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Concept of Transformation of the Socioeconomic System of the Kuzbass in the Context of Decarbonization Policy

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Abstract

The transformation of the Kuzbass (Kemerovo oblast) economy has been presented in regional strategic planning documents for decades as the most important tool for accelerated development. The authors of the article argue that, unfortunately, over the past 20 years, almost no qualitative changes have occurred in the Kuzbass economy, and they name the reasons for this situation. Currently, Kuzbass faces the difficult task of choosing a long-term development model. On the one hand, despite existing internal challenges and risks, the government is directing business and society towards accelerated development, relying primarily on the growth of coal production and development of small and medium-sized businesses. On the other hand, a critical mass of subjective and objective circumstances is gradually accumulating in Kuzbass, which in the medium term can radically change the situation, and transformation of the economy will be the only possible development model. The main problem is the prospect of coal being squeezed out of the global economy under the pressure of the decarbonization trend. In Russia, there is no generally recognized systematic approach to the issue of structural reorganization of coal-producing regions in the context of a decarbonization policy. The authors, having studied current world practices, propose an original concept for transformation of the Kuzbass economy based on the Just Transition Principles, used by the European Union. A prerequisite for its successful implementation should be a dialogue between government, business, and society in developing and agreeing on corridors for the future development of the region.

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Notes

  1. Sivokhina, A. The head of Rosprirodnadzor called the Kuzbass the biggest “waste generator,” Information portal “Kuzbass.” October 17, 2021. https://kuzbass85.ru/2021/10/07/glava-rosprirodnadzora-nazvala-kuzbass-samym-bolshim-generatorom-othodov/.

  2. Rating Regions by Quality of Life–2021, RIA Rating, February 15, 2022. https://riaratmg.ru/infografika/20220215/ 630216951.html.

  3. Best Regions for Life, RBC Rating, RBC. April 12, 2021. https://www.rbc.ru/eco-nomics/26/04/2021/6078136e9a7947d0e9e1b1fb.

  4. Guidelines for a Just Transition towards Environmentally Sustainable Economies and Societies for All, International Labour Organization. https://www.ilo.org/wcmsp5/groups/pub-lic/edemp/empent/documents/publication/ wcms_432859.pdf.

  5. Goals in the Field of Sustainable Development, Official Website of the United Nations. https://www.un.org/sustainabledevelopment/en/sustainable-development-goals/.

  6. Solidarity and Just Transition Silesia Declaration. 2018, IndustriALL Global Union website. https://www.industriall-union.org/sites/default/files/uploads/documents/2018/POLAND/COP24/solidarity_and_just_tran-sition_silesia_declaration.pdf.

  7. Members COP26 adopted the Just Transition Declaration, IndustriALL Global Union. https://www.industriall-union.org/ru/ uchastniki-cop26-prinyali-deklaraciyu-o-spra-vedlivom-perehode.

  8. The Just Transition Mechanism: making sure no one is left behind, European Commission. https://ec.europa.eu/info/strategy/priorities-2019-2024/eu-ropean-green-deal/finance-and-green-deal/just-tra-nsition-mechanism_en.

  9. Program for Socioeconomic Development of Kemerovo oblast–Kuzbass until 2024 (approved by Decree of the Russian Federation Government no. 556-r of March 6, 2021). http://static.govemment.ru/media/files/JdaK3JTUTv5pCKcPuG4ttgPRv6lnaxuU.pdf.

  10. On the breaking of trends: The future of Russian coal exports. PwC, 2020, p. 10.

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  12. See the official website of the Ministry of Coal Industry of the Kuzbass. https://mupk42.ru/ru/industry/.

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Funding

The article was prepared according to the research plan of the Institute of Economics and Industrial Engineering, Siberian Branch, Russian Academy of Sciences (project no. 121040100279-5 “Driving Forces and Mechanisms of Cooperation and Integration Processes in the Economy of Siberia”).

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Correspondence to Yu. A. Fridman, E. Yu. Loginova, G. N. Rechko or O. I. Khokhrina.

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Fridman, Y.A., Loginova, E.Y., Rechko, G.N. et al. Concept of Transformation of the Socioeconomic System of the Kuzbass in the Context of Decarbonization Policy. Reg. Res. Russ. 13, 480–489 (2023). https://doi.org/10.1134/S2079970523700892

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