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Legal challenge mounted against subsidies for Belgrade waste incinerator

The first complaint challenges the approval by the Ministry of Mining and Energy in September 2019 of a feed-in tariff for all electricity generated by the incinerator (2). Only energy from the biodegradable fraction of waste is considered renewable under the EU’s 2009 Renewable Energy Directive, to which Serbia has committed under the Energy Community Treaty (3).

The second complaint alleges that the Serbian government breached the EU Directive on environmental impact assessment (EIA)(4) by issuing a construction permit for the incinerator in August 2019, a month and a half before the EIA was approved. This, according to the complaint, prejudiced the outcome of the EIA process and rendered the public consultation meaningless (5).

Aleksa Petković of Ne Davimo Beograd said, “Burning mixed municipal waste and diesel as an auxiliary fuel is clearly not renewable energy and must not receive subsidies. The EU is moving towards a circular economy, increasing separate waste collection and recycling. Serbia deserves a healthy and efficient system too, but it will never develop if we lock Belgrade into expensive, polluting and wasteful incineration.” 

Pippa Gallop of CEE Bankwatch Network said: “The European Commission and European Investment Bank declined to back this project because it would hinder Serbia in reaching EU circular economy targets. But other public lenders press on, including the European Bank for Reconstruction and Development, International Financial Corporation, the Marguerite II Fund and Austrian Development Bank, in blatant disregard for EU law. They need to stop digging and withdraw from the project”.

Contacts

Pippa Gallop, CEE Bankwatch Network

E-mail: pippa.gallop@bankwatch.org

Mobile: +385 99 755 9787

Skype: pippa.gallop

 

Aleksa Petković, Ne davimo Beograd

E-mail: aleksa22705@gmail.com

Mobile: +381 64 569 7566

Skype: aleksa.petkovic

Notes for editors

  1. In 2017 the Beo Clean Energy consortium, owned by Suez, Itochu and the Marguerite II Fund, signed a concession agreement with the Belgrade city authorities for a 340,000 tonne-per-year municipal waste incinerator next to the existing Vinca landfill, along with a new landfill, construction waste facility and landfill gas facility. The project is financed by the European Bank for Reconstruction and Development, the International Finance Corporation and the Austrian Development Bank (OeEB). More information about the Belgrade waste management PPP can be found here: https://bankwatch.org/project/belgrade-incinerator-public-private-partnership-ppp-belgrade-serbia
  2. Decision to award the status of temporary privileged producer of electrical energy to Beo Čista Energija d.o.o., for the EfW Vinča waste power plant, installed capacity 30.24 MW, no. 312-01-00818/2019-06, of 27.09.2019.
  3. Under Energy Community Ministerial Council Decision 2012/04/MC-EnC, Serbia committed to implement Directive 2009/28/EC on the promotion of the use of energy from renewable sources by 1 January 2014. Article 2 of the Directive defines renewable energy as follows: “(a) “energy from renewable sources” means energy from renewable non-fossil sources, namely wind, solar, aerothermal, geothermal, hydrothermal and ocean energy, hydropower, biomass, land-fill gas, sewage treatment plant gas and biogases”. It further specifies that: “(e) “biomass” means the biodegradable fraction of products, waste and residues from biological origin from agriculture (including vegetal and animal substances), forestry and related industries including fisheries and aquaculture, as well as the biodegradable fraction of industrial and municipal waste”.
  4. Directive 2014/52/EU of the European Parliament and of the Council of 16 April 2014 amending Directive 2011/92/EU.
  5. The construction permits for the incinerator, no. ROP-MSGI-3997-CPI-3/2019, and the landfill gas facility, no. ROP-MSGI-3997-CPI-4/2019, were issued on 16.08.2019, while the environmental impact assessment for the plants was approved only on 30.09.2019 (Decision no. 353-02-1302/2019-039). Article 2 of the EIA Directive requires that (our emphasis): “1. Member States shall adopt all measures necessary to ensure that, before development consent is given, projects likely to have significant effects on the environment by virtue, inter alia, of their nature, size or location are made subject to a requirement for development consent and an assessment with regard to their effects on the environment.

