A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia TABLE OF CONTENTS Acronyms 4 Preamble 5 Executive Summary 9 I. Introduction 21 Background 22 Scope of Work 23 Methodology 24 II. Western Macedonia: Regional Overview, Transition Impacts and Opportunities 31 The Economy and People 32 Transition Impacts 40 III. A Road Map for Transition 51 Pillar One Government Systems 53 Pillar Two People and Communities 95 Pillar Three Repurposing Former Mining Lands and Other Assets 103 IV. Conclusion 117 Tables and Graphs 120 End Notes 122 Bibliography 124 3 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia ACRONYMS ALMPs Active Labor Market Programs LURA Land Use Repurposing Assessment AC Act of the Cabinet M&E Monitoring & Evaluation ARC Appalachia Regional Commission MoLSA Ministry of Labor and Social Affairs CSO Civil Society Organization NECP National Energy and Climate Plans DG Energy Directorate General for Energy NEET Neither in Employment, Education DRT Demand-responsive Training nor Training EBRD European Bank for Reconstruction NGO Non-Governmental Organization and Development PISA Program for International Student EC European Commission Assessment EIA Environmental Impact Assessment PLMPs Passive Labor Market Policies EIB European Investment Bank PPC Public Power Corporation ERDF European Regional Development Fund PPP Public / Private Partnerships ESF+ European Social Fund Plus RES Renewable Energy Sources ESIA Environmental and Social Impact RPC Regional Permanent Conferences Assessment S.A. Société Anonyme EU European Union SC Steering Committee FSPV Floating Solar PV SME Small and Medium Enterprises GDR German Democratic Republic SPV Special Purpose Vehicle GIS Geographic Information System SRSS Structural Reform Support Programme GRM Grievance Redress Mechanism SSP Special Spatial Plan GSGE General Secretariat for Gender Equality STEM Science, Technology, Engineering and GVA Gross Value Added Mathematics ICT Information and Communications TOC Total Organic Content Technology TOD Total Oxygen Demand JTF Just Transition Fund TOR Terms of Reference LRM Land Repurposing Methodology TVET Technical and Vocational Education LRMP Land and Resource Management Plan and Training 4 PREAMBLE 5 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia PREAMBLE As detailed in the World Bank’s 2018 publication, Managing Coal Mine Closure: Achieving a Just Transition for All,1 the world is undergoing a major, global energy disruption whereby coal is losing its commercial competitiveness and where populations, mainly urban-based, are demanding cleaner air. While the rate- of-change of energy transitions in coal regions varies depending on local socio-economic conditions, today most coal regions are on a common transition pathway: one brought about by a quickly shifting set of economics within the global energy sector, where cleaner energy and digital technologies are eroding the commercial viability of coal. In most instances, this is occurring regardless of low-carbon energy policies being in place.2 In short, the ‘economics of coal’ is an important dimension to the debate on energy transition and one that is less discussed. As the global energy transition progresses, regions reflect national drivers. In discussing with stake- that produce and consume coal face unique and holders, and in looking at the data, it emerged that in complex challenges. They must plan and prepare for order to succeed at this energy transition, a contem- a transition away from coal in a transformation that will porary and more dynamic vision of the region needs last for years. Given these unique challenges, targeted to be built; one that is thriving and forward-looking, assistance to coal regions is needed to ensure a more underpinned with good jobs in economic sectors just transition for workers and communities into a very that are empirically shown to be promising. It is a story different looking future. Such targeted assistance whose success will require inspiring and thoughtful begins with a road map, a strategy, that charts the leadership who can encourage a reinvention of the pathway to be taken and markers along the horizon. region itself. It is a story about bringing people along As this final report proposes, such planning requires in a radical, structural transformation of the region’s thinking big and differently. economy and identity. As this report repeatedly signals, the region is an incredibly strong position to However, no matter the global nature of the challenge, build off its natural, physical, and human capital; and successful transition solutions must begin locally these elements should be considered in their entirety and look well beyond simply the question of energy. right from the start. This was found to be true in the case of Western Macedonia where for quite some time the region has Importantly, the people of the energy municipalities been characterized by outflows, engaged in a vicious (as they are referred to) of Western Macedonia have cycle of disinvestment and population decline. Some been thinking about a life after lignite for some time. of the reasons behind the region’s decline have a rela- In fact, when the World Bank started its engagement tionship to the predominance of the lignite- and ener- here in February 2019, already several reports, strat- gy-producing economy; while many other reasons egies, and interest groups had coined the phrase 6 ‘post-lignite era.’ As embryonic as these early writ- tion of extensive technical detail on which these find- ings may have appeared to outsiders, they signaled ings stand. Following the Executive Summary, the a growing social dialogue (and in more recent years report is organized into three main sections followed a converging consensus) that a future beyond lignite by a conclusion. Section 1 is the introduction which needed to be imagined in this region of Greece.3 provides details on the scope of work, the full meth- However, based on extensive interviews during the odology, the team composition, and the summary of team’s work, it is fair to say that few anticipated that the 11 standalone reports. From there, the reader can this ‘post-lignite era’ would in fact so rapidly arrive on move to Section 2 which presents a consolidated Western Macedonia’s doorstep. analysis of the region’s constraints and opportunities for comprehensive transformation. Section 3 details The Executive Summary that follows has been the findings and recommendations, culminating prepared for a wide readership to highlight the main in the Transition Road Map. The conclusion leaves findings of the work and their recommendations as the reader with an appreciation of the future of coal presented in the Transition Road Map. The Executive sector transition and the potentially inspiring role Summary allows someone to grasp the essence of Western Macedonia, and Greece in general, could the work, without being encumbered by a presenta- play in this global change. 7 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia 8 EXECUTIVE SUMMARY 9 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia EXECUTIVE SUMMARY The Executive Summary presents the principal findings of a comprehensive, multi-disciplinary research project examining core topics for a post-lignite transition in Western Macedonia. Eleven standalone outputs4,5 delivered by a 12-person technical team, and representing 8 nationalities, form the analytic foundation of this Executive Summary and the full report which follows. To orient the reader, the eleven outputs are introduced here in a cursory way. Section 1 of the main report contains an elaborated methodology sub-section where the range of research questions and methods used are presented. TABLE 1 Summary of Research Pillars and Questions Pillar and Sub-component Key Research Question(s) Government Systems Governance Structure Based on international best practice, and past practice in Greece, what might be the best governance structure for planning and implementing a comprehensive transition away from coal in Western Macedonia? Outline for Regional Strategy Through which sectors and mechanisms can Western Macedonia build a diversified, strong economy for a post-lignite era? And how can this strategy complement ongoing programs and initiatives? Public / Private Partnerships Is there a need to create a PPP for Development? If so, what would an appropriate PPP (PPP) to Catalyze Development model look like? Stakeholder Engagement Who is to be impacted by the transition and how to build robust engagement with these groups? People and Communities Assess Workforce What are the predominant characteristics of the existing workforce which is to be transitioned? Repurposing Land and Assets Review Legislation Is there scope to apply repurposing strategies to PPC lands? If so, how? Propose Repurposing Uses for What are some of the most efficient, and innovative, ways to repurpose existing PPC Post-mining Lands and Assets post-mining lands and assets? Develop Methodology for Is there a way to apply an objective, low resource intensive, and evidence-based Assessing Repurposing Post- methodology to assessing post-mining land use? If so, what would this be? mining Land and Asset Options 10 Main Findings (S.A.) who would have responsibility to oversee implementation of the transition plans and their corresponding programs. The United States case Pillar 1: Strengthening Government Systems study—the Appalachian Regional Commission to be precise—provides a compelling rationale for the Transition Phases and Corresponding use of independent agencies in tackling multi-fac- Governance Structure eted and complex problems of national importance. Furthermore, the track record in Greece of the use of Planning and executing a well-managed transition in independent operators for projects of national impor- Western Macedonia, as in any other coal-dependent tance provides precedence for an S.A. to be applied region, will be a multi-year and multi-level process. In a in this case.9 In parallel to this operator, the SPV for first phase (Phase 1), governance structures should have PPC lands would continue to operate but would coor- multi-level involvement from local, regional, and national dinate actions with the national programs established level authorities and other stakeholder groups in order and operational in Western Macedonia. to ensure sufficient buy-in on plans is gained from those most affected by the mine and plant closures.6 In Phase 1, Western Macedonia would establish a Regional Transition Committee building on the Given the policy implications of transition, a national example of the Regional Permanent Conferences body is best placed to coordinate a Phase 1 planning (RPCs) in the Czech Republic. This committee would process. For Greece, this would be the “Governmental be responsible for soliciting projects and ideas for Committee for the Just Development Transition to the inclusion in the eventual operational programs. The Post Lignite Era of the Region of Western Macedonia Committee would be the main interlocutor with and the Municipality of Megalopolis of the Region the Technical Secretariat in Phase 1 and the S.A. in of Peloponnese.”7 This Committee is responsible for Phase 2. The Committee would be presided by overall coordination and decision making on planning the Governor’s office. The existing Coal Regions in and implementation of the country’s Just Development Transition Working Group for Western Macedonia Transition Plan (referred to commonly as the Master could play a secretariat function to this committee in Plan) and its related Territorial Just Transition Plans. Under support of the Governor’s office. this Committee, a Technical Secretariat, as established by the government in May 2020, is best placed to lead A summary of the phases is found below. on the planning, supported by experts outside the civil service. Given the particularities of the transition in Western Macedonia, whereby PPC owns a significant portion of lands that could be put towards collective FIGURE 1 use for transition projects, it is also recommended that Phase 1 and 2 of the Greek Lignite Transition a specific process be established to determine land Phase 1: Planning Phase 2: Implementation use scenarios, and that this process be managed by a Special Purpose Vehicle (SPV).8 The roles and respon- Until end of 2021 Until end of 2028 sibilities of the SPV would include but may not be Based on extensive Operational program limited to: undertaking the land use planning exercise, analysis of the region’s Additional repurposing permitting for a Special Spatial Plan (SSP), interfacing economy and labor market work on PPC lands with potential investors who would bring businesses Substantial stakeholder Communications and engagement to the area under the SSP, and carrying out preliminary stakeholder engagement Master plan with cascading remediation and repurposing works. plans and programs Monitoring and evaluation Budget and financing identified In a second transition phase (Phase 2), the Technical Selected preparatory works Secretariat would be transferred to a Société Anonyme and feasibility studies completed 11 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia Broad Outline for a Regional Economic (ii) Start-up Economy Transition Pathway high- Transition Strategy lights the development of new and dynamic industries in the world economy, such as energy Whilst governments and non-state actors naturally and ICT. It is based on the notion that the region draw attention to the need to support people (partic- has a comparative advantage in the energy sector, ularly workers) during the transition, it is important while a shift from conventional energy sources to highlight that at the root of any transition strategy will create new opportunities for start-ups, spin- is the objective of structural transformation of a offs, and ‘spin-outs’ and may lead to a paradigm region’s post-coal economy. The types of sectors shift in the regional economy. Subsequently, and activities commonly found in coal region the model that will initially be applied in the economic transition strategies reflect this search energy sector could be repeated in other indus- for diversity in development interventions—ranging tries, hence leading to the transformation and from support to clean energy technologies to youth upscaling of successful non-energy activities capacity building to worker reskilling. Practically this already taking place in Western Macedonia means giving equal weight to medium-to-long term and the modernisation and diversification of the growth opportunities as to short term social protec- local economy. tion measures. (iii) Digital Region Transition Pathway focuses on In Western Macedonia, 4 transition pathways are accelerating digital transformation of the urban proposed. These pathways emphasize existing and rural areas in the region: an imperative tool attributes and assets of the region. They also redress for retaining youth and promoting economic the absence of certain enabling factors for entrepre- growth in the region. This transition pathway has neurship, creativity, and human capital to flourish. the clear aim to transform Western Macedonia In this sense, all the proposed transition pathways to the most e-connected, high-tech, futuristic are needed and are interrelated; and they reflect region in Greece by 2030. This entails an unprec- the necessary diversification required for the local edented digital revolution and the whole region economy to move away from a reliance on energy working towards this way: from the development alone to create value across multiple sectors. of an entire spectrum of new services available through the internet to intensification of Science, (i) Alternative Energy Transition Pathway empha- Technology, Engineering and Mathematics sises the utilisation of other energy sources (STEM) and robotics education in public schools. that do not include lignite for electricity and Investments would include infrastructure and heating production. It revolves around the use skills to support STEM-focused activities. of Renewable Energy Sources (RES) for energy production, the development of energy storage (iv) Green Region Transition Pathway promotes systems, and the repurposing of existing power value-addition of existing production chains plants. Due to falling costs of clean energy and makes linkages to other burgeoning sectors technologies, the region would benefit from (such as biomass and waste management). It the potential of alternative energy sources and incorporates digitization and new technologies energy storage, alongside natural gas for grid in food systems and agriculture to make farming capacity. The region’s natural and physical assets and the food industry of the region more envi- for alternative energy and energy storage include ronmentally and economically sustainable. Agri- the well-developed transmission network, post- food processing seems to be a promising sector, mining lands, the power plants which will close especially if combined with a “Beyond meat” in a phased approach, water bodies, and a work- and/or a “Food 4.0” approach that disentangles force with energy-related skills and social identity. from the standard food processing techniques and standard products, setting the foundations 12 FIGURE 2 The Four Transition Pathways Alternative Energy Green Region Transition Pathway Transition Pathway Start-up Economy Transition Pathway Digital Region Transition Pathway for what will be the norm in agricultural supply recommended that a specific process be established chains in the next decade. to determine best-land use scenarios, and that this process be managed by a SPV as outlined above. As shown below, and put forward in Section 3, the start-up economy and digital economy pathways are Second is the recommendation that a special oper- considered cross-cutting and foundational given the ator or agency be established to manage the govern- gaps in foundational skills and attributes for a robust ment’s overall operational programs for transition. As new economy to flourish in the region. described above, an S.A. would be established with the responsibility to oversee implementation of the Underpinning these four pathways, six indicative pilot transition plans and their corresponding programs. projects are proposed. Project themes range from building an alternative energy cluster to digital twinning Develop a Stakeholder Engagement Strategy of rural areas to agri-business development to circular economy businesses. The full description of the indica- The main purpose of the proposed stakeholder tive pilot projects can be found in Section 3.2. engagement strategy is to ensure informed decisions regarding the government’s plans for transition that Proposal for a Public Private Partnership (PPP) are inclusive of the views of impacted workers and Development Fund communities, industry, local and national govern- ment, private sector and financing institutions, Given that specific PPP projects are yet to be finalized donors, and non-governmental organizations, which by the government authorities for implementation, are also inclusive of particularly vulnerable groups the team focused on structures that could have an among the impacted population and interested overarching character for implementing very specific parties. Whereas social dialogue is quite mature in programs and projects for the transition. Two struc- practice in Western Macedonia and in the energy tures are contemplated, as both briefly mentioned municipalities, it is advisable that the government already in the governance structure above. seek to create stronger, official linkages between interest groups in the region and the capital. This First, given the exceptional opportunity for the transi- could take the form of a simple quarterly national tion in Western Macedonia, presented by the signifi- platform meeting that brings various interest groups cant portion of lands owned by PPC which could be together. It would provide a space for the govern- put towards collective use for transition projects, it is ment to communicate its plans and to seek feedback 13 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia and perspectives from affected stakeholders. In regions in Europe have unemployment rates below Phase 1, this task could be managed by the Technical 10% of the population10. Therefore, any employment Secretariat and be transferred in Phase 2 to the S.A. strategy will need to consider the wider picture, providing employment opportunities, training and An important aspect of the stakeholder engagement retraining for youth, long-term-unemployed, as well process would be the overall public communication as individuals affected directly and indirectly by the strategy regarding the government’s plans, and it transition out of coal. Increasing labor demand is the would be advisable to contract an external public number one challenge. relations firm to assist in development and delivery of the public communication regarding government Additional effort to gather reliable information on plans. However, the overall stakeholder engagement the discrepancy between labor supply and demand process (as an integral part of the overall approach is needed, as disaggregated information about the to transition of the government) should be managed discrepancy between supply and demand of labor internally, by the Technical Secretariat in Phase 1, and is limited. Greece hasn’t implemented a labor market by the S.A. in Phase 2. Stakeholder engagement seeks forecast survey recently. Some information is available to ensure understanding and inclusion during plan- from ad hoc reports from industry associations and ning processes. It equally promotes transparency and social partners, but generic information at the national accountability by relevant authorities. Such engage- level is not available, let alone for Western Macedonia. ment relates to a range of planning actions envisaged As a result, a complete picture of jobseekers’ barriers in the coming months—whether in the selection of to employments or the extent to which lack of a qual- projects, the eligibility and access to programs, or to ified labor force is a constraint for investment and timelines for coal mine and plant closures. job creation remains missing. Efforts are needed to generate and use labor market information in order to bridge the information and skills gaps. Pillar 2: Preparing People and Communities Already riddled with high unemployment, the social Assess the Workforce Affected by the Transition impact of the job loss and foregone employment with a View to Managing Reallocation and opportunities from the mine closures and power Reskilling of Workers plant decommissioning is expected to be substan- tial, especially along the Florina-Kozani geographic Constrained Labor Market axis. While the exact contours of the employment challenge, including its trajectory over time, will Western Macedonia faces unparalleled barriers also very much depend on the contours of the tran- when it comes to employment and growth due to its sition plans, such as the (temporary) employment steady population decline and stagnant labor market. generated in land repurposing and land reclama- Indeed, the prolonged economic crisis in Greece tion and plant decommissioning. The expansion of continues to disproportionately affect Western existing active labor market programs (ALMPs), and Macedonia which today records the highest unem- their adaptation to the specificity of the Western ployment rates of the country. Even if unemployment Macedonian context will be fundamental. has continued to fall in recent years, the current rate remains exceedingly high (27% compared to 19% Workforce to be Affected in Greece), and over the past 10 years, the abso- lute number of employed individuals fell sharply by The Kozani-Ptolemaida-Amyntaio-Florina geographic about 20,000, or about 5% of the active population. area, referred to as the ‘energy municipalities’ is where Comparatively speaking, the high unemployment rate most of the energy assets of the region are located. in Western Macedonia stands apart from the other Likewise, it is also where most people employed in the 40 EU coal regions in which most mining NUTS-II energy sector reside. Though a significant employer 14 in these four municipalities, when compared at the and various maintenance jobs to PPC. There are a regional level, mining and quarrying (NACE Rev further number of small sub-contractors, providing 2 sector B) and electricity and power generation different services to PPC, such as catering, cleaning, (NACE Rev 2 sector E) represent merely 10% of total waste disposal, which cover around 500 jobs. Most employment across the region. Of note is that total sub-contracting firms are employing predominantly jobs in mining have been declining (reflective of a older male workers with an average age of 45. These global trend due to industry-wide mechanization). are mostly technicians with low levels of education, Indeed, PPC has not hired since 2008. but high skill levels acquired through considerable work experience. Consequently, they earn relatively As of June 2020, the number of directly affected high wages, which implies that they have high reser- workers as a result of the lignite phase out is vation wages. approximately 5,200.11 This comprises full-time and seasonal workers contracted with PPC. PPC full-time pensioned staff make up altogether 3,289 of the Pillar 3: Repurposing Land and Assets total affected jobs, with 2,128 in mining and 1,161 in the power plants. Given its aging workforce, roughly Review Legislation Regarding Mine Reclamation half of its employees will reach retirement by 2023. Therefore, if no new hires happen between now and A comprehensive land repurposing program for the 2023, 1,073 full-time employees will be left in the PPC mining lands will need to closely align, interact, mines after 2023, while 511 full-time employees will and integrate with spatial planning processes having still be employed in the power plants at the end of a much wider scope than post-mining lands alone. the de-transitioning phase.12 Regardless of ownership of the PPC lands, there is inherent value in considering contiguous land Most workers still active after 2023 will consist of holdings within the broader regional transforma- technicians (1,109 persons), mostly in mines (822 tion efforts, as access to land presents a key capital persons). A smaller number of engineers will be investment opportunity available to the people of active (155 persons), and even smaller numbers of Western Macedonia. administrative and support staff (respectively 119 and 128 persons). Most of the remaining staff will Given the interests in redevelopment potential of be around 50 years old, that is people who still have the lands by a wide array of regional actors, it is the about 10 years of activity ahead of them, and who team’s recommendation that a Special Spatial Plan have rather high reservation