Blog entry

RePower the Regions seminar empowers municipalities for a sustainable future

Organised by non-governmental organisation Green Liberty in partnership with the municipality, the educational seminar was also aimed at building momentum for a greener, more sustainable future.

As part of the event, local government and their staff were given a practical training on how to increase capacity and proactively incorporate renewable energy solutions, energy efficiency improvement measures, and zero-emission technologies into their construction plans.

Under the expert guidance of energy consulting company Ekodoma, participants learned how to apply a design-led approach to tackling the challenges of integrating renewable energy solutions – from brainstorming innovative ideas to prototyping solutions.

The training provided a great example of how to organise an energy efficiency initiative in a participatory, interdepartmental manner, using collective intelligence to come up with the most suitable and ambitious solutions.

The seminar was organised as part of the LIFE project ‘RePower the Regions: Ambitious and inclusive clean energy plans for repowering the just transition regions’.

Photos by Green Liberty.

Statement by Bankwatch’s Executive Director on the shrinking space for civil society in Georgia, Kyrgyzstan and other EBRD’s countries of operation

In recent years, Bankwatch has sounded the alarm about the deterioration of civil society space in the countries of Central and Eastern Europe, the Caucasus and Central Asia, in order to alert the international financial institutions that we monitor. Unfortunately, the situation is worsening with the recent adoption of the “foreign representatives” law in Kyrgyzstan and a similar “foreign influence” bill awaiting final approval by the Georgian parliament. In reaction to mass protests of Georgian society, the government is taking an increasingly repressive approach leading to harassment and intimidation of Bankwatch staff, our member group there and other Georgian civil society partners.

We appreciate the statements made by the President of the EBRD, Odile Renaud-Basso, expressing concerns about the situation in Georgia. However, if the situation continues to escalate, we expect the EBRD, together with other international financial institutions such as the Asian Development Bank and the World Bank Group, as well as bilateral agencies, to step up the pressure and put on hold any public sector financing that would benefit the government, as well as any financing of private companies linked to the ruling Georgian Dream party.

In Bankwatch’s experience, it is clear that civil society is crucial for reducing the risks of implementing investment projects, avoiding corruption, preventing the misuse of public finance and increasing benefits for the public. It is therefore in the development banks’ interest to ensure that civil society continues to play its essential role in contributing to the success and sustainability of investment projects.

Destroying while rebuilding: Flawed hydro project set for Polish just transition region needs a rethink

Eastern Wielkopolska, one of Poland’s just transition regions, urgently needs to repair the damage caused by decades of lignite mining. One controversial hydrological project slated for the region aims to flood open pits and stabilise water levels. But while these measures appear to be positive steps towards making amends, the environmental impacts of the project have not been assessed, which is likely to result in a number of unintended and damaging consequences.

There is a current acceptance that Poland is riding on the tail end of Europe’s just transition. However, Eastern Wielkopolska would beg to differ. What makes this region unique is that it has officially pledged to phase out coal by 2030 and to achieve climate neutrality by 2040. Both of these ambitious targets precede those of the entire EU region by a full 10 years.

In April 2022, Polish energy and mining company ZE PAK and state hydrological authority Wody Polskie announced a project aimed at increasing water retention and restoring water resources in post-mining areas in Eastern Wielkopolska. The project is co-funded by the Just Transition Fund under the 2021–2027 European Funds for Wielkopolska programme.

On the face of it, the project seems environmentally progressive. To address the damage caused by years of lignite mining, the project aims to flood open pits and improve the water regime in the region. Carrying out a hydrological project of this kind is undoubtedly essential for the area. It should also be implemented while respecting the principle of ‘do no significant harm’ and prioritising restoration measures for the Warta River Valley.

But the devil is in the details. Key environmental standards have been overlooked during the preparation of the project’s environmental implementation plan, which also omits a number of other significant details. This lack of oversight has been heavily criticised by local environmental organisations, culminating in a heated discussion at a recent meeting of the subcommittee for Eastern Wielkopolska, which advises institutions and monitors the spending of EU funds, some of which are earmarked for water improvement measures.

