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
Press release
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
New report: Western Balkan coal plants in severe breach of air pollution limits
According to the research, total sulphur dioxide emissions from coal plants in Serbia, Kosovo, Bosnia and Herzegovina and North Macedonia were more than six times as high in 2018 as the overall ceiling agreed with the Energy Community in the countries’ National Emission Reduction Plans.
One power plant in Serbia, Kostolac B, single-handedly emits more SO2 than the total allowed for the four countries together despite being the only plant in the region with recently installed desulphurisation equipment. The China Machinery and Engineering Corporation (CMEC), the company which installed the equipment, has also been entrusted to build a whole new unit at the Serbian coal complex.
Dust emissions from coal plants in Serbia, Kosovo, Bosnia and Herzegovina and North Macedonia also exceeded the ceiling by over 60 per cent. Serbia’s and Kosovo’s contributions alone were enough to breach the overall ceiling. Kosovo B was the highest emitting plant for dust, producing around half of the total allowed for the four countries.
Countries in the Western Balkans are signatories of the Energy Community Treaty, which includes industrial pollution reduction targets, the first of which should have been implemented by 2018. Yet the new research highlights that, not only are the countries breaking their commitments, but at some plants in the region, pollution levels have worsened.
“Given the life-threatening nature of air pollution, the neglect of this issue by the region’s governments is incomprehensible and reprehensible. Investing in pollution control is not just a legal obligation, it is also the duty of any government which cares about its people,” says Ioana Ciuta, Bankwatch Energy Coordinator and one of the authors of the report.
“Instead of investing in pollution control and steadily decreasing the share of coal in the energy mix, the Bosnia and Herzegovina, Kosovo and Serbian governments are planning new coal plants, all of them in contradiction to EU legislation on environment, state aid and/or procurement. Instead of locking themselves into decades of increasingly expensive coal use, Western Balkan countries need to ensure existing plants meet pollution requirements or close them down, and plan for a coal-free future,” says Pippa Gallop, Bankwatch Senior Energy Advisor for South East Europe and co-author of the new research.
The report includes recommendations for how national governments can improve pollution monitoring and control, as well as for how the European Union should act to strengthen the Energy Community, to ensure that pollution breaches do not continue unsanctioned.
The report will be officially launched Dec. 10 during an event in the European Parliament hosted by MEP Viola von Cramon, the Greens/EFA and MEP Petros Kokkalis, GUE/NGL. Please feel free to join: starting at 9.00 in the European Parliament, Brussels, room ASP 1E1.
The agenda is available here, representatives of the European Commission and Energy Community will be discussing the findings of the Bankwatch report.
Notes for editors
Read the new Bankwatch report, “Comply or Close”
See the agenda of the event in the European Parliament where the report is launched and its findings discussed by representatives of key EU institutions:
For more information, contact
Ioana Ciuta
CEE Bankwatch Network
E-mail: ioana.ciuta@bankwatch.org
Mobile: +40724020281
Pippa Gallop
CEE Bankwatch Network
E-mail: pippa.gallop@bankwatch.org
Mobile: +385 (0)99 755 9787
