Blog entry

The World Bank’s role in supporting inclusive and sustainable community-level reconstruction in Ukraine

Ukraine is currently forging a path towards recovery and reconstruction. The national recovery strategy needs priorities, a holistic vision for the country’s development, and provisions that ensure inclusive, bottom-up participation. The World Bank can strengthen Ukraine’s national recovery strategy by increasing its engagement in financing programmes. To do this, the following measures must be implemented:

Ensure proper engagement of public and subnational groups involved in the recovery process. This includes updating the Rapid Damage and Needs Assessment Report, particularly regarding damages and needs for municipalities.

Foster meaningful cooperation and partnership with civil society in local decision-making. This is essential for bringing about effective and inclusive local development.

Translate environmental commitments into applicable measures and plans. These should be incorporated into the Public Investment Management (PIM) financing criteria to support current emergency needs and long-term post-war restoration efforts.

Ukraine’s public investment management in the making

The World Bank not only financially supports Ukraine during its struggle for territorial integrity and democratic values, but also provides technical support in implementing reforms. According to the findings of the World Bank’s diagnostic report on Ukraine’s public finance management system, the implementation of public investment management reform is currently underway.

At the end of 2023, the PIM Roadmap was developed. By 2024, the Action Plan for implementing the Roadmap was approved, and the Strategic Investment Council was established. The Roadmap designates local governments as equal partners in implementing this reform alongside the Ministries of Finance, Economy, and Infrastructure, in addition to various line ministries, the State Agency for Reconstruction and Development, the Accounting Chamber, and the State Audit Service. The Action Plan only includes a few community-related measures, which are recommendatory.

Currently, local governments and civil society representatives are not involved in the Strategic Investment Council. However, Resolution No. 549, passed by the Cabinet of Ministers of Ukraine on 14 May 2024, clearly stipulates that the Council has the right to involve and cooperate with representatives of executive authorities, members of the Ukrainian parliament, local governments, enterprises, institutions, organisations, independent experts, representatives of the public, and the media.

Why is it important to ensure local self-government’s subjectivity in implementing financial investment management reform?

Since 2022, Ukraine has received significantly more international financial assistance to the state budget. At the same time, almost none of this aid goes directly to local budgets. However, municipalities that retain the closest links to the people must deal with crisis issues such as destroyed infrastructure, resettling or evacuating people, providing essential social services, and maintaining critical infrastructure. Meeting these challenges is an additional cost that requires extra financial resources.

Currently, funds from international financial institutions for the reconstruction needs of municipalities are being channelled through intermediaries. For example, the European Investment Bank provides funding through the Ministry of Reconstruction in the form of state-to-local budget subventions, the European Bank for Reconstruction and Development distributes loans through Ukrainian commercial banks, and the World Bank supports the state budget by paying salaries and pensions as well as funding essential services like healthcare and education.

Direct interaction between municipalities and international financial institutions will allow them to respond more quickly to the challenges of war and reduce the time spent on bureaucratic procedures. At the same time, municipalities should also be ready for direct interaction. That means being proactive, capable of preparing high-quality project applications and ensuring sound financial management on the ground.

Where is the World Bank?

The World Bank’s Board of Directors recently approved the Supporting Reconstruction through Smart Fiscal Governance (SURGE) programme. The project will use the Program-for-Results financial instrument, which should significantly improve interactions between national and local stakeholders in the public investment management system. It’s vital to ensure public participation in these processes for greater transparency and fairness in resource allocation.

Bankwatch has proposed ways of improving municipal access to decision-making and financial resources while ensuring meaningful engagement with civil society within the World Bank’s reconstruction financing instruments, particularly the SURGE Program-for-Results instrument. These proposals include the following:

Enhancing local government participation, since local governments lack systematic and sustainable involvement in public investment management reform.

Improving the strategic project selection process, given that a proper methodology for selecting national strategic projects has yet to be developed. Technical assistance is necessary to create this methodology.

Fostering continuous multi-stakeholder dialogue by maintaining ongoing communication between national authorities, local governments, non-governmental organisations, and other stakeholders to ensure community voices are heard in recovery planning and implementation. This can be achieved by adopting principles similar to the European Code of Conduct on Partnership and establishing monitoring committees.

Incorporating sustainability into PIM targets and goals to support climate-smart recovery goals. Relying on the current national environmental legislation alone is inadequate, particularly for implementing EU horizontal environmental legislation, specifically the Environmental Impact Assessment and Strategic Environmental Assessment Directives. Furthermore, initiatives must align with Ukraine Facility earmarking requirements, including the principle of ‘do no significant harm’ and the 20 per cent allocation for climate action.

On 22 October, at the Bankwatch event – The World Bank’s Role in Supporting Recovery in Ukraine – participants examined these critical issues while drawing valuable insights from Georgia’s post-war reconstruction experience, particularly regarding implementing sustainability standards in recovery projects. The event focused on the reform of PIM, emphasising local government and civil society involvement for effective resource allocation. The discussion also covered previous experiences applying international financial institution standards in Ukraine and fast-tracking recovery solutions that may be unsustainable for long-term reconstruction efforts. Participants emphasised the importance of direct collaboration between municipalities, civil society, and international financial institutions for efficient crisis management.

