddenly workers need protection for their incomes and social services and possible relocation

even though many miners these days do not live in the communities where they mine Ideally these transition

plans would be developed early enough to ensure that new employment opportunities are in place for them

before mines actually close For many workers this is already too late but if the process begins now there will

be choices available for future retrenched coal workers who live in mining communities and regions Mining

companies could be incentivised andor penalised to give adequate notice to workers and other stakeholders

that closure may be impending and alternative economic opportunities need to be developed

6) Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

Involving the relevant unions in the planning of community transitions can enable them to move towards

becoming more proactive agents helping to plan the transition with critical networks and specific knowledge

about the needs of their members When a coal-fired power station in Washington State USA was scheduled

for closure for environmental reasons unions played a pivotal role persuading environmentalists and others

to delay the closure long enough for a Just Transition to provide different jobs for the workers This made it

possible for the coal resource to be replaced by wind and other renewable generation rather than natural

gasmdasha better environmental outcome and the unions became an active part in the phase out planning

Unions have a heavy workload defending workers rights and pay They need to be supported and financed to

play important roles in community transitions From facilitation and leadership of planning bodies career

planning and advice preferential hiring for displaced workers in the new alternative emerging industries and

leading the establishment of work controlled cooperatives unions have an essential role to play

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

References

ABC Online (2014) Coal lsquogood for humanityrsquo Prime Minister Tony Abbott says at $39b Queensland mine opening httpwwwabcnetaunews2014-10-13coal-is-good-for-humanity-pm-tony-abbott-says5810244 Retrieved 10th of November 2015

After Coal (2015) Community Regeneration West Virginia United States httpaftercoalcomengage-your-community Retrieved 10th of November 2015

Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

Arabella Advisors (2015) Measuring the Growth of the Global Fossil Fuel Divestment and Clean Energy Investment Movement httpwwwarabellaadvisorscomwp-contentuploads201509Measuring-the-Growth-of-the-Divestment-Movementpdf Retrieved 10th of November 2015

Australian Bureau of Statistics (2014) Australian National Accounts State Accounts 2012ndash13 Canberra Australia Retrieved 10th of November 2015

Australian Bureau of Statistics (2015) MackaymdashCensus Employment by IndustrymdashTime Series Australian Government Department of Employment Retrieved 10th of November 2015

Australian Government Department for Education and Training (2015) Draft National Strategy for International Education Canberra Australian Capital Territory Retrieved 10th of November 2015

Australian Government (2014) Export income to Australia from international education activity in 2013ndash14 Canberra Australia Retrieved 10th of November 2015

BHP Billiton (2013) Coal Briefing httpwwwbhpbillitoncom~mediabhpdocumentsinvestorsreports2013130529_coalbriefingpdf Retrieved 10th of November 2015

Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

Beyond Zero Emissions (2012) Laggard to Leader How Australia Can Lead the World to Zero Carbon Prosperity Melbourne University Melbourne Victoria Retrieved 10th of November 2015

Beyond Zero Emissions (2014) A Fossil Economy in a Changing World Melbourne University Melbourne Victoria httpmediabzeorgaufossileconomyFossilEconomypdf Retrieved 10th of November 2015

Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

One Million Climate Job Campaign (2015) About London United Kingdom httpclimatejobsorgzaabout Retrieved 10th of November 2015

Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 24: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

14 | JOBS AFTER COAL A Just Transition for Queensland

In 2013 the report Unburnable Carbon highlighted that ldquoCompany valuation and credit ratings

methodologies do not typically inform investors about their exposure to these stranded assetsrdquo (Leaton

2013) This is very troubling when considering that the supporting share value of these reserves was $4

trillion in 2012 and that they serviced $127 trillion in outstanding corporate debt over the same period We

need to challenge these methodologies (Tracker 2015) In a move that signals a step towards the solutions

required the World Bank the European Investment Bank and the US Export-Import Bank have all announced

that they will not fund further coal-fired power plants except in exceptional circumstances As changes in

policy by the major coal consumers the uptake of renewables and the need to stay within the global carbon

budget begin to bite it is high-cost producers who will be squeezed first Australia is considered a high-cost

producer because of our strong industrial relations and wage laws which makes it all the more necessary that

our governments are vigilant and prepared for impending macroeconomic change (Cleary 2015)

SummaryThis is the environment in which the Australian coal industry finds itself Internationally coal is no longer

looking like a safe long-term investment within the context of the rapid changes afoot in the world The coal

industry leaders are either in denial about their industryrsquos future or are determined to squeeze as much profit

as possible until the cost gets worn by workers and their communities (Saunders 2015)

The issues of climate change demands for cleaner air and more efficient new technologies The realities of

the market are revealing coal as the sunset industry it really is This is not an industry Queenslanders can

rely on to create a stable resilient and sustainable economy It cannot be relied upon for future wealth

and future jobs We have been warned by the UN Climate Change Secretariatrsquos Executive Secretary that the

diversification and a managed transition away from coal is what we need to do and we need to heed this

warning (Australian 2015)

JOBS AFTER COAL A Just Transition for Queensland | 15

3 Assessing some of the economic opportunities in mining regions

IntroductionThe great state of Queensland is endowed with sustainable human and environmental resources that have the

potential if we choose to harness it to drive a balanced diverse and resilient economy for generations to

come Diversifying Queenslandrsquos economy to create sensible and stable prosperity beyond the boom and bust

vagaries of the mining industry must be a key objective of the Queensland Government The Newman LNP

Governmentrsquos Queensland Plan headline was lsquoforging diversity and prosperityrsquo (Government 2014) But

throughout Newmanrsquos reign as premier no action was taken Under the new Palaszczuk Labor Government

there has been some effort to support economic diversification across the state This is insufficient because as

of yet nothing has been done to adequately fund facilitate and empower the actual communities where

mining takes place The grassroots Labour Environmental Action Network an organisation within the

Australian Labour Party has called for change At the 2015 Queensland ALP State Conference they put

forward a motion that was passed calling on the state government to prepare a just transition policy before the

next conference (ALP 2015)

Grain harvest

16 | JOBS AFTER COAL A Just Transition for Queensland

Most importantly both major parties have continued their relentless support for further coal mine expansions

that inherently suffocate the process of diversification

With the coal industry forecast to be in a lsquostructural declinersquo by political leaders and bankers alike it is now

essential that the focus for economic development be on industries that can bring sustainable prosperity to

Queensland (Burrell 2014 Robins 2014) In the United Kingdom under Prime Minister Thatcher the world

witnessed the consequences of industries closing without planning and without investment to transition local

communities and industries

The following section of the report outlines how the opportunities for sustainable economic development

are already known Queensland has well-established sectors with bountiful potential in agriculture tourism

manufacturing and education It also has the opportunity to capitalise on a boom in renewable energy and

bio-industrial products to create more sustainable economic sectors These industries are ready to fill the

void that will be and is being left by coal however they lack the support needed to ensure their presence in

mining communities to provide a just transition away from coal where it is most needed

Agriculture and aquacultureCurrently the Queensland agricultural sector is worth near $147 billion and employs over 90000 people

(Queensland Government 2012) The sector has the potential to massively expand its food exports to Asia as

population and economic growth continue to surge in the dynamic economic region Through the competitive

advantage of our proximity to Asia and high-quality produce capabilities agricultural products have become

Queenslandrsquos second largest export earner and have the potential for continued growth (Heath 2014) By

increasing availability of farming technology driving productivity minimising costs and focusing on profitable

premium produce markets the Queensland Agricultural Strategy (2012) aims to double the total value of

production for all agricultural commodities by 2040 With innovative new farming approaches and ecosystem

system management strategies such increases in production are possible in a way which sustainably manages

and regenerates the land

To reduce pressure on fish stocks from home and abroad the promotion of aquaculture could be further

encouraged across the state This industry is worth $10 Million a year (Lucas DLGP 2011) At present

there are several sites located along the coast however research conducted over the last decade has

identified future sites for land based aquaculture Industry consultation aquaculture management training

programs and related issues in developing a workforce need to be considered (Plan 2012) The Queensland

Aquaculture Industry Federation sees the need for continued collaboration between government and other

stakeholders in order for this industry to reach itsrsquo potential as a strong core industry (Federation 2015)

The Department of Employment Economic Development and Innovation is leading the government drive to

JOBS AFTER COAL A Just Transition for Queensland | 17

develop the aquaculture industry This could see a future where aquaculture goes further than just meeting

domestic demand and grow to cater for high value export markets (Lucas DLGP 2011)

New opportunities in animal genetics aquaculture horticulture and bio-processing are driving agriculture

and aquaculture sector growth in new directions Both industries are about creating intergenerational

economic sustainability Choosing these industries that have unlimited potential to sustain our communities

and our ecosystems over mining is choosing long-term jobs over short-term jobs that cannot be passed on to

the next generation The bottom line is that we live in a hungry world and Queensland is well placed to be a

reliable and sustainable source of food to other nations without the agricultural potential we are endowed with

(Government 2014)

Tourism and recreational fishingDespite setbacks due to the high Australian dollar and loss of skilled workers to the mining boom the

tourism industry is still a critical part of the Queensland economy with massive future potential (Dr Tien Duc

Pham 2015) The tourism industry made a significant employment contribution providing 124000 jobs in

2010ndash11 with steady growth in international visitor nights (Deloitte Access Economics 2012) Queensland

has the potential to become a global leader in tourism and ecotourism and by doing so to create more

jobs and revenue (Government 2014) This will be possible similarly as in agriculture by promoting the

experiences available in our natural places and the quality hospitality we can provide to the growing Asian

middle class (Wilson 2013) The Chinese tourism market is seeking clean fresh and new experiences that

Queensland can cater to and is expected to be worth $74 billion by 2020 (Guterres 2014) Significant to

Queenslandrsquos potential in tourism is our ability to expand the tourism industry in the authentically Australian

rural and stunningly beautiful coastal mining communities where new economic activities are most needed

Further mining expansion in such places threatens to do to tourism what the growth in heavy industry did to

Gladstonersquos economic diversity where fishing and tourism are now non-existent

Although sustainably managed fisheries have the potential to provide continued economic prosperity to

Queensland there lies a major opportunity in net free fisheries to develop as tourism industries specifically

in coal mining regions A great recent example of this taking place is the newly established Net Free Zone

between from the Northern end of St Helens beach to Cape Hillsborough (Spelitis 2015) Along with three

other net free zones across the state the extent of the cumulative commercial opportunities for sustainable

tourism the net free zones have created has made it one of the three pillars as part of the 2020 vision for the

Queensland has the opportunity to develop an abundant and resilient agricultural industry that supports the transition to sustainable prosperity

18 | JOBS AFTER COAL A Just Transition for Queensland

Queensland Tourism Industry Council (Council 2015) The Mackay Isaac and Whitsunday (MIW) coal mining

region has excellent accessibility to a variety of fishing pursuits In addition to the new net free zone ther are

five fresh water stocked impoundment fisheries creating opportunities to promote lake beach offshore and

deepwater angling Improvement of accommodation facilities quality of jetties access roads and coordinating

fish trails with regional events could maximise visitation from recreational and tourism markets (Mackay

Tourism Tourism Queensland 2012) Charter fishing operatiors tackle stores campsites motels boat sales

boat building and maintenance all have the opportunity of benefitted from growth from the recreational fishing

tourism industry (Lucas DLGP 2012)

Higher educationOver the past decade millions of international students have visited Queensland for our quality tertiary

institutions and enjoyable lifestyle International education is Queenslandrsquos biggest service export with

nearly $2431 million being generated in 2013ndash14 alone (Australian Government 2014) The majority

of Queensland is strategically located in the latitudinal tropical zone where at a global level more than

50 of the worldrsquos population is forecasted to live by 2050 (Australian Government 2015) This makes

Queenslandrsquos universities well placed to develop the partnerships and research innovations tailored to the

challenges and opportunities of the new tropically-oriented world This will help Queensland and especially

North Queensland to attract increasing levels of international students to be part of our high-quality tropical

research institutions These students will increase spending through tourism support the creation of our own

skilled and globally connected workforce and connect Australia to business networks and opportunities across

the world In 2013ndash14 the Cairns region benefitted to the tune of $1375 million from international students

(McGuiggan 2014) With the right policies these benefits already being experienced primarily in Cairns

Townsville and Brisbane can be spread further across Queensland to make international education a strong

economic driver in transitioning mining communities

Bio-industrial productsAs the world moves away from fossil fuels the demand for cleaner more sustainable fuel sources will grow

(Emissions 2014) By using excess organic matter produced through food production to develop bio-industrial

products Queensland has the potential to export clean and sustainable fuels and bio-plastic materials to the

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Tourism is about experiences not extraction It has the potential to share Queensland beauty with the rest of the world and create sustainable local economies in the process

Queenslandrsquos greatest resource is the minds of its people We can share and co-create our innovations and learning with students from all over the world who want to make Queensland the launch pad for their careers

JOBS AFTER COAL A Just Transition for Queensland | 19

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Sorghum fields

20 | JOBS AFTER COAL A Just Transition for Queensland

Queensland is well placed to develop biofuel products from waste and oil crops such as Pongamia and algae

in addition to using the statersquos advanced sugarcane industry to convert excess cane using efficient cellulosic

processes Recent scientific developments in bio-plastics at the University of Queensland show that as a

state Queensland has the skills and ability to build a bio-industrial products industry that can contribute to a

sustainable economic future (Queensland 2015)

Renewable energyQueensland the sunshine state has enormous potential to generate electricity from the sun wind and waves

in addition to many other abundant renewable energy sources (Green 2012) Renewable energy has for a long

time been the catch cry from environmentalists as the complete solution to creating the jobs necessary to

replace the fossil fuel industry This report has been written partially to show recognition that as much as

renewable energy has the potential to create more jobs and replace fossil fuel domestic energy production it

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Gemasolar solar thermal power station Spain

JOBS AFTER COAL A Just Transition for Queensland | 21

cannot completely replace all of the coal

export industry jobs Numerous studies

show that with strong climate policies

over 7100 jobs can be created in

Queensland through renewable energy

by 2030 (Institute 2011) Thousands of

these jobs will be in regional

Queensland These should be prioritised

for regions where the mining industry

has developed rural communities in

need of new economic opportunities Far

North Queensland is especially suited to

further renewable energy investment

because of its climatic conditions and

because of the expensive transmissions

losses from having energy wired from

southern power sources (Allen 2011)

This makes it essential that government

policy ensures that the fair share of the

$35 billion in potential renewable

energy investment goes to rural mining

communities not only where it is most

needed economically but where it

makes the most business sense

(Department of Employment 2009)

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Queensland has the potential to become a smart sunshine state powered by clean and sustainable renewable energy By doing this we will be creating jobs in rural mining communities where they are needed most and building a foundation for a new sustainable economy

22 | JOBS AFTER COAL A Just Transition for Queensland

4 Community transitions Global case studies

There are communities around the worldwhich have reinvented themselves after the end of coal mining and

developed prosperous economies in doing so It has been a struggle but where there is a level of government

support inspired local leadership and the community is working together to regenerate its economy it has

been possible (Coal 2015) We are not suggesting any of these examples can be directly transferred to

Queensland communities facing the end of coal mining The object of these case studies is not to provide a

blueprint for Mackay Gladstone Rockhampton or mining towns in Central Queensland but to show the

diversity of ideas that have worked in other places that might stimulate our local communities to reinvent

themselves too

Hazelwood coal power station La Trobe Valley Vic

JOBS AFTER COAL A Just Transition for Queensland | 23

La Trobe ValleyIn the brown coal producing region of the La Trobe Valley in Victoria a grassroots transitionary force has been

underway for the past fifteen years Earthworker was set up by union and climate change activists seeking a

real alternative to coal and privately owned business models Earthworker Cooperativersquos mission is to create

jobs that respond to the lsquochallenges of climate change and the need for local job creation by facilitating the

establishment of worker-owned cooperatives hellip in sustainability-focused industriesrsquo (Earthworker 2015)

Their current focus is the establishment of a cooperative producing solar hot water systems in partnership

with an existing business called lsquoEverlast Hydro Systemsrsquo Their goal is to take production to Morwell in the

La Trobe Valley where workers are in need of an alternative to the coal industry The unique cooperative model

has made selling arrangement possible through inserting the option to buy a solar hot water system through

enterprise bargaining agreements

BanwenThe DOVE workshop in Banwen South Wales (Dove 2015) was started by agroup of women who during

the 1984ndash85 coal minersrsquo strike decided that community-based education was the most practical path to

regenerate the local economy Setting up shop in an abandoned mine office they developed a series of adult

education workshops for women Three decades later the DOVE building hosts a diverse set of small-scale

entrepreneurs including a daycare a library a community garden and a cafeacute featuring local foods

OrkneyOrkney like Central Queensland is a relatively isolated place with a scattered population Situated at the

top of Scotland two hours from the mainland by ferry Orcadians like Central Queenslanders often feel

like spectators to what goes on in the rest of their country They also feel vulnerable to central government

decisions and are often irritated by the lack of understanding of island life on the part of distant authoritiesmdash

its particular customs dialect and ways of doing things Since Norse times Orkney islanders burned peat (a

very young form of coal) as their primary fuel source but all the peat has been dug up This traditional way

of life where each farming family had its own peat bank and spent long summer days cutting and drying

peats while sharing picnics as children played is gone Another non-renewable energy source North Sea oil

discovered in the 1970s brought positive and negatives for the island It turned the tide of depopulation but

like the peat banks the oil is depleting and another lsquoend of an erarsquo is approaching Orcadians have woken up

to the fact that they canrsquot continue to hark back to the past and are confronting the issues of a future without

fossil fuels

Over the last three decades European community funding has helped Orkney to equip itself for the green

energy revolution Orkney now plays a global role in the evolution of wave and tidal technologies and

significant research and development work is creating new employment opportunities A high school in

Stromness was converted into the European Marine Energy Centre and is now a world leader providing

developers the opportunity to test full-scale prototypes in the sea The worldrsquos largest single-rotor tidal turbine

24 | JOBS AFTER COAL A Just Transition for Queensland

was the first in Scotland to be connected to the national grid from this centre Marine energy combined with

an expansion of wind turbines means that the island is now self-sufficient in electricity These renewable

energy developments have created jobs in the Orkneys in civil works and erection grid connection and

communications (Stuart 2011)

Investment in renewable energy and its associated RampD has attracted people to live work and study on the

island Islanders used to have to leave to get tertiary education but it is now possible to study for an MSc in

renewable energy at a Heriot Watt University campus in Stromness A new generation of Orcadians have grown

up to see renewable energy as the way of the future something quite ldquonormalrdquo which will provide greater

opportunities for their children to stay on the island with genuine prospects for employment in meaningful

jobs requiring a wide range of skills and qualifications This shows what a community in transition to a low

carbon future can look like

Nord-Pas De CalaisUntil 1986 the north-east region of France Nord-pas de Calais was a major coal mining area It still boasts

huge twin tailings mountains the largest in Europe which have become a tourist attraction It is known

to Australians for the war cemeteries associated with the battle of the Somme in WW1 but it has recently

undergone a remarkable transformation towards a truly sustainable economy Old coal mines at Lens have

been transformed into an art gallery displaying works from the Louvre collection in Paris Hundreds of people

are trained in energy efficiency solar energy and green architecture at a new training centre in nearby Loos-

en-Gohelle

The Chamber of Commerce invited economist and social visionary Jeremy Rifkin of the TIR Consulting

Group and his chief economist Skip Laitner to apply their model of the third industrial revolution to the

district (Riftkin 2015) Rifkinrsquos Third Industrial Revolution combines renewable energy energy efficiency

and the connectivity of the internet Buildings are energy generators and hydrogen is used as energy storage

After working with the community for some time the Master Plan was published in 2013 and envisages

that 100000 new jobs can be created by the transition plan (LLC 2013) Certainly the population has not

declined since mining days and has even slightly increased Inspired local leadership was the key in this

community plus some outside funding to help with the underpinning research

Appalachia (Kentucky)The transition process is just starting here but the community is very organised Kentuckians For The

Commonwealth has been battling the negative effects of coal mining for some decades and is now planning a

transition to ldquobuilding a better future beyond coalrdquo (Commonwealth 2015) Last year they held a conference

in Harlan Kentucky right in the middle of the Appalachian coal fields and invited guests from other US

regions in the same position as well as from Wales It is too soon to see what the outcome of their learning

process will be but they are another example of a community taking its future into its own handsmdashoptimistic

that there is a better future after coal

JOBS AFTER COAL A Just Transition for Queensland | 25

5 A just transition for coal mining communities policy recommendations

The opportunities to transition from unsustainable coal mining to prosperous communities with decent

employment will not just materialise by themselves It will need the political will and the right incentives to

ensure that communities are not left fending for themselves with unemployment increasing and families

in need of long-term welfare But not only is the political will not currently there both major political

parties continue to support the expansion of this sunset industry and by doing so are making the transition

challenges progressively more difficult (Denniss 2012) For too many years governments have uncritically

supported the coal mining sector Entire government departments have been focused on facilitating mining

with tax incentives weakening assessment and approval processes along with providing through tax payer

money established industrial infrastructure to support new projects Government policy often seeks to grow

royalties income by supporting the extraction of as much coal as possible as an escape the challenge of

finding other ways to increase state revenue New sustainable industries in coal communities will need just as

much if not more support while it gets started

We propose that communities local businesses workers unions community groups environment groups

local government and state and federal governments all need to be involved in planning a transition to

alternative forms of economic development and providing new jobs We call this a Just Transition (Anthea

Bill amp Evans1 2008 Brecher 2012) Just Transition is a framework for a fair and sustainable shift to a low

carbon economy proposed by trade unions and supported by environmental NGOs A Just Transition holds

that a shift to a lower carbon economy is vital to avoid dangerous climate change

Bimblebox Nature Refuge

26 | JOBS AFTER COAL A Just Transition for Queensland

Tough targets to cut greenhouse pollution supported by new environmental regulations and emerging carbon

markets will transform the global economy over the next decade These shifts will have major implications

for working people in energy supply industry and transport and for everyone as consumers There is a concern

that significant periods of economic restructuring in the past have often happened in a chaotic fashion

leaving ordinary workers along with their families and communities to bear the brunt of the transition to

new ways of producing wealth A just transition seeks to prevent such injustice becoming a feature of this

transition suggesting that it would not only be morally wrong and socially damaging but would undermine the

credibility of the transition itself and could slow or even halt the changes that must be made

It is through the challenges of communicating the urgency of climate change and other social and

environmental impacts that much of the debate about coal and its consequences for land water and the

climate has become unnecessarily adversarial and polarised Coal mining and power generation communities

deserve acknowledgement and appreciation for all that they have historically and currently contributed to

our country and our economy In communicating the economic shifts that are taking place and facilitating

the necessary transitions the Australian community needs to be respectful of the history and identity of coal

communities Environment groups government unions and the community need to initiate and engage in

the discussions about transitions in an open honest and compassionate manner Only by approaching the

transition in this way can the adversarial nature of the debate be broken down to make way for transformative

mutually respectful and holistic solutions

Whitsundays lsquoHave a Heart for the Reefrsquo

JOBS AFTER COAL A Just Transition for Queensland | 27

A just transition recognises that support for policies are conditional on a fair distribution of the costs and

benefits of those policies across the economy A just transition should also recognise that the creation of

opportunities for active engagement by those affected in determining the future wellbeing of themselves

and their families is essential for the long term empowerment of citizens and communities The following

recommendations have been written with the aim of emphasising such community empowerment as a priority

Recommendations

1) Establishing a unit within the State Government to support coal mining regions to transition to new economies

Specific institutions are needed to develop transition plans They need to have strong government support

and funding regional offices and representation from diverse stakeholders A dedicated unit within the

Department of Infrastructure Local Government and Planning could be established to oversee this work

They could work on the ground in the main coal mining communities to bring government expertise into

regional entities that would develop local plans that involve and empower the whole community This unit

or a connected unit would analyse existing barriers to the creation of competitive advantages for alternative

sustainable industries and would identify actions the State Government can take to support such creation

Any policy and support should come with clear conditions and timeframes These regional entities would

need generous budgets to assist local groups to develop their transition strategies to support research re-

training and the development of new business and community start-up initiatives based on the needs and

strategies of communities The key to communities becoming economically resilient is high levels of autonomy

and freedom in shaping their economic futures Research funding available to the regional entities will be

essential to the empowerment of local leadership Research funding should at least reach the OECD research

funding average and it should prioritise low carbon technologies and industry sectors with increased triple

bottom line sustainability potential

2) Support community leadership in diversifying local economies through the establishment of democratic regional entities

In each mining community a group of traditional and non-traditional community leaders willing to think

beyond lsquoBusiness as Usualrsquo to imagine a better future could be called together to work in collaboration with

and be resourced by the state government managed regional entities mentioned in recommendation one

The leaders would come from diverse backgrounds such as from local governments business associations

unions farming groups renewable energy businesses and educational institutions The objectives of these

leadership groups would be tailored to each community The objectives would in broad terms be to increase

employment in new diverse industries based on sustainable production and publicservice sector job creation

Expert facilitation alongside inclusive and democratic community engagement initiatives would be essential

to ensure the process and environment for creativity and innovation is maximised To develop such groups

it would be necessary to take stock of the existing resources skills and successful businesses on which a

new future can be built In addition an analysis of the social environmental and economic needs of the

28 | JOBS AFTER COAL A Just Transition for Queensland

community would also be beneficial These groups could then establish economic diversification projects

including value-added local production worker controlled co-operative enterprises and new community-

based enterprises that economically empower the local community Activities may also include support for

alternative industries in regard to process restructuring or subsidising the wages of workers displaced from

higher paying traditional industries

3) Support researching and communicating how the just transition can take place

Consistent research is needed on the best options to support the state and national economies to transition

This requires ongoing situational analysis of the global energy market shifts at both government levels In

addition each mining region will need assistance to research the number of jobs that are dependent on coal

the skills of those employed the level of local national and global long- and short-term risk to local mining

operations the transferability of jobs to other industries local opportunities for new enterprises and their

needs and the local educational and training needs and resources A key issue requiring research will be

around how the transitition scenarios differ depending on the level and relativity of thermal and coking coal

industries across coal mining communities The process for sourcing this information at a local and state

government level should be integrated into a policy feedback loop to support cyclical situational analysis and

policy adjustments from all levels of government This research should take place at the state level and be

encouraged at the industry and local level through grants

Mackay Central Queensland

JOBS AFTER COAL A Just Transition for Queensland | 29

4) Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

Many existing Queensland industries including those not highlighted in this report have the potential to

carry Queensland towards a new sustainable economy [sC5]mdashbut they will need support to do so Instead

of continuing to support and lower costs for the coal mining industry we need a plan to grow competitive

advantage across industries that have potential for sustainability and growth in regional mining communities

Along with industry and community organisations the State Government could organise a State Economic

Summit to assess existing industry clusters identify the potential of new and emerging industries consider

their competitiveness and key capabilities and identify barriers to increasing competitive advantage The

findings and recommendations from this Summit could be used to inform the work of the Unit established in

bullet point one above and the research outlined in bullet point two

5) Provide social protection of workers their families and incomes

If mines close suddenly workers need protection for their incomes and social services and possible relocation

even though many miners these days do not live in the communities where they mine Ideally these transition

plans would be developed early enough to ensure that new employment opportunities are in place for them

before mines actually close For many workers this is already too late but if the process begins now there will

be choices available for future retrenched coal workers who live in mining communities and regions Mining

companies could be incentivised andor penalised to give adequate notice to workers and other stakeholders

that closure may be impending and alternative economic opportunities need to be developed

6) Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

Involving the relevant unions in the planning of community transitions can enable them to move towards

becoming more proactive agents helping to plan the transition with critical networks and specific knowledge

about the needs of their members When a coal-fired power station in Washington State USA was scheduled

for closure for environmental reasons unions played a pivotal role persuading environmentalists and others

to delay the closure long enough for a Just Transition to provide different jobs for the workers This made it

possible for the coal resource to be replaced by wind and other renewable generation rather than natural

gasmdasha better environmental outcome and the unions became an active part in the phase out planning

Unions have a heavy workload defending workers rights and pay They need to be supported and financed to

play important roles in community transitions From facilitation and leadership of planning bodies career

planning and advice preferential hiring for displaced workers in the new alternative emerging industries and

leading the establishment of work controlled cooperatives unions have an essential role to play

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

References

ABC Online (2014) Coal lsquogood for humanityrsquo Prime Minister Tony Abbott says at $39b Queensland mine opening httpwwwabcnetaunews2014-10-13coal-is-good-for-humanity-pm-tony-abbott-says5810244 Retrieved 10th of November 2015

After Coal (2015) Community Regeneration West Virginia United States httpaftercoalcomengage-your-community Retrieved 10th of November 2015

Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

Arabella Advisors (2015) Measuring the Growth of the Global Fossil Fuel Divestment and Clean Energy Investment Movement httpwwwarabellaadvisorscomwp-contentuploads201509Measuring-the-Growth-of-the-Divestment-Movementpdf Retrieved 10th of November 2015

Australian Bureau of Statistics (2014) Australian National Accounts State Accounts 2012ndash13 Canberra Australia Retrieved 10th of November 2015

Australian Bureau of Statistics (2015) MackaymdashCensus Employment by IndustrymdashTime Series Australian Government Department of Employment Retrieved 10th of November 2015

Australian Government Department for Education and Training (2015) Draft National Strategy for International Education Canberra Australian Capital Territory Retrieved 10th of November 2015

Australian Government (2014) Export income to Australia from international education activity in 2013ndash14 Canberra Australia Retrieved 10th of November 2015

BHP Billiton (2013) Coal Briefing httpwwwbhpbillitoncom~mediabhpdocumentsinvestorsreports2013130529_coalbriefingpdf Retrieved 10th of November 2015

Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

Beyond Zero Emissions (2012) Laggard to Leader How Australia Can Lead the World to Zero Carbon Prosperity Melbourne University Melbourne Victoria Retrieved 10th of November 2015

Beyond Zero Emissions (2014) A Fossil Economy in a Changing World Melbourne University Melbourne Victoria httpmediabzeorgaufossileconomyFossilEconomypdf Retrieved 10th of November 2015

Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

One Million Climate Job Campaign (2015) About London United Kingdom httpclimatejobsorgzaabout Retrieved 10th of November 2015

Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 25: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

JOBS AFTER COAL A Just Transition for Queensland | 15

3 Assessing some of the economic opportunities in mining regions

IntroductionThe great state of Queensland is endowed with sustainable human and environmental resources that have the

potential if we choose to harness it to drive a balanced diverse and resilient economy for generations to

come Diversifying Queenslandrsquos economy to create sensible and stable prosperity beyond the boom and bust

vagaries of the mining industry must be a key objective of the Queensland Government The Newman LNP

Governmentrsquos Queensland Plan headline was lsquoforging diversity and prosperityrsquo (Government 2014) But

throughout Newmanrsquos reign as premier no action was taken Under the new Palaszczuk Labor Government

there has been some effort to support economic diversification across the state This is insufficient because as

of yet nothing has been done to adequately fund facilitate and empower the actual communities where

mining takes place The grassroots Labour Environmental Action Network an organisation within the

Australian Labour Party has called for change At the 2015 Queensland ALP State Conference they put

forward a motion that was passed calling on the state government to prepare a just transition policy before the

next conference (ALP 2015)

Grain harvest

16 | JOBS AFTER COAL A Just Transition for Queensland

Most importantly both major parties have continued their relentless support for further coal mine expansions

that inherently suffocate the process of diversification

With the coal industry forecast to be in a lsquostructural declinersquo by political leaders and bankers alike it is now

essential that the focus for economic development be on industries that can bring sustainable prosperity to

Queensland (Burrell 2014 Robins 2014) In the United Kingdom under Prime Minister Thatcher the world

witnessed the consequences of industries closing without planning and without investment to transition local

communities and industries

The following section of the report outlines how the opportunities for sustainable economic development

are already known Queensland has well-established sectors with bountiful potential in agriculture tourism

manufacturing and education It also has the opportunity to capitalise on a boom in renewable energy and

bio-industrial products to create more sustainable economic sectors These industries are ready to fill the

void that will be and is being left by coal however they lack the support needed to ensure their presence in

mining communities to provide a just transition away from coal where it is most needed

Agriculture and aquacultureCurrently the Queensland agricultural sector is worth near $147 billion and employs over 90000 people

(Queensland Government 2012) The sector has the potential to massively expand its food exports to Asia as

population and economic growth continue to surge in the dynamic economic region Through the competitive

advantage of our proximity to Asia and high-quality produce capabilities agricultural products have become

Queenslandrsquos second largest export earner and have the potential for continued growth (Heath 2014) By

increasing availability of farming technology driving productivity minimising costs and focusing on profitable

premium produce markets the Queensland Agricultural Strategy (2012) aims to double the total value of

production for all agricultural commodities by 2040 With innovative new farming approaches and ecosystem

system management strategies such increases in production are possible in a way which sustainably manages

and regenerates the land

To reduce pressure on fish stocks from home and abroad the promotion of aquaculture could be further

encouraged across the state This industry is worth $10 Million a year (Lucas DLGP 2011) At present

there are several sites located along the coast however research conducted over the last decade has

identified future sites for land based aquaculture Industry consultation aquaculture management training

programs and related issues in developing a workforce need to be considered (Plan 2012) The Queensland

Aquaculture Industry Federation sees the need for continued collaboration between government and other

stakeholders in order for this industry to reach itsrsquo potential as a strong core industry (Federation 2015)

The Department of Employment Economic Development and Innovation is leading the government drive to

JOBS AFTER COAL A Just Transition for Queensland | 17

develop the aquaculture industry This could see a future where aquaculture goes further than just meeting

domestic demand and grow to cater for high value export markets (Lucas DLGP 2011)

New opportunities in animal genetics aquaculture horticulture and bio-processing are driving agriculture

and aquaculture sector growth in new directions Both industries are about creating intergenerational

economic sustainability Choosing these industries that have unlimited potential to sustain our communities

and our ecosystems over mining is choosing long-term jobs over short-term jobs that cannot be passed on to

the next generation The bottom line is that we live in a hungry world and Queensland is well placed to be a

reliable and sustainable source of food to other nations without the agricultural potential we are endowed with

(Government 2014)

Tourism and recreational fishingDespite setbacks due to the high Australian dollar and loss of skilled workers to the mining boom the

tourism industry is still a critical part of the Queensland economy with massive future potential (Dr Tien Duc

Pham 2015) The tourism industry made a significant employment contribution providing 124000 jobs in

