Background information

Regulation (EU) 2021/1056 of the European Parliament and of the Council of 24 June 2021 establishing the Just Transition Fund (JTF) sets as objective of the JTF to mitigate the adverse effects of the climate transition by providing support to the most affected territories and workers. Bulgaria's Integrated Energy and Climate Plan (INPEC) for the period 2021 - 2030 is the main document that defines the objectives and measures for the implementation of the national energy and climate policy in the EU's ambition to be climate neutral by 2050.

A prerequisite for unlocking the funds (€1.178 million for Bulgaria, of which €505 million from the Multiannual Financial Framework and €673 million from the EU Next Generation Instrument) is development of Territorial Plans for Fair Transition (TPFTs) with a horizon up to 2030, in accordance with Article 11 of the Regulation. These plans concern the NUTS3 territories (regions) that will be most affected by the coal transition in the coming years. For Bulgaria the eligible NUTS3 regions are Stara Zagora (and adjacent municipalities), Kyustendil and Pernik.

Content of measure

Two specific years are marked in Territorial plans for fair transition (TPFT): 2030 and 2038. The former is associated with the reduction of emissions from coal-fired power plants, while the latter is the latest date for completion of the phase-out.

For the most affected district of Stara Zagora, TPFT states that in 2030 at least 12,000 alternative suitable jobs will need to be found in other sectors due to the reduced use of coal-fired power plants. However, it is expected that 15,000 new jobs will be created as the energy transition gradually progresses to the final decommissioning of the coal plants by 2038.

For the Pernik region, it is estimated that about 1,500 jobs in alternative employment will be needed in 2030. And 1,800 more are projected to be created by 2038.

For the region of Kyustendil, about 2,200 jobs in other sectors will be needed in the first milestone year. And by 2038 another 2,700 new jobs are expected to be created.

It has been indicated that reclamation of previously used coal sites in the three regions will be required, to which some of the new jobs will be linked.

Use of measure

The Territorial Plans for Fair Transition have been sent to the European Commission for final evaluation on 7 October 2023. All three plans foresee more green investments, retraining of those now employed in the sector, and the creation of a state-owned enterprise ("Conversion of coal areas") to employ on the same terms workers made unemployed due to plant closures.

There is also a plan for systematic work on the reclamation of the land affected, which would also provide employment for all the more than 15,000 people affected.

Target groups

Workers	Businesses	Citizens
Employees in standard employment	Sector specific set of companies	Does not apply to citizens

Actors and funding

Actors	Funding
National government Trade unions Employers' organisations EU (Council, EC, EP)	European Funds National funds National Recovery and Resilience Facility

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Consulted	Consulted
Form	Any other form of consultation, institutionalised (as stable working groups or committees) or informal	Any other form of consultation, institutionalised (as stable working groups or committees) or informal

Social partners' role in the implementation, monitoring and assessment phase:

• Social partners jointly
• Main level of involvement: Peak or cross-sectoral level

Involvement

The Economic and Social Council (ESC) has been involved in the various variations and stages of preparation and implementation of the National Recovery and Resilience Plan (RRP). Trade unions and employers' organisations were monitoring the preparation of the spatial plans very closely. During the public consultations of the Territorial plans for a fair transition, contributions from nationally representative trade unions and employers' organisations were published and discussed in front of media. The Territorial Plans are subject to mass protests and roads' blockade, organised by the trade unions.

The Confederation of Independent Trade Unions in Bulgaria (CITUB) and the Confederation of Labour "Podkrepa" and their local organisations in Maritsa East complex, the National Federation of Energy Workers of CITUB, National Trade Union Federation of Energy Workers in Bulgaria of CITUB, Federation of Independent Trade Unions of Miners of CITUB, Miners' Trade Union Federation - CL"Podkrepa", Federation "Energy" of CL "Podkrepa", miners and energy workers from the coal mining sector in the country organised a national protest rally-march under the slogan "For a clear and secure energy future of Bulgaria (19 September 2023). The road blockade lasted from 29 October 2023 until 13 October 2023 with the main demand that the territorial plans for the coal regions submitted to the European Commission should be withdrawn.

Views and reactions

Confederation of Independent Trade Unions in Bulgaria (CITUB): Following the trade union protests earlier in 2023 and the decision of the National Assembly, the draft TSPs submitted for public consultation are not linked to meeting targets to reduce CO2 emissions by 40% by 2026 compared to 2019. At the same time, the new drafts indicate an expectation of a strong reduction in coal-fired power generation by 2030, which will lead to a rapid reduction in coal mining and coal-fired power generation. The Kyustendil district spatial plan even comments on the closure of the coal plant in 2026 if zero carbon generation is not achieved, despite the National Assembly decision of 12 January 2023 identifies 2038 as deadline for the closure of coal mining.

The Economic and Social Council (ESC) expresses concerns that key energy sector reforms will be developed ahead of planned compensatory measures. Thus, the accelerated retirement of coal-fired capacity is outpacing the process of building replacement capacity, and the social effects on affected employees are being directed towards the wishful thinking measures envisaged in Territorial Plans for Fair Transition (TPFT). The full liberalisation of regulated market is planned in a timeframe where measures to protect energy vulnerable consumer groups will not be developed and preparation for other consumers will be insufficient.

Employers support compliance with European commitments. They also support anything that would give energy security and guarantee energy supplies.

Sectors and occupations

This case is not occupation-specific.

Sources

• 27 February 2020: Bulgaria's Integrated Energy and Climate Plan (INPEC) (www.me.government.bg)
• 14 September 2023: Opinion on a project of Territorial plans for a just transition (knsb-bg.org)
• 02 October 2023: Government Publishes Final Territorial Just Transition Plans of Stara Zagora, Pernik, Kyustendil Regions (www.bta.bg)
• 02 October 2023: Territorial plans: Around 16,000 alternative jobs will be needed in the three areas in 2030 (btvnovinite.bg)
• 03 October 2023: The Economic and Social Council adopted a resolution on the National Plan for Recovery and Sustainability and the Territorial Plans for a Just Transition (esc.bg)
• 03 October 2023: ECS opinion about RRP and TPFT (esc.bg)
• 04 October 2023: Position of CITUB (knsb-bg.org)
• 04 October 2023: Shteryo Nozharov: these Thermal Power Plants will difficultly survive on a market principle (www.bia-bg.com)