In his address to the 74^th UN General Assembly, on the 23 September 2019, the Greek Prime Minister announced the closure of all the country’s lignite-fired power plants by 2023, with the exception of the “Ptolemaïs V”, which is projected to operate until 2028[1], although an official decision has not yet been taken about its future. Moreover, the announcement included a revised target of increased renewable energy penetration up to 35% (final consumption) by 2030, from approx. 18% today. In order to implement the plan, in December 2019 Greece’s Council of Ministers set up a governmental monitoring committee.

As a small–but critical – contribution to the lignite phase-out process, WWF Greece has shared ‘best practices’ of a socially inclusive coal phase-out process, widely known as ‘just transition’ from regions that provided electricity to the country for several decades and are about to alter their productive model. Those regions are W. Macedonia and Megalopolis in the Regional Unit of Arcadia.

We’re facing a climate crisis, thus shifting towards clean energy sources while moving away from fossil fuels is urgent. Yet, doing so without the right preparation and consultation runs the risk of generating grave social and financial consequences and could be inefficient.

For WWF Greece, there are three fundamental aspects towards a successful lignite phase-out process:

1. A mid-to-long term strategy towards a productive upturn of lignite regions, by way of new investments

2. Short-term management of consequences

3. Effective participation of local communities

Unemployment in coal regions (2019 data)

As expected, the Covid-19 pandemic will have – and is probably already having – further negative impact on the unemployment rates for the coal regions as well, especially for W. Macedonia, a region where unemployment is already above the Greek average due to the economic crisis and declining coal activity.  

The Study – main findings

The project study was structured with two main pillars, namely:

● The direct/short-term impacts the lignite phase-out is bound to have on employment. In that sense, the study delves into the primary consequences of such a process as well as formulating proposals towards an eventual smoothing of the process over the particular transition period (2020 – 2023) as far as job retention is concerned.

● The mid and long-term consequences and proposals towards an efficient implementation of a smooth transition, leaving no-one behind (over the period from 2023 on).

According to our study, ‘Just Transition & Employment in Greece’, published in November 2020 as part of the EUKI project that WWF-Greece is part of, together with WWF-Poland, WWF-Germany and WWF-Bulgaria, the findings can prove useful when designing a lignite phase-out process. More precisely:  

● 2,200 workers are at risk of losing their jobs to coal phase-out (both regions). Timing is an important dimension. The key time period is 2020-2023, as planned investments (according to the proposed Greek Master-Plan) won’t be initiated until 2023, although the closure of lignite power plants is expected to continue regardless of this, which creates extra pressure on employment and income to the coal regions. Without an adequate safety net to anticipate income loss, another 6,000 jobs in W. Macedonia are in danger due to the knock-on impact of lignite plant closures.

● In terms of income loss for the coal regions, for every 1€ deducted from lignite activity, 3.1 € are deducted from the local economy (1.7 € in Megalopolis), based on the existing multipliers.

● The role of the Public Power Corporation as the main land-owner in the affected regions is critical, and it could help stimulate growth if properly engaged with local communities.

● The regions of Kozani and Ptolemaida (Eordea) present a higher impact in terms of local jobs and income due to the coal phase-out process, while not all age groups are affected in a similar way. Different characteristics means different strategies need to be applied in those two regions.

● Targeted reskilling of workforce is needed, in sectors that present specific characteristics and local added value in terms of employment and skills such as:

◦ Decommissioning of lignite power plants

◦ Circular economy

◦ Renewables & energy efficiency

◦ Rehabilitation of polluted soil

WWF Greece participated in the public consultation on the proposed Just Transition Development Plan (dubbed “ΣΔΑΜ”). Our view perspective is that the issue of active local community participation should not be limited only to a typical consultation, but should also be an ongoing and active process with local communities.  

Recommendations & conclusions

The main findings indicate that a rapid coal phase-out is a difficult, challenging and complex task. Greece is one of the very first EU member states to implement such a strategy, it has to be designed in such a way that will improve people’s well-being, avoid/avert negative impacts through targeted investments and an adequate safety net for workers. Civil society, trade unions, local communities and authorities must come together to design a sustainable way forward for their regions. The government should consider how to facilitate their participation and take their proposals into account, especially in the light of the Just Territorial Transition Plans that need to be drafted. Moreover, PPC must engage with the local communities further, so as to create local added value for the communities that supported the electrification of the country in previous decades, as well as suffering from the impacts of it. Following recent developments in the EU level, it is now clear that gas (like all fossil fuels)[2] will not be funded through the Just Transition Fund so the procedure must rely on green and sustainable solutions (e.g. district heating).

Our main concern is to create a process that could be interpreted as a good example, without anyone being left behind. We must make sure that an adequate Just Transition plan is designed and implemented, that will serve as an example to follow and not an example to avoid, which could have further implications, apart from the local communities of course (e.g. undermining the Just Transition process in the wider European context).

