Institutional capacities for a just transition in coal regions: the case of La Jagua de Ibirico, Colombia

The report analyzes the socio-economic and institutional crisis in La Jagua de Ibirico, Colombia, triggered by Prodeco's withdrawal from coal mining. It highlights severe gaps in local government powers and funding, significant environmental legacies, and the need for a coordinated national-local framework to support economic diversification and a just transition.

• The municipality of La Jagua de Ibirico experienced a severe economic shock following Prodeco's relinquishment of mining titles in 2021, leading to a 44% decrease in municipal GDP between 2019 and 2020 and an increase in unemployment to approximately 25% from 8–10% in 2019.
• The local government's fiscal capacity was severely diminished due to a heavy reliance on the mining sector for tax revenue; specifically, in 2019, 94% of industry and commerce tax revenue came from coal-related companies. This led to the municipality being downgraded from Tier 3 to Tier 6 in 2023, which reduced unrestricted SGP resources by 43% between 2020 and 2023.
• Colombian law creates a significant power imbalance that marginalizes local authorities during the mine closure phase. The Mining Code (2001) assigns responsibility for enforcing closure agreements exclusively to national entities, leaving mayor's offices with almost no explicit role in the closure stage despite the local risks.
• Coal mining has left a legacy of severe socio-environmental impacts in La Jagua de Ibirico, including the degradation of 13 water sources potentially affected by Prodeco and air pollution levels (PM10) that, while meeting national limits since 2020, remain well above the World Health Organization's recommended limit of 15 μg/m3.
• The sudden exit of Prodeco caused massive labor disruptions, with approximately 7,116 employees dismissed through layoffs or voluntary early retirement plans (PRVs). Workers have criticized PRVs as a "covert strategy for mass layoffs" that creates uncertainty for older employees and those with health conditions.
• Local responses to the crisis have included a shift toward agricultural revitalization, notably in the coffee sector, where the municipality rose from the fourth-largest producer in Cesar in 2021 to the second-largest. However, there is a recognized need to diversify into manufacturing and services to support these agricultural products.
• The report recommends the establishment of a sub-regional, permanent transition fund financed by domestic and international cooperation, potentially utilizing SGR and FAE resources, to support livelihood alternatives and environmental remediation in the mining corridor.

APA

Vega-Araújo, J., Arond, E., Niño, J. P., Patzy, F., & Maestre-Másmela, D. M. (2025). Institutional capacities for a just transition in coal regions: the case of La Jagua de Ibirico, Colombia. Stockholm Environment Institute. https://www.sei.org/wp-content/uploads/2025/03/institutional-capacities-just-transition-coal-la-jagua-de-ibirico-colombia-2.pdf

Chicago

Vega-Araújo, José, Elisa Arond, Juliana Peña Niño, Fernando Patzy, and Daniela Margarita Maestre-Másmela. Institutional capacities for a just transition in coal regions: the case of La Jagua de Ibirico, Colombia. Stockholm Environment Institute, 2025. https://www.sei.org/wp-content/uploads/2025/03/institutional-capacities-just-transition-coal-la-jagua-de-ibirico-colombia-2.pdf.

Wikipedia

{{cite report |last1=Vega-Araújo |first1=José |last2=Arond |first2=Elisa |last3=Niño |first3=Juliana Peña |last4=Patzy |first4=Fernando |last5=Maestre-Másmela |first5=Daniela Margarita |title=Institutional capacities for a just transition in coal regions: the case of La Jagua de Ibirico, Colombia |publisher=Stockholm Environment Institute |date=February 2025 |url=https://www.sei.org/wp-content/uploads/2025/03/institutional-capacities-just-transition-coal-la-jagua-de-ibirico-colombia-2.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{vegaarajo2025institutional, author = {Vega-Araújo, José and Arond, Elisa and Niño, Juliana Peña and Patzy, Fernando and Maestre-Másmela, Daniela Margarita}, title = {{Institutional capacities for a just transition in coal regions: the case of La Jagua de Ibirico, Colombia}}, institution = {Stockholm Environment Institute}, year = {2025}, month = feb, url = {https://www.sei.org/wp-content/uploads/2025/03/institutional-capacities-just-transition-coal-la-jagua-de-ibirico-colombia-2.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }