site.btaUPDATED EU Supports Just Climate Transition in Bulgaria with EUR 1.2 Bln

Bulgaria will receive EUR 1.2 billion (about BGN 2.3 billion) from the Just Transition Fund (JTF), following the adoption of Bulgaria's Territorial Just Transition Plans (TJTPs) by the European Commission on Thursday, the Commission said. The JTF will help deliver new jobs and economic activities for a just transition in the Bulgarian regions of Stara Zagora, Kyustendil and Pernik that face the biggest socio-economic challenges in phasing out coal and reducing CO2 emissions. It will also support Bulgaria to reach the EU 2030 climate and energy targets, and a climate-neutral economy by 2050.

The adoption of the TJTPs completes the approval of a total EUR 11 billion Cohesion Policy investments (2021-2027) supporting a more competitive, cohesive and greener Bulgaria, leaving no one behind.

In total, 96 regions from all EU Member States receive support from the Fund through 70 plans. With the adoption of the Bulgarian Territorial Just Transition Plans, the programming of JTF in the EU has been completed, and efforts now focus on implementation, the Commission said.

Also on Thursday, Bulgaria's government said it had secured the support after drafting, submitting and, after further negotiations, finalizing the TJTPs within the timeframe provided for under EU legislation. About BGN 190 million for the three regions were lost due to inaction on the plans in the second half of 2022, although the projects had been prepared. The plans were developed at an accelerated pace, in dialogue with stakeholders, including social partners, operators of mines and combustion plants and the general public in the affected regions. They reflect the current investment intentions of the operators in a market-based environment  without state restrictions, and enable regions and people to cope with the social, labour, economic and environmental impacts of the transition.

How the regions will benefit from the JTF

The Commission also said the JTF will help the transition from coal-based energy production and support reskilling and upskilling and the creation of new employment opportunities for over 15,000 workers in the three regions. Moreover, 2,190 hectares of land surface area will be rehabilitated to develop industrial areas and construct renewable energy source capacities. Energy efficiency measures in residential buildings focused on energy-poor households and vulnerable consumers will help tackle energy poverty. In addition, the JTF will support prosumers and help establish renewable energy communities. This will reduce energy consumption, lower electricity bills, and cut greenhouse gas emissions, on top of improving living conditions.

To ensure that the JTF responds to local needs, local sub-committees will be set up with JTF support in each of the three Bulgarian regions, directly involving a wide range of stakeholders for local representation and participation in the governance of the JTF.

Economic diversification in Stara Zagora

In the region of Stara Zagora, which hosts coal mines and four thermal power plants, EU funding will support the region's citizens in the transition to a green economy with new job opportunities, including across ten satellite municipalities of the Sliven, Yambol and Haskovo regions, where part of the labour force resides.

The JTF, together with the European Social Fund Plus, will develop the mapping of the skills of the employees in power plants and coal mines as well as of the persons indirectly affected, such as family members. This crucial information will feed into the JTF employment measures aimed to reskill and upskill, career counsel and develop entrepreneurial skills.

The Just Transition Fund will also be channelled to degraded sites in line with the ‘polluter pays' principle to prepare them for alternative economic activities and a shift to green energy, such as those related to photovoltaic parks, pilot projects for virtual power plants, industrial parks for clean technologies, and hydrogen-based value chains.

Finally, the fund will support the diversification of the local economy by investing in small and medium-sized enterprises (SMEs) and in research and development related to the circular and climate-neutral economy.

Supporting job creation in Kyustendil

In Kyustendil Region, where coal phasing-out started two decades ago, the JTF will also support the reskilling and upskilling of workers and offer assistance to jobseekers. The measures will particularly benefit disadvantaged groups and young people.

SMEs will be supported to put up renewable energy installations and focus will be put on the decarbonization of the energy sector. The creation of industrial parks with clean technology solutions will provide a suitable environment for investors. In addition, the funding will help Kyustendil extend the use of its significant geothermal energy resources.

Boosting the socio-economic development of Pernik

The region of Pernik, which neighbours Kyustendil and is located in the proximity of Sofia, will also benefit from the Just Transition Fund. By 2030, around 1,000 alternative jobs will be needed and JTF will contribute to addressing this challenge.

JTF will support SMEs focused on R&D, design and installation of photovoltaic panels, the production of biogas, as well as pilot projects for the production and storage of renewable hydrogen and the deployment of renewables.

The fund will further develop the Pernik Industrial and Logistics Area and create an R&D centre focusing on industrial design and a material science centre.