Blog entry

Jiříkov’s path to a clean energy future

One such place is the historically industrial town of Jiříkov in the Ústí nad Labem region of the Czech Republic, which is now experiencing a significant outflow of its young population. The LIFE RePower the Regions: Ambitious and inclusive clean energy plans for repowering the just transition regions project provides an opportunity to support regional development and the transition of the energy sector to cleaner and more sustainable sources. The European vision for energy transformation is thus being realised on the ground and is being made tangible by involving specific communities and individuals.

Thanks to its cooperation with the Centre for Transport and Energy and its participation in the LIFE project, the municipality had a great opportunity to develop a technical solution in selected areas of decarbonisation. The municipality, represented by the Mayor of Jiříkov, Jindřich Jurajda, chose the feasibility study for the construction of a district heating system powered by clean energy sources that would supply heat to a number of selected municipal buildings. The study was conducted by the University Centre for Energy Efficient Buildings at the Czech Technical University. According to Jurajda, decarbonisation is a priority that will receive increasing support from both the state and the European Union. ‘We can’t just wait for someone else to come up with a solution and implement it,’ he says, explaining why he was one of the first Czech mayors to develop a specific plan for decarbonising municipal heating.

The analysis includes a proposal for a functional district heating system for selected buildings owned by the municipality that will reduce harmful emissions and increase energy efficiency in building operations. The result is a detailed assessment of existing technologies and their advantages and disadvantages. The sustainability of some of the options, which rely on biomass or bio LNG cogeneration units, depends on using locally sourced feedstock derived solely from residues. Among the proposed alternatives is also one that involves the construction of a fossil gas CHP unit that would support a ground/water heat pump. While this would partially help to reduce emissions, relying on fossil gas is an unsustainable strategy in the long term. The cleanest option proposed is a heating system using a ground/water heat pump.

It is now up to Jiříkov to choose a specific option and find funding for its implementation. Whichever proposed path it takes, it will be a step forward in a country lacking any systemic decarbonisation plan at the national level. If implemented, the project would not only help Jiříkov to reduce emissions, but also to become more energy self-sufficient and to save part of the municipal budget, which could then be invested in areas of need.

‘The funds saved can be directed to other areas of the town’s economy – to name the classic clichés, this could be building pavements, repairing roads, renovating other buildings, insulating windows, repairing roofs…’ says Jurajda.

‘The LIFE project is an effort by the European Union to provide a unique opportunity for the just transition regions to gain firsthand experience in decarbonisation on a small scale. Thus, they can contribute to reducing emissions while reaping co-benefits such as increasing the energy efficiency of buildings, saving public money that can be used elsewhere, and becoming more self-sufficient. All of this is done in cooperation with experts who analyse existing options specifically suited to Jiříkov’s particular conditions. Municipalities can then use this information to decide on a tailor-made solution and to assess how a more sustainable alternative will benefit them,’ explains Zuzana Vondrová, a just transition expert from the Centre for Transport and Energy.

Jiříkov is one of a select few European cities which the project is helping to develop a comprehensive energy savings plan, providing a detailed roadmap for building heating and cooling solutions based on local energy sources. By involving cities and municipalities from coal regions in other countries, such as Latvia, Estonia, Slovakia, Poland, Hungary and Bulgaria, it also allows city representatives to share valuable experience in finding ways to use local, low-emission energy resources.

Ringing the bell for gender equality and diversity: European public banks must do more for women’s rights and economic empowerment

At the annual EIB Forum in Luxembourg this week, Nadia Calvino, president of the European Investment Bank (EIB), called for a renewed determination to ‘shape a future where gender equality is not just an ambition, but a reality’. Two forum sessions dedicated to gender delivered the following resounding message to capital markets and EIB partners:

Women’s economic inclusion and diversity are not just a matter of fairness but an economic imperative.

These signals are particularly timely given Brussels’ looming deregulation agenda and conservative political elites framing misogynistic rhetoric and hate speech as freedom of expression. Amid major shifts in the global political order, economic alliances, and normative values, gender action is likely to be caught in the crossfire between old and new priorities as they compete for EU spending and international development finance.