2010ndash11 with steady growth in international visitor nights (Deloitte Access Economics 2012) Queensland

has the potential to become a global leader in tourism and ecotourism and by doing so to create more

jobs and revenue (Government 2014) This will be possible similarly as in agriculture by promoting the

experiences available in our natural places and the quality hospitality we can provide to the growing Asian

middle class (Wilson 2013) The Chinese tourism market is seeking clean fresh and new experiences that

Queensland can cater to and is expected to be worth $74 billion by 2020 (Guterres 2014) Significant to

Queenslandrsquos potential in tourism is our ability to expand the tourism industry in the authentically Australian

rural and stunningly beautiful coastal mining communities where new economic activities are most needed

Further mining expansion in such places threatens to do to tourism what the growth in heavy industry did to

Gladstonersquos economic diversity where fishing and tourism are now non-existent

Although sustainably managed fisheries have the potential to provide continued economic prosperity to

Queensland there lies a major opportunity in net free fisheries to develop as tourism industries specifically

in coal mining regions A great recent example of this taking place is the newly established Net Free Zone

between from the Northern end of St Helens beach to Cape Hillsborough (Spelitis 2015) Along with three

other net free zones across the state the extent of the cumulative commercial opportunities for sustainable

tourism the net free zones have created has made it one of the three pillars as part of the 2020 vision for the

Queensland has the opportunity to develop an abundant and resilient agricultural industry that supports the transition to sustainable prosperity

18 | JOBS AFTER COAL A Just Transition for Queensland

Queensland Tourism Industry Council (Council 2015) The Mackay Isaac and Whitsunday (MIW) coal mining

region has excellent accessibility to a variety of fishing pursuits In addition to the new net free zone ther are

five fresh water stocked impoundment fisheries creating opportunities to promote lake beach offshore and

deepwater angling Improvement of accommodation facilities quality of jetties access roads and coordinating

fish trails with regional events could maximise visitation from recreational and tourism markets (Mackay

Tourism Tourism Queensland 2012) Charter fishing operatiors tackle stores campsites motels boat sales

boat building and maintenance all have the opportunity of benefitted from growth from the recreational fishing

tourism industry (Lucas DLGP 2012)

Higher educationOver the past decade millions of international students have visited Queensland for our quality tertiary

institutions and enjoyable lifestyle International education is Queenslandrsquos biggest service export with

nearly $2431 million being generated in 2013ndash14 alone (Australian Government 2014) The majority

of Queensland is strategically located in the latitudinal tropical zone where at a global level more than

50 of the worldrsquos population is forecasted to live by 2050 (Australian Government 2015) This makes

Queenslandrsquos universities well placed to develop the partnerships and research innovations tailored to the

challenges and opportunities of the new tropically-oriented world This will help Queensland and especially

North Queensland to attract increasing levels of international students to be part of our high-quality tropical

research institutions These students will increase spending through tourism support the creation of our own

skilled and globally connected workforce and connect Australia to business networks and opportunities across

the world In 2013ndash14 the Cairns region benefitted to the tune of $1375 million from international students

(McGuiggan 2014) With the right policies these benefits already being experienced primarily in Cairns

Townsville and Brisbane can be spread further across Queensland to make international education a strong

economic driver in transitioning mining communities

Bio-industrial productsAs the world moves away from fossil fuels the demand for cleaner more sustainable fuel sources will grow

(Emissions 2014) By using excess organic matter produced through food production to develop bio-industrial

products Queensland has the potential to export clean and sustainable fuels and bio-plastic materials to the

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Tourism is about experiences not extraction It has the potential to share Queensland beauty with the rest of the world and create sustainable local economies in the process

Queenslandrsquos greatest resource is the minds of its people We can share and co-create our innovations and learning with students from all over the world who want to make Queensland the launch pad for their careers

JOBS AFTER COAL A Just Transition for Queensland | 19

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Sorghum fields

20 | JOBS AFTER COAL A Just Transition for Queensland

Queensland is well placed to develop biofuel products from waste and oil crops such as Pongamia and algae

in addition to using the statersquos advanced sugarcane industry to convert excess cane using efficient cellulosic

processes Recent scientific developments in bio-plastics at the University of Queensland show that as a

state Queensland has the skills and ability to build a bio-industrial products industry that can contribute to a

sustainable economic future (Queensland 2015)

Renewable energyQueensland the sunshine state has enormous potential to generate electricity from the sun wind and waves

in addition to many other abundant renewable energy sources (Green 2012) Renewable energy has for a long

time been the catch cry from environmentalists as the complete solution to creating the jobs necessary to

replace the fossil fuel industry This report has been written partially to show recognition that as much as

renewable energy has the potential to create more jobs and replace fossil fuel domestic energy production it

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Gemasolar solar thermal power station Spain

JOBS AFTER COAL A Just Transition for Queensland | 21

cannot completely replace all of the coal

export industry jobs Numerous studies

show that with strong climate policies

over 7100 jobs can be created in

Queensland through renewable energy

by 2030 (Institute 2011) Thousands of

these jobs will be in regional

Queensland These should be prioritised

for regions where the mining industry

has developed rural communities in

need of new economic opportunities Far

North Queensland is especially suited to

further renewable energy investment

because of its climatic conditions and

because of the expensive transmissions

losses from having energy wired from

southern power sources (Allen 2011)

This makes it essential that government

policy ensures that the fair share of the

$35 billion in potential renewable

energy investment goes to rural mining

communities not only where it is most

needed economically but where it

makes the most business sense

(Department of Employment 2009)

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Queensland has the potential to become a smart sunshine state powered by clean and sustainable renewable energy By doing this we will be creating jobs in rural mining communities where they are needed most and building a foundation for a new sustainable economy

22 | JOBS AFTER COAL A Just Transition for Queensland

4 Community transitions Global case studies

There are communities around the worldwhich have reinvented themselves after the end of coal mining and

developed prosperous economies in doing so It has been a struggle but where there is a level of government

support inspired local leadership and the community is working together to regenerate its economy it has

been possible (Coal 2015) We are not suggesting any of these examples can be directly transferred to

Queensland communities facing the end of coal mining The object of these case studies is not to provide a

blueprint for Mackay Gladstone Rockhampton or mining towns in Central Queensland but to show the

diversity of ideas that have worked in other places that might stimulate our local communities to reinvent

themselves too

Hazelwood coal power station La Trobe Valley Vic

JOBS AFTER COAL A Just Transition for Queensland | 23

La Trobe ValleyIn the brown coal producing region of the La Trobe Valley in Victoria a grassroots transitionary force has been

underway for the past fifteen years Earthworker was set up by union and climate change activists seeking a

real alternative to coal and privately owned business models Earthworker Cooperativersquos mission is to create

jobs that respond to the lsquochallenges of climate change and the need for local job creation by facilitating the

establishment of worker-owned cooperatives hellip in sustainability-focused industriesrsquo (Earthworker 2015)

Their current focus is the establishment of a cooperative producing solar hot water systems in partnership

with an existing business called lsquoEverlast Hydro Systemsrsquo Their goal is to take production to Morwell in the

La Trobe Valley where workers are in need of an alternative to the coal industry The unique cooperative model

has made selling arrangement possible through inserting the option to buy a solar hot water system through

enterprise bargaining agreements

BanwenThe DOVE workshop in Banwen South Wales (Dove 2015) was started by agroup of women who during

the 1984ndash85 coal minersrsquo strike decided that community-based education was the most practical path to

regenerate the local economy Setting up shop in an abandoned mine office they developed a series of adult

education workshops for women Three decades later the DOVE building hosts a diverse set of small-scale

entrepreneurs including a daycare a library a community garden and a cafeacute featuring local foods

OrkneyOrkney like Central Queensland is a relatively isolated place with a scattered population Situated at the

top of Scotland two hours from the mainland by ferry Orcadians like Central Queenslanders often feel

like spectators to what goes on in the rest of their country They also feel vulnerable to central government

decisions and are often irritated by the lack of understanding of island life on the part of distant authoritiesmdash

its particular customs dialect and ways of doing things Since Norse times Orkney islanders burned peat (a

very young form of coal) as their primary fuel source but all the peat has been dug up This traditional way

of life where each farming family had its own peat bank and spent long summer days cutting and drying

peats while sharing picnics as children played is gone Another non-renewable energy source North Sea oil

discovered in the 1970s brought positive and negatives for the island It turned the tide of depopulation but

like the peat banks the oil is depleting and another lsquoend of an erarsquo is approaching Orcadians have woken up

to the fact that they canrsquot continue to hark back to the past and are confronting the issues of a future without

fossil fuels

Over the last three decades European community funding has helped Orkney to equip itself for the green

energy revolution Orkney now plays a global role in the evolution of wave and tidal technologies and

significant research and development work is creating new employment opportunities A high school in

Stromness was converted into the European Marine Energy Centre and is now a world leader providing

developers the opportunity to test full-scale prototypes in the sea The worldrsquos largest single-rotor tidal turbine

24 | JOBS AFTER COAL A Just Transition for Queensland

was the first in Scotland to be connected to the national grid from this centre Marine energy combined with

an expansion of wind turbines means that the island is now self-sufficient in electricity These renewable

energy developments have created jobs in the Orkneys in civil works and erection grid connection and

communications (Stuart 2011)

Investment in renewable energy and its associated RampD has attracted people to live work and study on the

island Islanders used to have to leave to get tertiary education but it is now possible to study for an MSc in

renewable energy at a Heriot Watt University campus in Stromness A new generation of Orcadians have grown

up to see renewable energy as the way of the future something quite ldquonormalrdquo which will provide greater

opportunities for their children to stay on the island with genuine prospects for employment in meaningful

jobs requiring a wide range of skills and qualifications This shows what a community in transition to a low

carbon future can look like

Nord-Pas De CalaisUntil 1986 the north-east region of France Nord-pas de Calais was a major coal mining area It still boasts

huge twin tailings mountains the largest in Europe which have become a tourist attraction It is known

to Australians for the war cemeteries associated with the battle of the Somme in WW1 but it has recently

undergone a remarkable transformation towards a truly sustainable economy Old coal mines at Lens have

been transformed into an art gallery displaying works from the Louvre collection in Paris Hundreds of people

are trained in energy efficiency solar energy and green architecture at a new training centre in nearby Loos-

en-Gohelle

The Chamber of Commerce invited economist and social visionary Jeremy Rifkin of the TIR Consulting

Group and his chief economist Skip Laitner to apply their model of the third industrial revolution to the

district (Riftkin 2015) Rifkinrsquos Third Industrial Revolution combines renewable energy energy efficiency

and the connectivity of the internet Buildings are energy generators and hydrogen is used as energy storage

After working with the community for some time the Master Plan was published in 2013 and envisages

that 100000 new jobs can be created by the transition plan (LLC 2013) Certainly the population has not

declined since mining days and has even slightly increased Inspired local leadership was the key in this

community plus some outside funding to help with the underpinning research

Appalachia (Kentucky)The transition process is just starting here but the community is very organised Kentuckians For The

Commonwealth has been battling the negative effects of coal mining for some decades and is now planning a

transition to ldquobuilding a better future beyond coalrdquo (Commonwealth 2015) Last year they held a conference

in Harlan Kentucky right in the middle of the Appalachian coal fields and invited guests from other US

regions in the same position as well as from Wales It is too soon to see what the outcome of their learning

process will be but they are another example of a community taking its future into its own handsmdashoptimistic

that there is a better future after coal

JOBS AFTER COAL A Just Transition for Queensland | 25

5 A just transition for coal mining communities policy recommendations

The opportunities to transition from unsustainable coal mining to prosperous communities with decent

employment will not just materialise by themselves It will need the political will and the right incentives to

ensure that communities are not left fending for themselves with unemployment increasing and families

in need of long-term welfare But not only is the political will not currently there both major political

parties continue to support the expansion of this sunset industry and by doing so are making the transition

challenges progressively more difficult (Denniss 2012) For too many years governments have uncritically

supported the coal mining sector Entire government departments have been focused on facilitating mining

with tax incentives weakening assessment and approval processes along with providing through tax payer

money established industrial infrastructure to support new projects Government policy often seeks to grow

royalties income by supporting the extraction of as much coal as possible as an escape the challenge of

finding other ways to increase state revenue New sustainable industries in coal communities will need just as

much if not more support while it gets started

We propose that communities local businesses workers unions community groups environment groups

local government and state and federal governments all need to be involved in planning a transition to

alternative forms of economic development and providing new jobs We call this a Just Transition (Anthea

Bill amp Evans1 2008 Brecher 2012) Just Transition is a framework for a fair and sustainable shift to a low

carbon economy proposed by trade unions and supported by environmental NGOs A Just Transition holds

that a shift to a lower carbon economy is vital to avoid dangerous climate change

Bimblebox Nature Refuge

26 | JOBS AFTER COAL A Just Transition for Queensland

Tough targets to cut greenhouse pollution supported by new environmental regulations and emerging carbon

markets will transform the global economy over the next decade These shifts will have major implications

for working people in energy supply industry and transport and for everyone as consumers There is a concern

that significant periods of economic restructuring in the past have often happened in a chaotic fashion

leaving ordinary workers along with their families and communities to bear the brunt of the transition to

new ways of producing wealth A just transition seeks to prevent such injustice becoming a feature of this

transition suggesting that it would not only be morally wrong and socially damaging but would undermine the

credibility of the transition itself and could slow or even halt the changes that must be made

It is through the challenges of communicating the urgency of climate change and other social and

environmental impacts that much of the debate about coal and its consequences for land water and the

climate has become unnecessarily adversarial and polarised Coal mining and power generation communities

deserve acknowledgement and appreciation for all that they have historically and currently contributed to

our country and our economy In communicating the economic shifts that are taking place and facilitating

the necessary transitions the Australian community needs to be respectful of the history and identity of coal

communities Environment groups government unions and the community need to initiate and engage in

the discussions about transitions in an open honest and compassionate manner Only by approaching the

transition in this way can the adversarial nature of the debate be broken down to make way for transformative

mutually respectful and holistic solutions

Whitsundays lsquoHave a Heart for the Reefrsquo

JOBS AFTER COAL A Just Transition for Queensland | 27

A just transition recognises that support for policies are conditional on a fair distribution of the costs and

benefits of those policies across the economy A just transition should also recognise that the creation of

opportunities for active engagement by those affected in determining the future wellbeing of themselves

and their families is essential for the long term empowerment of citizens and communities The following

recommendations have been written with the aim of emphasising such community empowerment as a priority

Recommendations

1) Establishing a unit within the State Government to support coal mining regions to transition to new economies

Specific institutions are needed to develop transition plans They need to have strong government support

and funding regional offices and representation from diverse stakeholders A dedicated unit within the

Department of Infrastructure Local Government and Planning could be established to oversee this work

They could work on the ground in the main coal mining communities to bring government expertise into

regional entities that would develop local plans that involve and empower the whole community This unit

or a connected unit would analyse existing barriers to the creation of competitive advantages for alternative

sustainable industries and would identify actions the State Government can take to support such creation

Any policy and support should come with clear conditions and timeframes These regional entities would

need generous budgets to assist local groups to develop their transition strategies to support research re-

training and the development of new business and community start-up initiatives based on the needs and

strategies of communities The key to communities becoming economically resilient is high levels of autonomy

and freedom in shaping their economic futures Research funding available to the regional entities will be

essential to the empowerment of local leadership Research funding should at least reach the OECD research

funding average and it should prioritise low carbon technologies and industry sectors with increased triple

bottom line sustainability potential

2) Support community leadership in diversifying local economies through the establishment of democratic regional entities

In each mining community a group of traditional and non-traditional community leaders willing to think

beyond lsquoBusiness as Usualrsquo to imagine a better future could be called together to work in collaboration with

and be resourced by the state government managed regional entities mentioned in recommendation one

The leaders would come from diverse backgrounds such as from local governments business associations

unions farming groups renewable energy businesses and educational institutions The objectives of these

leadership groups would be tailored to each community The objectives would in broad terms be to increase

employment in new diverse industries based on sustainable production and publicservice sector job creation

Expert facilitation alongside inclusive and democratic community engagement initiatives would be essential

to ensure the process and environment for creativity and innovation is maximised To develop such groups

it would be necessary to take stock of the existing resources skills and successful businesses on which a

new future can be built In addition an analysis of the social environmental and economic needs of the

28 | JOBS AFTER COAL A Just Transition for Queensland

community would also be beneficial These groups could then establish economic diversification projects

including value-added local production worker controlled co-operative enterprises and new community-

based enterprises that economically empower the local community Activities may also include support for

alternative industries in regard to process restructuring or subsidising the wages of workers displaced from

higher paying traditional industries

3) Support researching and communicating how the just transition can take place

Consistent research is needed on the best options to support the state and national economies to transition

This requires ongoing situational analysis of the global energy market shifts at both government levels In

addition each mining region will need assistance to research the number of jobs that are dependent on coal

the skills of those employed the level of local national and global long- and short-term risk to local mining

operations the transferability of jobs to other industries local opportunities for new enterprises and their

needs and the local educational and training needs and resources A key issue requiring research will be

around how the transitition scenarios differ depending on the level and relativity of thermal and coking coal

industries across coal mining communities The process for sourcing this information at a local and state

government level should be integrated into a policy feedback loop to support cyclical situational analysis and

policy adjustments from all levels of government This research should take place at the state level and be

encouraged at the industry and local level through grants

Mackay Central Queensland

JOBS AFTER COAL A Just Transition for Queensland | 29

4) Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

Many existing Queensland industries including those not highlighted in this report have the potential to

carry Queensland towards a new sustainable economy [sC5]mdashbut they will need support to do so Instead

of continuing to support and lower costs for the coal mining industry we need a plan to grow competitive

advantage across industries that have potential for sustainability and growth in regional mining communities

Along with industry and community organisations the State Government could organise a State Economic

Summit to assess existing industry clusters identify the potential of new and emerging industries consider

their competitiveness and key capabilities and identify barriers to increasing competitive advantage The

findings and recommendations from this Summit could be used to inform the work of the Unit established in

bullet point one above and the research outlined in bullet point two

5) Provide social protection of workers their families and incomes

If mines close suddenly workers need protection for their incomes and social services and possible relocation

even though many miners these days do not live in the communities where they mine Ideally these transition

plans would be developed early enough to ensure that new employment opportunities are in place for them

before mines actually close For many workers this is already too late but if the process begins now there will

be choices available for future retrenched coal workers who live in mining communities and regions Mining

companies could be incentivised andor penalised to give adequate notice to workers and other stakeholders

that closure may be impending and alternative economic opportunities need to be developed

6) Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

Involving the relevant unions in the planning of community transitions can enable them to move towards

becoming more proactive agents helping to plan the transition with critical networks and specific knowledge

about the needs of their members When a coal-fired power station in Washington State USA was scheduled

for closure for environmental reasons unions played a pivotal role persuading environmentalists and others

to delay the closure long enough for a Just Transition to provide different jobs for the workers This made it

possible for the coal resource to be replaced by wind and other renewable generation rather than natural

gasmdasha better environmental outcome and the unions became an active part in the phase out planning

Unions have a heavy workload defending workers rights and pay They need to be supported and financed to

play important roles in community transitions From facilitation and leadership of planning bodies career

planning and advice preferential hiring for displaced workers in the new alternative emerging industries and

leading the establishment of work controlled cooperatives unions have an essential role to play

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

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After Coal (2015) Community Regeneration West Virginia United States httpaftercoalcomengage-your-community Retrieved 10th of November 2015

Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

Arabella Advisors (2015) Measuring the Growth of the Global Fossil Fuel Divestment and Clean Energy Investment Movement httpwwwarabellaadvisorscomwp-contentuploads201509Measuring-the-Growth-of-the-Divestment-Movementpdf Retrieved 10th of November 2015

Australian Bureau of Statistics (2014) Australian National Accounts State Accounts 2012ndash13 Canberra Australia Retrieved 10th of November 2015

Australian Bureau of Statistics (2015) MackaymdashCensus Employment by IndustrymdashTime Series Australian Government Department of Employment Retrieved 10th of November 2015

Australian Government Department for Education and Training (2015) Draft National Strategy for International Education Canberra Australian Capital Territory Retrieved 10th of November 2015

Australian Government (2014) Export income to Australia from international education activity in 2013ndash14 Canberra Australia Retrieved 10th of November 2015

BHP Billiton (2013) Coal Briefing httpwwwbhpbillitoncom~mediabhpdocumentsinvestorsreports2013130529_coalbriefingpdf Retrieved 10th of November 2015

Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

Beyond Zero Emissions (2012) Laggard to Leader How Australia Can Lead the World to Zero Carbon Prosperity Melbourne University Melbourne Victoria Retrieved 10th of November 2015

Beyond Zero Emissions (2014) A Fossil Economy in a Changing World Melbourne University Melbourne Victoria httpmediabzeorgaufossileconomyFossilEconomypdf Retrieved 10th of November 2015

Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

One Million Climate Job Campaign (2015) About London United Kingdom httpclimatejobsorgzaabout Retrieved 10th of November 2015

Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 26: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

16 | JOBS AFTER COAL A Just Transition for Queensland

Most importantly both major parties have continued their relentless support for further coal mine expansions

that inherently suffocate the process of diversification

With the coal industry forecast to be in a lsquostructural declinersquo by political leaders and bankers alike it is now

essential that the focus for economic development be on industries that can bring sustainable prosperity to

Queensland (Burrell 2014 Robins 2014) In the United Kingdom under Prime Minister Thatcher the world

witnessed the consequences of industries closing without planning and without investment to transition local

communities and industries

The following section of the report outlines how the opportunities for sustainable economic development

are already known Queensland has well-established sectors with bountiful potential in agriculture tourism

manufacturing and education It also has the opportunity to capitalise on a boom in renewable energy and

bio-industrial products to create more sustainable economic sectors These industries are ready to fill the

void that will be and is being left by coal however they lack the support needed to ensure their presence in

mining communities to provide a just transition away from coal where it is most needed

Agriculture and aquacultureCurrently the Queensland agricultural sector is worth near $147 billion and employs over 90000 people

(Queensland Government 2012) The sector has the potential to massively expand its food exports to Asia as

population and economic growth continue to surge in the dynamic economic region Through the competitive

advantage of our proximity to Asia and high-quality produce capabilities agricultural products have become

Queenslandrsquos second largest export earner and have the potential for continued growth (Heath 2014) By

increasing availability of farming technology driving productivity minimising costs and focusing on profitable

premium produce markets the Queensland Agricultural Strategy (2012) aims to double the total value of

production for all agricultural commodities by 2040 With innovative new farming approaches and ecosystem

system management strategies such increases in production are possible in a way which sustainably manages

and regenerates the land

To reduce pressure on fish stocks from home and abroad the promotion of aquaculture could be further

encouraged across the state This industry is worth $10 Million a year (Lucas DLGP 2011) At present

there are several sites located along the coast however research conducted over the last decade has

identified future sites for land based aquaculture Industry consultation aquaculture management training

programs and related issues in developing a workforce need to be considered (Plan 2012) The Queensland

Aquaculture Industry Federation sees the need for continued collaboration between government and other

stakeholders in order for this industry to reach itsrsquo potential as a strong core industry (Federation 2015)

The Department of Employment Economic Development and Innovation is leading the government drive to

JOBS AFTER COAL A Just Transition for Queensland | 17

develop the aquaculture industry This could see a future where aquaculture goes further than just meeting

domestic demand and grow to cater for high value export markets (Lucas DLGP 2011)

New opportunities in animal genetics aquaculture horticulture and bio-processing are driving agriculture

and aquaculture sector growth in new directions Both industries are about creating intergenerational

economic sustainability Choosing these industries that have unlimited potential to sustain our communities

and our ecosystems over mining is choosing long-term jobs over short-term jobs that cannot be passed on to

the next generation The bottom line is that we live in a hungry world and Queensland is well placed to be a

reliable and sustainable source of food to other nations without the agricultural potential we are endowed with

(Government 2014)

Tourism and recreational fishingDespite setbacks due to the high Australian dollar and loss of skilled workers to the mining boom the

tourism industry is still a critical part of the Queensland economy with massive future potential (Dr Tien Duc

Pham 2015) The tourism industry made a significant employment contribution providing 124000 jobs in

2010ndash11 with steady growth in international visitor nights (Deloitte Access Economics 2012) Queensland

has the potential to become a global leader in tourism and ecotourism and by doing so to create more

jobs and revenue (Government 2014) This will be possible similarly as in agriculture by promoting the

experiences available in our natural places and the quality hospitality we can provide to the growing Asian

middle class (Wilson 2013) The Chinese tourism market is seeking clean fresh and new experiences that

Queensland can cater to and is expected to be worth $74 billion by 2020 (Guterres 2014) Significant to

Queenslandrsquos potential in tourism is our ability to expand the tourism industry in the authentically Australian

rural and stunningly beautiful coastal mining communities where new economic activities are most needed

Further mining expansion in such places threatens to do to tourism what the growth in heavy industry did to

Gladstonersquos economic diversity where fishing and tourism are now non-existent

Although sustainably managed fisheries have the potential to provide continued economic prosperity to

Queensland there lies a major opportunity in net free fisheries to develop as tourism industries specifically

in coal mining regions A great recent example of this taking place is the newly established Net Free Zone

between from the Northern end of St Helens beach to Cape Hillsborough (Spelitis 2015) Along with three

other net free zones across the state the extent of the cumulative commercial opportunities for sustainable

tourism the net free zones have created has made it one of the three pillars as part of the 2020 vision for the

Queensland has the opportunity to develop an abundant and resilient agricultural industry that supports the transition to sustainable prosperity

18 | JOBS AFTER COAL A Just Transition for Queensland

Queensland Tourism Industry Council (Council 2015) The Mackay Isaac and Whitsunday (MIW) coal mining

region has excellent accessibility to a variety of fishing pursuits In addition to the new net free zone ther are

five fresh water stocked impoundment fisheries creating opportunities to promote lake beach offshore and

deepwater angling Improvement of accommodation facilities quality of jetties access roads and coordinating

fish trails with regional events could maximise visitation from recreational and tourism markets (Mackay

Tourism Tourism Queensland 2012) Charter fishing operatiors tackle stores campsites motels boat sales

boat building and maintenance all have the opportunity of benefitted from growth from the recreational fishing

tourism industry (Lucas DLGP 2012)

Higher educationOver the past decade millions of international students have visited Queensland for our quality tertiary

institutions and enjoyable lifestyle International education is Queenslandrsquos biggest service export with

nearly $2431 million being generated in 2013ndash14 alone (Australian Government 2014) The majority

of Queensland is strategically located in the latitudinal tropical zone where at a global level more than

50 of the worldrsquos population is forecasted to live by 2050 (Australian Government 2015) This makes

Queenslandrsquos universities well placed to develop the partnerships and research innovations tailored to the

challenges and opportunities of the new tropically-oriented world This will help Queensland and especially

North Queensland to attract increasing levels of international students to be part of our high-quality tropical

research institutions These students will increase spending through tourism support the creation of our own

skilled and globally connected workforce and connect Australia to business networks and opportunities across

the world In 2013ndash14 the Cairns region benefitted to the tune of $1375 million from international students

(McGuiggan 2014) With the right policies these benefits already being experienced primarily in Cairns

Townsville and Brisbane can be spread further across Queensland to make international education a strong

economic driver in transitioning mining communities

Bio-industrial productsAs the world moves away from fossil fuels the demand for cleaner more sustainable fuel sources will grow

(Emissions 2014) By using excess organic matter produced through food production to develop bio-industrial

products Queensland has the potential to export clean and sustainable fuels and bio-plastic materials to the

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Tourism is about experiences not extraction It has the potential to share Queensland beauty with the rest of the world and create sustainable local economies in the process

Queenslandrsquos greatest resource is the minds of its people We can share and co-create our innovations and learning with students from all over the world who want to make Queensland the launch pad for their careers

JOBS AFTER COAL A Just Transition for Queensland | 19

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Sorghum fields

20 | JOBS AFTER COAL A Just Transition for Queensland

Queensland is well placed to develop biofuel products from waste and oil crops such as Pongamia and algae

in addition to using the statersquos advanced sugarcane industry to convert excess cane using efficient cellulosic

processes Recent scientific developments in bio-plastics at the University of Queensland show that as a

state Queensland has the skills and ability to build a bio-industrial products industry that can contribute to a

sustainable economic future (Queensland 2015)

Renewable energyQueensland the sunshine state has enormous potential to generate electricity from the sun wind and waves

in addition to many other abundant renewable energy sources (Green 2012) Renewable energy has for a long

time been the catch cry from environmentalists as the complete solution to creating the jobs necessary to

replace the fossil fuel industry This report has been written partially to show recognition that as much as

renewable energy has the potential to create more jobs and replace fossil fuel domestic energy production it

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Gemasolar solar thermal power station Spain

JOBS AFTER COAL A Just Transition for Queensland | 21

cannot completely replace all of the coal

export industry jobs Numerous studies

show that with strong climate policies

over 7100 jobs can be created in

Queensland through renewable energy

by 2030 (Institute 2011) Thousands of

these jobs will be in regional

Queensland These should be prioritised

for regions where the mining industry

has developed rural communities in

need of new economic opportunities Far

North Queensland is especially suited to

further renewable energy investment

because of its climatic conditions and

because of the expensive transmissions

losses from having energy wired from

southern power sources (Allen 2011)

This makes it essential that government

policy ensures that the fair share of the

$35 billion in potential renewable

energy investment goes to rural mining

communities not only where it is most

needed economically but where it

makes the most business sense

(Department of Employment 2009)

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Queensland has the potential to become a smart sunshine state powered by clean and sustainable renewable energy By doing this we will be creating jobs in rural mining communities where they are needed most and building a foundation for a new sustainable economy

22 | JOBS AFTER COAL A Just Transition for Queensland

4 Community transitions Global case studies

There are communities around the worldwhich have reinvented themselves after the end of coal mining and

developed prosperous economies in doing so It has been a struggle but where there is a level of government

support inspired local leadership and the community is working together to regenerate its economy it has

been possible (Coal 2015) We are not suggesting any of these examples can be directly transferred to

Queensland communities facing the end of coal mining The object of these case studies is not to provide a

blueprint for Mackay Gladstone Rockhampton or mining towns in Central Queensland but to show the

diversity of ideas that have worked in other places that might stimulate our local communities to reinvent

themselves too

Hazelwood coal power station La Trobe Valley Vic

JOBS AFTER COAL A Just Transition for Queensland | 23

La Trobe ValleyIn the brown coal producing region of the La Trobe Valley in Victoria a grassroots transitionary force has been

underway for the past fifteen years Earthworker was set up by union and climate change activists seeking a

real alternative to coal and privately owned business models Earthworker Cooperativersquos mission is to create

jobs that respond to the lsquochallenges of climate change and the need for local job creation by facilitating the

establishment of worker-owned cooperatives hellip in sustainability-focused industriesrsquo (Earthworker 2015)

Their current focus is the establishment of a cooperative producing solar hot water systems in partnership

with an existing business called lsquoEverlast Hydro Systemsrsquo Their goal is to take production to Morwell in the

La Trobe Valley where workers are in need of an alternative to the coal industry The unique cooperative model

has made selling arrangement possible through inserting the option to buy a solar hot water system through

enterprise bargaining agreements

BanwenThe DOVE workshop in Banwen South Wales (Dove 2015) was started by agroup of women who during

the 1984ndash85 coal minersrsquo strike decided that community-based education was the most practical path to

regenerate the local economy Setting up shop in an abandoned mine office they developed a series of adult

education workshops for women Three decades later the DOVE building hosts a diverse set of small-scale

entrepreneurs including a daycare a library a community garden and a cafeacute featuring local foods

OrkneyOrkney like Central Queensland is a relatively isolated place with a scattered population Situated at the

top of Scotland two hours from the mainland by ferry Orcadians like Central Queenslanders often feel

like spectators to what goes on in the rest of their country They also feel vulnerable to central government

decisions and are often irritated by the lack of understanding of island life on the part of distant authoritiesmdash

its particular customs dialect and ways of doing things Since Norse times Orkney islanders burned peat (a

very young form of coal) as their primary fuel source but all the peat has been dug up This traditional way

of life where each farming family had its own peat bank and spent long summer days cutting and drying

peats while sharing picnics as children played is gone Another non-renewable energy source North Sea oil

discovered in the 1970s brought positive and negatives for the island It turned the tide of depopulation but

like the peat banks the oil is depleting and another lsquoend of an erarsquo is approaching Orcadians have woken up

to the fact that they canrsquot continue to hark back to the past and are confronting the issues of a future without

fossil fuels

Over the last three decades European community funding has helped Orkney to equip itself for the green

energy revolution Orkney now plays a global role in the evolution of wave and tidal technologies and

significant research and development work is creating new employment opportunities A high school in

Stromness was converted into the European Marine Energy Centre and is now a world leader providing

developers the opportunity to test full-scale prototypes in the sea The worldrsquos largest single-rotor tidal turbine

24 | JOBS AFTER COAL A Just Transition for Queensland

was the first in Scotland to be connected to the national grid from this centre Marine energy combined with

an expansion of wind turbines means that the island is now self-sufficient in electricity These renewable

energy developments have created jobs in the Orkneys in civil works and erection grid connection and

communications (Stuart 2011)

Investment in renewable energy and its associated RampD has attracted people to live work and study on the

island Islanders used to have to leave to get tertiary education but it is now possible to study for an MSc in

renewable energy at a Heriot Watt University campus in Stromness A new generation of Orcadians have grown

up to see renewable energy as the way of the future something quite ldquonormalrdquo which will provide greater

opportunities for their children to stay on the island with genuine prospects for employment in meaningful

jobs requiring a wide range of skills and qualifications This shows what a community in transition to a low

carbon future can look like

Nord-Pas De CalaisUntil 1986 the north-east region of France Nord-pas de Calais was a major coal mining area It still boasts

huge twin tailings mountains the largest in Europe which have become a tourist attraction It is known

to Australians for the war cemeteries associated with the battle of the Somme in WW1 but it has recently

undergone a remarkable transformation towards a truly sustainable economy Old coal mines at Lens have

been transformed into an art gallery displaying works from the Louvre collection in Paris Hundreds of people

are trained in energy efficiency solar energy and green architecture at a new training centre in nearby Loos-

en-Gohelle

The Chamber of Commerce invited economist and social visionary Jeremy Rifkin of the TIR Consulting

Group and his chief economist Skip Laitner to apply their model of the third industrial revolution to the

district (Riftkin 2015) Rifkinrsquos Third Industrial Revolution combines renewable energy energy efficiency

and the connectivity of the internet Buildings are energy generators and hydrogen is used as energy storage

