Santa Catarina’s Coal Dilemma: Balancing Tradition and Transition

In southern Santa Catarina, Brazil, coal has long been the backbone of the local economy and culture. Cities like Criciúma, Tubarão, and Capivari de Baixo proudly display coal-related monuments, and the industry shapes everything from children’s drawings to football team colors.

The Jorge Lacerda Thermoelectric Complex CTJL in Capivari de Baixo, established in 1965, symbolizes this coal-dependent legacy. With four thermal plants and seven generators, it produces 740 megawatts of power and employs 350 people directly. The Tereza Cristina Railway, spanning 14 municipalities, transports coal from local mines to the complex.

According to the Brazilian Sustainable Carbon Association, the coal industry provides jobs for 21,000 people in southern Santa Catarina and represents 0.49% of the state’s GDP. A 2021 study revealed that coal-related activities boost tax collection significantly in several municipalities, with increases of up to 54.8% in some areas.

However, a new federal law threatens to disrupt this economic ecosystem. Law 14.299, enacted in January 2022, established the Just Energy Transition Program, mandating the phaseout of coal-fired thermal power generation by 2040. This legislation aims to end coal mining in the region responsibly and sustainably.

Santa Catarina’s Coal Dilemma: Balancing Tradition and Transition

The industry now races against time to develop near-zero emission technologies, hoping to prevent the closure of local operations. They argue that the coal production chain drives the economy of 15 dependent cities and that a rapid end to coal would spell economic and social disaster without significant environmental benefits.

Critics, including the National Front of Energy Consumers, disagree with this stance. They point to successful transitions in other countries and question the cost-effectiveness of carbon capture research for coal.

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Consumer representatives criticize government subsidies for the coal industry. These subsidies have totaled R$11.5 billion ($2.3 billion) over the past decade. The amount raises questions about the industry’s sustainability and its impact on electricity costs nationwide.

Santa Catarina faces a challenging future as it grapples with its coal dependency. The region must carefully balance economic stability with environmental responsibility. Energy security also plays a crucial role in this delicate equation. The coming years will be pivotal for Santa Catarina’s energy transition.

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