This is why President Calvino’s leadership at the EIB Forum is so significant. Her message that inclusion is not just the right thing to do, but also the smart choice presents a strong business case for gender equality and its role in building peace, stability and shared prosperity.

Easier said than done

EIB President Nadia Calvino at the EIB Forum 2025

UN Women have identified public development banks as key drivers of gender equality. Indeed, many international financial institutions have committed to promoting economic inclusion and women’s empowerment as core business objectives.

For example, economic inclusion is set to become one of the three pillars of the European Bank for Reconstruction and Development’s (EBRD) new Strategic Capital Framework, expected to be approved by the bank’s shareholders at the EBRD annual meeting in May – which will guide EBRD investments over the 2026–2030 period. Additionally, the EBRD’s new safeguards policy includes new commitments and project requirements for promoting diversity and preventing discrimination, gender-based violence, sexual abuse and exploitation. EIB’s environmental and social sustainability framework from 2021 sets similarly strong standards.

But policies are only as effective as their implementation, and ‘gender-smart’ projects often look much better on paper than they do in reality. For instance, while a recent assessment by the EBRD’s independent evaluation department found that EBRD investments receive a gender-smart tag for setting ambitious gender goals and introducing relevant activities at the project approval stage, the evaluation also concluded that gender promises are not always upheld during project implementation.

Part of the problem is the lack of ongoing support and monitoring by bank teams, resulting in patchy implementation. Notably, the EBRD’s dedicated and highly committed gender and inclusion team does not have enough capacity to support all tagged projects. That’s why public development banks must back up their commitments with real action. To successfully implement gender objectives, projects require sufficient dedicated resources to make a tangible difference when it comes to equality, diversity, and the protection of women’s rights.

The common practice of blending loans with technical assistance grants from donors is an effective way of strengthening the capacity of borrowers to achieve these objectives. In their capacity as bank shareholders, donors should also provide additional resources and establish adequate mechanisms to ensure grants are strategically targeted and effectively disbursed, creating an enabling environment for gender-smart projects.

Policy dialogue at country and sectoral levels, as well as greater transparency and stakeholder engagement are part and parcel of that enabling environment. Public banks often support policy and planning processes at national and local levels through trade facilitation, tourism development, digitalisation of rural areas, the just transition of mining regions, sustainable urban mobility, and climate adaptation in the water sector.

But these plans must go beyond simply incorporating gender considerations – they must also be transparent and participatory, designed for women and with women. This means not just initiatives led by ‘women in business’ or for ‘women entrepreneurs’, but inclusive efforts that directly involve women impacted by intersectional vulnerability and discrimination. Only then can gender programmes and products truly reach and empower those who need them most.

Not all strategies are made equal

Civil society scoring of the environmental and social frameworks of 12 public banks ranked the EBRD’s and EIB’s policies as the strongest. Looking more closely, however, the EIB’s 2016 gender strategy is outdated and lags behind those of its peers, such as the EBRD. While the EIB published its first Gender Action Plan for 2018–2019, the second plan for 2021–2024 has not been published. Bankwatch requested access to the second plan but received only a heavily redacted version of the document. While the EIB prepares its own evaluation of the implementation of its strategy and action plans, civil society scoring has already highlighted key areas where the EIB’s gender strategy could improve.

# Adapted from an original table on page 9 of Gender Action’s report on rhetorical gender and climate promises made by international financial institutions.
* SGMs – sexual and gender minorities
** SGBV – sexual gender-based violence
*** SEAH – sexual exploitation, abuse and harassment

Acceleration based on impact strategy and ambitious targets

To turn President Calvino’s call at the EIB Forum into concrete action, the EIB and its shareholders must update the bank’s gender impact strategy and set more ambitious goals for gender equality and women’s economic empowerment.