The success of Ukraine’s reconstruction depends on the proper implementation of the PIM reform and the direct involvement of municipalities in decision-making processes. The SURGE programme could help establish transparent project selection and resource allocation mechanisms. However, reconstruction efforts may prove ineffective without the systematic participation of local governments and civil society, anchoring sustainability aspects and transparent methodologies for selecting strategic projects.

Romania’s gas-fuelled climate plan lacks green ambition

The country still plans on significantly expanding gas infrastructure and consumption while relying on the rollout of hydrogen to reduce carbon emissions. And although the revised target for renewables has increased from the 2023 draft, it still falls short of the EU’s legally binding target.

As part of the European Climate Law and the Fit for 55 package, the EU has set targets of achieving at least a 42.5 per cent share of renewable energy from its final energy consumption and a 55 per cent reduction in greenhouse gas emissions by 2030 compared to 1990 levels. Member States are expected to detail in their NECPs exactly how they will meet these new targets.

Romania steps on the gas

Regrettably, Romania’s revised NECP lacks the ambition needed to meet these targets, setting a feeble renewable target of just 38 per cent, well below the EU’s legally binding target of 41 per cent. Meanwhile, the plan calls for an additional 500 megawatts (MW) of gas capacity compared to the draft version, bringing the total projected new gas capacity to at least 3 gigawatts (GW). In reality, however, Romania’s plans are even more extensive, with over 5 GW of gas-based electricity in the pipeline, according to Beyond Fossil Fuels.

Although the country has committed to phasing out coal by 2032, the NECP shows that most of this capacity will be replaced by gas, completely at odds with the agreement made at COP28 to transition away from fossil fuels. In fact, the NECP doesn’t even account for this new gas capacity, as gas consumption in 2030 is still projected to be similar to 2020 levels.

Transgaz, Romania’s national gas operator, forecasts a doubling of consumption to 20 billion cubic metres by 2030 due to new projects, which include expanded gas pipelines, power plants, Black Sea gas extraction, and an LNG terminal. All this new infrastructure threatens to lock Romania into fossil-fuel dependence well beyond 2030, making greenhouse gas emissions increasingly difficult to curb.

Although the NECP doesn’t plan for a complete phase-out of fossil fuels, it does envisage that, starting in 2036, all fossil gas plants will shift to using at least 50 per cent renewable and low-carbon gases, which will supposedly lead to additional renewable capacity and a reduction in emissions. However, achieving this transition remains highly uncertain.

Gambling on hydrogen

This plan is problematic for several reasons. First, it’s highly unlikely that enough renewable hydrogen and biogas will be available by 2036 to satisfy demand, especially if all planned power plants are built. Recent EU-level reports illustrate this point. In February 2024, the European Commission published an impact assessment outlining a recommended 2040 climate target for the EU, assuming total production of just over 3 million tonnes of hydrogen by the end of the decade, far below the EU’s hydrogen strategy and REPowerEU target of 10 million tonnes. Similarly, a July 2024 report by the European Court of Auditors raised doubts about the EU’s hydrogen production and import targets for 2030, finding them unrealistic and overly ambitious.

Second, it’s not clear if the remaining fossil gas will be replaced, since the NECP indicates that fossil gas use will only be halved from current levels by 2050. Realistically, the future availability of renewable hydrogen and sustainably produced biogas will be limited, while renewable hydrogen will remain significantly more expensive than fossil fuels for decades to come. Therefore, renewable hydrogen should be prioritised for hard-to-abate sectors like chemical production, steel and iron, where direct electrification has yet to become technically or economically feasible.

Hydrogen production is notoriously inefficient, and significant energy losses occur when converting renewable electricity to hydrogen and back. This further underscores the need for direct electrification, especially in the power sector. Unfortunately, the NECP fails to grasp the importance of this approach, both in terms of renewable energy targets for 2030 and its plans to significantly increase gas-based electricity production.

A not-so-green future

For now, the Romanian government’s strategy is to expand gas infrastructure on a large scale, which will make the transition away from planet-heating fuels more expensive and challenging. And while the NECP contains some measures likely to improve the renewable sector, such as adding production capacity, storage, and heat pumps, progress is still far too slow. Indeed, a recent Greenpeace analysis of the NECP shows that the government plans to allocate EUR 13 billion each to both renewable infrastructure and fossil gas, completely undermining the EU’s climate ambitions.

To bring about an equitable and realistic energy transition, Romania must invest far more in renewable energy, grid infrastructure, and flexibility, while supporting vulnerable consumers impacted by rising fossil-fuel prices. Most importantly, the government must gradually reduce fossil-fuel subsidies, as recommended by the European Commission.

