Blog entry

A flawed rollout: How the EBRD’s efforts to tackle harassment on Tbilisi public transport have fallen short

The EU’s Gender Action Plan for Georgia, disclosed in March of this year, provides information on several other projects that the European Bank for Reconstruction and Development (EBRD) will be financing with the aim of promoting gender equality in the country.

Why does establishing a tracking system matter?

According to a 2023 UN Women study, one in four women in Georgia have faced sexual harassment, with the majority of incidents occurring on the streets, in alleys (41.2 per cent), or on public transport (28 per cent).

The situation is even more concerning for LGBTIQ+ women, especially transgender women, who often navigate public spaces in fear of harassment or physical violence.

The report found that women in Tbilisi are disproportionately affected, with 51.7 per cent reporting incidents compared to those in other urban and rural areas.

Research and surveys have consistently revealed high levels of harassment across Tbilisi’s public transport system, with younger women bearing the brunt of the abuse. The vast majority of these incidents remain unreported, leaving victims without recourse.

Green Alternative and Bankwatch have consistently raised concerns about the sexual harassment and gender-based discrimination that pervades Tbilisi’s public transport network.

We continue to urge the Tbilisi authorities and the international financial institutions that fund transport projects in the city to proactively include women as well as sexual and gender minorities in designing solutions to this problem.

Campaign misses the mark

In June, Tbilisi Transport Company launched their campaign, supported by the EBRD, publicising the availability of the tracking system for passengers to report incidents. However, the campaign, still ongoing, fails to explicitly convey the key message that women – or indeed any passengers – can report incidents of sexual harassment via the hotline.

Let’s not forget that, according to the EBRD, the original purpose of establishing the tracking system was to specifically address gender-based violence and harassment on Tbilisi’s metro and bus routes.

However, in a July article on the EBRD’s website, the bank talked up its progress enhancing Tbilisi’s public transport system, claiming significant strides in passenger safety and highlighting EBRD-funded projects that ‘promote safety for all thanks to an incident tracking system’.

In particular, the bank pointed to its role in helping Tbilisi Transport Company upgrade the hotline to field phone calls on infrastructure issues and reports of harassment on public transport.

Reference was also made to the introduction of new ‘rules and regulations’ for handling reported incidents, accompanied by a city-wide communications campaign urging passengers to make use of the hotline.

The taboo of harassment

This omission severely undercuts the very objective of the tracking system, leaving those most at risk of sexual harassment – women and gender and sexual minorities – unaware that they have a resource to seek help. But is there another reason a targeted campaign explicitly encouraging women to come forward without fear or shame and report incidents of sexual harassment wasn’t taken up?

In Georgia, party politics, particularly the ruling party’s influence, pervades all aspects of public life. From ministries and municipalities to agencies and state-owned enterprises, the party strives to maintain control wherever possible.

This means that public-facing activities, including information campaigns, must always toe the party line. With October’s parliamentary elections on the horizon, control (and self-censorship) is being exercised more stringently than ever.

Georgian Dream – the ruling party in Georgia – has made the protection of traditional ‘family values’ one of the central pillars of its election campaign. This has led to hate-mongering against the LGBTIQ+ community and the steady erosion of women’s and minority rights.

In this climate, addressing the widespread issue of sexual harassment on Tbilisi public transport through a public outreach campaign would directly contradict the party’s carefully crafted narrative. Any meaningful conversation about gender-based violence would risk running counter to the government’s focus on conservative, populist messaging.

What a difference a year makes

To illustrate the point, we only have to compare the 2024 EBRD-backed public campaign with a similar initiative launched in summer 2023 by the interior ministry and backed by the US embassy.

While the latter openly addressed sexual harassment, this year’s watered-down campaign remains conspicuously silent on the issue. This discrepancy speaks volumes about the selective messaging at play and how the key issue has been avoided.

The message on the first advertisement reads: ‘Sexual harassment in public spaces is a form of violence and is punishable by law. If you are a victim of sexual harassment or have information about such an incident, report it to the police. #Dontkeepsilent #Donthideit’

The message on the second advertisement reads: ‘If you encounter situations that put you or other passengers at risk, reach out to us. Let’s create a safe environment together.’

