Mechanisms, tools and strategies for the effective public governance of territorial communities dependent on the coal industry — in the context of decarbonization, energy transition, and the post-war revival of Ukraine.
Today, not only Ukraine's energy security but also the socio-economic development of its territories depends on the coal communities and the stable operation of their enterprises. Such a community is often monofunctional — its economy built almost entirely around the coal industry. Given the challenges of decarbonization and the transition to «green» energy, there is an urgent need for its transformation.
To identify mechanisms, tools and strategies for the effective public governance of territorial communities dependent on the coal industry in the context of adapting to the «green» economy and the post-war revival of Ukraine — and possible approaches to sustainable development and economic diversification, in particular through management reforms and modern strategies and mechanisms.
The authors emphasize that limited resources — both financial and human — allocated to supporting the country's defense capabilities reduce the opportunities for implementing a program to transform and diversify the economy of coal communities. Special attention should be paid to supporting small and medium-sized businesses as an element of economic stabilization.
The article presents, for the first time, an original definition of public administration in the field of adaptation of coal communities to the «green» economy, and its role in their development — alongside proposed mechanisms, instruments and strategies whose implementation supports a successful transition to a new economic reality focused on environmental sustainability and growth.
The need to implement programs to increase energy efficiency and the use of alternative energy sources is substantiated — measures that will help reduce dependence on the coal industry and create new opportunities for community development.
The article analyzes modern challenges associated with the transformation of the energy sector, the introduction of innovative technologies, and their impact on the socio-economic development of such communities. The emphasis is on identifying possible approaches to ensuring sustainable development and economic diversification of coal communities — in particular through management reforms and the introduction of new public management mechanisms in accordance with the requirements of the «green» economy.
The scientific significance of the problem lies in the theoretical substantiation of mechanisms and tools for managing the transformation process of coal communities, taking into account the principles of sustainable energy and inclusive decision-making. Its practical significance lies in developing effective management decisions aimed at supporting economic diversification, creating new jobs, attracting investment, and increasing social cohesion at the local level.
The coal industry is one of the most problematic areas of Ukraine's economy. Despite significant natural reserves, it is in a critical state — burdened by subsidies, dependent employment, a cost of coal exceeding the import price, and a global shift away from fossil fuels.
The negative trend in coal production deepened through internal and external factors — economic difficulties, the armed conflict in the east, the occupation of part of the territories, and the need to transition to «green» energy. In the Donbas, historically the country's main coal region, production was partially halted by hostilities and occupation, and many mines were destroyed or lost to the Ukrainian economy. According to the Ministry of Energy, 2021 output fell by roughly 30% compared with the pre-war 2013 level; in 2022 the war deepened the crisis, and on government estimates production fell by a further 10–15%.
Because of the reduced domestic output, Ukraine became more dependent on coal imports — especially anthracite used at thermal power plants, supplied mainly by Poland, Kazakhstan and the USA. Import dependence increased Ukraine's energy vulnerability, as instability in foreign supplies and rising global energy prices raised the risks to the country's energy security.
The transformation of coal communities attracts wide scholarly attention — covering the legal dimension of a just transition, restructuring experience, foreign best practice, and the impact of war on energy infrastructure. Yet public administration of coal communities under technological challenges remains under-studied, especially in domestic scholarship.
The coal industry in Ukraine is an integral and important component of the country's fuel-and-energy complex, and a significant factor in the functioning and development of the entire economy — since coal is the only energy raw material whose reserves are potentially sufficient to fully meet the needs of our state.
The development of coal-mining enterprises slowed due to an economic imbalance between the constant rise in the cost of mining and the restraint and regulation of coal prices — leading to growing unprofitability of mines, the washing-out of working capital, weak renewal of equipment, and inadequate protection of miners' health and life in extremely dangerous underground conditions.
An analysis of domestic and foreign scholarship and management practice allowed the authors to formulate their own definitions — the conceptual core of the article.
…is a comprehensive activity of state and local authorities aimed at creating, implementing and supporting policies and programs that contribute to the gradual transition of coal regions to a sustainable and ecologically oriented economy.
…is understood as a set of management actions and strategies — institutional, financial, organizational and socio-economic instruments — aimed at ensuring their just transition to sustainable development through economic diversification, the introduction of innovative approaches to resource management, active participation in decision-making, and the creation of conditions for attracting investment and restoring infrastructure in accordance with the principles of the «green» economy.
Effective management of territorial communities dependent on the coal industry, in accordance with the principles of the «green» economy. Each mechanism pairs its content with concrete examples of implementation. Source: authors' own development.
Transition from mono-dependence to the development of new sectors of the economy.
Creation of industrial parks, support for small business, development of IT clusters.
Attracting investment through ecologically oriented financial instruments.
Issuing green bonds, creating just transition funds, attracting carbon credits.
Transition from coal dependence to renewable energy sources.
Construction of solar and wind power plants, introduction of energy cooperatives.
Involving the public in the decision-making process.
Holding public hearings, creating advisory councils, e-participation.
Training personnel to work in the new economic conditions.
