Achieving carbon neutrality can negatively impact the economy and residents of coal-dependent regions and those whose economies rely on fossil fuel extraction and processing. Therefore, all these communities require a just transition – economic diversification that considers the needs of all residents, especially the most vulnerable. This applies not only to coal communities but also to those dependent on other industries. Thus, a just transition should not be just one step but a comprehensive policy for countries planning to achieve zero emissions.
How different countries incorporate just transition into their national policies, particularly in their National Energy and Climate Plans (NECPs), was discussed at the event “Untapped Potential: The Place of Just Transition in NECPs,” co-organized by the NGO Ecoaction during the COP29 conference in Baku.
The adoption of the NECP – a document outlining a country’s approach to achieving its climate goals – was necessary for Ukraine as part of its European integration. It was developed and adopted in record time in the summer of 2024. According to this Plan, Ukraine aims to reduce greenhouse gas emissions by 65% by 2030 compared to 1990, increase the share of renewable energy sources in final energy consumption to 27%, and diversify energy suppliers.
Our NECP also reaffirms 2035 as the year for complete coal phase-out, which will directly impact Ukrainian coal regions and makes just transition even more urgent. To facilitate it, the Plan includes the development of a State Target Program for the Just Transition of Coal Regions by 2030.
“We understand that we should transfer to green technologies and that it can create new jobs for women, veterans, vulnerable categories of population. And as a government we also understand that just transition is much broader than coal regions. So, we want to use the results of pilot projects and our State Program to expand it to other targets of just transition,” – emphasized Deputy Minister of Economy of Ukraine Andrii Teliupa in his speech.
During the event, representatives from other countries shared their experiences in integrating just transition policies into NECPs. Joanna Pandera, President of the research center Forum Energii (Poland), noted that Poland can`t be considered a successful example. The country is heavily dependent on coal, but the share of this fuel is decreasing sharply due to both climate and economic factors. Therefore, the issue of transformation is particularly acute here. However, most measures were aimed at subsidising the coal industry, which became a burden on society.
Agim Mazreku, Climate and Energy Advisor to the Government of Kosovo, noted that local residents also heavily rely on coal due to significant lignite deposits. Understanding this, the government planned transformation policies and measures that would benefit citizens directly – at the household or small and medium-sized business level. For example, subsidising the installation of solar stations or implementing energy efficiency measures, they tried to invest in the energy efficiency of public buildings to reduce electricity demand.
A key challenge in Kosovo is that most mine workers are nearing retirement age. Therefore, preparing new qualified workers became crucial, including supporting startups, creating training centers, and reorienting university programs to train renewable energy engineers. Thanks to such policies, the number of companies in the solar energy sector has tripled over the past three years.
Monika Figaj, Climate and Just Transition Expert at the Energy Community Secretariat, also emphasised that just transition should be a comprehensive policy and not limited to coal communities. Governments submit their NECP drafts for review by the Energy Community, and in these drafts, a certain trend is noticeable: in most cases, just transition, which is a mandatory part of the NECP, is defined as a separate activity.
“Just transition is present in most of the NECP drafts we’ve seen. But in most cases, it was a separate story told alongside the NECP. And this is very tricky because in order to implement a just and sustained transition that goes on and is not reversed with time it should be integrated into the core of the national energy plans and long-term strategies,” emphasized Monika Figaj.
Among other recommendations, Ms. Figaj also noted that just transition should not be limited to employment issues. Often, a mine, thermal power plant, or other coal-dependent enterprises are the main employers in the region, so their disappearance will affect the population structure, regional development, and energy poverty. These aspects should also be considered. Additionally, plans often do not account for the fact that just transition provides space for innovation – searching for new ideas and solutions.
The event was co-organized by Ecoaction, the Energy Community Secretariat and CEE Bankwatch Network at the Ukraine Pavilion at COP29 in Baku.