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IETO : inclusive energy transition in Southeast Europe as an opportunity
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Introduction The purpose of this analysis is to determine the potential for and opportunities connected to an inclusive energy transi­tion in southeast Europe. This report gives an introductory overview of energy transition in the six Western Balkan countries and three EU Member States Romania, Bulgaria and Croatia with a strong emphasis on the inclusiveness of the process. It begins by explaining different aspects of the concept of inclusive energy transition and outlining the EU policy context. It then takes a country-by-country look at the situation and shows the potential for involvement of the broader public in the process, giving conclusions and recom­mendations both per country and overall. The report is based on the authors practical experience and research, but also on interviews with expert stakehold­ers carried out by DOOR in late 2020 and early 2021, which are described in the accompanying document Inclusive en­ergy transition in Southeast Europe: Report on semi-struc­tured interviews. While this report identifies certain groups of people as par­ticularly in need of being included in the energy transition, including those living and working in coal regions and those suffering from energy poverty, it does not look into issues such as gender and youth inclusion in the energy transition, mainly due to a lack of information available. In any case, the transition is at such an early stage in most of the countries that even very basic steps would be useful at this stage, though it would be useful to consider how to build in under-represented groups participation from the very beginning. the success of the policy as well as feeling its benefits. En­suring inclusiveness is a much greater challenge than the technical aspects of energy transition, as it strikes at the core of governance and how decisions are made. Broadly speaking, we have identified four different ways in which the wider public can and must be included in the process, and in the country sections we will briefly assess their pro­gress in these areas: JUST TRANSITION Just transition, according to the International Labour Organ­ization, means greening the economy in a way that is as fair and inclusive as possible to everyone concerned, creating decent work opportunities and leaving no one behind. 1 Itinvolves maximizing the social and economic oppor­tunities of climate action, while minimizing and careful­ly managing any challenges including through effec­tive social dialogue among all groups impacted, and respect for fundamental labour principles and rights. 2 The concept is still relatively new in southeast Europe and has so far mainly been used to refer to the process of plan­ning the redevelopment of coal-producing regions, as they employ large numbers of people in the coal mines. But in the coming decades it is not only those in the coal industry who will be affected, but also those in the oil and gas sec­tors, and all sectors dependent on these fuels, including the heating, transport and industrial sectors. INCLUSIVE ENERGY TRANSITION Energy transition should be understood as both the phas­ing-out of fossil fuels and the phasing-in of renewable ener­gies. Such a process is not necessarily inclusive per se, as re­newable energies can be large-scale, centralised and/or im­posed on communities just as fossil fuel technologies are. In­clusive energy transition should be understood as the devel­opment of an energy-efficient, renewables-based energy system based on energy democracy and the involvement of the public. This report will try to show as much as possible the potential for involvement of different stakeholders in the process of energy transition, as well as briefly presenting the current state of the transition in these countries. Inclusive energy transition includes the concept of just tran­sition but also goes beyond it, as it does not focus solely on the process of transition of workers and communities from fossil intensive industries toward sustainable ones, but en­compasses the overall transition process towards renewable and sustainable energy. Here we will concentrate on coal regions because this is the most pressing issue at the moment. Planning for a just tran­sition is already late in locations like Kichevo, North Macedo­nia, where the Oslomej coal plant rarely operates and the mine has already stopped production, or Pljevlja in Monte­negro, where the coal power plant is currently operating il­legally. 3 A just transition process in coal mining regions needs to take into account four factors, all of which present a major chal­lenge in southeast Europe, for reasons that are explained in the country profiles. They need to be based on comprehensive redevel­opment plans, not just piecemeal projects or train­ing. Many locations do not have these, often due to denial about the end of coal use in the region. Most jobs created should be of comparable quality to those lost in terms of pay and qualification levels. With some state-owned coal utilities offering compar­atively high wages, this is not always simple. Ensuring that the ongoing energy transition is inclusive is essential for its acceptance by the public and ultimately for its success. Households and businesses are not only the end customers for the services provided, but they can also pro­duce, store and consume energy, directly contributing to 1 International Labour Organization, Frequently asked questions about just transition, last accessed 7 November 2021. 2 International Labour Organization, Frequently asked questions about just transition. 3 CEE Bankwatch Network, Comply or Close, 7 September 2021. 7