If the transition is not fair, it cannot be successful

If a transition is not fair, it cannot be successful. The history of all transitions shows that we must work together to find the best example. This was the overall message of Neno Nenov, Economic Advisor to the European Commission Representation in Bulgaria, expressed during the international conference “Just Transition in Pernik”, organized by Brand Media Bulgaria, publisher of Economic.bg, as part of the European project “TOP JOBS”.

We are not alone

He emphasized that Bulgaria is not alone in this transition. It is not an isolated case, as there are 70 territorial just transition plans in Europe – "we are not a target country or a focus point, this is a systematic policy."

As unique as coal regions are, they don't need to come up with the most innovative solution worthy of a Nobel Prize.

We don't need to start from scratch to figure out what needs to happen," Nenov said.

He spoke about the experience of Slovakia, which adopted its territorial plans in December 2022, a year earlier than Bulgaria. In the Horna Nitra region, they abandoned coal, directly affecting 11 thousand people employed in the sector. There is already an almost completed plant there for the repair and production of railway cars, as well as elements for solar panels, where energy-related expertise is a useful thing. The city is also making a turn in the direction of tourism.

The idea is not to forget this past, as it is part of history," said Nenov.

He gave another example from the energy heart of Poland – Katowice. In the Silesia region, a mine closed back in 2009 and thanks to the Just Transition Fund, which operates in Poland, an amusement park was built. At the end of 2023, there was a 70% increase in tourism in Katowice compared to the years before COVID-19, which led to the opening of other businesses – hotels, restaurants, etc.

In Poland, the wishes of those employed in the sector have been analyzed - what they would like to do after the closure of production. The majority said they want to go into agriculture, and the Just Transition Mechanism provides generous support for farmers - that is, politicians respond with a special Fund and support in this direction.  

Nenov also presented data showing that in the last 10 years, there has been a lasting trend towards increasing coal production, yet employment in the sector has decreased by 30%, which means that the reduction in employment is not directly related to political rejection of coal, but rather to technological development and optimization.

The decline in employment is a natural process throughout the world, and it is better to control this process rather than to stand by idly and wait."

The EU is helping us take a quality leap

Nenov told a personal story, in which more than 30 years ago his grandfather, who was a bus driver for miner crews, lost his job because the mine in the village of Ustrem shut down. As it was cheaper to import the ore, miners and drivers were not needed. His grandfather retired at 55, receiving negligible pension so he took up animal husbandry, beekeeping, and agriculture. This happened in 1992 when the Bulgarian economy was on the verge of collapse.

Many people imagine the transition away from fossil fuels, leading to the closure of coal mining, as a scenario with similar economic consequences.”

However, unlike in 1992, Bulgaria is now a member of the European Union, which provides good conditions for such a scenario to not repeat today.

The representative of the European Commission explained that three times more EU money enters the Bulgarian economy than goes out of the Bulgarian budget to the European one.

“Hardly anyone can imagine that the EU is paying for us to have a ruined economy and high inflation so that it has to continue subsidizing it.”

The idea of ​​the transition and decarbonization is not that someone has targeted Bulgaria, the idea is to help this economy and the society to make a qualitative leap, the businesses to be more competitive, and the population to be more skilled."

According to him, this change will not be easy, and no one can guarantee it will lead to something better, but there are tools with which we can at least manage it.

Nenov reminded the audience that the Just Transition Fund for Bulgaria has 1.25 billion euros, and specifically for Pernik – 92 million euros.

Co-Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the Managing Authority. Neither the European Union nor the Managing Authority can be held responsible for them.

Translated by Tzvetozar Vincent Iolov