New coal mining licenses to end as UK government prioritises clean energy

The UK government has announced plans to restrict the licensing of new coal mines, committing to bringing in legislation which will prohibit new coal mining projects. The move forms part of its goal to achieve a clean power grid by 2030.

Phasing out coal to meet climate targets

Coal remains the world’s largest source of CO2 emissions from energy, making its phase-out essential in addressing climate change and limiting temperature rises to 1.5°C. Recently, the UK closed its last coal-fired power station at Ratcliffe on Soar, ending over a century of reliance on coal for energy. Since 2012, coal’s contribution to the UK’s electricity supply has plummeted from 40% to zero.

Energy Minister Michael Shanks acknowledged coal miners’ role in powering the country, stating that they “leave a legacy that this country can be proud of.” As the coal era draws to a close, the government’s focus has shifted to accelerating clean energy solutions, including carbon capture and hydrogen, to support the transition away from fossil fuels.

Clean energy investment and job creation

As part of its mission to become a “clean energy superpower,” the UK government has committed to substantial investment in homegrown clean energy. This shift aims to create thousands of jobs across the UK while revitalising industrial regions. Since July, the government has reversed the onshore wind ban in England, approved 2GW of new solar power projects, and launched Great British Energy, a public entity focused on clean power investments.

A report from the National Energy System Operator (NESO) recently confirmed that achieving a clean power system by 2030 is feasible, promising a more affordable and secure energy supply. In support of this mission, the newly established Office for Clean Energy Jobs will help equip workers with the skills needed for new opportunities in the clean energy sector.

Unions have also worked closely with Ratcliffe on Soar’s owner, Uniper, to provide a redundancy package, including identifying opportunities for the plant’s staff such as internal transfers, roles with external companies and training courses. 

Support for former coal workers

The government has committed to boosting the pensions of 120,000 former mineworkers by 32%, following a £1.5 billion fund allocation to their pension schemes.

At the COP29 Summit in Baku, the Prime Minister also announced the Clean Industry Bonus, which will allocate £27 million per gigawatt to offshore wind developers investing in the UK’s industrial heartlands and coastal regions.

Limited exceptions to the coal mining ban will apply for safety or restoration, and an exemption is anticipated for freeminers in the Forest of Dean. The government has laid a Written Ministerial Statement indicating plans to amend the Coal Industry Act 1994 to enact this restriction when Parliamentary time allows.