Romania’s NECP falls short of the EU’s climate ambitions and places the country on a path towards prolonged fossil-fuel dependence. By setting a renewable target below the EU’s legally binding requirement and dedicating substantial resources to gas infrastructure, Romania risks delaying its energy transformation. This could hinder progress towards meeting the EU’s targets and strain its capacity to meet future climate commitments. The European Commission should carefully analyse the country’s proposal and ensure this scenario doesn’t come to pass.

Jobs after Coal: The Just Transition Fund makes its first major move in Poland

The programme has been specifically tailored to meet the needs of the region, its residents and its largest employer. ZE PAK, which operates a number of power plants and lignite mines in the region, is the largest producer of brown coal in Poland, making it a key player in the just transition.

The programme has been developed through collaboration with the World Bank, local non-governmental organisations and Konin Regional Development Agency. The final version of the programme submitted for financing from the Just Transition Fund was spearheaded by trade unions representing ZE PAK Capital Group and ZE PAK’s management board.

A case of too many cooks?

Jobs after Coal already boasts 10 key partners, including Poznań’s district labour office, various other regional district labour offices, as well as private companies and associations specialising in supporting employment and entrepreneurship development. Together, these organisations are tasked with managing and implementing a substantial budget of over PLN 257 million (around EUR 60 million).

But while having a diverse range of partners brings different strengths to the table, there’s concern that the sheer number of bodies involved may drive up operational costs. This raises the question of whether a project of this scale will benefit from the participation of so many implementing partners.

Who does the programme serve?

One of the most impressive things about the programme is its broad group of potential beneficiaries, which includes not only current employees of ZE PAK at risk of losing their jobs, but also former employees laid off since 2018.

In addition, employees from related industries in the mining and energy sectors, as well as their family members, are eligible for assistance. But although current employees of ZE PAK are the programme’s primary target group, the numbers that have signed up so far are relatively small.

There are several reasons for this. First, workers that already have jobs are often reluctant to prepare for future unemployment. Second, ZE PAK’s mine and power plant outside Konin are expected to continue operating until at least 2026, if not longer, depending on market conditions and the political situation.

And third, the government has promised an attractive social security package for ZE PAK’s future job leavers, which could discourage employees from applying for the programme. That said, things are likely to change as we approach 2026 and as more employees start to consider the prospect of impending job losses.

Family and community not forgotten

For the time being, the programme is mainly benefitting former employees and their relatives. This approach not only supports the miners and engineers themselves, but also the entire community to which they belong.

Family support will be of particular importance, as these individuals may face greater challenges in the job market compared to those with transferable skills. The programme also offers professional development opportunities for women, including those from miners’ families and former employees of ZE PAK’s administrative and financial departments.

Despite the programme’s ambitions, recruitment remains the biggest challenge. Potential beneficiaries will need to be supplied with the right information in an effective way. But even that won’t guarantee interest.

Scepticism towards EU-financed programmes of this kind is also likely to be a factor, with some of the belief that they’re ineffective or a waste of money. Either way, those involved in running the programme have their work cut out if they’re to overcome these barriers and attract the 2,200 people they aim to support in the labour market.

Taking the personal touch

The goal of the programme is to provide assistance that goes above and beyond the standard services offered by labour offices. Specialised entities will offer a range of services, including individual counselling, vocational training, subsidised employment, and relocation allowances.

With a dedicated budget of up to PLN 150 000 (EUR 35 000) per person, each participant is first assigned a career counsellor to develop a personalised action plan. The programme then offers one of two paths: stable employment based on an employment contract or support in setting up and running an individual business or social enterprise.

Support will also be provided to existing social enterprises that decide to hire participants from the programme. In fact, this emphasis on social entrepreneurship, a sector just beginning to develop in Poland, is a welcome move and may help kickstart this relatively new field.

At the same time, there’ll be a focus on encouraging people to remain in the region. For many years now, municipalities in Eastern Wielkopolska have witnessed increasing migration to other regions of the country, particularly the big cities.

With the aim of retaining local talent, the organisers of Jobs after Coal are determined to get the message across that changing jobs doesn’t have to mean changing home. But only time will tell if this strategy will work. With recruitment for the programme having only just started in May, we’ll have to wait a little longer to assess the results.

Encouragingly, there are already several positive examples of beneficiaries who have decided to stay put in the region, including a former miner who now works as a barber and another who recently found employment in the basilica in Licheń.

Hope for a just transition

ZE PAK had almost 6,000 employees on its books in 2017, a figure that dropped to 2,700 in 2022. For many mining families, the primary breadwinners have already left the ZE PAK workforce to pursue jobs in other fields, giving reason for hope that the programme will be a success.

The Warsaw-based think-tank Instrat will monitor the outcomes of the programme, the effectiveness of both professional development paths on offer, and the level of employee satisfaction.

Jobs after Coal is set to run until June 2029, with a mid-term review planned for around mid-2026. This will provide an opportunity to assess the impact of the programme and its ability to adapt to what remain uncertain times for so many miners and their families.

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.

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