Blog entry

Encouraging local input: Łódzkie voivodeship takes a more inclusive approach to just transition planning

An often thankless task

In Poland, many activists carry out their work after hours on top of their daily salaried jobs, and it’s not uncommon for small local grants to serve as the only source of funding for organising events and activities. A major issue, however, is that these funds rarely provide remuneration for the people driving efforts behind the scenes.

The unfortunate reality is that the vast majority of these activists – who continually strive to make positive societal changes and improve the welfare of their communities out of concern for the common good – don’t earn a penny.

That’s why it’s so important for regions supported by the EU’s Just Transition Fund to specifically allocate funds that support the development of community organisations.

Łódź and Silesia show the way

Fortunately, there’s now a growing recognition of how crucial it is to genuinely involve the public in shaping regional development. This is especially evident in regions like Silesia and Łódzkie voivodeship. For instance, the regional government in Łódzkie voivodeship has taken inspiration from a progressive measure adopted in Silesia that places social inclusion at the heart of its shift towards a more sustainable economy. And now the Łódz administration is preparing to roll out a similar programme of its own.

Simply creating space for this kind of initiative is already a meaningful step forward.

In an encouraging move, officials in Łódz have already started reaching out to potential participants well ahead of the programme’s anticipated launch in October 2025. In March, they presented their initial ideas during a conference in Bełchatów, the centre of just transition process in Łódzkie voivodeship, focused on empowering local communities in post-mining regions as they transition to a green economy.

Community and collaboration

The programme will mainly support small, local organisations in Łódz’s post-coal regions eligible for funding from the Just Transition Fund, with a particular focus on groups that work on a non-profit basis. The range of activities that can receive funding is broad, with priority naturally given to projects linked to the energy transition, ecology and social inclusion.

The programme will also promote initiatives aimed at building a strong sense of local identity, particularly those focused on regional history and heritage. The types of activities encouraged include workshops, conferences, study visits, information campaigns, counselling services, and a wide range of cultural education projects.

A key feature of the programme is its emphasis on partnerships between various stakeholders, including non-governmental organisations, local authorities and small businesses. However, one issue that’s provoked much debate is the programme’s requirement for a 5 per cent ‘own contribution’, which is likely to prove problematic for non-governmental organisations that generate no income.

In response, the Łódź municipality – the managing authority for the distribution of EU funds in the region – has proposed establishing a dedicated fund to cover the contribution, which would provide applicants with direct financial support for their chosen projects.

Bridging the urban–rural divide

While Polish cities tend to be home to more traditional non-governmental organisations, in rural areas of the country, it’s often groups like rural housewives’ associations that play a central role in social life. To reflect these differences, efforts have been made to expand the range of eligible applicants to include all types of grassroots organisations, as well as their potential partners, such as local media outlets.

Indeed, there has been strong opposition to the idea of allowing large-scale national non-governmental organisations to participate in the programme, since smaller local groups typically lack the experience and resources to compete with larger organisations in writing applications and raising funds, putting them at a disadvantage from the very start.

Cause for hope?

From the perspective of the members of the monitoring committees tasked with overseeing the fair distribution of EU funds, this move to recognise the diversity of the non-profit space is an unusual but welcome development.

Typically, these committees are given a set of predefined criteria with limited scope to change anything other than minor details. Additionally, the managing authorities often come under pressure to quickly allocate funds, which means they tend to resist any input that might slow things down.

In Łódź, however, something refreshingly different has happened. The regional government has opened up the basic outline of the programme for public consultation long before any concrete decisions have been made. And there’s also an understanding that the finer details will still be worked out and reviewed in collaboration with local organisations.

The final shape of the programme is still to be ironed out, and the initial ideas may not be perfect – but they offer real promise. More importantly, the consultation process led by the officials in Łódź stands out as a model of good practice worth celebrating. At a time when meaningful public involvement in EU funding decisions is still too rare in Poland, this approach needs to be recognised and replicated.

Karaganda, Kazakhstan: Why are public concerns about a risky wastewater project being ignored?