After working with the community for some time the Master Plan was published in 2013 and envisages

that 100000 new jobs can be created by the transition plan (LLC 2013) Certainly the population has not

declined since mining days and has even slightly increased Inspired local leadership was the key in this

community plus some outside funding to help with the underpinning research

Appalachia (Kentucky)The transition process is just starting here but the community is very organised Kentuckians For The

Commonwealth has been battling the negative effects of coal mining for some decades and is now planning a

transition to ldquobuilding a better future beyond coalrdquo (Commonwealth 2015) Last year they held a conference

in Harlan Kentucky right in the middle of the Appalachian coal fields and invited guests from other US

regions in the same position as well as from Wales It is too soon to see what the outcome of their learning

process will be but they are another example of a community taking its future into its own handsmdashoptimistic

that there is a better future after coal

JOBS AFTER COAL A Just Transition for Queensland | 25

5 A just transition for coal mining communities policy recommendations

The opportunities to transition from unsustainable coal mining to prosperous communities with decent

employment will not just materialise by themselves It will need the political will and the right incentives to

ensure that communities are not left fending for themselves with unemployment increasing and families

in need of long-term welfare But not only is the political will not currently there both major political

parties continue to support the expansion of this sunset industry and by doing so are making the transition

challenges progressively more difficult (Denniss 2012) For too many years governments have uncritically

supported the coal mining sector Entire government departments have been focused on facilitating mining

with tax incentives weakening assessment and approval processes along with providing through tax payer

money established industrial infrastructure to support new projects Government policy often seeks to grow

royalties income by supporting the extraction of as much coal as possible as an escape the challenge of

finding other ways to increase state revenue New sustainable industries in coal communities will need just as

much if not more support while it gets started

We propose that communities local businesses workers unions community groups environment groups

local government and state and federal governments all need to be involved in planning a transition to

alternative forms of economic development and providing new jobs We call this a Just Transition (Anthea

Bill amp Evans1 2008 Brecher 2012) Just Transition is a framework for a fair and sustainable shift to a low

carbon economy proposed by trade unions and supported by environmental NGOs A Just Transition holds

that a shift to a lower carbon economy is vital to avoid dangerous climate change

Bimblebox Nature Refuge

26 | JOBS AFTER COAL A Just Transition for Queensland

Tough targets to cut greenhouse pollution supported by new environmental regulations and emerging carbon

markets will transform the global economy over the next decade These shifts will have major implications

for working people in energy supply industry and transport and for everyone as consumers There is a concern

that significant periods of economic restructuring in the past have often happened in a chaotic fashion

leaving ordinary workers along with their families and communities to bear the brunt of the transition to

new ways of producing wealth A just transition seeks to prevent such injustice becoming a feature of this

transition suggesting that it would not only be morally wrong and socially damaging but would undermine the

credibility of the transition itself and could slow or even halt the changes that must be made

It is through the challenges of communicating the urgency of climate change and other social and

environmental impacts that much of the debate about coal and its consequences for land water and the

climate has become unnecessarily adversarial and polarised Coal mining and power generation communities

deserve acknowledgement and appreciation for all that they have historically and currently contributed to

our country and our economy In communicating the economic shifts that are taking place and facilitating

the necessary transitions the Australian community needs to be respectful of the history and identity of coal

communities Environment groups government unions and the community need to initiate and engage in

the discussions about transitions in an open honest and compassionate manner Only by approaching the

transition in this way can the adversarial nature of the debate be broken down to make way for transformative

mutually respectful and holistic solutions

Whitsundays lsquoHave a Heart for the Reefrsquo

JOBS AFTER COAL A Just Transition for Queensland | 27

A just transition recognises that support for policies are conditional on a fair distribution of the costs and

benefits of those policies across the economy A just transition should also recognise that the creation of

opportunities for active engagement by those affected in determining the future wellbeing of themselves

and their families is essential for the long term empowerment of citizens and communities The following

recommendations have been written with the aim of emphasising such community empowerment as a priority

Recommendations

1) Establishing a unit within the State Government to support coal mining regions to transition to new economies

Specific institutions are needed to develop transition plans They need to have strong government support

and funding regional offices and representation from diverse stakeholders A dedicated unit within the

Department of Infrastructure Local Government and Planning could be established to oversee this work

They could work on the ground in the main coal mining communities to bring government expertise into

regional entities that would develop local plans that involve and empower the whole community This unit

or a connected unit would analyse existing barriers to the creation of competitive advantages for alternative

sustainable industries and would identify actions the State Government can take to support such creation

Any policy and support should come with clear conditions and timeframes These regional entities would

need generous budgets to assist local groups to develop their transition strategies to support research re-

training and the development of new business and community start-up initiatives based on the needs and

strategies of communities The key to communities becoming economically resilient is high levels of autonomy

and freedom in shaping their economic futures Research funding available to the regional entities will be

essential to the empowerment of local leadership Research funding should at least reach the OECD research

funding average and it should prioritise low carbon technologies and industry sectors with increased triple

bottom line sustainability potential

2) Support community leadership in diversifying local economies through the establishment of democratic regional entities

In each mining community a group of traditional and non-traditional community leaders willing to think

beyond lsquoBusiness as Usualrsquo to imagine a better future could be called together to work in collaboration with

and be resourced by the state government managed regional entities mentioned in recommendation one

The leaders would come from diverse backgrounds such as from local governments business associations

unions farming groups renewable energy businesses and educational institutions The objectives of these

leadership groups would be tailored to each community The objectives would in broad terms be to increase

employment in new diverse industries based on sustainable production and publicservice sector job creation

Expert facilitation alongside inclusive and democratic community engagement initiatives would be essential

to ensure the process and environment for creativity and innovation is maximised To develop such groups

it would be necessary to take stock of the existing resources skills and successful businesses on which a

new future can be built In addition an analysis of the social environmental and economic needs of the

28 | JOBS AFTER COAL A Just Transition for Queensland

community would also be beneficial These groups could then establish economic diversification projects

including value-added local production worker controlled co-operative enterprises and new community-

based enterprises that economically empower the local community Activities may also include support for

alternative industries in regard to process restructuring or subsidising the wages of workers displaced from

higher paying traditional industries

3) Support researching and communicating how the just transition can take place

Consistent research is needed on the best options to support the state and national economies to transition

This requires ongoing situational analysis of the global energy market shifts at both government levels In

addition each mining region will need assistance to research the number of jobs that are dependent on coal

the skills of those employed the level of local national and global long- and short-term risk to local mining

operations the transferability of jobs to other industries local opportunities for new enterprises and their

needs and the local educational and training needs and resources A key issue requiring research will be

around how the transitition scenarios differ depending on the level and relativity of thermal and coking coal

industries across coal mining communities The process for sourcing this information at a local and state

government level should be integrated into a policy feedback loop to support cyclical situational analysis and

policy adjustments from all levels of government This research should take place at the state level and be

encouraged at the industry and local level through grants

Mackay Central Queensland

JOBS AFTER COAL A Just Transition for Queensland | 29

4) Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

Many existing Queensland industries including those not highlighted in this report have the potential to

carry Queensland towards a new sustainable economy [sC5]mdashbut they will need support to do so Instead

of continuing to support and lower costs for the coal mining industry we need a plan to grow competitive

advantage across industries that have potential for sustainability and growth in regional mining communities

Along with industry and community organisations the State Government could organise a State Economic

Summit to assess existing industry clusters identify the potential of new and emerging industries consider

their competitiveness and key capabilities and identify barriers to increasing competitive advantage The

findings and recommendations from this Summit could be used to inform the work of the Unit established in

bullet point one above and the research outlined in bullet point two

5) Provide social protection of workers their families and incomes

If mines close suddenly workers need protection for their incomes and social services and possible relocation

even though many miners these days do not live in the communities where they mine Ideally these transition

plans would be developed early enough to ensure that new employment opportunities are in place for them

before mines actually close For many workers this is already too late but if the process begins now there will

be choices available for future retrenched coal workers who live in mining communities and regions Mining

companies could be incentivised andor penalised to give adequate notice to workers and other stakeholders

that closure may be impending and alternative economic opportunities need to be developed

6) Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

Involving the relevant unions in the planning of community transitions can enable them to move towards

becoming more proactive agents helping to plan the transition with critical networks and specific knowledge

about the needs of their members When a coal-fired power station in Washington State USA was scheduled

for closure for environmental reasons unions played a pivotal role persuading environmentalists and others

to delay the closure long enough for a Just Transition to provide different jobs for the workers This made it

possible for the coal resource to be replaced by wind and other renewable generation rather than natural

gasmdasha better environmental outcome and the unions became an active part in the phase out planning

Unions have a heavy workload defending workers rights and pay They need to be supported and financed to

play important roles in community transitions From facilitation and leadership of planning bodies career

planning and advice preferential hiring for displaced workers in the new alternative emerging industries and

leading the establishment of work controlled cooperatives unions have an essential role to play

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

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After Coal (2015) Community Regeneration West Virginia United States httpaftercoalcomengage-your-community Retrieved 10th of November 2015

Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

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Australian Bureau of Statistics (2014) Australian National Accounts State Accounts 2012ndash13 Canberra Australia Retrieved 10th of November 2015

Australian Bureau of Statistics (2015) MackaymdashCensus Employment by IndustrymdashTime Series Australian Government Department of Employment Retrieved 10th of November 2015

Australian Government Department for Education and Training (2015) Draft National Strategy for International Education Canberra Australian Capital Territory Retrieved 10th of November 2015

Australian Government (2014) Export income to Australia from international education activity in 2013ndash14 Canberra Australia Retrieved 10th of November 2015

BHP Billiton (2013) Coal Briefing httpwwwbhpbillitoncom~mediabhpdocumentsinvestorsreports2013130529_coalbriefingpdf Retrieved 10th of November 2015

Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

Beyond Zero Emissions (2012) Laggard to Leader How Australia Can Lead the World to Zero Carbon Prosperity Melbourne University Melbourne Victoria Retrieved 10th of November 2015

Beyond Zero Emissions (2014) A Fossil Economy in a Changing World Melbourne University Melbourne Victoria httpmediabzeorgaufossileconomyFossilEconomypdf Retrieved 10th of November 2015

Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

One Million Climate Job Campaign (2015) About London United Kingdom httpclimatejobsorgzaabout Retrieved 10th of November 2015

Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 27: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

JOBS AFTER COAL A Just Transition for Queensland | 17

develop the aquaculture industry This could see a future where aquaculture goes further than just meeting

domestic demand and grow to cater for high value export markets (Lucas DLGP 2011)

New opportunities in animal genetics aquaculture horticulture and bio-processing are driving agriculture

and aquaculture sector growth in new directions Both industries are about creating intergenerational

economic sustainability Choosing these industries that have unlimited potential to sustain our communities

and our ecosystems over mining is choosing long-term jobs over short-term jobs that cannot be passed on to

the next generation The bottom line is that we live in a hungry world and Queensland is well placed to be a

reliable and sustainable source of food to other nations without the agricultural potential we are endowed with

(Government 2014)

Tourism and recreational fishingDespite setbacks due to the high Australian dollar and loss of skilled workers to the mining boom the

tourism industry is still a critical part of the Queensland economy with massive future potential (Dr Tien Duc

Pham 2015) The tourism industry made a significant employment contribution providing 124000 jobs in

2010ndash11 with steady growth in international visitor nights (Deloitte Access Economics 2012) Queensland

has the potential to become a global leader in tourism and ecotourism and by doing so to create more

jobs and revenue (Government 2014) This will be possible similarly as in agriculture by promoting the

experiences available in our natural places and the quality hospitality we can provide to the growing Asian

middle class (Wilson 2013) The Chinese tourism market is seeking clean fresh and new experiences that

Queensland can cater to and is expected to be worth $74 billion by 2020 (Guterres 2014) Significant to

Queenslandrsquos potential in tourism is our ability to expand the tourism industry in the authentically Australian

rural and stunningly beautiful coastal mining communities where new economic activities are most needed

Further mining expansion in such places threatens to do to tourism what the growth in heavy industry did to

Gladstonersquos economic diversity where fishing and tourism are now non-existent

Although sustainably managed fisheries have the potential to provide continued economic prosperity to

Queensland there lies a major opportunity in net free fisheries to develop as tourism industries specifically

in coal mining regions A great recent example of this taking place is the newly established Net Free Zone

between from the Northern end of St Helens beach to Cape Hillsborough (Spelitis 2015) Along with three

other net free zones across the state the extent of the cumulative commercial opportunities for sustainable

tourism the net free zones have created has made it one of the three pillars as part of the 2020 vision for the

Queensland has the opportunity to develop an abundant and resilient agricultural industry that supports the transition to sustainable prosperity

18 | JOBS AFTER COAL A Just Transition for Queensland

Queensland Tourism Industry Council (Council 2015) The Mackay Isaac and Whitsunday (MIW) coal mining

region has excellent accessibility to a variety of fishing pursuits In addition to the new net free zone ther are

five fresh water stocked impoundment fisheries creating opportunities to promote lake beach offshore and

deepwater angling Improvement of accommodation facilities quality of jetties access roads and coordinating

fish trails with regional events could maximise visitation from recreational and tourism markets (Mackay

Tourism Tourism Queensland 2012) Charter fishing operatiors tackle stores campsites motels boat sales

boat building and maintenance all have the opportunity of benefitted from growth from the recreational fishing

tourism industry (Lucas DLGP 2012)

Higher educationOver the past decade millions of international students have visited Queensland for our quality tertiary

institutions and enjoyable lifestyle International education is Queenslandrsquos biggest service export with

nearly $2431 million being generated in 2013ndash14 alone (Australian Government 2014) The majority

of Queensland is strategically located in the latitudinal tropical zone where at a global level more than

50 of the worldrsquos population is forecasted to live by 2050 (Australian Government 2015) This makes

Queenslandrsquos universities well placed to develop the partnerships and research innovations tailored to the

challenges and opportunities of the new tropically-oriented world This will help Queensland and especially

North Queensland to attract increasing levels of international students to be part of our high-quality tropical

research institutions These students will increase spending through tourism support the creation of our own

skilled and globally connected workforce and connect Australia to business networks and opportunities across

the world In 2013ndash14 the Cairns region benefitted to the tune of $1375 million from international students

(McGuiggan 2014) With the right policies these benefits already being experienced primarily in Cairns

Townsville and Brisbane can be spread further across Queensland to make international education a strong

economic driver in transitioning mining communities

Bio-industrial productsAs the world moves away from fossil fuels the demand for cleaner more sustainable fuel sources will grow

(Emissions 2014) By using excess organic matter produced through food production to develop bio-industrial

products Queensland has the potential to export clean and sustainable fuels and bio-plastic materials to the

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Tourism is about experiences not extraction It has the potential to share Queensland beauty with the rest of the world and create sustainable local economies in the process

Queenslandrsquos greatest resource is the minds of its people We can share and co-create our innovations and learning with students from all over the world who want to make Queensland the launch pad for their careers

JOBS AFTER COAL A Just Transition for Queensland | 19

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Sorghum fields

20 | JOBS AFTER COAL A Just Transition for Queensland

Queensland is well placed to develop biofuel products from waste and oil crops such as Pongamia and algae

in addition to using the statersquos advanced sugarcane industry to convert excess cane using efficient cellulosic

processes Recent scientific developments in bio-plastics at the University of Queensland show that as a

state Queensland has the skills and ability to build a bio-industrial products industry that can contribute to a

sustainable economic future (Queensland 2015)

Renewable energyQueensland the sunshine state has enormous potential to generate electricity from the sun wind and waves

in addition to many other abundant renewable energy sources (Green 2012) Renewable energy has for a long

time been the catch cry from environmentalists as the complete solution to creating the jobs necessary to

replace the fossil fuel industry This report has been written partially to show recognition that as much as

renewable energy has the potential to create more jobs and replace fossil fuel domestic energy production it

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Gemasolar solar thermal power station Spain

JOBS AFTER COAL A Just Transition for Queensland | 21

cannot completely replace all of the coal

export industry jobs Numerous studies

show that with strong climate policies

over 7100 jobs can be created in

Queensland through renewable energy

by 2030 (Institute 2011) Thousands of

these jobs will be in regional

Queensland These should be prioritised

for regions where the mining industry

has developed rural communities in

need of new economic opportunities Far

North Queensland is especially suited to

further renewable energy investment

because of its climatic conditions and

because of the expensive transmissions

losses from having energy wired from

southern power sources (Allen 2011)

This makes it essential that government

policy ensures that the fair share of the

$35 billion in potential renewable

energy investment goes to rural mining

communities not only where it is most

needed economically but where it

makes the most business sense

(Department of Employment 2009)

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Queensland has the potential to become a smart sunshine state powered by clean and sustainable renewable energy By doing this we will be creating jobs in rural mining communities where they are needed most and building a foundation for a new sustainable economy

22 | JOBS AFTER COAL A Just Transition for Queensland

4 Community transitions Global case studies

There are communities around the worldwhich have reinvented themselves after the end of coal mining and

developed prosperous economies in doing so It has been a struggle but where there is a level of government

support inspired local leadership and the community is working together to regenerate its economy it has

been possible (Coal 2015) We are not suggesting any of these examples can be directly transferred to

Queensland communities facing the end of coal mining The object of these case studies is not to provide a

blueprint for Mackay Gladstone Rockhampton or mining towns in Central Queensland but to show the

diversity of ideas that have worked in other places that might stimulate our local communities to reinvent

themselves too

Hazelwood coal power station La Trobe Valley Vic

JOBS AFTER COAL A Just Transition for Queensland | 23

La Trobe ValleyIn the brown coal producing region of the La Trobe Valley in Victoria a grassroots transitionary force has been

underway for the past fifteen years Earthworker was set up by union and climate change activists seeking a

real alternative to coal and privately owned business models Earthworker Cooperativersquos mission is to create

jobs that respond to the lsquochallenges of climate change and the need for local job creation by facilitating the

establishment of worker-owned cooperatives hellip in sustainability-focused industriesrsquo (Earthworker 2015)

Their current focus is the establishment of a cooperative producing solar hot water systems in partnership

with an existing business called lsquoEverlast Hydro Systemsrsquo Their goal is to take production to Morwell in the

La Trobe Valley where workers are in need of an alternative to the coal industry The unique cooperative model

has made selling arrangement possible through inserting the option to buy a solar hot water system through

enterprise bargaining agreements

BanwenThe DOVE workshop in Banwen South Wales (Dove 2015) was started by agroup of women who during

the 1984ndash85 coal minersrsquo strike decided that community-based education was the most practical path to

regenerate the local economy Setting up shop in an abandoned mine office they developed a series of adult

education workshops for women Three decades later the DOVE building hosts a diverse set of small-scale

entrepreneurs including a daycare a library a community garden and a cafeacute featuring local foods

OrkneyOrkney like Central Queensland is a relatively isolated place with a scattered population Situated at the

top of Scotland two hours from the mainland by ferry Orcadians like Central Queenslanders often feel

like spectators to what goes on in the rest of their country They also feel vulnerable to central government

decisions and are often irritated by the lack of understanding of island life on the part of distant authoritiesmdash

its particular customs dialect and ways of doing things Since Norse times Orkney islanders burned peat (a

very young form of coal) as their primary fuel source but all the peat has been dug up This traditional way

of life where each farming family had its own peat bank and spent long summer days cutting and drying

peats while sharing picnics as children played is gone Another non-renewable energy source North Sea oil

discovered in the 1970s brought positive and negatives for the island It turned the tide of depopulation but

like the peat banks the oil is depleting and another lsquoend of an erarsquo is approaching Orcadians have woken up

to the fact that they canrsquot continue to hark back to the past and are confronting the issues of a future without

fossil fuels

Over the last three decades European community funding has helped Orkney to equip itself for the green

energy revolution Orkney now plays a global role in the evolution of wave and tidal technologies and

significant research and development work is creating new employment opportunities A high school in

Stromness was converted into the European Marine Energy Centre and is now a world leader providing

developers the opportunity to test full-scale prototypes in the sea The worldrsquos largest single-rotor tidal turbine

24 | JOBS AFTER COAL A Just Transition for Queensland

was the first in Scotland to be connected to the national grid from this centre Marine energy combined with

an expansion of wind turbines means that the island is now self-sufficient in electricity These renewable

energy developments have created jobs in the Orkneys in civil works and erection grid connection and

communications (Stuart 2011)

Investment in renewable energy and its associated RampD has attracted people to live work and study on the

island Islanders used to have to leave to get tertiary education but it is now possible to study for an MSc in

renewable energy at a Heriot Watt University campus in Stromness A new generation of Orcadians have grown

up to see renewable energy as the way of the future something quite ldquonormalrdquo which will provide greater

opportunities for their children to stay on the island with genuine prospects for employment in meaningful

jobs requiring a wide range of skills and qualifications This shows what a community in transition to a low

carbon future can look like

Nord-Pas De CalaisUntil 1986 the north-east region of France Nord-pas de Calais was a major coal mining area It still boasts

huge twin tailings mountains the largest in Europe which have become a tourist attraction It is known

to Australians for the war cemeteries associated with the battle of the Somme in WW1 but it has recently

undergone a remarkable transformation towards a truly sustainable economy Old coal mines at Lens have

been transformed into an art gallery displaying works from the Louvre collection in Paris Hundreds of people

are trained in energy efficiency solar energy and green architecture at a new training centre in nearby Loos-

en-Gohelle

The Chamber of Commerce invited economist and social visionary Jeremy Rifkin of the TIR Consulting

Group and his chief economist Skip Laitner to apply their model of the third industrial revolution to the

district (Riftkin 2015) Rifkinrsquos Third Industrial Revolution combines renewable energy energy efficiency

and the connectivity of the internet Buildings are energy generators and hydrogen is used as energy storage

After working with the community for some time the Master Plan was published in 2013 and envisages

that 100000 new jobs can be created by the transition plan (LLC 2013) Certainly the population has not

declined since mining days and has even slightly increased Inspired local leadership was the key in this

community plus some outside funding to help with the underpinning research

Appalachia (Kentucky)The transition process is just starting here but the community is very organised Kentuckians For The

Commonwealth has been battling the negative effects of coal mining for some decades and is now planning a

transition to ldquobuilding a better future beyond coalrdquo (Commonwealth 2015) Last year they held a conference

in Harlan Kentucky right in the middle of the Appalachian coal fields and invited guests from other US

regions in the same position as well as from Wales It is too soon to see what the outcome of their learning

process will be but they are another example of a community taking its future into its own handsmdashoptimistic

that there is a better future after coal

JOBS AFTER COAL A Just Transition for Queensland | 25

5 A just transition for coal mining communities policy recommendations

The opportunities to transition from unsustainable coal mining to prosperous communities with decent

employment will not just materialise by themselves It will need the political will and the right incentives to

ensure that communities are not left fending for themselves with unemployment increasing and families

in need of long-term welfare But not only is the political will not currently there both major political

parties continue to support the expansion of this sunset industry and by doing so are making the transition

challenges progressively more difficult (Denniss 2012) For too many years governments have uncritically

supported the coal mining sector Entire government departments have been focused on facilitating mining

with tax incentives weakening assessment and approval processes along with providing through tax payer

money established industrial infrastructure to support new projects Government policy often seeks to grow

royalties income by supporting the extraction of as much coal as possible as an escape the challenge of

finding other ways to increase state revenue New sustainable industries in coal communities will need just as

much if not more support while it gets started

We propose that communities local businesses workers unions community groups environment groups

local government and state and federal governments all need to be involved in planning a transition to

alternative forms of economic development and providing new jobs We call this a Just Transition (Anthea

Bill amp Evans1 2008 Brecher 2012) Just Transition is a framework for a fair and sustainable shift to a low

carbon economy proposed by trade unions and supported by environmental NGOs A Just Transition holds

that a shift to a lower carbon economy is vital to avoid dangerous climate change

Bimblebox Nature Refuge

26 | JOBS AFTER COAL A Just Transition for Queensland

Tough targets to cut greenhouse pollution supported by new environmental regulations and emerging carbon

markets will transform the global economy over the next decade These shifts will have major implications

for working people in energy supply industry and transport and for everyone as consumers There is a concern

that significant periods of economic restructuring in the past have often happened in a chaotic fashion

leaving ordinary workers along with their families and communities to bear the brunt of the transition to

new ways of producing wealth A just transition seeks to prevent such injustice becoming a feature of this

transition suggesting that it would not only be morally wrong and socially damaging but would undermine the

credibility of the transition itself and could slow or even halt the changes that must be made

It is through the challenges of communicating the urgency of climate change and other social and

environmental impacts that much of the debate about coal and its consequences for land water and the

climate has become unnecessarily adversarial and polarised Coal mining and power generation communities

deserve acknowledgement and appreciation for all that they have historically and currently contributed to

our country and our economy In communicating the economic shifts that are taking place and facilitating

the necessary transitions the Australian community needs to be respectful of the history and identity of coal

communities Environment groups government unions and the community need to initiate and engage in

the discussions about transitions in an open honest and compassionate manner Only by approaching the

transition in this way can the adversarial nature of the debate be broken down to make way for transformative

mutually respectful and holistic solutions

Whitsundays lsquoHave a Heart for the Reefrsquo

JOBS AFTER COAL A Just Transition for Queensland | 27

A just transition recognises that support for policies are conditional on a fair distribution of the costs and

benefits of those policies across the economy A just transition should also recognise that the creation of

opportunities for active engagement by those affected in determining the future wellbeing of themselves

and their families is essential for the long term empowerment of citizens and communities The following

recommendations have been written with the aim of emphasising such community empowerment as a priority

Recommendations

1) Establishing a unit within the State Government to support coal mining regions to transition to new economies

Specific institutions are needed to develop transition plans They need to have strong government support

and funding regional offices and representation from diverse stakeholders A dedicated unit within the

Department of Infrastructure Local Government and Planning could be established to oversee this work

They could work on the ground in the main coal mining communities to bring government expertise into

regional entities that would develop local plans that involve and empower the whole community This unit

or a connected unit would analyse existing barriers to the creation of competitive advantages for alternative

sustainable industries and would identify actions the State Government can take to support such creation

Any policy and support should come with clear conditions and timeframes These regional entities would

need generous budgets to assist local groups to develop their transition strategies to support research re-

training and the development of new business and community start-up initiatives based on the needs and

strategies of communities The key to communities becoming economically resilient is high levels of autonomy

and freedom in shaping their economic futures Research funding available to the regional entities will be

essential to the empowerment of local leadership Research funding should at least reach the OECD research

funding average and it should prioritise low carbon technologies and industry sectors with increased triple

bottom line sustainability potential

2) Support community leadership in diversifying local economies through the establishment of democratic regional entities

In each mining community a group of traditional and non-traditional community leaders willing to think

beyond lsquoBusiness as Usualrsquo to imagine a better future could be called together to work in collaboration with

and be resourced by the state government managed regional entities mentioned in recommendation one

The leaders would come from diverse backgrounds such as from local governments business associations

unions farming groups renewable energy businesses and educational institutions The objectives of these

leadership groups would be tailored to each community The objectives would in broad terms be to increase

employment in new diverse industries based on sustainable production and publicservice sector job creation

Expert facilitation alongside inclusive and democratic community engagement initiatives would be essential

to ensure the process and environment for creativity and innovation is maximised To develop such groups

it would be necessary to take stock of the existing resources skills and successful businesses on which a

new future can be built In addition an analysis of the social environmental and economic needs of the

28 | JOBS AFTER COAL A Just Transition for Queensland

community would also be beneficial These groups could then establish economic diversification projects

including value-added local production worker controlled co-operative enterprises and new community-

based enterprises that economically empower the local community Activities may also include support for

alternative industries in regard to process restructuring or subsidising the wages of workers displaced from

higher paying traditional industries

3) Support researching and communicating how the just transition can take place

Consistent research is needed on the best options to support the state and national economies to transition

This requires ongoing situational analysis of the global energy market shifts at both government levels In

addition each mining region will need assistance to research the number of jobs that are dependent on coal

the skills of those employed the level of local national and global long- and short-term risk to local mining

operations the transferability of jobs to other industries local opportunities for new enterprises and their

needs and the local educational and training needs and resources A key issue requiring research will be

around how the transitition scenarios differ depending on the level and relativity of thermal and coking coal

industries across coal mining communities The process for sourcing this information at a local and state

government level should be integrated into a policy feedback loop to support cyclical situational analysis and

policy adjustments from all levels of government This research should take place at the state level and be

encouraged at the industry and local level through grants

Mackay Central Queensland

JOBS AFTER COAL A Just Transition for Queensland | 29

4) Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

Many existing Queensland industries including those not highlighted in this report have the potential to

carry Queensland towards a new sustainable economy [sC5]mdashbut they will need support to do so Instead

of continuing to support and lower costs for the coal mining industry we need a plan to grow competitive

advantage across industries that have potential for sustainability and growth in regional mining communities

Along with industry and community organisations the State Government could organise a State Economic

Summit to assess existing industry clusters identify the potential of new and emerging industries consider

their competitiveness and key capabilities and identify barriers to increasing competitive advantage The

findings and recommendations from this Summit could be used to inform the work of the Unit established in

bullet point one above and the research outlined in bullet point two

5) Provide social protection of workers their families and incomes

If mines close suddenly workers need protection for their incomes and social services and possible relocation

even though many miners these days do not live in the communities where they mine Ideally these transition

plans would be developed early enough to ensure that new employment opportunities are in place for them

before mines actually close For many workers this is already too late but if the process begins now there will

be choices available for future retrenched coal workers who live in mining communities and regions Mining

companies could be incentivised andor penalised to give adequate notice to workers and other stakeholders

that closure may be impending and alternative economic opportunities need to be developed

6) Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

Involving the relevant unions in the planning of community transitions can enable them to move towards

becoming more proactive agents helping to plan the transition with critical networks and specific knowledge

about the needs of their members When a coal-fired power station in Washington State USA was scheduled

for closure for environmental reasons unions played a pivotal role persuading environmentalists and others

to delay the closure long enough for a Just Transition to provide different jobs for the workers This made it

possible for the coal resource to be replaced by wind and other renewable generation rather than natural

gasmdasha better environmental outcome and the unions became an active part in the phase out planning

Unions have a heavy workload defending workers rights and pay They need to be supported and financed to

play important roles in community transitions From facilitation and leadership of planning bodies career

planning and advice preferential hiring for displaced workers in the new alternative emerging industries and

leading the establishment of work controlled cooperatives unions have an essential role to play

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

References

ABC Online (2014) Coal lsquogood for humanityrsquo Prime Minister Tony Abbott says at $39b Queensland mine opening httpwwwabcnetaunews2014-10-13coal-is-good-for-humanity-pm-tony-abbott-says5810244 Retrieved 10th of November 2015

After Coal (2015) Community Regeneration West Virginia United States httpaftercoalcomengage-your-community Retrieved 10th of November 2015

Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

Arabella Advisors (2015) Measuring the Growth of the Global Fossil Fuel Divestment and Clean Energy Investment Movement httpwwwarabellaadvisorscomwp-contentuploads201509Measuring-the-Growth-of-the-Divestment-Movementpdf Retrieved 10th of November 2015

Australian Bureau of Statistics (2014) Australian National Accounts State Accounts 2012ndash13 Canberra Australia Retrieved 10th of November 2015

Australian Bureau of Statistics (2015) MackaymdashCensus Employment by IndustrymdashTime Series Australian Government Department of Employment Retrieved 10th of November 2015

Australian Government Department for Education and Training (2015) Draft National Strategy for International Education Canberra Australian Capital Territory Retrieved 10th of November 2015

Australian Government (2014) Export income to Australia from international education activity in 2013ndash14 Canberra Australia Retrieved 10th of November 2015

BHP Billiton (2013) Coal Briefing httpwwwbhpbillitoncom~mediabhpdocumentsinvestorsreports2013130529_coalbriefingpdf Retrieved 10th of November 2015

Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

Beyond Zero Emissions (2012) Laggard to Leader How Australia Can Lead the World to Zero Carbon Prosperity Melbourne University Melbourne Victoria Retrieved 10th of November 2015

Beyond Zero Emissions (2014) A Fossil Economy in a Changing World Melbourne University Melbourne Victoria httpmediabzeorgaufossileconomyFossilEconomypdf Retrieved 10th of November 2015

Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

One Million Climate Job Campaign (2015) About London United Kingdom httpclimatejobsorgzaabout Retrieved 10th of November 2015

Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 28: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

18 | JOBS AFTER COAL A Just Transition for Queensland

Queensland Tourism Industry Council (Council 2015) The Mackay Isaac and Whitsunday (MIW) coal mining

region has excellent accessibility to a variety of fishing pursuits In addition to the new net free zone ther are

five fresh water stocked impoundment fisheries creating opportunities to promote lake beach offshore and

deepwater angling Improvement of accommodation facilities quality of jetties access roads and coordinating

fish trails with regional events could maximise visitation from recreational and tourism markets (Mackay

Tourism Tourism Queensland 2012) Charter fishing operatiors tackle stores campsites motels boat sales

boat building and maintenance all have the opportunity of benefitted from growth from the recreational fishing

tourism industry (Lucas DLGP 2012)

Higher educationOver the past decade millions of international students have visited Queensland for our quality tertiary

institutions and enjoyable lifestyle International education is Queenslandrsquos biggest service export with

nearly $2431 million being generated in 2013ndash14 alone (Australian Government 2014) The majority

of Queensland is strategically located in the latitudinal tropical zone where at a global level more than

50 of the worldrsquos population is forecasted to live by 2050 (Australian Government 2015) This makes

Queenslandrsquos universities well placed to develop the partnerships and research innovations tailored to the

challenges and opportunities of the new tropically-oriented world This will help Queensland and especially

North Queensland to attract increasing levels of international students to be part of our high-quality tropical

research institutions These students will increase spending through tourism support the creation of our own

skilled and globally connected workforce and connect Australia to business networks and opportunities across

the world In 2013ndash14 the Cairns region benefitted to the tune of $1375 million from international students

(McGuiggan 2014) With the right policies these benefits already being experienced primarily in Cairns

Townsville and Brisbane can be spread further across Queensland to make international education a strong

economic driver in transitioning mining communities

Bio-industrial productsAs the world moves away from fossil fuels the demand for cleaner more sustainable fuel sources will grow

(Emissions 2014) By using excess organic matter produced through food production to develop bio-industrial

products Queensland has the potential to export clean and sustainable fuels and bio-plastic materials to the

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Tourism is about experiences not extraction It has the potential to share Queensland beauty with the rest of the world and create sustainable local economies in the process

Queenslandrsquos greatest resource is the minds of its people We can share and co-create our innovations and learning with students from all over the world who want to make Queensland the launch pad for their careers

