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Implementing a just transition for coal+ regions

On 27–28 June, stakeholders representing coal, peat, lignite and oil shale (“coal+”) regions convened for the fourth Annual Political Dialogue in Karlovy Vary (CZ), under the Coal Regions in Transition Initiative. Stakeholders and practitioners discussed the opportunities and challenges facing regions in this unique moment in which the energy landscape is rapidly changing, while European regions are moving from just transition planning to implementation.

date:  07/07/2023

On 27–28 June, stakeholders of coal+ regions came together in Karlovy Vary (CZ) to take stock of the progress achieved since the start of the Initiative for Coal Regions in Transition, and to discuss common challenges faced in today’s fast-evolving energy landscape. In addition to sessions on just transition implementation, energy communities in coal+ regions, and skills development, the event featured site visits in which participants explored the potential to decarbonise district heating, innovative companies, and site reclamation on-the-ground in Karlovy Vary Region.

Kadri Simson, Commissioner for Energy (European Commission) kicked-off the event on a hopeful note, expressing: “Just transition is a necessary component of an effective, clean energy transition at the local, regional, European and international levels. For this reason, I am beyond happy to engage with you today and discuss together how to better support and deliver on the energy transition, leaving no region and no person behind, and maximising the benefits for every citizen.”

Just transition builds resilience

The Annual Political Dialogue 2023 (APD 2023) acknowledged that – against the backdrop of the Russian war in Ukraine and the energy crisis – the energy landscape is changing rapidly. However, Commissioners Simson and Ferreira (the latter is Commissioner for Cohesion and Reforms) pointed out that despite this, all EU Member States remain committed to their phase-out dates, and to implementing projects under the Just Transition Fund. Coal consumption has decreased across the EU despite the war and energy crisis. In fact, several speakers pointed to the ways that the crisis has pushed coal+ regions to accelerate development of sustainable energy solutions.

Given this backdrop, it is unsurprising that the APD 2023 frequently came back to the topic of resilience. Transitioning to a sustainable and just energy system builds resilience in the face of war, climate crisis, and fluctuating economic realities. Furthermore, Ivan Bartoš, Czech Deputy Prime Minister for Digitisation and Minister of Regional Development, explained that we must make it clear to all that just transition is not only about things being lost, but rather about immense resilience and opportunities that stand to be gained.

The implementation of just transition

A panel representing diverse coal+ regions and European decision-makers from the Directorate-General for Regional and Urban Policy and from the European Parliament convened to explore this unique moment in which Territorial Just Transition Plans (TJTPs) have been approved, and just transition projects are being implemented.

The discussion made clear that support from the EU through the Just Transition Mechanism has brought Member States together and raised the visibility of the importance of just transition within coal regions. The development of TJTPs has increased cooperation amongst stakeholders, and enabled the preparation of ambitious and territorially-specific projects that can serve as best practices in other sectors. Nonetheless, the transition is a long-term process and additional support will be required beyond the current timeframe of the EU’s Just Transition Mechanism.

Energy communities in coal regions

Energy communities present a highly promising opportunity to push forward the transition to renewable energy with local communities firmly in the drivers’ seat. There are increasing opportunities to access European funding and support to set-up energy communities; however, some regions face reluctant national legal environments that complicate the development of energy communities. This must be reversed to reap the benefits of energy communities, which include alleviating energy poverty, reducing energy bills, and increasing knowledge of energy efficiency, sufficiency, and climate change.

Skills implementation for a just transition

It has been long understood that skills, reskilling, and up-skilling are central to a successful transition. This was underlined during a discussion among representatives of NGOs, coal+ regions, and the UN’s International Labour Organization.

The discussion wrestled with four mismatches that we might see between workers’ current jobs, and potential jobs that will be created in the transition: skills mismatch, spatial mismatch, temporal mismatch, and mismatch in the quality of jobs. We must work to address these – for example by focusing on creating jobs in coal+ regions, and otherwise attracting talent into coal+ regions to overcome potential demographic and skills challenges they face. However, communication must also be honest and realistic about the benefits that will (and will not) be generated through skills development. Furthermore, reskilling must go beyond miners alone, to also consider others who will be seeking work in coal+ communities, such as youth, those working in jobs related or peripheral to mining, miners’ spouses, migrants, etc.

Ultimately, the resounding message from the session was that the Just Transition Mechanism, Platform, and Fund are about people. Their implementation – including with respect to reskilling – must put people first.

A just energy future

The APD 2023 closed with reflections and a call to action to drive forward the just transition. Petr Hladík, Czech Minister of Envrionment, emphasised that, if the existing financial means are used properly, they can play a crucial role in facilitating a fast and impactful just transition.

Petr Kulhánek, Governor of Karlovy Vary Region expressed: “The Annual Political Dialogue has made it clear that when coal regions come together – with one another and with the European Commission – we exchange know-how and inspiration that meaningfully accelerates our journeys to become resilient, just and prosperous for all.” He stressed that, while coal+ regions are dedicated to building a just future, their transitions are far from complete and will require sustained financial and policy support, even beyond 2027.

Concluding the event, Paula Pinho, Head of Unit at the Directorate-General for Energy of the European Commission, emphasised that, despite challenges and barriers, the transition to renewables is happening and unfolding before us, while coal and gas consumption are steadily declining. The EU remains committed to further engagement and support.

 

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Event photos can be found here. A recording of the opening session and a preceding session on the exchangeEU programme can be viewed here.