wages. In the mines, (SSP), pursuant to article 8 of law 4447/2016, be there will also be many younger workers still active considered as the overarching planning instrument. after 2023, or 517 persons under the age of 45. The SSP is a powerful and versatile planning tool which allows for the streamlining of key environment Another section of directly adversely affected workers and social permitting steps. Of interest here is the would be the large group of temporary workers imperative that mining lands, once reclaimed and employed on annual 8 months contracts by PPC and identified for new land use, establish investment sub-contractors’ project employees, which do not quickly in the form of investment projects. Of course, enjoy job security such as PPC employees under their an SSP must conform to other Greek legislated collective agreement. In 2018, the 8-month contract planning frameworks, such as special and regional workers constitute 751 jobs, which represent an addi- spatial frameworks. An integrated plan should be tional 10%-25% of employment in the sector. Whereas, prepared by the central and regional government in addition, an approximate further 1,500 workers are for the transition and development in the post-lignite reliant solely on PPC business but are working under era, as well as a strategic plan for the restoration and sub-contractors. These sub-contractors supply trans- repurposing of the lignite mining areas. port and equipment, providing excavator, trucking 15 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia The advantage of the SSP is that a strategic mental licensing for all projects to be constructed Environmental and Social Impact Assessment in the area covered by the SSP. Specifically, this (ESIA) can be developed, and once approved, it means the preparation of an Environmental Impact streamlines and simplifies permitting processes for Assessment (EIA), opining by various civil services, individual investor projects into new alternative land public consultation and issuance of an Environmental uses. Furthermore, given the national significance of Approval of each project.13 the lignite transition in Western Macedonia, an SSP signals, by virtue of its enactment via a presidential Develop Strategic Recommendations for Repur- decree, the government’s commitment to a just tran- posing Other (Non-mined) Lands and Assets sition. A sub-recommendation would specifically be that within the framework of the SSP, the establishment As part of the methodological approach developed of industrial business parks (with specific land uses for in point 3.3 below, five strategic land use scenarios economic development in the area) take precedence, for post-mining repurposing were identified: (i) as a major component of the new land use planning energy production and storage / industrial produc- in the area, and with the purpose of speeding-up the tion / waste processing; (ii) agricultural / horticultural procedures of environmental licensing of the proj- / forestry; (iii) recreational / tourism; and (iv) office / ects contained therein. Such precedence does not research / technology parks. These scenarios define preclude the construction of major individual projects the land repurposing categories for a given post- outside the business parks. In the case of a business mining area. A land category basically means that for park, the industrial area etc. (organized “receptors” of a defined area, an optimized utilization scenario has manufacturing and business activities / planned areas been proposed based on various potential combina- as defined by Greek planning legislation) for which an tions of criteria: bio-physical and chemical character- environmental approval has been given, some of the istics; liabilities and constraints imposed naturally or opinions of the public services required in the context due to the mining history; the geographic situation of environmental approval of individual projects, can with respect to existing infrastructure, settlements be omitted. and economic clusters; the potential added value development options; and the opportunity cost of In this context, the provisions of the article 54 of the sub-optimal development. law 3982/2011 could prove useful. As provided by the law, for projects of certain business categories, If one goes deeper into some of the scenarios, which are allowed to be installed in business parks for instance on energy production and storage, of industrial use, such as energy and thermal produc- further recommendations on repurposing were tion from renewable energy sources and natural made. Namely recommendations associated with gas, co-production of electricity and heat, research using former lignite mining pits for floating solar and centers and laboratories, agricultural and stock- reconversion of power plants using clean energy raising business etc. services in charge do not have technology. The level of detail of such repurposing to opine as part of the procedure of environmental scenarios requires feasibility studies to be undertaken licensing. The scope of these provisions might be by PPC and the government to ascertain the best tech- enhanced by including additional categories of nology solutions. All solutions and the recommended activities which could be of interest for the envis- steps for completing a feasibility study on these solu- aged development model in the area. tions is found in the standalone Terms of Reference on the Alternative Energy Hub for Western Macedonia. As regards the relationship of the assessment of the environmental impact of the SSP with the assessment Develop Methodological Approach and Outline of the environmental impact of individual projects, it for a Master Reclamation Plan is stressed that the preparation of the ESIA of a SSP does not substitute for the obligation of environ- The Land Use Repurposing Assessment (LURA) 16 methodology is an objective tool used for the deter- maximized, delivering fit-for-purpose lands for a mination of post-mining land use with a high spatial variety of utilization options. The process should be resolution and a high degree of reproducibility. The transparent and result in the generation of net value methodology requires stakeholders to think and when all factors14 are accounted for. plan much beyond just achieving environmentally stable landscapes and comply with environmental A set of criteria were developed and then combined permits; it requires operators to return former mining with broad scenarios for post-mining repurposing as lands into a condition that allows for a wide scope outlined already in the sub-section above: (i) energy of diverse land uses. Currently the methodology is production and storage (see draft strategy paper based on five themes with respective parameter for an Alternative Energy Hub at Kozani) / industrial groups: morphology, hydrography, geotechnical production / waste processing; (ii) agricultural / risks, socio-economic factors, and land value (both horticultural / forestry; (iii) recreational / tourism; positive as added value and negative as remedia- and (iv) office / research / technology parks. The tion cost); further parameters, for example. permit- methodology takes cost sensitivity into account, ting requirements or restrictions, can be added as striving to avoid, for example, costly remediation or required by the various stakeholders. The method- upgrading measures for a particular purpose, if other ology informs on which types of post-mining use areas are equally or better suitable and require lower make sense to plan for on a given parcel of land but investments to be fit for purpose. A GIS-based appli- does not prescribe a specific investment scenario. cation was then developed to allow for real-time This would be a level more granular, for example, in data entry and analysis, made possible for access a spatial planning exercise. Other planning instru- to several users. Based on a request by the Ministry ments connected to the methodology can be preex- of Environment and Energy, a pilot test was done isting, hierarchically higher level, covering wider using real data provided by PPC for Amyntaio mine. geographic scopes (for example, regional spatial A summary of the pilot test is found in Section 3.3 plans, national energy strategies, special spatial below; whereas the full details of the pilot test can plans); or they can be parallel, on the same level and be found in the standalone output. In brief, the pilot laterally connected (for example, economic devel- test proved the effectiveness of the tool in delivering opment plans of adjacent municipalities). relatively accurate land use scenarios, based on the optimal conditions found on the specific parcel A key objective is to ensure that the environmental under assessment. PPC’s proposals are based on quality of repurposed lands is maximized. Therefore, more detailed studies and assessments, which have remediation and reclamation are preferably already taken much more time and resources to complete. done while mining operations are still ongoing (a They are similar in many aspects and have not been concept we refer to as “mining for closure”) and the found to diverge significantly from our own. This process should be linked to existing mine closure pilot test confirms that the LURA is a useful and standards. This allows for indications of how different resource-efficient tool for assessing and planning categories of land could optimally be reclaimed—at potential post-mining land use and repurposing. a specific mine site—and introduces a dynamism Additional time and resources to collect and process to mine closure allowing optimization of closure higher resolution data would further improve the planning and implementation, according to local quality of LURA’s outputs. conditions and potential future uses. This type of optimization is considered of paramount impor- tance in order to avoid excessive spending in areas Key Recommended Actions that could be repurposed in a more cost-efficient manner for a more optimal use. Hence, the value On the following page is a summary of key recom- of using the methodology while mining operations mended actions for government and other stakeholders are still on-going is that repurposing is economically undertaking during Phase 1 and 2 of the transition. 17 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia FIGURE 3 Summary of Key Recommended Actions in the Road Map Phase 1: Planning Pillar 1 A1: Governance Model Launch pre-feasibility and feasibility studies Governing for the selected pilot projects under the National Level: 1) establish Technical Secretariat Systems transitional program to support the work of the Steering Committee in completing the Master Plan and the Territorial Just Undertake power system planning study to Transition Plans; 2) complete and publish a set of confirm best technology alternative energy implementation arrangements for the transitional solutions for the region program to ensure stakeholder engagement; 3) adopt a communications plan; 4) complete work of establishing the Société Anonyme (S.A.) A3: PPP for Development to manage the transition’s work; 5) finalise design Finalise establishment of the S.A. per above (A1) of the operational program 2021-2027 including definition of areas of greatest need and ensuring Draft TORs for a Special Purpose Vehicle with there is a gender quota for project recipients PPC and government as main shareholders Regional Level: establish a Regional Just Transition structure to formally solicit and consolidate ideas A4: Stakeholder Engagement Strategy and proposals for the transitional program to the Technical Secretariat Public consultation on: 1) Master Plan and Territorial Just Transition Plans; 2) transitional program 2020-2021; 3) operational program A2: Regional Economic Transition Strategy 2021-2027; 4) coal mine and power plant closure plans; and 5) regional strategy statement Adopt the pathways (energy, agriculture, SME incubation, and digitization) into the Technical Secretariat, in consultation with the Master Plan Regional Committee, to adopt and implement a communications plan Conduct baseline on the pathways for M&E purposes Technical Secretariat to establish national platform for dialogue and consultation on post- Design and implement transitional program lignite transition to support the Master Plan with attention to ensuring there is a gender quota for project recipients Pillar 2 B1: Assessing Workforce Implement an employer survey at the local level to People and better grasp barriers to employment in general in Use results from firm survey to be delivered in July Communities the region 2020 to identify viable sectors for labor transition Build capacity of KPA2 (local employment Work with a large employer or cluster of employers agencies of Greece’s National Employment to propose specific tailor-made trainings for Service—OAED) to service jobseekers and piloting during the transitional program 2020-2021, prospective employers efficiently corresponding to the above sectors Pillar 3 C1: Land Use Repurposing Assessment C2: Special Spatial Planning (SSP) Repurposing (LURA) Methodology Initiate establishment of SSP Land and Other Move forward with complete application of LURA Assets Commence application for the necessary strategic on PPC lands environmental and social impact assessments Share results of assessment with stakeholders 18 Phase 2: Implementation A1: Governance Model A4: Stakeholder Engagement Strategy National Level: 1) Monitoring and implementation Continue to consult on key documents as required of the operational program by the Société Anonyme (S.A.) Hold regular quarterly national platform meetings Work with beneficiaries to develop communications A2: Regional Economic Transition Strategy success stories on transition projects under Monitor pathway performance implementation Host once a year SME and other program beneficiaries to Hold at least one youth competition a year to support develop peer-to-peer learning and exchange projects for community transition that are led and implemented by youth groups in the affected areas Hold an award ceremony at the 3-year mark of the operational program’s implementation to showcase the Hold at least one competition a year to support projects top 10 transition projects. Award categories could include: to narrow the potential negative impacts on women as a environmental stewardship, gender, innovation, best start result of the transition up, youth engagement, most economical with biggest social impact, etc. A3: PPP for Development Monitor and audit work of the SPV and the S.A. B1: Assessing Workforce Based on pilot in Phase 1, implement a comprehensive Demand-Responsive Training (DRT) activities under the operational program 2021-2027 Complement labor market measures with income support for those with difficulties getting back on the labor market C1: Land Use Repurposing Assessment (LURA) Methodology With planning completed and adopted, commence repurposing works with the SPV as the prime implementing entity. 19 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia 20 SECTION I 21 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia SECTION I INTRODUCTION Background The approach to Kozani in the heart of Western Macedonia’s coal region climbs successive mountain heights on the region’s superhighway, leaving behind the orchards to the southwest of Thessaloniki. When reaching the final ascent, the views into the lignite valley are dramatic: powerlines trace the contours of areas with villages perched on the hills to either side. Though small agriculture dots some of the lowland in the valley, it is the lignite mines, power plants, and their related infrastructure which dominate the landscape between the towns of Florina, Kozani, and Ptomelais. The Public Power Corporation’s (PPC) vertically integrated operations are impressive and constitute one of the largest contiguous land holdings remaining today in Europe. Though in relative terms not a large employer in the region—only 10% of direct jobs in Western Macedonia—PPC and the lignite culture was, until very recently, synonymous with the region’s identity. In discussing with residents of the area, one is given the impression that if you take away PPC and the lignite industry, you take away the heartbeat of the region. Yet the people of the energy municipalities (as they converging consensus) that a future beyond lignite are referred to) of Western Macedonia have been needed to be imagined in this region of Greece.15 thinking about a life after lignite for some time. However, based on extensive interviews during the When the World Bank started its engagement here team’s work, it is fair to say that few anticipated that in February 2019, already several reports, strategies, this ‘post-lignite era’ would in fact so rapidly arrive on and interest groups had coined the phrase ‘post-lig- Western Macedonia’s doorstep. nite era.’ As embryonic as these early writings may have appeared to outsiders, they signaled a Indeed, the pace of change has increased signifi- growing social dialogue (and in more recent years a cantly. In September 2019, the Prime Minister of 22 Greece stood before the United Nations General region itself. It is a story about bringing people along Assembly and declared his country’s intention to in a radical, structural transformation of the region’s close out its lignite sector by 2028. This political economy and identity. decision supported the policy of the European Union (EU) and its Commission to support energy and Long journeys begin with a road map, a strategy that climate policies of its member states, namely through charts the pathway to be taken and markers along the instrument of the National Energy and Climate the horizon. As the Road Map proposes below, this Plans (NECPs), and underlying EU legislation. A few means thinking big and differently. It also means months later, Greece submitted its revised NECP16 looking at the building blocks required for future to the European Commission (EC), reflecting its new generations in Western Macedonia to excel. Lessons lignite reduction targets—one that brought forward from the World Bank’s past work, and the team’s substantially the targets from the first draft submitted analysis of other major coal transitioning countries, in June 2019. Of further note was the inclusion of shows that past common practices focused on the natural gas, a fuel which would support the transi- immediacy of mine closures with short- and medi- tion away from lignite over the medium term. Within um-term management of social impacts. This type a few weeks of that revised NECP submission, the of approach addressed pressing immediate needs, government and PPC announced new measures and while also enabling continued hardship in coal plans to commence the closure of mines and plants, regions lacking pathways for new opportunities, with the majority completed by the end of 2023. By and in fostering of social ills enabled by languishing January 2020, the EU had released its flagship Green workforce and communities. Such a structural New Deal, including a specific financing instrument decline of once thriving coal regions was aided to for coal intensive regions called the Just Transition a large extent by inadequate attention paid from Mechanism.17 In effect, in the span of less than four the outset to the assets most available within these months, Greece became one of the more advanced regions to drive change. Reclamation and rehabilita- EU member states to commit to coal sector transition. tion of former mining lands and other infrastructure assets could attract much needed new investments However, no matter the global nature of the chal- into alternative future uses. As this report repeatedly lenge, successful transition solutions have begun signals, Western Macedonia is in an incredibly strong locally, and have looked well beyond simply the ques- position to build off its natural, physical, and human tion of energy. This was evidenced early on during capital; and these elements should be considered in the team’s work as it considered the characteristics their entirety right from the start. and statistics for the Western Macedonia region. Indeed, for quite some time, Western Macedonia has been characterized by outflows, engaged in a vicious cycle of disinvestment and population Scope of Work decline. Some of the reasons have a relationship to the predominance of the lignite- and energy-pro- ducing economy; while many other reasons reflect The Regional Government of Western Macedonia national drivers. In discussing with stakeholders, is seeking the assistance of the World Bank to and in looking at the data, it emerged that in order develop a Road Map for a Managed Transition of to succeed at this energy transition, a contemporary Coal-Dependent Regions in Western Macedonia and more dynamic vision of the region needs to be (hitherto referred to as the Road Map). The Road built; one that is thriving and forward-looking, under- Map has three pillars of intervention: i) a governance pinned with good jobs in economic sectors that framework for managing the transition; ii) assisting are empirically shown to be promising. It is a story people and communities; and iii) repurposing land whose success will require inspiring and thoughtful and assets. leadership who can encourage a reinvention of the 23 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia The activities and their progress in implementation Component 4 are described in detail below. Monitoring and Evaluation, and Final Consultation Component 1 Strengthening Government Systems This component delivers the final Road Map following stakeholder feedback sessions, and a public forum to This component will deliver a governance framework, socialize the Road Map. regional transition strategy, a proposal for a PPP for Development, and a stakeholder engagement strategy. a) Hold final public consultations on the draft Road Map; a) Propose a governance body for the transition; b) Finalize Road Map. b) Develop the broad outline for a regional economic transition strategy; c) Develop a proposal for a PPP Development Methodology Fund; d) Develop a stakeholder engagement strategy. World Bank Coal Sector Transition Assessment Framework Component 2 Preparing People and Communities The World Bank has designed a methodology to support highly complex energy transitions in coal This component focuses on building a smooth tran- regions, considerate of the unique challenges of sition from the coal value chain with focus on labor mono-industry towns in regions often having lagging impacts from decommissioning of plants. socio-economic indicators. The methodology is based on lessons learned from past coal World a) Assess the workforce affected by the transition Bank Sector Adjustment Loans18 in Ukraine, Poland, with a view to managing reallocation and reskilling Romania, and Russia; together with observations of workers. taken from additional case studies in other regions of Europe, the United Kingdom, the United States, Component 3 and China. It is fundamentally driven by the empirical Repurposing Land and Assets assessment of human, natural, and physical capital that can leverage new investments to drive much- This component delivers a Strategy for Repurposing needed regional transformation. Land and Assets, and a Reclamation Master Plan for Mined Areas. The methodology described herein employs a two-phase approach to ensure that transition path- a) Review legislation regarding mine reclamation; ways are evaluated using informed decisions and resulting pilot projects are underpinned by the b) Develop strategic recommendations for repur- governance systems necessary for success. This posing other (non-mined) lands and assets; two-phase approach is described as follows: c) Develop methodological approach and outline Phase 1: Planning for Transition—assists govern- for a Master Reclamation Plan. ments and regions to develop a detailed plan (“Transition Road Map”) organized around three pillars: (i) strong governance systems; (ii) attention to 24 DIAGRAM 1 World Bank Coal Sector Transition Assessment Framework Pillar One Pillar Two Pillar Three Government Systems People and Communities Repurposing Land and Assets Review sector policies & laws Review policies & laws for Review policies & laws for Social Protection reclamation and repurposing Assess coal industry characteristics Pre employment retrenchment Review existing mine closure plans Map ministries and agencies Coal Mine Closure planning for workers Assess legacy issues Design a high-level decision-making Define pre employment body (for transition) Identify financial surety obligations retrenchment assistance Clarify ministerial roles & Review capacities, roles & Assess capacity needs of national, responsibilities responsibilities for monitoring regional, and local institutions and reporting (delivery and coordination aspects) Map organizations for social service delivery Assess regional economic Define post- employment assistance Assess land and assets for landscape, including impacts repurposing Outline transition projects to related industries Design funding mechanisms Identify public and/or private Just Transition Outline priority economic partnerships for new growth sectors Identify reclamation and development programs repurposing activities Identify and assess institutions for Map ministries and agencies post retrenchment assistance Identify public and/or private Design a high-level decision- partnerships for repurposing assets making body (for transition) Stakeholder Engagement Assess/Examine economic development agencies OUTPUT 1 OUTPUT 1 OUTPUT 1 Governance Framework Institutional Framework for Governance Framework Social Protection Recommendations for updating Recommendations for updating mining sector adjustment policies Recommendations for updating environmental policies & laws & laws social protection policies & laws Recommendations for updating Proposed high-level decision body Institutional needs assessment for PPP law for sector adjustment and transition delivery and coordination Recommendations for funding Institutional mapping and roles OUTPUT 2 mechanisms for delivery and responsibilities outlined Social Protection and Labor OUTPUT 2 Divestiture Package OUTPUT 2 Reclamation Master Plan Regional Transition Plan Action plan for pre employment Assessment of environmental Outputs retrenchment planning and pre Spatial summary of regional legacy issues employment retrenchment assistance economic landscape Reclamation actions Action plan for post-employment Strategy for regional economic retrenchment assistance OUTPUT 3 development Repurposing of Land and List of potential partners for Summary of potential economic Assets Strategy social delivery development priority programs Identification of land assets for OUTPUT 3 OUTPUT 3 divestiture and/or public-private Regional Transition: Stakeholder Engagement partnership investments Jobs and Economies Strategy List of potential