Policy Brief
Renewables Pull: Opportunities and risks for coal regions
As renewable energy accounts for an ever-larger share of the global energy supply, will energy-intensive industries relocate to regions where renewable energy can be produced at the lowest cost?
The renewables pull effect refers to the hypothesis that countries or regions with abundant renewable energy sources and relatively low costs of producing electricity or hydrogen from renewable energy sources will become increasingly attractive locations for energy-intensive industries.
For coal regions, this process of potential relocation of certain industries can be both an additional challenge in the energy transition but also an opportunity. Both opportunities and risks not only depend on the specific conditions of any particular region, but also on national and regional energy, industry, and climate policy decisions as well as on global trends and investment decisions.
This short policy paper aims to provide a first orientation of what is at stake and how a coal region can realistically assess its opportunities in the global race for the best production sites of a new green industry.
In February 2025, the Expert Exchange “Renewables Pull for a Just Energy Transition” took place online. See key takeaways, presentations, and recording here.
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