First, the EIB’s new gender strategy should widen its scope and aim for at least 50 per cent of the EIB’s portfolio to include gender-smart objectives and activities. President Calvino stated at the EIB Forum yesterday that to accelerate action, a target of at least 40 per cent is needed. Moreover, rising to this challenge will require dedicated resources, internal capacity-building, and a system of incentives, as well as operational tools to support borrowers and enhance policy dialogue. For example, the Joint Assistance to Support Projects in European Regions (JASPERS) partnership, funded by the EIB and the European Commission, can play a key role in this process.

Second, the EU’s house-bank strategy must incorporate much wider and more detailed gender equality and diversity objectives, aligning them with the high standards of its environmental and social framework. This should include, for example, objectives for assessing gender gaps, preventing discrimination, and addressing gender-based violence and harassment among borrowers’ workforces, infrastructure and service users, and communities affected by EIB investments.

Finally, both the EIB and the EBRD must set clear standards, and provide borrowers with guidance notes, on incorporating the principles of economic inclusion and gender equality into projects complicated by conflict, war and crisis. Women’s rights and gender quality must guide the banks’ efforts to make fragile societies more resilient, ensuring the protection of vulnerable groups and unlocking the potential of women’s economic empowerment.

What’s holding back community energy in Estonia’s just transition region?

So what’s holding back progress? Is it a lack of awareness, mistrust or overly complex legislative processes? These questions formed the basis of a 2024 study conducted by Tallinn University of Technology, commissioned by the Estonian Green Movement as part of the LIFE RePower the Regions project, to explore the feasibility of community energy in Ida-Viru.

Challenges in the region

The study revealed a key challenge – many people struggle to see the benefits of cooperative energy production. Why join forces in a cooperative when individual energy production seems just as feasible? This attitude is largely due to the lack of positive local examples. Despite years of discussion about community energy in Estonia, success stories have mostly come from abroad, making them feel disconnected from the local reality. Participants in the study also noted that media coverage tends to focus more on obstacles rather than progress, reinforcing the perception that community energy remains a distant, theoretical concept rather than a viable opportunity.

The study also highlights a major hurdle – the conflict between renewable energy development and national defence regulations. In Ida–Viru, solar energy projects of up to 50 kilowatts face fewer restrictions and can be installed throughout the region. However, larger solar parks exceeding this capacity are evaluated on a case-by-case basis, adding uncertainty to their potential development. Wind energy faces even more severe restrictions. East of the Jõhvi–Iisaku line, wind turbines are completely banned due to their impact on national defence installations, further limiting the region’s renewable energy potential.

There are also infrastructure challenges. The existing electricity grid was not designed with small-scale energy production in mind, which means that connecting to the grid often requires reinforcement and significant investment. This is an issue not only for developers but also for grid operators, who must find ways to make connections more cost-effective and accessible.

There is also a lack of experts and leaders who can bring communities together and implement projects. As the region lacks a comprehensive plan and nationwide cooperation for establishing energy communities, progress has largely depended on enthusiasts and proactive local governments. In this respect, the municipalities of Alutaguse and Lüganuse have taken the first steps towards renewable energy. The Association of Local Authorities in Ida–Viru, who are also aware of the issue, are considering participating in energy community projects, but there are no concrete success stories yet for others to follow.

In addition to these obstacles, the more challenging economic situation facing residents in the region and the lack of trust within the community are holding back the development of cooperative energy production.

Opportunities

Despite these challenges, the study highlights several unique advantages that position Ida-Viru as a potential flagship for community energy development. The county has a large amount of suitable land, including former industrial and oil shale mining sites, on which renewable energy production facilities can be built. In addition, the region has extensive historical expertise in the energy sector due to its long connection with oil shale energy. Not only that, the county is already home to established gardening and housing cooperatives that are essentially ready to function as energy cooperatives. With the right guidance and awareness, they could soon begin generating their own electricity.

