SAVINJA-ŠALEŠKA COAL REGION
SAŠA's Just Transition
In line with the Paris Agreement, which commits nearly 200 countries to limiting climate change, European Union (EU) member states have adopted the Green Deal to ensure Europe’s climate neutrality by 2050 and reduce greenhouse gas emissions by at least 55% compared to 1990 levels by 2030.
These climate and energy targets cannot be achieved without accelerating the phase-out of one of the main sources of greenhouse gas emissions – coal – which may have negative effects on both the economy and other areas in coal-mining regions. The EU has therefore established a just transition mechanism to provide financial and technical support to coal regions.
In 2022, Slovenia adopted a national strategy for phasing out coal and designated the Zasavje and Savinjska-Šaleška (SAŠA) regions as coal regions to be restructured in accordance with the just transition principles.
What is the SAŠA region?
The SAŠA region is part of the Savinjska statistical region and covers an area of 10 municipalities: Solčava, Luče, Ljubno, Rečica ob Savinji, Gornji Grad, Nazarje, Mozirje, Šmartno ob Paki, Šoštanj, and the Municipality of Velenje. In terms of the intensity of socio-economic and environmental challenges, the region is divided into a narrower coal mining area (Velenje, Šoštanj, and Šmartno ob Paki) and a broader coal mining area (Solčava, Luče, Ljubno, Rečica ob Savinji, Gornji Grad, Nazarje, Mozirje).
strategic objectives
Strategic Objectives for a Just Transition and Planned Outcomes
A just energy transition for the SAŠA region:
- A redeveloped energy locality using the best available technologies, which will enable the restructuring of the regional economy and the decarbonisation of the region;
- Renovated district heating systems;
- A higher share of renewable energy production and consumption in the region, including storage;
- Lower energy consumption in all sectors.
Jobs and skills for the adequacy and sufficiency of skilled workers
Towards green transformation in the areas of renewable energy production and storage, sustainable construction and energy efficiency, circular economy, water resource management, and sustainable mobility, resulting in a higher proportion of participants:
- Workers who have completed training and qualified;
- Workers who are employed after the end of the cooperation;
- Workers who are enrolled in education or training after completion.
Sustainable, flexible, and diverse economic development:
- Increased productivity/added value in the region due to the transition to Industry 4.0 and digitisation;
- The region is establishing itself as a hub for research, development, and innovation in sustainable low-carbon circular solutions;
- Established circular economy models for greater resource self-sufficiency in the region;
- A greater number of foreign/domestic investments in the region;
- Restructured Premogovnik Velenje and Termoelektrarna Šoštanj.
Affordable and Sustainable Housing
- preserving the existing stock of public rental housing
.
In line with the four strategic objectives listed above, the TJTP defines the types of operations intended to achieve the expected results.
A just energy transition for the SAŠA region:
- Renovation of the district heating system to provide an affordable source of energy for heating and cooling while maintaining air quality;
- Measures to improve energy efficiency in the economy;
- Increasing production capacity for reliable electricity generation from renewable energy sources;
- Production of energy from renewable energy sources.
Jobs and skills for all:
- Enhanced implementation of high-quality and accessible learning (with an emphasis on strengthening the key competences of students and professionals) and an inclusive educational environment across the entire vertical spectrum (from kindergartens to higher education), as well as the digital transformation of the school environment;
- Lifelong career guidance and training for the unemployed and job seekers;
- Introduction of circular content into the education system.
Sustainable, flexible, and diverse economic development:
- Investment in research, development, innovation, digitisation, and production capacity in small and medium-sized enterprises;
- Upgrading the start-up ecosystem and promoting companies with rapid growth potential, including economic business infrastructure.
