What is the remedy for a just transition?

The problems of the regions affected by the green transition in the European Union may be similar, but their solutions need to be different. That’s because the search for solutions goes in the context of national characteristics and challenges. Ultimately though, a good strategy and proper communication is always required to overcome the stumbling blocks in the process. All participants in the third panel of the "Just Transition Opportunities Across Borders" international conference, part of the European project "Transition of Opportunities" united around this idea. (The project itself is led by Brand Media Bulgaria, publisher of Economic.bg).

Solutions from Bulgaria

“Are we using the resources we have today as efficiently as possible?,” asked Svetoslav Ivanov, executive director of Overgas Inc. and one of the panel participants. His answer was "no".

An example of a unique feature in Bulgaria is its gas distribution network, which can turn into a valuable solution one day", he believes.

He explained that there was a problem facing the development of the EU energy sector due to the peculiarity of its gas distribution networks, which consist of pipelines made from metal or other materials that do not allow compatibility with hydrogen.

In Bulgaria, however, this is not an issue since 99.8% of the gas distribution network is quite new and almost 100% made of high-density polyethene pipes.

This (network) can effectively carry a blend of conventional natural gas and green hydrogen and become a wonderful, highly cost-effective form of storage for using the excess green energy that is produced domestically."

According to Svetoslav Ivanov, if Bulgarians are smart enough today, in about 30 years they won't need to change the distribution technologies now used for natural gas, they’ll just need to adapt to the new type of fuel.

Technologies are not tools for achieving childish dreams, but tools for solving problems for society that have a high priority today".

He gave the example of coal, which mankind has known for 3200 years but only used for industrial needs for the past 320 years. It took humanity about 2,200 years to begin using gas as an efficient way to meet its energy needs.

"The biggest obstacle to the entrepreneurial sector is the pointless opposition to potential partnerships."

If we want to see development, there should be fewer (state) regulations," believes the expert.

He also touched upon the low degree of gasification in Bulgaria, which, according to him, was the result of wrong policies and regulations.

“The gasification of 1 million households in Bulgaria would guarantee at least a 30% reduction in the current carbon footprint of the Bulgarian industry".

The Polish example

Associate Professor Mariusz Kruczek from the Central Mining Institute, a national research institute in Poland, told how the transition is happening in the largest coal-mining region of Europe - Silesia.

He said that the last mine in the country is scheduled to be closed in 2048, and the provinces and municipalities are very scared of this process as they stand to lose the income they traditionally earn from mining.

The problem lies in the perceived loss of jobs, the municipalities are anxious and fail to see how things could be reorganized because they are used to seeing coal mining as a traditional livelihood, he said.

We were looking for a way to deal with this problem, to make the transition happen, but also to give due to the mines and to this way of life," he said.

In recent years, 20 mines have been closed in the country, but 20 others are still operating.

Kruczek admitted that Poland is overly optimistic about being able to keep mines working until 2048 because "we already see that the amount of coal used in industry is falling sharply."

He also commented that the transition will not only affect coal mining but will also affect other industries that have been tied to the sector. He gave as an example a family restaurant where the miners go to eat lunch, and how it, too, would suffer.

There has to be a comprehensive strategy on how people are going to be helped and how to change their way of thinking."

He presented a Polish coal regions database aimed at potential investors, where one can look up a region’s history, pollution levels, potential reclamation costs, and other useful information.

We need to communicate with people, and we need to work together," emphasized the expert.

The Hungarian transition

The energy transition in Hungary’s coal regions has also begun, and its effects were presented by Dr. Zsuzsa Piskoti-Kovács, head of the Coal Commission Secretariat of that country.

Like Bulgaria, Hungary also has three regions that receive funding from the Just Transition Fund.

One of the country's largest coal-fed power plants provides 9% of the electricity output while being responsible for 17% of carbon emissions. However, it also employs 2,000 people and Hungary plans to modernize so it will be ready for the time when the mines shut down.

It is important not to disturb the economic stability of the region during the transition."

Small and medium-sized businesses will be the first to be supported by the Fund, but cooperation with civil society is very good and the expectation is that that sector can give ideas, Piskoti-Kovács explained.

When we talk about a just transition, we always see it as a big challenge, as a series of problems, but let's see it as a series of opportunities for all of us instead."

She is also adamant that if we cooperate, if we clearly distribute our responsibilities among the various participants in the transition, and if we maintain constant communication, we will overcome all these challenges and find the right path.

The Czech Republic does it in its own way

It is important to have the right attitude, and if you have it and communicate correctly, you will overcome all obstacles to a just transition, says Jiri Sterba, project manager for transformation and development at SUAS GROUP.

He said that the Czech Republic is ahead with the implementation, 60 tender procedures have already been issued and more than 50% of the funds under the Fund have been allocated for specific projects.

However, the country is facing another risk – that the implementation of the projects that have already been approved will face insufficient administrative capacity.

The Czechs have taken a different approach when it comes to the distribution of financial resources. They have pre-selected and assessed projects at the regional level.

The regions said what they wanted and what they needed, they sent the appropriate projects to the central administration and got funding. That model is the opposite of what has usually been done before."

Sterba emphasized that the Just Transition Fund is very important and a great opportunity, but it is sometimes overrated as well.

It, by itself, will not solve all the problems. It will help us start the change, but it will not solve all the issues. Changes must continue being implemented until we achieve our goals.”

The Steps of Spain

Indalecio Fernández, technical coordinator and project coordinator at the Asturias Energy Foundation from Spain, said that there is only one working coal mine in the country and that the thermal power plants are also closing.

However, two of them will be transformed - one to work with natural gas and the other one with biomass.

The transition in Spain started more than 5 years ago. The first step was an analysis of the starting point and what the challenges will be - so one can also see what the transition possibilities will be.

The second step was to create a framework for implementing the strategy. The next step was to find the money to implement this strategy.

We have started the transition in the industries we are developing because they are energy intensive and produce a large amount of carbon emissions, reducing them has been a challenge,” he said.

In Spain, the transition is not only financed through the Just Transition Fund at the European level but a national Just Transition Fund has also been created. The latter allows the implementation of projects to take off more quickly.

Translated by Tzvetozar Vincent Iolov

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.