public and/or private Stakeholder mapping partnerships for transition project Stakeholder engagement plan for Delivery of transition projects under Pillar 1, Pillar 2, Pillar 3 Pillar 1 priority programs Road Map 25 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia people and communities; and (iii) repurposing land for regional transformation of Western Macedonia. and assets for new investments. In Phase 1, attention At its heart, the research was framed by a singular yet is given to the appropriateness of prevailing policies, complex question: laws, and regulations for closure of coal assets; strong analytical work regarding current and projected “How to plan for a well-managed and just socio-economic considerations; and new investments transition out of lignite19?” that might be implemented through design and initial evaluation of “kick-start” projects implemented at The analysis and recommendations in this report the regional level. The design and preparation of synthesize the cumulative efforts of a 12-person these projects requires the combined contribution technical team, representing 8 nationalities, who of ministries, regional and local governments, coal conducted field work in Greece over a period and non-coal enterprises, workers, and community of 12 months (February 2019—February 2020). members including non-governmental organizations. Regrettably the COVID-19 pandemic prevented the team from returning for their final field work visit in Phase 2: Implementation of the Transition— May 2020. At that time the results of the draft report focuses on regional transformation and revitalization were to be shared to the general public and to the through early implementation of the kick-start proj- stakeholders who had generously, and consistently, ects. Supporting these projects is a broad program- made themselves available during the 8 technical matic approach to mitigate potential social impacts visits conducted by the World Bank team to Greece. from loss of direct and indirect jobs; reskilling and re-educating members of the workforce and commu- As such, this final report is multi-disciplinary in nature, nity for future jobs; and ensuring action on environ- consolidating 11 standalone outputs20,21 which each mental remediation to unlock the potential in land set out to answer specific sub-questions with respect and physical assets. In this phase, past and present to a post-lignite transition in Western Macedonia; ques- cases demonstrate the utility of establishing Special tions of the order of its people, the environment, the Purpose Vehicles or independent operators whose economy, and governance. These technical outputs responsibilities could include: handling repurposing range from proposals on governing structures for coal works, delivering on permitting requirements, and transition to labor market diagnostics to post-mining mobilizing private sector financing and investors. land repurposing methodologies. As a synthesis of these 11 standalone outputs, care has been taken to The World Bank’s present methodology departs from ensure that all salient findings and recommendations past common practices where the immediacy of mine are consolidated into this single document. And, this closures necessitated concerted attention on short- has proven to be a great challenge. The reader is and medium-term management of social impacts; encouraged to patiently read through Table 2 on the often at the expense of attention to reclamation and following pages, which summarizes these key find- rehabilitation of land and assets that could attract ings and recommendations, but to also review the 11 much needed new investments. In the past, such an source outputs where a richness of detail is contained approach to transition resulted in continued hardship on a large array of sub-topics. in coal regions who lacked new pathways of oppor- tunity and could not make use of potential physical capital due to environmental liabilities. Due to dimin- Technical Visits and Team Composition ished opportunities, languishing workforces and their communities were exposed to considerable social ills. In January 2019, administrative agreement was signed between the World Bank and the European Commission Based on the framework, this report uses a combi- (EC) on behalf of the European Union (EU), concerning nation of different methods to arrive at an under- a €500,000 technical assistance project in Western standing of the present situation and the prospects Macedonia, Greece to be funded under the scope 26 TABLE 2 Research Framework Pillar and Key Research Sub-component Question(s) Methods Outputs Government Systems Governance Structure Based on international Literature review on past governance Proposed Governance Structure best practice, and past models for coal transition Terms of Reference for the Limited practice in Greece, Interviews with key government Liability Company for Transition (LLC) what might be the officials involved in present best governance governance models structure for planning and implementing a Legislative review on limited liability comprehensive transition companies in Greece away from coal in Western Interviews with key informants who Macedonia? managed past special operators in Greece Interviews with stakeholders in Western Macedonia and Athens on governance arrangements suitable for transition Outline for Regional Through which sectors Literature review of all existing Development of the Outline for a Strategy and mechanisms can strategies for post-lignite transition in Regional Economic Transition Strategy Western Macedonia Western Macedonia for Western Macedonia build a diversified, strong Key informant interviews in Western Green Pathway Agricultural (a task economy for a post-lignite Macedonia requested beyond original scope of era? And how can this work and added during the technical strategy complement Site visits and direct observation of assistance delivery) ongoing programs and businesses and initiatives in Western initiatives? Macedonia Terms of Reference: Concept Development for a Western Quantitative analysis of the economy Macedonia Alternative Energy of Western Macedonia and Energy Storage Hub Public / Private Is there a need to create Key stakeholder interviews with Terms of Reference for a proposed Partnerships (PPP) to a PPP for Development? government officials Limited Liability Company to support Catalyze Development If so, what would an implementation of Transition strategies Key individual interviews with Athens appropriate PPP model Olympics planning structure look like? Review of legislation pertaining to limited liability companies in Greece Stakeholder Who is to be affected by Comprehensive consultations with Stakeholder Engagement Plan, Engagement the transition and how to all stakeholder groups in Western including communications strategy build robust engagement Macedonia and some limited groups with these groups? in Athens Literature review on stakeholder engagement best practices and legislation in Greece People and Communities Assess Workforce What are the predominant Quantitative labor analysis Jobs Diagnostic characteristics of the Key informant interviews with existing workforce which statistical authorities at regional and is to be transitioned? national level Focus group discussions with sub- contractors 27 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia Table 2: Research Framework (continued) Pillar and Key Research Sub-component Question(s) Methods Outputs Repurposing Mining Lands and Other Assets Review Legislation Is there scope to apply Literature review of legislation Detailed Legal Analysis of Spatial repurposing strategies to pertaining to the environmental Planning PPC lands? If so, how? framework for remediation in Greece Detailed Analysis of Environmental Literature review of legislation Legal Framework pertaining to spatial planning in Greece Key stakeholder interviews with officials in Ministry of Environment and Energy Propose Repurposing What are some of the most Case study evaluation of post-mining Strategy and Tools for Repurposing Uses for Post-mining efficient and innovative repurposing exercises in Europe Post-Mining Lands and Assets Lands and Assets ways to repurpose Key interviews with PPC existing PPC post-mining lands and assets? Site visits on PPC lands Develop Methodology Is there a way to apply an Literature review of risk and assessment Strategy and Tools for Repurposing for Assessing objective, low resource classification systems for adaptation to Lands and Assets Repurposing Post- intensive, and evidence- post-mining land evaluation Amyntaio Land Use and Repurposing mining Land and Asset based methodology to Field testing on site with PPC Assessment (LURA) Testing (additional Options assessing post-mining task requested beyond original scope land use? If so, what Pilot LURA testing for Amyntaio mine of work) would this be? Key informant interviews with PPC, Western Macedonia stakeholders, and Ministry of Environment and Energy of the former Structural Reform Support Programme Component 2: Luc Christiaensen (Labor Economist) (SRSS), now Directorate General for Reform. In February and Céline Ferré (Development Economist). 2019, the World Bank team—accompanied by represen- tatives from the former SRSS, the Director General Regio Component 3: Wolfhart Pohl (Environmental covering Greece and Cyprus, and EC’s Directorate Expert), Chrysanthos Steiakakis (Geo-Technical General for Energy (DG Energy)—conducted the Engineer), Georgios J. Politis (Attorney- project kick-off mission in Kozani, Greece. Following At-Law), and Constantinos Hadjitheocharous the kick-off mission, the World Bank team carried out (Environmental Legislation Expert). technical missions and workshops to Kozani as well as Athens in April 2019, June 2019, September 2019, mid- Overall Project Management: Nikolaos and late-October 2019, November 2019, January 2020, Schmidt (Program Coordinator for Greece), and February 2020. Kate Jinghua Zhou (Research Analyst), and Helen Ba Thanh Nguyen (Program Assistant). The World Bank team is led by two task team leaders, Ms. Rachel Perks (Senior Mining Specialist) and Mr. Michael Stanley (Lead Mining Specialist), and Outputs includes the following team members: The Team developed standalone outputs which have Component 1: Asta Olesen (Stakeholder been consolidated into this Road Map. They have been Engagement Expert), Jonathan Walters (Energy made available to both the European Commission and Economist), Chrysostomos Karachalios (Regional the Government of Greece. They are as follows: Planning Expert), Rachel Perks (Senior Mining Specialist), and Kate Zhou (Research Analyst). 28 TABLE 3 Outputs Government Systems Governance Structure Proposed Governance Structure Terms of Reference for the Société Anonyme (S.A.) Outline for Regional Strategy Development of the Outline for a Regional Economic Transition Strategy for Western Macedonia Green Pathway Agricultural* Terms of Reference: Concept Development for a Western Macedonia Alternative Energy and Energy Storage Hub PPP to Catalyze Development Terms of Reference for a Proposed S.A. to Support Implementation of Transition Strategies Stakeholder Engagement Stakeholder Engagement Plan, including Communications Strategy People and Communities Assess Workforce Jobs Diagnostic Repurposing Mining Lands and Other Assets Review of Legislation Detailed Legal Analysis of Spatial Planning Detailed Analysis of Environmental Legal Framework Repurposing Uses for Post-mining Lands and Assets Strategy and Tools for Repurposing Post-Mining Lands and Assets Methodology for Assessing for Repurposing Post-mining Land and Asset Options Strategy and Tools for Repurposing Lands and Assets Land Use and Repurposing Assessment (LURA) Testing* *Additional task requested beyond original scope of work Adjustments to the Timeline and Scope PPC to run the methodology across the entire conces- for Delivery sion. Instead an application was run for Amyntaio and completed in May 2020. The second is the expansion The timeline for implementation was revised upwards of the labor diagnostic to look more in-depth into the in October 2019 following the requests of the govern- scale of impact of closure on PPC sub-contractors ment to fast track the work. Below is the updated and to identify potential options for transition. Due to timeline for delivery. In January 2020, at the request of COVID-19 pandemic, and related travel restrictions in the government, three tasks were either expanded or Greece, this survey is yet to be administered in Western added, in response to the evolving needs of the govern- Macedonia. It is expected to commence in June 2020 ment. The first was the application of the Land Use and and therefore the results will be delivered separately in Repurposing Assessment (LURA) methodology devel- July 2020, following this report’s conclusion. The third oped by the team and meant to serve as a planning is a more in-depth analysis of the agricultural sector tool for land repurposing scenarios in PPC lands. The as a transition pathway which was completed in April team did not manage to obtain all necessary data from 2020. See the revised timeline below. 29 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia FIGURE 4 Project Implementation Timeline Timeline (Year and Month) 2019 2020 Activities and Outputs 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 Pillar 1: Strengthening Government Systems Proposed governance structure for draft for review coal transition final draft Outline for a proposed regional draft for review economic transition strategy final review List of 5-6 proposed projects for draft for review economic transition final draft 3 proposed projects selected for draft for review further development final draft Proposal for establishment of a PPP draft for review Development Fund structure final review Proposed stakeholder engagement draft for review strategy final draft Proposed action plan for stakeholder draft for review engagement final draft Pillar 2: Assessing Workforce and Communities for Transition Report for workforce survey findings draft for review and proposed plan final draft Recommendations for update “Ergasia draft for review Kozani” final draft Pillar 3: Repurposing Land and Assets Review of legal framework draft for review final draft Assessment of remediation needs draft for review and drivers final draft Terms of reference for proposed draft for review spatial planning final draft Assessment of environmental draft for review legacy issues final draft Proposed methodology & approach draft for review to reclamation master plan final draft List of proposed projects & actions draft for review for future land reclamation final draft New activity (not in current contract): application of methodology & approach Pillar 4: M&E and Final Consultation Draft of proposed Road Map for government review Draft of proposed Road Map for public consultation Incorporation of key results from feedback sessions into the proposed Road Map Final proposed Road Map 30 SECTION II 31 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia SECTION II WESTERN MACEDONIA: REGIONAL OVERVIEW, TRANSITION IMPACTS AND OPPORTUNITIES The Economy and People Western Macedonia is the only land-locked region within Greece, covering an area of 9,451 km2. Its population of 271,500 inhabitants constitutes around 2.6% of the national total. As shown in Figure 5 below, whether in mining, agriculture, forestry or fishing, Western Macedonia’s economy is predominantly dependent on natural resource extraction. Agriculture, forestry and fishing alone make up the largest employment segment, at 21% of the region’s total. Interestingly, growing of non-perennial crops itself represents 12% of total regional employment, though is dependent to a large extent on migratory labor. Yet when it comes to discussions on development trajectories for the region, it is the question of the “post-lignite era” that garners the most policy attention from population and politicians alike; most likely given the industry’s history and physical presence in the region. FIGURE 5 Agriculture, Forestry, and Fishing Most of Western Macedonia’s Transportation and Storage Public Administration and Defense; Compulsory Employment is Concentrated Social Security in Sectors Linked to the Use Manufacturing of Natural Resources Education Accommodation and Food Service Activities Distribution of Employment Mining and Quarrying by NACE Rev.2 Sectors, Human Health and Social Work Activities Western Macedonia, 2018 Electricity, Gas, Steam, and Air Conditioning Supply Other (less than 5% of activity) Source: Authors’ calculations using EIEAD data, 2018. 32 FIGURE 6 Study Area Representation of PPC’s Operations Outside Dump of Proastio Mavropigi Mine PP Ptolemais Pteleonas East Komanos Mine Vermion Mountain Inside Dump Mavropigi Outside Dump of Outside Mine South Field Dump Mavropigi Akrini South Field Pontokomi Agios Dimitrios Askion Mountain PP Kardia PP Agios Dimitrios Mavrodendri Soulou Stream Skopos Mountain Source : Vasileiou E., et al. (2018) Western Macedonia’s energy sector is vertically The Kozani-Ptolemaida-Aminteo-Florina axis—referred integrated: from lignite mining to power produc- to as the energy municipalities—is where most of tion, with heat further distributed for district heating the energy activity can be found (Figure 6) in addi- to 100,000 residents in the largest urban centers. tion to where most people employed in the energy Except for a few private mines and some small hydro- sector reside. Though a significant employer in these power installations, photovoltaic and wind parks, the four municipalities, when compared at the regional energy sector of Western Macedonia is dependent level, mining and quarrying (NACE Rev 2 sector B) on the Public Power Corporation (PPC)22. Today, and electricity and power generation (NACE Rev PPC’s operations of open-cast lignite mining extend 2 sector E) represent merely 10 percent of total across 150 km2 with an additional four lignite-fired employment across the region (See Figure 7). To power plants (of 12 units in total), representing 20% of note is that total jobs in mining have been declining the total installed net capacity of the interconnected whereas, through the construction of Ptolemeida V, electric system of Greece. jobs in power plants are growing. 33 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia FIGURE 7 The “Energy Municipalities” (in Blue) of Western Macedonia North Macedonia Mun. Florina Region of Central Macedonia Mun. Prespes R.U. Florina Albania Mun. Amin Teo Mun. Eordea R.U. Kastoria Mun. Kozani Mun. Voio R.U. Kozani Mun. Servia Velvedo R.U. Grevena Region of Epirus Region of Thessaly Source: Kozani Development Agency (ANKO) in Petrakos G. et al (2019) RELOCAL Case Study Report “A Post-Mining Regional Strategy for Western Macedonia, Greece” There have been several attempts to estimate the reality, PPC’s presence in the area has not induced economic impact of the lignite sector on the broader significant industrial spill-overs capable of creating economy with the use of input-output analysis agglomerations or boosting industrial development models; each producing quite different results.23,24 further. This can be further evidenced by an anal- Nonetheless, some general observations can be ysis of the export statistics for the region where the made from a comparative review of the models’ highest are from clothing (from fur), alongside food results. First is that the lignite industry influences only and beverage, 65.8% and 16.8% respectively. a select few sectors clustered under the general title of “mines, quarries, electricity, fuels, etc.”25 And of To this end, economic linkages of the sector to those service providers, most remain predominantly other sectors (outside mining) are limited. The lignite dependent on PPC. For instance, in interviews held sector’s key contribution to the region is rather in in October 2019 with select contractors to PPC household income distribution, as workers consume on site, only two had developed business oppor- services within the region (professional services, food tunities outside of their relationship to PPC, and and beverage, etc.). This can in part be seen in the these advances were within the last 12 months. In data on the region’s sources of Gross Value Added 34 (GVA) whereby the majority comes from industrial new jobs which can, to a certain degree, respond to sectors—mining, manufacturing, power generation, immediate losses from the closure of the mines and and water.26 Indeed, half of Western Macedonia’s plants; it is equally important to identify new economic GVA is generated by these, compared to 13% for sectors which can replace (and therefore generate) Greece as a whole. When examined more closely, value lost from the mining and energy sector. the importance of the industrial sector is driven by its role in mining and power generation, mainly in With the transition out of lignite now firmly set, one Kozani and Florina at 60% and 49%, respectively. key question is then: towards which sectors will the economy need to pivot? One strand of inquiry The dichotomy between, on the one hand, small mine is to look towards sectors which show promise. and energy employment and, on the other hand, For example, one observes from the most recently the sector’s substantial GVA contribution, are not available data that between 2013 and 2018, the uncommon to find in mining environments globally. most dynamic sectors (in terms of job creation) in Salaries from mining and power generation typically Western Macedonia were leisure, agriculture, trade, out-compete other offerings in primarily rural-based construction, and computer programming (EIEAD, economies. Yet their total share of rural employment 2019). In unpacking these sectors’ data, a diverse is often quite low. Signaling, as shall be discussed in array of sub-sectors emerge with sports activities Section 2.2, that concern for social protection and (931), medical and dental practice activities (862), short-term labor options for retiring and laid off workers provision of services to the community (842) ranking can only be one consideration of a much larger solu- the highest, followed by computer programming, tion to structurally transform the economy for the consultancy and related activities (620), restaurants benefit of a much wider segment of the population. and mobile food service activities (561), hotels and In other words, and as observed in other transitioning accommodation (551), retail sale in specialized stores coal economies, the challenge is not only to create (477), retail sale of food, beverages and tobacco FIGURE 8 Employment in Mines is Halting, while the Construction of Ptolemais V Keeps Providing Jobs in the Power Sector 6,000 Total Employment in Western Macedonia 5,000 4,676 4,858 4,090 4,148 4,079 4,000 3,697 3,848 3,314 3,963 3,000 3,361 3,031 2,979 2,840 2,877 2,000 2,248 2,273 1,000 – 2011 2012 2013 2014 2015 2016 2017 2018 Mining of lignite Electric power generation, transmission and distribution Source: EIEAD, 2011-2018 data. https://lmd.eiead.gr/ANNUAL-REPORT-2019/. 35 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia (472), construction of roads and railways (421), and (See Figure 9 below).28 Partly for these core reasons, lastly growing of perennial crops (012). While some alternatives to traditional lignite-based industries sectors may have natural high turnover or seasonal have been very slow to develop. Even PPC—in a patterns (hotels, retail and trade, agriculture), others sector in which technology solutions are changing are less subject to large waves of hiring and firing rapidly globally—invests relatively little in R&D and (services to the community, medical and dental innovation when benchmarked against leading practices, computer programming).27 To note, more utilities across Europe. By consequence, its diversifi- in-depth study of the drivers of demand for these cation away from conventional sources of electricity services is required in order to make more substan- and heat has been slow.29 Beyond the energy sector, tive conclusions on their viability, once the lignite there is a very low level of investment in new technol- sector phases out. ogies more broadly in Western Macedonia, particu- larly in information and communications technology More generally however important hurdles need to (ICT) as compared to EU and Greek averages, be overcome for any business, let alone sector, to despite there being no apparent shortage of tech- succeed in a ‘post-lignite era.’ First, across Western nology-educated graduates in Western Macedonia. Macedonia, there are very low levels of entrepreneur- In fact, the limited focus on leveraging new technol- ship, research and development (R&D), and inno- ogies for the broader economy—i.e. in areas such vation—both within and beyond the energy sector as digitization and fintech—may be the single most FIGURE 9 Intramural Research & Development Expenditure as % of Gross Domestic Product (2015) 1.5% Kriti 1.3% Dytiki Ellada 1.2% Ipeiros 1.2% Attiki 0.9% Kentriki Makedonia 0.8% Voreio Aigaio Region Anatoliki Makedonia, 0.7% Thraki 0.7% Thessalia 0.5% Sterea Ellada 0.5% Ionia Nisia 0.5% Dytiki Makedonia 0.4% Peloponnisos 0.2% Notio Aigaio Source: Eurostat and self-elaboration 36 important constraint to growth and employment in Europe have unemployment rates below 10% of the the region. Second, as in the rest of Greece, 10 years population (Alvares Días et al, 2018). after the crisis, there is a lack of financing available for private sector business start-up or expansion. Third, Simultaneously, the total active population has tax levels and regulatory interventions also inhibit remained static (116,000 individuals in 2018 compared business development. Fourth, government’s role in to 118,000 in 2008) whilst the inactive population promoting new businesses and economic sectors is dropped by 10,000 persons from 64,000 to 54,000 hampered by a relatively a top-down sector-focused thousand (Eurostat, 2018). Together, these two indica- planning system in the region, with relatively little tors suggest a strong trend in outmigration from the focus on planning to enable market-driven develop- ment. Rather, planning is quite strongly shaped by the necessity to channel EC funds, and this process is closely managed from the central government. FIGURE 10 In effect, policy-making initiatives and regional Western Macedonia Records the Highest planning autonomy are not readily observed. More Unemployment Rates in Greece open and enabling processes for strategy formula- 80% tion, policy choices, and project selection across all sectors could do more to catalyse new dynamism in the region for a ‘post-lignite era.’ 60% Employment Rates All these factors combined create a high dependence 40% on the public sector for employment, a low level of private sector development (excluding PPC and its direct contractors), and insignificant foreign direct 20% investment. Even sectors which typically perform strongly across Greece—agriculture and tourism— – remain under-developed in Western Macedonia. 