JOBS AFTER COAL A Just Transition for Queensland | 19

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Sorghum fields

20 | JOBS AFTER COAL A Just Transition for Queensland

Queensland is well placed to develop biofuel products from waste and oil crops such as Pongamia and algae

in addition to using the statersquos advanced sugarcane industry to convert excess cane using efficient cellulosic

processes Recent scientific developments in bio-plastics at the University of Queensland show that as a

state Queensland has the skills and ability to build a bio-industrial products industry that can contribute to a

sustainable economic future (Queensland 2015)

Renewable energyQueensland the sunshine state has enormous potential to generate electricity from the sun wind and waves

in addition to many other abundant renewable energy sources (Green 2012) Renewable energy has for a long

time been the catch cry from environmentalists as the complete solution to creating the jobs necessary to

replace the fossil fuel industry This report has been written partially to show recognition that as much as

renewable energy has the potential to create more jobs and replace fossil fuel domestic energy production it

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Gemasolar solar thermal power station Spain

JOBS AFTER COAL A Just Transition for Queensland | 21

cannot completely replace all of the coal

export industry jobs Numerous studies

show that with strong climate policies

over 7100 jobs can be created in

Queensland through renewable energy

by 2030 (Institute 2011) Thousands of

these jobs will be in regional

Queensland These should be prioritised

for regions where the mining industry

has developed rural communities in

need of new economic opportunities Far

North Queensland is especially suited to

further renewable energy investment

because of its climatic conditions and

because of the expensive transmissions

losses from having energy wired from

southern power sources (Allen 2011)

This makes it essential that government

policy ensures that the fair share of the

$35 billion in potential renewable

energy investment goes to rural mining

communities not only where it is most

needed economically but where it

makes the most business sense

(Department of Employment 2009)

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Queensland has the potential to become a smart sunshine state powered by clean and sustainable renewable energy By doing this we will be creating jobs in rural mining communities where they are needed most and building a foundation for a new sustainable economy

22 | JOBS AFTER COAL A Just Transition for Queensland

4 Community transitions Global case studies

There are communities around the worldwhich have reinvented themselves after the end of coal mining and

developed prosperous economies in doing so It has been a struggle but where there is a level of government

support inspired local leadership and the community is working together to regenerate its economy it has

been possible (Coal 2015) We are not suggesting any of these examples can be directly transferred to

Queensland communities facing the end of coal mining The object of these case studies is not to provide a

blueprint for Mackay Gladstone Rockhampton or mining towns in Central Queensland but to show the

diversity of ideas that have worked in other places that might stimulate our local communities to reinvent

themselves too

Hazelwood coal power station La Trobe Valley Vic

JOBS AFTER COAL A Just Transition for Queensland | 23

La Trobe ValleyIn the brown coal producing region of the La Trobe Valley in Victoria a grassroots transitionary force has been

underway for the past fifteen years Earthworker was set up by union and climate change activists seeking a

real alternative to coal and privately owned business models Earthworker Cooperativersquos mission is to create

jobs that respond to the lsquochallenges of climate change and the need for local job creation by facilitating the

establishment of worker-owned cooperatives hellip in sustainability-focused industriesrsquo (Earthworker 2015)

Their current focus is the establishment of a cooperative producing solar hot water systems in partnership

with an existing business called lsquoEverlast Hydro Systemsrsquo Their goal is to take production to Morwell in the

La Trobe Valley where workers are in need of an alternative to the coal industry The unique cooperative model

has made selling arrangement possible through inserting the option to buy a solar hot water system through

enterprise bargaining agreements

BanwenThe DOVE workshop in Banwen South Wales (Dove 2015) was started by agroup of women who during

the 1984ndash85 coal minersrsquo strike decided that community-based education was the most practical path to

regenerate the local economy Setting up shop in an abandoned mine office they developed a series of adult

education workshops for women Three decades later the DOVE building hosts a diverse set of small-scale

entrepreneurs including a daycare a library a community garden and a cafeacute featuring local foods

OrkneyOrkney like Central Queensland is a relatively isolated place with a scattered population Situated at the

top of Scotland two hours from the mainland by ferry Orcadians like Central Queenslanders often feel

like spectators to what goes on in the rest of their country They also feel vulnerable to central government

decisions and are often irritated by the lack of understanding of island life on the part of distant authoritiesmdash

its particular customs dialect and ways of doing things Since Norse times Orkney islanders burned peat (a

very young form of coal) as their primary fuel source but all the peat has been dug up This traditional way

of life where each farming family had its own peat bank and spent long summer days cutting and drying

peats while sharing picnics as children played is gone Another non-renewable energy source North Sea oil

discovered in the 1970s brought positive and negatives for the island It turned the tide of depopulation but

like the peat banks the oil is depleting and another lsquoend of an erarsquo is approaching Orcadians have woken up

to the fact that they canrsquot continue to hark back to the past and are confronting the issues of a future without

fossil fuels

Over the last three decades European community funding has helped Orkney to equip itself for the green

energy revolution Orkney now plays a global role in the evolution of wave and tidal technologies and

significant research and development work is creating new employment opportunities A high school in

Stromness was converted into the European Marine Energy Centre and is now a world leader providing

developers the opportunity to test full-scale prototypes in the sea The worldrsquos largest single-rotor tidal turbine

24 | JOBS AFTER COAL A Just Transition for Queensland

was the first in Scotland to be connected to the national grid from this centre Marine energy combined with

an expansion of wind turbines means that the island is now self-sufficient in electricity These renewable

energy developments have created jobs in the Orkneys in civil works and erection grid connection and

communications (Stuart 2011)

Investment in renewable energy and its associated RampD has attracted people to live work and study on the

island Islanders used to have to leave to get tertiary education but it is now possible to study for an MSc in

renewable energy at a Heriot Watt University campus in Stromness A new generation of Orcadians have grown

up to see renewable energy as the way of the future something quite ldquonormalrdquo which will provide greater

opportunities for their children to stay on the island with genuine prospects for employment in meaningful

jobs requiring a wide range of skills and qualifications This shows what a community in transition to a low

carbon future can look like

Nord-Pas De CalaisUntil 1986 the north-east region of France Nord-pas de Calais was a major coal mining area It still boasts

huge twin tailings mountains the largest in Europe which have become a tourist attraction It is known

to Australians for the war cemeteries associated with the battle of the Somme in WW1 but it has recently

undergone a remarkable transformation towards a truly sustainable economy Old coal mines at Lens have

been transformed into an art gallery displaying works from the Louvre collection in Paris Hundreds of people

are trained in energy efficiency solar energy and green architecture at a new training centre in nearby Loos-

en-Gohelle

The Chamber of Commerce invited economist and social visionary Jeremy Rifkin of the TIR Consulting

Group and his chief economist Skip Laitner to apply their model of the third industrial revolution to the

district (Riftkin 2015) Rifkinrsquos Third Industrial Revolution combines renewable energy energy efficiency

and the connectivity of the internet Buildings are energy generators and hydrogen is used as energy storage

After working with the community for some time the Master Plan was published in 2013 and envisages

that 100000 new jobs can be created by the transition plan (LLC 2013) Certainly the population has not

declined since mining days and has even slightly increased Inspired local leadership was the key in this

community plus some outside funding to help with the underpinning research

Appalachia (Kentucky)The transition process is just starting here but the community is very organised Kentuckians For The

Commonwealth has been battling the negative effects of coal mining for some decades and is now planning a

transition to ldquobuilding a better future beyond coalrdquo (Commonwealth 2015) Last year they held a conference

in Harlan Kentucky right in the middle of the Appalachian coal fields and invited guests from other US

regions in the same position as well as from Wales It is too soon to see what the outcome of their learning

process will be but they are another example of a community taking its future into its own handsmdashoptimistic

that there is a better future after coal

JOBS AFTER COAL A Just Transition for Queensland | 25

5 A just transition for coal mining communities policy recommendations

The opportunities to transition from unsustainable coal mining to prosperous communities with decent

employment will not just materialise by themselves It will need the political will and the right incentives to

ensure that communities are not left fending for themselves with unemployment increasing and families

in need of long-term welfare But not only is the political will not currently there both major political

parties continue to support the expansion of this sunset industry and by doing so are making the transition

challenges progressively more difficult (Denniss 2012) For too many years governments have uncritically

supported the coal mining sector Entire government departments have been focused on facilitating mining

with tax incentives weakening assessment and approval processes along with providing through tax payer

money established industrial infrastructure to support new projects Government policy often seeks to grow

royalties income by supporting the extraction of as much coal as possible as an escape the challenge of

finding other ways to increase state revenue New sustainable industries in coal communities will need just as

much if not more support while it gets started

We propose that communities local businesses workers unions community groups environment groups

local government and state and federal governments all need to be involved in planning a transition to

alternative forms of economic development and providing new jobs We call this a Just Transition (Anthea

Bill amp Evans1 2008 Brecher 2012) Just Transition is a framework for a fair and sustainable shift to a low

carbon economy proposed by trade unions and supported by environmental NGOs A Just Transition holds

that a shift to a lower carbon economy is vital to avoid dangerous climate change

Bimblebox Nature Refuge

26 | JOBS AFTER COAL A Just Transition for Queensland

Tough targets to cut greenhouse pollution supported by new environmental regulations and emerging carbon

markets will transform the global economy over the next decade These shifts will have major implications

for working people in energy supply industry and transport and for everyone as consumers There is a concern

that significant periods of economic restructuring in the past have often happened in a chaotic fashion

leaving ordinary workers along with their families and communities to bear the brunt of the transition to

new ways of producing wealth A just transition seeks to prevent such injustice becoming a feature of this

transition suggesting that it would not only be morally wrong and socially damaging but would undermine the

credibility of the transition itself and could slow or even halt the changes that must be made

It is through the challenges of communicating the urgency of climate change and other social and

environmental impacts that much of the debate about coal and its consequences for land water and the

climate has become unnecessarily adversarial and polarised Coal mining and power generation communities

deserve acknowledgement and appreciation for all that they have historically and currently contributed to

our country and our economy In communicating the economic shifts that are taking place and facilitating

the necessary transitions the Australian community needs to be respectful of the history and identity of coal

communities Environment groups government unions and the community need to initiate and engage in

the discussions about transitions in an open honest and compassionate manner Only by approaching the

transition in this way can the adversarial nature of the debate be broken down to make way for transformative

mutually respectful and holistic solutions

Whitsundays lsquoHave a Heart for the Reefrsquo

JOBS AFTER COAL A Just Transition for Queensland | 27

A just transition recognises that support for policies are conditional on a fair distribution of the costs and

benefits of those policies across the economy A just transition should also recognise that the creation of

opportunities for active engagement by those affected in determining the future wellbeing of themselves

and their families is essential for the long term empowerment of citizens and communities The following

recommendations have been written with the aim of emphasising such community empowerment as a priority

Recommendations

1) Establishing a unit within the State Government to support coal mining regions to transition to new economies

Specific institutions are needed to develop transition plans They need to have strong government support

and funding regional offices and representation from diverse stakeholders A dedicated unit within the

Department of Infrastructure Local Government and Planning could be established to oversee this work

They could work on the ground in the main coal mining communities to bring government expertise into

regional entities that would develop local plans that involve and empower the whole community This unit

or a connected unit would analyse existing barriers to the creation of competitive advantages for alternative

sustainable industries and would identify actions the State Government can take to support such creation

Any policy and support should come with clear conditions and timeframes These regional entities would

need generous budgets to assist local groups to develop their transition strategies to support research re-

training and the development of new business and community start-up initiatives based on the needs and

strategies of communities The key to communities becoming economically resilient is high levels of autonomy

and freedom in shaping their economic futures Research funding available to the regional entities will be

essential to the empowerment of local leadership Research funding should at least reach the OECD research

funding average and it should prioritise low carbon technologies and industry sectors with increased triple

bottom line sustainability potential

2) Support community leadership in diversifying local economies through the establishment of democratic regional entities

In each mining community a group of traditional and non-traditional community leaders willing to think

beyond lsquoBusiness as Usualrsquo to imagine a better future could be called together to work in collaboration with

and be resourced by the state government managed regional entities mentioned in recommendation one

The leaders would come from diverse backgrounds such as from local governments business associations

unions farming groups renewable energy businesses and educational institutions The objectives of these

leadership groups would be tailored to each community The objectives would in broad terms be to increase

employment in new diverse industries based on sustainable production and publicservice sector job creation

Expert facilitation alongside inclusive and democratic community engagement initiatives would be essential

to ensure the process and environment for creativity and innovation is maximised To develop such groups

it would be necessary to take stock of the existing resources skills and successful businesses on which a

new future can be built In addition an analysis of the social environmental and economic needs of the

28 | JOBS AFTER COAL A Just Transition for Queensland

community would also be beneficial These groups could then establish economic diversification projects

including value-added local production worker controlled co-operative enterprises and new community-

based enterprises that economically empower the local community Activities may also include support for

alternative industries in regard to process restructuring or subsidising the wages of workers displaced from

higher paying traditional industries

3) Support researching and communicating how the just transition can take place

Consistent research is needed on the best options to support the state and national economies to transition

This requires ongoing situational analysis of the global energy market shifts at both government levels In

addition each mining region will need assistance to research the number of jobs that are dependent on coal

the skills of those employed the level of local national and global long- and short-term risk to local mining

operations the transferability of jobs to other industries local opportunities for new enterprises and their

needs and the local educational and training needs and resources A key issue requiring research will be

around how the transitition scenarios differ depending on the level and relativity of thermal and coking coal

industries across coal mining communities The process for sourcing this information at a local and state

government level should be integrated into a policy feedback loop to support cyclical situational analysis and

policy adjustments from all levels of government This research should take place at the state level and be

encouraged at the industry and local level through grants

Mackay Central Queensland

JOBS AFTER COAL A Just Transition for Queensland | 29

4) Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

Many existing Queensland industries including those not highlighted in this report have the potential to

carry Queensland towards a new sustainable economy [sC5]mdashbut they will need support to do so Instead

of continuing to support and lower costs for the coal mining industry we need a plan to grow competitive

advantage across industries that have potential for sustainability and growth in regional mining communities

Along with industry and community organisations the State Government could organise a State Economic

Summit to assess existing industry clusters identify the potential of new and emerging industries consider

their competitiveness and key capabilities and identify barriers to increasing competitive advantage The

findings and recommendations from this Summit could be used to inform the work of the Unit established in

bullet point one above and the research outlined in bullet point two

5) Provide social protection of workers their families and incomes

If mines close suddenly workers need protection for their incomes and social services and possible relocation

even though many miners these days do not live in the communities where they mine Ideally these transition

plans would be developed early enough to ensure that new employment opportunities are in place for them

before mines actually close For many workers this is already too late but if the process begins now there will

be choices available for future retrenched coal workers who live in mining communities and regions Mining

companies could be incentivised andor penalised to give adequate notice to workers and other stakeholders

that closure may be impending and alternative economic opportunities need to be developed

6) Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

Involving the relevant unions in the planning of community transitions can enable them to move towards

becoming more proactive agents helping to plan the transition with critical networks and specific knowledge

about the needs of their members When a coal-fired power station in Washington State USA was scheduled

for closure for environmental reasons unions played a pivotal role persuading environmentalists and others

to delay the closure long enough for a Just Transition to provide different jobs for the workers This made it

possible for the coal resource to be replaced by wind and other renewable generation rather than natural

gasmdasha better environmental outcome and the unions became an active part in the phase out planning

Unions have a heavy workload defending workers rights and pay They need to be supported and financed to

play important roles in community transitions From facilitation and leadership of planning bodies career

planning and advice preferential hiring for displaced workers in the new alternative emerging industries and

leading the establishment of work controlled cooperatives unions have an essential role to play

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

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ABC Online (2014) Coal lsquogood for humanityrsquo Prime Minister Tony Abbott says at $39b Queensland mine opening httpwwwabcnetaunews2014-10-13coal-is-good-for-humanity-pm-tony-abbott-says5810244 Retrieved 10th of November 2015

After Coal (2015) Community Regeneration West Virginia United States httpaftercoalcomengage-your-community Retrieved 10th of November 2015

Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

Arabella Advisors (2015) Measuring the Growth of the Global Fossil Fuel Divestment and Clean Energy Investment Movement httpwwwarabellaadvisorscomwp-contentuploads201509Measuring-the-Growth-of-the-Divestment-Movementpdf Retrieved 10th of November 2015

Australian Bureau of Statistics (2014) Australian National Accounts State Accounts 2012ndash13 Canberra Australia Retrieved 10th of November 2015

Australian Bureau of Statistics (2015) MackaymdashCensus Employment by IndustrymdashTime Series Australian Government Department of Employment Retrieved 10th of November 2015

Australian Government Department for Education and Training (2015) Draft National Strategy for International Education Canberra Australian Capital Territory Retrieved 10th of November 2015

Australian Government (2014) Export income to Australia from international education activity in 2013ndash14 Canberra Australia Retrieved 10th of November 2015

BHP Billiton (2013) Coal Briefing httpwwwbhpbillitoncom~mediabhpdocumentsinvestorsreports2013130529_coalbriefingpdf Retrieved 10th of November 2015

Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

Beyond Zero Emissions (2012) Laggard to Leader How Australia Can Lead the World to Zero Carbon Prosperity Melbourne University Melbourne Victoria Retrieved 10th of November 2015

Beyond Zero Emissions (2014) A Fossil Economy in a Changing World Melbourne University Melbourne Victoria httpmediabzeorgaufossileconomyFossilEconomypdf Retrieved 10th of November 2015

Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

One Million Climate Job Campaign (2015) About London United Kingdom httpclimatejobsorgzaabout Retrieved 10th of November 2015

Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 29: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

JOBS AFTER COAL A Just Transition for Queensland | 19

world for generations to come This economic opportunity is uniquely important because it is the mining regions

that have some of the greatest potential to capitalise on it and create new jobs by doing so In recent years

the bio-plastics sector has grown to make up 10ndash15 of the global plastics industry Unfortunately despite

its massive potential Queensland is still not yet involved in this industry at a significant level (Queensland

Government 2010) This is despite several modeled projects that indicate the potential contribution to

Queensland economy is estimated to be $18 billion annually creating 6 640 jobs by 2035 (Deloitte Access

Economics 2014) This is such a potentially lucrative industry that investment to fuel this growth given the

enough initial government support to build momentum can come from the private sector

The bio masse (feedstock) used to create bio-based products are readily available in the MIW regions

Agricultural bio waste and non food feedstock is an area where MIW can lead internationally with licensing

and technology development the access to a skilled workforce research infrastructure stable government

natural assets strong regulatory system and close vicinity to Asia being local advantages The transition

from research and development in the laboratory to pilot plants to commercial development is slowly taking

place At the Furfural Plant at the Proserpine Sugar Mill and at the QUT Mackay Renewable Bio-commodities

centre pilot plants are in operation (Department of Employment Economic Development and Innovation

2010) The bio-technology provides the opportunity to value add to the agricultural and forestry sectors in

feedstock supply Manufacturing nearby full scale plants could potentially benefit in the production of fuel

pharmaceutical and construction products that compliment bio based chemicals and liquids created (Deloitte

Access Economics 2014)

Sorghum fields

20 | JOBS AFTER COAL A Just Transition for Queensland

Queensland is well placed to develop biofuel products from waste and oil crops such as Pongamia and algae

in addition to using the statersquos advanced sugarcane industry to convert excess cane using efficient cellulosic

processes Recent scientific developments in bio-plastics at the University of Queensland show that as a

state Queensland has the skills and ability to build a bio-industrial products industry that can contribute to a

sustainable economic future (Queensland 2015)

Renewable energyQueensland the sunshine state has enormous potential to generate electricity from the sun wind and waves

in addition to many other abundant renewable energy sources (Green 2012) Renewable energy has for a long

time been the catch cry from environmentalists as the complete solution to creating the jobs necessary to

replace the fossil fuel industry This report has been written partially to show recognition that as much as

renewable energy has the potential to create more jobs and replace fossil fuel domestic energy production it

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Gemasolar solar thermal power station Spain

JOBS AFTER COAL A Just Transition for Queensland | 21

cannot completely replace all of the coal

export industry jobs Numerous studies

show that with strong climate policies

over 7100 jobs can be created in

Queensland through renewable energy

by 2030 (Institute 2011) Thousands of

these jobs will be in regional

Queensland These should be prioritised

for regions where the mining industry

has developed rural communities in

need of new economic opportunities Far

North Queensland is especially suited to

further renewable energy investment

because of its climatic conditions and

because of the expensive transmissions

losses from having energy wired from

southern power sources (Allen 2011)

This makes it essential that government

policy ensures that the fair share of the

$35 billion in potential renewable

energy investment goes to rural mining

communities not only where it is most

needed economically but where it

makes the most business sense

(Department of Employment 2009)

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Queensland has the potential to become a smart sunshine state powered by clean and sustainable renewable energy By doing this we will be creating jobs in rural mining communities where they are needed most and building a foundation for a new sustainable economy

22 | JOBS AFTER COAL A Just Transition for Queensland

4 Community transitions Global case studies

There are communities around the worldwhich have reinvented themselves after the end of coal mining and

developed prosperous economies in doing so It has been a struggle but where there is a level of government

support inspired local leadership and the community is working together to regenerate its economy it has

been possible (Coal 2015) We are not suggesting any of these examples can be directly transferred to

Queensland communities facing the end of coal mining The object of these case studies is not to provide a

blueprint for Mackay Gladstone Rockhampton or mining towns in Central Queensland but to show the

diversity of ideas that have worked in other places that might stimulate our local communities to reinvent

themselves too

Hazelwood coal power station La Trobe Valley Vic

JOBS AFTER COAL A Just Transition for Queensland | 23

La Trobe ValleyIn the brown coal producing region of the La Trobe Valley in Victoria a grassroots transitionary force has been

underway for the past fifteen years Earthworker was set up by union and climate change activists seeking a

real alternative to coal and privately owned business models Earthworker Cooperativersquos mission is to create

jobs that respond to the lsquochallenges of climate change and the need for local job creation by facilitating the

establishment of worker-owned cooperatives hellip in sustainability-focused industriesrsquo (Earthworker 2015)

Their current focus is the establishment of a cooperative producing solar hot water systems in partnership

with an existing business called lsquoEverlast Hydro Systemsrsquo Their goal is to take production to Morwell in the

La Trobe Valley where workers are in need of an alternative to the coal industry The unique cooperative model

has made selling arrangement possible through inserting the option to buy a solar hot water system through

enterprise bargaining agreements

BanwenThe DOVE workshop in Banwen South Wales (Dove 2015) was started by agroup of women who during

the 1984ndash85 coal minersrsquo strike decided that community-based education was the most practical path to

regenerate the local economy Setting up shop in an abandoned mine office they developed a series of adult

education workshops for women Three decades later the DOVE building hosts a diverse set of small-scale

entrepreneurs including a daycare a library a community garden and a cafeacute featuring local foods

OrkneyOrkney like Central Queensland is a relatively isolated place with a scattered population Situated at the

top of Scotland two hours from the mainland by ferry Orcadians like Central Queenslanders often feel

like spectators to what goes on in the rest of their country They also feel vulnerable to central government

decisions and are often irritated by the lack of understanding of island life on the part of distant authoritiesmdash

its particular customs dialect and ways of doing things Since Norse times Orkney islanders burned peat (a

very young form of coal) as their primary fuel source but all the peat has been dug up This traditional way

of life where each farming family had its own peat bank and spent long summer days cutting and drying

peats while sharing picnics as children played is gone Another non-renewable energy source North Sea oil

discovered in the 1970s brought positive and negatives for the island It turned the tide of depopulation but

like the peat banks the oil is depleting and another lsquoend of an erarsquo is approaching Orcadians have woken up

to the fact that they canrsquot continue to hark back to the past and are confronting the issues of a future without

fossil fuels

Over the last three decades European community funding has helped Orkney to equip itself for the green

energy revolution Orkney now plays a global role in the evolution of wave and tidal technologies and

significant research and development work is creating new employment opportunities A high school in

Stromness was converted into the European Marine Energy Centre and is now a world leader providing

developers the opportunity to test full-scale prototypes in the sea The worldrsquos largest single-rotor tidal turbine

24 | JOBS AFTER COAL A Just Transition for Queensland

was the first in Scotland to be connected to the national grid from this centre Marine energy combined with

an expansion of wind turbines means that the island is now self-sufficient in electricity These renewable

energy developments have created jobs in the Orkneys in civil works and erection grid connection and

communications (Stuart 2011)

Investment in renewable energy and its associated RampD has attracted people to live work and study on the

island Islanders used to have to leave to get tertiary education but it is now possible to study for an MSc in

renewable energy at a Heriot Watt University campus in Stromness A new generation of Orcadians have grown

up to see renewable energy as the way of the future something quite ldquonormalrdquo which will provide greater

opportunities for their children to stay on the island with genuine prospects for employment in meaningful

jobs requiring a wide range of skills and qualifications This shows what a community in transition to a low

carbon future can look like

Nord-Pas De CalaisUntil 1986 the north-east region of France Nord-pas de Calais was a major coal mining area It still boasts

huge twin tailings mountains the largest in Europe which have become a tourist attraction It is known

to Australians for the war cemeteries associated with the battle of the Somme in WW1 but it has recently

undergone a remarkable transformation towards a truly sustainable economy Old coal mines at Lens have

been transformed into an art gallery displaying works from the Louvre collection in Paris Hundreds of people

are trained in energy efficiency solar energy and green architecture at a new training centre in nearby Loos-

en-Gohelle

The Chamber of Commerce invited economist and social visionary Jeremy Rifkin of the TIR Consulting

Group and his chief economist Skip Laitner to apply their model of the third industrial revolution to the

district (Riftkin 2015) Rifkinrsquos Third Industrial Revolution combines renewable energy energy efficiency

and the connectivity of the internet Buildings are energy generators and hydrogen is used as energy storage

After working with the community for some time the Master Plan was published in 2013 and envisages

that 100000 new jobs can be created by the transition plan (LLC 2013) Certainly the population has not

declined since mining days and has even slightly increased Inspired local leadership was the key in this

community plus some outside funding to help with the underpinning research

Appalachia (Kentucky)The transition process is just starting here but the community is very organised Kentuckians For The

Commonwealth has been battling the negative effects of coal mining for some decades and is now planning a

transition to ldquobuilding a better future beyond coalrdquo (Commonwealth 2015) Last year they held a conference

in Harlan Kentucky right in the middle of the Appalachian coal fields and invited guests from other US

regions in the same position as well as from Wales It is too soon to see what the outcome of their learning

process will be but they are another example of a community taking its future into its own handsmdashoptimistic

that there is a better future after coal

JOBS AFTER COAL A Just Transition for Queensland | 25

5 A just transition for coal mining communities policy recommendations

The opportunities to transition from unsustainable coal mining to prosperous communities with decent

employment will not just materialise by themselves It will need the political will and the right incentives to

ensure that communities are not left fending for themselves with unemployment increasing and families

in need of long-term welfare But not only is the political will not currently there both major political

parties continue to support the expansion of this sunset industry and by doing so are making the transition

challenges progressively more difficult (Denniss 2012) For too many years governments have uncritically

supported the coal mining sector Entire government departments have been focused on facilitating mining

with tax incentives weakening assessment and approval processes along with providing through tax payer

money established industrial infrastructure to support new projects Government policy often seeks to grow

royalties income by supporting the extraction of as much coal as possible as an escape the challenge of

finding other ways to increase state revenue New sustainable industries in coal communities will need just as

much if not more support while it gets started

We propose that communities local businesses workers unions community groups environment groups

local government and state and federal governments all need to be involved in planning a transition to

alternative forms of economic development and providing new jobs We call this a Just Transition (Anthea

Bill amp Evans1 2008 Brecher 2012) Just Transition is a framework for a fair and sustainable shift to a low

carbon economy proposed by trade unions and supported by environmental NGOs A Just Transition holds

that a shift to a lower carbon economy is vital to avoid dangerous climate change

Bimblebox Nature Refuge

26 | JOBS AFTER COAL A Just Transition for Queensland

Tough targets to cut greenhouse pollution supported by new environmental regulations and emerging carbon

markets will transform the global economy over the next decade These shifts will have major implications

for working people in energy supply industry and transport and for everyone as consumers There is a concern

that significant periods of economic restructuring in the past have often happened in a chaotic fashion

leaving ordinary workers along with their families and communities to bear the brunt of the transition to

new ways of producing wealth A just transition seeks to prevent such injustice becoming a feature of this

transition suggesting that it would not only be morally wrong and socially damaging but would undermine the

credibility of the transition itself and could slow or even halt the changes that must be made

It is through the challenges of communicating the urgency of climate change and other social and

environmental impacts that much of the debate about coal and its consequences for land water and the

climate has become unnecessarily adversarial and polarised Coal mining and power generation communities

deserve acknowledgement and appreciation for all that they have historically and currently contributed to

our country and our economy In communicating the economic shifts that are taking place and facilitating

the necessary transitions the Australian community needs to be respectful of the history and identity of coal

communities Environment groups government unions and the community need to initiate and engage in

the discussions about transitions in an open honest and compassionate manner Only by approaching the

transition in this way can the adversarial nature of the debate be broken down to make way for transformative

mutually respectful and holistic solutions

Whitsundays lsquoHave a Heart for the Reefrsquo

JOBS AFTER COAL A Just Transition for Queensland | 27

A just transition recognises that support for policies are conditional on a fair distribution of the costs and

benefits of those policies across the economy A just transition should also recognise that the creation of

opportunities for active engagement by those affected in determining the future wellbeing of themselves

and their families is essential for the long term empowerment of citizens and communities The following

recommendations have been written with the aim of emphasising such community empowerment as a priority

Recommendations

1) Establishing a unit within the State Government to support coal mining regions to transition to new economies

Specific institutions are needed to develop transition plans They need to have strong government support

and funding regional offices and representation from diverse stakeholders A dedicated unit within the

Department of Infrastructure Local Government and Planning could be established to oversee this work

They could work on the ground in the main coal mining communities to bring government expertise into

regional entities that would develop local plans that involve and empower the whole community This unit

or a connected unit would analyse existing barriers to the creation of competitive advantages for alternative

sustainable industries and would identify actions the State Government can take to support such creation

Any policy and support should come with clear conditions and timeframes These regional entities would

need generous budgets to assist local groups to develop their transition strategies to support research re-

training and the development of new business and community start-up initiatives based on the needs and

strategies of communities The key to communities becoming economically resilient is high levels of autonomy

and freedom in shaping their economic futures Research funding available to the regional entities will be

essential to the empowerment of local leadership Research funding should at least reach the OECD research

funding average and it should prioritise low carbon technologies and industry sectors with increased triple

bottom line sustainability potential

2) Support community leadership in diversifying local economies through the establishment of democratic regional entities

In each mining community a group of traditional and non-traditional community leaders willing to think

beyond lsquoBusiness as Usualrsquo to imagine a better future could be called together to work in collaboration with

and be resourced by the state government managed regional entities mentioned in recommendation one

The leaders would come from diverse backgrounds such as from local governments business associations

unions farming groups renewable energy businesses and educational institutions The objectives of these

leadership groups would be tailored to each community The objectives would in broad terms be to increase

employment in new diverse industries based on sustainable production and publicservice sector job creation

Expert facilitation alongside inclusive and democratic community engagement initiatives would be essential

to ensure the process and environment for creativity and innovation is maximised To develop such groups

it would be necessary to take stock of the existing resources skills and successful businesses on which a

new future can be built In addition an analysis of the social environmental and economic needs of the

28 | JOBS AFTER COAL A Just Transition for Queensland

community would also be beneficial These groups could then establish economic diversification projects

including value-added local production worker controlled co-operative enterprises and new community-

based enterprises that economically empower the local community Activities may also include support for

alternative industries in regard to process restructuring or subsidising the wages of workers displaced from

higher paying traditional industries

3) Support researching and communicating how the just transition can take place

Consistent research is needed on the best options to support the state and national economies to transition

This requires ongoing situational analysis of the global energy market shifts at both government levels In

addition each mining region will need assistance to research the number of jobs that are dependent on coal

the skills of those employed the level of local national and global long- and short-term risk to local mining

operations the transferability of jobs to other industries local opportunities for new enterprises and their

needs and the local educational and training needs and resources A key issue requiring research will be

around how the transitition scenarios differ depending on the level and relativity of thermal and coking coal

industries across coal mining communities The process for sourcing this information at a local and state

government level should be integrated into a policy feedback loop to support cyclical situational analysis and

policy adjustments from all levels of government This research should take place at the state level and be

encouraged at the industry and local level through grants

Mackay Central Queensland

JOBS AFTER COAL A Just Transition for Queensland | 29

4) Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

Many existing Queensland industries including those not highlighted in this report have the potential to

carry Queensland towards a new sustainable economy [sC5]mdashbut they will need support to do so Instead

of continuing to support and lower costs for the coal mining industry we need a plan to grow competitive

advantage across industries that have potential for sustainability and growth in regional mining communities

Along with industry and community organisations the State Government could organise a State Economic

Summit to assess existing industry clusters identify the potential of new and emerging industries consider

their competitiveness and key capabilities and identify barriers to increasing competitive advantage The

findings and recommendations from this Summit could be used to inform the work of the Unit established in

bullet point one above and the research outlined in bullet point two

5) Provide social protection of workers their families and incomes

If mines close suddenly workers need protection for their incomes and social services and possible relocation

even though many miners these days do not live in the communities where they mine Ideally these transition

plans would be developed early enough to ensure that new employment opportunities are in place for them

before mines actually close For many workers this is already too late but if the process begins now there will

be choices available for future retrenched coal workers who live in mining communities and regions Mining

companies could be incentivised andor penalised to give adequate notice to workers and other stakeholders

that closure may be impending and alternative economic opportunities need to be developed

6) Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

Involving the relevant unions in the planning of community transitions can enable them to move towards

becoming more proactive agents helping to plan the transition with critical networks and specific knowledge

about the needs of their members When a coal-fired power station in Washington State USA was scheduled

for closure for environmental reasons unions played a pivotal role persuading environmentalists and others

to delay the closure long enough for a Just Transition to provide different jobs for the workers This made it

possible for the coal resource to be replaced by wind and other renewable generation rather than natural

gasmdasha better environmental outcome and the unions became an active part in the phase out planning

Unions have a heavy workload defending workers rights and pay They need to be supported and financed to

play important roles in community transitions From facilitation and leadership of planning bodies career

planning and advice preferential hiring for displaced workers in the new alternative emerging industries and

leading the establishment of work controlled cooperatives unions have an essential role to play

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

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After Coal (2015) Community Regeneration West Virginia United States httpaftercoalcomengage-your-community Retrieved 10th of November 2015

Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

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Australian Bureau of Statistics (2014) Australian National Accounts State Accounts 2012ndash13 Canberra Australia Retrieved 10th of November 2015