Project capacity under scrutiny

The Karaganda wastewater treatment plant modernisation project – a EUR 100 million initiative backed by the Kazakh government – is set to be approved by the EBRD’s Board of Directors on 7 May 2025. The project involves the construction of a new wastewater treatment plant, the modernisation of the existing sewage pumping station, and the installation of sludge treatment facilities. However, the planned capacity of the plant has become a focal point of criticism.

The project’s environmental impact assessment specifies a maximum daily treatment capacity of 130,000 cubic metres, which local activists claim is insufficient. For context, the city’s existing sewage treatment plant has a daily capacity of 232,000 cubic metres. Municipal water utility Karagandy Su, the EBRD client on the project, claims that the actual daily wastewater throughput ranges from 70,000 to 160,000 cubic metres depending on the season, peaking at 190,000 cubic metres during the spring flooding period.

According to the city’s 2007 master plan, the daily wastewater inflow in 2005 was 202,360 cubic metres at a time when the city’s population stood at 446,000. Today, the population stands at 525,300 and, based on the 2025 strategic environmental assessment report for the soon-to-be revised master plan until 2040, is projected to reach 570,000 by 2030 and 650,000 by 2040. Much of this growth, driven by extensive residential development, is expected to occur in the southeastern parts of the city – the same districts the new facility is expected to serve.

Locals also warn that the capacity estimates fail to account for significant water losses caused by severe degradation of the sewerage system, which requires extensive rehabilitation. In 2023 alone, Karagandy Su reported 19,580 clogs in the sewerage network, with 84 per cent of the system in a state of deterioration. Residents routinely report sewage leaks both within and outside the city.

Emergency services attend a collapsed sewer in Karaganda in 2024 (photo: Pavel Podvigin).

Violations of public hearings laws

Citizens first voiced their concerns in January 2024 during public hearings on the project’s environmental impact assessment. According to project monitors, fewer than 10 of the 72 questions submitted by the public were marked as ‘withdrawn’ in the official hearings protocol, with more than half of the questions designated as unresolved or given an ambiguous response.

This, according to the Centre for the Introduction of New Environmentally Safe Technologies (CINEST), a local public organisation monitoring the project, is a direct violation of Kazakhstan’s legislation on conducting public hearings. This law states that in cases where comments and proposals submitted by interested state bodies or the public are marked as ‘not withdrawn’ in the public hearings protocol, the project proposer must revise the draft report accordingly.

Despite having flagged these violations with the Committee for Environmental Regulation and Control and other departments within the Ministry of Environment and Natural Resources, local monitors have yet to receive a clear response as to why their legitimate concerns have not been addressed.

Nor has the project been revised in line with public input. In accordance with legal requirements, all clarifications requested by residents should be reflected in the environmental impact assessment. As things stand, given concerns about the reliability of the data provided in the existing assessment, the proposed capacity may not be sufficient to meet the city’s current and future needs, potentially posing severe environmental risks.

High-risk project design

As the EBRD board prepares to approve the project, Karaganda is bracing itself for its annual spring flooding season. Residents remain concerned about the risks posed by poorly managed rain and flood waters, especially during peak periods, which could directly affect the new wastewater treatment plant. Currently, the city has no functioning stormwater drainage system in place, which means that all storm and rainwater either flows directly into sewage wet wells or funnels into local water reservoirs.

CINEST representatives communicated their concerns during a joint meeting between Bankwatch and the EBRD’s project team in October 2024. They were informed that stormwater management fell outside the scope of the project and was not the responsibility of the project implementer, but rather of the city administration, which would need to secure funding to resolve the issue separately.

In December 2024, the EBRD published its public consultation report on the project. It recommended that excess floodwater be managed through the use of emergency basins but provided no details on their proposed capacity. The report also noted amendments to the environmental impact assessment, including information on the city’s plans to develop a separate, closed stormwater drainage system.

However, activists point out that the master plan, published some two decades ago, also contains plans for a stormwater drainage system that never came to fruition, with little progress beyond occasional emergency repairs of burst pipes and leaks. Repeated requests by activists for access to the amended environmental impact assessment and the project feasibility studies – funded through a EUR 1 million technical cooperation grant from the EBRD – have gone unanswered.

