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The Future of a Just Transition in Ukraine: Perceptions in Coal Mining Towns

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A REPORT ON THE RESULTS OF A SURVEY OF COAL MINING TOWN RESIDENTS IN THE DONETSK REGION For the local population to accept future changes, it is essential to engage on local and regional levels right from the start of planning the transition THE FUTURE OF A JUST The opening of new innovative enterprises, the development of small and TRANSITION IN medium-sized businesses will create new jobs and prevent the emergence of a new mono-industry. UKRAINE: PERCEPTIONS Dependence on a single economic mainstay must IN COAL MINING TOWNS be left in the past A report on the results of a survey of coal The interests and opinions of former miners should be mining town residents in the Donetsk Region taken into account when designing retraining programmes. At the same time, it is necessary to take the fundamental step of Edited by Anna Bogushenko, Maria Koval-Honchar, reprofiling higher and and Kostiantyn Krynytskyi vocational educational November 2020 institutions, which are located in mining communities, and graduate mining professionals. 1 FRIEDRICH-EBERT-STIFTUNG – THE FUTURE OF A JUST TRANSITION IN UKRAINE: PERCEPTIONS IN COAL MINING TOWNS THE FUTURE OF A JUST TRANSITION IN UKRAINE: PERCEPTIONS IN COAL MINING TOWNS A report on the results of a survey of coal mining town residents in the Donetsk Region CONTENTS Contents INTRODUCTION 5 1. PURPOSE OF THE SURVEY 7 2. SURVEY METHODOLOGY 9 3. FOCUS GROUP RESULTS 11 3.1 The current situation in the oblast ....................................... 11 3.2 The prospect of coal mine closures: Reactions and expectations .... 16 4. CONCLUSIONS 23 4.1 Problems facing urban areas ........................................... 23 4.2 The state of mines and employment prospects ....................... 23 4.3 Local expectations ....................................................... 24 5. RECOMMENDATIONS 25 3 FRIEDRICH-EBERT-STIFTUNG – THE FUTURE OF A JUST TRANSITION IN UKRAINE: PERCEPTIONS IN COAL MINING TOWNS 4 INTRODUCTION INTRODUCTION Ukraine’s Cabinet of Ministers plans to close the country’s Ukraine is not the first country in the world needing to unprofitable coal enterprises. In the next few years, the close down its coal industry. International experience process will accelerate, as Ukraine joined efforts to fight shows that only constructive dialogue between central climate change when it ratified the Paris Agreement in governments, local governments and local populations 2016 1. To contain global warming to 1.5–2 °C, as required in coal mining regions can ensure the successful shut- by scientists, the country plans to completely phase out down of local economic mainstays. All stakeholders need fossil fuels in the next 20‒30 years. to sit down at the negotiating table to address the transformation of coal regions, attract investment to On one hand, this is a fairly ambitious goal for the domestic establish new, environmentally friendly industries, energy sector, as over 30% of the country’s power is promote employment and retrain staff. generated using coal combustion 2. This approach is called a just transition: a model of On the other, according to the former Ministry of Energy regional development that provides decent life and fair and Coal Mining, Ukraine has closed down 68 state-owned earnings for all employees and communities affected by mining enterprises since 2004, with another 19 state- the process of fossil fuel phase-outs. owned mines are either being closed or prepared for shut-down. Currently, 29 of 33 state-owned mines are The issue of a just transition has appeared on the Ukrainian unprofitable and are only staying afloat thanks to government’s agenda over the past few years. multimillion-dollar annual subsidies from the state budget 3. At the national level, the Cabinet of Ministers set up the The country has been slowly winding down the coal Coordination Centre for the Transformation of Coal industry since becoming independent. Indeed, the Regions in May 2020. The centre involves government number of employees in the industry has plunged from officials, oblast state administrators, MPs, coal mining almost one million in 1991 to fewer than 40,000 in 2020. company officials, trade unions, and local government The key question is how this process has been undertaken. associations. Among their main responsibilities, the centre are supposed to analyse the real state of the economy Ukraine’s closure of coal mines appears to have been and social security in coal mining towns, and find new done without proper planning for socio-economic directions for local economies to develop and generate development in the affected oblasts, with broadly jobs. Plans are to develop a State Programme for the negative consequences. Local