Australian Bureau of Statistics (2015) MackaymdashCensus Employment by IndustrymdashTime Series Australian Government Department of Employment Retrieved 10th of November 2015

Australian Government Department for Education and Training (2015) Draft National Strategy for International Education Canberra Australian Capital Territory Retrieved 10th of November 2015

Australian Government (2014) Export income to Australia from international education activity in 2013ndash14 Canberra Australia Retrieved 10th of November 2015

BHP Billiton (2013) Coal Briefing httpwwwbhpbillitoncom~mediabhpdocumentsinvestorsreports2013130529_coalbriefingpdf Retrieved 10th of November 2015

Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

Beyond Zero Emissions (2012) Laggard to Leader How Australia Can Lead the World to Zero Carbon Prosperity Melbourne University Melbourne Victoria Retrieved 10th of November 2015

Beyond Zero Emissions (2014) A Fossil Economy in a Changing World Melbourne University Melbourne Victoria httpmediabzeorgaufossileconomyFossilEconomypdf Retrieved 10th of November 2015

Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

One Million Climate Job Campaign (2015) About London United Kingdom httpclimatejobsorgzaabout Retrieved 10th of November 2015

Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 30: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

20 | JOBS AFTER COAL A Just Transition for Queensland

Queensland is well placed to develop biofuel products from waste and oil crops such as Pongamia and algae

in addition to using the statersquos advanced sugarcane industry to convert excess cane using efficient cellulosic

processes Recent scientific developments in bio-plastics at the University of Queensland show that as a

state Queensland has the skills and ability to build a bio-industrial products industry that can contribute to a

sustainable economic future (Queensland 2015)

Renewable energyQueensland the sunshine state has enormous potential to generate electricity from the sun wind and waves

in addition to many other abundant renewable energy sources (Green 2012) Renewable energy has for a long

time been the catch cry from environmentalists as the complete solution to creating the jobs necessary to

replace the fossil fuel industry This report has been written partially to show recognition that as much as

renewable energy has the potential to create more jobs and replace fossil fuel domestic energy production it

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Gemasolar solar thermal power station Spain

JOBS AFTER COAL A Just Transition for Queensland | 21

cannot completely replace all of the coal

export industry jobs Numerous studies

show that with strong climate policies

over 7100 jobs can be created in

Queensland through renewable energy

by 2030 (Institute 2011) Thousands of

these jobs will be in regional

Queensland These should be prioritised

for regions where the mining industry

has developed rural communities in

need of new economic opportunities Far

North Queensland is especially suited to

further renewable energy investment

because of its climatic conditions and

because of the expensive transmissions

losses from having energy wired from

southern power sources (Allen 2011)

This makes it essential that government

policy ensures that the fair share of the

$35 billion in potential renewable

energy investment goes to rural mining

communities not only where it is most

needed economically but where it

makes the most business sense

(Department of Employment 2009)

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Queensland has the potential to become a smart sunshine state powered by clean and sustainable renewable energy By doing this we will be creating jobs in rural mining communities where they are needed most and building a foundation for a new sustainable economy

22 | JOBS AFTER COAL A Just Transition for Queensland

4 Community transitions Global case studies

There are communities around the worldwhich have reinvented themselves after the end of coal mining and

developed prosperous economies in doing so It has been a struggle but where there is a level of government

support inspired local leadership and the community is working together to regenerate its economy it has

been possible (Coal 2015) We are not suggesting any of these examples can be directly transferred to

Queensland communities facing the end of coal mining The object of these case studies is not to provide a

blueprint for Mackay Gladstone Rockhampton or mining towns in Central Queensland but to show the

diversity of ideas that have worked in other places that might stimulate our local communities to reinvent

themselves too

Hazelwood coal power station La Trobe Valley Vic

JOBS AFTER COAL A Just Transition for Queensland | 23

La Trobe ValleyIn the brown coal producing region of the La Trobe Valley in Victoria a grassroots transitionary force has been

underway for the past fifteen years Earthworker was set up by union and climate change activists seeking a

real alternative to coal and privately owned business models Earthworker Cooperativersquos mission is to create

jobs that respond to the lsquochallenges of climate change and the need for local job creation by facilitating the

establishment of worker-owned cooperatives hellip in sustainability-focused industriesrsquo (Earthworker 2015)

Their current focus is the establishment of a cooperative producing solar hot water systems in partnership

with an existing business called lsquoEverlast Hydro Systemsrsquo Their goal is to take production to Morwell in the

La Trobe Valley where workers are in need of an alternative to the coal industry The unique cooperative model

has made selling arrangement possible through inserting the option to buy a solar hot water system through

enterprise bargaining agreements

BanwenThe DOVE workshop in Banwen South Wales (Dove 2015) was started by agroup of women who during

the 1984ndash85 coal minersrsquo strike decided that community-based education was the most practical path to

regenerate the local economy Setting up shop in an abandoned mine office they developed a series of adult

education workshops for women Three decades later the DOVE building hosts a diverse set of small-scale

entrepreneurs including a daycare a library a community garden and a cafeacute featuring local foods

OrkneyOrkney like Central Queensland is a relatively isolated place with a scattered population Situated at the

top of Scotland two hours from the mainland by ferry Orcadians like Central Queenslanders often feel

like spectators to what goes on in the rest of their country They also feel vulnerable to central government

decisions and are often irritated by the lack of understanding of island life on the part of distant authoritiesmdash

its particular customs dialect and ways of doing things Since Norse times Orkney islanders burned peat (a

very young form of coal) as their primary fuel source but all the peat has been dug up This traditional way

of life where each farming family had its own peat bank and spent long summer days cutting and drying

peats while sharing picnics as children played is gone Another non-renewable energy source North Sea oil

discovered in the 1970s brought positive and negatives for the island It turned the tide of depopulation but

like the peat banks the oil is depleting and another lsquoend of an erarsquo is approaching Orcadians have woken up

to the fact that they canrsquot continue to hark back to the past and are confronting the issues of a future without

fossil fuels

Over the last three decades European community funding has helped Orkney to equip itself for the green

energy revolution Orkney now plays a global role in the evolution of wave and tidal technologies and

significant research and development work is creating new employment opportunities A high school in

Stromness was converted into the European Marine Energy Centre and is now a world leader providing

developers the opportunity to test full-scale prototypes in the sea The worldrsquos largest single-rotor tidal turbine

24 | JOBS AFTER COAL A Just Transition for Queensland

was the first in Scotland to be connected to the national grid from this centre Marine energy combined with

an expansion of wind turbines means that the island is now self-sufficient in electricity These renewable

energy developments have created jobs in the Orkneys in civil works and erection grid connection and

communications (Stuart 2011)

Investment in renewable energy and its associated RampD has attracted people to live work and study on the

island Islanders used to have to leave to get tertiary education but it is now possible to study for an MSc in

renewable energy at a Heriot Watt University campus in Stromness A new generation of Orcadians have grown

up to see renewable energy as the way of the future something quite ldquonormalrdquo which will provide greater

opportunities for their children to stay on the island with genuine prospects for employment in meaningful

jobs requiring a wide range of skills and qualifications This shows what a community in transition to a low

carbon future can look like

Nord-Pas De CalaisUntil 1986 the north-east region of France Nord-pas de Calais was a major coal mining area It still boasts

huge twin tailings mountains the largest in Europe which have become a tourist attraction It is known

to Australians for the war cemeteries associated with the battle of the Somme in WW1 but it has recently

undergone a remarkable transformation towards a truly sustainable economy Old coal mines at Lens have

been transformed into an art gallery displaying works from the Louvre collection in Paris Hundreds of people

are trained in energy efficiency solar energy and green architecture at a new training centre in nearby Loos-

en-Gohelle

The Chamber of Commerce invited economist and social visionary Jeremy Rifkin of the TIR Consulting

Group and his chief economist Skip Laitner to apply their model of the third industrial revolution to the

district (Riftkin 2015) Rifkinrsquos Third Industrial Revolution combines renewable energy energy efficiency

and the connectivity of the internet Buildings are energy generators and hydrogen is used as energy storage

After working with the community for some time the Master Plan was published in 2013 and envisages

that 100000 new jobs can be created by the transition plan (LLC 2013) Certainly the population has not

declined since mining days and has even slightly increased Inspired local leadership was the key in this

community plus some outside funding to help with the underpinning research

Appalachia (Kentucky)The transition process is just starting here but the community is very organised Kentuckians For The

Commonwealth has been battling the negative effects of coal mining for some decades and is now planning a

transition to ldquobuilding a better future beyond coalrdquo (Commonwealth 2015) Last year they held a conference

in Harlan Kentucky right in the middle of the Appalachian coal fields and invited guests from other US

regions in the same position as well as from Wales It is too soon to see what the outcome of their learning

process will be but they are another example of a community taking its future into its own handsmdashoptimistic

that there is a better future after coal

JOBS AFTER COAL A Just Transition for Queensland | 25

5 A just transition for coal mining communities policy recommendations

The opportunities to transition from unsustainable coal mining to prosperous communities with decent

employment will not just materialise by themselves It will need the political will and the right incentives to

ensure that communities are not left fending for themselves with unemployment increasing and families

in need of long-term welfare But not only is the political will not currently there both major political

parties continue to support the expansion of this sunset industry and by doing so are making the transition

challenges progressively more difficult (Denniss 2012) For too many years governments have uncritically

supported the coal mining sector Entire government departments have been focused on facilitating mining

with tax incentives weakening assessment and approval processes along with providing through tax payer

money established industrial infrastructure to support new projects Government policy often seeks to grow

royalties income by supporting the extraction of as much coal as possible as an escape the challenge of

finding other ways to increase state revenue New sustainable industries in coal communities will need just as

much if not more support while it gets started

We propose that communities local businesses workers unions community groups environment groups

local government and state and federal governments all need to be involved in planning a transition to

alternative forms of economic development and providing new jobs We call this a Just Transition (Anthea

Bill amp Evans1 2008 Brecher 2012) Just Transition is a framework for a fair and sustainable shift to a low

carbon economy proposed by trade unions and supported by environmental NGOs A Just Transition holds

that a shift to a lower carbon economy is vital to avoid dangerous climate change

Bimblebox Nature Refuge

26 | JOBS AFTER COAL A Just Transition for Queensland

Tough targets to cut greenhouse pollution supported by new environmental regulations and emerging carbon

markets will transform the global economy over the next decade These shifts will have major implications

for working people in energy supply industry and transport and for everyone as consumers There is a concern

that significant periods of economic restructuring in the past have often happened in a chaotic fashion

leaving ordinary workers along with their families and communities to bear the brunt of the transition to

new ways of producing wealth A just transition seeks to prevent such injustice becoming a feature of this

transition suggesting that it would not only be morally wrong and socially damaging but would undermine the

credibility of the transition itself and could slow or even halt the changes that must be made

It is through the challenges of communicating the urgency of climate change and other social and

environmental impacts that much of the debate about coal and its consequences for land water and the

climate has become unnecessarily adversarial and polarised Coal mining and power generation communities

deserve acknowledgement and appreciation for all that they have historically and currently contributed to

our country and our economy In communicating the economic shifts that are taking place and facilitating

the necessary transitions the Australian community needs to be respectful of the history and identity of coal

communities Environment groups government unions and the community need to initiate and engage in

the discussions about transitions in an open honest and compassionate manner Only by approaching the

transition in this way can the adversarial nature of the debate be broken down to make way for transformative

mutually respectful and holistic solutions

Whitsundays lsquoHave a Heart for the Reefrsquo

JOBS AFTER COAL A Just Transition for Queensland | 27

A just transition recognises that support for policies are conditional on a fair distribution of the costs and

benefits of those policies across the economy A just transition should also recognise that the creation of

opportunities for active engagement by those affected in determining the future wellbeing of themselves

and their families is essential for the long term empowerment of citizens and communities The following

recommendations have been written with the aim of emphasising such community empowerment as a priority

Recommendations

1) Establishing a unit within the State Government to support coal mining regions to transition to new economies

Specific institutions are needed to develop transition plans They need to have strong government support

and funding regional offices and representation from diverse stakeholders A dedicated unit within the

Department of Infrastructure Local Government and Planning could be established to oversee this work

They could work on the ground in the main coal mining communities to bring government expertise into

regional entities that would develop local plans that involve and empower the whole community This unit

or a connected unit would analyse existing barriers to the creation of competitive advantages for alternative

sustainable industries and would identify actions the State Government can take to support such creation

Any policy and support should come with clear conditions and timeframes These regional entities would

need generous budgets to assist local groups to develop their transition strategies to support research re-

training and the development of new business and community start-up initiatives based on the needs and

strategies of communities The key to communities becoming economically resilient is high levels of autonomy

and freedom in shaping their economic futures Research funding available to the regional entities will be

essential to the empowerment of local leadership Research funding should at least reach the OECD research

funding average and it should prioritise low carbon technologies and industry sectors with increased triple

bottom line sustainability potential

2) Support community leadership in diversifying local economies through the establishment of democratic regional entities

In each mining community a group of traditional and non-traditional community leaders willing to think

beyond lsquoBusiness as Usualrsquo to imagine a better future could be called together to work in collaboration with

and be resourced by the state government managed regional entities mentioned in recommendation one

The leaders would come from diverse backgrounds such as from local governments business associations

unions farming groups renewable energy businesses and educational institutions The objectives of these

leadership groups would be tailored to each community The objectives would in broad terms be to increase

employment in new diverse industries based on sustainable production and publicservice sector job creation

Expert facilitation alongside inclusive and democratic community engagement initiatives would be essential

to ensure the process and environment for creativity and innovation is maximised To develop such groups

it would be necessary to take stock of the existing resources skills and successful businesses on which a

new future can be built In addition an analysis of the social environmental and economic needs of the

28 | JOBS AFTER COAL A Just Transition for Queensland

community would also be beneficial These groups could then establish economic diversification projects

including value-added local production worker controlled co-operative enterprises and new community-

based enterprises that economically empower the local community Activities may also include support for

alternative industries in regard to process restructuring or subsidising the wages of workers displaced from

higher paying traditional industries

3) Support researching and communicating how the just transition can take place

Consistent research is needed on the best options to support the state and national economies to transition

This requires ongoing situational analysis of the global energy market shifts at both government levels In

addition each mining region will need assistance to research the number of jobs that are dependent on coal

the skills of those employed the level of local national and global long- and short-term risk to local mining

operations the transferability of jobs to other industries local opportunities for new enterprises and their

needs and the local educational and training needs and resources A key issue requiring research will be

around how the transitition scenarios differ depending on the level and relativity of thermal and coking coal

industries across coal mining communities The process for sourcing this information at a local and state

government level should be integrated into a policy feedback loop to support cyclical situational analysis and

policy adjustments from all levels of government This research should take place at the state level and be

encouraged at the industry and local level through grants

Mackay Central Queensland

JOBS AFTER COAL A Just Transition for Queensland | 29

4) Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

Many existing Queensland industries including those not highlighted in this report have the potential to

carry Queensland towards a new sustainable economy [sC5]mdashbut they will need support to do so Instead

of continuing to support and lower costs for the coal mining industry we need a plan to grow competitive

advantage across industries that have potential for sustainability and growth in regional mining communities

Along with industry and community organisations the State Government could organise a State Economic

Summit to assess existing industry clusters identify the potential of new and emerging industries consider

their competitiveness and key capabilities and identify barriers to increasing competitive advantage The

findings and recommendations from this Summit could be used to inform the work of the Unit established in

bullet point one above and the research outlined in bullet point two

5) Provide social protection of workers their families and incomes

If mines close suddenly workers need protection for their incomes and social services and possible relocation

even though many miners these days do not live in the communities where they mine Ideally these transition

plans would be developed early enough to ensure that new employment opportunities are in place for them

before mines actually close For many workers this is already too late but if the process begins now there will

be choices available for future retrenched coal workers who live in mining communities and regions Mining

companies could be incentivised andor penalised to give adequate notice to workers and other stakeholders

that closure may be impending and alternative economic opportunities need to be developed

6) Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

Involving the relevant unions in the planning of community transitions can enable them to move towards

becoming more proactive agents helping to plan the transition with critical networks and specific knowledge

about the needs of their members When a coal-fired power station in Washington State USA was scheduled

for closure for environmental reasons unions played a pivotal role persuading environmentalists and others

to delay the closure long enough for a Just Transition to provide different jobs for the workers This made it

possible for the coal resource to be replaced by wind and other renewable generation rather than natural

gasmdasha better environmental outcome and the unions became an active part in the phase out planning

Unions have a heavy workload defending workers rights and pay They need to be supported and financed to

play important roles in community transitions From facilitation and leadership of planning bodies career

planning and advice preferential hiring for displaced workers in the new alternative emerging industries and

leading the establishment of work controlled cooperatives unions have an essential role to play

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

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ABC Online (2014) Coal lsquogood for humanityrsquo Prime Minister Tony Abbott says at $39b Queensland mine opening httpwwwabcnetaunews2014-10-13coal-is-good-for-humanity-pm-tony-abbott-says5810244 Retrieved 10th of November 2015

After Coal (2015) Community Regeneration West Virginia United States httpaftercoalcomengage-your-community Retrieved 10th of November 2015

Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

Arabella Advisors (2015) Measuring the Growth of the Global Fossil Fuel Divestment and Clean Energy Investment Movement httpwwwarabellaadvisorscomwp-contentuploads201509Measuring-the-Growth-of-the-Divestment-Movementpdf Retrieved 10th of November 2015

Australian Bureau of Statistics (2014) Australian National Accounts State Accounts 2012ndash13 Canberra Australia Retrieved 10th of November 2015

Australian Bureau of Statistics (2015) MackaymdashCensus Employment by IndustrymdashTime Series Australian Government Department of Employment Retrieved 10th of November 2015

Australian Government Department for Education and Training (2015) Draft National Strategy for International Education Canberra Australian Capital Territory Retrieved 10th of November 2015

Australian Government (2014) Export income to Australia from international education activity in 2013ndash14 Canberra Australia Retrieved 10th of November 2015

BHP Billiton (2013) Coal Briefing httpwwwbhpbillitoncom~mediabhpdocumentsinvestorsreports2013130529_coalbriefingpdf Retrieved 10th of November 2015

Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

Beyond Zero Emissions (2012) Laggard to Leader How Australia Can Lead the World to Zero Carbon Prosperity Melbourne University Melbourne Victoria Retrieved 10th of November 2015

Beyond Zero Emissions (2014) A Fossil Economy in a Changing World Melbourne University Melbourne Victoria httpmediabzeorgaufossileconomyFossilEconomypdf Retrieved 10th of November 2015

Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

One Million Climate Job Campaign (2015) About London United Kingdom httpclimatejobsorgzaabout Retrieved 10th of November 2015

Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 31: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

JOBS AFTER COAL A Just Transition for Queensland | 21

cannot completely replace all of the coal

export industry jobs Numerous studies

show that with strong climate policies

over 7100 jobs can be created in

Queensland through renewable energy

by 2030 (Institute 2011) Thousands of

these jobs will be in regional

Queensland These should be prioritised

for regions where the mining industry

has developed rural communities in

need of new economic opportunities Far

North Queensland is especially suited to

further renewable energy investment

because of its climatic conditions and

because of the expensive transmissions

losses from having energy wired from

southern power sources (Allen 2011)

This makes it essential that government

policy ensures that the fair share of the

$35 billion in potential renewable

energy investment goes to rural mining

communities not only where it is most

needed economically but where it

makes the most business sense

(Department of Employment 2009)

The mining boom has created an unsustainable dependence on fossil fuel exports It is time to build an economy that has the potential to last forever A bio-industrial products export industry is Queenslandrsquos opportunity to do this for the benefit of communities today and for generations to come

Queensland has the potential to become a smart sunshine state powered by clean and sustainable renewable energy By doing this we will be creating jobs in rural mining communities where they are needed most and building a foundation for a new sustainable economy

22 | JOBS AFTER COAL A Just Transition for Queensland

4 Community transitions Global case studies

There are communities around the worldwhich have reinvented themselves after the end of coal mining and

developed prosperous economies in doing so It has been a struggle but where there is a level of government

support inspired local leadership and the community is working together to regenerate its economy it has

been possible (Coal 2015) We are not suggesting any of these examples can be directly transferred to

Queensland communities facing the end of coal mining The object of these case studies is not to provide a

blueprint for Mackay Gladstone Rockhampton or mining towns in Central Queensland but to show the

diversity of ideas that have worked in other places that might stimulate our local communities to reinvent

themselves too

Hazelwood coal power station La Trobe Valley Vic

JOBS AFTER COAL A Just Transition for Queensland | 23

La Trobe ValleyIn the brown coal producing region of the La Trobe Valley in Victoria a grassroots transitionary force has been

underway for the past fifteen years Earthworker was set up by union and climate change activists seeking a

real alternative to coal and privately owned business models Earthworker Cooperativersquos mission is to create

jobs that respond to the lsquochallenges of climate change and the need for local job creation by facilitating the

establishment of worker-owned cooperatives hellip in sustainability-focused industriesrsquo (Earthworker 2015)

Their current focus is the establishment of a cooperative producing solar hot water systems in partnership

with an existing business called lsquoEverlast Hydro Systemsrsquo Their goal is to take production to Morwell in the

La Trobe Valley where workers are in need of an alternative to the coal industry The unique cooperative model

has made selling arrangement possible through inserting the option to buy a solar hot water system through

enterprise bargaining agreements

BanwenThe DOVE workshop in Banwen South Wales (Dove 2015) was started by agroup of women who during

the 1984ndash85 coal minersrsquo strike decided that community-based education was the most practical path to

regenerate the local economy Setting up shop in an abandoned mine office they developed a series of adult

education workshops for women Three decades later the DOVE building hosts a diverse set of small-scale

entrepreneurs including a daycare a library a community garden and a cafeacute featuring local foods

OrkneyOrkney like Central Queensland is a relatively isolated place with a scattered population Situated at the

top of Scotland two hours from the mainland by ferry Orcadians like Central Queenslanders often feel

like spectators to what goes on in the rest of their country They also feel vulnerable to central government

decisions and are often irritated by the lack of understanding of island life on the part of distant authoritiesmdash

its particular customs dialect and ways of doing things Since Norse times Orkney islanders burned peat (a

very young form of coal) as their primary fuel source but all the peat has been dug up This traditional way

of life where each farming family had its own peat bank and spent long summer days cutting and drying

peats while sharing picnics as children played is gone Another non-renewable energy source North Sea oil

discovered in the 1970s brought positive and negatives for the island It turned the tide of depopulation but

like the peat banks the oil is depleting and another lsquoend of an erarsquo is approaching Orcadians have woken up

to the fact that they canrsquot continue to hark back to the past and are confronting the issues of a future without

fossil fuels

Over the last three decades European community funding has helped Orkney to equip itself for the green

energy revolution Orkney now plays a global role in the evolution of wave and tidal technologies and

significant research and development work is creating new employment opportunities A high school in

Stromness was converted into the European Marine Energy Centre and is now a world leader providing

developers the opportunity to test full-scale prototypes in the sea The worldrsquos largest single-rotor tidal turbine

24 | JOBS AFTER COAL A Just Transition for Queensland

was the first in Scotland to be connected to the national grid from this centre Marine energy combined with

an expansion of wind turbines means that the island is now self-sufficient in electricity These renewable

energy developments have created jobs in the Orkneys in civil works and erection grid connection and

communications (Stuart 2011)

Investment in renewable energy and its associated RampD has attracted people to live work and study on the

island Islanders used to have to leave to get tertiary education but it is now possible to study for an MSc in

renewable energy at a Heriot Watt University campus in Stromness A new generation of Orcadians have grown

up to see renewable energy as the way of the future something quite ldquonormalrdquo which will provide greater

opportunities for their children to stay on the island with genuine prospects for employment in meaningful

jobs requiring a wide range of skills and qualifications This shows what a community in transition to a low

carbon future can look like

Nord-Pas De CalaisUntil 1986 the north-east region of France Nord-pas de Calais was a major coal mining area It still boasts

huge twin tailings mountains the largest in Europe which have become a tourist attraction It is known

to Australians for the war cemeteries associated with the battle of the Somme in WW1 but it has recently

undergone a remarkable transformation towards a truly sustainable economy Old coal mines at Lens have

been transformed into an art gallery displaying works from the Louvre collection in Paris Hundreds of people

are trained in energy efficiency solar energy and green architecture at a new training centre in nearby Loos-

en-Gohelle

The Chamber of Commerce invited economist and social visionary Jeremy Rifkin of the TIR Consulting

Group and his chief economist Skip Laitner to apply their model of the third industrial revolution to the

district (Riftkin 2015) Rifkinrsquos Third Industrial Revolution combines renewable energy energy efficiency

and the connectivity of the internet Buildings are energy generators and hydrogen is used as energy storage

After working with the community for some time the Master Plan was published in 2013 and envisages

that 100000 new jobs can be created by the transition plan (LLC 2013) Certainly the population has not

declined since mining days and has even slightly increased Inspired local leadership was the key in this

community plus some outside funding to help with the underpinning research

Appalachia (Kentucky)The transition process is just starting here but the community is very organised Kentuckians For The

Commonwealth has been battling the negative effects of coal mining for some decades and is now planning a

transition to ldquobuilding a better future beyond coalrdquo (Commonwealth 2015) Last year they held a conference

in Harlan Kentucky right in the middle of the Appalachian coal fields and invited guests from other US

regions in the same position as well as from Wales It is too soon to see what the outcome of their learning

process will be but they are another example of a community taking its future into its own handsmdashoptimistic

that there is a better future after coal

JOBS AFTER COAL A Just Transition for Queensland | 25

5 A just transition for coal mining communities policy recommendations

The opportunities to transition from unsustainable coal mining to prosperous communities with decent

employment will not just materialise by themselves It will need the political will and the right incentives to

ensure that communities are not left fending for themselves with unemployment increasing and families

in need of long-term welfare But not only is the political will not currently there both major political

parties continue to support the expansion of this sunset industry and by doing so are making the transition

challenges progressively more difficult (Denniss 2012) For too many years governments have uncritically

supported the coal mining sector Entire government departments have been focused on facilitating mining

with tax incentives weakening assessment and approval processes along with providing through tax payer

money established industrial infrastructure to support new projects Government policy often seeks to grow

royalties income by supporting the extraction of as much coal as possible as an escape the challenge of

finding other ways to increase state revenue New sustainable industries in coal communities will need just as

much if not more support while it gets started

We propose that communities local businesses workers unions community groups environment groups

local government and state and federal governments all need to be involved in planning a transition to

alternative forms of economic development and providing new jobs We call this a Just Transition (Anthea

Bill amp Evans1 2008 Brecher 2012) Just Transition is a framework for a fair and sustainable shift to a low

carbon economy proposed by trade unions and supported by environmental NGOs A Just Transition holds

that a shift to a lower carbon economy is vital to avoid dangerous climate change

Bimblebox Nature Refuge

26 | JOBS AFTER COAL A Just Transition for Queensland

Tough targets to cut greenhouse pollution supported by new environmental regulations and emerging carbon

markets will transform the global economy over the next decade These shifts will have major implications

for working people in energy supply industry and transport and for everyone as consumers There is a concern

that significant periods of economic restructuring in the past have often happened in a chaotic fashion

leaving ordinary workers along with their families and communities to bear the brunt of the transition to

new ways of producing wealth A just transition seeks to prevent such injustice becoming a feature of this

transition suggesting that it would not only be morally wrong and socially damaging but would undermine the

credibility of the transition itself and could slow or even halt the changes that must be made

It is through the challenges of communicating the urgency of climate change and other social and

environmental impacts that much of the debate about coal and its consequences for land water and the

climate has become unnecessarily adversarial and polarised Coal mining and power generation communities

deserve acknowledgement and appreciation for all that they have historically and currently contributed to

our country and our economy In communicating the economic shifts that are taking place and facilitating

the necessary transitions the Australian community needs to be respectful of the history and identity of coal

communities Environment groups government unions and the community need to initiate and engage in

the discussions about transitions in an open honest and compassionate manner Only by approaching the

transition in this way can the adversarial nature of the debate be broken down to make way for transformative

mutually respectful and holistic solutions

Whitsundays lsquoHave a Heart for the Reefrsquo

JOBS AFTER COAL A Just Transition for Queensland | 27

A just transition recognises that support for policies are conditional on a fair distribution of the costs and

benefits of those policies across the economy A just transition should also recognise that the creation of

opportunities for active engagement by those affected in determining the future wellbeing of themselves

and their families is essential for the long term empowerment of citizens and communities The following

recommendations have been written with the aim of emphasising such community empowerment as a priority

Recommendations

1) Establishing a unit within the State Government to support coal mining regions to transition to new economies

Specific institutions are needed to develop transition plans They need to have strong government support

and funding regional offices and representation from diverse stakeholders A dedicated unit within the

Department of Infrastructure Local Government and Planning could be established to oversee this work

They could work on the ground in the main coal mining communities to bring government expertise into

regional entities that would develop local plans that involve and empower the whole community This unit

or a connected unit would analyse existing barriers to the creation of competitive advantages for alternative

sustainable industries and would identify actions the State Government can take to support such creation

Any policy and support should come with clear conditions and timeframes These regional entities would

need generous budgets to assist local groups to develop their transition strategies to support research re-

training and the development of new business and community start-up initiatives based on the needs and

strategies of communities The key to communities becoming economically resilient is high levels of autonomy

and freedom in shaping their economic futures Research funding available to the regional entities will be

essential to the empowerment of local leadership Research funding should at least reach the OECD research

funding average and it should prioritise low carbon technologies and industry sectors with increased triple

bottom line sustainability potential

2) Support community leadership in diversifying local economies through the establishment of democratic regional entities

In each mining community a group of traditional and non-traditional community leaders willing to think

beyond lsquoBusiness as Usualrsquo to imagine a better future could be called together to work in collaboration with

and be resourced by the state government managed regional entities mentioned in recommendation one

The leaders would come from diverse backgrounds such as from local governments business associations

unions farming groups renewable energy businesses and educational institutions The objectives of these

leadership groups would be tailored to each community The objectives would in broad terms be to increase

employment in new diverse industries based on sustainable production and publicservice sector job creation

Expert facilitation alongside inclusive and democratic community engagement initiatives would be essential

to ensure the process and environment for creativity and innovation is maximised To develop such groups

it would be necessary to take stock of the existing resources skills and successful businesses on which a

new future can be built In addition an analysis of the social environmental and economic needs of the

28 | JOBS AFTER COAL A Just Transition for Queensland

community would also be beneficial These groups could then establish economic diversification projects

including value-added local production worker controlled co-operative enterprises and new community-

based enterprises that economically empower the local community Activities may also include support for

alternative industries in regard to process restructuring or subsidising the wages of workers displaced from

higher paying traditional industries

3) Support researching and communicating how the just transition can take place

Consistent research is needed on the best options to support the state and national economies to transition

This requires ongoing situational analysis of the global energy market shifts at both government levels In

addition each mining region will need assistance to research the number of jobs that are dependent on coal

the skills of those employed the level of local national and global long- and short-term risk to local mining

operations the transferability of jobs to other industries local opportunities for new enterprises and their

needs and the local educational and training needs and resources A key issue requiring research will be

around how the transitition scenarios differ depending on the level and relativity of thermal and coking coal

industries across coal mining communities The process for sourcing this information at a local and state

government level should be integrated into a policy feedback loop to support cyclical situational analysis and

policy adjustments from all levels of government This research should take place at the state level and be

encouraged at the industry and local level through grants

Mackay Central Queensland

JOBS AFTER COAL A Just Transition for Queensland | 29

4) Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

Many existing Queensland industries including those not highlighted in this report have the potential to

carry Queensland towards a new sustainable economy [sC5]mdashbut they will need support to do so Instead

of continuing to support and lower costs for the coal mining industry we need a plan to grow competitive

advantage across industries that have potential for sustainability and growth in regional mining communities

Along with industry and community organisations the State Government could organise a State Economic

Summit to assess existing industry clusters identify the potential of new and emerging industries consider

their competitiveness and key capabilities and identify barriers to increasing competitive advantage The

findings and recommendations from this Summit could be used to inform the work of the Unit established in

bullet point one above and the research outlined in bullet point two

5) Provide social protection of workers their families and incomes

If mines close suddenly workers need protection for their incomes and social services and possible relocation

even though many miners these days do not live in the communities where they mine Ideally these transition

plans would be developed early enough to ensure that new employment opportunities are in place for them

before mines actually close For many workers this is already too late but if the process begins now there will

be choices available for future retrenched coal workers who live in mining communities and regions Mining

companies could be incentivised andor penalised to give adequate notice to workers and other stakeholders

that closure may be impending and alternative economic opportunities need to be developed

6) Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

Involving the relevant unions in the planning of community transitions can enable them to move towards

becoming more proactive agents helping to plan the transition with critical networks and specific knowledge

about the needs of their members When a coal-fired power station in Washington State USA was scheduled

for closure for environmental reasons unions played a pivotal role persuading environmentalists and others

to delay the closure long enough for a Just Transition to provide different jobs for the workers This made it

possible for the coal resource to be replaced by wind and other renewable generation rather than natural

gasmdasha better environmental outcome and the unions became an active part in the phase out planning

Unions have a heavy workload defending workers rights and pay They need to be supported and financed to

play important roles in community transitions From facilitation and leadership of planning bodies career

planning and advice preferential hiring for displaced workers in the new alternative emerging industries and

leading the establishment of work controlled cooperatives unions have an essential role to play

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

References

ABC Online (2014) Coal lsquogood for humanityrsquo Prime Minister Tony Abbott says at $39b Queensland mine opening httpwwwabcnetaunews2014-10-13coal-is-good-for-humanity-pm-tony-abbott-says5810244 Retrieved 10th of November 2015

After Coal (2015) Community Regeneration West Virginia United States httpaftercoalcomengage-your-community Retrieved 10th of November 2015

Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

Arabella Advisors (2015) Measuring the Growth of the Global Fossil Fuel Divestment and Clean Energy Investment Movement httpwwwarabellaadvisorscomwp-contentuploads201509Measuring-the-Growth-of-the-Divestment-Movementpdf Retrieved 10th of November 2015

Australian Bureau of Statistics (2014) Australian National Accounts State Accounts 2012ndash13 Canberra Australia Retrieved 10th of November 2015

Australian Bureau of Statistics (2015) MackaymdashCensus Employment by IndustrymdashTime Series Australian Government Department of Employment Retrieved 10th of November 2015

Australian Government Department for Education and Training (2015) Draft National Strategy for International Education Canberra Australian Capital Territory Retrieved 10th of November 2015

Australian Government (2014) Export income to Australia from international education activity in 2013ndash14 Canberra Australia Retrieved 10th of November 2015

