The economic slow-down caused by the pandemic will aggravate the existing stress in some regions, especially those relying on lignite, coal and peat as their main economic activity. This policy contribution examines the benefits of replacing coal with renewable energy and how efficient and effective use of Covid-19 recovery funds can give real meaning to the ‘just transition’ concept if they focus on tangible progress to the benefit of the regional, national and EU economy while improving the environment and implementing the European Green Deal.
Key arguments this policy contribution discusses:
- For coal regions, the European Commission needs a regional place-based approach that builds on the ‘targeted approach’ of the European Green Deal while identifying urgent actions.
- Member states must reinforce regional strategies for coal regions in light of the recovery measures and the European Green Deal for the next multiannual financial framework 2021-17, taking account of the transition towards a more sustainable and lower carbon economic structure.
- Appropriate EU instruments should be combined in a complementary way to restructure the economies of the regions by developing low-carbon power and other carbon-saving solutions, using the know-how and infrastructures in place.
- Solid strategies to address the transition costs that creating an investment-friendly economic environment should be devised to build up self-sustainable activities and avoid subsidy dependency. The opportunities offered by InvestEU should be used as funding leverage to attract large-scale new industry investment