A tale of two (un)Just Transitions: the end of the coal-fired power plants in Portugal

Abstract

This paper explores the social, economic, and environmental impacts of the closures of Portugal's two coal-fired power plants—Sines and Pego—in 2021, within the context of the Just Transition framework. Through a case study approach, it explores how the shutdown affected workers, communities, and regional economies, based on stakeholder discourses from government officials, unions, companies, and municipalities. The paper discusses the extent to which these closures represent a Just Transition, focusing on the presence/absence of dedicated policies. Despite promises of reskilling, job creation, and regional investments, significant challenges emerged, including delayed economic revitalization and a "Death Valley" period of unemployment. The study emphasizes the implications of lacking a clear governance process, social dialogue, and timely support mechanisms, which are essential to prevent further social disparity and economic loss. We highlight the critical role of policy measures and recommend rethinking social security systems to accommodate transitions to low-carbon economies.