A Just Transition Fund for the Western Balkan countries

Report    |    11 January 2022

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The EU’s Just Transition Mechanism will mobilise more than EUR 100 billion in investments over the period from 2021 to 2027 to help countries shift their energy sources from fossil fuels to more sustainable ones. Part of this Mechanism is the Just Transition Fund, EUR 17.5 billion for citizens and workers in the regions impacted the most by this economic transformation. The Western Balkans (Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia) will also be affected by this transition; however, there is currently no fund established to help them end their reliance on coal and address the social and economic impacts of such a change. It is of utmost importance to design, as early as possible, a Just Transition Fund for the Western Balkans.

This report aims to design a fair allocation method for such a Fund, taking into account the magnitude and urgency of the transition challenge for each of the six countries in the region. It provides projected allocations based on different coal phase-out scenarios and offers recommendations for decision makers in the Western Balkans and European Commission.