Organisations closely monitoring the project argue that no objections to the hydrological project would have been raised had it been primarily designed as a restoration programme. But ZE PAK and Wody Polskie take a different view. ZE PAK, a company that extracts and produces energy from lignite, is currently phasing out its open pits. Wody Polskie is a state-owned institution responsible for water management.

According to the president of ZE PAK S.A. Piotr Woźny, local environmental activists are delaying the decision-making process and blocking the distribution of PLN 120 million (EUR 27 million) from the Just Transition Fund by criticising the project and demanding changes.

Yet, nothing could be further from the truth. Local activists do not intend to block the project, but rather to improve upon the more positive aspects of the plan. Unfortunately, the environmental impacts of the planned investments have not been subject to a rigorous enough assessment. There are also concerns about its potential negative impact on Natura 2000 sites and other nature conservation areas. But the biggest issue is the likely negative impact on the water balance of the Warta river.

The project threatens the ecosystems associated with the Warta River Valley and its tributaries, as well as the inhabitants of these areas.

A water crisis in the making

Although the project contains many elements that will improve the water situation in the region, it threatens the ecosystems associated with the Warta River Valley and its tributaries, as well as the inhabitants of these areas. Water intakes for many towns and cities, including Poznan, are linked to the Warta riverbed.

‘We’re most concerned about the idea of drawing water from the Warta for the purpose of flooding the closed opencast lignite mines. According to the plan prepared by Wody Polskie, water would be taken even when very little remains in the river – and at flows lower than the multi-year average, which are recorded over two-thirds of a year for the Konin area. Exacerbating the Warta’s water deficit threatens protected species and habitats. And it may also result in water shortages from waterworks using the river intakes,’ warns nature conservationist Jacek Engel of Greenmind Foundation.

ZE PAK itself has acknowledged that the process of raising groundwater levels (as well as the water table in the open pits) is proceeding faster than planned and could have been implemented without taking water from the Warta on such a massive scale.

Short-term thinking leads to long-term delays

The Frank Bold Foundation has called for the project should be subject to a comprehensive strategic environmental impact assessment. This procedure would allow for the cumulative impacts of the project on the environment in the Wielkopolska region to be assessed and understood.

Even though ZE PAK and Wody Polskie have not carried out a strategic assessment procedure, they have already started work on obtaining environmental permits for the 25 individual projects that make up the venture. But because they’re assessing investments on an individual basis, the cumulative impact of the proposed actions on the environment are difficult to determine.

‘If the project developers had carried out a strategic assessment at an early stage, the project would now be at a much more advanced phase. These shortcuts mean we’ll have to wait longer to improve water conditions in the region. This case should serve as a warning for similar projects being planned in other regions. Investments of this size, on top of being publicly funded, must meet the highest environmental standards. Otherwise, they will be pro-environmental in name only,’ says Adrian Chochoł, a lawyer from the Frank Bold Foundation.

Pouring EU money down the drain

Another problem, perhaps the most serious in terms of finance and the economy, may arise from this investment fever.

‘We appreciate that ZE PAK and Wody Polskie are committed to this just transition project for Eastern Wielkopolska – a transformation that takes into account social and environmental contexts. But a hydrological project designed in this way is likely to violate Polish and EU law. This will only worsen the state of the region’s waters and the quality of life of its inhabitants. Plus, we’ll never get back the money invested,’ says Krzysztof Pietruszewski, a Polish Green Network activist from the Wielkopolska region.

Members of the subcommittee for Eastern Wielkopolska warn that a project that raises so many legal and environmental issues is unlikely to be approved by the European Commission for reimbursement from the Just Transition Fund. The loss of PLN 120 million (EUR 27 million) would certainly benefit neither the region nor anyone involved in the project. Given its positive objectives, this project should not be stopped. However, it needs to be thoroughly reassessed to bring it in line with EU standards and legislation.

Above all, the promoters should design and implement a reliable and strategic environmental impact assessment of the activities planned within the scope of the project, and fully consider criteria applying to the ‘do no significant harm’ principle. Finally, all works that compromise the ability of the project to meet environmental objectives in relation to water bodies and protected areas under the EU Water Framework Directive should either be redesigned with expert input or abandoned.