So why is cooperation within energy communities preferable to the individual approach? For a start, cooperative energy production allows costs and risks to be shared, storage solutions to be used more efficiently, and provides greater energy independence. For example, a community solar park with a shared storage system reduces the volatility of electricity prices and allows cheaper energy to be used when the sun isn’t shining – something that would be much more expensive and complex for individuals to manage on their own. In addition to the economic and environmental benefits, energy communities can provide social, health and educational benefits, such as strengthening community ties, raising awareness about energy use and production, and improving health by reducing air pollution, leading to fewer respiratory issues and other health problems.

In countries where community energy production has been successfully introduced, targeted national and regional measures have been crucial in supporting its development for example in Poland, where various EU funds, including REPowerEU, support the development of energy communities. In Estonia, although the region’s transition to renewable energy is seen as necessary and inevitable, it has yet to be prioritised and there are no specific measures in place to promote this shift, according to the study participants.

For the sector to truly develop in Estonia, it is essential to raise awareness, simplify regulations, and offer more funding to communities. Especially in rural areas, community-based renewable energy projects could improve the well-being of residents, increase energy security, and promote economic stability. Estonia should seize this golden opportunity to follow examples where community energy has helped to build stronger and more independent communities. The transition to renewable energy is not just necessary in theory – now it’s time to put it into practice!

Romania: Key Black Sea gas pipeline goes on trial

On Monday 24 February, campaigners from the environmental non-governmental organisation Bankwatch Romania, a Bankwatch member group, filed a lawsuit against Romania’s energy ministry and Transgaz, the national gas grid operator, over significant irregularities in issuing permits for the construction of the Tuzla–Podișor gas pipeline.

The 308-kilometre pipeline – meant to connect the planned Neptun Deep offshore gas drilling project in the Black Sea with Romania’s grid – is currently being built with a deficient environmental permit and without a valid construction permit.

The original construction permit, issued in 2018, expired in 2021. Romania’s energy ministry had failed to renew the permit in due time and Transgaz commenced works on the pipeline in 2023 without a valid permit, the lawsuit argues.

There is also an insufficiently evaluated risk that the project could take a heavy toll on biodiversity. The environmental impact assessment only evaluated the expected influence of the project on eight protected areas the pipeline would cut through. Yet, despite a legal requirement, it omitted five other protected areas located right next to the pipeline route.

In addition, the Romanian environmental authorities failed to conduct a transboundary environmental impact assessment, as legally required by the Espoo Convention and EU rules, despite the pipeline route coming within 10 kilometres of the Bulgarian border and undercrossing the Danube River.

The environmental impact assessment that Transgaz did produce for the Tuzla–Podișor pipeline does not include a proper assessment of the climate impact of its infrastructure. On the heels of the hottest year on record, the failure to account for the greenhouse gas emissions this pipeline is expected to generate is a glaring omission.

Starting in 2027, the pipeline is expected to ship an annual 8 billion cubic metres of fossil gas from the Black Sea coast to the BRUA gas pipeline, connecting Bulgaria, Romania, Hungary and Austria. A yet undisclosed share of this gas is expected to power the Oltenia and Mintia power plants, and Transgaz expects Romania’s fossil gas consumption to double from 2027, supported in part by the pipeline.

While there is no publicly available information about where all this gas will wind up, Romania’s ongoing discussions with Hungary, its recent deal with Germany’s Uniper, and a memorandum of understanding signed with Serbia on a BRUA-linked gas interconnector indicate that some of it is intended for export.

The bottom line, though, is that the Tuzla–Podișor pipeline project is fundamentally at odds with Europe’s energy transition. The planned Neptun Deep project, which the pipeline is meant to serve, is run by OMV Petrom and Romania’s state-owned Romgaz. They claim that it could produce about 100 billion cubic metres of fossil gas over 20 years – right when Europe needs to slash its gas demand.

If these plans materialise, Neptun Deep and its associated pipeline infrastructure would be responsible for between 209 and 227 million tonnes of carbon dioxide equivalent, primarily from gas combustion, according to a 2024 report commissioned by Greenpeace Romania.