Retraining programs for miners, development of educational projects in green energy.
Using digital technologies to increase the transparency and efficiency of management.
Introducing electronic services, digital platforms for monitoring and resource management.
Targeted social measures accompanying the transformation.
Programs to retrain coal-industry workers into new fields, including the green sector.
Psychological assistance and social programs for citizens affected by the war or the closure of coal enterprises.
For managing coal territorial communities in the period of post-war revival of Ukraine. Beyond mechanisms, the authors propose creating technology parks and innovation clusters on the sites of closed mines — for eco-technologies, waste utilization, and the production of equipment for green energy. Source: authors' own development.
Issuing bonds to finance environmental projects and renewable energy.
Targeted financing to support communities in the transition to a green economy.
Attracting private capital to implement infrastructure and social projects.
Mobilizing community and business funds to finance local initiatives.
Selling quotas for reducing CO2 emissions to obtain additional income.
Financing social organizations with repayment of funds for achieving social results.
Accumulating funds to finance local projects.
Collective financing of community energy projects by community residents.
Reducing the tax burden to attract private investment.
Obtaining grants and loans from international organizations to support economic diversification.
The role of public administration is to create favorable conditions for economic, social and environmental growth. Through effective resource management, innovation and citizen engagement, it improves quality of life, infrastructure, and the resilience of communities to challenges such as technological change or economic crises.
New management models for transparency and effective decisions.
Developing alternative sectors not dependent on coal.
Retraining workers for new economic sectors.
Modernizing infrastructure to attract investors and improve quality of life.
Introducing «green» technologies.
Social guarantees for workers and families during transformation.
Working with the private sector to attract investment.
Strengthening the community's role in decision-making.
Developing alternative industries (agriculture, tourism, IT, green energy) to reduce dependence on coal.
Implementing programs of financial, technical and administrative support for entrepreneurship.
Engaging communities in tourism related to ecological tourism and local natural and cultural resources.
Transitioning to alternative sources (wind, solar, bioenergy) that replace coal energy and create new jobs.
Updating energy, transport and utility infrastructure to increase its efficiency.
Technologies to reduce energy and resource consumption — raising environmental efficiency and economic benefit.
Rebuilding destroyed housing and social infrastructure with modern technologies and materials for resilience and comfort.
Developing new transport routes and modernizing existing ones to connect communities and stimulate economic activity.
Restoring ecological balance in affected regions through cleaning, greening and ecological rehabilitation of lands.
Technologies to reduce CO2 emissions in energy activities and other sectors, improving the environmental state of regions.
Training coal-industry workers so they can work in new sectors, particularly in renewable energy.
Psychological assistance and social support for people affected by the war or who lost jobs due to mine closures.
Creating favorable conditions for investment through industrial parks, technoparks and investment zones.
Developing cooperation mechanisms between the state and private sector for infrastructure projects and diversification.
Under the Energy Strategy of Ukraine until 2035, coal-based electricity generation will be fully decommissioned and eliminated — all coal power plants closed and their infrastructure dismantled, with solar, wind and hydro becoming key.
Before the Ukrainian-Russian war, ~15 billion UAH per year went to mine subsidies. The same year, Ukraine signed and ratified the EU Association Agreement, initiating the greening of its economy.
Annual mine subsidies fell to 1–3 billion UAH — largely because part of the mines ended up on temporarily uncontrolled territories rather than through efficiency gains.
Coal output fell ~30% versus the pre-war 2013 level. Imports rose to ≈ 20 Mt (about +35% on 2020), costing ≈ $1.8 billion and deepening energy vulnerability.
The full-scale war damaged energy infrastructure and, on government estimates, cut coal production by a further 10–15%, intensifying the case for transformation.
Coal-based electricity is fully phased out; plants are closed and dismantled. The transition to solar, wind and hydro lowers greenhouse-gas emissions and improves air quality — paired with worker retraining and land reclamation where mines and plants once stood.
The results allow us to state that by 2035 the world will not only abandon coal energy but will witness a radical change in how humanity's energy needs are met — based on the principles of sustainable development and responsibility to future generations.
For Ukraine, the effective management of territorial communities in the period of post-war revival — especially those dependent on the coal industry — requires a comprehensive approach that includes institutional reforms, economic diversification, technological innovation, and active community participation.
The introduction of new energy technologies will reduce the negative consequences of closing unpromising coal mines and enterprises. This will raise local employment, positively affect industrial and environmental safety, ensure financing, and promote socio-economic development, social stability and the environmental sustainability of communities in the long term.
One key direction for further research is the development of a policy of balanced transition to clean energy without negative environmental impact — ensuring sustainable development in the move to the «green» economy. This may become an important factor in the future reconstruction and development of Ukraine's economy as a whole.
Institutional reform — new, transparent and participatory management models anchor the transition.
Economic diversification — new, ecologically oriented sectors replace mono-dependence on extraction.
Technological innovation — renewables, smart grids and energy efficiency power the new model.
Community participation — engaging residents and the most vulnerable groups in every step.
Full reference list as published in Academy Review, 2026, № 2 (65).