BHP Billiton (2013) Coal Briefing httpwwwbhpbillitoncom~mediabhpdocumentsinvestorsreports2013130529_coalbriefingpdf Retrieved 10th of November 2015

Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

Beyond Zero Emissions (2012) Laggard to Leader How Australia Can Lead the World to Zero Carbon Prosperity Melbourne University Melbourne Victoria Retrieved 10th of November 2015

Beyond Zero Emissions (2014) A Fossil Economy in a Changing World Melbourne University Melbourne Victoria httpmediabzeorgaufossileconomyFossilEconomypdf Retrieved 10th of November 2015

Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

One Million Climate Job Campaign (2015) About London United Kingdom httpclimatejobsorgzaabout Retrieved 10th of November 2015

Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 32: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

22 | JOBS AFTER COAL A Just Transition for Queensland

4 Community transitions Global case studies

There are communities around the worldwhich have reinvented themselves after the end of coal mining and

developed prosperous economies in doing so It has been a struggle but where there is a level of government

support inspired local leadership and the community is working together to regenerate its economy it has

been possible (Coal 2015) We are not suggesting any of these examples can be directly transferred to

Queensland communities facing the end of coal mining The object of these case studies is not to provide a

blueprint for Mackay Gladstone Rockhampton or mining towns in Central Queensland but to show the

diversity of ideas that have worked in other places that might stimulate our local communities to reinvent

themselves too

Hazelwood coal power station La Trobe Valley Vic

JOBS AFTER COAL A Just Transition for Queensland | 23

La Trobe ValleyIn the brown coal producing region of the La Trobe Valley in Victoria a grassroots transitionary force has been

underway for the past fifteen years Earthworker was set up by union and climate change activists seeking a

real alternative to coal and privately owned business models Earthworker Cooperativersquos mission is to create

jobs that respond to the lsquochallenges of climate change and the need for local job creation by facilitating the

establishment of worker-owned cooperatives hellip in sustainability-focused industriesrsquo (Earthworker 2015)

Their current focus is the establishment of a cooperative producing solar hot water systems in partnership

with an existing business called lsquoEverlast Hydro Systemsrsquo Their goal is to take production to Morwell in the

La Trobe Valley where workers are in need of an alternative to the coal industry The unique cooperative model

has made selling arrangement possible through inserting the option to buy a solar hot water system through

enterprise bargaining agreements

BanwenThe DOVE workshop in Banwen South Wales (Dove 2015) was started by agroup of women who during

the 1984ndash85 coal minersrsquo strike decided that community-based education was the most practical path to

regenerate the local economy Setting up shop in an abandoned mine office they developed a series of adult

education workshops for women Three decades later the DOVE building hosts a diverse set of small-scale

entrepreneurs including a daycare a library a community garden and a cafeacute featuring local foods

OrkneyOrkney like Central Queensland is a relatively isolated place with a scattered population Situated at the

top of Scotland two hours from the mainland by ferry Orcadians like Central Queenslanders often feel

like spectators to what goes on in the rest of their country They also feel vulnerable to central government

decisions and are often irritated by the lack of understanding of island life on the part of distant authoritiesmdash

its particular customs dialect and ways of doing things Since Norse times Orkney islanders burned peat (a

very young form of coal) as their primary fuel source but all the peat has been dug up This traditional way

of life where each farming family had its own peat bank and spent long summer days cutting and drying

peats while sharing picnics as children played is gone Another non-renewable energy source North Sea oil

discovered in the 1970s brought positive and negatives for the island It turned the tide of depopulation but

like the peat banks the oil is depleting and another lsquoend of an erarsquo is approaching Orcadians have woken up

to the fact that they canrsquot continue to hark back to the past and are confronting the issues of a future without

fossil fuels

Over the last three decades European community funding has helped Orkney to equip itself for the green

energy revolution Orkney now plays a global role in the evolution of wave and tidal technologies and

significant research and development work is creating new employment opportunities A high school in

Stromness was converted into the European Marine Energy Centre and is now a world leader providing

developers the opportunity to test full-scale prototypes in the sea The worldrsquos largest single-rotor tidal turbine

24 | JOBS AFTER COAL A Just Transition for Queensland

was the first in Scotland to be connected to the national grid from this centre Marine energy combined with

an expansion of wind turbines means that the island is now self-sufficient in electricity These renewable

energy developments have created jobs in the Orkneys in civil works and erection grid connection and

communications (Stuart 2011)

Investment in renewable energy and its associated RampD has attracted people to live work and study on the

island Islanders used to have to leave to get tertiary education but it is now possible to study for an MSc in

renewable energy at a Heriot Watt University campus in Stromness A new generation of Orcadians have grown

up to see renewable energy as the way of the future something quite ldquonormalrdquo which will provide greater

opportunities for their children to stay on the island with genuine prospects for employment in meaningful

jobs requiring a wide range of skills and qualifications This shows what a community in transition to a low

carbon future can look like

Nord-Pas De CalaisUntil 1986 the north-east region of France Nord-pas de Calais was a major coal mining area It still boasts

huge twin tailings mountains the largest in Europe which have become a tourist attraction It is known

to Australians for the war cemeteries associated with the battle of the Somme in WW1 but it has recently

undergone a remarkable transformation towards a truly sustainable economy Old coal mines at Lens have

been transformed into an art gallery displaying works from the Louvre collection in Paris Hundreds of people

are trained in energy efficiency solar energy and green architecture at a new training centre in nearby Loos-

en-Gohelle

The Chamber of Commerce invited economist and social visionary Jeremy Rifkin of the TIR Consulting

Group and his chief economist Skip Laitner to apply their model of the third industrial revolution to the

district (Riftkin 2015) Rifkinrsquos Third Industrial Revolution combines renewable energy energy efficiency

and the connectivity of the internet Buildings are energy generators and hydrogen is used as energy storage

After working with the community for some time the Master Plan was published in 2013 and envisages

that 100000 new jobs can be created by the transition plan (LLC 2013) Certainly the population has not

declined since mining days and has even slightly increased Inspired local leadership was the key in this

community plus some outside funding to help with the underpinning research

Appalachia (Kentucky)The transition process is just starting here but the community is very organised Kentuckians For The

Commonwealth has been battling the negative effects of coal mining for some decades and is now planning a

transition to ldquobuilding a better future beyond coalrdquo (Commonwealth 2015) Last year they held a conference

in Harlan Kentucky right in the middle of the Appalachian coal fields and invited guests from other US

regions in the same position as well as from Wales It is too soon to see what the outcome of their learning

process will be but they are another example of a community taking its future into its own handsmdashoptimistic

that there is a better future after coal

JOBS AFTER COAL A Just Transition for Queensland | 25

5 A just transition for coal mining communities policy recommendations

The opportunities to transition from unsustainable coal mining to prosperous communities with decent

employment will not just materialise by themselves It will need the political will and the right incentives to

ensure that communities are not left fending for themselves with unemployment increasing and families

in need of long-term welfare But not only is the political will not currently there both major political

parties continue to support the expansion of this sunset industry and by doing so are making the transition

challenges progressively more difficult (Denniss 2012) For too many years governments have uncritically

supported the coal mining sector Entire government departments have been focused on facilitating mining

with tax incentives weakening assessment and approval processes along with providing through tax payer

money established industrial infrastructure to support new projects Government policy often seeks to grow

royalties income by supporting the extraction of as much coal as possible as an escape the challenge of

finding other ways to increase state revenue New sustainable industries in coal communities will need just as

much if not more support while it gets started

We propose that communities local businesses workers unions community groups environment groups

local government and state and federal governments all need to be involved in planning a transition to

alternative forms of economic development and providing new jobs We call this a Just Transition (Anthea

Bill amp Evans1 2008 Brecher 2012) Just Transition is a framework for a fair and sustainable shift to a low

carbon economy proposed by trade unions and supported by environmental NGOs A Just Transition holds

that a shift to a lower carbon economy is vital to avoid dangerous climate change

Bimblebox Nature Refuge

26 | JOBS AFTER COAL A Just Transition for Queensland

Tough targets to cut greenhouse pollution supported by new environmental regulations and emerging carbon

markets will transform the global economy over the next decade These shifts will have major implications

for working people in energy supply industry and transport and for everyone as consumers There is a concern

that significant periods of economic restructuring in the past have often happened in a chaotic fashion

leaving ordinary workers along with their families and communities to bear the brunt of the transition to

new ways of producing wealth A just transition seeks to prevent such injustice becoming a feature of this

transition suggesting that it would not only be morally wrong and socially damaging but would undermine the

credibility of the transition itself and could slow or even halt the changes that must be made

It is through the challenges of communicating the urgency of climate change and other social and

environmental impacts that much of the debate about coal and its consequences for land water and the

climate has become unnecessarily adversarial and polarised Coal mining and power generation communities

deserve acknowledgement and appreciation for all that they have historically and currently contributed to

our country and our economy In communicating the economic shifts that are taking place and facilitating

the necessary transitions the Australian community needs to be respectful of the history and identity of coal

communities Environment groups government unions and the community need to initiate and engage in

the discussions about transitions in an open honest and compassionate manner Only by approaching the

transition in this way can the adversarial nature of the debate be broken down to make way for transformative

mutually respectful and holistic solutions

Whitsundays lsquoHave a Heart for the Reefrsquo

JOBS AFTER COAL A Just Transition for Queensland | 27

A just transition recognises that support for policies are conditional on a fair distribution of the costs and

benefits of those policies across the economy A just transition should also recognise that the creation of

opportunities for active engagement by those affected in determining the future wellbeing of themselves

and their families is essential for the long term empowerment of citizens and communities The following

recommendations have been written with the aim of emphasising such community empowerment as a priority

Recommendations

1) Establishing a unit within the State Government to support coal mining regions to transition to new economies

Specific institutions are needed to develop transition plans They need to have strong government support

and funding regional offices and representation from diverse stakeholders A dedicated unit within the

Department of Infrastructure Local Government and Planning could be established to oversee this work

They could work on the ground in the main coal mining communities to bring government expertise into

regional entities that would develop local plans that involve and empower the whole community This unit

or a connected unit would analyse existing barriers to the creation of competitive advantages for alternative

sustainable industries and would identify actions the State Government can take to support such creation

Any policy and support should come with clear conditions and timeframes These regional entities would

need generous budgets to assist local groups to develop their transition strategies to support research re-

training and the development of new business and community start-up initiatives based on the needs and

strategies of communities The key to communities becoming economically resilient is high levels of autonomy

and freedom in shaping their economic futures Research funding available to the regional entities will be

essential to the empowerment of local leadership Research funding should at least reach the OECD research

funding average and it should prioritise low carbon technologies and industry sectors with increased triple

bottom line sustainability potential

2) Support community leadership in diversifying local economies through the establishment of democratic regional entities

In each mining community a group of traditional and non-traditional community leaders willing to think

beyond lsquoBusiness as Usualrsquo to imagine a better future could be called together to work in collaboration with

and be resourced by the state government managed regional entities mentioned in recommendation one

The leaders would come from diverse backgrounds such as from local governments business associations

unions farming groups renewable energy businesses and educational institutions The objectives of these

leadership groups would be tailored to each community The objectives would in broad terms be to increase

employment in new diverse industries based on sustainable production and publicservice sector job creation

Expert facilitation alongside inclusive and democratic community engagement initiatives would be essential

to ensure the process and environment for creativity and innovation is maximised To develop such groups

it would be necessary to take stock of the existing resources skills and successful businesses on which a

new future can be built In addition an analysis of the social environmental and economic needs of the

28 | JOBS AFTER COAL A Just Transition for Queensland

community would also be beneficial These groups could then establish economic diversification projects

including value-added local production worker controlled co-operative enterprises and new community-

based enterprises that economically empower the local community Activities may also include support for

alternative industries in regard to process restructuring or subsidising the wages of workers displaced from

higher paying traditional industries

3) Support researching and communicating how the just transition can take place

Consistent research is needed on the best options to support the state and national economies to transition

This requires ongoing situational analysis of the global energy market shifts at both government levels In

addition each mining region will need assistance to research the number of jobs that are dependent on coal

the skills of those employed the level of local national and global long- and short-term risk to local mining

operations the transferability of jobs to other industries local opportunities for new enterprises and their

needs and the local educational and training needs and resources A key issue requiring research will be

around how the transitition scenarios differ depending on the level and relativity of thermal and coking coal

industries across coal mining communities The process for sourcing this information at a local and state

government level should be integrated into a policy feedback loop to support cyclical situational analysis and

policy adjustments from all levels of government This research should take place at the state level and be

encouraged at the industry and local level through grants

Mackay Central Queensland

JOBS AFTER COAL A Just Transition for Queensland | 29

4) Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

Many existing Queensland industries including those not highlighted in this report have the potential to

carry Queensland towards a new sustainable economy [sC5]mdashbut they will need support to do so Instead

of continuing to support and lower costs for the coal mining industry we need a plan to grow competitive

advantage across industries that have potential for sustainability and growth in regional mining communities

Along with industry and community organisations the State Government could organise a State Economic

Summit to assess existing industry clusters identify the potential of new and emerging industries consider

their competitiveness and key capabilities and identify barriers to increasing competitive advantage The

findings and recommendations from this Summit could be used to inform the work of the Unit established in

bullet point one above and the research outlined in bullet point two

5) Provide social protection of workers their families and incomes

If mines close suddenly workers need protection for their incomes and social services and possible relocation

even though many miners these days do not live in the communities where they mine Ideally these transition

plans would be developed early enough to ensure that new employment opportunities are in place for them

before mines actually close For many workers this is already too late but if the process begins now there will

be choices available for future retrenched coal workers who live in mining communities and regions Mining

companies could be incentivised andor penalised to give adequate notice to workers and other stakeholders

that closure may be impending and alternative economic opportunities need to be developed

6) Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

Involving the relevant unions in the planning of community transitions can enable them to move towards

becoming more proactive agents helping to plan the transition with critical networks and specific knowledge

about the needs of their members When a coal-fired power station in Washington State USA was scheduled

for closure for environmental reasons unions played a pivotal role persuading environmentalists and others

to delay the closure long enough for a Just Transition to provide different jobs for the workers This made it

possible for the coal resource to be replaced by wind and other renewable generation rather than natural

gasmdasha better environmental outcome and the unions became an active part in the phase out planning

Unions have a heavy workload defending workers rights and pay They need to be supported and financed to

play important roles in community transitions From facilitation and leadership of planning bodies career

planning and advice preferential hiring for displaced workers in the new alternative emerging industries and

leading the establishment of work controlled cooperatives unions have an essential role to play

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

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Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

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Australian Bureau of Statistics (2015) MackaymdashCensus Employment by IndustrymdashTime Series Australian Government Department of Employment Retrieved 10th of November 2015

Australian Government Department for Education and Training (2015) Draft National Strategy for International Education Canberra Australian Capital Territory Retrieved 10th of November 2015

Australian Government (2014) Export income to Australia from international education activity in 2013ndash14 Canberra Australia Retrieved 10th of November 2015

BHP Billiton (2013) Coal Briefing httpwwwbhpbillitoncom~mediabhpdocumentsinvestorsreports2013130529_coalbriefingpdf Retrieved 10th of November 2015

Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

Beyond Zero Emissions (2012) Laggard to Leader How Australia Can Lead the World to Zero Carbon Prosperity Melbourne University Melbourne Victoria Retrieved 10th of November 2015

Beyond Zero Emissions (2014) A Fossil Economy in a Changing World Melbourne University Melbourne Victoria httpmediabzeorgaufossileconomyFossilEconomypdf Retrieved 10th of November 2015

Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

One Million Climate Job Campaign (2015) About London United Kingdom httpclimatejobsorgzaabout Retrieved 10th of November 2015

Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 33: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

JOBS AFTER COAL A Just Transition for Queensland | 23

La Trobe ValleyIn the brown coal producing region of the La Trobe Valley in Victoria a grassroots transitionary force has been

underway for the past fifteen years Earthworker was set up by union and climate change activists seeking a

real alternative to coal and privately owned business models Earthworker Cooperativersquos mission is to create

jobs that respond to the lsquochallenges of climate change and the need for local job creation by facilitating the

establishment of worker-owned cooperatives hellip in sustainability-focused industriesrsquo (Earthworker 2015)

Their current focus is the establishment of a cooperative producing solar hot water systems in partnership

with an existing business called lsquoEverlast Hydro Systemsrsquo Their goal is to take production to Morwell in the

La Trobe Valley where workers are in need of an alternative to the coal industry The unique cooperative model

has made selling arrangement possible through inserting the option to buy a solar hot water system through

enterprise bargaining agreements

BanwenThe DOVE workshop in Banwen South Wales (Dove 2015) was started by agroup of women who during

the 1984ndash85 coal minersrsquo strike decided that community-based education was the most practical path to

regenerate the local economy Setting up shop in an abandoned mine office they developed a series of adult

education workshops for women Three decades later the DOVE building hosts a diverse set of small-scale

entrepreneurs including a daycare a library a community garden and a cafeacute featuring local foods

OrkneyOrkney like Central Queensland is a relatively isolated place with a scattered population Situated at the

top of Scotland two hours from the mainland by ferry Orcadians like Central Queenslanders often feel

like spectators to what goes on in the rest of their country They also feel vulnerable to central government

decisions and are often irritated by the lack of understanding of island life on the part of distant authoritiesmdash

its particular customs dialect and ways of doing things Since Norse times Orkney islanders burned peat (a

very young form of coal) as their primary fuel source but all the peat has been dug up This traditional way

of life where each farming family had its own peat bank and spent long summer days cutting and drying

peats while sharing picnics as children played is gone Another non-renewable energy source North Sea oil

discovered in the 1970s brought positive and negatives for the island It turned the tide of depopulation but

like the peat banks the oil is depleting and another lsquoend of an erarsquo is approaching Orcadians have woken up

to the fact that they canrsquot continue to hark back to the past and are confronting the issues of a future without

fossil fuels

Over the last three decades European community funding has helped Orkney to equip itself for the green

energy revolution Orkney now plays a global role in the evolution of wave and tidal technologies and

significant research and development work is creating new employment opportunities A high school in

Stromness was converted into the European Marine Energy Centre and is now a world leader providing

developers the opportunity to test full-scale prototypes in the sea The worldrsquos largest single-rotor tidal turbine

24 | JOBS AFTER COAL A Just Transition for Queensland

was the first in Scotland to be connected to the national grid from this centre Marine energy combined with

an expansion of wind turbines means that the island is now self-sufficient in electricity These renewable

energy developments have created jobs in the Orkneys in civil works and erection grid connection and

communications (Stuart 2011)

Investment in renewable energy and its associated RampD has attracted people to live work and study on the

island Islanders used to have to leave to get tertiary education but it is now possible to study for an MSc in

renewable energy at a Heriot Watt University campus in Stromness A new generation of Orcadians have grown

up to see renewable energy as the way of the future something quite ldquonormalrdquo which will provide greater

opportunities for their children to stay on the island with genuine prospects for employment in meaningful

jobs requiring a wide range of skills and qualifications This shows what a community in transition to a low

carbon future can look like

Nord-Pas De CalaisUntil 1986 the north-east region of France Nord-pas de Calais was a major coal mining area It still boasts

huge twin tailings mountains the largest in Europe which have become a tourist attraction It is known

to Australians for the war cemeteries associated with the battle of the Somme in WW1 but it has recently

undergone a remarkable transformation towards a truly sustainable economy Old coal mines at Lens have

been transformed into an art gallery displaying works from the Louvre collection in Paris Hundreds of people

are trained in energy efficiency solar energy and green architecture at a new training centre in nearby Loos-

en-Gohelle

The Chamber of Commerce invited economist and social visionary Jeremy Rifkin of the TIR Consulting

Group and his chief economist Skip Laitner to apply their model of the third industrial revolution to the

district (Riftkin 2015) Rifkinrsquos Third Industrial Revolution combines renewable energy energy efficiency

and the connectivity of the internet Buildings are energy generators and hydrogen is used as energy storage

After working with the community for some time the Master Plan was published in 2013 and envisages

that 100000 new jobs can be created by the transition plan (LLC 2013) Certainly the population has not

declined since mining days and has even slightly increased Inspired local leadership was the key in this

community plus some outside funding to help with the underpinning research

Appalachia (Kentucky)The transition process is just starting here but the community is very organised Kentuckians For The

Commonwealth has been battling the negative effects of coal mining for some decades and is now planning a

transition to ldquobuilding a better future beyond coalrdquo (Commonwealth 2015) Last year they held a conference

in Harlan Kentucky right in the middle of the Appalachian coal fields and invited guests from other US

regions in the same position as well as from Wales It is too soon to see what the outcome of their learning

process will be but they are another example of a community taking its future into its own handsmdashoptimistic

that there is a better future after coal

JOBS AFTER COAL A Just Transition for Queensland | 25

5 A just transition for coal mining communities policy recommendations

The opportunities to transition from unsustainable coal mining to prosperous communities with decent

employment will not just materialise by themselves It will need the political will and the right incentives to

ensure that communities are not left fending for themselves with unemployment increasing and families

in need of long-term welfare But not only is the political will not currently there both major political

parties continue to support the expansion of this sunset industry and by doing so are making the transition

challenges progressively more difficult (Denniss 2012) For too many years governments have uncritically

supported the coal mining sector Entire government departments have been focused on facilitating mining

with tax incentives weakening assessment and approval processes along with providing through tax payer

money established industrial infrastructure to support new projects Government policy often seeks to grow

royalties income by supporting the extraction of as much coal as possible as an escape the challenge of

finding other ways to increase state revenue New sustainable industries in coal communities will need just as

much if not more support while it gets started

We propose that communities local businesses workers unions community groups environment groups

local government and state and federal governments all need to be involved in planning a transition to

alternative forms of economic development and providing new jobs We call this a Just Transition (Anthea

Bill amp Evans1 2008 Brecher 2012) Just Transition is a framework for a fair and sustainable shift to a low

carbon economy proposed by trade unions and supported by environmental NGOs A Just Transition holds

that a shift to a lower carbon economy is vital to avoid dangerous climate change

Bimblebox Nature Refuge

26 | JOBS AFTER COAL A Just Transition for Queensland

Tough targets to cut greenhouse pollution supported by new environmental regulations and emerging carbon

markets will transform the global economy over the next decade These shifts will have major implications

for working people in energy supply industry and transport and for everyone as consumers There is a concern

that significant periods of economic restructuring in the past have often happened in a chaotic fashion

leaving ordinary workers along with their families and communities to bear the brunt of the transition to

new ways of producing wealth A just transition seeks to prevent such injustice becoming a feature of this

transition suggesting that it would not only be morally wrong and socially damaging but would undermine the

credibility of the transition itself and could slow or even halt the changes that must be made

It is through the challenges of communicating the urgency of climate change and other social and

environmental impacts that much of the debate about coal and its consequences for land water and the

climate has become unnecessarily adversarial and polarised Coal mining and power generation communities

deserve acknowledgement and appreciation for all that they have historically and currently contributed to

our country and our economy In communicating the economic shifts that are taking place and facilitating

the necessary transitions the Australian community needs to be respectful of the history and identity of coal

communities Environment groups government unions and the community need to initiate and engage in

the discussions about transitions in an open honest and compassionate manner Only by approaching the

transition in this way can the adversarial nature of the debate be broken down to make way for transformative

mutually respectful and holistic solutions

Whitsundays lsquoHave a Heart for the Reefrsquo

JOBS AFTER COAL A Just Transition for Queensland | 27

A just transition recognises that support for policies are conditional on a fair distribution of the costs and

benefits of those policies across the economy A just transition should also recognise that the creation of

opportunities for active engagement by those affected in determining the future wellbeing of themselves

and their families is essential for the long term empowerment of citizens and communities The following

recommendations have been written with the aim of emphasising such community empowerment as a priority

Recommendations

1) Establishing a unit within the State Government to support coal mining regions to transition to new economies

Specific institutions are needed to develop transition plans They need to have strong government support

and funding regional offices and representation from diverse stakeholders A dedicated unit within the

Department of Infrastructure Local Government and Planning could be established to oversee this work

They could work on the ground in the main coal mining communities to bring government expertise into

regional entities that would develop local plans that involve and empower the whole community This unit

or a connected unit would analyse existing barriers to the creation of competitive advantages for alternative

sustainable industries and would identify actions the State Government can take to support such creation

Any policy and support should come with clear conditions and timeframes These regional entities would

need generous budgets to assist local groups to develop their transition strategies to support research re-

training and the development of new business and community start-up initiatives based on the needs and

strategies of communities The key to communities becoming economically resilient is high levels of autonomy

and freedom in shaping their economic futures Research funding available to the regional entities will be

essential to the empowerment of local leadership Research funding should at least reach the OECD research

funding average and it should prioritise low carbon technologies and industry sectors with increased triple

bottom line sustainability potential

2) Support community leadership in diversifying local economies through the establishment of democratic regional entities

In each mining community a group of traditional and non-traditional community leaders willing to think

beyond lsquoBusiness as Usualrsquo to imagine a better future could be called together to work in collaboration with

and be resourced by the state government managed regional entities mentioned in recommendation one

The leaders would come from diverse backgrounds such as from local governments business associations

unions farming groups renewable energy businesses and educational institutions The objectives of these

leadership groups would be tailored to each community The objectives would in broad terms be to increase

employment in new diverse industries based on sustainable production and publicservice sector job creation

Expert facilitation alongside inclusive and democratic community engagement initiatives would be essential

to ensure the process and environment for creativity and innovation is maximised To develop such groups

it would be necessary to take stock of the existing resources skills and successful businesses on which a

new future can be built In addition an analysis of the social environmental and economic needs of the

28 | JOBS AFTER COAL A Just Transition for Queensland

community would also be beneficial These groups could then establish economic diversification projects

including value-added local production worker controlled co-operative enterprises and new community-

based enterprises that economically empower the local community Activities may also include support for

alternative industries in regard to process restructuring or subsidising the wages of workers displaced from

higher paying traditional industries

3) Support researching and communicating how the just transition can take place

Consistent research is needed on the best options to support the state and national economies to transition

This requires ongoing situational analysis of the global energy market shifts at both government levels In

addition each mining region will need assistance to research the number of jobs that are dependent on coal

the skills of those employed the level of local national and global long- and short-term risk to local mining

operations the transferability of jobs to other industries local opportunities for new enterprises and their

needs and the local educational and training needs and resources A key issue requiring research will be

around how the transitition scenarios differ depending on the level and relativity of thermal and coking coal

industries across coal mining communities The process for sourcing this information at a local and state

government level should be integrated into a policy feedback loop to support cyclical situational analysis and

policy adjustments from all levels of government This research should take place at the state level and be

encouraged at the industry and local level through grants

Mackay Central Queensland

JOBS AFTER COAL A Just Transition for Queensland | 29

4) Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

Many existing Queensland industries including those not highlighted in this report have the potential to

carry Queensland towards a new sustainable economy [sC5]mdashbut they will need support to do so Instead

of continuing to support and lower costs for the coal mining industry we need a plan to grow competitive

advantage across industries that have potential for sustainability and growth in regional mining communities

Along with industry and community organisations the State Government could organise a State Economic

Summit to assess existing industry clusters identify the potential of new and emerging industries consider

their competitiveness and key capabilities and identify barriers to increasing competitive advantage The

findings and recommendations from this Summit could be used to inform the work of the Unit established in

bullet point one above and the research outlined in bullet point two

5) Provide social protection of workers their families and incomes

If mines close suddenly workers need protection for their incomes and social services and possible relocation

even though many miners these days do not live in the communities where they mine Ideally these transition

plans would be developed early enough to ensure that new employment opportunities are in place for them

before mines actually close For many workers this is already too late but if the process begins now there will

be choices available for future retrenched coal workers who live in mining communities and regions Mining

companies could be incentivised andor penalised to give adequate notice to workers and other stakeholders

that closure may be impending and alternative economic opportunities need to be developed

6) Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

Involving the relevant unions in the planning of community transitions can enable them to move towards

becoming more proactive agents helping to plan the transition with critical networks and specific knowledge

about the needs of their members When a coal-fired power station in Washington State USA was scheduled

for closure for environmental reasons unions played a pivotal role persuading environmentalists and others

to delay the closure long enough for a Just Transition to provide different jobs for the workers This made it

possible for the coal resource to be replaced by wind and other renewable generation rather than natural

gasmdasha better environmental outcome and the unions became an active part in the phase out planning

Unions have a heavy workload defending workers rights and pay They need to be supported and financed to

play important roles in community transitions From facilitation and leadership of planning bodies career

planning and advice preferential hiring for displaced workers in the new alternative emerging industries and

leading the establishment of work controlled cooperatives unions have an essential role to play

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

References

ABC Online (2014) Coal lsquogood for humanityrsquo Prime Minister Tony Abbott says at $39b Queensland mine opening httpwwwabcnetaunews2014-10-13coal-is-good-for-humanity-pm-tony-abbott-says5810244 Retrieved 10th of November 2015

After Coal (2015) Community Regeneration West Virginia United States httpaftercoalcomengage-your-community Retrieved 10th of November 2015

Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

Arabella Advisors (2015) Measuring the Growth of the Global Fossil Fuel Divestment and Clean Energy Investment Movement httpwwwarabellaadvisorscomwp-contentuploads201509Measuring-the-Growth-of-the-Divestment-Movementpdf Retrieved 10th of November 2015

Australian Bureau of Statistics (2014) Australian National Accounts State Accounts 2012ndash13 Canberra Australia Retrieved 10th of November 2015

Australian Bureau of Statistics (2015) MackaymdashCensus Employment by IndustrymdashTime Series Australian Government Department of Employment Retrieved 10th of November 2015

Australian Government Department for Education and Training (2015) Draft National Strategy for International Education Canberra Australian Capital Territory Retrieved 10th of November 2015

Australian Government (2014) Export income to Australia from international education activity in 2013ndash14 Canberra Australia Retrieved 10th of November 2015

BHP Billiton (2013) Coal Briefing httpwwwbhpbillitoncom~mediabhpdocumentsinvestorsreports2013130529_coalbriefingpdf Retrieved 10th of November 2015

Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

Beyond Zero Emissions (2012) Laggard to Leader How Australia Can Lead the World to Zero Carbon Prosperity Melbourne University Melbourne Victoria Retrieved 10th of November 2015

Beyond Zero Emissions (2014) A Fossil Economy in a Changing World Melbourne University Melbourne Victoria httpmediabzeorgaufossileconomyFossilEconomypdf Retrieved 10th of November 2015

Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

One Million Climate Job Campaign (2015) About London United Kingdom httpclimatejobsorgzaabout Retrieved 10th of November 2015

Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 34: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

24 | JOBS AFTER COAL A Just Transition for Queensland

was the first in Scotland to be connected to the national grid from this centre Marine energy combined with

an expansion of wind turbines means that the island is now self-sufficient in electricity These renewable

energy developments have created jobs in the Orkneys in civil works and erection grid connection and

communications (Stuart 2011)

Investment in renewable energy and its associated RampD has attracted people to live work and study on the

island Islanders used to have to leave to get tertiary education but it is now possible to study for an MSc in

renewable energy at a Heriot Watt University campus in Stromness A new generation of Orcadians have grown

up to see renewable energy as the way of the future something quite ldquonormalrdquo which will provide greater

opportunities for their children to stay on the island with genuine prospects for employment in meaningful

jobs requiring a wide range of skills and qualifications This shows what a community in transition to a low

carbon future can look like

Nord-Pas De CalaisUntil 1986 the north-east region of France Nord-pas de Calais was a major coal mining area It still boasts

huge twin tailings mountains the largest in Europe which have become a tourist attraction It is known

to Australians for the war cemeteries associated with the battle of the Somme in WW1 but it has recently

undergone a remarkable transformation towards a truly sustainable economy Old coal mines at Lens have

been transformed into an art gallery displaying works from the Louvre collection in Paris Hundreds of people

are trained in energy efficiency solar energy and green architecture at a new training centre in nearby Loos-

en-Gohelle

The Chamber of Commerce invited economist and social visionary Jeremy Rifkin of the TIR Consulting

Group and his chief economist Skip Laitner to apply their model of the third industrial revolution to the

district (Riftkin 2015) Rifkinrsquos Third Industrial Revolution combines renewable energy energy efficiency

and the connectivity of the internet Buildings are energy generators and hydrogen is used as energy storage

After working with the community for some time the Master Plan was published in 2013 and envisages

that 100000 new jobs can be created by the transition plan (LLC 2013) Certainly the population has not

declined since mining days and has even slightly increased Inspired local leadership was the key in this

community plus some outside funding to help with the underpinning research

Appalachia (Kentucky)The transition process is just starting here but the community is very organised Kentuckians For The

Commonwealth has been battling the negative effects of coal mining for some decades and is now planning a

transition to ldquobuilding a better future beyond coalrdquo (Commonwealth 2015) Last year they held a conference

in Harlan Kentucky right in the middle of the Appalachian coal fields and invited guests from other US

regions in the same position as well as from Wales It is too soon to see what the outcome of their learning

process will be but they are another example of a community taking its future into its own handsmdashoptimistic

that there is a better future after coal

JOBS AFTER COAL A Just Transition for Queensland | 25

5 A just transition for coal mining communities policy recommendations

The opportunities to transition from unsustainable coal mining to prosperous communities with decent

employment will not just materialise by themselves It will need the political will and the right incentives to

ensure that communities are not left fending for themselves with unemployment increasing and families

in need of long-term welfare But not only is the political will not currently there both major political

parties continue to support the expansion of this sunset industry and by doing so are making the transition

challenges progressively more difficult (Denniss 2012) For too many years governments have uncritically

supported the coal mining sector Entire government departments have been focused on facilitating mining

with tax incentives weakening assessment and approval processes along with providing through tax payer

money established industrial infrastructure to support new projects Government policy often seeks to grow

royalties income by supporting the extraction of as much coal as possible as an escape the challenge of

finding other ways to increase state revenue New sustainable industries in coal communities will need just as

much if not more support while it gets started

We propose that communities local businesses workers unions community groups environment groups

local government and state and federal governments all need to be involved in planning a transition to

alternative forms of economic development and providing new jobs We call this a Just Transition (Anthea

Bill amp Evans1 2008 Brecher 2012) Just Transition is a framework for a fair and sustainable shift to a low

carbon economy proposed by trade unions and supported by environmental NGOs A Just Transition holds

that a shift to a lower carbon economy is vital to avoid dangerous climate change

Bimblebox Nature Refuge

26 | JOBS AFTER COAL A Just Transition for Queensland

Tough targets to cut greenhouse pollution supported by new environmental regulations and emerging carbon

markets will transform the global economy over the next decade These shifts will have major implications

for working people in energy supply industry and transport and for everyone as consumers There is a concern

that significant periods of economic restructuring in the past have often happened in a chaotic fashion

leaving ordinary workers along with their families and communities to bear the brunt of the transition to

new ways of producing wealth A just transition seeks to prevent such injustice becoming a feature of this

transition suggesting that it would not only be morally wrong and socially damaging but would undermine the

credibility of the transition itself and could slow or even halt the changes that must be made

It is through the challenges of communicating the urgency of climate change and other social and

environmental impacts that much of the debate about coal and its consequences for land water and the

climate has become unnecessarily adversarial and polarised Coal mining and power generation communities

deserve acknowledgement and appreciation for all that they have historically and currently contributed to

our country and our economy In communicating the economic shifts that are taking place and facilitating

the necessary transitions the Australian community needs to be respectful of the history and identity of coal

communities Environment groups government unions and the community need to initiate and engage in

the discussions about transitions in an open honest and compassionate manner Only by approaching the

transition in this way can the adversarial nature of the debate be broken down to make way for transformative

mutually respectful and holistic solutions

Whitsundays lsquoHave a Heart for the Reefrsquo

JOBS AFTER COAL A Just Transition for Queensland | 27

A just transition recognises that support for policies are conditional on a fair distribution of the costs and

benefits of those policies across the economy A just transition should also recognise that the creation of

opportunities for active engagement by those affected in determining the future wellbeing of themselves

and their families is essential for the long term empowerment of citizens and communities The following

recommendations have been written with the aim of emphasising such community empowerment as a priority

Recommendations

1) Establishing a unit within the State Government to support coal mining regions to transition to new economies

Specific institutions are needed to develop transition plans They need to have strong government support

and funding regional offices and representation from diverse stakeholders A dedicated unit within the

Department of Infrastructure Local Government and Planning could be established to oversee this work

They could work on the ground in the main coal mining communities to bring government expertise into

regional entities that would develop local plans that involve and empower the whole community This unit

or a connected unit would analyse existing barriers to the creation of competitive advantages for alternative

sustainable industries and would identify actions the State Government can take to support such creation

Any policy and support should come with clear conditions and timeframes These regional entities would

need generous budgets to assist local groups to develop their transition strategies to support research re-

training and the development of new business and community start-up initiatives based on the needs and

strategies of communities The key to communities becoming economically resilient is high levels of autonomy

and freedom in shaping their economic futures Research funding available to the regional entities will be

essential to the empowerment of local leadership Research funding should at least reach the OECD research

funding average and it should prioritise low carbon technologies and industry sectors with increased triple

bottom line sustainability potential

2) Support community leadership in diversifying local economies through the establishment of democratic regional entities

In each mining community a group of traditional and non-traditional community leaders willing to think

beyond lsquoBusiness as Usualrsquo to imagine a better future could be called together to work in collaboration with

and be resourced by the state government managed regional entities mentioned in recommendation one

The leaders would come from diverse backgrounds such as from local governments business associations

unions farming groups renewable energy businesses and educational institutions The objectives of these

leadership groups would be tailored to each community The objectives would in broad terms be to increase

employment in new diverse industries based on sustainable production and publicservice sector job creation

Expert facilitation alongside inclusive and democratic community engagement initiatives would be essential

to ensure the process and environment for creativity and innovation is maximised To develop such groups

it would be necessary to take stock of the existing resources skills and successful businesses on which a

new future can be built In addition an analysis of the social environmental and economic needs of the

28 | JOBS AFTER COAL A Just Transition for Queensland

community would also be beneficial These groups could then establish economic diversification projects

including value-added local production worker controlled co-operative enterprises and new community-

based enterprises that economically empower the local community Activities may also include support for

alternative industries in regard to process restructuring or subsidising the wages of workers displaced from

higher paying traditional industries

3) Support researching and communicating how the just transition can take place

Consistent research is needed on the best options to support the state and national economies to transition

This requires ongoing situational analysis of the global energy market shifts at both government levels In

addition each mining region will need assistance to research the number of jobs that are dependent on coal

the skills of those employed the level of local national and global long- and short-term risk to local mining

operations the transferability of jobs to other industries local opportunities for new enterprises and their

needs and the local educational and training needs and resources A key issue requiring research will be

around how the transitition scenarios differ depending on the level and relativity of thermal and coking coal

industries across coal mining communities The process for sourcing this information at a local and state

government level should be integrated into a policy feedback loop to support cyclical situational analysis and

policy adjustments from all levels of government This research should take place at the state level and be

encouraged at the industry and local level through grants

Mackay Central Queensland

JOBS AFTER COAL A Just Transition for Queensland | 29

4) Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

Many existing Queensland industries including those not highlighted in this report have the potential to

carry Queensland towards a new sustainable economy [sC5]mdashbut they will need support to do so Instead

of continuing to support and lower costs for the coal mining industry we need a plan to grow competitive

advantage across industries that have potential for sustainability and growth in regional mining communities

Along with industry and community organisations the State Government could organise a State Economic

Summit to assess existing industry clusters identify the potential of new and emerging industries consider

their competitiveness and key capabilities and identify barriers to increasing competitive advantage The

findings and recommendations from this Summit could be used to inform the work of the Unit established in

bullet point one above and the research outlined in bullet point two

5) Provide social protection of workers their families and incomes

If mines close suddenly workers need protection for their incomes and social services and possible relocation

even though many miners these days do not live in the communities where they mine Ideally these transition

plans would be developed early enough to ensure that new employment opportunities are in place for them

before mines actually close For many workers this is already too late but if the process begins now there will

be choices available for future retrenched coal workers who live in mining communities and regions Mining

companies could be incentivised andor penalised to give adequate notice to workers and other stakeholders

that closure may be impending and alternative economic opportunities need to be developed

6) Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

Involving the relevant unions in the planning of community transitions can enable them to move towards

becoming more proactive agents helping to plan the transition with critical networks and specific knowledge

about the needs of their members When a coal-fired power station in Washington State USA was scheduled

for closure for environmental reasons unions played a pivotal role persuading environmentalists and others

to delay the closure long enough for a Just Transition to provide different jobs for the workers This made it

possible for the coal resource to be replaced by wind and other renewable generation rather than natural

gasmdasha better environmental outcome and the unions became an active part in the phase out planning

Unions have a heavy workload defending workers rights and pay They need to be supported and financed to

play important roles in community transitions From facilitation and leadership of planning bodies career

planning and advice preferential hiring for displaced workers in the new alternative emerging industries and

leading the establishment of work controlled cooperatives unions have an essential role to play

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

References

ABC Online (2014) Coal lsquogood for humanityrsquo Prime Minister Tony Abbott says at $39b Queensland mine opening httpwwwabcnetaunews2014-10-13coal-is-good-for-humanity-pm-tony-abbott-says5810244 Retrieved 10th of November 2015

After Coal (2015) Community Regeneration West Virginia United States httpaftercoalcomengage-your-community Retrieved 10th of November 2015

Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

Arabella Advisors (2015) Measuring the Growth of the Global Fossil Fuel Divestment and Clean Energy Investment Movement httpwwwarabellaadvisorscomwp-contentuploads201509Measuring-the-Growth-of-the-Divestment-Movementpdf Retrieved 10th of November 2015

Australian Bureau of Statistics (2014) Australian National Accounts State Accounts 2012ndash13 Canberra Australia Retrieved 10th of November 2015

Australian Bureau of Statistics (2015) MackaymdashCensus Employment by IndustrymdashTime Series Australian Government Department of Employment Retrieved 10th of November 2015

Australian Government Department for Education and Training (2015) Draft National Strategy for International Education Canberra Australian Capital Territory Retrieved 10th of November 2015

Australian Government (2014) Export income to Australia from international education activity in 2013ndash14 Canberra Australia Retrieved 10th of November 2015

BHP Billiton (2013) Coal Briefing httpwwwbhpbillitoncom~mediabhpdocumentsinvestorsreports2013130529_coalbriefingpdf Retrieved 10th of November 2015

Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

Beyond Zero Emissions (2012) Laggard to Leader How Australia Can Lead the World to Zero Carbon Prosperity Melbourne University Melbourne Victoria Retrieved 10th of November 2015

Beyond Zero Emissions (2014) A Fossil Economy in a Changing World Melbourne University Melbourne Victoria httpmediabzeorgaufossileconomyFossilEconomypdf Retrieved 10th of November 2015

Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

One Million Climate Job Campaign (2015) About London United Kingdom httpclimatejobsorgzaabout Retrieved 10th of November 2015

Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 35: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

JOBS AFTER COAL A Just Transition for Queensland | 25

5 A just transition for coal mining communities policy recommendations

The opportunities to transition from unsustainable coal mining to prosperous communities with decent

employment will not just materialise by themselves It will need the political will and the right incentives to

ensure that communities are not left fending for themselves with unemployment increasing and families

in need of long-term welfare But not only is the political will not currently there both major political

parties continue to support the expansion of this sunset industry and by doing so are making the transition

challenges progressively more difficult (Denniss 2012) For too many years governments have uncritically

supported the coal mining sector Entire government departments have been focused on facilitating mining

with tax incentives weakening assessment and approval processes along with providing through tax payer

money established industrial infrastructure to support new projects Government policy often seeks to grow

royalties income by supporting the extraction of as much coal as possible as an escape the challenge of

finding other ways to increase state revenue New sustainable industries in coal communities will need just as

much if not more support while it gets started

We propose that communities local businesses workers unions community groups environment groups

local government and state and federal governments all need to be involved in planning a transition to

alternative forms of economic development and providing new jobs We call this a Just Transition (Anthea

Bill amp Evans1 2008 Brecher 2012) Just Transition is a framework for a fair and sustainable shift to a low

carbon economy proposed by trade unions and supported by environmental NGOs A Just Transition holds

that a shift to a lower carbon economy is vital to avoid dangerous climate change

Bimblebox Nature Refuge

26 | JOBS AFTER COAL A Just Transition for Queensland

Tough targets to cut greenhouse pollution supported by new environmental regulations and emerging carbon

markets will transform the global economy over the next decade These shifts will have major implications

for working people in energy supply industry and transport and for everyone as consumers There is a concern

that significant periods of economic restructuring in the past have often happened in a chaotic fashion

leaving ordinary workers along with their families and communities to bear the brunt of the transition to

new ways of producing wealth A just transition seeks to prevent such injustice becoming a feature of this

transition suggesting that it would not only be morally wrong and socially damaging but would undermine the

credibility of the transition itself and could slow or even halt the changes that must be made

It is through the challenges of communicating the urgency of climate change and other social and

environmental impacts that much of the debate about coal and its consequences for land water and the

climate has become unnecessarily adversarial and polarised Coal mining and power generation communities

deserve acknowledgement and appreciation for all that they have historically and currently contributed to

our country and our economy In communicating the economic shifts that are taking place and facilitating

the necessary transitions the Australian community needs to be respectful of the history and identity of coal

communities Environment groups government unions and the community need to initiate and engage in

the discussions about transitions in an open honest and compassionate manner Only by approaching the

transition in this way can the adversarial nature of the debate be broken down to make way for transformative

mutually respectful and holistic solutions

Whitsundays lsquoHave a Heart for the Reefrsquo

JOBS AFTER COAL A Just Transition for Queensland | 27

A just transition recognises that support for policies are conditional on a fair distribution of the costs and

benefits of those policies across the economy A just transition should also recognise that the creation of

opportunities for active engagement by those affected in determining the future wellbeing of themselves

and their families is essential for the long term empowerment of citizens and communities The following

recommendations have been written with the aim of emphasising such community empowerment as a priority

Recommendations

1) Establishing a unit within the State Government to support coal mining regions to transition to new economies

Specific institutions are needed to develop transition plans They need to have strong government support

and funding regional offices and representation from diverse stakeholders A dedicated unit within the

Department of Infrastructure Local Government and Planning could be established to oversee this work

They could work on the ground in the main coal mining communities to bring government expertise into

regional entities that would develop local plans that involve and empower the whole community This unit

or a connected unit would analyse existing barriers to the creation of competitive advantages for alternative

sustainable industries and would identify actions the State Government can take to support such creation

Any policy and support should come with clear conditions and timeframes These regional entities would

need generous budgets to assist local groups to develop their transition strategies to support research re-

training and the development of new business and community start-up initiatives based on the needs and

strategies of communities The key to communities becoming economically resilient is high levels of autonomy

and freedom in shaping their economic futures Research funding available to the regional entities will be

essential to the empowerment of local leadership Research funding should at least reach the OECD research

funding average and it should prioritise low carbon technologies and industry sectors with increased triple

bottom line sustainability potential

2) Support community leadership in diversifying local economies through the establishment of democratic regional entities

In each mining community a group of traditional and non-traditional community leaders willing to think

beyond lsquoBusiness as Usualrsquo to imagine a better future could be called together to work in collaboration with

and be resourced by the state government managed regional entities mentioned in recommendation one

The leaders would come from diverse backgrounds such as from local governments business associations

unions farming groups renewable energy businesses and educational institutions The objectives of these

leadership groups would be tailored to each community The objectives would in broad terms be to increase

employment in new diverse industries based on sustainable production and publicservice sector job creation

Expert facilitation alongside inclusive and democratic community engagement initiatives would be essential

to ensure the process and environment for creativity and innovation is maximised To develop such groups

it would be necessary to take stock of the existing resources skills and successful businesses on which a

new future can be built In addition an analysis of the social environmental and economic needs of the

28 | JOBS AFTER COAL A Just Transition for Queensland

community would also be beneficial These groups could then establish economic diversification projects

including value-added local production worker controlled co-operative enterprises and new community-

based enterprises that economically empower the local community Activities may also include support for

alternative industries in regard to process restructuring or subsidising the wages of workers displaced from

higher paying traditional industries

3) Support researching and communicating how the just transition can take place

Consistent research is needed on the best options to support the state and national economies to transition

This requires ongoing situational analysis of the global energy market shifts at both government levels In

addition each mining region will need assistance to research the number of jobs that are dependent on coal

the skills of those employed the level of local national and global long- and short-term risk to local mining

operations the transferability of jobs to other industries local opportunities for new enterprises and their

needs and the local educational and training needs and resources A key issue requiring research will be

around how the transitition scenarios differ depending on the level and relativity of thermal and coking coal

industries across coal mining communities The process for sourcing this information at a local and state

government level should be integrated into a policy feedback loop to support cyclical situational analysis and

policy adjustments from all levels of government This research should take place at the state level and be

encouraged at the industry and local level through grants

Mackay Central Queensland

JOBS AFTER COAL A Just Transition for Queensland | 29

4) Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

Many existing Queensland industries including those not highlighted in this report have the potential to

carry Queensland towards a new sustainable economy [sC5]mdashbut they will need support to do so Instead

of continuing to support and lower costs for the coal mining industry we need a plan to grow competitive

advantage across industries that have potential for sustainability and growth in regional mining communities

Along with industry and community organisations the State Government could organise a State Economic

Summit to assess existing industry clusters identify the potential of new and emerging industries consider

their competitiveness and key capabilities and identify barriers to increasing competitive advantage The

findings and recommendations from this Summit could be used to inform the work of the Unit established in

bullet point one above and the research outlined in bullet point two

5) Provide social protection of workers their families and incomes

If mines close suddenly workers need protection for their incomes and social services and possible relocation

even though many miners these days do not live in the communities where they mine Ideally these transition

plans would be developed early enough to ensure that new employment opportunities are in place for them

before mines actually close For many workers this is already too late but if the process begins now there will

be choices available for future retrenched coal workers who live in mining communities and regions Mining

companies could be incentivised andor penalised to give adequate notice to workers and other stakeholders

that closure may be impending and alternative economic opportunities need to be developed

6) Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

Involving the relevant unions in the planning of community transitions can enable them to move towards

becoming more proactive agents helping to plan the transition with critical networks and specific knowledge

about the needs of their members When a coal-fired power station in Washington State USA was scheduled

for closure for environmental reasons unions played a pivotal role persuading environmentalists and others

to delay the closure long enough for a Just Transition to provide different jobs for the workers This made it

possible for the coal resource to be replaced by wind and other renewable generation rather than natural

gasmdasha better environmental outcome and the unions became an active part in the phase out planning

Unions have a heavy workload defending workers rights and pay They need to be supported and financed to

play important roles in community transitions From facilitation and leadership of planning bodies career

planning and advice preferential hiring for displaced workers in the new alternative emerging industries and

leading the establishment of work controlled cooperatives unions have an essential role to play

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

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Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

One Million Climate Job Campaign (2015) About London United Kingdom httpclimatejobsorgzaabout Retrieved 10th of November 2015

Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 36: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

26 | JOBS AFTER COAL A Just Transition for Queensland

Tough targets to cut greenhouse pollution supported by new environmental regulations and emerging carbon

markets will transform the global economy over the next decade These shifts will have major implications

for working people in energy supply industry and transport and for everyone as consumers There is a concern

that significant periods of economic restructuring in the past have often happened in a chaotic fashion

leaving ordinary workers along with their families and communities to bear the brunt of the transition to

new ways of producing wealth A just transition seeks to prevent such injustice becoming a feature of this

transition suggesting that it would not only be morally wrong and socially damaging but would undermine the

credibility of the transition itself and could slow or even halt the changes that must be made

It is through the challenges of communicating the urgency of climate change and other social and

environmental impacts that much of the debate about coal and its consequences for land water and the

climate has become unnecessarily adversarial and polarised Coal mining and power generation communities

deserve acknowledgement and appreciation for all that they have historically and currently contributed to

our country and our economy In communicating the economic shifts that are taking place and facilitating

the necessary transitions the Australian community needs to be respectful of the history and identity of coal

communities Environment groups government unions and the community need to initiate and engage in

the discussions about transitions in an open honest and compassionate manner Only by approaching the

transition in this way can the adversarial nature of the debate be broken down to make way for transformative

mutually respectful and holistic solutions

Whitsundays lsquoHave a Heart for the Reefrsquo

JOBS AFTER COAL A Just Transition for Queensland | 27

A just transition recognises that support for policies are conditional on a fair distribution of the costs and

benefits of those policies across the economy A just transition should also recognise that the creation of

opportunities for active engagement by those affected in determining the future wellbeing of themselves

and their families is essential for the long term empowerment of citizens and communities The following

recommendations have been written with the aim of emphasising such community empowerment as a priority

Recommendations

1) Establishing a unit within the State Government to support coal mining regions to transition to new economies

Specific institutions are needed to develop transition plans They need to have strong government support

and funding regional offices and representation from diverse stakeholders A dedicated unit within the

Department of Infrastructure Local Government and Planning could be established to oversee this work

They could work on the ground in the main coal mining communities to bring government expertise into

regional entities that would develop local plans that involve and empower the whole community This unit

or a connected unit would analyse existing barriers to the creation of competitive advantages for alternative

sustainable industries and would identify actions the State Government can take to support such creation

Any policy and support should come with clear conditions and timeframes These regional entities would

need generous budgets to assist local groups to develop their transition strategies to support research re-

training and the development of new business and community start-up initiatives based on the needs and

strategies of communities The key to communities becoming economically resilient is high levels of autonomy

and freedom in shaping their economic futures Research funding available to the regional entities will be

essential to the empowerment of local leadership Research funding should at least reach the OECD research

funding average and it should prioritise low carbon technologies and industry sectors with increased triple

bottom line sustainability potential

2) Support community leadership in diversifying local economies through the establishment of democratic regional entities

In each mining community a group of traditional and non-traditional community leaders willing to think

beyond lsquoBusiness as Usualrsquo to imagine a better future could be called together to work in collaboration with

and be resourced by the state government managed regional entities mentioned in recommendation one

The leaders would come from diverse backgrounds such as from local governments business associations

unions farming groups renewable energy businesses and educational institutions The objectives of these

leadership groups would be tailored to each community The objectives would in broad terms be to increase

employment in new diverse industries based on sustainable production and publicservice sector job creation

Expert facilitation alongside inclusive and democratic community engagement initiatives would be essential

to ensure the process and environment for creativity and innovation is maximised To develop such groups

it would be necessary to take stock of the existing resources skills and successful businesses on which a

new future can be built In addition an analysis of the social environmental and economic needs of the

28 | JOBS AFTER COAL A Just Transition for Queensland

community would also be beneficial These groups could then establish economic diversification projects

including value-added local production worker controlled co-operative enterprises and new community-

based enterprises that economically empower the local community Activities may also include support for

alternative industries in regard to process restructuring or subsidising the wages of workers displaced from

higher paying traditional industries

3) Support researching and communicating how the just transition can take place

Consistent research is needed on the best options to support the state and national economies to transition

This requires ongoing situational analysis of the global energy market shifts at both government levels In

addition each mining region will need assistance to research the number of jobs that are dependent on coal

the skills of those employed the level of local national and global long- and short-term risk to local mining

operations the transferability of jobs to other industries local opportunities for new enterprises and their

needs and the local educational and training needs and resources A key issue requiring research will be

around how the transitition scenarios differ depending on the level and relativity of thermal and coking coal

industries across coal mining communities The process for sourcing this information at a local and state

government level should be integrated into a policy feedback loop to support cyclical situational analysis and

policy adjustments from all levels of government This research should take place at the state level and be

encouraged at the industry and local level through grants

Mackay Central Queensland

JOBS AFTER COAL A Just Transition for Queensland | 29

4) Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

Many existing Queensland industries including those not highlighted in this report have the potential to

carry Queensland towards a new sustainable economy [sC5]mdashbut they will need support to do so Instead

of continuing to support and lower costs for the coal mining industry we need a plan to grow competitive

advantage across industries that have potential for sustainability and growth in regional mining communities

Along with industry and community organisations the State Government could organise a State Economic

Summit to assess existing industry clusters identify the potential of new and emerging industries consider

their competitiveness and key capabilities and identify barriers to increasing competitive advantage The

findings and recommendations from this Summit could be used to inform the work of the Unit established in

bullet point one above and the research outlined in bullet point two

5) Provide social protection of workers their families and incomes

If mines close suddenly workers need protection for their incomes and social services and possible relocation

even though many miners these days do not live in the communities where they mine Ideally these transition

plans would be developed early enough to ensure that new employment opportunities are in place for them

before mines actually close For many workers this is already too late but if the process begins now there will

be choices available for future retrenched coal workers who live in mining communities and regions Mining

companies could be incentivised andor penalised to give adequate notice to workers and other stakeholders

that closure may be impending and alternative economic opportunities need to be developed

6) Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

Involving the relevant unions in the planning of community transitions can enable them to move towards

becoming more proactive agents helping to plan the transition with critical networks and specific knowledge

about the needs of their members When a coal-fired power station in Washington State USA was scheduled

for closure for environmental reasons unions played a pivotal role persuading environmentalists and others

to delay the closure long enough for a Just Transition to provide different jobs for the workers This made it

possible for the coal resource to be replaced by wind and other renewable generation rather than natural

gasmdasha better environmental outcome and the unions became an active part in the phase out planning

Unions have a heavy workload defending workers rights and pay They need to be supported and financed to

play important roles in community transitions From facilitation and leadership of planning bodies career

planning and advice preferential hiring for displaced workers in the new alternative emerging industries and

leading the establishment of work controlled cooperatives unions have an essential role to play

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

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Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

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Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

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Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

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Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 37: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

JOBS AFTER COAL A Just Transition for Queensland | 27

A just transition recognises that support for policies are conditional on a fair distribution of the costs and

benefits of those policies across the economy A just transition should also recognise that the creation of

opportunities for active engagement by those affected in determining the future wellbeing of themselves

and their families is essential for the long term empowerment of citizens and communities The following

recommendations have been written with the aim of emphasising such community empowerment as a priority

Recommendations

1) Establishing a unit within the State Government to support coal mining regions to transition to new economies

Specific institutions are needed to develop transition plans They need to have strong government support

and funding regional offices and representation from diverse stakeholders A dedicated unit within the

Department of Infrastructure Local Government and Planning could be established to oversee this work

They could work on the ground in the main coal mining communities to bring government expertise into

regional entities that would develop local plans that involve and empower the whole community This unit

or a connected unit would analyse existing barriers to the creation of competitive advantages for alternative

sustainable industries and would identify actions the State Government can take to support such creation

Any policy and support should come with clear conditions and timeframes These regional entities would

need generous budgets to assist local groups to develop their transition strategies to support research re-

training and the development of new business and community start-up initiatives based on the needs and

strategies of communities The key to communities becoming economically resilient is high levels of autonomy

and freedom in shaping their economic futures Research funding available to the regional entities will be

essential to the empowerment of local leadership Research funding should at least reach the OECD research

funding average and it should prioritise low carbon technologies and industry sectors with increased triple

bottom line sustainability potential

2) Support community leadership in diversifying local economies through the establishment of democratic regional entities

In each mining community a group of traditional and non-traditional community leaders willing to think

beyond lsquoBusiness as Usualrsquo to imagine a better future could be called together to work in collaboration with

and be resourced by the state government managed regional entities mentioned in recommendation one

The leaders would come from diverse backgrounds such as from local governments business associations

unions farming groups renewable energy businesses and educational institutions The objectives of these

leadership groups would be tailored to each community The objectives would in broad terms be to increase

employment in new diverse industries based on sustainable production and publicservice sector job creation

Expert facilitation alongside inclusive and democratic community engagement initiatives would be essential

to ensure the process and environment for creativity and innovation is maximised To develop such groups

it would be necessary to take stock of the existing resources skills and successful businesses on which a

new future can be built In addition an analysis of the social environmental and economic needs of the

28 | JOBS AFTER COAL A Just Transition for Queensland

community would also be beneficial These groups could then establish economic diversification projects

including value-added local production worker controlled co-operative enterprises and new community-

based enterprises that economically empower the local community Activities may also include support for

alternative industries in regard to process restructuring or subsidising the wages of workers displaced from

higher paying traditional industries

3) Support researching and communicating how the just transition can take place

Consistent research is needed on the best options to support the state and national economies to transition

This requires ongoing situational analysis of the global energy market shifts at both government levels In

addition each mining region will need assistance to research the number of jobs that are dependent on coal

the skills of those employed the level of local national and global long- and short-term risk to local mining

operations the transferability of jobs to other industries local opportunities for new enterprises and their

needs and the local educational and training needs and resources A key issue requiring research will be

around how the transitition scenarios differ depending on the level and relativity of thermal and coking coal

industries across coal mining communities The process for sourcing this information at a local and state

government level should be integrated into a policy feedback loop to support cyclical situational analysis and

policy adjustments from all levels of government This research should take place at the state level and be

encouraged at the industry and local level through grants

Mackay Central Queensland

JOBS AFTER COAL A Just Transition for Queensland | 29

4) Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

Many existing Queensland industries including those not highlighted in this report have the potential to

carry Queensland towards a new sustainable economy [sC5]mdashbut they will need support to do so Instead

of continuing to support and lower costs for the coal mining industry we need a plan to grow competitive

advantage across industries that have potential for sustainability and growth in regional mining communities

Along with industry and community organisations the State Government could organise a State Economic

Summit to assess existing industry clusters identify the potential of new and emerging industries consider

their competitiveness and key capabilities and identify barriers to increasing competitive advantage The

findings and recommendations from this Summit could be used to inform the work of the Unit established in

bullet point one above and the research outlined in bullet point two

5) Provide social protection of workers their families and incomes

If mines close suddenly workers need protection for their incomes and social services and possible relocation

even though many miners these days do not live in the communities where they mine Ideally these transition

plans would be developed early enough to ensure that new employment opportunities are in place for them

before mines actually close For many workers this is already too late but if the process begins now there will

be choices available for future retrenched coal workers who live in mining communities and regions Mining

companies could be incentivised andor penalised to give adequate notice to workers and other stakeholders

that closure may be impending and alternative economic opportunities need to be developed

6) Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

Involving the relevant unions in the planning of community transitions can enable them to move towards

becoming more proactive agents helping to plan the transition with critical networks and specific knowledge

about the needs of their members When a coal-fired power station in Washington State USA was scheduled

for closure for environmental reasons unions played a pivotal role persuading environmentalists and others

to delay the closure long enough for a Just Transition to provide different jobs for the workers This made it

possible for the coal resource to be replaced by wind and other renewable generation rather than natural

gasmdasha better environmental outcome and the unions became an active part in the phase out planning

Unions have a heavy workload defending workers rights and pay They need to be supported and financed to

play important roles in community transitions From facilitation and leadership of planning bodies career

planning and advice preferential hiring for displaced workers in the new alternative emerging industries and

leading the establishment of work controlled cooperatives unions have an essential role to play

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

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ABC Online (2014) Coal lsquogood for humanityrsquo Prime Minister Tony Abbott says at $39b Queensland mine opening httpwwwabcnetaunews2014-10-13coal-is-good-for-humanity-pm-tony-abbott-says5810244 Retrieved 10th of November 2015

After Coal (2015) Community Regeneration West Virginia United States httpaftercoalcomengage-your-community Retrieved 10th of November 2015

Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

Arabella Advisors (2015) Measuring the Growth of the Global Fossil Fuel Divestment and Clean Energy Investment Movement httpwwwarabellaadvisorscomwp-contentuploads201509Measuring-the-Growth-of-the-Divestment-Movementpdf Retrieved 10th of November 2015

Australian Bureau of Statistics (2014) Australian National Accounts State Accounts 2012ndash13 Canberra Australia Retrieved 10th of November 2015

Australian Bureau of Statistics (2015) MackaymdashCensus Employment by IndustrymdashTime Series Australian Government Department of Employment Retrieved 10th of November 2015

Australian Government Department for Education and Training (2015) Draft National Strategy for International Education Canberra Australian Capital Territory Retrieved 10th of November 2015

Australian Government (2014) Export income to Australia from international education activity in 2013ndash14 Canberra Australia Retrieved 10th of November 2015

BHP Billiton (2013) Coal Briefing httpwwwbhpbillitoncom~mediabhpdocumentsinvestorsreports2013130529_coalbriefingpdf Retrieved 10th of November 2015

Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

Beyond Zero Emissions (2012) Laggard to Leader How Australia Can Lead the World to Zero Carbon Prosperity Melbourne University Melbourne Victoria Retrieved 10th of November 2015

Beyond Zero Emissions (2014) A Fossil Economy in a Changing World Melbourne University Melbourne Victoria httpmediabzeorgaufossileconomyFossilEconomypdf Retrieved 10th of November 2015

Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

One Million Climate Job Campaign (2015) About London United Kingdom httpclimatejobsorgzaabout Retrieved 10th of November 2015

Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 38: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

28 | JOBS AFTER COAL A Just Transition for Queensland

community would also be beneficial These groups could then establish economic diversification projects

including value-added local production worker controlled co-operative enterprises and new community-

based enterprises that economically empower the local community Activities may also include support for

alternative industries in regard to process restructuring or subsidising the wages of workers displaced from

higher paying traditional industries

3) Support researching and communicating how the just transition can take place

Consistent research is needed on the best options to support the state and national economies to transition

This requires ongoing situational analysis of the global energy market shifts at both government levels In

addition each mining region will need assistance to research the number of jobs that are dependent on coal

the skills of those employed the level of local national and global long- and short-term risk to local mining

operations the transferability of jobs to other industries local opportunities for new enterprises and their

needs and the local educational and training needs and resources A key issue requiring research will be

around how the transitition scenarios differ depending on the level and relativity of thermal and coking coal

industries across coal mining communities The process for sourcing this information at a local and state

government level should be integrated into a policy feedback loop to support cyclical situational analysis and

policy adjustments from all levels of government This research should take place at the state level and be

encouraged at the industry and local level through grants

Mackay Central Queensland

JOBS AFTER COAL A Just Transition for Queensland | 29

4) Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

Many existing Queensland industries including those not highlighted in this report have the potential to

carry Queensland towards a new sustainable economy [sC5]mdashbut they will need support to do so Instead

of continuing to support and lower costs for the coal mining industry we need a plan to grow competitive

advantage across industries that have potential for sustainability and growth in regional mining communities

Along with industry and community organisations the State Government could organise a State Economic

Summit to assess existing industry clusters identify the potential of new and emerging industries consider

their competitiveness and key capabilities and identify barriers to increasing competitive advantage The

findings and recommendations from this Summit could be used to inform the work of the Unit established in

bullet point one above and the research outlined in bullet point two

5) Provide social protection of workers their families and incomes

If mines close suddenly workers need protection for their incomes and social services and possible relocation

even though many miners these days do not live in the communities where they mine Ideally these transition

plans would be developed early enough to ensure that new employment opportunities are in place for them

before mines actually close For many workers this is already too late but if the process begins now there will

be choices available for future retrenched coal workers who live in mining communities and regions Mining

companies could be incentivised andor penalised to give adequate notice to workers and other stakeholders

that closure may be impending and alternative economic opportunities need to be developed

6) Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

Involving the relevant unions in the planning of community transitions can enable them to move towards

becoming more proactive agents helping to plan the transition with critical networks and specific knowledge

about the needs of their members When a coal-fired power station in Washington State USA was scheduled

for closure for environmental reasons unions played a pivotal role persuading environmentalists and others

to delay the closure long enough for a Just Transition to provide different jobs for the workers This made it

possible for the coal resource to be replaced by wind and other renewable generation rather than natural

gasmdasha better environmental outcome and the unions became an active part in the phase out planning

Unions have a heavy workload defending workers rights and pay They need to be supported and financed to

play important roles in community transitions From facilitation and leadership of planning bodies career

planning and advice preferential hiring for displaced workers in the new alternative emerging industries and

leading the establishment of work controlled cooperatives unions have an essential role to play

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

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After Coal (2015) Community Regeneration West Virginia United States httpaftercoalcomengage-your-community Retrieved 10th of November 2015

Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

Arabella Advisors (2015) Measuring the Growth of the Global Fossil Fuel Divestment and Clean Energy Investment Movement httpwwwarabellaadvisorscomwp-contentuploads201509Measuring-the-Growth-of-the-Divestment-Movementpdf Retrieved 10th of November 2015

Australian Bureau of Statistics (2014) Australian National Accounts State Accounts 2012ndash13 Canberra Australia Retrieved 10th of November 2015

Australian Bureau of Statistics (2015) MackaymdashCensus Employment by IndustrymdashTime Series Australian Government Department of Employment Retrieved 10th of November 2015

Australian Government Department for Education and Training (2015) Draft National Strategy for International Education Canberra Australian Capital Territory Retrieved 10th of November 2015

Australian Government (2014) Export income to Australia from international education activity in 2013ndash14 Canberra Australia Retrieved 10th of November 2015

BHP Billiton (2013) Coal Briefing httpwwwbhpbillitoncom~mediabhpdocumentsinvestorsreports2013130529_coalbriefingpdf Retrieved 10th of November 2015

Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

Beyond Zero Emissions (2012) Laggard to Leader How Australia Can Lead the World to Zero Carbon Prosperity Melbourne University Melbourne Victoria Retrieved 10th of November 2015