Alarmingly, the Tuzla–Podișor pipeline has received millions in EU funding. The project costs EUR 500 million, already around 35 per cent more than estimated seven years ago. And even though EU leaders have repeatedly vowed to phase out fossil-fuel subsidies, this gas project still received EUR 85 million from the Modernisation Fund in 2023, a key financial instrument designed to accelerate the shift away from fossil energy in Europe’s lower-income Member States. It also secured EUR 150 million from the European Investment Bank back in 2018.

Notably, this is not the first time the Modernisation Fund has been leveraged to support fossil gas projects, effectively subverting Europe’s energy transition. In Romania alone, a range of gas infrastructure projects were enabled by the Fund between 2021 and 2023, according to a Bankwatch analysis released last year. As of late 2024, the Fund has already channelled at least EUR 1.45 billion into fossil gas investments.

EU institutions – specifically the European Commission’s Directorate-General for Climate Action and the European Investment Bank – must avoid directing EU money to harmful projects. For this to be achieved, they must first ensure that prospective projects are subject to rigorous assessment in compliance with EU climate targets and the Paris Agreement. Meaningful due diligence is also required to bring them into alignment with these goals and all other applicable EU and national legal requirements. Had such scrutiny been applied to the Tuzla-Podișor pipeline, the project would never have seen the light of day.

Guidelines for selecting just transition projects in Ukraine

However, early alignment with the EU’s just transition legislation is essential for avoiding costly and time-consuming revisions in the future. Therefore, these principles and criteria should be embedded in Ukraine’s national and local just transition planning from the outset.

Ukraine’s 2030 national energy and climate plan and 2050 energy strategy have set 2035 as the target year for phasing out coal-fired power generation. On the path towards EU membership, Ukraine has also adopted the EU’s goal of climate neutrality by 2050.

Achieving this transition requires a comprehensive set of measures and policies. To this end, regulatory documents should comply with EU standards and directives to ensure consistency with EU Member States. This alignment will prevent the need for revisions and readoptions of relevant documents at a later date, streamlining Ukraine’s European integration over the coming years.

As part of these efforts, the Ukrainian government is currently developing a national programme to support the just transition of the country’s coal regions. Coal communities are also developing, or intend to develop, their own just transition measures for inclusion in relevant just transition and recovery plans. But to align with EU priorities, just transition projects and measures under these plans must abide by the principles and criteria already established for EU Member States.

In October 2023, Bankwatch published a guide to help local authorities fairly and objectively select from a wide range of projects aimed at achieving a sustainable energy transition. The guidelines aim to raise regional ambitions for decarbonising the energy sector and ensure funds are allocated in line with just transition objectives.

Here, we expand on the original guidelines by incorporating several key points relevant to Ukraine’s unique circumstances:

Ukraine is not yet an EU Member State and is therefore not subject to just transition planning requirements or eligible for funding under the Just Transition Mechanism. However, Ukrainian coal regions can develop plans equivalent to the territorial just transition plans required of EU Member States, design just transition projects, and seek funding from various sources. With Ukraine planning to phase out coal-fired power generation by 2035 and join the EU in the coming years, early preparation is essential.

The experience of EU Member States shows that a just transition cannot rely on a single funding source.

Ukraine must develop its own mechanisms to finance the just transition of coal and carbon-intensive regions.

These mechanisms should leverage financing from multiple sources, including EU funds. Therefore, the next Multiannual Financial Framework must include provisions for just transition funding in accession countries like Ukraine.

The Just Transition Mechanism is part of the European Green Deal, where environmental solutions play a key role. As a future EU member and a nation already impacted by EU policies, Ukraine has a vested interest in implementing European Green Deal provisions, particularly those supporting the just transition of coal regions. The Mechanism aims to mitigate the social, economic and environmental impacts of decarbonising carbon-intensive industries.

With much of Ukraine’s industrial infrastructure already damaged by Russian attacks, the need for a just transition framework is more urgent than ever for coal regions planning their recovery and reconstruction.

