Project analysis of investment opportunities in coal regions in the context of their just transition

Abstract

Global decarbonisation necessitates the closure of coal mines, which are vital to the regions where they are located. This requires a just transition for coal regions, with the key task being to create alternative jobs in new sectors of the economy through the implementation of investment projects. Project decisions are based on an assessment of the region's investment opportunities, which involves a comprehensive approach to analysing the region's ability to ensure an acceptable level of profitability. The purpose of this publication is to study the investment opportunities of coal regions with a focus on their just transition. It examines the essence and purpose of project analysis of investment opportunities, identifies factors that will influence investor decisions in the process of transforming coal regions, assesses the transformation prospects for the development of the Sheptytskyi district of the Lviv region, and substantiates directions for promoting investment activity at the local and regional levels. Based on a systematic approach using general scientific, economic-statistical, analytical and special research methods, it is proven that the determining factors of project analysis of investment opportunities in the context of the fair transformation of coal regions are their energy potential outside coal mining, safety and environmental parameters, investment and business conditions in the region. A set of factors has been identified that are recommended for research to assess the investment opportunities of coal regions with a focus on their just transition in combination with the sectoral priorities of potential investors. An assessment of investment opportunities in the Sheptytskyi district of the Lviv region has been conducted, enabling the identification of sectors with the greatest prospects for transformational development. The application of investment opportunity analysis to stimulate project activity has been outlined, and directions for supporting investors at the local and regional levels for the fair transformation of coal regions have been proposed.