For the world to meet the Paris Agreement, and for China to ensure its own dual climate goals of carbon peaking by 2030 and carbon neutrality by 2060, the transformation of China's economic structure, energy mix, production methods and lifestyles towards low carbon pathways is essential. However, the industrial overhaul it requires may disproportionately affect certain sectors, regions and groups, as not all will have equal access to new green job opportunities. Therefore, it is critical to mitigate potential negative socio-economic impacts and risks, to ensure a just transition that includes everyone.

This raises the need for evidence-based research to better inform policy-makers on how best to balance the energy transition with social and economic considerations. To this effect, this report examines the employment impacts of China’s energy transition on two key industries – the coal mining and preparation industry, as well as the electricity industry. It also proposes policy tools to minimize labour shocks and maximize opportunities based on a review of international best practices.