Pressure mounts on the EBRD

The EBRD project team maintains that the current design offers the best available technical solution for handling Karaganda’s stated wastewater volumes and points to the city’s plans to upgrade the remaining outdated infrastructure. However, monitors have found no concrete evidence of coordinated local schemes to modernise associated infrastructure critical to the project’s success.

With Karaganda’s population on the rise, existing treatment capacity will soon prove insufficient, requiring either a substantial upgrade or the construction of a second facility. Yet without a comprehensive municipal plan to integrate long-term wastewater treatment requirements, repair existing dilapidated sewerage channels, and establish a functioning stormwater drainage system, the new treatment plant is likely to become a wasted investment.

More alarmingly, the continued disregard for public concerns in the decision-making process undermines community trust in development funding, particularly for high-risk projects such as this. Activists insist the design must be amended to include greater treatment capacity or, at the very least, condition a coherent city plan for modernising stormwater infrastructure and complementary treatment facilities. Failure to do so risks hazardous overflows, with potentially grave environmental consequences for Karaganda residents.

Pedalling forward in Daugavpils: Towards a cyclist-friendly city

Daugavpils City Municipality, in collaboration with Latvian environmental organisation Green Liberty and Riga Technical University, presented their recent study examining the state of cycling in the city. It outlines the infrastructure challenges facing the city, identifies areas where improvements are needed, and proposes actions for promoting cycling among the residents of Latvia’s second-largest city.

Expert insights and recommendations

Riga Technical University researcher Antra Viļuma emphasised the many benefits of urban cycling: improved public health, less air pollution, a more liveable urban environment, and a reduced climate footprint. As well as showcasing positive examples from other cities, Viļuma shared the results of surveys conducted among Daugavpils residents along with the findings of an on-site urban assessment.

She called for a gradual but consistent approach to developing cycling infrastructure, recommending that cycle paths be incorporated wherever possible as part of regular street construction works. While fragmented, this strategy, she argues, represents the most practical way forward in the absence of funding for large-scale, high-cost projects.

She also highlighted the need for the municipality to establish a dedicated cycling coordinator, which would signal a commitment to increasing capacity and ensuring cycling-related initiatives are advanced as Daugavpils works towards becoming a more cyclist-friendly city.

Tools for better decision-making

Rūdolfs Golubovs, chairman of the City for People association, illustrated how other cities have upgraded their cycling infrastructure through relatively modest investments. He underscored the importance of volunteer involvement, and shared a number of useful methods for effectively conducting bicycle traffic counts to support more effective infrastructure development.

One notable tool is the Strava app, which offers insights on cyclists’ habits by aggregating user data on routes and their intensity. This zero-cost platform could serve as an invaluable data resource for planners, helping them analyse traffic flows and identify priority areas for development. Golubovs also presented visual examples of how simple improvements in infrastructure or traffic planning could be rolled out in specific locations in Daugavpils.

Local initiative shows the way forward

Viktorija Kozlovska, representing local cycling enthusiasts from Sniegpulkstenīte tourism club, introduced the club’s contribution to the promotion of cycling culture in Daugavpils. She stressed the importance of information and education, calling on the municipality to place more focus on public involvement. The efforts of the club’s members exemplify the vital role that local residents can play in improving their city and local neighbourhoods.

Featuring engaging and constructive discussions on the general principles of cycling infrastructure planning and offering concrete solutions for locations throughout Daugavpils, the event was organised as part of the LIFE-funded project ‘RePower the Regions: Ambitious and inclusive clean energy plans for repowering the just transition regions’.

Unlocking Serbia’s district heating potential: The public energy services company model in focus

The building sector, responsible for nearly 40 per cent of total energy use in the region, presents a major opportunity for savings. However, without modern metering and infrastructure upgrades, inefficiencies will persist, straining public budgets and worsening air pollution, which is responsible for over 35,000 premature deaths annually in the Western Balkans.

Optimising district heating and integrating sustainable renewables

Western Balkan countries must reduce their dependence on fossil fuels to improve public health, protect the environment and meet climate targets. In 2022, the Energy Community’s Ministerial Council adopted an overall goal of reducing greenhouse gas emissions by 60.9 per cent below 1990 levels by 2030 for the Western Balkans, Georgia, Moldova and Ukraine. Yet, 97 per cent of district heating in the region still relies on fossil fuels, with just 3 per cent coming from renewable sources, mostly unsustainable biomass.