09 10 16 18 14 15 13 12 17 11 20 20 20 20 20 20 20 20 20 20 These observations on the economy bring us to the EU-28 Greece Western Macedonia last important factor to be considered for effecting any transition out of lignite: the region’s human capital. Regrettably, Western Macedonia faces unparalleled 80% barriers when it comes to employment and growth due to its steady population decline and stagnant labor market. Indeed, the prolonged economic 60% Unemployment Rates crisis in Greece continues to disproportionately affect Western Macedonia which today records the 40% highest unemployment rates of the country. Even if unemployment has continued to fall in recent years, the current rate remains exceedingly high (27% 20% compared to 19% in Greece) (Figure 10), and over the past 10 years, the absolute number of employed – individuals fell sharply by about 20,000, or about 09 10 16 18 14 15 13 12 17 11 5 percent of the active population. Comparatively 20 20 20 20 20 20 20 20 20 20 speaking, the high unemployment rate in Western EU-28 Greece Western Macedonia Macedonia stands apart from the other 30 EU coal Note: working-age population, i.e. 15-64 years old. regions in which most mining NUTS-II regions in Source: Authors’ calculations using Eurostat LFS data (2018). 37 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia FIGURE 11 Youth dependency rates are quite low, reflecting Western Macedonia’s Population Displays High the outmigration of younger adults, who are more Dependency Ratios likely to be the ones with children under the age of 15, as illustrated below. Total 269 Of the youth that have remained, they experience crippling unemployment, both compared to other regions in the country as well as to other coal regions Working Age <15y.o. or >64y.o. in the EU. 170 99 FIGURE 12 Active Inactive 116 54 Western Macedonia’s Population is Aging Fast and Losing Its Younger Working-age Labor Force 2008 Employed Unemployed 80-84 84 32 70-74 Source: Authors’ calculations using Eurostat LFS data (2018). 60-64 50-54 40-44 Age 30-34 region over the last decade. Consequently, Western 20-24 Macedonia’s population is highly dependent on a 10-14 limited number of working individuals: indeed, only 1 0-4 in 3 persons is working in the region (Figure 11). – 00 00 00 00 00 00 5 5 ,5 ,5 5 5 With this strong trend in outmigration over the past 2, 2, 7, 7, 12 12 ten years, Western Macedonia experienced rapid Males Females aging of its population. Not only was Western Macedonia’s population already one of the oldest in 2018 Greece—the elderly (65+) represented 21.5% of the 80-84 region’s population in 2008—compared to today’s 70-74 average for Greece of 21.8%, their share rose further 60-64 to 23.6% in 2018, with youth (0-14) and the working 50-54 age (15-64) making up the remaining 13.5% and 40-44 Age 62.9%, respectively (Figure 12). Consequences for 30-34 the labor market are self-evident. 20-24 10-14 One consequence of age structure in the region 0-4 is that its old-age dependency rates are now at a – record high of 37% (Figure 13). For every ten work- 00 00 00 00 00 00 5 5 ,5 ,5 5 5 7, 2, 2, 7, ing-age adults (15-64) there are four pensioners 12 12 (over 65). These figures are higher than 10 years Males Females ago, and they are also higher than the national and Note: Population on January 1st of each year. EU-28 averages at 34 and 30 percent, respectively. Source: Authors’ calculations using Eurostat population data, 2019. 38 FIGURE 13 FIGURE 14 Old-age Dependency Ratios Remain Higher than In Western Macedonia, Youth, Low Educated in the Rest of Greece and the EU Households, and Female-headed Households 40% are Most at Risk of Poverty 80% 75% Youth Dependency Ratio 30% 70% 60% Poverty Rates 50% 20% 40% 33% 34% 30% 30% 19% 25% 10% 20% 10% – – za a, HH d 8 EL M EL M om y.o s ia a H d Un ary r Ko ven nd pe W 34 ult in -2 de e ni or W W oy en .) H or EU co p d st ea re se u 55 y.o. 40 62 Total 1,073 511 Total 1,073 511 Source: Author’s calculations using PPC HR data, 2019. PPC. There are a further number of small sub-con- ations and power production are unionized mainly tractors, providing different services to PPC, such in the union of Spartakos plus a few minor unions. as catering, cleaning, waste disposal, which cover However, all these primary unions (business unions as around 500 jobs. well as sector unions) are members of GENOP, which is the largest labor union in Greece, with a member- Sub-contractors represent a small share of the ship of 27 primary unions, of which 6 are located employment in the mining sector, but a large share in Western Macedonia. GENOP is representing its of the employment in the power sector, around members vis-à-vis PPC and its satellites and is also 25% and 60% in 2018 respectively. Interviews leading the strategic discussions internally among conducted in October 2019 with sub-contractors the members regarding the post-lignite transition. highly dependent on PPC (i.e. structures for which Employees of the various sub-contractors to PPC are PPC is the main, if not only, employer) reveal that they not unionized, and most of them are employed on are rather small firms (50 to 30035), mainly operating project contracts rather than full-time employees. in construction, extraction, and transport. They are employing predominantly older male workers with (3) Indirectly Affected: Local Community and an average age of 45. These are mostly technicians Business Groups with low levels of education, but high skill levels acquired through considerable work experience. Beyond those directly employed in the energy value As a consequence, they earn relatively high wages, chain are the indirectly affected parties who comprise which implies that they have high reservation wages. sections of the local communities and business In interviews conducted in October 2019 with some communities in the Western Macedonia region and of these sub-contractors, they expressed reluctance beyond. Though information on indirect jobs related to work in other sectors, most of which will only offer to coal activities is not readily available, projections lower wages. range from an additional 2,000 to 6,000 jobs which could be affected by the transition. At country-level, Therefore, directly affected parties to the lignite EURACOAL provides some estimation of indirect phase out at present is roughly 5,200 workers. The jobs related to coal mining which include power employees of PPC and its satellites in mining oper- generation, equipment supplies, services and R&D. 43 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia EURACOAL estimates an indirect-to-direct jobs ratio It is useful to recognize variations in different social and of 0.5 in Greece, which would mean that an addi- age groups to cope with, and be included in, the tran- tional 2,000 people would be indirectly employed sition process. Vulnerable or disadvantaged groups in the mining sector. This ratio is among the lowest refer to those who may be more likely to be adversely in Europe, with Germany and Slovakia (respectively affected by the impacts of post-lignite transition, in 0.3 and 0.2). Alves Días et al. (2018) conduct a more addition to those more limited than others in their refined analysis, including intra-regional and inter-re- ability to take advantage of potential benefits derived gional indirect effects. They estimate that 1,843 from the transition (The World Bank, Environmental jobs are indirectly linked to coal activities within the and Social Framework: 2017: 103). Such individuals extracting regions, and an additional 4,166 jobs are and groups are also more likely to be excluded indirectly linked to mining activities in other regions.36 from or unable to participate fully in the mainstream consultation process and as such may require specific measures or assistance to do so (ibid). Hence, it is important to ensure that the stakeholder engagement FIGURE 17 strategy be socially inclusive also of the more vulner- Indirect Jobs Related to Coal Mining able or disadvantaged sections of society. As elaborated already in Section 2.1, the most obvious disadvantaged group is young people. A staggeringly high youth unemployment rate, coupled with the region’s historically high unem- ployment rate, have been further exacerbated by progressive downward employment adjustments Ratio in the energy value chain since the financial crisis of 2008. Almost half of unemployed people have been out of work for more than 12 months, and almost 30% of unemployed people have primary education or less, which makes them particularly vulnerable. Greece Germany Slovakia Youth unemployment as well as female unemployment are also major social issues in Western Macedonia, with potentially upwards of 70% unemployment in the 16-24-year age group, and women being 61% of all unemployed. To date, this group has not been represented through any of the existing stakeholder groups, and special measures will have to be put in place to reach out to and hear the voice of the youth Indirect Jobs regarding the post-lignite transition. Osebik et al. (2011) argue that post-mining regions should seek not only to enhance the quality of life but also provide special programs to involve youth in development, special incentives for well-educated people to remain in the area, and above all to involve them along with other groups in strategy building for regional devel- Extracting Others opment. As a number of authors have argued (Frank 2006; Checkoway et al. 1995), young people in post- Source: EURACOAL mining regions would then be able to realize their 44 potential for contributing to planning and come to be Czech Republic—such brownfields, lying in wait to considered a valuable regional resource.37 be developed—are referred to as ‘sleeping giants.’ With regard to women, global experience shows Two principal factors have most significantly that economic recession and economic transitions contributed to this phenomenon: the regulatory tend to have differential impact on men and women, environment and cost. Globally, mine reclamation mostly with women in more precarious positions. regulations established in the 19th and 20th centu- Therefore, it would be important to ensure consul- ries have outlined an approach to reclamation which tation with women’s interest groups specifically foresaw putting lands back to their original state. during the development of the post-lignite transi- In very few cases, countries have updated these tion strategy to mitigate potential disproportional regulations during the 21st century to promote more impacts in the future. At the national level, the dynamic reclamation approaches to promote alter- General Secretariat for Gender Equality (GSGE) is native land uses. The outcome is reclamation works the governmental agency mandated to plan, imple- done which constrain investor-led development ment, and monitor the implementation of policies opportunities, as mine operators are obliged to put on equality between women and men in all sectors. lands back to their former state (often in the form of At the regional level, however, there is currently no forests or agricultural land). This by consequence formal entity mandated with such responsibilities, so creates tensions with local municipalities and the Stakeholder Engagement Strategy and its Action communities who see land use potential beyond Plan proposed in this Road Map includes specific these two uses alone. Related to this first factor is measures to identify and address youth and gender the issue of cost. Governments are not in a position gaps during the post-lignite transition planning. (or do not see it as their obligation) to fund reclama- tion and repurposing for obvious financial reasons. A last important consideration to be made, as As typically seen in the United States, where coal addressed in the NECP, is the number of consumers operations may close suddenly due to loss-making, affected by energy poverty (for example, 29% of regional and local authorities are left with environ- the population is considered unable to heat its mental liabilities—in the form of closed mines in a household sufficiently). To tackle this problem, the state that does not serve any type of land use purpose NECP includes specific objectives and milestones (whether commercial or community-oriented). along with the continuation of currently running schemes promoting energy efficiency for vulnerable Indeed, as put forward in this Road Map, land households. The NECP also discusses the potential repurposing—beyond reclamation—is an important replacement of these measures by an “energy card” enabling and supporting factor for coal transition in that could give vulnerable consumers the ability to a variety of contexts. To neglect former mining lands choose how best to cover their needs.38 and their scope of development options would be an important missed opportunity—for the region’s economy, its environment, and its people. Land Land repurposing can enable and contribute significantly to the stimulation of post-coal economic activities As mentioned briefly in the Methodology sub-sec- and growth by making lands available for several tion above, previous phases of coal sector transition purposes. Positive impacts of land repurposing often in the 1990s placed central importance on managing reach well beyond the mines’ original footprint. the future of the coal workforce, at times to the detriment of land reclamation and repurposing. By In order to achieve this, more forward-looking consequence, across many European coal regions approaches to reclamation and repurposing are today, significant brownfields present untapped required which identify future land use before development potential for coal communities. In the closure, and which ideally bring future investors into 45 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia CASE STUDY 1 4. Innovative, client-oriented management Chemiepark Bitterfeld, Saxonia Anhalt approach with full-time staff providing a range of logistical and organizational services to clients, Chemiepark Bitterfeld was developed in the such as a joint wastewater treatment plant, context of derelict, low productivity, economi- supply with utilities as well as steam, nitrogen, cally unviable industries of the former GDR being oxygen and other basic chemical agents. closed, the lands remediated and repurposed, a range of new, often innovative economic uses 5. Joint waste management services, on-site identified, and enabling conditions created for effluent treatment, circular materials use, and— investments and economic development. importantly—assistance with environmental permitting, both for the establishment of the The success of the Chemiepark rests on the businesses as well as for ongoing compliance. following factors: The Chemiepark example illustrates the rebound 1. The waiver for the legacy of environmental liabili- of investments and job creation that is enabled by ties associated with the location as key incentive. well-planned land remediation and repurposing and the provision of both physical and legal space 2. Strategic planning and financing instruments. and enabling conditions for investors. It also illus- trates how initial public funding, combined with the 3. Favorable location in terms of infrastructure, creation of and enabling regulatory environment labor availability, academic and research can lead to a sustainable economic model with high institutions. positive labor impacts and yielding steady returns. Area of the Chemiepark Bitterfeld in a Historical Photo (Early 20th Century) and Today Case Study Location: The Chemiepark, Bitterfield in Saxonia-Anhalt a spatial planning process with the local municipali- ment sites to business parks to agricultural farmlands ties and the region. Such a spatial planning process, to solar energy to carbon forests. These remediation as led by the Mingo County Redevelopment and repurposing activities can be of such a signifi- Authority in the coalfields of West Virginia, reduces cant scale that, as shall be briefly shown in the case the costs of reclamation and eventual repurposing studies from Germany, an overwhelming percentage and strengthens community support for new land of the original mining and power plant jobs can be development. New land uses can range tremen- retained during the reclamation and repurposing dously: from recreational parks to waste manage- phases of transition. 46 In the United States, Germany, and China, innovative adequately handle responsibilities related to physical models exist where special government agencies closure and reclamation, the interface with inves- or special purpose vehicles (SPVs) are established to tors—both domestic and international—can best be work upstream with operators to reclaim with future handled by an independent entity such as an SPV. investment projects in mind; or to take over ownership of brownfields, incur the costs of remediation, auction Some of the most successful lignite land repurposing the lands themselves, and then benefit from the profit case studies, which have used SPV models, are in of the land sales. The advantages of establishing a Germany, two are chosen here to illustrate the process dedicated entity to handle the planning and works and achievements of land repurposing on wider are compelling. Not only, as will be shown below, do regional development: (i) Chemiepark Bitterfeld; these dedicated entities handle the operations, but and (ii) Lausitzer und Mitteldeutsche Bergbau- they equally interface with a variety of government Verwaltungsgesellschaft mbH (LMBV). Both devel- and private sectors actors to complete permitting, oped out of the context of derelict, low producing, build communal infrastructure, attract new investors, economically unviable industries of the former East and promote new land uses. Whereas mining compa- Germany / German Democratic Republic (GDR) being nies, or mine closure agencies of governments, can closed. In both cases the lands were remediated and CASE STUDY 2 model. The growth during the late 2010’s is likely Lausitzer und Mitteldeutsche Bergbau- attributable to the land repurposing, marketing, Verwaltungsgesellschaft mbH (LMBV), Germany and management business line replacing the former closure / remediation orientation, and LMBV is wholly owned by the Federal Republic generating long-term jobs resulting from the of Germany. The last lignite mining sites of LMBV economic incentivization LMBV contributed to in were taken out of operation in 1999. Since then the former mining area. the focus has been on realizing decommissioning plans to new and productive future use. There is continued hiring of trainees by LMBV, indicating that their workforce is expanding again, Responsibilities included: 1. Execution of reme- being rejuvenated and kept dynamic by new diation work such as planning, solicitation of hires. Moreover, a significant part of LMBV’s layoffs tenders, award of contracts, supervision, and was absorbed by outsourcing staff to external official turnover/acceptance of completed reme- employers, mostly firms and contractors specialized diation work. 2. Repurposing, marketing, and in services connected to remediation and repur- re-utilization of former mining areas for future posing, including geotechnical / environmental uses. 3. Planning and execution of measures to planning and services; civil contracting, geotech- eliminate dangers of present and future rise in nical stabilization works; property management; groundwater level in former mining areas. afforestation and forest management, etc. In 1994, LMBV absorbed practically all staff from The main lesson is the connection between dili- the former lignite mine operators. With most gent, long-term mine closure planning and labor mines closing in the first half of the 1990’s, many development. A special purpose vehicle (SPV) jobs were lost. However, with funding made avail- could in an initial post-closure phase absorb and able for extensive remediation and repurposing retain at least part of the lost jobs in mining opera- works the losses are less than would have been tions, support a productive spatial reorganization, predicted under a closure-for-compliance-driven and help to create an enabling permitting situation. 47 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia repurposed, a range of new, often innovative economic energy transition could become part of the solution uses identified, and enabling conditions created for to protect incomes and jobs in Western Macedonia. investments and economic development to take hold. Greece has had very positive experiences in the use Labor of SPVs for projects such as the Olympics, Athens Metro, the highway system (Egnatia), etc. Adaptation By working in a harmonized way, and by using spatial for the purposes of land repurposing on the PPC and land planning as a foundation for regional devel- concession are possible. opment, it is possible to imagine how jobs could be created or shifted as the mines and their associated plants progressively shut down. How this might all Energy Infrastructure and Identity come together is represented schematically below, though not representative. Rather, in providing this In reviewing the strategies of several coal regions in graph below we intend to illustrate the connection transition across the globe, preservation of a coal between diligent, long-term mine closure planning region’s energy identity commonly surfaces. This and labor market development. An SPV could—similar makes sense given the history and culture of coal to the LMBV model—in a primary post-operational mining, and the ample infrastructure which remains phase be the principal absorber and retainer of at least even as operations are winding down. One need part of the lost jobs in the mining operations. In subse- only to look to examples in China, the United States, quent phases the SPV could, through its mandate and Poland, and Germany to see that preserving and even activities, support a productive spatial reorganization, promoting a new energy identity for coal regions in help to create an enabling legal and permitting situa- transition makes practical (and political) sense. tion, and thus contribute to an enabling environment for economic growth and job creation. Western Macedonia is no exception to this rule. It has significant energy infrastructure and natural capital However, beyond the existing lignite and power plant (in the form of sun, water, and wind) that, if properly workforce, it is important to consider strategies to analysed, could be harnessed for use in a future create new employment in the region. In other words, alternative energy sector. Indeed, in speaking with labor actions will need to think beyond replacing various stakeholders over the course of our work, existing jobs to generating entirely new sectors for it was signalled that preserving the energy identity future employment needs. This is especially important and energy employment of Western Macedonia in the context of Western Macedonia where existing could greatly facilitate the social acceptability of an high unemployment is already a considerable social overall energy transition in the region. risk. This is illustrated by the fact that registered jobseekers who were laid off from the mining and Greece’s first NECP contains some detail on possible power sector in the last 12 months represent only 3.5% investments and policies that could be imagined. of all registered jobseekers in Western Macedonia, or Overall, the NECP outlines an energy strategy in 934 persons (OAED data, June 2019). which lignite is phased out, and therefore antici- pates an increase in renewable energy deployment Three out of four jobseekers from the mining and alongside natural gas for firm capacity. However, power sector in Western Macedonia are men. They the NECP does not examine in-depth the option are mostly prime-age workers (25-54 years old), which that existing electricity assets in Western Macedonia also corresponds to the population pyramid of the (transmission assets and at least parts of power workforce. Most have been unemployed for less than plants currently fuelled by lignite) could be trans- 12 months (short-term unemployment). The majority formed to use other energy types (natural gas, green (53%) has a secondary education degree. Before gas, or renewables), and therefore is absent that the becoming unemployed, they were working as manu- 48 facturing industries laborers (19%) and applicators/ ments directly relevant to the transition, notably the conservators for internal combustion engines (7%). European Regional Development Fund (ERDF) and the European Social Fund Plus (ESF+). The focus of the Just Transition Fund will be on the economic diversifi- Financing for Transition in Western Macedonia cation of the territories most affected by the climate transition and the reskilling and active inclusion of European Commission’s Just Transition Fund. their workers and jobseekers.42 The JTF will be used The EU is committed to policy based on ambitious primarily to provide grants; the dedicated transition climate and environmental objectives and on partici- scheme under InvestEU will crowd in private invest- patory processes bringing citizens, cities, and regions ments, and the partnership with the EIB will provide together in the fight against climate change and for loans for the public sector. The JTF will operate within environmental protection. In line with the objective of the framework of cohesion policy, which is the main achieving EU climate neutrality by 2050 in an effective EU policy instrument to reduce regional disparities and fair manner, the European Green Deal proposed and to address structural change in Europe’s regions a Just Transition Mechanism to leave no one behind. such as sharing cohesion policy’s objectives in the The Mechanism will consist of three pillars: (1) a Just specific context of the transition towards climate Transition Fund (JTF);39 (2) a dedicated scheme under neutrality. It will be implemented through shared InvestEU;40 and (3) a public sector loan facility with management in close cooperation with national, the European Investment Bank (EIB) Group41 to mobi- regional, and local authorities and stakeholders. lize additional investments to the regions concerned. This will ensure ownership of the transition strategy The Just Transition Mechanism comes in addition to and provides the tools and structures for an efficient the contribution of the EU’s budget through all instru- management framework. FIGURE 18 Post Cessation Labor Development 4,500 -500 4,000 – 3,500 500 3,000 1,000 2,500 1,500 2,000 2,000 1,500 2,500 1,000 3,000 500 3,500 – 4,000 -4 -3 -2 -1 – 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Pre-closure Post-cessation Long-term A ercare Retirements Remediation/Repurposing Mining jobs New jobs (PV planning New jobs (generated Social cost and installation) through economic