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A checklist to ensure getting Territorial Plans for coal regions right

“Countries in central and eastern Europe are currently embarking in the process of writing up Territorial Plans for their coal regions, which would enable them to access the billion of euros made available by the EU via the Just Transition Fund,” explains Alexandru Mustață, the Bankwatch Just Transition coordinator. “But not every Territorial Plan is a good one. So, looking back at our experience working with coal communities in countries in the region, we came up with a checklist of what would make a good Territorial Plan.”

The European Council decided on Monday to reduce the Just Transition Fund for the period 2021-2027 from EUR 40 billion to 17.5 billion. This might discourage some regional governments, which began seeing the transition as an opportunity, not only a challenge. It is now even more important that the Fund only supports projects leading to climate neutrality. Investments must create quality jobs as quickly as possible, but they shouldn’t rely on the Just Transition Fund alone – the Cohesion Policy has many instruments to support the transition of coal regions. 

The checklist comprises, among others: concrete indicators that the Territorial Plans should include, for example when it comes to emissions and jobs; criteria on how to make sure the Plans do not support polluting or dated industries in the regions; specific advice on how to make participation work. 

“The Upper Nitra region in Slovakia is a bit of an outlier in central and eastern Europe, in that our Territorial Plan was prepared by engaged local community members gathering in working groups,” says Lenka Ilcikova, a Bankwatch Just Transition campaigner in Slovakia and one of the authors of the checklist. “So, based on our experience with turning citizens’ inputs into local strategies, based on what worked for us and what didn’t, we can now offer some guidelines to those only starting out in neighbouring countries.”

The territorial just transition plan checklist is available at https://bankwatch.org/tjtp, and a full explanation for the checklist can be found in our briefing: https://bankwatch.org/tjtp-checklist“

For additional information please contact:

Alexandru Mustață
Just Transition coordinator, CEE Bankwatch Network
E-mail: alexandru.mustata@bankwatch.org
Tel.: +40726770808
Twitter: @AlexandruBW

New report calls on Member States to steer EU regional and recovery funding towards climate neutrality

A new report published by Climate Action Network (CAN) Europe and CEE Bankwatch Network identifies concrete investment proposals as listed in National Energy and Climate Plans (NECP) of 14 Member States to be funded in order to ensure a green recovery. The report titled “EU Funds for a Green Recovery”, comes right after the president of the European Council, Charles Michel’s proposal to increase the climate spending target of EU funds from 25% to 30% and makes it clear that if the EU funds are used wisely, they could both ensure a green recovery and boost climate ambition.  

Investments in sustainable renewable energy (including energy communities and prosumerism) and energy efficiency have the biggest potential to improve the quality of life for millions of Europeans, while increasing climate ambition. In addition, these sectors present a huge potential for creating jobs. Therefore, the report proposes them to be prioritised to get funding from the next EU budget and recovery funds. In addition, low emission transport systems, sustainable mobility measures and nature-based solutions are underlined as sectors having important potential to increase the climate ambition, while stimulating the economy for a green recovery. These measures offer important opportunities to Member States to increase their climate spending while ensuring the implementation of a much higher 2030 climate target for the EU.  

However, the report points out that many harmful measures still remaining in the NECPs might undermine climate action in the next decade. As proposed by the Commission, the NECPs will inform the spending of the next generation of EU funds, including the recovery plans. Therefore, the report recommends Member States to direct their upcoming spending plans towards climate neutrality and not to put money on the harmful measures such as development of new fossil gas infrastructure, exploitation of national fossil fuel resources, use of biomass in low-efficiency heating systems and investments in non-renewable energy sources.

Markus Trilling, finance and subsidies policy coordinator at Climate Action Network (CAN) Europe said: “”In this week’s European Council, Heads of State must rapidly build on the President’s proposal and agree on increasing climate action spending to at least 40%. It is much needed to pave the way for a drastically increased 2030 climate target. 

Timing of this decision is also very crucial as in the next months, Member States will present their spending plans for the next long term EU budget and set priorities for Recovery and Resilience Plans to receive support from the EU’s Recovery Fund. What Member States put in their spending plans will define the EU’s response to both the climate and economic crises in the next 10 years. Now, EU leaders have an opportunity to agree on using the full potential of EU funds to boost climate action and exclude support to fossil fuels.”

Raphael Hanoteaux, EU funds policy officer at CEE Bankwatch Network, said: “EU leaders have the choice to build back better with the recovery package. All member states win if spending plans are designed to transform public infrastructure and move towards a net zero-emissions, carbon free economy by 2050. This begins in eastern Europe by supporting smart investments with huge potential like energy efficiency, and banning any further spending on fossil fuels.”

The Commission’s proposal on the entire package, which comprises the revamped MFF 2021-2027 and additional funds specifically tailored to support the economic recovery until 2024 called ‘Next Generation EU’, has in place an overall climate mainstreaming target of at least 25%. The Council Presidency proposes to increase it to 30% and couple this financial boost with a commitment to reach the highest possible climate target for 2030. Cash from the Just Transition Fund would only be awarded to countries committing to climate neutrality on national level by 2050.