This dependency not only drives emissions but also exacerbates severe air pollution, among the worst in Europe. Decarbonising district heating through renewable integration and efficiency improvements is essential for achieving clean air, home comfort, and climate goals. However, progress is slow due to outdated infrastructure, weak regulation enforcement, and financial constraints. Years of underperformance now make large-scale efficiency programmes a necessity, with the public energy services company (ESCO) model a notable example.

How does the ESCO model work?

ESCOs improve energy efficiency without requiring upfront investments from building owners or municipalities. They partner with households, businesses and local governments to upgrade heating systems, improve insulation and install smart metering. ESCOs finance these projects and recover costs through the energy savings achieved.

ESCOs can operate as either private or public entities. Private ESCOs rely on market competition and private financing, focusing on profitable projects with quick returns. Public ESCOs, on the other hand, are government-backed and prioritise long-term sustainability, investing in public infrastructure like schools, hospitals and district heating networks. They often access grants, government funding or concessional loans, making them suitable for projects that lack private-sector appeal.

Energy efficiency in Serbia

Serbia’s district heating systems are undergoing major efficiency improvements. Ageing infrastructure, inefficient energy use, and a lack of modern metering systems have been longstanding issues in the country. To drive energy efficiency improvements, the Ministry of Mining and Energy, with support from international financial institutions like the European Bank for Reconstruction and Development (EBRD), is now pushing forward with a new public ESCO model.

The current initiative targets over 500 buildings (approximately 1 million square metres) across 15 cities, focusing on insulation, heat dividers, and thermostatic valve installations. The structure of the funding is split between the government, which covers 50 per cent of the costs, and citizens, who repay the remaining 50 per cent through monthly heating bills. With a total investment of EUR 64.5 million, comprising a EUR 50 million EBRD loan and EUR 14.5 million in donations, the project aims to achieve 35 per cent energy savings, equivalent to 81,000 megawatt hours annually. This translates to an average cost of EUR 2500 per apartment, with long-term benefits like lower heating costs, increased property values, and a shift to consumption-based billing. However, despite the substantial investment and ambitious goals, there have been no significant achievements to date in realising the projected energy savings or benefits.

Challenges remain

A key question revolves around the definition of a ‘public ECSO’. In Serbia, for example, the term typically refers to existing district heating companies or local public institutions that issue heating bills to consumers. Unfortunately, district heating companies are often limited by a shortage of qualified workers, hampering their ability to complete energy efficiency improvements within tight deadlines. Numerous unresolved issues persist, including addressing systemic losses within the networks and improving the efficiency of protected buildings of architectural or historical significance.

Of particular concern are older high-rise buildings constructed of glass and concrete. In certain cases, making substantial improvements to these energy-intensive structures are likely to prove economically impractical. After all, the public ESCO model depends on achieving tangible energy savings to generate sustainable revenue. Additional shortcomings include insufficient metering infrastructure and a lack of clarity with regard to responsibilities for heat supply, distribution, and delivery.

Montenegro learns from Serbia’s ESCO model

In mid-February, Bankwatch hosted a peer learning visit to Serbia for representatives from the Montenegrin towns of Pljevlja and Žabljak to explore Serbia’s ESCO model for improving district heating energy efficiency. The visit focused on challenges related to financing, regulation and sustainability. Bojan Vemić, energy manager of Žabljak Municipality, and Mervan Avdović, technical director of Grijanje, a district heating company based in Pljevlja, shared their insights on how the model could be adapted to Montenegro’s specific circumstances.

Vemić emphasised the potential of the ESCO concept to be applied successfully in Montenegro, with the country now in the early stages of developing district heating systems, particularly among northern municipalities. He underscored the clear benefits of improving building energy efficiency through district heating such as reduced energy use, lower consumer costs, and significant environmental protection. He also noted that these obstacles could be overcome with ‘sufficient political will’, and that the main challenge lies in securing state interest and commitment to support the process.

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.

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