Latvia considers a risky nuclear energy development path

Inadequate power generation capacities and the search for solutions

In 2023, Latvia experienced a positive year in terms of electricity generation, mostly due to favourable conditions for hydro energy generation, coming from large hydropower plants built in the previous century. Local generation in Latvia covered 88.3 per cent of the country’s electricity consumption (an increase of 21 percentage points from the previous year), which is the highest proportion since 2017. The remaining amount of electricity was imported from neighbouring countries. 77.6 per cent of the electricity produced in Latvia was generated from renewable energy sources, including energy from hydropower plants that cannot be seen as sustainable by today’s standards.

Even though the overall balance for 2023 shows a rather positive picture, Latvia is in need of more renewable and sustainable resource-based power-generating capacities for several reasons. Not every year is as generous for hydro energy as was 2023, and Latvia still relies significantly on fossil gas-generated power and heat. In 2023, 22.4 per cent of all generated electricity in Latvia came from fossil gas, which is a costly source of energy not only for our wallets, but also for the climate. In future, it is expected that electricity consumption will grow due to the electrification of heating and transport, as well as of industrial processes, which is much needed in order to reduce greenhouse gas emissions. This indicates two important needs: one is for more local renewable energy generation, and the other is for energy balancing, storage solutions and new interconnections with other EU regions. These would help decarbonise our energy sector, as well as bring down electricity costs.

The Ministry of Climate and Energy is responsible for finding solutions to these needs. Various projects are in progress or are planned. For instance, REPowerEU funds are financing the establishment of one of the most powerful electrical energy storage battery systems in Europe for energy balancing needs, which will be especially crucial when the Baltic states disconnect from the power grid with Belarus and Russia at the beginning of 2025.

However, the Ministry is also exploring opportunities for developing nuclear capacities. In a recently prepared informative report on nuclear energy development opportunities in Latvia, the Ministry identified two possibilities for nuclear energy development. One is to cooperate with Estonia in nuclear energy project development (either as an active developer or as an investor). The other is to develop small modular nuclear reactors (SMRs) in Latvia, independently from Estonia. The report concludes that the most desirable direction for Latvia seems to be cooperating with Estonia in one way or another, if the parliament decides to proceed with nuclear energy development at all. The presentation of the report to deputies on 12 March initiated discussions in the parliament. At the same time, discussions have just started in the Estonian parliament, where the creation of power-generating capacities is even more crucial due to the planned phase-out of oil shale. Estonian climate minister Kristen Michal stated that there are plans to prepare a nuclear energy law within the next five years pending parliamentary support.

The many risks of nuclear energy and incompatibility with climate crisis challenges

Despite objections from EU-level environmental organisations, the European Union’s Sustainable Finance Taxonomy delegated act on the environment and climate deem investments in nuclear energy as environmentally sustainable economic activities. However, there are various serious arguments as to why this cannot be considered environmentally sustainable and why choosing nuclear energy development in Latvia, as well as in Estonia, would be too risky.

From the point of view of energy system security, having electricity production in many smaller, geographically dispersed stations, rather than in one large complex, provides greater resilience in the event of natural disasters and military or terrorist threats. This is well illustrated by the Ukraine example, where Zaporizhzhia nuclear power plant has been used as a strategic object for Russian occupants, creating ongoing nuclear safety crises, and where the sabotaging of the Kakhovka dam has created a large-scale humanitarian, environmental and economic disaster.

Investing in SMRs would also be a great economic risk at the moment, as the total costs of such projects are not yet known. There is not yet any such station operating for commercial purposes anywhere. SMRs could be even more expensive than conventional nuclear power plants because they are less efficient due to reduced economies of scale, and because of the costs of deploying first-of-a-kind technologies; yet they still have similar challenges, such as safety requirements and the storage of radioactive waste. In the end, this could mean high electricity costs, a burden on society.

Another problematic aspect is the large time scale required for the implementation of nuclear energy projects. For conventional reactors, it is typically 15 to 20 years. In the case of SMRs, the industry claims that this period of time may be shorter, but one should be careful with the information provided by the industry itself, as its main goal is to sell this technology. In its estimates, the Ministry mentioned that the development of SMRs could take 15 years for Latvia, due to the extensive preparatory work that must be done, including the development of a regulatory framework and workforce preparation. However, this too may turn out to be an optimistic assessment.