WWF Greece’s study, ‘Just Transition & Employment in Greece’ can be seen as a constructive contribution towards this direction. You can find the report here, while the relevant Policy Brief can be found here. The study was funded through the EUKI program as part of the Regions Beyond Coal project, in which four WWF offices are involved: WWF Greece, Bulgaria, Poland and Germany.

Author: Dimitris Tsekeris, Energy Policy Officer, WWF Greece – Project Leader

[1] Greece commits to phase out lignite https://contentarchive.wwf.gr/crisis-watch/crisis-watch/energy-climate/energy/greece-commits-to-phase-out-lignite

[2] Deal on financing a just energy transition in EU regions

https://www.europarl.europa.eu/news/en/press-room/20201207IPR93210/deal-on-financing-a-just-energy-transition-in-eu-regions

Summary of the 3rd Forum of Mayors

The mayors of European coal municipalities met at the Third Forum of Mayors for a Just Transition in Bytom. This edition of the Forum was unique – due to the pandemic and was organised in a virtual formula. Nevertheless, more than 100 people took part in the event, including 40 mayors from Poland, Ukraine, Bulgaria, Germany, Greece, Bosnia and Herzegovina, Czech Republic, Slovenia and Romania. Is Europe closer to a just transition of mining regions?

The host of the event – Mr. Mariusz Wołosz, Mayor of Bytom – talked about the unsuccessful transformation experiences of his city and the challenges facing the decarbonising EU economies. The event included a debate with the participation of, among others, Professor Jerzy Buzek[1], and workshops in subgroups where mayors and employees of regional governments could share their experiences on the transition process. What did those participants share?

ON THE WAY TO CLIMATE NEUTRALITY

Farewell to coal is a challenge not only for the Polish economy. Several EU countries are facing this challenge. This year’s talks at the Forum of Mayors focused on preparations for the launch of the Just Transition Fund, set up by the European Commission to support coal and industrial regions in building a secure future. As Professor Jerzy Buzek noted:

– A well-conducted mining transformation is an opportunity for many European economies, where coal still plays an important role as an energy material. (…) If we are to succeed with the European Green Deal, we must succeed with a Just Transition. It is fundamental for every European, not just those depended on the coal industry. This really is our common problem. (…) The Just Transition Fund itself is an expression of support for citizens living in areas which are going to undergo the most profound changes. This fund is an important element of the European Green Deal.

Normunds Poppens, the European Commission’s Deputy Director-General for Regional and Urban Policy, was invited to discuss and present the state of preparation of the process in the EU. Poppens stressed the serious threat of climate change. Countering it is, in his opinion, one of our most important responsibilities. Therefore, Normund Poppens pointed out the actions taken by the European Union to combat the climate crisis. In addition to the European Green Deal or several ambitious climate targets, he has identified a plan for a just transition as one of the most important but also very difficult projects. As he said, its greatest challenge is not to leave any country, region or person behind. The Just Transition Fund is much more than money for mitigating the effects of transformation – these are funds for reorganising the labour market towards a sustainable development of regions (both urban and rural), supporting green businesses, workers, but also local authorities and the local community. However, a detailed action plan is needed, created with the participation of all stakeholders, including NGOs dealing with the topic of just transition, such as WWF.

NGOs are one of the stakeholders supporting the process in many countries. Above all, they support transparent and bottom-up planning. As the CEO of the WWF Poland Foundation, Mirosław Proppé, said:

– Planning the mining transformation is one of the most important tasks that we are facing. It is necessary for the cities to be able to benefit from this transformation effectively. However, in order to plan any programmes or projects, it is necessary to give an exact date for the departure from coal. (…) Transformation projects cannot be ideas “from behind a desk”: they cannot be brought in a briefcase, from Warsaw. Everyone should be involved in the process of finding new solutions: local and regional governments, local communities, social organisations and NGOs.

The need to involve local governments through a bottom-up approach, and to identify their needs and barriers to development were also clearly heard in all voices. The needs are also often linked to the lack of decisions at the national level, as the speakers mentioned. It also became clear quite quickly that building strategies to stimulate economic growth with a bottom-up approach is not easy. To this end, the countries involved are bringing cooperation at local government level closer. A just transition is part of the international effort to achieve EU climate neutrality by 2050 at the latest.

Local government officials themselves, among other things, spoke about the need to finance both the so-called hard projects (related to energy, revitalisation or infrastructure) and the so-called soft projects (health, education, tourism) from the Just Transition Fund. As mayors stressed, both types of these projects must be treated with equal attention. What should be given importance? It was pointed out that entrepreneurs will not invest in a region where there will be no places for families and opportunities to spend time after work for their employees. It is also not a matter of strongly supporting old business models, but of seeking new ones. Attention was also drawn to the mistakes made during restructuring processes in many regions of Europe, including Upper Silesia, for example.