EBRD oversight in short supply

The EBRD has failed to fulfil its role in ensuring that the incident tracking system meets its express purpose of tackling gender-based violence and harassment by clearly communicating that reporting harassment is both possible and encouraged.

Given the prevalence of gender-based violence on public transport, there’s no point in establishing a tracking system if it doesn’t ensure that women as well as gender and sexual minorities are aware of its existence and understand they can use it to call out sexual harassment.

Unfortunately, in conservative societies like Georgia, reporting sexual harassment often carries with it the weight of judgment, stigma, and shame. For a tracking system to be effective, it must be accompanied by a campaign that actively contributes to breaking down these barriers and fosters a supportive environment.

Empowering these groups to report incidents and ensuring their concerns are taken seriously is critical for creating a safer public transport system in Tbilisi.

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On 8 October, Bankwatch together with Green Alternative, Gender Budget Watchdog Network and Sarajevo Open Centre organised a webinar entitled ‘Combatting gender violence in public transport in the Western Balkans and South Caucasus’. Watch the recording here.

Unfit for 55: How EU climate money is supporting gas-fired heating in Slovakia

The heating and cooling sector in central and eastern Europe requires urgent transformation if the region is to end its dependence on dirty, expensive fossil fuels. The EU’s Modernisation Fund was set up with this exact goal in mind.

Yet, our analysis of 37 projects financed by the Modernisation Fund in Slovakia between 2021 and 2023 reveals a significant portion of the fund is still being used to sustain fossil gas. A staggering EUR 55 million – almost half the amount earmarked for district heating projects in Slovakia – has been allocated for systems running on fossil gas, despite the EU’s target to cut emissions by 55 per cent by end of the decade.

Investing in fossil fuel dependence directly undermines the EU’s emissions reduction goals under the Fit for 55 legislative package. Tightening the rules governing the Modernisation Fund must be made a priority if the fund is to truly support, rather than hinder, Europe’s energy transition.

District heating in Slovakia

Slovakia’s district heating and cooling sector supplies heat to 1.8 million people, accounting for more than 30 per cent of the country’s heating consumption. To modernise the sector, Slovakia has already adopted five state aid schemes totalling EUR 1.35 billion.

These schemes, which cover all aspects of the district heating and cooling sector, including industrial systems, are supposed to avoid increasing fossil gas consumption – at least in theory. The funding is intended to support networks, energy storage, smart technologies, and high-efficiency combined heat and power units using a range of fuel types, including gaseous fossil fuels (solid fossil fuels are exempted), all renewable energy sources, and hydrogen.

However, in the first call for funding, which consisted of four rounds (the final two rounds were cancelled by the new government), only upgrades for combined heat and power units running on fossil gas were approved.

No support was given to new combined heat and power units, with the exception of one new high-efficiency combined heat and power unit, which will replace an existing coal-fired combined heat and power unit with one running on fossil gas.

Modernisation Fund proves a mixed bag

Slovakia has received EUR 116 million from the Modernisation Fund to modernise its district heating systems. It materialised in the form of 32 signed and published grant agreements. Unfortunately, six of these projects directly support gas-based combined heat and power units. In other words, nearly half of the funds (EUR 55.5 million) allocated to the heating sector supported fossil fuels.

The remaining 52.5 per cent is earmarked for projects aimed at building new and modernising existing district heating and cooling networks (typically powered by fossil fuels) and replacing fossil-gas boilers with biomass boilers.

Interestingly, EUR 26.2 million has been allocated to three biomass projects and associated networks, with the remaining EUR 34.3 million in non-fossil fuel investments going towards upgrading networks, incorporating smart technologies, and improving energy storage.

However, the fact remains that most of the district heating and cooling systems in these upgraded networks continue to rely on fossil gas-powered combined heat and power units (see table below).

Signs of reform?

Within the period analysed, no projects supporting geothermal energy or heat pump technologies were funded. However, the most recent disbursement in June 2024 saw EUR 35 million allocated to a new state aid scheme, adopted in March 2024, which will support renewable energy sources and hydrogen in district heating and cooling systems.

