An Australian coal town offers a model for climate progress and economic stability
Asia’s coal plants are a major hurdle in the clean energy transition. Unlike in the US or Europe, many plants across ASEAN — particularly in Indonesia, Vietnam, and the Philippines — are modern, built to run well past 2040, making shutdowns politically costly.
But as Southeast Asia faces pressure to phase out coal, it doesn’t have to choose between climate progress and economic stability. Collie, a coal town of 7,500 in Western Australia (WA), offers a rare and replicable model of how to manage a just transition — one that prioritizes workers, attracts investment, and avoids social backlash.
Source: Nat Bullard’s annual decarbonization report (January 2025)
The science is clear: ASEAN, India, and China must phase out coal use by 2040 to avoid catastrophic warming.
Some ASEAN countries are stepping up. Indonesia’s president, Prabowo Subianto, has pledged to retire all 254 remaining coal plants by 2040. Vietnam has promised the same.
But turning these pledges into reality is daunting. Indonesia and the Philippines still generate nearly two-thirds of their electricity from coal, and just Indonesia would need $1.2 trillion in investment to shift away.
Without careful planning, the transition risks economic disruption, public backlash, and mass job losses — with 30,000 coal workers at risk in Indonesia alone.
The case of Collie, Western Australia
For over a century, Collie supplied the coal that powered much of the state. But in 2019, as climate concerns mounted and renewables became more cost-effective, the WA government announced plans to begin shutting down the town’s coal-fired power infrastructure.
Seeing the writing on the wall, local union leaders — like Steve McCartney — didn’t resist the inevitable. Instead, they worked with residents to spearhead a just transition on their terms. The guiding principle: “Nothing about Collie’s future without Collie’s input.”
McCartney brought in Alex Cassie, a former diplomat, to help organize the community. Cassie found locals wanted secure, well-paying work that allowed them to stay in town. One of the biggest concerns was avoiding the fate of other towns, where “fly-in, fly-out” jobs hollowed out community life.
A just transition doesn’t mean asking coal workers to become baristas earning a fraction of their former salary.
Many workers saw themselves as energy professionals — not just coal workers — and wanted to stay in the energy sector, not shift to lower-paid roles in tourism or hospitality. As Jayde Rowland, who was working for the WA Conservation Council at the time, put it, a just transition doesn’t mean asking coal workers to become baristas earning a fraction of their former salary.
The author pictured alongside Collie community leader Mick Murray in front of Collie’s open-cut coal mine (March 2024)
With this in mind, the community began envisioning a more diverse and sustainable economy for Collie — one where green industries like battery production, backed by WA government investment, could provide good jobs while preserving local identity and way of life.
But to make this vision a reality, they needed to win over decision-makers. They made the case that Collie’s skilled energy workforce and existing infrastructure — including grid transmission lines — could reduce development costs versus starting from scratch elsewhere. Cassie and her team mapped out key political and bureaucratic influencers and launched a targeted campaign to advocate for Collie’s future.
Despite past tensions with environmentalists, they invited young climate activists to help co-design future industries.
The community also took a pragmatic approach. Despite past tensions with environmentalists, they invited young climate activists to help co-design future industries. “That was the first time the [coal] workforce listened to an environmentalist,” McCartney later said.
Their proactive strategy has already delivered tangible results.
In June 2022, the WA Government announced Collie’s remaining coal-fired power stations would close by 2029, alongside an A$200 million (US$126 million) package to attract industries like battery production, green steel, graphite processing, magnesium refining, and advanced manufacturing. Another A$300 million was committed to decommissioning, worker support, and retraining. On top of that, A$130 million has been allocated for tourism, infrastructure, and community development — bringing the total state investment in Collie’s future to nearly A$700 million.
Because the announcement came with a clear plan and substantial investment the news was met not with protests, but with applause. “The ability of the government to come to town without being run out on a rail was the culmination of years of work from us, locals, and others,” Cassie recalled. “That day — the community’s positive response — wasn’t the start of the transition. It was a marker of success.”
Sustained advocacy and public pressure have helped maintain momentum and attract new investments. By mid-2023, the WA government awarded an A$1 billion contract to build one of Australia’s largest battery storage systems in Collie, creating 500 construction jobs. In 2025, Tesla announced a battery recycling facility, adding another 50 jobs.
Even Collie’s main street has changed. Refurbished buildings have won heritage awards, while new outdoor adventure companies — boosted by state-funded mountain bike trails — are drawing in visitors and creating opportunities for local youth, who often had to leave town for work.
Too often, just transitions fail not because the concept is flawed, but because they’re poorly implemented. As McCartney put it: “It doesn’t work because it’s not just.”
The ability of the government to come to town without being run out on a rail was the culmination of years of work… [T]he community’s positive response — wasn’t the start of the transition. It was a marker of success.
But Collie’s story stands as a rare exception. From the outset, unions were honest with workers about what was coming. Workers had time and support to retrain. Trust was built through consistency — regular meetings, transparent communication, and shared ownership of the process. Old rivalries were cast aside. People worked with those they didn’t always agree with — because the stakes were bigger than the politics.
Through smart organizing and community grit, Collie has shown that plant closures don’t have to be feared. With the right leadership and targeted investment, they can be embraced.
Applying Collie’s example to Asia
While no two transitions are identical, many of the core principles behind Collie’s success offer valuable lessons for coal-reliant regions in ASEAN.
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Of course, the policy landscape is different. Western Australia is a wealthy state with billion-dollar budget surpluses, while countries like Indonesia face significant fiscal constraints and rising debt. External public financing is also uncertain. Indonesia’s $20 billion Just Energy Transition Partnership (JETP) covers only 30% of the needed investment, leaving a 70% gap. Recent US climate finance cuts also raise doubts about JETP’s viability.
Despite these headwinds, new models are emerging to close the gap and avoid economic collapse in coal-dependent communities. One promising approach is transition credits — a market-based mechanism where nations can monetize avoided emissions by keeping coal in the ground.
To advance this concept, the Rockefeller Foundation and the Global Energy Alliance for People and Planet launched the world’s first coal-to-clean credit initiative in June 2023. Within a year, a Philippine plant signed the first credit-backed coal closure, and 19 companies pledged to trade such credits at Climate Week NYC.
Additionally, carbon markets are expanding, with some countries requiring credit purchases. Singapore’s carbon tax now allows companies to use credits to offset emissions, creating a growing demand signal for transition finance. As Singapore positions itself as a regional hub, countries like Indonesia and the Philippines can supply high-quality credits, attracting investment for early coal retirements and clean energy.
But finance alone isn’t enough. For a just transition to succeed, the proceeds must reach workers and communities. That means:
- Involving workers in identifying new, stable, well-paying industries.
- Allowing enough time for retraining and economic diversification before closures.
- Combining community ownership with substantial, accountable government involvement.
If ASEAN countries hope to phase out coal without devastating local economies, Collie shows that it can be done — but only if people, not stranded assets, are treated as the top priority.
Featured photo: The Wellington Dam in Collie, Australia. Source: wa.gov.au