More details on the clash between EU recycling targets and the Belgrade incinerator can be found here: https://bankwatch.org/press_release/new-analysis-belgrade-incinerator-public-private-partnership-a-textbook-case-of-corporate-capture

North Macedonia government contemplates prompt coal exit

Two of the strategy’s [1] scenarios entail a coal exit by 2025, with the third delaying the closure of the Bitola lignite power plant until 2040. A final decision on which pathway to take will be made later in the year. Lignite has been responsible for around half of the country’s electricity generation in recent years, contributing to the Western Balkans’ chronic air pollution problems [2]. The energy strategy now plans to significantly ramp up solar and wind power.  A total of 120 MW of solar photovoltaic capacity is planned on the defunct open-cast lignite mine at Oslomej, where an obsolete power plant will soon be closed. The solar plant’s operators plan to use the same infrastructure and employees as the power plant. 10 MW is already under construction, and a tender has been launched for an additional 100 MW [3].  Civil society groups welcomed the adoption of the strategy as a decisive first step towards sustainable decarbonisation. Kathrin Gutmann, campaign director for Europe Beyond Coal, said, “The North Macedonian government clearly understands that the end of coal is looming and has taken the initiative to protect the health of its people, its economy, and our climate. The fact that two out of three scenarios stipulate an exit from coal by 2025 as the least cost option shows just how much of a liability coal has become. North Macedonia’s Balkan neighbours need to pay close attention, as this is the future of Europe: a rapid coal phase-out.”  Nevena Smilevska, programme coordinator for climate at Eko-svest, said, “The government took a bold step by giving CSOs the opportunity to be included from the early stages of the preparation of the strategy. This, in turn, resulted in a strategy that provides a clear roadmap towards a coal phase-out, brings great opportunities for investments in renewables, but also responsibility to both national and local authorities. It is crucial that they now work with local communities to plan for the just transition of the Oslomej and Bitola coal regions, to make sure no-one is left behind.”. Davor Pehchevski, coal campaigner with CEE Bankwatch Network, said, “A coal exit is a great step forward, but we also need to rethink the country’s entire energy mix, including its gasification policy. The need to preserve both our climate and ecosystems also means that renewable energy must be sustainable energy. This calls for a more cautious approach to hydropower plans.”  Contacts Nevena Smilevska, Eko-svest, nevena@ekosvest.com.mk, tel: +389 71 400 720  Davor Pehchevski, CEE Bankwatch Network, davor@bankwatch.org, tel: +389 71 264 087 Alastair Clewer, communications officer, Europe Beyond Coal, alastair@beyond-coal.eu +49 176 433 07 185 Notes for editors [1] The adopted strategy is available in English here: http://www.economy.gov.mk/Upload/Documents/Adopted%20Energy%20Development%20Strategy_EN.pdf [2] For more information see HEAL et al: Chronic Coal Pollution, February 2019: https://www.env-health.org/wp-content/uploads/2019/02/Chronic-Coal-Pollution-report.pdf  [3] https://energy-community.org/news/Energy-Community-News/2020/02/18.html  

Irrespective of the size, the EU budget must serve higher climate ambition

The objective of the European Green Deal to make the European economy climate-neutral requires bold public financial support that spurs climate action in the EU. The Sustainable Europe Investment Plan, including the Just Transition Mechanism, will provide targeted finance to Europe’s most vulnerable regions in their move to clean energy.

However, the entire EU budget has the potential to boost the energy transition, only if climate neutrality is at the heart of each spending plan and if a bigger slice of the pie goes to the decarbonisation of the energy, transport, housing, and farming sectors. This has to go hand-in-hand with the exclusion of fossil fuels from all EU funding.

The current proposal to increase the share of the future EU budget for climate action from 20% to 25% represents a marginal increase that still falls short of the climate neutrality objective EU leaders adopted in December last year. An ambitious spending target of at least 40% is needed to support the decarbonisation of all sectors of the economy.