The call for this scheme, expected to be published later this year, could lead to the rollout of the very first projects dedicated to geothermal energy and heat pumps.

District heating projects supported by the Modernisation fund in Slovakia (2021-2023)

Type of project supported	Number of projects	Amount in EUR million	Percentage of total allocated projects
Total funds allocated to the district heating and cooling sector	32	116	100%
Support for combined heat and power units running on fossil gas	6	55.5	48%
Biomass projects, including networks	3	26.2	22.5%
Upgrades to networks	23	34.3	29.5%

Source: Independent calculation based on data from the Slovak government’s central contracts register.

I would like to thank Jana Cicmanova for compiling the data and Milan Zvara for his feedback on the analysis.

Bridging the mobility gap: Tackling transport poverty in rural Latvia

Viļāni, although home to only 2,800 inhabitants, is the only town in the entire Rēzekne region. Comprising rural areas and small villages, Rēzekne region is Latvia’s largest administrative region with a population of 28,300 people.

Transport gaps

Mobility is a challenge not only in Latvia’s sparsely populated countryside but also across much of Europe’s rural areas. Low population density and vast distances between locations often lead to underdeveloped public transport systems.

Infrequent routes, schedules are not always suited well with the daily needs of the locals, and, in some cases, a complete absence of local transport can make daily life difficult. The problem is that, from a public spending point of view, there’s no economic justification for maintaining underutilised public transport routes covering long distances.

Yet, in 2022, Latvia had the lowest number of passenger cars per 1,000 inhabitants in the entire EU, with just 414 cars per 1,000 inhabitants. The EU average was 560, an increase of 14.3 per cent over the last decade. However, instead of increasing their reliance on private cars, it’s vitally important that Latvia and other countries buck the trend. But how?

Breaking the cycle of car dependence

To limit the heating of our planet, the EU transport sector must undergo rapid changes to significantly reduce greenhouse gas emissions. And Latvia is no exception. Its transport sector is the primary emitter of greenhouse gases out of all the sectors in the country not covered by the EU’s Emissions Trading System, making up one-third of all emissions.

The electrification of private cars can only partially offset these emissions, as it wouldn’t be environmentally sustainable or economically feasible to replace the existing car fleet on a one-to-one basis with electric vehicles. It’s clear, then, that dependence on private cars must be reduced.

To achieve this, alternative means of transport must become more available, attractive and convenient. This will require significant investments in public transport, micromobility schemes, and car-sharing practices, rethinking the accessibility of services, and exploring other potential solutions. Indeed, these actions are all the more urgent given the future expansion of the Emissions Trading System, which will include the transport and housing sectors from 2027, is likely to drive up fossil-fuel prices.

Rural life comes under threat

However, the necessary transformation of the transport sector must also be carried out in a socially equitable way. Special attention should be paid to rural areas, where residents tend to be less affluent, already experience transport poverty, and are much more dependent on private cars than city dwellers. As a result, rural populations are also far more vulnerable to policy changes.

From a security perspective, it’s also important to prevent the further depopulation of rural areas, especially those near the Russian border. Viļāni, located just 10 kilometres from where a stray Russian drone crashed on 7 September, highlights this concern. Locals have expressed their fears over security, which is closely tied to mobility.

For instance, the availability of services and the opportunities to attend cultural events in bigger cities, such as Rēzekne, is an important factor for young people when deciding whether to remain in the region. In many ways, mobility is the lifeblood of rural communities such as Viļāni. Without it, they cannot be sustained and, needless to say, raises serious security concerns.

At our meeting, active citizens of Viļāni told us of their daily struggles with mobility and gaining access to services. But they also shared some of the creative solutions they’ve come up with together. The story of ‘Lucia from Sokolki’, a retired lady who owns a car and voluntarily provides transport services to her fellow retirees, serves as a great illustration.

Lucia drives her neighbours wherever they need to go, whether it’s to a doctor’s appointment in Rēzekne or a concert in Daugavpils. But this isn’t an isolated case. Similar examples of community-driven solutions are to be found in many other rural areas.