As Mariusz Wołosz, President of Bytom, explained during the inauguration of the event:

– Bytom is an example of a city that has been particularly affected by mining restructuring processes. Today we are meeting representatives of cities from all over Europe, which are struggling with the same problems as Bytom. Our aim is to share our experiences in order to work together to find solutions to mitigate the effects of the mining transformation in Europe. It is not possible to carry out the process of mining transformation effectively without the participation of local authorities – it is the local authorities that will be the pillar of a just transition, because they are the source of information about the real needs of the inhabitants.

THE MAYORS’ FORUM FOR JUST TRANSFITION

The Forum of Mayors is an international platform for the exchange of experience and knowledge dedicated to the mayors of EU coal municipalities, which was created with the support of WWF, within the framework of the Regions Beyond Coal project. They included their demands in the Declaration for a Just Transition signed by 61 coal municipalities. The inauguration of the Forum took place in 2018 in Kozani – in Western Macedonia, a region of Greece. The second edition took place a year later, in the German town of Weisswasser, a lignite mining region. The next meeting is planned for September 2021 in Bulgaria.

See a video „We are from here!” – a documentary about Just Transition in Poland: https://www.youtube.com/watch?v=BOiwCZVarFk

[1] Jerzy Buzek is a current Member of the European Parliament; former Polish Prime Minister of Poland, former President of the European Parliament and current Chairman of the Committee on Industry, Research and Energy in the European Parliament (ITRE)

On 24 September 2020 from 09:00-12:00 CEST, the third Forum of Mayors will take place, this time online. The host will be the Polish city of Bytom.  The key-note speech will be given by EU Commission Deputy Director for regional policy Normund Popens and Jerzy Buzek MEP.

The virtual Forum takes place at a critical time. The EU is finalising its EUR 17.5 billion Just Transition Fund which aims to support coal regions in moving to climate-neutral economy. Ensuring coal communities can come together to exchange views and experience is therefore more important than ever. 

We encourage all interested mayors, members of local authorities of coal regions, civil servants from relevant regions and others to join the full event, and invite accredited members of the press to join the first part of the Forum.  Register here

The event will have a form of ZOOM webinar, with the option to ask questions for all and dedicated networking and capacity building for public authorities.

Find the agenda below

Why a Forum of Mayors?

Europe is leaving coal behind as it moves towards climate neutrality. While ending coal is good news for the climate and for our health, as well as making financial sense, we must ensure it is done in a safe and fair manner for those who live and work in coal regions. 

Part of that fair shift beyond coal can be helped by cooperation between local governments and the regions impacted. 

For several years, the mayors of coal communes, with the support of WWF, have been exchanging experiences and concerns related to the process of leaving coal under the title ‘Forum of Mayors. Mayors of 58 coal communes have now signed a Declaration for Just Transition as part of the Forum’s work.

A documentary about Just Transition in Bulgaria, Poland, Greece and Germany

Just transition is a buzzword in policy circles today. There is consensus that the transition towards climate neutrality should be a just one. However, when and even if such a transition should really take place, is still met with vastly diverging viewpoints. At the same time, what ‘just’ actually means and what its implications are for national and EU policy is even less certain.

This report – a review of four case study regions of the transition from coal in Europe – illustrates that even though each region is different, the chal- lenges they face to ensure a just transition from coal are strikingly similar.

By analysing these regions and their needs to ensure a just transition, we make five clear headline policy recommendations to ensure a just transition. These should be applied at regional, national and European level in order to deliver a truly just and comprehensive transition from coal, leaving no-one behind.

Given the EU’s new and existing commitments to assist Member States, both technically and financially in the transition (notably to ensure it is just),

Member States now have no excuse but to sign up to the Union’s objective to reach climate neutrality by 2050, a fundamental prerequisite of which is phasing out coal as early as possible. Doing so will also enable transition to be accelerated further, funded better through the Just Transition Mecha- nism and will ensure they are in the best position to make sure it is just.

The EU must furthermore ensure that the support it provides for a just tran- sition can deliver on its promises. The new platform must go further than the existing coal platform, with much greater involvement and a clear defi- nition of the role of all stakeholders in the processes of transition planning. It must also be a beacon of transparency to enable all to access, understand and engage with the transition.

The new Just Transition Mechanism, the pillar of President von der Leyen’s promise to leave no-one behind, will need to enhance the transition through mandating territorial transition plans which include clear timelines for the coal phase-out and which are underpinned by clear and objective analysis.

Just transition in coal mining regions constitutes one of the biggest chal- lenges – and opportunities – of the next decade. Europe must prove its commitment to social justice by ensuring that no-one is left behind, while the EU moves beyond coal and the entire economy shifts to climate neutra- lity before mid-century.