The Just Transition Mechanism is a welcome completion of existing EU funding sources, but the real firepower lays in EU funding for the regions – Cohesion Policy – which has great, though currently untapped potential in helping Europe’s fossil fuel-dependent regions switch to a zero-carbon economy. A strong focus of Cohesion Policy on catalysing the transition towards climate neutrality, which is currently challenged by countries benefiting the most (the so-called “Friends of Cohesion”), must be ensured.

The European Parliament, Commission, and Council are still negotiating where the money of EU funds, Common Agricultural Policy and Cohesion Policy in particular, will go. The exclusion of fossil fuels will be a key step for the EU to show consistency between its Green Deal and the budgetary decisions.

Markus Trilling, finance and subsidies policy coordinator at Climate Action Network (CAN) Europe said:

“The money is there, but not yet the political will to spend it wisely. The EU budget must catalyse changes that will benefit citizens and the environment. The current budget proposals are not in line with the European Green Deal promises, as if EU leaders turned a blind eye on the implications for the budget of the climate neutrality goal that they committed to last December. They must urgently connect the dots between climate ambition and how the EU money can better serve that ambition.”

Raphael Hanoteaux, EU policy officer for CEE Bankwatch Network, said: 

“EU leaders must focus on the quality – not the quantity – of budget spending. Debates over the size of the pot miss the mark, because effective spending means no money wasted on obsolete fossil fuels while giving priority to investments for action to curtail climate change.”

Note to editors: the link to the livestream of the press conference “An EU Budget fit for the European Green Deal?”, Tuesday 18 February, is accessible here

Mixed messages in Romania’s energy and climate plan, as new coal projects are shelved but no date set for a coal phase-out

The NECP removes plans for new coal projects that appeared in earlier drafts, including  a 600 MW unit at the Rovinari power plant, a project proposed in 2012 and postponed indefinitely because a cost-effective solution for all stakeholders could not be identified. Yet Romania remains one of seven EU Member States that has not yet set a date for coal phase-out. In the NECP, it estimates installed coal capacity in 2030 at almost 2 GW, even though this electricity is already unprofitable, and it is unclear how coal-based energy companies will survive until then. The Romanian economy is dependent on industries with high greenhouse gas emissions, but the NECP does not detail measures to support a just transition away from fossil fuels. Jiu Valley is already part of the Platform for Coal Regions in Transition and is currently receiving technical assistance to identify the most suitable projects and funding sources for the area. But for Gorj County, where over 10 000 people are directly employed in quarries and power plants, the next steps for decarbonisation are not addressed in the Plan. The NECP also proposes a decrease of 43.9 per cent of greenhouse gases emissions until 2030, compared to 2005, a 30.7 per cent share of renewable energy in the gross final consumption (in contrast to the European Commission’s recommended share of 34 per cent), and a drop in final energy consumption of 40.4 per cent.  Yet the specific measures proposed in the NECP to reach these targets are not detailed enough nor adequately funded. Alexandru Mustață, campaign coordinator for Bankwatch Romania, said “This is a wasted opportunity. While the European Commission is ready to support Member States to achieve the energy transition with the one trillion euros Investment Plan in the European Green Deal, Romania proposes massive investments in natural gas and keeps coal in the energy system. Although almost all EU Member States have understood that clean energy is the future, Romania does not have enough courage to capitalize on its enormous potential for renewable energy.” The full analysis of the Romanian NECP is available here. * The second version of the NECP was published by the Romanian Ministry of Economy on 31 January and defines the strategy in the energy sector until 2030.

EU Just Transition Mechanism needs local ownership and concrete steps to decarbonisation

Initially proposed as a Fund in November 2018 by parliamentarians from central and eastern Europe, the Just Transition Mechanism will also include a dedicated scheme under InvestEU and a public sector loan facility with the European Investment Bank to mobilise additional investments to the target regions concerned.

 

Bankwatch welcomes that the proposed 7.5 billion euro Fund will be available only for projects that are low-carbon and climate-resilient, including re-skilling programmes for miners, jobs in new economic sectors and energy-efficient housing and territorial transition plans, and that it explicitly excludes any support for fossil fuels. However, it is disappointing that the InvestEU scheme leaves a door open for the financing of gas infrastructure.