From the perspectives of EU funding policy and planning, it’s up to decision makers to find the best solutions to help these people, effectively utilise existing resources, and think ‘outside the box’ when tackling transport poverty in the regions.

Actionable insights

Among other suggestions, the locals expressed strong support for developing cycling infrastructure and improving the quality of rural roads, which would greatly enhance their mobility without increasing their dependence on fossil fuel-based transport.

The concept of bringing services to local residents – instead of requiring them to travel to the big cities – was met with great positivity. For instance, setting up shared general practitioners’ offices, where doctors can visit small towns or villages on a regular basis, emerged as one of the most effective solutions.

We were delighted to see the meeting spark so much animated discussion, with locals already brainstorming on solutions they mighty implement independently. The insights gained from the meeting will certainly be reflected in the roadmap for reducing transport poverty in Rēzekne region, which researchers from Riga Technical University will develop by the end of this year.

Romania’s big bet on fossil gas proves a reckless gamble

The country’s newly published energy strategy argues for increased gas consumption based on plans for new power plants and distribution systems. According to both the national energy strategy and the national energy and climate plan, due to be released this month, Romania will add 2 gigawatts to its gas-fired power production capacity by 2030. However, the number of projects in the works is actually much higher.

Romania is currently actively building and planning a number of gas-fired power plants with a combined capacity of over 3 gigawatts. New projects slated for Turceni, Isalnita and Mintia are being pursued to replace the country’s ageing coal infrastructure and ‘secure’ the national energy system.

But while most EU countries are trying to reduce their reliance on gas after Russia’s full-scale invasion of Ukraine, the Romanian government seems oblivious, pressing ahead with plans to open the Neptun Deep gas field in the Black Sea.

Starting in 2027, OMV-Petrom expects to extract around 100 billion cubic metres of fossil gas over a period of at least 20 years, well beyond the time Europe’s energy system aims to be free of fossil fuels. According to the country’s energy strategy, this would position Romania as a major regional fossil gas exporter starting in 2027.

But Romania needs energy now. Soaring temperatures this summer have led to a surge in the use of cooling devices, with the national power system unable to meet increased demand, resulting in record-high imports. The government has even warned of possible local power outages.

The planned gas power plants will take at least three more years to become operational and have already encountered considerable delays. The 850-megawatt Isalnita power plant is still in the permitting stage, while the Turceni plant (475 megawatts) is only now undergoing tender preparations. Though the initial plan was to start operations in 2026, officials have now suggested the end of 2027 as a more realistic target.

Meanwhile, the Mintia mega power plant, with a capacity of 1700 megawatts, appears to be on track. The project has obtained an environmental permit, secured a construction contract, and already received the delivery of its first turbine. The power plant is expected to be completed by mid-2026. However, its sources of financing remain a mystery.

In theory, renewable energy projects should be faster to build, as the permitting process is typically shorter than that for a huge concrete carbon emitter. Solar farms, for example, generally take 8 to 18 months to complete1 from planning to implementation, compared to a minimum of 24 months only for constructing a gas plant. In Romania, solar farms with a total capacity of 2000 megawatts are expected to come online in 2024 and 2025. If these deadlines are met, solar energy, coupled with energy storage solutions, could meet Romania’s energy demand as early as next summer.

The hydrogen mirage

The companies behind these new gas projects claim their power plants are ‘hydrogen-ready’, touting their capacity to burn a blend of fossil gas and hydrogen, usually at around 20 per cent. While they claim to eventually transition to 100 per cent renewable hydrogen, the economic realities point to a far less appealing future.

Recent reports indicate that the price of renewable hydrogen in Europe will not drop below EUR 5 per kilogramme by 2030 and EUR 3 per kilogramme by 2050. In contrast, the equivalent energy content of gas (3 cubic metres) currently costs around 1 EUR in the EU. Given that fossil gas is already one of the most expensive fuels for electricity production in the EU, rising fuel prices could further jeopardise the economic viability of these power plants. As a result, there’s a strong likelihood that these plants will continue to primarily run on fossil gas, derailing Romania’s trajectory towards an economy free of fossil fuels.

