Problem

​​Spain faces significant labor market challenges, with a high unemployment rate (15% in 2022) and the highest share of temporary workers in the EU. These structural challenges are particularly critical in coal-dependent regions, many of which are sparsely populated and economically fragile. As Spain accelerates its transition to net-zero emissions, the planned closure of coal-fired power plants poses a risk of further destabilising these areas. Without targeted interventions, the energy transition could deepen existing inequalities, triggering job losses in both direct coal plant employment and related sectors. The temporary nature of decommissioning work and the mismatch between existing workforce skills and emerging green job requirements further compounds the risk of long-term displacement.

Ensuring that the transition is perceived as fair and inclusive—particularly having policies tailored to the workers and communities most affected—is a critical challenge to ensuring public support and social cohesion throughout Spain’s decarbonisation process.

Response

Spain’s 2019 Just Transition Strategy has sought to address these challenges by combining national coordination with regional-level agreements between government, energy companies, trade unions, and other stakeholders. The Strategy started with a focus on regions with significant short-term vulnerabilities—areas most at risk of economic disruption from rapid coal plant closures, where immediate job losses and instability are a pressing concern.

In April 2020, Endesa, Iberdrola and Naturgy, major energy companies that operated the plants being closed down, signed a Just Transition Agreement to protect 2,300 workers at 12 plants (7.8 GW). In March 2021, EDP joined the agreement, bringing the total to 3,000 workers at 15 plants (10 GW). These Just Transition Agreements were developed through formal dialogue involving the Ministry for Ecological Transition, the Ministry of Labour and Social Economy, trade unions, and the coal plant operators. The agreements seek not only to mitigate job losses but also to structure the process of retraining and redeployment of affected workers, especially in decommissioning activities and the renewable energy sector. Companies are incentivised through decommissioning and restoration tender projects, while unions are responsible for monitoring compliance.

In February 2023, Endesa had reportedly devoted over EUR 150,000 to train 500 workers in Carboneras. The company, alongside Iberdrola and Naturgy, state they plan to build over 1,600 MW of renewable generation, such as solar, wind and green hydrogen, in Carboneras, Almeria, and other coal-dependent regions, which could offer some job opportunities for workers from the closed coal power plants.

Find out more: International Energy Agency