The main problem with such a long development period is that we already need new renewable power-generating capacity now. If we allocate financial resources to a solution that will only come in 15 to 20 years, we divert investments away from the development of other technologies, which would provide the needed energy much more quickly; for example, wind, solar energy projects, industrial heat pumps, energy storage technologies, the creation of interconnections with other EU regions, and promotion of demand side flexibility. This delay would result in higher electricity prices, which, of course, would not improve Latvia’s competitiveness. However, more importantly, any delay in the transition to renewable resources contributes to global warming, which requires solutions now. Latvia also runs the risk of failing to meet the greenhouse gas emission reduction target, which would result in the need to purchase expensive emission quotas from other EU countries as 2030 approaches.

In addition, creating radioactive waste that must be handled under controlled conditions for up to tens of thousands of years is an excessive, unacceptable burden for future generations, given that we have other technologies available. Radioactive and toxic waste, which is created in large amounts in all stages of nuclear fuel cycle, from mine to reactor, is already creating serious environmental pollution and hazard to public health.

As a small country with limited financial and administrative resources, lengthy nuclear energy development from scratch seems a very daunting path, especially given the fact that Latvia already has a relatively high proportion of renewable energy and has great potential for the further development of this sector.

Bern Convention: Skavica dam in Albania contradicts the Balkan Lynx Recovery Programme

The Skavica dam has already been in the spotlight in Albania and beyond for more than two years. Local communities have been protesting against the planned flooding of 41 villages in the Dibra valley and damage to their livelihoods.

And while the Environmental and Social Impact Assessment of the dam prepared by Bechtel has still not been published, the project has suffered a major blow – the Bern Convention on the Protection of European Wildlife and Natural Habitats has decided to accept a new complaint filed by Earth Law Center – USA & Earth Thrive – UK, on behalf of several Albanian groups: Opposition to Skavica Dam-OSD, Group of Rural Activists of Dibra-GARD, North Green Association, and GLV Integrimi.

The Bureau of the Convention, in its report published this month, was

‘concerned with the plans for developing the Skavica hydropower plant (HPP) on the Black Drin River, which may affect a possible candidate Emerald Network site, numerous protected species from the Convention’s appendices and resolutions, notably the critically endangered Balkan Lynx and its migratory corridors.’

The decision of the Bureau is very important as it gives a clear signal to development finance institutions and commercial banks that the Skavica project is a highly risky investment. The US Development Finance Corporation, UK Export Finance and HSBC have all been mentioned by the Albanian government as possible lenders to finance the ever-rising costs of the dam, though none of them have confirmed this.

Besides all the social impacts, Skavica could lead to the extinction of one of the rarest cats in Europe by completely isolating the last two reproducing population nuclei of the Balkan lynx – in Mavrovo National Park (North Macedonia) and on Munella mountain (Albania). The dam would be located on the only corridor that links the two population nuclei.

Interestingly, as the Bureau underlines,

‘Albania had been one of main proponents for listing the Balkan Lynx as a strictly protected species in the Convention on Migratory Species appendices, and yet this project clearly seemed to contradict this good initiative, and the work of the Balkan Lynx Recovery Programme.’

The aim of the programme is to restore a viable population of the Balkan lynx by reducing its main threats: illegal killing of lynx and prey species, habitat loss and fragmentation, unsustainable hunting and forestry systems.

With fewer than 30 Balkan lynx remaining in the wild, any further isolation of the populations would lead to inbreeding, reduced genetic diversity and higher risks from illegal killing and the construction of the dam would lead to habitat loss.

Skavica dam location, expected flooding with two different dam heights and the most important corridor for the Balkan lynx. Source: Balkan Lynx Recovery Programme

Last but not least, the Bureau accepts that the Black Drin river should be protected in the Emerald Network, the network of Areas of Special Conservation Interest launched by the Council of Europe in 1989 to ensure the long-term survival of species and habitats of European importance.

The upper Black Drin, the last remaining free-flowing part of the Drin, was proposed by scientists and NGOs as one of the 88 priority river stretches to be included in the Emerald Network in Western Balkans. The list of rivers results from the Emerald Green seminar organised by CEE Bankwatch Network in December 2022, where participants provided scientific data on fish species and habitats.