governments and the Transformation of the Coal Regions of Ukraine. residents of mining towns were not consulted when the process of mine closures began. In most cases, such In May 2019, six mining towns Donetsk Oblast — Vuhledar, mono-industry towns naturally went into economic Dobropillya, Pokrovsk, Myrnohrad, Novohrodivka, and decline while their residents migrated to other towns and Selydove—, the Donetsk Chamber of Commerce and oblasts. Industry, and three local NGOs joined forces at the oblast level to put together a Platform for the Sustainable Development of Coal Towns. The main goal is to come 1 The Paris Agreement was adopted on December 12, 2015, but up with alternative ways to develop these towns by signed in 2016. References sometimes mention either year. diversifying the local economy and implementing joint 2 Ministry of Energy, 2020. Information about the operation of the innovation projects. A seventh town, Toretsk, joined the power industry: <http://mpe.kmu.gov.ua/minugol/control/uk/ publish/officialcategory?cat_id=245183225>. Platform in March 2020. 3 Z. Vondrova et al., 2019, Transformation Experiences of Coal Re- gions: Recommendations for Ukraine (executive summary). <ht- Coal mining regions cannot undergo a just transition tps://en.ecoaction.org.ua/transformation-experiences-of-co- without the involvement of the local population and al-regions.html> consideration of its opinions and wishes. In order for 5 FRIEDRICH-EBERT-STIFTUNG – THE FUTURE OF A JUST TRANSITION IN UKRAINE: PERCEPTIONS IN COAL MINING TOWNS Photo: Niels Ackermann/Lundi13 people in the region to be heard during the processes The results presented in this report reflect the that have been initiated, the Friedrich Ebert Foundation sentiments of the local population. The conclusions are Ukraine and the Ecoaction Centre for Environmental based on the results of focus group discussions in seven Initiatives jointly commissioned a sociological study mining towns in Donetsk Oblast: Dobropillya, Myrnohrad, entitled “The Future of a Just Transition in Ukraine: Novohrodivka, Pokrovsk, Vuhledar, Selydove, and Perceptions in Coal Mining Towns.” Toretsk. 6 PURPOSE OF THE SURVEY 1 PURPOSE OF THE SURVEY The purpose of the survey is to analyse how residents in and Toretsk — view the development of their region and of seven coal mining towns in Donetsk Oblast — Dobropillya, their own towns in the face of upcoming mine closures. Myrnohrad, Novohrodivka, Pokrovsk, Vuhledar, Selydove, Dobr Toretsk Myrnohrad Pokrovsk onetsk Novohrodivka Selydov Vuhledar 7 FRIEDRICH-EBERT-STIFTUNG – THE FUTURE OF A JUST TRANSITION IN UKRAINE: PERCEPTIONS IN COAL MINING TOWNS 8 SURVEY METHODOLOGY 2 SURVEY METHODOLOGY The survey was carried out in July and August 2020 using women aged 18 to 60, with eight respondents per session. focus groups of residents from the towns of Dobropillya, Session lasted an average of two hours. A total of seven Myrnohrad, Novohrodivka, Pokrovsk, Vuhledar, Selydove, focus groups, one per town, were held. and Toretsk. Focus group participants included men and Gender Age 50% 50% 18–30 31–45 46–60 60 Women Men years old years old years old years old 120 minutes 8 persons duration of every focus-group discussion took part in every focus-group discussion 9 FRIEDRICH-EBERT-STIFTUNG – THE FUTURE OF A JUST TRANSITION IN UKRAINE: PERCEPTIONS IN COAL MINING TOWNS 10 FOCUS GROUP RESULTS 3 FOCUS GROUP RESULTS 3.1 THE CURRENT SITUATION IN THE At the same time, respondents were quite well informed OBLAST about socio-political changes in their towns. The towns are small, so most changes, initiatives and projects being implemented are visible to local residents and are SITUATIONAL ASSESSMENT discussed within their close circle, especially by senior respondents. Respondents noted widespread feelings of depression, insecurity and fear of the future among local residents. Typically, most respondents expected socio-political They described the situation in Selydove, Toretsk and transformations. The demand for change covered all areas Novohrodivka in very dark terms. of the town’s functioning. Positive assessments were rare and usually concerned Most associated the implementation of socio-political positive improvements in urban infrastructure and transformations in their town with the political will and landscaping: road repairs, lighting installed in city efforts of local governments and their mayor. Indeed, centres, park renovations, fountain installations, and respondents believed that the main and most noticeable the construction of new playgrounds and sports improvements in all the towns were initiated by incumbent5 grounds. Based on the focus group discussions, the authorities. most visible positive trends were observed in Pokrovsk and Vuhledar. At the same time, respondents considered all the changes happening
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