How to hit the ground running on just transition in the Western Balkans and Ukraine

The recommendations come as the European Commission is closing this Friday a tender for a consortium to run the secretariat of the new Initiative, dedicated to the Western Balkans and Ukraine. They are endorsed by eight other NGOs from the Western Balkans and Ukraine or active in these countries. 

“We’ve been taking part in EU Coal Platform meetings since the very start, making sure that the proceedings included voices of local communities and civil society, which was not obvious at the beginning,” says Alexandru Mustață, Bankwatch Just Transition coordinator and one of the authors of the recommendations. “Just as the Coal Platform has been extremely useful in inspiring and guiding coal regions in the EU on their transition paths, the Initiative can do the same for neighbouring countries – on the condition that it starts out on the right foot.”

Among the NGOs’ recommendations are: 

  • Ensure transparency, both in the functioning of the Initiative and in selecting participant regions and financed projects
  • Create an online hub both to share knowledge and ensure transparency, and hence credibility
  • Respect the partnership principle throughout all actions undertaken, meaning involving all stakeholders in all phases of all processes, from the preparatory stages through to the implementation and assessment of results
  • Make any future funding conditional on proper bottom-up planning and respect for public participation, proportional to the magnitude of the challenge, and rewarding of ambition; do not give any funding to fossil fuel projects, including gas.

“We welcome the Commission’s plans to create this Initiative dedicated to the Western Balkans and Ukraine. It fills a gap in countries where the potential for transformation is huge but the political will to advance on that path is sometimes lacking,” says Ioana Ciuta, a Bankwatch energy campaigner working in the Western Balkans and co-author of the recommendations. “But what our experience with the EU Coal Platform has taught us so far is that only with the substantial involvement of local communities can a plan for the future of these regions be well developed and successfully implemented. So we hope to see this respect for grassroots participation visible from the kickoff of the new Initiative.”

Check out the recommendations here.

European Parliament asks European Investment Bank to double down on sustainability and transparency

Yesterday, the European Parliament approved two reports (see here and here) on the activities of the EIB. One report was led by MEP David Cormand in the Committee of Budgets (BUDG) and the other by MEP Bas Eickhout in the Committee on Budgetary Control (CONT).

Both reports send a strong signal to the bank: it needs to seriously ratchet up its standards on  transparency, accountability and sustainability. The role of the EIB in financing the European Green Deal while being part of the EU’s response to the economic consequences of the Covid-19 crisis was a key focus of both reports.

Bankwatch, Counter Balance and a growing number of civil society groups have been calling on the EIB to up its game if it is to genuinely become the EU Climate Bank. We are glad to see that the European Parliament is of a similar opinion urging the EIB to align its performance with the Paris Agreement by the end of the year. 

The CONT report “calls on the EIB to commit to ending the financing of all projects that are not in line with the Paris Agreement and the EU’s climate goals” and “calls on the EIB to draw up a roadmap with specific, measurable, attainable, realistic and time-defined targets with regards to the implementation of the Paris Agreement.” In addition, the BUDG report has urged the EIB to guarantee for climate neutrality of its non-climate lending. 

In this context, MEPs rightly noted that currently a third of the EIB financing, which flows via intermediaries – mostly commercial banks – is distributed with no control over its climate impact. The EIB, they explain, needs to start “requiring its intermediary clients to disclose their exposure to fossil fuels, and (…) gradually apply restrictions to heavily exposed intermediaries” and the Parliament “expects that by the end of 2025 all intermediaries will have a decarbonisation plan, since this is indispensable for their financing to continue (…).”

Ongoing discussions around the future role of the EIB outside of Europe did not escape Parliament’s attention either. MEPs called on the EIB “to prioritize poverty eradication, domestic resource mobilisation and human rights” and to “make sure human rights considerations are taken into account all through its decision-making process”. Given the harmful impacts of EIB operations exposed over the last years, for example in Kenya or Georgia, we welcome the request  “to strengthen its human rights strategy, including the risk of reprisals against human rights defenders” in the context of the upcoming review of the EIB environmental and social standards. 

The quality of the EIB operations was also of particular focus and the Parliament asked the bank “to make full use of contractual clauses enabling it to suspend disbursements in cases of projects’ non-compliance with environmental, social, human rights, tax and transparency standards”. Echoing repeated calls from civil society and local communities,  the reports also ask the EIB to “enhance its monitoring of projects and improve its reporting and evaluation of actual results achieved and its analysis of actual economic, social and environmental impacts”. 

Anna Roggenbuck, EIB Policy Officer at CEE Bankwatch Network, said:

“CEE Bankwatch Network is very glad to see this year’s reports emphasising the importance for the EIB to raise the bar on transparency when implementing its projects, especially under European investment plans like the Juncker Plan and its successor InvestEU. Transparency is a key issue for citizens to understand the actions and impacts of EU institutions and a tool for an institution like EIB to demonstrate its ethics, integrity, and accountability. We also support the call for more external and independent control of the EIB operations by the European Court of Auditors in order to scrutinize the quality, effectiveness and additionality of EIB operations”.  