The documentation for these projects also suggests that hydrogen may just be a fig leaf for continued fossil fuel dependence. The technical details for Isalnita and Turceni make zero mention of ‘hydrogen-ready’ components. Only the Mintia project refers to hydrogen generators and storage capacity. In any case, these projects will need additional investments to increase hydrogen usage.

The truth is, the Romanian government’s megalomaniacal pursuit of gas needs a reality check. It must increase its support for electrification by investing in networks and energy storage, while simplifying bureaucratic procedures for renewable energy projects, such as land acquisition. The country already has an installed gas capacity of around 3 gigawatts, with plans to increase this to 5.3 gigawatts by 2030 according to the national energy and climate plan. However, the actual projects in development indicate a significantly higher capacity.

New modelling published by the Regional Centre for Energy Policy Research (REKK), a Budapest-based think tank, shows that new gas capacity in Romania could be reduced to as little as 600 megawatts in total. On the other hand, a shift to hydrogen could risk turning these planned power plants into stranded assets. Even 600 megawatts is excessive given the present climate chaos, highlighting the urgent need for Romania to find viable alternatives, including demand response strategies.

Communities focus on sustainability

Though Romania’s government and utility companies continue to heavily promote gas as a solution for regions in transition, local communities are increasingly looking towards sustainable alternatives. While they accept gas as a short-term measure, they don’t see it as a viable long-term fuel. Instead, some communities have chosen to focus on energy efficiency and sustainable energy to support local residents.

For example, the small town of Turceni in the Gorj coal region is implementing multiple EU-funded green projects, while other towns are taking the opportunity to install municipal solar farms and support prosumers. RenewAcad, the largest network of renewable energy training centres in southeastern Europe, is helping to skill local residents to operate solar and wind farms and manage power systems. This proves that where there’s a willing market, there’s a way.

Accelerating the development of both distributed and large-scale solar production capacities is key to enhancing energy security and ensuring a sustainable transition. Alongside other regeneration initiatives, this approach can help productively utilise brownfield sites and boost electricity generation capacity at the quickest rate. For instance, there’s huge potential to harness the abundant sunshine on offer in the southwestern coal region of Gorj as a way of attracting new business, reducing pollution and engaging communities. By embracing renewable sources of energy in this way, Romania can secure a cleaner, more sustainable future for its citizens.

Western Balkans: Chaotic, opaque selection process for EU infrastructure funding needs major improvements

The WBIF was set up by the European Union, international financial institutions (IFIs), bilateral donors and the governments of the Western Balkans in 2009 and provides finance and technical assistance for investments, mostly in infrastructure, but also energy efficiency and private sector development. It’s a key vehicle for delivering EU funding under initiatives like the Economic and Investment Plan, and at least 50 per cent, or EUR 3 billion, of the EU’s new Reform and Growth Facility is also to be disbursed through the WBIF.

To enable countries to propose projects for funding, the WBIF has created a project selection process that involves each country creating lists of priority projects called Single Sector Project Pipelines which are then combined into a unified list called a Single Project Pipeline. Projects from the list that attract ‘sponsorship’ from one of the international financial institutions can then be put forward for WBIF financing, subject to further screening and selection.

Unlikely that the best projects are being put forward

In our new briefing, From quantity to quality: How to improve the infrastructure project selection process under the Western Balkans Investment Framework? we’ve taken a look at how the project pipeline lists are created, with a deeper look at North Macedonia. We’ve found a surprisingly chaotic situation which casts serious doubt on whether the best projects are being put forward for financing.

Obviously the WBIF’s selection process does not solely rely on the countries’ prioritisation, but the problem is that neither the national-level project selection process nor the WBIF assessment are transparent or based on clear criteria.

The national processes result in ridiculously long lists of projects which cannot possibly all be implemented. For example, North Macedonia’s latest list has 181 projects while Montenegro’s has 154 and Bosnia and Herzegovina’s has 143. It is impossible for the public to understand how they were chosen and which ones are the real priorities.

And the WBIF does not publish any information about projects before it approves them for funding, nor is it clear what criteria are used to assess them. In previous meetings with the European Commission, we’ve heard claims that the projects are all well-known because they are selected from existing national strategies. However, deeper examination of the WBIF rules and the lists shows that this is not necessarily the case. And national strategies are frequently outdated or do not contain details about individual projects.

