To promote an inclusive green transition, the United Nations Development Programme (UNDP) and the Institute of Energy at Peking University initiated a research collaboration on just transition in 2022. Building on the first phase, which analyzed the national-level employment impacts of China's energy transition, the second phase focuses on the regional disparities in its effects across different parts of the country.

This report examines the socioeconomic effects of the energy transition at the provincial level, with a particular focus on Shanxi Province, which accounts for over 20% of China’s coal reserves and employs 37% of the national coal workforce. Employing the same methodology used in the earlier national-level analysis, it provides employment projections for Shanxi’s coal mining and power sectors while identifying key socio-economic challenges. The report also draws on lessons learned from China’s past efforts in managing labor market shocks and diversifying resource-based economies to provide actionable policy recommendations for achieving a just transition at the provincial level.