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8Eight Steps for a Just Transition in the Western Balkans

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8Eight Steps for a Just Transition in the Western Balkans April 2021 Eight steps for a just transition in the Western Balkans8 Authors Alexandru Mustață Victoria Shevchuk Editing Emily Gray Design Milan Trivic Cover Andrei Dudea for Greenpeace Romania This publication has been produced with the financial assistance of the European Union. The content of this publication is the sole responsibility of CEE Bankwatch Network and can under no circumstances be regarded as reflecting the position of the European Union. Introduction As climate change becomes a reality, many countries are Coal mining regions, once upheld as the backbone of the economy, already paying a high price for its effects. This has forced them were now considered one of the reasons for the climate crisis. to speed up their actions to address the crisis. Therefore, 197 countries committed to stop harmful activities and change Today's world cannot afford carbon-intensive industries. For their consumption practices by signing the Paris Agreement. this reason, regions rich in coal and lignite must now address Under this Agreement, they promised the following: the challenge of just transition. The Western Balkans countries, many of which are still dependent on these resources, have • to limit the global temperature increase to pre-industrial nevertheless signed the Sofia Declaration and committed to levels well below 2°C, aiming at limiting it to 1.5°C; becoming climate neutral by 2050. In order to do so, they must ensure their countries transition towards decarbonisation, and • to reduce national emissions and adapt to the impacts of just transition is a key aspect of this process. climate change through the measures they choose; and Eight steps for a just transition aims to encourage national • to launch a just transition to combat climate change and to campaigners, civil movements, and local activists to begin the further develop decent work and quality jobs in accordance just transition process in their communities. This publication with nationally defined development priorities. introduces the concept of just transition and the main benefits and challenges that might arise on the way. In this guide, we As an outcome of this agreement, coal mining regions around have included all of the practical knowledge we have gained the globe faced a new reality: countries were supposed to from working with just transition communities and elaborated take immediate action to close coal-fired power plants, shift recommendations - how to engage the community, how to to carbon-neutral technologies and install energy efficiency achieve the just transition process at the national level, where measures. This shocking news spread across Europe’s miners to allocate the funds - as well as successful stories from all over from the west of Spain to eastern Ukraine. Europe. Eight steps for a just transition Eight steps for a just transition in the Western Balkans 3 1. Understanding the concept of just transition What does just transition mean? Just transition is a redevelopment model based on locally designed public policies which creates quality jobs and a decent life for all workers and communities decarbonising their economies. Just transition cannot be achieved without the application of an integrated approach which takes into account all relevant components to produce long-term effects. The concept was created by trade unions in the 1980s and is now a mainstream component of climate action. Here are the benefits of just transition for the main groups of stakeholders: Coal communities States • reskilling and education • reskilling and education • employment generation and job upgrading • employment-generation and job upgrades • social protection and poverty reduction • social protection and poverty reduction • a clean and healthy environment • a clean and healthy environment • sustainable and resilient infrastructure • development of sustainable and resilient infrastructure • access to cheaper green services and products (digital connectivity for energy infrastructure, district • development of local small and medium-sized enterprises heating and transportation networks) • access to cheaper green services and products Companies • development of local small and medium-sized enterprises • job upgrades • transition to carbon-neutral and resource efficient • support for the transition to carbon-neutral and resource technologies efficient technologies • regional development • avoiding pollution and managing natural resources sustainably • investment in new companies and start-ups • easier access to loans and financial support from • integration of climate neutral policies international and state organisations • investment in renewable energy sources • investments in new companies and start-ups • equitable distribution of sustainable and resilient infrastructure • investment in research and innovation • new investment opportunities 4 2. Defining the relevant territory The concept of just transition is designed for areas with the following attributes: • the existence of a dominant industry which has a negative impact on the environment; • a significant percentage of the population which works or has worked in that industry; • a local economy directly or indirectly dependent on that industry. Case study In the town and municipality of Banovići, located in the Tuzla Canton of the Federation of Bosnia and Herzegovina, lignite and brown coal mining have been the only income source for decades. Two thousand seven hundred and eighty employees worked in the coal mining sector in 2017, over 12 per cent of the municipality’s entire population. Fortunately, the situation changed in 2021 when the newly elected mayor initiated a dialogue with international financial organisations (IFIs) on investors' involvement in developing the renewable energy sector and making Banovići a thriving, modern, competitive, and climate- neutral town. Banovići has also developed a Green Agenda for 2021-2031 that Photo: Banovići , Wikipedia sets forth the municipality’s vision for its future. Photo: Majda Ibraković Gacko, Bosnia and Herzegovina Eight steps for a just transition in the Western Balkans 5 3. Knowing the potential We need to have a good understanding of the region in order to come up with solutions. In the initial phase, this can be done by centralising all the relevant data already collected by different national or local institutions. The necessary information is highly diverse and should answer questions such as: • Demographic data – Who are the people who will • Business environment – What other businesses are there benefit from this process and who will support it? or have been created in the past 20 years? What are What is the age structure of the population? How many the needs of these companies? What factors influenced young people are left in the county and how many have their evolution and what is needed to increase their migrated already, in the country or abroad? What are the number of employees? most common professions? • Infrastructure – What are the main transport routes in • Geography – Where is the most fertile soil and which the county? Where are the functional or decommissioned land is suitable for certain types of agriculture? Which industrial parks? How well developed is the utilities areas have the best tourism potential? How much network? degraded land can be reforested, or where can wind turbines or high efficiency solar panels be installed? 4. Decision makers’ agreement Just transition requires involvement from employers, unions, governments and communities, all working together to plan and deliver the transition of their economies, sectors, and companies to carbon-neutral and socially and environmentally sustainable activities. On the one hand, just transition promotes a bottom-up approach, starting from the needs of local communities. On the other, the heads of the regions and the local authorities have an essential role for many reasons: they confer legitimacy because they are elected or appointed to represent the interests of citizens; they own the tools to implement community agreed measures; and they have expertise in specific fields (sustainable development, policy, engineering, renewable energy, etc.). To start the just transition process, all stakeholders should be considered decision makers; therefore, all parties should be involved in reaching an agreement on the process and should have a shared understanding and vision. Photo: Majda Ibrakovic Kakanj, Bosnia and Herzegovina 6 How to reach a decision makers’ agreement Case study The municipality of Upper Nitra in Slovakia initiated a discussion with the main national actors required for a coal phase-out and the preparation of the National Strategy for Upper Nitra. The mayor and her team launched a series of public debates and workshops to create an action plan for the region’s post-coal development and to identify alternatives. To participate in this broad discussion, the municipality invited the prime minister, representatives from the European Commission, mayors, local entrepreneurs, environmental activists and various experts. Upper Nitra was later chosen as one of four pilot areas for the EU’s programme supporting the transition of European coal mining Photo: Nitra, Wikipedia regions, announced at the end of 2017 (Available at: Heroes of Just Transition). 5. Community consultation Just transition is a serious challenge for the entire society, but the communities and local citizens are the most vulnerable and most affected by transition processes and require support and
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