The Bern Convention’s preliminary findings come as yet another confirmation that Albania should stop focusing on the Skavica plant. Instead, it should protect the upper Black Drin and concentrate on reversing its over-dependence on climate-vulnerable hydropower. Carefully-sited solar and wind, together with increased use of heat pumps and solar thermal for heating, can help the country diversify without resorting to the use of fossil fuels for power and heat generation.

Art as a balm in the just transition: Inspiration from Poland and Romania

In January 2024, CEE Bankwatch Network hosted an event called ‘Planet Konin’ in the city of Konin in Eastern Wielkopolska. The aim of the event was to bring together stakeholders from Jiu Valley and Eastern Wielkopolska, and to provide them with a platform for sharing experiences and approaches to bringing about a just transition.

The first part of the event focused on discussing the challenges of implementing the Just Transition Fund. Representatives from Petroșani mayor’s office, Konin’s Regional Development Agency, and Bankwatch highlighted potential solutions that can be implemented locally. For instance, Romania’s territorial just transition plan allocation for small and medium-sized enterprises was identified as a progressive strategy for supporting regional economic growth. There were also presentations by local authorities, regional businesses, science institutions, trade unions and non-governmental organisations. Common topics were the huge potential of the Just Transition Fund to meet local needs and the essential role of dialogue between authorities and other stakeholders.

The second part of the event focused on the important role of art in shaping local identities during the complex process of just transition. It kicked off with a screening of Planet Petrila, a documentary that tells the story of an ex-miner-turned-artist who uses his work to prevent the local authorities from demolishing the infrastructure at the recently closed mine in his hometown of Petrila in the Jiu Valley. As a result of his efforts, a non-governmental organisation bearing the same name succeeded in saving the mine. Uniting both strands of the story, the artist and star of the film, Ion Barbu, and urbanist and activist, Mihai Danciu, were both present. They shared their experiences of using art and activism to bridge the gap for local people as they adjust to a new reality. Ion and Mihai, along with their colleagues, have organised a number of events including plays, concerts, art exhibitions and a permanent museum dedicated to the miners that have the role of saving the others during accidents.

The documentary served as a springboard for the second part of the discussion, which focused on exploring how local non-governmental organisations can make a difference in the just transition. In addition to Ion, who spoke at greater length about his work in Petrila, representatives from several local Polish non-governmental organisations also took the floor. Grzegorz Przebieracz, a foreman and member of the Engineering and Coal Mining Technicians Society, explained the efforts he and his colleagues took to save ‘Dolores’, an enormous lignite extraction machine with special meaning for Konin residents.

The salvation of Dolores is a symbolic victory for local activists in Konin, who see it as an opportunity to preserve and promote the heritage of the region. They even invited Ion to help them with ideas for harnessing the cultural significance of the machine to drive tourism in the region. Adam Jaroński, a photographer who has taken many a picture of Dolores, captures the beauty and legacy of the coal mining tradition in Konin. Dolores is the lead actress in his documentary, which showcases the legacy of mining in Eastern Wielkopolska. The work of Konin Dance Theatre, another important organisation in the cultural landscape of Konin, is also strongly rooted in the regional history and cultural landscape of the town. The dance group’s leader Katarzyna Łapaj-Strzykowska announced their new programme entitled ‘A Very Personal Identity’, which showcases the unique perspectives of dancers on the just transition.

The event closed with a debate between Bankwatch’s Miłka Stępień and Adina Vintan and Mihai Danciu of the Jiu Valley Association (Valea Jiului Implicata). The discussion revealed the enormous positive effects coalitions such as the Jiu Valley Association can have on their local environments and on strengthening local civil society. Inspired by their Romanian counterparts, local organisations in Eastern Wielkopolska have already begun exploring opportunities for establishing a similar coalition.

The importance of cultural identity and art in smoothing what can often be a traumatic transition for local communities is often overlooked. As the people of Jiu Valley and Eastern Wielkopolska have shown, a truly just transition is about creating an atmosphere of hope and trust in a process that leaves no-one behind.

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