impetus) Source: Authors’ own simulation 49 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia On 27 May 2020, the European Commission client countries, it aims to focus on three priority proposed a major recovery plan as a response to the themes: green economy transition, supporting coronavirus crisis.43 This plan includes in particular a impacted workers, and regional economic develop- significant increase in funding for the Just Transition ment. For Western Macedonia, initial scoping visits Fund (from EUR 7.5 billion to EUR 40 billion), as well as and discussions with stakeholders has revealed six reinforcement of the second pillar of the Just Transition activity areas under consideration: (i) investing in Mechanism. Taken together, all three pillars of the Just renewables; (ii) district heating; (iii) sustainable infra- Transition Mechanism are expected to mobilise up to structure in municipalities; (iv) regional SME support; EUR 150 billion of investments to ensure that no one (v) skills development; and (vi) capacity support to is left behind during the green transition. implement projects. It is currently finalising its areas of proposed engagement with the government. As concerns Greece more specifically, the transition of the lignite territories (Florina, Kozani in Western Private Sector. Private capital and investments can Macedonia region, Megalopolis municipality in play an important role in financing coal transition. As Peloponnesus) and non-lignite territories with a great seen in countries like Germany, the United States, the potential for Renewable Energy Sources (Aegean Netherlands, and the United Kingdom, the private islands and Crete) will be achieved also with the help sector can support economic transformation and of the “Just Transition Mechanism.” In the original diversification away from coal through investments in Commission proposal for a “Just Transition Fund” new industries and by way of job creation. As detailed (JTF), Greece was allocated EUR 294 million (9th in Section 3.1.2 below, the private sector faces barriers largest recipient). This amount was increased signifi- to effective development in Western Macedonia, and cantly with the revised MFF proposal revealed on 27 therefore it will be important to address the enabling May, to EUR 1,726 billion, remaining the 9th largest environment for private sector to play its role in the recipient. Support from the JTF combined with overall transition away from coal. As will also be further Cohesion policy will assist the transformation of the described in Section 3.3.4, there could be an important economy of Western Macedonia, and can promote role played by the private sector in repurposing of renewable energy sources, where potential is very lands for future investment. Though specific to the high. This is conditional to setting up a comprehen- context of PPC lands, the spillover effects for the region sive Just Transition Plan to be submitted along with could be considerable. Involving the private sector as the relevant draft operational programmes. upstream as possible in planning and preparing for economic transformation would allow, potentially, for European Investment Bank (EIB). EIB is expected more efficient development synergies forged early on to finance both private and public sector projects. It to the benefit of the people of Western Macedonia. is currently finalising its areas of proposed engage- ment with the government. For Greece, it is expected that the above financing sources, along with the government’s own resources44, European Bank for Reconstruction and Develop- would work in a harmonized fashion to support the tran- ment (EBRD). EBRD recently unveiled its institutional sition across Greece’s lignite areas, including Western Just Transition initiative which aims to undertake Macedonia, through a common plan. As prescribed by policy activities and commercial financing to support legislation, this will be the Plan for A Just Development those who stand to lose economically from a green Transition (otherwise referred to as the “Master Plan”). economy transition—be they countries, industries, All Just Transition Territorial Plans, as required by the EC communities, workers, or consumers. Across its for the JTF, will align to the Master Plan. 50 SECTION III 51 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia SECTION III A ROAD MAP FOR TRANSITION Pillar One Pillar Two Pillar Three Government Systems People and Communities Repurposing Land and Assets Review sector policies & laws Review policies & laws for Review policies & laws for Social Protection reclamation and repurposing Assess coal industry characteristics Pre employment retrenchment Review existing mine closure plans Map ministries and agencies Coal Mine Closure planning for workers Assess legacy issues Design a high-level decision-making Define pre employment body (for transition) Identify financial surety obligations retrenchment assistance Clarify ministerial roles & Review capacities, roles & Assess capacity needs of national, responsibilities responsibilities for monitoring regional, and local institutions and reporting (delivery and coordination aspects) Map organizations for social service delivery Assess regional economic Define post- employment assistance Assess land and assets for landscape, including impacts repurposing Outline transition projects to related industries Design funding mechanisms Identify public and/or private Just Transition Outline priority economic partnerships for new growth sectors Identify reclamation and development programs repurposing activities Identify and assess institutions for Map ministries and agencies post retrenchment assistance Identify public and/or private Design a high-level decision- partnerships for repurposing assets making body (for transition) Stakeholder Engagement Assess/Examine economic development agencies OUTPUT 1 OUTPUT 1 OUTPUT 1 Governance Framework Institutional Framework for Governance Framework Social Protection Recommendations for updating Recommendations for updating mining sector adjustment policies Recommendations for updating environmental policies & laws & laws social protection policies & laws Recommendations for updating Proposed high-level decision body Institutional needs assessment for PPP law for sector adjustment and transition delivery and coordination Recommendations for funding Institutional mapping and roles OUTPUT 2 mechanisms for delivery and responsibilities outlined Social Protection and Labor OUTPUT 2 Divestiture Package OUTPUT 2 Reclamation Master Plan Regional Transition Plan Action plan for pre employment Assessment of environmental Outputs retrenchment planning and pre Spatial summary of regional legacy issues employment retrenchment assistance economic landscape Reclamation actions Action plan for post-employment Strategy for regional economic retrenchment assistance OUTPUT 3 development Repurposing of Land and List of potential partners for Summary of potential economic Assets Strategy social delivery development priority programs Identification of land assets for OUTPUT 3 OUTPUT 3 divestiture and/or public-private Regional Transition: Stakeholder Engagement partnership investments Jobs and Economies Strategy List of potential public and/or private Stakeholder mapping partnerships for transition project Stakeholder engagement plan for Delivery of transition projects under Pillar 1, Pillar 2, Pillar 3 Pillar 1 priority programs Road Map 52 Pillar One the Operational Programme for a Just Development Government Systems Transition will commence. This program will be the principal vehicle for delivering financing from the Just Transition Mechanism. It will cover all affected The Operating Context for Transition territories and will align with the Just Transition Territorial Plans above. In addition, as the Road Map The governance arrangements proposed further proposes below, a specific planning process for below cover two distinct phases of the transition, PPC lands should be considered under this Phase 1. as described here, and respond to the operating Such planning could culminate in the establishment context in which Greece intends to structure its of a Special Spatial Plan (as detailed in Section 3.3.4 response to coal transition. below) to facilitate all eventual, and individual, invest- ment permitting on the lands. Phase 1: For the purposes of this present Road Map, the period of detailed transition planning is referred Concurrently, during Phase 1, certain preparatory to as Phase 1 and will run at least to the end of 2021. works and pilot projects could commence. Already As stated in the Executive Summary, the Road the national authorities have indicated plans for Map delivered by the World Bank to the national a bridging program to be financed mainly from authorities and regional authorities of Greece in existing national funds, and which would priori- Western Macedonia constitutes a combination of tize several preparatory works in advance of the recommendations, tools, and methodologies in full Operational Programme coming on-stream support of a detailed transition planning exercise in 2021/2022. Indicative activities to be funded to be undertaken by the government thereafter. under this bridging program: (i) quick win clean In Phase 1, two sets of planning documents will energy projects; (ii) completion of detailed feasi- be completed before the end of the calendar year bility studies for pilot projects found in this Road 2020: (i) the Plan for A Just Development Transition (as Map under Section 3.2.1 below; (iii) development set forth in Act of the Cabinet of the Ministers no 52 of a repurposing strategy for PPC lands; and (iv) first /23.12.2019, and is otherwise known and referred remediation and repurposing works which could to as “the Master Plan;” and (ii) the Just Transition commence and absorb labor from the coal value Territorial Plans for each affected coal region (that chain. The diagram below illustrates the ‘universe’ is Kozani-Florina, Megalopolis and the Islands of planning foreseen in Phase 1 and the relationship region). Furthermore, during Phase 1, planning of these various elements have to one another. FIGURE 19 ‘Universe’ of Planning Foreseen in Phase 1 Land Use Repurposing Plan for a Just Development Road Map Assessment (PPC Lands) Transition (”The Master Plan”) Just Transition Territorial Plans Transitional Programme (Kozani – Florina – Megalopolis 2020 – 2021 + the Islands Region) Operational Programme 2021 – 2028 53 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia Phase 2: Following the detailed transition plan- Case Studies ning exercise in Phase 1, implementation would begin. Based on evidence and lessons learned from In approaching the proposed design of a governance past and on-going transition processes in other structure for the transition in Western Macedonia, coal-dependent regions, implementation will be The World Bank reviewed eight (8) governance a long-term engagement, running potentially over country case studies related to coal sector transi- several decades (as seen in Germany, the United tion. Past case studies included Romania, Poland, Kingdom, and the United States). What is unique and Russia where the World Bank had been actively about Phase 2 in Western Macedonia is the current involved in coal sector adjustments programs window of opportunity to engage quickly in renew- with these governments. To complement lessons able energy sources (RES)—solar including floating learned from these past programs, contemporary solar—providing again opportunities for immediate case studies were chosen from Europe (namely labor absorption. As implementation phases of Germany and the Czech Republic) alongside South coal transitions are typically defined in milestone Africa and Canada (where planning is very much at periods based on budgeting cycles in the country, its early stages). Lastly the United States—Appalachia for present purposes, Phase 2 would align with the in particular—was also included given the unique Operational Programme period and the date by example it represents of a governance structure that which the majority of mines and plants will close: has been active for more than 50 years in economic 2028. Whereas the bulk of the government’s efforts and social development of the region’s coalfields.45 to affect a well-managed transition will be captured under the Operational Programme, other efforts will Given the potential role for a Special Purpose Vehicle be underway that support the Master Plan. This may (SPV) to coordinate and implement land reclamation include public-private partnerships for repurposing and repurposing activities on PPC lands, the World of PPC lands. Below are summary descriptions of Bank studied in detail various structures used in Phase 1 and 2. Greece to implement mega-projects such as Attiko Metro, Athens 2004, and Egnatia Motorway S.A., but With these elements in mind, the following models also the structures used for the promotion of invest- were considered for the context of Greece. ments through European Structural and Investment Funds, and the structures used for the promotion of strategic investments, as foreseen by law. FIGURE 20 The most striking observation in reviewing the Preliminary Phases of the Transition various case studies relates to breadth of actors now involved in planning for transition. Past governance models—including even the contemporary example Phase 1: Planning Phase 2: Implementation of the Czech Republic first phase of RE:START— focused heavily on planning and decision-making at Until end of 2021 Until end of 2028 the national level. For the cases of Poland, Romania, Based on extensive Operational program and Russia during the late 1990s, only after broad analysis of the region’s economy and labor market Additional repurposing parameters of coal sector adjustment programs work on PPC lands Substantial stakeholder were concluded did national Ministries engage engagement Communications and substantially with the regions concerned. This too stakeholder engagement Master plan with cascading is observed in the case of the first iteration of the plans and programs Monitoring and evaluation Czech Republic’s RE:START program. By contrast, Budget and financing identified most contemporary cases of preparing and imple- Selected preparatory works menting transition programs are driven largely from and feasibility studies completed the regions up—such as now in the case of the Czech 54 FIGURE 21 A Summary of the Pros and Cons of Different Governance Models Central Quick decision making Tendency to not give consideration to the region’s Government Top Short-term efficiency specific needs Down Approach Lack of broad stakeholder engagement Aligned with national priorities Risk for regional resistance Difficulty in effective implementation as local and regional authorities not adequately on board Local and Regionally generated transition plans Requires strong relationships to central government Regional Bottom Regional buy-in secured authorities to secure financing Up Approach Policies between levels of government may not be aligned Hybrid Approach Aligns levels of government around the Delineation of roles and responsibilities across + Special Purpose transition and its vision levels of government must be clear to avoid Vehicle Broadens stakeholder buy-in overlaps An SPV can streamline management, implementation and monitoring Clear role and responsibilities 55 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia Republic’s second phase of RE:START, Poland’s Czech Republic’s RE:START Re-imagined recent planning on transition, Canada’s Task Force work, and South Africa’s Transition Commission. The example of RE:START in the Czech Republic Whilst contemporary models certainly still retain was considered most appropriate for the context of a national government focus, a central feature is a Western Macedonia out of all the case studies, namely much broader base of decision-making for transition because its administrative structure is very similar to that coming from the regions, even outside government. of Greece—with line Ministries that extend towards the In the case of Poland, the Voivodeships are driving regions and regional governments who play an active the planning and implementation of the transition coordination role with the central government on with a less formal engagement arrangement at the policy matters. A further point of interest in the Czech national level. In Upper Silesia, for instance, the Republic case is its flexibility: that the government Voivodeship’s advisory committee is made up of over re-evaluated the structure in 2018, following requests 30 different interest groups concerned and affected from the regional governors for more decision-making by the coal sector transition. The United States’ in the planning and implementation phases of the Appalachian Regional Commission (ARC) is the only transition. Following this request, the program’s imple- outlier to this general observation on the nature of mentation principles were updated and entered into governing structures. It has been operational since effect on 1st January 2019. These new principles trans- the 1960s, and has, since the late 1970s, retained formed the organizational structure, transferring the a very bottom up approach, giving Governors and management of the RE:START Strategy from the Office their state entities significant planning and imple- of the Government Plenipotentiary to the Ministry of mentation freedom, based on needs of the coal Regional Development and its National Executive mining areas. In the team’s estimation, ARC remains Team. Along with these changes, regional structures the most mature yet understated transition gover- (so called “Regional Permanent Conferences”) were nance model operating globally today. strengthened in order to eliminate disproportions in DIAGRAM 2 RE:START Governance Structure Ministry of Ministry of Regional Branches Regional Development Industry and Trade of MITs Agencies Regional Regional Regional National Executive Team Advisory Team Permanent Permanent Permanent Employees of MoRD + Ministries + Representatives Conference of Conference of Conference of Employees of Regions of Regions + Commissioner Moravian-Silesian Karlovy Vary Usti Region Region Region Team Team Team Team Working Working Working Working Pillar A Pillar B Pillar C Pillar D Group A Group B Group C Group D Team Team Team Working Working Working Pillar E Pillar F Pillar G Group E Group F Group G Experts, Ministries, Members of Working Groups of Regions 56 the implementation of the RE:START program. This Environment. Below is the revised RE:START structure aimed to give each region additional autonomy in Diagram 2, now in its second iteration. implementation, particularly to ensure maximum absorption capacity of funds in each region. Of interest to the context of Western Macedonia is the role played in the Czech Republic by the Regional In this new structure, the National Executive Team was Permanent Conferences (RPC) of the coal regions in charged with coordinating and facilitating amongst defining and implementing the annual Action Plans Ministries the implementation of the Action Plans. related to transition. At the regional level, the RPCs— Its 11-member team handles the various levels of presided by regional governors—are the guarantors communication between regions and the Ministries, for the implementation. Meetings of the RPCs are provides (where asked) technical advice on planning convened to manage the Strategy, and the RPCs are and implementation, and monitors performance of extended to include representatives of the regional the Action Plans. Furthermore, it acts as the national tripartite of the relevant regions. This structure guaran- focal point for the Coal Regions in Transition Platform. tees the involvement of members of the regional and The National Executive Team had offices in the three municipal self-governments, economic and social structurally disadvantaged / coal regions. partners, universities, employers’ associations, etc. The RPC meetings are convened by its president at In this new configuration, the Ministry for Regional least twice a year. Development is responsible for submission, on a yearly basis, of the Comprehensive Action Plans Here one RPC (for the Usti Region) is shown to illustrate of each region. It is also now the guarantor for the the broad range of interest groups who participate in implementation of the Strategy at the national consultations and planning for transition. government level; and is the chief mediator and facilitator between various levels of government Beneath the executive level, a series of thematic working implementation. Lastly it is responsible for overall groups have been established, dealing with key issues communication with the public on RE:START. The (or “pillars”) of the transition, including: (i) entrepre- Ministry is supported by an Advisory team which neurship; (ii) investments; (iii) research and science; (iv) steers the overall RE:START program. This advisory human resources; (v) social stabilization; (vi) environ- team convenes twice per year. ment; (vii) infrastructure; and (viii) public administration. Members of the working groups represent municipal- Other Ministries which play an important role are ities, regional offices, the Labour Office, the Agency the Ministry of Industry and Trade and the Ministry for Social Inclusion, the business sector, and NGOs. of Finance. The former ensures activities related to Each working group on the regional level is mirrored measures concerning SME support, technology and by an expert team on the national level, which supports innovation development, digitization and robotiza- the National Executive Team in the development of tion, FDI inflows and export opportunities, energy proposals for action plans and support measures. savings and raw materials policy. The latter secures and delivers the national funding for implementation Proposals for development projects are collected of the specific development programmes within the bi-annually by the teams for the thematic working Strategy (through individual ministries). groups and the working parties of the RPCs: At the national level, the Government of the Czech 1) via an electronic questionnaire intended for the Republic is the holder of the Strategy, including the professional public at the regional and national Action Plans. The main guarantor at the government levels, including the responsible ministries; level is the Ministry of Regional Development, in close cooperation with other relevant ministries, with special 2) through calls to the general public made via roles of Ministry of Industry and Trade and Ministry of media; 57 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia DIAGRAM 3 Regional Permanent Conference of the Usti Region Agency for Social Association of Inclusion Labor Office Local Self-Governing of CR – Regional Authorities Office Statutory Ústí Region Cities – ITI Economic and Association for Social Council of the Rural Reconstruction Regional Permanent Conference Ústí Region of the Ústí Region Union of Towns Local Action and Municipalities Groups Academic Sector UJEP – Regional NGOs University Regional Innovation Regional Chamber Strategy Manager of Commerce Working Group Working Group Infrastructure Tourism Working Group Working Group Employment Working Group Education Economic Development and Special Miniteams 3) based on personal meetings with the regional 3) proposals to be discussed and elaborated at stakeholders within the framework of the a later stage. working parties and platforms; and The shortlisted proposals are further developed, 4) by selecting proposals previously discussed consolidated into a draft Action Plan, and submitted during RPCs. to the extended RPCs for consultation. The draft Action Plan is approved in the form of the minutes of To shortlist the proposed development projects, the meeting of the relevant RPCs and signed by the individual thematic working groups evaluate the president of the RPC. The approved Action Plan of proposals using several criteria and classify them each region will then be submitted to the Ministry of in groups: Regional Development, who is responsible for inter- departmental consultations regarding the Action 1) proposals to be further elaborated in the short Plan, before it could be finally submitted to the term, with their implementation being likely to government for discussion. commence within 6–18 months; Whereas such a lengthy description of how project 2) proposals to be further elaborated, with their proposals arrive in the annual plans for Czech preparation being possible only in a longer term Republic’s RE:START program may, at first glance, because of its intensity, complexity, and potential appear a level of detail not required at this stage, need for further analyses and verification; and the team highlighted it here, nonetheless. Namely because the process by which the Czech Republic’s 58 transitioning regions solicit project proposals and established under the article 1 of the Act of the Cabinet develop final project short lists for the National of the Ministers no 52 /23.12.2019 (henceforth “the Executive Team’s consideration captures principles AC”) (henceforth “the Committee”). Pursuant to past of transparency, stakeholder engagement, and experience in Greece, it is recommended that this communication that are critical to the success of Committee be assigned a role similar to that of the any coal transition. Indeed, as further showcased National Committee for the 2004 Olympic Games in the United States’ case of ARC, participatory and (NCOG-2004), albeit with a streamlined composi- consultative grantmaking processes have arguably tion, and with the support of the Steering Committee been an important factor in driving local ownership (established pursuant to art. 3 of the AC). for economic transformation away from coal. For Greece, these observations cannot be overstated. Pursuant to the art. 1 of the AC, the Committee consists of the ministers of: A Model for Greece Environment and Energy (as its chairman) In December 2019, the Hellenic Republic announced Finance a national inter-ministerial committee for the transition, and therefore the team worked with this national Development and Investments structure as the starting point for envisaging further elements of a governing system for transition in Interior Greece. In addition, due attention was given to the relative success and positive feedback provided by Rural Development and Food key actors involved in special purpose vehicles, as described in Section 2.3. Indeed, it is the team’s view and the deputy ministers of: that the governance structure for the preparation of the Athens 2004 Olympic Games can be taken as a Environment and Energy responsible for Energy pattern for a proposal on the governance structure and Mineral Resources for the preparation, organization, and implemen- tation of the undertaking