The Commission has also shared that something called the EU Greening Facility helps to assess the projects’ environmental credentials, but we’ve approached them twice by email and so far received no response.

A deep dive on North Macedonia

We took a deeper look at North Macedonia after a December 2022 state auditor’s report heavily criticised the project selection process for the list adopted earlier that year. But what we found also reflects a lack of clarity on the EU level about how the project selection should be done.

Our main finding is that the entire process is plagued by inconsistencies between sectors and ministries, with different selection methodologies for the creation of the Single Sector Project Pipelines for e.g. energy and transport. This makes it impossible to understand how some of the projects were categorised and prioritised.

For most sectors there are sectoral working groups to discuss and prioritise the projects but not all of them are active and most do not include civil society. For the energy sector, no working group exists, so project selection is done entirely behind closed doors by the relevant ministry negotiating with the relevant companies.

As a result of this untransparent process, North Macedonia’s Single Project Pipeline includes some projects that do not really make sense. An illustrative example is the Gas Interconnection Republic of North Macedonia – Republic of Kosovo, which is claimed to have a high maturity level of 4, yet Kosovo’s Energy Strategy does not foresee the project going ahead at all.

How the ranking impacts on projects’ financing prospects is also unclear since, for example, financing has been secured for the ‘mature’ transport project Construction of new motorway section A2 Bukojcani – Kicevo even though it is near the end of the list with a fairly low ‘strategic relevance’ score and a modest maturity level ranking of 2.

In addition, a highly controversial road project was added to the list of mature projects in the most recent list: Construction of state road R1209, Section Tetovo – Border crossing with Kosovo (Prizren). The road is supposed to go through the heart of the Shar Planina National Park and is strongly opposed by the national park authorities. It has the lowest maturity level ranking 1 and had no project documentation prepared at the time of the approval of the list. It also has a very low ‘strategic relevance’ score, yet it is on the list of mature projects, indicating political prioritisation rather than a genuine strategic assessment.

No fewer than 73 of North Macedonia’s 181 ‘priority’ projects are in the transport sector, and these are mostly for roads, showing a massive inter-sectoral imbalance and failure to promote modal shift.

Fossil fuel infrastructure projects costing between EUR 1.4 and 1.8 billion are also on the list, while only EUR 215 million worth of much-needed grid improvements are included, and energy efficiency projects are limited to EUR 50 million.

Worryingly, even more money is now expected to be set aside for fossil fuels than was the case in 2022, when the related projects looked set to cost EUR 1.2 to 1.6 billion.

An obvious imbalance is also visible in the renewable investments: at least EUR 1.3 billion is intended for investments in climate-vulnerable, biodiversity-damaging hydropower, while only EUR 400 million are planned for investments in solar and wind together.

The way forward

In order to overcome these issues, the European Commission needs to update the WBIF methodology for creation of the sectoral and single project pipelines and require the establishment of sectoral working groups and proper regulation of their work. A cap on the number of projects per pipeline would also help to ensure governments truly prioritise.

In addition, the working groups’ activities have to be transparent and participatory, and project selection to include various relevant stakeholders, in order to ensure the selection of projects that are actual strategic priorities. To ensure this, the groups need to include academics and CSOs at the very least, but also the final draft single project pipeline has to go through proper public consultation before it is sent for government adoption.

The existing single project pipelines need to be revised through an updated process before future financing decisions are made through the WBIF. This will probably speed up the implementation of projects and reforms in the recipient countries as efforts will not be spread out over such a large number of projects.

The greening component of WBIF financing also needs to be more transparent, with a clearer emphasis on modal shift in transport and more support for circular economy investments such as waste prevention, re-use, recycling and composting.

Financial support for new fossil fuel installations in the Western Balkans must be discontinued, including a halt to technical assistance or financing for gas projects, or any projects that extend the lifetime of existing fossil fuel infrastructure. Ambitious targets for deep renovation of buildings, prioritising the integration of heat pumps, heat storage systems, and other sustainable renewable energy-based technologies for production and storage of electricity and heating, should be supported to increase the share of sustainable renewables and implement energy savings in different sub sectors.