 

In order to access the Mechanism, countries need to propose one or more territorial just transition plans, which need to be consistent with National Energy and Climate Plans (NECPs). But especially in central and eastern Europe, the NECPs are lacking ambition and many have insufficient provisions to lead to the EU 2050 carbon neutrality target.

 

Examples from central Europe show that a just transition is possible provided that locals own the planning and big polluters do not receive back door subsidies. In July 2019, the Slovak government approved a plan for the redevelopment of Upper Nitra coal region, which was created based on inputs from the local community provided through focus groups since 2018.

 

The Action Plan also rejected a new mine at the Novaky coal complex, which private company Hornonitrianske bane Prievidza (HBP) was intent on opening. Locals’ inputs have resulted in a plan that aims for “developing economic activities in symbiosis with a clean environment”.

 

Raphael Hanteaux, EU policy officer with CEE Bankwatch Network, said, “We can’t afford the money from the Mechanism ending up in the wrong pockets. Clear and strict criteria must be established and adhered to so as to ensure that this money is used for the purpose for which it is intended: to alleviate the economic and social impacts of the transition away from fossil fuels for the most vulnerable communities.”

 

Juraj Melichar, national coordinator for Slovakia with CEE Bankwatch Network, said, “The just transition will be a difficult process, and each region faces very different challenges and opportunities. It is imperative to involve local communities and develop tailor-made solutions to region’s specific needs. As we’ve seen in Slovakia, a just transition begins at the local level, so the Mechanism must give communities the means to be involved in the process by building their capacities and providing them with the necessary technical assistance to apply and manage EU funds.”

 

Contacts

 

Raphael Hanoteaux
EU policy officer
CEE Bankwatch Network
+32 2 894 46 00

 

Juraj Melichar
Slovakia coordinator
CEE Bankwatch Network
+421 903 473 816

Consensus on EU long term emissions reductions paves way for climate action in central and eastern Europe

Acceptance from the remaining holdouts in central Europe – Hungary, Czechia and the delay given to Poland – circumvents a roadblock that could have halted the deal, meaning that these states and others in eastern Europe must now ensure that proper plans and funding are in place to reach the deal’s objectives.

The Council deal points out that this ambitious target is an important compass point as Member States formulate how each country will spend its slice of the next one trillion euros EU budget after 2020. To be in line with this commitment, the next EU budget should exclude fossil fuels and give clear priority to climate action. 

Central and eastern European Member States are in a prime position to plan for an energy transition that transforms the carbon-intensive economies of the region and leads to a sustainable and just future for the communities that will be affected most by the inevitable move away from fossil fuels. 

Raphael Hanoteaux, EU policy officer with CEE Bankwatch Network, said, “This deal should be applauded across Europe and is the clearest sign yet that fossil fuels, including fossil gas, have no place in the energy mix and should not receive precious public money.” 

“The next step is for the EU to update its interim 2030 objective to a more ambitious target of greenhouse gas emissions, if the bloc is serious about getting to net zero by 2050.”

Izabella Zygmunt, Poland national campaigner with CEE Bankwatch Network, said, “Even with the Council pandering to Poland’s domestic pro-coal supporters, this won’t stop EU action on climate change. Poland has no choice but to follow suit, and it now needs to start working out a robust, just transition plan with cities, municipalities, businesses and the citizens who overwhelmingly support carbon neutrality.”

Alexandra Botar, Hungary national campaigner with CEE Bankwatch Network, said, “The rubber has hit the road in central and eastern Europe, and it is high time to plan a real transition that modernises the energy and economic systems of the region and readies it for a net-zero world.”  

Hungary cannot use climate neutrality as a bargaining chip in future discussions over its share of the EU budget. The costs of becoming carbon neutral pale in comparison to the cost of inaction.”

Contacts 

Raphael Hanoteaux, EU policy officer

Email: raphaelh AT bankwatch.org

Izabela Zygmunt, Poland campaigner

Email: izabela.zygmunt AT bankwatch.org

Alexa Botar, Hungary campaigner

Email: alexa AT mtvsz.hu