Beyond Zero Emissions (2014) A Fossil Economy in a Changing World Melbourne University Melbourne Victoria httpmediabzeorgaufossileconomyFossilEconomypdf Retrieved 10th of November 2015

Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

One Million Climate Job Campaign (2015) About London United Kingdom httpclimatejobsorgzaabout Retrieved 10th of November 2015

Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 39: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

JOBS AFTER COAL A Just Transition for Queensland | 29

4) Convene a just transitions state economic summit to identify socially and environmentally sustainable economic opportunities in mining communities

Many existing Queensland industries including those not highlighted in this report have the potential to

carry Queensland towards a new sustainable economy [sC5]mdashbut they will need support to do so Instead

of continuing to support and lower costs for the coal mining industry we need a plan to grow competitive

advantage across industries that have potential for sustainability and growth in regional mining communities

Along with industry and community organisations the State Government could organise a State Economic

Summit to assess existing industry clusters identify the potential of new and emerging industries consider

their competitiveness and key capabilities and identify barriers to increasing competitive advantage The

findings and recommendations from this Summit could be used to inform the work of the Unit established in

bullet point one above and the research outlined in bullet point two

5) Provide social protection of workers their families and incomes

If mines close suddenly workers need protection for their incomes and social services and possible relocation

even though many miners these days do not live in the communities where they mine Ideally these transition

plans would be developed early enough to ensure that new employment opportunities are in place for them

before mines actually close For many workers this is already too late but if the process begins now there will

be choices available for future retrenched coal workers who live in mining communities and regions Mining

companies could be incentivised andor penalised to give adequate notice to workers and other stakeholders

that closure may be impending and alternative economic opportunities need to be developed

6) Supporting Unions to play leadership roles in social dialogues and to lead worker engagement

Involving the relevant unions in the planning of community transitions can enable them to move towards

becoming more proactive agents helping to plan the transition with critical networks and specific knowledge

about the needs of their members When a coal-fired power station in Washington State USA was scheduled

for closure for environmental reasons unions played a pivotal role persuading environmentalists and others

to delay the closure long enough for a Just Transition to provide different jobs for the workers This made it

possible for the coal resource to be replaced by wind and other renewable generation rather than natural

gasmdasha better environmental outcome and the unions became an active part in the phase out planning

Unions have a heavy workload defending workers rights and pay They need to be supported and financed to

play important roles in community transitions From facilitation and leadership of planning bodies career

planning and advice preferential hiring for displaced workers in the new alternative emerging industries and

leading the establishment of work controlled cooperatives unions have an essential role to play

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

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After Coal (2015) Community Regeneration West Virginia United States httpaftercoalcomengage-your-community Retrieved 10th of November 2015

Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

Arabella Advisors (2015) Measuring the Growth of the Global Fossil Fuel Divestment and Clean Energy Investment Movement httpwwwarabellaadvisorscomwp-contentuploads201509Measuring-the-Growth-of-the-Divestment-Movementpdf Retrieved 10th of November 2015

Australian Bureau of Statistics (2014) Australian National Accounts State Accounts 2012ndash13 Canberra Australia Retrieved 10th of November 2015

Australian Bureau of Statistics (2015) MackaymdashCensus Employment by IndustrymdashTime Series Australian Government Department of Employment Retrieved 10th of November 2015

Australian Government Department for Education and Training (2015) Draft National Strategy for International Education Canberra Australian Capital Territory Retrieved 10th of November 2015

Australian Government (2014) Export income to Australia from international education activity in 2013ndash14 Canberra Australia Retrieved 10th of November 2015

BHP Billiton (2013) Coal Briefing httpwwwbhpbillitoncom~mediabhpdocumentsinvestorsreports2013130529_coalbriefingpdf Retrieved 10th of November 2015

Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

Beyond Zero Emissions (2012) Laggard to Leader How Australia Can Lead the World to Zero Carbon Prosperity Melbourne University Melbourne Victoria Retrieved 10th of November 2015

Beyond Zero Emissions (2014) A Fossil Economy in a Changing World Melbourne University Melbourne Victoria httpmediabzeorgaufossileconomyFossilEconomypdf Retrieved 10th of November 2015

Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

One Million Climate Job Campaign (2015) About London United Kingdom httpclimatejobsorgzaabout Retrieved 10th of November 2015

Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 40: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

30 | JOBS AFTER COAL A Just Transition for Queensland

7) Provide training opportunities for coal workers and communities

Retraining is crucial Many mine workers and workers directly supporting industries are from other sectors

They were attracted by the high rates of pay and had to learn new skills to do their jobs Some of those

skills will be transferable to other industriesmdashquarries earthmoving for building electrical and wastewater

management trades Preventative action should be taken through mandating coal mining companies to

fund education and training for their workers that give them skills for other industries Funding should be

made available for training programs to assist retrenched workers from the coal industry to attain continued

retraining and re-education Re-education could include subsidising a worker at a full living income level for a

maximum of four years to undertake training for careers that support the establishment of the new economy in

their community

8) Mandate adequate security deposits and progressive signoff for best practice mine site rehabilitation

There are over 50000 abandoned mines in Australia and an estimated 15000 in Queensland alone (Hutton

2013) Effective management strategies are needed to prioritise and manage health safety environmental

and socioeconomic risks and opportunities that abandoned mines pose to mining communities Instead

the mis-management and poor application of weak government regulations means that many mines are still

being closed and not rehabilitated properly A common practice that must be eliminated is that liabilities

from large mine sites are sold on to smaller companies who after mining the remaining resources lack the

resources to rehabilitate mine sites to adequate standards (Hutton 2013) The Queensland Government can

choose to change this and by doing so create jobs in mining communities through restoring agricultural land

or by reforesting mine sites This can be achieved by increasing mining security deposits to ensure that the

full cost of third party mine site rehabilitation is progressively implemented and signed off by governments

throughout the life of the mine In addition action needs to be taken to prevent mining companies selling

off mines where they have not fulfilled their rehabilitation responsibilities Just as James Hardie was

prevented from moving its assets offshore into a subsidiary entity to avoid paying asbestos compo so too

the big mining companies should be prevented from lsquocutting freersquo loss making coal mines to get out of their

rehab responsibilities To take a holistic approach the Queensland Government should support the nationally

coordinated implementation of the AusIMM Abandoned Mines policy statement that includes the actions

described above and more detailed policy changes (Unger 2013)

9) Remove all subsidies and tax payer funded support to coal mining

Historically the Queensland Government has offered and provided incentives and added advantages to the

coal mining industry that have not been received in equal application by other industries (Peel 2014)

All subsidies to the coal industry should be reviewed to ensure this practice is not lsquodisadvantaging other

industries creating windfall profits or providing an implicit guarantee to support investment decisions that

turn out to be uncompetitiversquo (Hayman 2014)

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

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After Coal (2015) Community Regeneration West Virginia United States httpaftercoalcomengage-your-community Retrieved 10th of November 2015

Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

Arabella Advisors (2015) Measuring the Growth of the Global Fossil Fuel Divestment and Clean Energy Investment Movement httpwwwarabellaadvisorscomwp-contentuploads201509Measuring-the-Growth-of-the-Divestment-Movementpdf Retrieved 10th of November 2015

Australian Bureau of Statistics (2014) Australian National Accounts State Accounts 2012ndash13 Canberra Australia Retrieved 10th of November 2015

Australian Bureau of Statistics (2015) MackaymdashCensus Employment by IndustrymdashTime Series Australian Government Department of Employment Retrieved 10th of November 2015

Australian Government Department for Education and Training (2015) Draft National Strategy for International Education Canberra Australian Capital Territory Retrieved 10th of November 2015

Australian Government (2014) Export income to Australia from international education activity in 2013ndash14 Canberra Australia Retrieved 10th of November 2015

BHP Billiton (2013) Coal Briefing httpwwwbhpbillitoncom~mediabhpdocumentsinvestorsreports2013130529_coalbriefingpdf Retrieved 10th of November 2015

Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

Beyond Zero Emissions (2012) Laggard to Leader How Australia Can Lead the World to Zero Carbon Prosperity Melbourne University Melbourne Victoria Retrieved 10th of November 2015

Beyond Zero Emissions (2014) A Fossil Economy in a Changing World Melbourne University Melbourne Victoria httpmediabzeorgaufossileconomyFossilEconomypdf Retrieved 10th of November 2015

Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

One Million Climate Job Campaign (2015) About London United Kingdom httpclimatejobsorgzaabout Retrieved 10th of November 2015

Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 41: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

JOBS AFTER COAL A Just Transition for Queensland | 31

10) Sound investment and resource revenue management

Discussing what economic mechanisms will be needed and how they will operate will be an essential step

in ensuring funding is available for the policy measures below In many similar situations around the world

lsquoSeverance Trust Fundsrsquo otherwise known as Sovereign Wealth Funds set up specifically for diversifying

resource regions have been promoted and implemented such as in West Virginia (Boettner 2012) Along

with ending coal mining subsidies some part of the royalties from coal mining should be set aside to help

fund the transition Royalties are very low by international standards and should be increased to help fund the

Just Transition described Such funding could provide funds for industry-government partnerships that would

develop sustainable jobs in highly mining dependent regions especially those with few other opportunities for

their community

Carmichael River

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

References

ABC Online (2014) Coal lsquogood for humanityrsquo Prime Minister Tony Abbott says at $39b Queensland mine opening httpwwwabcnetaunews2014-10-13coal-is-good-for-humanity-pm-tony-abbott-says5810244 Retrieved 10th of November 2015

After Coal (2015) Community Regeneration West Virginia United States httpaftercoalcomengage-your-community Retrieved 10th of November 2015

Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

Arabella Advisors (2015) Measuring the Growth of the Global Fossil Fuel Divestment and Clean Energy Investment Movement httpwwwarabellaadvisorscomwp-contentuploads201509Measuring-the-Growth-of-the-Divestment-Movementpdf Retrieved 10th of November 2015

Australian Bureau of Statistics (2014) Australian National Accounts State Accounts 2012ndash13 Canberra Australia Retrieved 10th of November 2015

Australian Bureau of Statistics (2015) MackaymdashCensus Employment by IndustrymdashTime Series Australian Government Department of Employment Retrieved 10th of November 2015

Australian Government Department for Education and Training (2015) Draft National Strategy for International Education Canberra Australian Capital Territory Retrieved 10th of November 2015

Australian Government (2014) Export income to Australia from international education activity in 2013ndash14 Canberra Australia Retrieved 10th of November 2015

BHP Billiton (2013) Coal Briefing httpwwwbhpbillitoncom~mediabhpdocumentsinvestorsreports2013130529_coalbriefingpdf Retrieved 10th of November 2015

Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

Beyond Zero Emissions (2012) Laggard to Leader How Australia Can Lead the World to Zero Carbon Prosperity Melbourne University Melbourne Victoria Retrieved 10th of November 2015

Beyond Zero Emissions (2014) A Fossil Economy in a Changing World Melbourne University Melbourne Victoria httpmediabzeorgaufossileconomyFossilEconomypdf Retrieved 10th of November 2015

Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

One Million Climate Job Campaign (2015) About London United Kingdom httpclimatejobsorgzaabout Retrieved 10th of November 2015

Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 42: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

32 | JOBS AFTER COAL A Just Transition for Queensland

Conclusion

The reality of the coal industry in Queensland is that the concentration of its operations and employment

in coal communities is leaving communities in great risk of disruptive global economic change It is not

acceptable for the state as a whole to benefit from the royalties from coal while leaving the communities

working in the mines and in power stations with few economic alternatives or assistance to turn towards as the

industries sunset gets closer and closer

There is another economic future possible not only for coal mine workers but for coal mining communities

but governments need to take action to support communities to determine their future The State Government

should implement these recommendations as soon as possible to ensure that the future of coal communities

in Queensland is one of hope and excitement For any community in the presence of such a volatile and

aggressive industry support is needed to make a just transition and relieve the current uncertainty brought on

by such a risky industry

Polluted water from a Central Queensland mine

JOBS AFTER COAL A Just Transition for Queensland | 33

References

ABC Online (2014) Coal lsquogood for humanityrsquo Prime Minister Tony Abbott says at $39b Queensland mine opening httpwwwabcnetaunews2014-10-13coal-is-good-for-humanity-pm-tony-abbott-says5810244 Retrieved 10th of November 2015

After Coal (2015) Community Regeneration West Virginia United States httpaftercoalcomengage-your-community Retrieved 10th of November 2015

Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

Arabella Advisors (2015) Measuring the Growth of the Global Fossil Fuel Divestment and Clean Energy Investment Movement httpwwwarabellaadvisorscomwp-contentuploads201509Measuring-the-Growth-of-the-Divestment-Movementpdf Retrieved 10th of November 2015

Australian Bureau of Statistics (2014) Australian National Accounts State Accounts 2012ndash13 Canberra Australia Retrieved 10th of November 2015

Australian Bureau of Statistics (2015) MackaymdashCensus Employment by IndustrymdashTime Series Australian Government Department of Employment Retrieved 10th of November 2015

Australian Government Department for Education and Training (2015) Draft National Strategy for International Education Canberra Australian Capital Territory Retrieved 10th of November 2015

Australian Government (2014) Export income to Australia from international education activity in 2013ndash14 Canberra Australia Retrieved 10th of November 2015

BHP Billiton (2013) Coal Briefing httpwwwbhpbillitoncom~mediabhpdocumentsinvestorsreports2013130529_coalbriefingpdf Retrieved 10th of November 2015

Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

Beyond Zero Emissions (2012) Laggard to Leader How Australia Can Lead the World to Zero Carbon Prosperity Melbourne University Melbourne Victoria Retrieved 10th of November 2015

Beyond Zero Emissions (2014) A Fossil Economy in a Changing World Melbourne University Melbourne Victoria httpmediabzeorgaufossileconomyFossilEconomypdf Retrieved 10th of November 2015

Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

One Million Climate Job Campaign (2015) About London United Kingdom httpclimatejobsorgzaabout Retrieved 10th of November 2015

Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 43: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

JOBS AFTER COAL A Just Transition for Queensland | 33

References

ABC Online (2014) Coal lsquogood for humanityrsquo Prime Minister Tony Abbott says at $39b Queensland mine opening httpwwwabcnetaunews2014-10-13coal-is-good-for-humanity-pm-tony-abbott-says5810244 Retrieved 10th of November 2015

After Coal (2015) Community Regeneration West Virginia United States httpaftercoalcomengage-your-community Retrieved 10th of November 2015

Allen S (2011) Renewable Energy for Far North Queensland Cairns and Far North Queensland Environment Centre Cairns Queensland Retrieved 10th of November 2015

Arabella Advisors (2015) Measuring the Growth of the Global Fossil Fuel Divestment and Clean Energy Investment Movement httpwwwarabellaadvisorscomwp-contentuploads201509Measuring-the-Growth-of-the-Divestment-Movementpdf Retrieved 10th of November 2015

Australian Bureau of Statistics (2014) Australian National Accounts State Accounts 2012ndash13 Canberra Australia Retrieved 10th of November 2015

Australian Bureau of Statistics (2015) MackaymdashCensus Employment by IndustrymdashTime Series Australian Government Department of Employment Retrieved 10th of November 2015

Australian Government Department for Education and Training (2015) Draft National Strategy for International Education Canberra Australian Capital Territory Retrieved 10th of November 2015

Australian Government (2014) Export income to Australia from international education activity in 2013ndash14 Canberra Australia Retrieved 10th of November 2015

BHP Billiton (2013) Coal Briefing httpwwwbhpbillitoncom~mediabhpdocumentsinvestorsreports2013130529_coalbriefingpdf Retrieved 10th of November 2015

Baker D R (2014) In the Depths The Economist httpwwweconomistcomnewsbusiness21647287-more-countries-turn-against-coal-producers-face-prolonged-weakness-prices-depths Retrieved 10th of November 2015

Baxter C Fitzsimons J amp Penwarden P (2014) Jobs after Coal Auckland New Zealand httpscoalactionnetworkaotearoafileswordpresscom201405jobs_after_coal_may2104_lowrespdf Retrieved 10th of November 2015

Beyond Zero Emissions (2012) Laggard to Leader How Australia Can Lead the World to Zero Carbon Prosperity Melbourne University Melbourne Victoria Retrieved 10th of November 2015

Beyond Zero Emissions (2014) A Fossil Economy in a Changing World Melbourne University Melbourne Victoria httpmediabzeorgaufossileconomyFossilEconomypdf Retrieved 10th of November 2015

Bill A Mitchell W Welters R Rutovitz J amp Evans G (2008) A Just Transition to a Renewable Energy Economy in the Hunter Region Australia Policy report to Greenpeace Australia Pacific by Center of Full Employment and Equity

Bleby M (2013 June 20th 2013) Mackay struggles with mining boomrsquos end Australian Financial Review httpwwwafrcommarketscommoditiesmetalsmackay-struggles-with-mining-booms-end-20130620-jhnal Retrieved 10th of November 2015

Boettner T Kriesky J McIlmoil R amp Paulhus E (2012) Creating an economic diversification trust fund Turning nonrenewable natural resources into sustainable wealth for West Virginia Centre for Finance and Budget Policy West Virginga United States Retrieved 10th of November 2015

Branco J (2015) Adani Carmichael mine to create 1464 jobs not 10000 Brisbane Times httpwwwbrisbanetimescomauqueenslandadani-carmichael-mine-to-create-1464-jobs-not-10000-20150427-1mumbghtml Retrieved 10th of November 2015

Brecher J (2012) Jobs Beyond Coal A Manual for Communities Workers and Environmentalists Asia Pacific Green Jobs Network Retrieved 23 June 2015

Buckley T (2014) Briefing Note Fossil Fuels Energy Transition amp Risk Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201407IEEFA-Briefing-Note_Investor-Briefing_21-July-2014pdf Retrieved 10th of November 2015

Buckley T (2015a) Adani Remote Prospects Institute for Energy Economics and Financial Analysis Sydney Australia httpieefaorgwp-contentuploads201509IEEFA-Briefing-Note_Adani-Remote-Prospects_Sept-2015pdf Retrieved 10th of November 2015

Buckley T (2015b) Global Energy Markets in Transition Institute for Energy Economics and Financial Analysis Sydney Australia httpwwwieefaorgwp-contentuploads201501IEEFA-BRIEFING-NOTE-Global-Energy-Markets-in-Transition_Final_15Jan2015pdf Retrieved 10th of November 2015

Buckley T (2015c) Rio Tintorsquos Restructuring Signals a Global Industry Step Away From Coal Institute for Energy Economics and Financial Analysis httpieefaorgrio-tintos-restructuring-signals-a-global-industry-step-away-from-coal Retrieved 10th of November 2015

Burrell A (2014) Coal facing a lsquostructural declinersquo The Australian Sydney Australiahttpwwwtheaustraliancomaubusinessin-depthcoal-facing-a-structural-declinestory-fnivd8cj-1226671643971 Retrieved 10th of November 2015

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

One Million Climate Job Campaign (2015) About London United Kingdom httpclimatejobsorgzaabout Retrieved 10th of November 2015

Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 44: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

34 | JOBS AFTER COAL A Just Transition for Queensland

Caldecott B Tilbury J amp Ma Y (2013) Stranded Down Under Environment-related factors changing Chinarsquos demand for coal and what this means for Australian coal assets Oxford University United Kingdom

Campaign Against Climate Change (2010) One Million Climate Jobs London United Kingdom httpwwwcampaignccorggreenjobs Retrieved 10th of November 2015

Campbell R (2014) The Mouse That Roars Coal in the Queensland Economy The Australia Institute Canberra Australia Carbon Tracker (2015) Unburnable CarbonmdashAre the worldrsquos financial markets carrying a carbon bubble httpwwwcarbontrackerorgreportcarbon-bubble Retrieved 10th of November 2015

Carrington D (2015) Worldrsquos biggest sovereign wealth fund dumps dozens of coal companies The Guardian 5 httpwwwtheguardiancomenvironment2015feb05worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies Retrieved 10th of November 2015

Centre for Strategic and International Studies (2015) Politics of Climate Change in Asia httpcsisorgprogrampolitics-climate-change-asia Retrieved 10th of November 2015

Clarke P (2014) FTSE joins Blackrock to help investors avoid fossil fuels Financial Times wwwftcomcmss014787a44-cef6-11e3-ac8d-00144feabdc0html Retrieved 10th of November 2015

Cleary P (2015) Coal Crash What it means for Australia The Monthly Essay October 2015

Coulter T (2015) We Traveled Across China and Returned Terrified for the Economy BloombergBusiness httpwwwbloombergcomnewsarticles2015-04-09we-travelled-across-china-and-returned-terrified-for-the-economy Retrieved 10th of November 2015

Cox L (2015) Complaint lodged with ASX over Adani job claims for Carmichael mine The Sydney Morning Herald httpwwwsmhcomaubusinessmining-and-resourcescomplaint-lodged-with-asx-over-adani-job-claims-for-carmichael-mine-20150513-gh0tblhtml Retrieved 10th of November 2015

Deloitte Access Economics (2012) Queensland TourismmdashIndustry Outlook and Potential to 2020 Department of Tourism Major Events Small Business and Commonwealth Games Queensland Government Brisbane Queensland Retrieved 10th of November 2015

Deloitte Access Economics (2014) Economic impact of a future tropical biorefinery industry in Queensland Prepared for qutbluebox Canberra Australia

Denniss R (2012) Too much of a good thing The Australia Institute Canberra Australia

Dove (2015) Dove Workshop 2015 httpwwwdoveworkshoporguk Retrieved 10th of November 2015

Dr Tien Duc Pham G B Justin Marshall (2015) The economic impact of the current mining boom on the Australian tourism industry Tourism Research Australia Department of Resources Energy and Tourism Canberra Australia

Earthworker Cooperative (2015) About Us Melbourne Victoria httpearthworkercooperativecomauour-mission Retrieved 10th of November 2015

Edis T (2015) Frydenberg Adani lsquoneeds to stand on its own two feetrsquo Climate Spectator httpwwwbusinessspectatorcomauarticle2015109policy-politicsfrydenberg-adani-needs-stand-its-own-two-feet Retrieved 10th of November 2015

Greenpeace Australia Pacific (2012) Cooking the Climate Wrecking the Reef Sydney NSW Australia

Guterres E (2014) Queensland looks to Asia for tourism growth Commonwealth Bank httpswwwmywealthcommbankcomaueconomyqueensland-looks-to-asia-to-build-tourism-growth-news20140918 Retrieved 10th of November 2015

Hayman M (2014) All Boom No BenefitmdashWhy Queensland needs a new economic strategy Centre for Policy Development Sydney New South Wales

Health and Community Services Workforce Council (2013) Health and Community Services Industry Skills and Workforce Development Report 2013 Brisbane Queensland

Heath J (2014) lsquoNot Asiarsquos food bowl Joyce Queensland Country Life Retrieved 10th of November 2015

Hewson J (2015) The real villains in Australiarsquos renewables debacle Three big energy companies The Guardian httpwww theguardiancomcommentisfree2015mar26the-real-villains-in-australias-renewables-debacle-three-big-energy-companies Retrieved 10th of November 2015

Hintermann F (2013) Third Industrial Revolution Master Plan Nord-Pas de Calais region TIR Consulting Group LLC Paris France

Hope M (2014) Climate policy goes commercial EON takes advantage of the new economics of a low carbon energy market Carbon Brief httpwwwcarbonbrieforgclimate-policy-goes-commercial-e-on-takes-advantage-of-the-new-economics-of-a-low-carbon-energy- market Retrieved 10th of November 2015

Hutton D (2013) Mining the Queensland Way Lock the Gate Brisbane Queensland

IPCC (2007) Climate Change 2007 The Physical Science Basis Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

IPCC (2013) Climate Change 2013 Summary for Policymakers Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change Cambridge University Press Cambridge United Kingdom

Jenda M (2015) New coal mines have Buckleyrsquos chance as China cuts consumption analyst ABC Online httpwwwabcnetaunews2015-03-23coal-mines-have-buckleys-chance-as-china-cuts-consumption6341996 Retrieved 10th of November 2015

Kentuckians for the Commonwealth (2015) New Energy and Transition Kentucky United States httpswwwkftcorgissuesnew-energy-and-transition Retrieved 18th of May 2015

Leaton J (2013) Unburnable Carbon 2013 Wasted Capital and Stranded Assets London UK Retrieved 10th of November 2015

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

One Million Climate Job Campaign (2015) About London United Kingdom httpclimatejobsorgzaabout Retrieved 10th of November 2015

Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 45: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

JOBS AFTER COAL A Just Transition for Queensland | 35

Macleod M (2013) US Steel Natural gas process will soon replace coke Hamilton Spectator httpwwwthespeccomnews-story4190319-u-s-steel-natural-gas-process-will-soon-replace-coke Retrieved 10th of November 2015

Mathieson K (2015) Gas surges ahead of coal in US power generation The Guardian httpwwwtheguardiancomenvironment2015jul14gas-surges-ahead-of-coal-in-us-power-generation Retrieved 10th of November 2015

McGuiggan R (2014) Tropical North Queensland The Potential for international education in a changing education environment James Cook University Cairns Queensland

Neubauer I (2015) The Aussie towns destroyed by Chinarsquos economic slowdown Newscomau httpwwwnewscomaufinancebusinessthe-aussie-towns-destroyed-by-chinas-economic-slowdownstory-fnkgdg1h-1227262601440 Retrieved 10th of November 2015

Ng J (2015) Pimco Warns on China Steel as Goldman Sees Production Declining Bloomberg Businesshttpwwwbloombergcomnewsarticles2015-03-13pimco-warns-on-china-s-steel-demand-outlook-as-housing-cools Retrieved 10th of November 2015

One Million Climate Job Campaign (2015) About London United Kingdom httpclimatejobsorgzaabout Retrieved 10th of November 2015

Paton J (2013) Renewable Energy now cheaper than new fossil fuels in Australia Bloomberg New Energy Finance httpwwwbloombergcomnewsarticles2013-02-06australia-wind-energy-cheaper-than-coal-natural-gas-bnef-says Retrieved 10th of November 2015

Peel C amp Denniss R (2014) Mining the age of entitlement State government assistance to the minerals and fossil fuel sector The Australia Institute Canberra Australian Capital Territory

Quandlcom (2015) Coal Markets httpswwwquandlcomcollectionsmarketscoal Retrieved 10th of November 2015

Queensland Aquacultural Industry Federation (2015) Industry Strategy httpwwwaquaculturequeenslandcomaboutindustry-strategyhtml Retrieved 10th of November 2015

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government (2014) The Queensland Plan Queenslandersrsquo 30-year vision Retrieved 10th of November Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2014) Queensland Coal Industry 5 Year Summary 2012ndash13 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2009) The Queensland Renewable Energy Plan A Clean Energy Future for Queensland Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Discussion paper Strategic direction for the development of the Queensland bio-based industrial products sector July 2010 Brisbane Queensland

Queensland Government Department of Employment Economic Development and Innovation (2010) Strategic directions for development of the Queensland bio-based industrial products sector Brisbane Queensland

Queensland Government Department of Natural Resources and Mines (2013) Queenslandrsquos coalmdashmines and advanced projects analysis of company websites and annual reports Brisbane Queensland

Queensland Government Department of Local Government and Planning (2012) The Mackay Isaac and Whitsunday Regional Plan Mackay Isaac and Whitsunday Regional Planning Committee Brisbane Queensland

Queensland Government Department of Agriculture Fisheries and Forestry (2012) Queenslandrsquos Agricultural Strategy A 2040 vision to double the value of production Brisbane Queensland

Queensland Tourism Industry Council (2015) Home Page httpswwwqticcomau Retrieved 10th of November 2015

Parkinson G (2015) Queensland Commits to 50 Renewable Target by 2030 REneweconomy httpreneweconomycomau2015queensland-commits-to-50-renewable-target-by-2030 Retrieved 10th of November 2015

Regional Economic Development Corporation (2012) Mackay Local Government Area Regional Economic Profile Mackay Queensland

Regional Economic Development Corporation (2013) Regional Economic Profile MackaymdashIsaacmdashWhitsunday March 2013 Mackay Queensland Retrieved 10th of November 2015

Regional Economic Development Corporation (2014) Report Business Lifestyle Opportunity Mackay Queensland Retrieved 10th of November 2015

Riftkin J (2015) The Third Industrial Revolution httpthethirdindustrialrevolutioncom Retrieved 10th of November 2015

Robins B (2014 August 12) Coal mining downturn to be prolonged Sydney Morning Herald httpwwwsmhcomaubusinesscarbon-economycoal-mining-downturn-to-be-prolonged-citi-20140812-1034fihtml Retrieved 10th of November 2015

Rohr D (2014) Burned Out Chinarsquos Rebalancing Heralds the End of Coalrsquos Growth Story Morningstar httpwwwmorningstarcomadvisorstocksstorage-technologyhtm Retrieved 10th of November 2015

Ryan P (2015) Newcastle Council abandons fossil fuel investments ABC Online httpwwwabcnetaunews2015-08-27newcastle-abandons-fossil-fuel-investments6728900 Retrieved 10th of November 2015

Sandersen H (2015) Sinking iron ore price hits smaller producers Financial Times httpwwwftcomintlcms Retrieved 10th of November 2015

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 46: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

36 | JOBS AFTER COAL A Just Transition for Queensland

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 47: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

JOBS AFTER COAL A Just Transition for Queensland | 37

Saunders A (2015) Coal always wins and will stay No1 says carbon king Boyce Australian Financial Review httpwwwafrcompbusinesscompaniescoal_always_wins_and_will_stay_boyce_c14YrmhAsWrqh02HpCb82H Retrieved 10th of November 2015

Spelitis (2015) New net-free zones stun commerical fisherman The Observer httpwwwgladstoneobservercomaunewsnew-no-go-zones-stun-fishermen2555334 Retrieved 10th of November 2015

Stanford J (2014) What are the Benefits of Mining in Queensland Brisbane Queensland Retrieved 10th of November 2015

Stuart N (2011) Orkney Islands provide a glimpse of a renewable energy future The Guardian httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Mayer S (2015) Diversify now warns UN climate boss Christiana Figueres The Australian Sydney Australia httpwwwtheaustraliancomaunational-affairsclimatediversify-now-warns-un-climate-boss-christiana-figueresstory-e6frg6xf-1227339401031sv=9e61d05ecac1a06d643df37e8425d1a5 Retrieved 10th of November 2015

The Climate Institute (2011) Clean Energy Jobs Snapshot Regional Queensland Sydney New South Wales

The Solar Foundation (2015) Solar Foundation Annual Report Washington DC United States httpwwwthesolarfoundationorgaboutannual-report Retrieved 10th of November 2015

Unger C (2013) Annex to The AusIMM Abandoned Mines policy statement Abandoned Mines an overview of current status and AusIMM membersrsquo perspectives AusIMM Sustainability Committee Australia

University of Queensland (2015) Australiarsquos first biodegradable plastic is reducing waste httpwwwuqeduauresearchresearch-at-uqbiodegradable-plastic Retrieved 10th of November 2015

Victorian Government Department of Water and Agriculture (2012) Inquiries Aquaculture Skills Formation StrategyWorkforce Action Plan httpwwwparliamentvicgovau Retrieved 10th of November 2015

Vorrath S (2014) Coal generates just 12 of Qld jobsmdashnot 13 ReNew Economy httpreneweconomycomau2014coal-generates-just-1-2-qld-jobs-13-74753 Retrieved 10th of November 2015

Wilson W T (2013) Hitting the Sweet Spot The Growth of the Middle Class in Emerging Markets Ernst and Young London UK httpwwwtheguardiancomenvironment2011sep20orkney-renewable-energy-future Retrieved 10th of November 2015

Photo Credits

Photos were used from the creative commons license Flickr by attribution

We would like to thank

Cover (and p9) Solar installation 100 Renewable

piindashiii Bowen Basin coal mine and surrounding land GreenpeaceTom Jefferson

p1 Queensland coal train Andrew Quilty

p3 Abbot Point Qld GreenpeaceTom Jefferson

p6 Windmill and wind farm Musselroe Wind Farm Tasmania Bob Burton

p10 Coal power station GreenpeaceSewell

p15 Grain harvest Kate Ausburn

p16 (collage) Vineyard in the Hunter Valley Sunflowers in the Loverpool Plains Cropland close up Cow Gloucester all Lock the Gate Alliance

p17 (collage) Aerial view of the Great Barrier Reef off the Whitsunday Islands GreenpeaceMichael Amendolia Schooling fairy basslets Great Barrier Reef GreensMPs

p19 Sorghum fields Spring Ridge Liverpool Plains NSW Max Phillips (Jeremy Buckingham MLC)

p20 Gemasolar solar thermal power station SpainGreenpeaceMarkel Redondo

p21 Queensland leading the solar charge Climate Commission (RIP)

p22 Hazelwood Power Station La Trobe Valley Vic Greenpeace Hunt

p25 Bimblebox Nature Refuge Neil Humphries

p26 Whitsundays ldquoHave a Heart for the Reefrdquo Corrin Stickland

p28 Mackay Queensland Australia Suzanne

p31 Carmichael River Tom Jefferson

p32 Polluted water from a Central Queensland mine Lock the Gate Alliance

IBC Farmland flanked by a mine Bulga NSW Kate Ausburn

BC Challicum Hills wind farm Vic Beyond Zero Emissions

Farmland flanked by a mine

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References
Page 48: A just transition for Queensland - Ahri Tallon, Organising ...€¦ · JOBS AFTER COAL: A Just Transition for Queensland | iii. Foreword. The coal industry’s impact on the state

Challicum Hills wind farm Victoria

wwwqldconservationorgau

350orgau

  • Jobs After Coal A just transition for Queensland (November 2015)
  • Publication details
  • Contents
  • Foreword
  • Executive summary
  • Key recommendations for the State Government of Queensland
  • 1Coalrsquos current role in the Queensland economy
    • Coal in the Queensland economy
    • Revenue and economic activity generated by the coal Industry
    • Coal industry jobs and their locations
    • Summary
      • 2The drivers of change in the coal industry
        • Drivers of change
        • The international coal price
        • International mining companies
        • The outlook for coal prices
        • The carbon bubble
        • Summary
          • 3Assessing some of the economic opportunities in mining regions
            • Introduction
            • Agriculture and aquaculture
            • Tourism and recreational fishing
            • Higher education
            • Bio-industrial products
            • Renewable energy
              • 4Community transitions Global case studies
                • La Trobe Valley
                • Banwen
                • Orkney
                • Nord-Pas De Calais
                • Appalachia (Kentucky)
                  • 5A just transition for coal mining communities policy recommendations
                    • Recommendations
                      • Conclusion
                      • References