European Commission approves BGN 2.3 billion support for Stara Zagora, Kyustendil and Pernik coal regions

The European Commission has approved a grant under the Just Transition Fund under the Development of Regions Programme 2021-2027 in the amount of about BGN 2.3 billion for the coal regions of Stara Zagora, Kyustendil and Pernik, as well as municipalities adjacent to Stara Zagora.

The government's priority now is to ensure that these already approved funds reach the regions as quickly, efficiently and transparently as possible, and are expected to preserve and create more than 15,000 jobs.

The approved funds over the next six years will finance activities to improve mining sites for industrial use, support workers following skills mapping, fund energy efficiency with a focus on vulnerable households, develop industrial parks and zones, develop component manufacturing and renewable electricity, and support the diversification of the economy through new businesses.

The Stara Zagora region will also support investments by large enterprises, with over 20 companies having expressed preliminary interest so far.

The transparency of the procedures will be ensured through the inclusion of stakeholders in regional sub-committees to monitor the programme. Financial support for all projects will be subject to detailed expert evaluation as part of open competitive procedures.

The Government has secured the support of some BGN 2.3 billion after preparing, submitting and, after further negotiations, finalising the territorial just transition plans within the timeframe foreseen under European legislation.

It should be recalled that about BGN 190 million for the three regions have already been lost due to inaction on these plans in the second half of 2022, despite the projects being prepared. The plans were developed at an accelerated pace, in dialogue with stakeholders, including social partners, mine and combustion plant operators and the general public in the affected regions. They reflect the current investment intentions of the operators, operating on a market basis without state restrictions, and enable regions and people to cope with the social, labour, economic and environmental impacts of the transition.

The plans are in line with the European Union's 2030 energy and climate goals, including to achieve a climate-neutral Union economy by 2050 based on the Paris Agreement.