Affordable and Sustainable Housing
- preserving the existing stock of public rental housing
while maintaining the living conditions of residents in apartments owned by PV and TEŠ, and increasing the share of public rental housing in the coal-mining region.
defined management mechanisms
The SAŠA Development Agency is taking action in the process of a just transition in two roles
The TJTP SAŠA defines management mechanisms, which state, among other things, that the SAŠA Development Agency plays two roles in the just transition process: operating the SAŠA Just Transition Centre and co-managing the Just Transition Fund.
operation
Center For a Just Transition: SAŠA
co-management
Fund For a Just Transition: SAŠA
A KEY TOOL
What is the Just Transition Mechanism?
As part of the European Green Deal, the European Commission has established a just transition mechanism, through which approximately EUR 55 billion will be mobilised over the 2021-2027 period to mitigate the socio-economic consequences of the transition in the most affected regions, with the aim of achieving the EU’s climate neutrality goal in an effective and fair manner.
The just transition mechanism consists of three pillars:
- The Just Transition Fund (JTF) is a new financial instrument under cohesion policy to support areas facing major socio-economic challenges due to the transition to climate neutrality. The JTF primarily provides non-repayable funds, with EUR 19.2 billion expected to mobilise EUR 25.4 billion in investments.
- The dedicated scheme under the InvestEU programme is the second pillar of the mechanism and is primarily intended for private investment. The InvestEU programme supports a wide range of investments, from energy and transport infrastructure to economic diversification and social infrastructure. The scheme will provide loans that are expected to generate EUR 10-15 billion in investments at the EU level.
- The third pillar of the mechanism consists of public sector loans provided by the European Investment Bank (EIB). For investments in the public interest EUR 1.5 billion in non-repayable funds from the EU budget will be available, combined with EUR 10 billion in loans from the European Investment Bank, which should mobilise EUR 25-30 billion in public investment.
The Just Transition Fund will mitigate the socio-economic costs of the climate transition and support economic diversification and restructuring in coal regions. This means supporting productive investments in small and medium-sized enterprises, business start-ups, research and innovation, environmental remediation, clean energy, upskilling and reskilling of workers, support for job seekers and active participation in job search programmes, and the transformation of existing carbon-intensive plants, provided that the investments result in significant emission reductions and job protection.
Approximately EUR 250 million will be available from the JTF for the Zasavje and SAŠA regions, of which EUR 173.9 million will be allocated to the SAŠA region. Part of the funds, totaling EUR 140 million, must be used by the end of 2026, which means that projects must be completed by mid-2026. The remaining funds, like other cohesion funds, can be used until the end of 2029.
STRATEGIC DOCUMENT
SAŠA Regional Just Transition Plan
The SAŠA Territorial Just Transition Plan (TJTP SAŠA) defines the process of a just transition in the SAŠA region and provides an assessment of the economic, social, and other impacts of a just transition in the SAŠA coal-mining region. It was developed on the basis of the National Strategy for Coal Phase-out and Restructuring of Coal-Mining Regions in accordance with the principles of a just transition.
The document presents development needs in the fields of energy, human resources development, the economy, and spatially and environmentally degraded areas.
STRATEGIC DOCUMENT
Territorial Just Transition Plan for Coal-Mining Regions Officially Submitted to the European Commission
The Government Office for Development and European Cohesion Policy is 28. 10. 2022 It officially submitted to the European Commission the Program for the Implementation of European Cohesion Policy 2021–2027, as well as regional plans for a just transition for both coal-mining regions: Zasavje and Savinja-Šaleška. The regional plans outline measures to address the socioeconomic challenges resulting from the transition to the Union’s 2030 energy and climate targets and a climate-neutral Union economy by 2050, which will be supported by the Just Transition Fund, with a total value of 249 million EUR.
Territorial Just Transition Plan
TJTP SAŠA 3.0
Appendix 1
Labor Market – Gap Analysis
Appendix 2
The "polluter pays" principle
Appendix 3
Draft Transition Plan and Identification of the Most Affected Areas
Appendix 4
Planned Types of Operations – Flagship Projects (brief description)
Appendix 5
Planned Types of Operations—Productive Non-SME Investments
Appendix 6
Planned Types of Operations – Synergies and Complementarity
Appendix 7
List of Abbreviations
Appendix 8
ML for Program-Specific Indicators