Xavier Sol, Director at Counter Balance, said: 

“The Parliament made it clear: the increased responsibilities of the EIB under the economic recovery plans at European level have to come with better control of public funding channeled to its clients. In this regard, parliamentarians rightly urge the EIB to truly implement its proclaimed ‘zero tolerance towards fraud and corruption’. It is time for EU public finance to stop ending as a blank cheque to polluters or fraudsters”.

For additional information please contact:

Anna Roggenbuck
Policy Officer, CEE Bankwatch Network
annar@bankwatch.org
+48-918315392
+48-509970424

Xavier Sol
Director, Counter Balance
xavier.sol@counter-balance.org
+32(0)2 893 08 61

Western Balkan coal power plants breach pollution limits by 6 times, for the second year in a row

The report can be downloaded from here.

The 2020 edition of the Comply or Close report shows that, instead of getting closer to compliance, SO2 emissions at coal power plants covered by National Emission Reduction Plans in the Western Balkans have overall increased. 

The total SO2 emissions from coal plants in Serbia, Bosnia-Herzegovina, Kosovo and North Macedonia reached nearly six times the amount allowed by the countries’ plans in 2019. The key culprits were in Bosnia and Herzegovina and Serbia but, worryingly, the Bitola power plant complex in North Macedonia doubled its SO2 emissions in 2019. 

Three years after desulphurisation equipment was installed at the Kostolac B power plant in Serbia, the plant is still the second largest SO2 emitter in the region, single-handedly breaching the national ceiling by 1.5 times. It is topped only by Ugljevik in Bosnia and Herzegovina, which has also fitted SO2 reduction equipment that is not yet functional.

Despite a slight decrease in 2019, dust emissions from the analysed power plants in these four countries remained at nearly 1.6 times the combined threshold. In particular, the Kosova B power plant in Kosovo remained the region’s top dust polluter, emitting 5.4 times as much as its emissions ceiling.

National Emissions Reduction Plans are a mechanism which makes it easier for the countries to reach compliance, as the obligatory emissions ceiling is set at the national level, rather than per individual plant. By the end of 2027, all plants must be in compliance with emission limit values individually as well. All of the region’s coal plants, except a few smaller ones, are included in such plans.

“Any government that insists on keeping these dirty power plants going, must step up investments in pollution control equipment that can comply with the LCP BREF, the EU’s newest industrial pollution standards. Until then, the plants’ operating hours need to be trimmed to meet the pollution limits in the Large Combustion Plants Directive that the countries have committed to as part of the Energy Community Treaty,” says Pippa Gallop, Southeast Europe Energy Advisor with Bankwatch and a co-author of the report.

“Our alarming findings are a testament to governments’ foot-dragging, that is already taking a toll on human life. Thousands of people across the region and in neighbouring EU countries aredying prematurely from the pollution from these coal power plants. This is unacceptable,” says Davor Pehchevski, Balkan air pollution campaign coordinator with Bankwatch.

“Overall, governments can no longer place their bets on coal. It remains to be seen whether the region’s two largest desulphurisation investments – at Ugljevik in Bosnia-Herzegovina and Kostolac B in Serbia – will genuinely help cut air pollution. But in any case, decision-makers across the region need to start shutting down coal-fired power plants and shifting to sustainable forms of renewable energy. There is no way around it,” says Ioana Ciuta, Energy Coordinator with Bankwatch and co-author of the report.

For more information please contact:

Ioana Ciuta
Energy Coordinator, CEE Bankwatch Network
E-mail: ioana.ciuta@bankwatch.org
Mobile: +40724020281

Pippa Gallop
Southeast Europe Energy Advisor, CEE Bankwatch Network
E-mail: pippa.gallop@bankwatch.org
Mobile: +385 (0)99 755 9787

Press release is also available in Albanian, Serbian and Bosnian languages.

EU budget breakthrough achievable with higher climate ambition, say campaigners

Discussions today among Member States focus on a proposal from the Commission for unlocking 750 billion euros with its new recovery instrument, Next Generation EU. Yet while the proposal should be guided by principles of the European Green Deal, it still lacks explicit restrictions on fossil fuels investments. 

Even as Member States disagree on how the proposed increase from the Commission will be financed, countries back overwhelmingly a sustainable recovery. To date every state except for Poland has pledged support for the EU’s ambition of achieving a net-zero emissions economy by 2050, and in a letter this week to Council president, mayors of the Visegrad four capitals called for increasing greenhouse gas reduction targets to 55 per cent by 2030.

Raphael Hanoteaux, EU funds policy officer at CEE Bankwatch Network, said “There is more common ground among Member States then they let on. Even in central and eastern Europe, where heel dragging towards progress on climate change is at its highest, countries recognise that a green EU budget is a win win.

A sustainable, just and timely transition is possible in central and eastern Europe only if we restrict funding for fossil fuels of any kind and set a target spending level of at least 50 per cent on projects that address the threat of climate change. We know that tying the pandemic response to green stimulus is the surest way to economic recovery, so the blueprint is in front of Member States.”

For more information contact:

Raphael Hanoteaux, EU funds policy officer
CEE Bankwatch Network
raphaelh@bankwatch.org