Kolodvorska cesta 2, 1410 Zagorje ob Savi, Slovenija 
info@pravicni-prehod-zasavja.si
One of the priorities of the new program of the European Cohesion Policy 2021–2027 is to focus on a green, low-carbon Europe, which will entail striving for a green, cleaner, and climate-neutral European Union. There are currently 12 countries with a total of 41 coal mining regions in the European Union directly employing 185,000 people in coal mining and an additional 53,000 people employed in coal (thermal) power plants. All these coal mining regions are facing the same issues, such as a lack of highly qualified workforce, deindustrialisation, and high labour costs that prevent them from utilising all the advantages of the changes in industrial production. What is more, the European Union has undertaken to establish a climate-neutral economy in accordance with the Paris Agreement, which includes gradually phasing out the use of coal for energy production.
This means coal mining regions will have to be economically restructured, otherwise they face suffering negative social consequences and a decline in economic activity due to the phase-out of coal. Some regions have not succeeded in restructuring the economy after the phase-out of coal mining activities and have subsequently had to face said consequences. All these reasons drove the European Union to set up the Just Transition Mechanism, with an aim to alleviate the social and economic consequences of the transition to a climate-neutral economy, which must be implemented in the fairest manner possible.
The Just Transition Mechanism is comprised of three pillars
01
JUST TRANSITION FUND
02
DEDICATED SCHEME UNDER THE INVEST EU PROGRAMME
03
PUBLIC SECTOR LOAN FACILITY PROVIDED BY THE EUROPEAN INVESTMENT BANK
The first pillar of the mechanism is the Just Transition Fund, which offers applicants grants. The total budget of the Fund at the EU level is projected to be about €17.5 billion. €. Of that, Zasavje will receive an estimated €74 million. €. The grants from the Fund will be financed from the EU budget for the period 2021–2027 as well as from the Next Generation EU facility. The financing level was set according to the development level of the region in which the projects are to take place. This was estimated to be up to 85% in Zasavje. The fund allocation will also take into account the rules on national aid. The beneficiaries of the Fund are both entities governed by public law (public institutions, public agencies, municipalities) and entities governed by private law (SMEs and large companies).
The dedicated scheme under the InvestEU programme makes up the second pillar of the mechanism and is intended primarily for private investments. 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 projected to create between €10–15 billion of investments at the EU level. (mostly private) investments
The third pillar of the mechanism are public sector loans provided by the European Investment Bank. €1.5 billion will be made available for investments in the public interest. The EU budget will provide €1.5 billion in grants, combined with €10 billion in loans from the European Investment Bank, to mobilise between €25–30 billion. € javnih naložb. he facility will be available exclusively to public entities and will support projects that do not generate a sufficient flow for commercial financing from their own funds.
The funds from the third pillar of the JTM can be used to support especially those actions that will contribute to:
01
JUST TRANSITION FUND
02
DEDICATED SCHEME UNDER THE INVEST EU PROGRAMME
03
PUBLIC SECTOR LOAN FACILITY PROVIDED BY THE EUROPEAN INVESTMENT BANK
The first pillar of the mechanism is the Just Transition Fund, which offers applicants grants. The total budget of the Fund at the EU level is projected to be about €17.5 billion. €. Of that, Zasavje will receive an estimated €74 million. €. The grants from the Fund will be financed from the EU budget for the period 2021–2027 as well as from the Next Generation EU facility. The financing level was set according to the development level of the region in which the projects are to take place. This was estimated to be up to 85% in Zasavje. The fund allocation will also take into account the rules on national aid. The beneficiaries of the Fund are both entities governed by public law (public institutions, public agencies, municipalities) and entities governed by private law (SMEs and large companies).
The dedicated scheme under the InvestEU programme makes up the second pillar of the mechanism and is intended primarily for private investments. 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 projected to create between €10–15 billion of investments at the EU level. (mostly private) investments
The third pillar of the mechanism are public sector loans provided by the European Investment Bank. €1.5 billion will be made available for investments in the public interest. The EU budget will provide €1.5 billion in grants, combined with €10 billion in loans from the European Investment Bank, to mobilise between €25–30 billion. € javnih naložb. he facility will be available exclusively to public entities and will support projects that do not generate a sufficient flow for commercial financing from their own funds.
The funds from the third pillar of the JTM can be used to support especially those actions that will contribute to:
1
A better connectivity of the region in particular in sectors/areas to boost public transportation; infrastructure and encouraging soft measures for developing sustainable (local) mobility; development and modernisation of regional connections for the purpose of economic growth; active mobility; etc. Among the key project recognized by the stakeholders in the region is the reconstruction of the (regional or main) road Zidani Most–Hrastnik, which will ensure that the region is connected to other regional centres and enable the region to connect to the planned third development axis, which currently constitutes an obstacle to the diversification of the economy. The projected reconstruction is projected to be executed in phases and is also projected to receive grants from Pillar III of the Just Transition Mechanism. Stebra mehanizma za pravični prehod.
2
Decarbonisation of the region, in particular in the following sectors/areas: effective energy use in all sectors, renewable energy sources; encouraging self-sufficient local communities; constructing storage capacities for excess energy (including using green hydrogen); digitalisation and the establishment of smart energy infrastructure; pertinent training and education; urban renewal and regeneration, soil and ecosystem regeneration and decontamination, etc.
The disbursement of funds from the Just Transition Mechanism is defined in the Territorial Just Transition Plan for the Zasavje Coal Region, which was passed in late 2022. The territorial plan is a programme document laying out the four areas of the restructuring of Zasavje: energy, economy, improving the region’s connectivity, and human resources. Most of the operations will be funded by public procurements, but some operations will also be funded through the Direct Operational Clearance instrument. The Territorial Just Transition Plan for the Zasavje Coal Region is available here.