of the Just Transition of Development and Investments responsible for Coal-Dependent Regions to a Post-Lignite Era. It is Public Investments and the National Strategic the recommendation here that the Athens Olympic Development Framework. governance structure should be accordingly modi- fied and adapted. Below are the recommended The tasks of the Committee are set (in an indicative additions to the Act of the Cabinet of the Ministers no way, art. 2 of the AC) as follows: 52 /23.12.2019 which established the government’s high-level structure for planning a just development The approval and monitoring of the imple- transition in Greece. The proposed additions to the mentation of the “Plan for a Just Development structure as found in the Act are divided into Phase 1 Transition” (the “PJDT”) (ie: The Master Plan). and 2 to best support the actions envisaged. The PJDT will be an integrated multidimensional development roadmap for the affected coal dependent regions in the country. During Phase 1 The coordination of the public consultation with As concerns the “Governmental Committee for the Just the local authorities, vehicles and societies, joint Development Transition to the Post Lignite Era of the representatives of private entities and chambers, Region of Western Macedonia and the Municipality along with the rendering of directions during the of Megalopolis of the Region of Peloponnese,” it was preparation and materialization of the PJDT. 59 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia The coordination of the exploitation of funding Macedonia and Peloponnese and the CEO of the sources. PPC. The SC can hear representatives of the compe- tent ministries, public vehicles and organizations, local In the meetings of the Committee competent minis- authorities, trade unions, civil servants, experts etc. ters and the chairman of the Steering Committee can participate. A Technical Secretariat was recently established in May 2020 to support the SC in the preparation The Steering Committee (the “SC”, established and implementation of the PJDT (Master Plan) and its pursuant to art. 3 of the AC) is responsible for subjacent Territorial Just Transition Plans as well as with the rest of the SC’s responsibilities (art. 104 par. 5, law The preparation and materialization of the PJDT/ 4685/2020). This is in line with the Czech Republic Strategy; and model whereby external experts provide coordi- nation support to the functioning of the Steering the proposal of the agenda for the Committee’s Committee. The Ministry of Environment and Energy meetings. recently hired a National Coordinator to lead this process under the existing Steering Committee (see The chairman of the SC acts as the coordinator organogram below). The Technical Secretariat, in line of the PJDT. Members of the SC are the Secretary with other governance models such as the United General of Financial Policy, the Secretary General States and the Czech Republic, could build out its of Public Investments and National Development team with technical experts and persons responsible Planning Framework, the Secretary General of Energy for all communications and stakeholder outreach, and Minerals, the Regional Governors of Western as outlined in Section 3.1.3 below. Staff of the ORGANOGRAM 1 Phase 1 Governance Structure Inter-ministerial Committee confirm national-level political commitment, set up recommend final transition plan for approval, report on Steering Committee, approve final transition plan communications and stakeholder engagement Steering Committee set up Technical Secretariat advise and dra transition plan Technical Secretariat confirm Regional Committee’s role as suggest regional transition goals and priorities, regional guarantor of transition plan provide preliminary regional transition project ideas, provide relevant regional data per request Regional Committee 60 Secretariat would be non-government employees established with the various stakeholder groups to who would take on their responsibilities on a full-time solicit ideas and transmit information with respect to basis. Its members would have the skill sets related the transition. Using the stakeholder mapping table to the major areas of transition—labor, SME devel- found in Section 3.1.5 below, the regional structure— opment, regional planning, etc. As seen in both the managed by the Governor’s office—could choose key Czech Republic and the United States, aligning staff interest groups to participate in the regional structure. to technical areas of the transition improves quality Given the visible and important role played by the of the programs eventually funded. In addition to existing Coal Regions in Transition Working Group for technical staff, there should be a full-time Monitoring Western Macedonia, it is proposed that this Working and Evaluation (M&E) position, who could also Group be transformed into a Secretariat to manage a be responsible for stakeholder engagement and significant amount of the day-to-day work of the struc- communications (see organogram below). ture, on behalf of the Governor’s office. At the regional level, a similar model to the Regional In addition to the plans to be developed (Master Plan Permanent Conferences (RPCs) in the Czech Republic and Territorial Just Transition plans), it is suggested, is proposed during Phase 1. Important here is to based on other coal transition experiences, that ensure that permanent and regular channels are the Governor of each affected region prepares and ORGANOGRAM 2 Phase 1 Regional Structure Technical Secretariat Technical Secretariat Officer Community Leaders Public Entities and and Regional Council Private Sector liaison agent between LLC and the region Universities, Non-governmental Academia, etc. Organizations Regional Committee presided by the Governor bi an io n nua m is s l s ta keho l sub Secretariat with l n nu a Enterprises along of kic der consultation, and a l s Thematic Working Groups k-star t t os a the Coal Value Chain r a n s it io n p r o j e c t p ro p Leaders (areas to be defined) Municipal Employment Public Power Offices and Labor Unions Corporation Thematic Thematic Working Group Working Group 1 Thematic 3 Working Group 2 61 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia submits for Committee approval an Annual Strategy human capital, and an alternative energy identity. Statement, which takes into consideration, as appro- priate, area-wide action programs or similar plans In determining ‘areas of greatest need’ one of the prepared. The Strategy sets forth the vision for the first actions of the S.A. will be to develop an index region, independent of any programming assistance, system to determine allocation of resources based and seeks to provide a road map for regional action on on a set of indicators related to unemployment, per Just Transition. To the extent applicable, the Strategy capita income, and poverty rates.46 shall explain approaches under consideration to achieve a goal or goals with resources other than oper- The objectives of the S.A. would be as follows: ational funds. The Strategy Statement shall set forth, and explain the reasons for, the state’s cost-sharing or The implementation of the “Operational matching requirements for grants as well as any other Programme for the Just Developmental transi- applicable funding limitations. The Strategy Statement tion 2021-2027;” shall also explain whether, and how, exceptions to such requirements and limitations will be granted. The support of the beneficiaries under the Operational Programme; Phase 2 The pulling in of prospective investments; It is proposed, based on prior experiences inside The monitoring of the implementation of the and outside of Greece, that a Société Anonyme (S.A.) PJDT, the Territorial Just Transition Plan(s), and the be established, excluded from the public sector, Special Spatial Plan(s); and functioning under the rules of private economy, and governed by its legislation. The S.A. should operate The branding and communication of the Just under the supervision of the “Committee” (via the Development Transition undertaking. SC). Its purpose would be: In order for the S.A. to achieve its purpose and “To assist its coal-dependent regions in objectives, it would do the following: managing a just development transition from lignite mining and coal-fired Incubate quick win and kick start projects through power-generation.” a bridging program for 2020-2021/2. More specifically, The S.A. will do so by promoting the coal regions’ economic development through an established In cooperation with federal, administrative - framework for joint national and regional efforts to regions, and local agencies, sponsor early implement the PJDT (i.e., the Master Plan). The public stage pilot projects designed to foster regional and private investments made in the coal regions productivity and growth; under the supervision of this S.A. will be concen- trated in areas of greatest need. Mayors, governors, - Sponsor and support reclamation and repur- and their offices will be responsible for promoting the posing projects that showcase innovations in PJDT, its corresponding operational programs, and environmental stewardship; and the general work of the S.A. to ensure that mature and relevant projects are submitted for consideration of - Encourage the pursuit of alternative energy tech- funding through a managed grantmaking process. nologies in line with the NECP. As the coal regions receive assistance, it is expected that they will develop a diversified economy, one Use all legal means, mechanisms and procedures built on necessary infrastructure, strengthened for the implementation of the “Operational 62 Programme 2021-2027.” More specifically, and Act as convener of knowledge and dialogue. in accordance with the various plans and strat- More specifically, egies for a transition mentioned above, it will support the following areas; - As required, conduct and sponsor investigations, research, and studies relevant to the future of the - Investing in infrastructure necessary for economic coal regions and their required transitions; and human resource development, such as but not limited to roads, energy, broadband, and - Provide a forum for consideration of problems skills education; of the coal regions and proposed solutions and establish and utilize, as appropriate, citizens and - Developing the coal regions potential indus- special advisory councils and public confer- trial value chains, beyond lignite and coal-fired ences; and power generation; - consult publicly, communicate and disseminate - Building entrepreneurs by improving the access the provisions of the Operational Programme, of the coal region’s businesses to the tech- PJDT, TJTPs, SSPs, the developmental and nical and financial resources necessary to their funding potential and opportunities along with development; the potential and opportunities for the local populations. - Improving the skills of the coal region’s current (and future) workforce; Prepare and manage continuous outreach and communications on the undertaking of the Just - Generating a diversified regional economy; and Transition to a Post-Lignite Era as a Programme of National Significance with Major Economic, - Promoting environmental stewardship through Social and Environmental Implications remediation and repurposing of major mining lands and mine assets. Establish versatile [ad hoc] working groups for the resolution of technical issues when the Maximize coordination and resources efficien- need arises cies. More specifically, The S.A. should have, at a bare minimum, the following - Review and study, in cooperation with those staff with the following roles and responsibilities: involved, all national, regional, and local public and private programs and, where appropriate, A Director recommend modifications or additions which will increase their effectiveness in the coal regions; A Deputy Director Encourage private investment in industrial, - A Technical Team dedicated to each area of the commercial, and recreational projects; Master Plan - Serve as a focal point and coordinating unit for A Communication Person coal region programs; and At least 2 Research and Evaluation team members - Seek to coordinate the economic development activities of, and the use of economic develop- The S.A. will be responsible for monitoring and ment resources by, relevant development agen- reporting on the plans and programs. As described cies in the region. previously in this Section, the Master Plan and the 63 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia Territorial Plans will be the responsibility of the Technical Keep the Parliament fully and currently informed Secretariat to develop during Phase 1, with inputs from about problems and deficiencies in the adminis- the regions and other relevant stakeholders. More tration of the funding program and operations. specifically then the LLC will be responsible for, During Phase 2, considerable interest has been Coordination of Planning. In developing shown at the regional level for some type of special regional plans (territorial or otherwise), the S.A., purpose vehicle (SPV) to be put in place to manage along with the regions, and local governments, the potential land use planning process on PPC shall give due consideration to the goals, objec- lands. The team agrees that certainly as far as the tives, and priorities of the other levels of planning repurposing work is concerned, an SPV makes and, to the maximum extent possible, consult considerable sense. Should a holistic approach— with the citizens of the coal regions as these plans using the land repurposing methodology and linking are being developed. it to a SSP—be pursued by the authorities, there is ample precedent in other post-mining transitions47, Coordination of Investments. The government as shown in Section 2.3 above, to consider an SPV. understands that the development planning An SPV could be an entity created with participation process for a Just Transition at all levels must of all key players around a large transition project necessarily involve more than just the programs including closure, remediation, repurposing, and and resources of the Operational Programme, economic regeneration. In the case of Western and, therefore, resolves to make maximum use Macedonia, PPC could be a major shareholder of the of other federal and regional resources to further SPV, as well as the regional Government, affected the objectives of the PDJT. municipalities, and others. An advisory or steering committee could include additional stakeholders Public Participation in the Regional Planning from the NGO/CSO scope, academia, specialized Process. Each region and local government will agencies, and EU / international organizations. The assure an adequate opportunity for the affected SPV could be given a variety of potential mandates, public to participate in the regional planning which are listed as a menu of options below: process. 1. To assume ownership / control of (post) Regular inspections and investigations of the S.A.’s mining lands; work should be accomplished either by the National Transparency Authority (art. 82, law 4622/2019) or 2. Act as receptor and manager of financial means an independent office established within the S.A. (subsidies, public funds, investments) for reme- More specifically, the purpose of such an indepen- diation and repurposing; dent oversight would be to: 3. Act as turnkey contract manager for the required Conduct and supervise independent audits and civil works; investigations relating to programs and opera- tions of the S.A.; 4. Be a key driver of land marketing and redevelopment; Provide leadership, coordination, and recom- mendations for promoting economy, efficiency, 5. Assume a key role in obtaining environmental and effectiveness in the administration of and other required permits for the repurposed funding program from all funding schemes to lands; and be available, and to detect and prevent fraud, waste, and abuse in such programs and opera- 6. Provide educational and training incentives in inno- tions; and vative technologies and job profiles, for example, 64 in land remediation and repurposing; renewable dialogue, review information stored in land repur- energy installation, operation, and maintenance; posing database and request updates as needed, environmental / geotechnical services; or innova- and present land repurposing proposals in key meet- tive agricultural approaches (for example, biofuel ings and decision-making processes. production, carbon forests); for this purpose, the SPV could develop dedicated trainee / apprentice- In summary, the governance structure of Phase 2 ship programs (see LMBV case example below). would look as follows: The SPV would also have an important role as a In Phase 2, the region would retain its regional “moderator” of discussions around implementation structure, as per Phase 1. The only difference being of SSP and the land repurposing methodology, that the S.A. becomes the key interlocutor with the curate information, manage a continuous stakeholder regional stakeholders during implementation. ORGANOGRAM 3 Phase 2 Governance Structure Inter-ministerial Committee provide financial and legislative support, report implementation progress on a biannual monitor implementation of the transit plan, approve adjustment basis, request financial and legislative support to the transition plan on yearly basis if needed, update on stakeholder engagement Steering Committee report implementation progress on a quarterly basis, convey supervision supervision requets from coal regions, prepare documentations Société Anonyme (S.A.) coordination Special Purpose Vehicle for Reclamation and Repurposing approve regional submit proposal for kick-start transition projects, report under agreement with transition projects with implementation progress on a quarterly basis, request Steering Committee, perform budget and timeline, supervise budget and timeline revision if needed, report any major closure, reclamation and project implementation event that requires management attention timely repurposing of land and assets Regional Committee 65 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia ORGANOGRAM 4 Phase 2 Regional Structure Société Anonyme (S.A.) Société Anonyme (S.A.) Field Officer Community Leaders Public Entities and and Regional Council Private Sector liaison agent between Société Anonyme (S.A.) and the region Universities, Non-governmental Academia, etc. Organizations Regional Committee presided by the Governor bi an io n nua m is s l s ta keho l sub Secretariat with l n nu a Enterprises along of kic der consultation, and a k-star t t os a l s Thematic Working Groups the Coal Value Chain r a n s it io n p r o j e c o p t p r Leaders (areas to be defined) Municipal Employment Public Power Offices and Labor Unions Corporation Thematic Thematic Working Group Working Group 1 Thematic 3 Working Group 2 The Outline of a Regional shown below, the types of sectors and activities Economic Transition Strategy commonly found in transition strategies reflect this for Western Macedonia search for diversity in development interventions. As has been pointed out in Section 2 above, this practically means giving equal weight to medium- Transition Strategies at a Glance to long-term growth opportunities as to short-term social protection measures. Transition strategies—whether in China, the United States, or EC coal regions—retain several key areas of In the United States, rigorous monitoring and evalua- focus, as summarized here. Whilst governments and tion of the government’s efforts to rebuild former coal non-state actors naturally draw attention to the need mining areas provides evidence to this effect. For to support people (particularly workers) during the example, in interviews with the ARC, responsible for transition, it is important to highlight that at the root the development strategy for the coal regions of the of any transition strategy is the objective of structural Eastern and Central United States, staff highlighted transformation of a region’s post-coal economy. As how over the last 10 years ARC has moved away 66 DIAGRAM 4 Developing the Strategy for Summary of Sectors from Just Transition Strategies Western Macedonia Alternative Energy Build alternative energy economy from existing In the context of Western Macedonia, four transition natural and human capital, physical assets pathways are proposed, based on the following methods and data sources: (i) an extensive literature Environmental Reclamation and Repurposing Integrated planning & repurposing of former review of available strategic documents for Western mining lands for investment and public good Macedonia; (ii) analysis of the region’s demographics and employment statistics; (iii) review of other cases Small Business Development of rural regeneration in Greece; (iv) multiple site visits Build new economies and provide job opportunity across the region to interview small businesses; (v) extensive interviews with stakeholders; and (vi) a Research & Development Linked to SME development by providing the comparative review of other coal region transition platform for innovation to occur strategies in the EU, China, and the United States.49 Therefore the transition pathways emphasize existing IT Infrastructure attributes and assets of the region, but also redress Expand access to facilitate business, education, and entrepreneurship the absence of certain enabling factors for entrepre- neurship, creativity, and human capital to flourish (See Education Text Box 1 for an illustration of an enabling factor). Short-term and long-term skilling for new In this sense, all the proposed transition pathways economies are needed and are interrelated; and they reflect the necessary diversification required for the local Youth Bring future generations formally into the transition economy to move away from a reliance on energy exercise to be a part of the change alone to create value across a multiplicity of sectors in the region. The pathways and the proposed projects were framed by the following questions, raised most from an emphasis on reskilling and training of former frequently in the literature on the region’s future, and coal workers to broader transformative interventions by stakeholders during consultations: built on promising economic sectors (IT, agricul- ture, health care, engineering, and manufacturing). How to tackle high unemployment rates in the This strategic pivot away from a focus on reskilling region, and to create new jobs? towards SME development was informed by a dedi- cated monitoring system tracking progress on a Towards which direction to differentiate the county-by-county basis.48 Longitudinal data tracked economic base of the region, to ensure its pros- by ARC since the 1970s revealed that despite large perity in the long run? efforts to retrain and reskill workers, the regions themselves were not experiencing substantial prog- How may the specific milieu of a mono-industrial ress in basic indicators related to education, house- region be activated to face new challenges? hold income, health, and well-being. In response to these findings, ARC has, over the years, placed How to ensure the stability of the socio-eco- greater emphasis on broad economic recovery as nomic milieu that PPC activities offer, by also a catalyst for job creation and growth. This type of adapting to a more sustainable mode of energy approach to transition can also be seen in the Czech production (and consumption)? Republic and in Germany. 