Stara Zagora Just Transition Plan – main priority areas for development

Dr. Rumyana Grozeva, Executive Director of Regional Economic Development Agency & Member of the Board of Directors of the Industrial Zone –

22-25 February 2021 About Stara Zagora Stara Zagora is the sixth-largest city in , and the administrative capital of the Stara Zagora District. The district is situated in the South-Central part of Bulgaria, part of Yugoiztochen NUTS II Region. The District covers 11 municipalities - 10 out which are members of the Stara Zagora Regional Economic Development Agency (SZ REDA) Stara Zagora, in a nutshell, is the champion of Bulgaria in growth and is in the top 3 of the best places to live in the country. Good economic performance comes at a certain price - the area is strongly focused on industry and energy is a leading sector. At the same time, Stara Zagora is home to a fast-growing industry with large representatives of the mechanical engineering, food and electronics industries in the country Stara Zagora shows stable growth in the economic sector: • between 2007 and 2017, gross regional value added increased by a record 113% • GDP per capita reached BGN 17.6 thousand - second in the country (after the Capital City ), registering an 8% growth compared to 2016

The modern Zagore Industrial Zone has the potential to attract more investors and create new jobs. 22-25 February 2021 Stara Zagora District is also known the energy heart of Bulgaria

• The region hosts a coal mine and 3 (three) bigest These days Stara Zagora faces the challenge of the coal power plants: TPP AES , TPP coal intensive and dependency to low carbon Maritsa East 2, Contour Global Maritsa East 3 TPP, economy. that produce approximately 40 % electricity in Territorial Just Transition Plan is 'under Bulgaria, and one combined thermal and electric construction'. coal power plan. The stakeholders are deeply involved. • They are forming Maritsa Iztok (East) Energy The community is becoming more and more ready Complex. The Maritsa Iztok (East) Energy to meet the changes, new investment and industry. Complex is the biggest energy complex in South- Industrial Zone Zagore is planning its next stage as East Europe with significant importance not only Carbon Neutral. on regional but also on national level. Trakia University - unique as multidisciplinarity is • The Complex is in a large lignite coal basin, which focused at life sciences and biotechnologies. includes several mines, enrichment plants, a briquette plant and possesses its own railway system.

22-25 February 2021 The Just Transition Mechanism: WHO WILL BENEFIT FROM THE JUST TRANSITION MECHANISM AND HOW? Making Sure No One Is Left Behind Support will be available to all Member States, focused on the most carbon-intensive regions and regions with many people working in Helping address the social and economic effects of the transition, focusing on fossil fuels. the regions, industries and workers who will face the greatest challenges, and Member States will get access by preparing Territorial Just Transition mobilising at least €100 billion, through: Plans covering the period up to 2030, identifying the most impacted * FINANCIAL SUPPORT: a new Just Transition Fund of €7.5 billion, generating territories that should get support. Plans will set out ways to best address at least €30-50 billion of investments; social, economic and environmental challenges. * InvestEU “Just Transition” scheme, mobilising €45 billion of investment; People and citizens most vulnerable to the transition: a new public sector loan facility with the EIB backed by the EU budget, • facilitating employment opportunities in new sectors and those in transition; mobilising €25-30 billion of investments. • offering re-skilling opportunities; * JUST TRANSITION PLANS for beneficiary regions to steer the investments • improving energy-efficient housing; * ATTRACTIVE CONDITIONS and risk sharing for public and private investors • investing to fight energy poverty; * TECHNICAL ASSISTANCE via a Just Transition Platform to advise and support • facilitating access to clean, affordable and secure energy.

Companies and sectors active in or comprising carbon-intensive Member States and regions with high dependence on fossil fuel and industries: carbon-intensive industries • supporting the transition to low-carbon technologies and economic • supporting the transition to low-carbon and climate-resilient diversification based on climate-resilient investments and jobs; activities; • creating new jobs in the green economy; • creating attractive conditions for public and private investors; • investing in public and sustainable transport; • providing easier access to loans and financial support; • providing technical assistance; • investing in the creation of new firms, SMEs and start-ups; • investing in renewable energy sources; • investing in research and innovation activities. • improving digital connectivity; • providing affordable loans to local public authorities; • improving energy infrastructure, district heating and transportation networks.

22-25 February 2021 Territorial Just Transition Plan of Stara Zagora is 'under construction’№7

• Available Just Transition Fund for Bulgaria: 1,2 billion € Funding rules: • Has to cover: , & Stara Zagora; • The same rules as for ERDF№8 will apply • Stara Zagora is expected to be most impacted; Can be supported 8 • In terms of measures, soft • economic diversification (SMEs, new companies) measures and investment will be eligible №6 №7 №9 • land rehabilitation №9 Officially the planning process started in the end №5 • clean energy & energy efficiency №10 of 2020 with selection of a consultancy company • digitalisation №11 by the European Commission. №10 • circular economy But stakeholders' meetings started in the middle • Reskilling №1 of 2018 supported by De Carb Project (Interreg • job-search assistance, etc. №2 №4 Europe), implemented by SZ REDA – 6 meetings For exhaustive list: Article 4 of JTF regulation №11 Cannot be supported№3 so far & international Social Policy Dialog held • fossil fuels Stara Zagora will receive funding by: • nuclear energy • EU Structural and Investment Funds; • companies in financial difficulty. • Recovery and Resilience Plan;

22-25 February 2021 • Just Transition Fund; Territorial Just Transition Plan of Stara Zagora: main priority areas for development

Sustainable development and New-jobs creation by:

• Economic diversification (SMEs, new companies) – high value added sectors, №6 №7 based on climate-neutral investments№9 and jobs №5 • Clean energy №10 №11 • Biotechnologies • Land rehabilitation №1 • Energy efficiency №2 №4 • Digitalisation№3 • Circular economy • Reskilling

22-25 February 2021 Thank you for your attention!

Stara Zagora Regional Economic Development Agency BULGARIA, 6000 STARA ZAGORA, 127 Stoletov str Dr. Rumyana Grozeva Executive Director of Regional Economic Development Agency & Member of the Board of Directors of the Industrial Zone – Zagore

WWW.SZEDA.EU https://www.interregeurope.eu/decarb/ [email protected]

22-25 February 2021