Only by implementing these measures can we be sure that real priority projects are being put forward by the countries and ensure the most appropriate use of limited EU public funds.

Even with hard work, a just transition needs long-term support

Since the late 1970s, the town of Turceni has been home to a massive lignite-fired power plant. Its seven 330-megawatt (MW) units were completed between 1978 and 1987, making it the largest power station in Romania.

The plant has brought both prosperity and pollution. In December 2013 it also brought tragedy: damage to the ash landfill dam caused a metre-thick layer of ash sludge to flood 15 hectares of agricultural land and 10 households in the nearby Submaidane settlement. To this day wells remain unusable for drinking.

Unit 6 retired in 2006, and the other units have been closing one by one since 2019. Only unit 5 is now operating regularly, and only until 2025, when it will be put into cold reserve.

A 475 MW combined-cycle gas turbine plant is planned to replace the coal plant at Turceni, supposedly by 2026. Scandalously, funding from the EU Modernisation Fund has been approved for the project, despite it locking Romania into increased fossil gas use.

And while it might sound big, a new gas plant will not help to retain many jobs: it will be highly automatized.

More positively, a 112 MW photovoltaic plant is also planned on the ash dump, also to be funded by the Modernisation Fund. This will also bring very limited employment opportunities, but represents an excellent use of otherwise dead space.

A hive of activity

Turceni has no alternative but to pursue new economic directions, and its authorities are fully aware of this. In late July, we visited deputy mayor Lucian Margineanu to hear more about the town’s efforts so far.

Despite Turceni’s small size – it has around 7000 people – the local authorities are making substantial efforts both to attract new businesses to the area and take advantage of existing funding opportunities to advance the local energy transition.

They have held talks with companies recycling photovoltaic panels, manufacturing cold cuts and beverages, but have yet to attract significant new economic activities.

The EU’s Just Transition Fund has not even reached the region yet, as no calls for local authorities have been launched – only one for small and medium enterprises.

Things are moving faster with other EU funds though, usually co-financed by the municipal budget. The local authorities have no fewer than eight EU-funded projects in areas such as energy-efficiency renovations of housing blocks and municipal buildings. The town hall itself was closed when we visited, due to an ongoing renovation. They’ve also applied for Modernisation Fund support to install a 350 kilowatts photovoltaic park near the town’s stadium.[*]

A staff member is also available to help residents access a programme by the national environmental fund to support the installation of solar photovoltaics on rooftops, which is expected to start again shortly after a hiatus, and will include battery storage options. The town also has a waste separation project starting soon with support from the Recovery fund, as well as an urban mobility plan.

The results of this work are already visible: the town is well-maintained and neat. Major gaps exist, but mainly as a result of a lack of financial support programmes by the national government. Energy efficiency renovations are only supported for housing blocks, not individual houses, despite significant needs, and no incentives for heat pumps are available in Romania.

But the town has a new gas distribution system, which will make the transition from fossil fuels even harder. Since 2021, houses can be connected to the gas distribution grid for free – a major step in the wrong direction which will take years to turn around.

Putting more meat on the transition will take time and needs continued EU support

Turceni perfectly illustrates the difficulties faced by local authorities in coal-dependent regions. People are used to massive coal power plants and mines and find it hard to accept that they will not be replaced by equally gargantuan industries.

Smaller and less intrusive developments have lower environmental impacts and may provide safer jobs, but these come incrementally. People are beginning to feel impatient about the area’s redevelopment and some are moving to larger cities.

Turceni shows that EU funds are reaching coal-dependent regions and making a visible impact. But even where the local authorities are proactive, this process takes time and funds supporting energy transition are not enough to ensure wider economic redevelopment.

A just transition needs constant support over decades: as the EU considers its next budget from 2028 to 2034, it needs to ensure continuous dedicated support for such regions through the Just Transition Fund.

[*] In light of new information, we’ve updated the part of the text concerning Turceni’s application for support for a photovoltaics project via the Modernisation Fund (September 3, 2024).

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