67 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia Judging from the data on the nature and disag- same problems, in which governments view the gregation of unemployment, how to ensure that need to mitigate potential impacts of transition the economic and social benefits of develop- in these disadvantaged areas.50 This does not ment are broadly shared, while the outcome of mean focusing public monies alone on R&D but the regional development process is inclusive? also means coordinating with tertiary education institutions to deliver training and education to How to ensure the creation of economies of scale meet growing sector needs. that could maximize their potential benefit? (ii) Land and asset repurposing: a variety of projects Three enabling factors are key to making the transi- and initiatives would best be placed on PPC tion pathways truly successful: lands, given land and infrastructure availabilities. Therefore, cooperation with PPC and the notion (i) Government support: a sustainable economic of repurposing for future investment will need to pattern requires that the region focuses on its be secured. competitive advantages and fast-growing indus- tries globally by boosting those sectors that (iii) Investment incentives: the region faces various need to be pushed and helping them overcome economic and investment disadvantages, as barriers they face. This approach draws from described in Section 2.1. Designating the region similar tactics in other countries that face the (on a transitional basis) as a special economic zone—in a manner consistent with the evolving EU state aid rules and other legal restrictions— would facilitate investment. A further incentive TEXT BOX 1 could be to allow projects selected to take Business Leaders Cite Egnatia Motorway advantage of the fast track procedures that as Enabler to Commerce and Trade apply for strategic projects in the country. The Green New Deal and Just Transition Mechanism Egnatia Motorway is one example of enabling will provide funding opportunities for both investment that has transformed business public and private initiatives, acting as a further opportunities for Western Macedonia. In incentive for investment to the region. This could interviews with various businesses, good be considered under a specific operational connectivity was cited as one of the compel- program for Western Macedonia. ling reasons for establishing a business in the region, as travel time has now been reduced by half. Two examples are evoked here. EcoBlueberries and B&T Composites S.A. are Detailed Transition Pathways two innovative, export-oriented companies started in Western Macedonia. Both company founders are from the region; but had been (i) Alternative Energy Transition Pathway empha- living abroad for some time and wished to sises the utilisation of other energy sources that return. EcoBlueberries in Amynteo produces do not include lignite for electricity and heating blueberries—an uncommon fruit in Greece— production. It revolves around the use of Renewable and therefore exports his product mostly to Energy Sources (RES) for energy production, the Northern Europe and the Middle East. B&T development of energy storage systems, and the Composites S.A. in Florina specialises in repurposing of existing power plants. Due to falling the manufacturing of advanced composites costs of clean energy technologies, the region components. would benefit from the potential of alternative energy sources and energy storage, alongside 68 natural gas for grid capacity. The region’s natural the clear aim to transform Western Macedonia and physical assets for alternative energy and to the most e-connected, high-tech, futuristic energy storage include the well-developed trans- region in Greece by 2030. This entails an unprec- mission network, post-mining lands, the power edented digital revolution and the whole region plants which will close in a phased approach, water working towards this way: from the development bodies, and a workforce with energy-related skills of an entire spectrum of new services available and social identity. through the internet to intensification of Science, Technology, Engineering and Mathematics (ii) Start-up Economy Transition Pathway high- (STEM) and robotics education in public schools. lights the development of new and dynamic Investments would include infrastructure and industries in the world economy, such as skills to support STEM-focused activities. energy and ICT. It is based on the notion that the Region has a comparative advantage in the (iv) Green Region Transition Pathway promotes energy sector, while a shift from conventional value-addition of existing production chains energy sources will create new opportunities and makes linkages to other burgeoning sectors for start-ups, spin-offs, and ‘spin-outs’ and may (such as biomass and waste management). It lead to a paradigm shift in the regional economy. incorporates digitization and new technologies Subsequently, the model that will initially be in food systems and agriculture to make farming applied in the energy sector could be repeated and the food industry of the region more envi- in other industries, hence leading to the trans- ronmentally and economically sustainable. Agri- formation and upscaling of successful non-en- food processing seems to be a promising sector, ergy activities already taking place in Western especially if combined with a “Beyond meat” Macedonia and the modernisation and diversi- and/or a “Food 4.0” approach that disentangles fication of the local economy. from the standard food processing techniques and standard products, setting the foundations (iii) Digital Region Transition Pathway focuses on for what will be the norm in agricultural supply accelerating digital transformation of the urban chains in the next decade. and rural areas in the region: an imperative tool for retaining youth and promoting economic The description and next steps of the four transition growth in the region. This transition pathway has pathways are summarized in the following tables below. FIGURE 22 The Four Transition Pathways Alternative Energy Green Region Transition Pathway Transition Pathway Start-up Economy Transition Pathway Digital Region Transition Pathway 69 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia TABLE 6 Indicative Phases of Development of an Alternative Energy Transition Pathway Alternative Energy Transition Pathway 1) Phase 1—Series of interlinked feasibility or pre- Rationale feasibility studies would be undertaken: Western Macedonia is endowed with natural Studies of PV and wind generation on a capital to take advantage of renewable energy large-scale, of reconversion of specific opportunities: excellent solar resources, good power plants to solar with molten salts wind sites, and substantial land and water bodies thermal storage, of pumped storage sites, of available for solar and wind generation. It has the batteries, of biomass, of natural gas, and of potential worth investigating for: pumped storage, green gas (including green hydrogen). power blocks in power plants that could be reconfigured to run on heat generated by renew- Economic, financial, environmental, and able electricity with the aid of thermal storage, social costs and benefits of the pathway. the possibility of large-scale stationary storage in batteries, and the production in future of green gas Potential for employment and for the promo- to be utilized in power blocks or otherwise. tion of innovation. Western Macedonia could be a flourishing and inno- Financing options for the investment phase vative center of economic growth and employment, from commercial sources. leveraging its comparative advantage and social capital to the full, as an alternative energy transition Impact on Greece and the broader region pathway. Benefits would not be for Greece alone; and should include the implications for cross- rather for neighboring countries in the Balkans, by border electricity interconnections. becoming a center for alternative energy and for energy storage services. This would also enable As part of the feasibility assessments, smart much higher penetration rates of variable renew- land repurposing approaches would be used ables in Greece and the Balkans. Such an energy to screen and analyze the post-mining lands to transition, preserving the energy identity and identify zones with the best fit for alternative energy employment of Western Macedonia, can be energy production and energy storage uses. expected to greatly facilitate the social acceptability of an overall energy transition in Greece and the 2) Phase 2—Mobilization of investment: broader region. Whether privately- or publicly-financed investment into those new and reconverted/ Next Steps repurposed assets whose viability have been established by the studies of the first phase. The alternative energy transition pathway requires further analysis to determine its feasibility. As a first Stakeholder consultation process, and step, draft of the terms of references for the studies detailed environmental and social impact need to be prepared. Funders of the studies, studies in order to prepare an environmental together with relevant Greek entities, will draw up and social management plan to mitigate any detailed terms of reference for the studies. negative external impacts. 70 TABLE 7 Next Steps Start-up Economy Transition Pathway It is suggested that the identification of opportu- nities for investing in higher value-added niche Rationale products and services in the sectors aforemen- tioned takes place. This will help to focus phases 1 Western Macedonia’s start-up ecosystem is at an and 2 below on specific segments of the market. embryonic stage. However, Western Macedonia Also, to overcome the regional absence and low presents some key conditions for start-up and interest of business angels and venture capitalists ICT activity and investment, including a favorable for Western Macedonia, the weak entrepreneurial geographical location, the existence of tertiary culture, the low levels of business innovation, and education institutions with relevant expertise, and a the weak incentive structure (incubators, acceler- dominant energy industry that may trigger demand ators, etc.) a pilot project should run with the aim for innovative services and products. Moreover, to establish a large-scale, Europe-wide network of both energy and ICT have been identified as key incubators primarily in the energy and ICT sectors. growth sectors by the regional (and the national) smart specialization strategy. In short, to strengthen Indicative Phases of Development of a Start-up its growth potential, Western Macedonia needs Economy Transition Pathway to foster innovation performance and digital trans- formation of the local economy. A pathway that 1) Phase 1: For enhancing research and innovation contributes to the development of RDI start-ups in in the energy sector in the Region, it is essen- the energy sector should be a priority for the region, tial to empower each of the quadruple helix as linking young entrepreneurship to a major and components (government, industry, academia, shared local resource with great potential will lead and civil participants) and the links between to dynamic, mutually supportive, long-term and them. This can be established through special sustainable growth. programs, such as research scholarships, intern- ships, etc. Clearly, a Start-up Economy pathway needs to be forward-looking, while enhancing the resilience 2) Phase 2: For supporting the setup of enterprises, and sustainability of its economy and society. These it is crucial to create a framework for the develop- can be achieved by preparing Western Macedonia ment of innovative entrepreneurship in the sector for a fast-coming future and by diversifying its aforementioned. A Business Incubator Centre economy. Following the technological revolution should be established to support young entre- in renewables and storage, it is anticipated that the preneurs from early-stage innovation to their first next technological outbreak will be in agriculture presentation to the market and to promote SMEs and the agri-food sector. Therefore, the Start-up development. Economy Transition Pathway could help towards this direction, by initiating efforts in the “Beyond 3) Phase 3: For the scale-up of enterprises, meat” and/or “Food 4.0” sectors, too. Finally, the improving their access to financing and to new circular economy concept connects those sectors markets through relevant programs is vital. and should also be investigated. 71 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia FIGURE 23 Start-up Economy Pathway Programme Intervention Logic Research institutes, 3 research scholarships Incubators of new “Proof of concept” ideas and spinoffs in real environment 4 5 Spin-offs in energy sector New and innovative 6 products and services Digital hubs, clusters, knowledge innovation Critical communities, open 1 mass collaboration networks 7 New and Researchers, innovative Extroverted scientists, experts Start-ups in products and businesses, energy sector Critical 8 services attraction of 2 Businesses, mass investments internships and exports 9 New and innovative products and services Business angel’s fora, competitions, digital marketing, trade fairs, etc. Stage 1 Stage 2 Stage 3 TABLE 8 preneurs and young highly skilled people, while at Digital Region Transition Pathway the same time addressing the needs of an aging and unevenly distributed population. Very close to the Region there has been much progress in flag- Rationale ship initiatives that attract interest among officials and policymakers Europe-wide. Digitization can leverage human and social capital, entrepreneurship, knowledge, intelligence and creativity. Moreover, it can change the way of Next Steps doing things and working effectively through collaboration, networking, and participation. The imminent task that needs to take place is Western Macedonia is in dire need of modernizing getting the pathway’s buy-in from the Regional its production base to become attractive for entre- Authority and the local stakeholders. Unless 72 those entities agree that there are substan- to support the use and continuous demand tial benefits and transformative powers of a for data and the upgrade of digital tools. digital region pathway that relies mainly on the digital advancements, they will not commit to 2) Phase 2 concerns the supply and operation a long-term agenda to lead the way forward in of the necessary systems that could revolve that regard. around functions and utilities such as: smart governance, smart economy, smart mobility, Indicative Phases of Development of a smart environment, smart living, etc. Digital Region Transition Pathway Phase 3 is about developing citizens’ 3) 1) Phase 1 is about governance and more digital skills to ensure access to educa- precisely on the organizations’ competence to tion, human resources management, in an define their needs clearly and be able to inte- inclusive society that enhances creativity grate the solutions into their wider operations. and fosters innovation. Equally important is the organizations’ ability CASE STUDY 3 Sarantaporo.gr Flagship Local Digital Projects in Greece In 2010, a small team of young people stemming from Sarantaporo village, opposite Olympus Smart Trikala mountain, set forth to showcase to their fellow villagers the webpage they had built for their The rural town of Trikala has been described as village. It was then when they realised that there the nation’s “first digital city” and was shortlisted was poor internet access since the telecommu- as one of the “top 21 smart cities” in the world. nication companies had no financial interest in Albeit in a critical financial situation some years investing in relevant infrastructure in this sparsely ago, Trikala has been able to deploy several smart populated and remote area. That was the starting solutions by taking advantage of EU funded proj- point for them to design and deploy in collabo- ects. Moreover, the city has been offering up a ration with the local community the Sarantaporo. test site for national government initiatives and gr Wireless Community Network, which has private companies like Cisco, VivaWallet, Sieben, expanded ever since to eleven villages. The aims and Parkguru. Through smart applications, it have been to boost the local economy, improve has managed to reduce its debt, to improve the quality of life for local communities, enhance quality of life for its citizens, and most notably to social cohesion, provide incentives for locals market itself as a modern and attractive place to to stay in place and restrain youngsters’ migra- live and work at. tion to cities, bridge the digital gap between rural areas and cities, and expand the idea of a community networks in other regions of Greece. Sources: How Trikala Became the First Smart City of Greece? and Sarantaporo.gr 73 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia TABLE 9 other pathways promoted. Also, entities such as the Green Region Transition Pathway respective Directorates of Agricultural Economy and Veterinary of the Regional Authority, the School of Vegetable Production in Florina, Development Rationale Agencies, and other relevant organizations need to work together and prepare farmers, especially the Western Macedonia produces legumes, common younger ones, that they will need to embrace more cereals, apples, peaches, aromatic herbs, grapes, actively new business opportunities, innovations, beans, red peppers, and potatoes, while also and technological advancements from now on. having specialization in livestock and animal prod- ucts. The production of some of those products, Indicative Phases of Development of a Green mainly apples, beans, and potatoes, is a conse- Region Transition Pathway quence of the competitive advantage of the Region due to the natural conditions and its soil. Many 1) Phase 1—Actions to accelerate the development of these products are certified as Geographical of innovative entrepreneurship in the agri-food Indication Products, which demonstrates their sector should be implemented, including the link to the geographical area of production and financing of the establishment and operation a specific quality label, hence resulting in better of the business incubator foreseen under the prices. However, the sector has been facing Start-up Economy Transition Pathway. several limiting factors and structural deficits, such as access to market, irrigation, lack of capacity 2) Phase 2—Infrastructure projects should be building and supporting structures for farmers, etc. pursued to increase employment and income in the area. Greenhouses and hydroponics A Green Region Transition Pathway adapted to may well combine the specialization of the the advantages of Western Macedonia aims to area in energy and district heating, as well as add value to agriculture and agri-food processing the management of water resources. industry and help to best coordinate with other pathways, especially considering the changing 3) Phase 3—Softer measures to improve business policies for agriculture and the environment at the competitiveness will be pursued, such as the EU level and the growing dependency on other restructuring of family farms, the promotion of commodity markets, such as the energy market. producers’ organizations, and the transition to the production of local, high-quality products: Next Steps Improved access to digital infrastructures and services will facilitate the introduction of Mainstream policies and measures, such as the digital and precision farming. Common Agricultural Policy, the Community-Led Local Development (CLLD) programmed for the Promotion of the biomass trade center will area or the national and regional smart special- pave the way for the integrated management ization strategies, will support a great deal of this of waste produced by agriculture. pathway; therefore, the pathway as such does not need a particular buy-in. What needs to be done, Increase of agricultural and food products though, is to confirm the projects proposed under supply will create the necessary economies this pathway and investigate in more detail the of scale that will boost other industries, such potential for the development of synergies with the as research, logistics, and transport. 74 TABLE 10 TABLE 11 Alternative Energy Transition Pathway Green Region Transition Pathway Pilot Projects Pilot Projects The production of energy for electricity and This model focuses on new and innovative farming heating purposes through renewables and other methods and need-based support on sectors such alternative sources, such as: as energy, water, technology, training, marketing, credit, etc., to increase the effectiveness and effi- Using solar energy (with thermal storage) and/ ciency of agriculture while reducing the carbon or biomass and/or natural gas/green gas in the footprint of the sector. power plants currently fired by lignite (in order to save power plant jobs and reduce emissions). Development of value chains for traditional (apples, peaches, legumes—especially beans, Large solar photovoltaic parks for the elec- potatoes, saffron, sheep and goat meat, dairy trolytic production of green hydrogen (and products, barley) and new products (energy other renewable gases) for attracting gas/ plants, aromatic and pharmaceutical plants). heat consuming industry, for export, and for energy storage. Small scale irrigation projects for rural growth and climate adaptation. Large scale photovoltaic parks, due to the availability of brownfields in the area and the Hydroponics and greenhouses projects that ease of connection to the transmission grid. benefit from the area’s competitive advan- tages, mainly energy and land availability. Wind parks. Training and capacity building for young District heating units using natural gas or entrepreneurs and incumbent workers to combinations of alternative energy sources become the future leaders in a revitalized that do not include lignite. agri-food industry. Production of heat for industrial and agricul- Promotion of innovative ideas and creation of tural processes. start-ups, spin-outs, and spin-offs, especially in emerging sectors such as precision and digital agriculture, as well as high protein Energy storage projects, such as: food and meat substitutes. Conversion of lignite plants to thermal plants Promotion of agricultural products in new using RES with molten salts storage. markets abroad. Combinations of RES and pumped hydro Micro-credit programs for farmers. energy storage stations. Battery storage. Green gas storage (hydrogen, etc.). 75 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia TABLE 12 TABLE 13 Start-up Economy Transition Pathway Digital Region Transition Pathway Pilot Projects Pilot Projects The Start-up Economy Transition Pathway should Digital Region pathway has the clear aim to aim to take advantage of the dominant industry in transform Western Macedonia to the most e-con- the Region: nected, high-tech, futuristic Region in Greece by 2030: Establishment and operation of Quadruple Helix structures at a regional level. Capacity building and training projects for the operators of such systems, mainly in the Establishment of pre-incubators/incubators public sector. to nourish potential start-uppers. Supply, operation, and upgrade of smart Upscaling of pre-incubators/incubators into systems, including the construction of relevant techno-parks and clusters. infrastructure, where necessary, applicable in: Facilitation of startuppers in their first business – smart governance steps by ensuring adequate financial support and access to financing. – smart economy Capacity building of incubators and/or tech- – smart mobility no-parks’ expert staff and innovative resident entrepreneurs/SMEs. – smart environment Contests of business ideas in the energy or – smart living other selected fields. Capacity building and training projects for Upscaling of start-up economy initiatives users of applications (businesses and citizens). through the replication of start-up activities in other lignite regions, so to create a critical Communication activities for the uptake of mass that will attract business angels and systems and applications and dissemination other funds. of their results. 76 Indicative Pilot Projects selection of the pilot projects and therefore the project details (including governance and financing) are considered indicative at this stage. For a full The below indicative pilot projects derive directly appreciation of the methodology developed, kindly from the strategy and the pathways above. Due to refer to the stand-alone report, Development of the the COVID-19 pandemic, the team was unable to Outline for a Regional Economic Transition Strategy apply the methodology developed to do the final for Western Macedonia. Business Innovation Centre (BIC) for Renewable Energy Sources, Storage and Circular Economy Project Location Kozani, within or close to the urban fabric. Body Responsible A stand-alone organisation with related entities as main stakeholders (indicatively: Region of Western for Project Macedonia, University of Western Macedonia, DIADYMA, Chamber of Commerce and Industry of Implementation Kozani, Association of ICT Companies of Northern Greece-SEPVE, Development Company of Western Macedonia-ANKO, etc.) Project Description Objective: to provide assistance on advanced technologies to young and potential entrepreneurs for the production of innovative products and services in renewables, energy storage, and circular economy; dissemination, awareness-raising, and familiarisation of the business and research community and the public on advanced technologies through relevant publicity actions and networking. Module 1: Ensuring the Business Innovation Centre Infrastructure The first module deals with the acquisition of the BIC hosting infrastructure that consists of the necessary building infrastructure and the supply/installation of the required operating and state-of-the-art ICT equipment. The Center will be used as a venue for experimentation and testing of business ventures, expression of creativity/innovation, and free movement of business ideas. ICT equipment will serve to train, experiment, design, and create prototypes using digital and technological innovations. Such innovations will comprise 3D Printing, new materials and product designs, sensors & actuators, Micro- electromechanical Systems, robotic technology and autonomous systems, cyber-physical systems, high-performance computers, artificial intelligence, cloud computing, Internet of Things, data mining, big data analysis, laser technologies, and general internet services (for example, web development and design, e-commerce, etc.). Preparatory work for the establishment of the BIC includes the following: Task 1.1: Ensuring the BIC Hosting Infrastructure with the Basic Equipment Task 1.2: Supply of specialised technological equipment Module 2: Operating the Business Innovation Centre An operator of the BIC will be selected. The operator will provide assistance and key advisory services to beneficiaries for the development of their business ideas and their transformation to products and services. Beneficiaries of the services of the BIC can be divided into: 1) Entrepreneurs, students, and/or startuppers who intend to undertake venture projects in the energy and waste management sector and wish to mature their business ideas in order to develop them into business initiatives. 77 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia Business Innovation Centre (BIC) for Renewable Energy Sources, Storage and Circular Economy (continued) Project Description 2) Those skilled in software, who wish to use the equipment to produce test products in the renewables (continued) and energy storage sectors and circular economy. 3) Groups or individuals wishing to be trained and experiment with advanced 3-D printing and printing machines and sophisticated sensors, actuators, and microelectronic systems. 