With these specific considerations in mind, it is essential that projects developed by representatives of Ukraine’s coal regions, as part of their recovery and just transition plans, align with decarbonisation criteria, particularly those recommended for EU Member States.

CEE Bankwatch Networks guides to selecting Just Transition Projects – in English and Ukrainian.

Hungary’s fracking shame: Green groups challenge expansion of controversial Corvinus project

Ever since the Hungarian government began promoting the Corvinus fracking project in southeastern Hungary, Friends of the Earth Hungary, Bankwatch and other environmental groups have sounded the alarm over this disastrous fossil energy project. Now, Corvinus Energy – a joint venture between state-owned MVM CEEnergy and US-based Horizon General contractors – is set to dramatically increase shale gas production.

Environmental concerns prompt legal action

In early January 2025, after the authorities approved a massive expansion of the shale-gas operation in Békés county, Friends of the Earth Hungary filed an administrative appeal with Hungary’s energy ministry.

Fracking, a method used to extract fossil gas or oil from shale, is notorious for its adverse environmental impacts. In recent years, at least 12 EU countries have restricted shale gas extraction by winding down operations, imposing moratoria, or outright banning the practice. Currently, Corvinus is understood to be the only active fracking project in the EU.

Fracking presented as a false solution

The Corvinus fracking under the guise of an energy emergency measure, with extraction commencing in February 2023. Yet, civil society groups have long warned that the intervention would likely aggravate water stress in the already drought-stricken region and undermine Hungary’s shift from fossil-fuel dependence to a sustainable economy based on renewable energy.

Indeed, initial measurements have already shown that shale gas extraction operations in Békés have worsened air pollution and led to significant emissions of the potent greenhouse gas methane through In fact, in 2023 alone, a quarter of the extracted gas – 18 million cubic metres – was wasted through flaring, a practice that breaches the EU’s methane regulation.

Water scarcity is already affecting local agriculture. Last year, precipitation loss in the county ranged between 150 and 200 millimetres, missing around 25 per cent of the annual average, with maize and sunflower growers reporting major yield losses. Increasing shale gas production would put an enormous strain on dwindling water resources, further impacting farmers in the region.

Government plans further expansion

Despite these concerns, the county authorities have greenlit a major expansion of the fracking project. During its first year and a half in operation, Corvinus produced merely 100 million cubic metres of fossil gas. Now, Corvinus Energy is seeking to extract 2 million cubic metres of gas and 1,800 tonnes of oil per day, along with a fourfold increase in the capacity of the Sarkad–Nyékpuszta gas processing facility .

And the government is on board. In December 2024, the county authorities granted a permit for the massive expansion, but without conducting a proper environmental impact assessment. Instead of accounting for the full range of impacts from drilling several dozen new wells at a depth of between four and five kilometres and ramping up fracking operations, the assessment primarily focused on the expansion of the gas facility.

Flawed environmental impact assessment

Worse still, the assessment was carried out a year and a half after fracking on the site had already begun. The document contains no mention of the project’s total water consumption or its expected total carbon dioxide and methane emissions. Additionally, the assessment neglected to consider the transboundary effects of the project, located a mere 13 kilometres from the Romanian border.

Crucial information on this reckless project, fast-tracked only because of the project’s ‘national economic priority’ status, have yet to be disclosed. Currently, there is no publicly available information concerning the timeline for the expansion, the exact number and location of planned shale gas wells, the potentially hazardous chemicals to be used in the fracking process, or the total amount of water to be drawn.

Calling a halt

In an effort to obtain this information, we requested the public mining documents pertaining to the project, but the national mining authority rejected our request without offering any explanations. Subsequently, we petitioned the Metropolitan Court of Budapest, and in late January, the judges ruled in our favour, ordering the authority to provide all relevant documentation concerning the project.

The Hungarian government must halt, not expand, fracking. The first step is for the Deputy State Secretary, who is responsible for handling cases involving the environmental authorities, to revoke the illegitimate authorisation of the Corvinus project’s expansion.

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