ESC: PREPARATION OF THE TERRITORIAL PLANS FOR A FAIR TRANSITION FOR TRANSMISSION TO THE EC IS LACKING SIGNIFICANTLY

The Plenary Session of the Economic and Social Council adopted an opinion on "Territorial plans for a fair transition - objectives, challenges and expected effect".

In the opinion, ESC acknowledges that the Fair Transition Mechanism (SME), as part of the European Green Pact, was created in order to ensure that no person or region is abandoned in the transition to a climate-neutral economy. Europe has set up a fund to provide targeted support for the mobilization of around € 55 billion for the period 2021-2027 in the most affected regions in order to mitigate the socio-economic impact of the transition.

ESC notes that when discussing a fair energy transition, it is necessary to draw conclusions from the current price crisis in energy markets, which adds its weight to the actions already taken to accelerate decarbonisation and taking into account the economic recovery from the COVID pandemic. The European Union, like many other regions of the world, is facing a sharp rise in energy prices. ESC recognizes that in preparing guidelines to deal with the negative consequences of the sudden rise in prices, the EC insists on not allowing fragmentation of the European single energy market, nor to jeopardize investment in the energy sector and the ecological transition.

The Council notes with concern that the preparation of territorial plans for transmission to the EC is lagging far behind. In this regard, it is necessary to accelerate the development of plans by the Ministry of Energy for the three coal regions, clearly setting out the objectives for 1) taking comprehensive measures to prevent a demographic crisis in the affected regions; 2) maintaining and improving the conditions for employment; 3) gradual industrial reorientation in the affected regions; 4) providing support for educational and research programs aimed at development in the affected regions.

ESC notes with regret that Bulgaria missed the opportunity to receive funding from the Modernization Fund at the first announced admission in 2021 and emphasizes the need to accelerate the development of a National Investment Plan for funding from the Fund.

The full text of the opinion of the Economic and Social Council can be found at www.esc.bg.