4) Students wishing to know possibilities of advanced technological equipment. The operator of the BIC will be responsible for the selection of the groups/individuals who will benefit from the services provided by the Centre. In addition, the operator will be responsible for the following: Task 2.1: Technological equipment utilisation services Task 2.2: Evolving business ideas Task 2.3: Operation and management of the BIC Module 3: Dissemination, Awareness, Publicity for Innovation, the Renewables, Energy Storage, and Circular Economy As part of the project, dissemination, awareness-raising, and familiarisation work will be carried out with stakeholder groups on the opportunities presented in the alternative energy and storage as well as in the circular economy sectors in Western Macedonia, and in particular the use of BIC’s advanced technological equipment as Key Enabling Technology. Project Budget EUR 800,000.00 (VAT included) for renting a suitable place for three years (2021-2023) and making relevant improvements, as well as for buying the relevant equipment. EUR 800,000.00 (VAT included) for the operation for three years (2021-2023). EUR 400,000.00 (VAT included) for connection to public utility networks for three years (2021-2023). *Prices above derive from market research Financing Source(s) For all three sub-projects: Cohesion Funds or EIB (75% of the budget) or EBRD or Green Fund Time Schedule 2020 - 2023 2024 - 2028 > 2029 Short-term Medium-term Long-term Put in place by late 2020. Start Operating after 2023, and operation by early 2021 for the period after 2028 preferably based on its own resources Challenges N/A 78 Start-up Economy Networking and Scale Up Pilot Project Project Location Kozani. Partners from other coal regions should participate, too. Indicative Body Entity will be assigned as the promoter of the Start-up Economy pathway, preferably coinciding with Responsible the entity that will be managing the Business Innovation Centre. for Project Implementation Project Description Objective: to intrigue the development of a large-scale, wide network of incubators in the field of renewable energy in various coal regions. The network of incubators will offer standardised and high-quality services in the transformation of business ideas to services and products. Therefore, it will enable synergies in their value-chains, while also stimulating the interest of potential investors (for example, business angels and venture capitalists), as, by definition, a critical mass of start-ups creates more interest from investors. To this end, the expected results will be the following: The incubation of start-ups in each of the participating countries; The creation of new jobs in each of the participating countries, especially for young people, women and NEETs (Not in Education, Employment, or Training); The creation of an EU-wide network of hubs and start-ups specialised in renewable energy in the coal regions; and The development of global value chains among the network start-ups. Module 1: Research and consulting This is a preparatory step to specify energy and ICT niches that should be targeted by the project. It should build on deep industry insights, practical experience, knowledge of emerging trends, and threats and opportunities in the energy and ICT sector. This step should take place for each city participating in the network, hence providing a clear picture of the targeted energy and ICT niches. Module 2: Competition and incubation During this step, a competition and incubation programme for start-up companies in energy and ICT will be carried out, in each coal region taking part in the project. The aim is to support the best ideas and help entrepreneurs through the difficult early stages to transform their ideas into good businesses with a positive economic, environmental, and social impact. An ecosystem of energy start-ups and spinoffs will be created and incubated for some time, during which training will be provided to young entrepreneurs to materialise their ideas into products and services. Module 3: Training Ambitious entrepreneurs have to be trained in sustainable business principles through a standardised start-up curriculum during the incubation process. In parallel, training-of-trainers (T-o-T) will be provided through a specific curriculum for trainers and mentors. Module 4: Networking The module comprises the organisation and carrying out of Business Angels Weeks. These will be transnational campaigns featuring business angels and entrepreneurs while promoting matchmaking between entrepreneurs and investors by raising awareness and interest. A powerful virtual cooperation platform will be created that will connect members of the ecosystem, promote the exchange of 79 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia Start-up Economy Networking and Scale Up Pilot Project (continued) Project Description knowledge and experiences, enable training and communications, facilitate the advertising of start- (continued) ups and success stories, events, projects, and business opportunities. It will also assist new businesses by connecting them to investors. Module 5: Communication and dissemination Project participants will participate in national and international industry events, providing an engaging story to interested audiences. The project should facilitate people and businesses in getting to know each other through study visits and common events. Project Budget Each partner should be allocated an amount between EUR 150,000 and EUR 250,000, depending on the structure of the consortium, local costs, level of participation, and project duration. *Prices above derive from market research The cost largely depends on its duration and the number of participant regions. The project is foreseen to last three years to ensure the mainstreaming of its activities. Financing Source(s) Sources of funding depend on the project budget, its geographical coverage, and specifications. Based on these aspects, the most likely sources of funding appear to be the European Territorial Cooperation Programmes of the new programming period 2021-2027, Horizon Europe and the new programme for single market and competitiveness of enterprises that will substitute COSME. Also, the EC can mobilise additional resources combining different funding sources and finance pilot projects. As those paths include competitive procedures for project selection, the mobilisation of EC’s resources specifically for financing the pilot project should be investigated, too. Time Schedule 2020 - 2023 2024 - 2028 > 2029 Short-term Medium-term Long-term Start of operation Operating after 2023, and for the period after 2028 preferably based on its own resources Challenges N/A Conversion of Coal Plants Into Renewable Energy with Storage Project Location In the energy Municipalities of Western Macedonia, taking place preferably for Meliti, Agios Dimitrios III, IV, V or Ptolemaida V units. Body Responsible PPC on its own or in partnership with other private sector companies. for Project Implementation Project Description Objective: to repurpose and make use of retired coal power plants to serve the green economy by storing renewable energy in thermal batteries, delivering the stored energy back to the grid using the former coal plant’s existing power blocks and grid connections. 80 Conversion of Coal Plants Into Renewable Energy with Storage (continued) Project Description The following paragraphs present the conversion of power plants with molten salts high-temperature (continued) thermal storage to convert the coal plant into a plant for renewable electricity with storage, to retain the baseload characteristic of a coal plant and associated heat production. Germany’s National Centre for Aerospace, Energy and Transportation Research, DLR (Deutsches Zentrum für Luft- und Raumfahrt) has been investigating the idea of utility-scale molten salt thermal energy storage systems with several hours capacity that nowadays have almost ten years of commercial track record. Solar energy is collected during the day, converted into heat and stored in large molten salt tanks to produce electricity in the hours after sunset. There are plants with up to 17 hours of storage capacity that allow for 24/7 baseload operation. It is proposed here to use such molten salt thermal storage systems to retrofit retiring coal plants. In the retrofitted coal plant, the molten salt would be heated with electrical resistance heaters fed with renewable electricity. In such a way the surplus variable electricity available from PV and wind power plants can be stored as thermal energy. Upon later demand, this stored thermal energy will be discharged and reconverted into electricity by the steam cycle of the “retired” coal plant reused for this purpose. This will decarbonise the power park while granting 100% dispatchability utilising most of the existing equipment in the plants while saving jobs. It will also permit combined supply of heat, possibly for the district heating system and also surplus heat for industrial and agricultural purposes. Furthermore, this will make use of existing power plant infrastructure and grid connection and proven operational power plant procedures. All the components are mature technologies; only the combination of technologies is new, but a pilot plant has been started now by RWE and DLR at a lignite plant in the Rheinisches Revier in Germany. The molten salt mixture used in this storage system is a binary mixture of Sodium Nitrate (60%) and Potassium Nitrate (40%)—they are abundant as basic components of mass used fertilisers. This molten salt mixture is non-flammable, nontoxic, and non-penetrating in ground soil—it freezes at soil contact. The molten salt mixture is durable for up to 35 years life time of the storage system without degradation or need of a refill. Its high mass-specific energy density is magnitudes higher than water in pumped hydro and is technically comparable with electrochemical batteries. It is capable of achieving high temperatures up to 565°C at ambient pressure. The salt mixtures can be used as heat transfer fluid and easily exchange heat with other working fluids like water/steam. Project Budget The capital cost is estimated to be about 100-120 Euro/kWhe storage capacity. Assuming 20 Euro/ MWhe PV electricity cost for storage charging and 40% steam cycle efficiency, the dispatchable discharging electricity will then cost about 60-70 euros/MWh. The feasibility study will determine the cost more precisely. Financing Source(s) EC (Just Transition Fund), EIB or EBRD could cover part of the project cost, while private funds could cover the remaining. Time Schedule 2020 - 2023 2024 - 2028 > 2029 Short-term Medium-term Long-term The project can finish by 2023 Operation Operation given that construction will take about 18 months from the point of decision, based on a feasibility study. PVs installation will need less than that. Challenges The delivery of the feasibility study (6-month duration) could help determine the preferred technology. 81 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia Development of a Biomass Trade Centre Project Location Covers the whole of Western Macedonia with the potential to expand to other regions. Body Responsible A Triple Helix cluster of biomass producers and end-users, with the active involvement of the Regional for Project Waste Management Company and the assistance of research and academic institutions. Implementation Project Description Rationale: Biomass is a renewable source of energy with significant potential for energy supply and job creation in the Region of Western Macedonia. Ultimately, substituting fossil fuels with biomass can generate a competitive business model as bioenergy entails the development of a whole new value chain that includes the production of biomass (planting and harvesting), the densification of biomass (for transport cost reduction), its storage, transport, and conversion into fuel. Biomass can become an appealing source for heating or for generating electricity, provided that: 1) Sufficient demand is generated from the conversion of lignite-fired power plants to use biomass; and 2) Reliability of supply is guaranteed. The conversion of lignite-fired power plants to use biomass seems like a plausible solution, as it is a perfect source to lower energy dependence on lignite. To add to this potential, the installation of biomass boilers to existing district heating networks and/or to new ones significantly increases the potential for biomass to play a pivotal role in the transition from fossil heat and energy. Still, to make use of this potential, a regional market for biomass products needs to be created consciously. Local biomass logistics and trade centres are key enablers to achieve this target; they would act as regional hubs and platforms to bring the wood supply from forest owners, sawmills, other wood producers, and farmers together with the demand for both small and large biomass quantities within a short transport distance. They can organise the provision, processing, and dispatching of biomass products. They do this through logistics, storage, and marketing, often complemented by services such as direct delivery, heat contracting, and maintenance. Trade centres guarantee the quality of biomass products and their long-term availability. Successful biomass logistics and trade centres in Slovenia, Austria, Germany, and Finland have proven that the concept works (i.e. Biomass Trade Centre http://www.biomasstradecentre2.eu/ biomass-trade-and-logistics-centers/ ). The creation of such trade centres in the optimal harvest-to- delivery locations in Western Macedonia would facilitate the use of biomass and the energy transition of the region. Module 1: Selection of the Optimal Harvest-to-delivery Locations The optimal harvest-to-delivery locations shall depend on the type of biomass feedstock (bulk density, energy content, seasonality of availability, moisture content), local conditions, and the targeted use. A feasibility study would investigate how to take advantage of the biomass potential in the area better, taking into account the availability of land in the depleted mines and the location of the converted power plant. Module 2: Establishment of the Logistics and Trade Centre This would comprise the following: Designs and permitting procedures. Construction of sheltered storage silos at various locations across the Region. Construction of a big storage facility with heavy equipment such as forwarders, skidders, tractors, and trailers, as well as equipment for the conversion of biomass to the final product. 82 Development of a Biomass Trade Centre (continued) Project Description Module 3: Target Groups Engagement and Capacity Building (continued) Everyone that benefits from a trade centre needs to be engaged: forest owners, forest operators, municipalities, farmers, power plant operators, and private customers. Target groups should be approached and their active engagement and capacity building should constitute a fundamental and integrated element in all the work carried out during the project cycle, though various forms (workshops, training, field visits, etc.). Project Budget The total cost of supplying solid biomass feedstock for energy use can be expressed as the addition of the production, pre-treatment, and transportation costs. All these costs are highly sensitive to local conditions including opportunity land cost and logistics. The fact that there is abundant land available close to the lignite plants is an asset that can bring the cost down, significantly. Still, a feasibility study will determine the cost more precisely. Financing Source(s) EC (Just Transition Fund), EIB or EBRD could cover part of the project cost, while private funds could cover the remaining. Time Schedule 2020 - 2023 2024 - 2028 > 2029 Short-term Medium-term Long-term Feasibility analysis, Construction and operation Operation mobilisation of local actors, design and permitting Challenges The delivery of the feasibility study could help determine the financials and scope. In the case of collective investment by a group of forest owners, farmers, etc. a lot of effort for their mobilisation is necessary. Standardisation of the product needs to take place, assumedly with the assistance of a research centre. Greenhouses Cluster—Zero Waste Energy and Circular Economy Project Location The first stage of the project should be located preferably close to PPC land. Body Responsible Municipalities have initiated similar projects and subsequently proceeded to the leasing of the for Project facilities51. An Energy Community could be created for this purpose, too. Finally, the University of Implementation Western Macedonia could be a potential beneficiary of a relevant call. Other entities (including private sector entities) should be investigated as potential implementation bodies. Project Description Objective: to establish a greenhouses cluster to take advantage of the excess thermal energy that will be produced in Western Macedonia, once the combined heating power plants are converted to thermal process plants that are no longer lignite based. The project comprises a real-life application of the circular economy principles. Therefore, it should also be used as a demonstration facility for the dissemination, awareness-raising, and familiarization of the business and research community, as well as the public with advanced technologies based on the Circular Economy’s principles as applied to greenhouses. It should be noted that a recent innovation52 on the operation of the greenhouses is to capture CO2 and distribute it at appropriate levels in the greenhouses. The project should examine this potential, such as considering a strategic investor. 83 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia Greenhouses Cluster—Zero Waste Energy and Circular Economy (continued) Project Description Module 1: Ensuring the Greenhouse Infrastructure (continued) The first module ensures the required funding of the said project in the form of public and/or private sources. Also, it deals with the necessary designs and permits, the acquisition of the land required to host the infrastructure needed, the construction of the building infrastructure, and the supply/ installation of the state-of-the-art growing and operating equipment. To this end, it deals with all the necessary steps to ensure the smooth delivery of the project. At the first stage of the cluster development, the project will be located close to the storage facilities and existing district heating pipelines to ensure that the cost of the grid development remains limited. Task 1.1: Feasibility and design studies, land acquisition, and permitting A. Feasibility and design studies B. Land acquisition C. Permitting processes Task 1.2: Procurement of equipment and construction Task 1.3: Greenhouse construction Module 2: Operating the Greenhouse The operator of the Greenhouse will be responsible for the following: Task 2.1: Operation and management of the Greenhouse Task 2.2: Developing business ideas Module 3: Dissemination, awareness-raising, familiarization with advanced technologies based on the Circular Economy Dissemination, awareness-raising, and familiarization work will be carried out with stakeholder groups on the opportunities presented in the alternative energy and zero waste principle as well as in the circular economy sectors in Western Macedonia. Project Budget An indicative budget for 3.5 hectares of greenhouses would be EUR 9,000,000 (VAT included) for the Modules described. The expected time of completion would be two years, and the number of jobs created could reach up to 120-150 persons. *Price and expected time of completion above derive from a similar recent construction in Greece53. Financing Source(s) For all three modules: Cohesion Funds or EIB (75% of the budget) or EBRD Time Schedule 2020 - 2023 2024 - 2028 > 2029 Short-term Medium-term Long-term Start constructing by early Operating after 2023, and 2021. Put in place by 2023. for the period after 2028 preferably based on its own resources. Challenges The feasibility study should make a market sounding for potential operators. 84 Smart City and Smart Village Twinning Project Location The main towns and the remote villages of Western Macedonia. Indicative Body Municipalities. Responsible In the case of Community Network, other entities (for example, the University, Hospitals, etc.) should for Project be investigated as possible stakeholders providing services in the context of their social responsibility. Implementation Project Description Objective: to provide support for the implementation and enforcement of smart cities and smart villages applications in the region. More precisely, the twinning strives to share good practices already developed in the city of Trikala and Sarantaporo mountainous area with the respective towns and villages of Western Macedonia and to strengthen territorial cooperation and long-term relationships between the different communities in the region itself. It builds up capacities of Western Macedonia Municipal Authorities and people throughout the transition process. At the same time, it helps them identify their deficiencies in their broadband capacity and make any improvements deemed necessary, hence, resulting in progressive, positive developments in the region. We foresee a twinning project that brings expertise in the area to achieve concrete operational results in the field of smart cities and villages and further beyond by better marketing those places. Trikala, a once rural infamous town, has managed in less than two decades to become a pioneer in smart city applications and synonymous to good quality of life. Nowadays, it attracts not only the interest of the scientific community but also investments and tourists. Likewise, Sarantaporo, a once secluded mountainous area, has been able to bridge the digital gap that added up to its remoteness. Today, people in Sarantaporo can use internet for communication purposes, but also to run their businesses better. The project is articulated in several activities corresponding to the expected results and foresees workshops, training sessions, expert missions, study visits, purchase and installation of equipment, the delivery of studies, and supply of support services, etc. We propose a flexible approach, in the context of which Trikala and Sarantaporo each decide on their own the specificities of how they provide their support. This means that they have framework agreements with the beneficiary Municipalities up to an amount that they see fit to provide their experts’ working days. Any purchases and installation of necessary equipment, any purchase of consumables, any supply of services, etc. are made by the beneficiary Municipalities. Transferring expertise cannot be done in a predetermined way, and the time that is needed cannot be foreseen for each case. The projects will not run equally successful everywhere and certainly not at the same pace. As parts of the Municipalities will transcend from beneficiaries to self-sufficient users and developers of applications, they will disengage from the initial process and enter into a new stage of twinning that will be designed for mature cases. Trikala and Sarantaporo will also grow and be able to provide more services and share more experiences with Western Macedonia Municipalities. Currently, the services that will be deployed in Western Macedonia are the following: An open access wi-fi network for towns and along the main highways of the Region. It will provide open access to e-mail, social media, file transfer, online communication services, etc. A self-sustained community wireless broadband network providing internet connectivity for rural areas, following the steps of Sarantaporo.gr. Initially, Municipalities could provide the equipment (masts and repeaters) and the open access points to the internet, evolving to local community managed infrastructure as people build the necessary capacity. A hub for recording and processing any complaints and problems about the daily operation of each city. The issues identified will be forwarded to the responsible department, and the repair will be monitored while informing the applicant on the progress. Provision of electronic healthcare; both to vulnerable groups that live in the towns of the Region and have mobility issues, as well as to (older) people and patients living in remote and secluded villages. 85 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia Smart City and Smart Village Twinning (continued) Project Description Capacity building to improve the digital skills of people, enabling them to maintain a webpage and (continued) engage in e-marketing and e-commerce through her/his webpage and social media. Capacity building to maintain, expand, and manage the local community network infrastructure will further empower local citizens. The beneficiary Municipalities must demonstrate commitment and ownership of the replicated practices ensuring their sustainability. In the context of city-related services and applications, they need to mobilise the necessary staff that will run the project. In the case of rural and remote areas, a community-led approach is envisaged to ensure the viability of services and their continuation. To that end, for rural areas, the project is instead a shared commitment among people residing there. Project Budget There is no specific ceiling on the budget. Once thresholds are exceeded the budget could immediately increase. Indicative Cohesion Funds or EIB (75% of the budget) or EBRD Financing Source(s) Time Schedule 2020 - 2023 2024 - 2028 > 2029 Short-term Medium-term Long-term Implementation can start Operating after 2023, and for immediately. the period after 2028 preferably based on its own resources Challenges Buy-in from the people residing in the remote and mountainous areas of the Region. Stakeholder Engagement Maintaining consistent stakeholder engagement across various constituencies at the national and local level is critical to ensuring the maximum level Rationale of buy-in from all parties to the final Master Plan and Territorial Just Transition Plans. Continuous stakeholder engagement is a crucial element of all the stages of planning and imple- The main purpose of the proposed stakeholder mentation of the transition. A case in point is the engagement program is to ensure informed deci- land use planning process proposed for PPC lands, sions regarding the government’s plans for transition where stakeholder engagement involvement is that are inclusive of the views of impacted workers an important determining factor in the quality and and communities, industry, local and national govern- sustainability of the final plans. Consultations should ment, private sector and financing institutions, donors, specifically target the linkage with spatial planning and non-governmental organizations—and which are processes and existing plans for the external lands, also inclusive of particularly vulnerable groups among both on regional and local levels, and should solicit the impacted population and interested parties. input and ideas from a wide range of stakeholders, Whereas social dialogue is quite mature on the topic including, for example, business associations, farmers’ in Western Macedonia, and in the energy municipali- unions, environmental organizations, trade unions, ties, it is advisable that the government seek to create producers and distributors of energy and water, etc. stronger, official linkages between interest groups in 86 the region and the capital. This could take the form To promote the public understanding of the of a simple quarterly national platform meeting that post-lignite transition in a coherent, consistent brings various interest groups together. It would manner, reaching all sections of the population provide a space for the government to communicate in Western Macedonia, and relevant stake- its plans and to seek feedback and perspectives from holders at national level. affected stakeholders. In Phase 1, this task could be managed by the Technical Secretariat and be trans- To ensure that the key messages are communi- ferred in Phase 2 to the S.A. cated consistently and coherently. Throughout the transition process, it would be To strengthen understanding of the post-lignite important to arrange special outreach to young people, transition through interactive communication since their commitment and engagement in the tran- processes resulting in increased public/commu- sition process is vital for the region. West Macedonia nity awareness, engagement, and participation not only has the large unemployment rate in Greece, in developing and implementing the transition but also the largest out-migration of young persons, strategy. thereby losing its labor force. Reaching the youth would involve close cooperation with the educational To foster two-way and interactive communication institutions of the region, youth and sports clubs as building a culture of transparency and account- well as the OAED (employment agency), and any other ability and trust that stakeholders’ concerns are organization/association targeting youth. Attention being heard and addressed would be paid to find approaches and means to ensure outreach and active engagement of vulnerable To further strengthen accountability of the post-lig- groups, which besides youth also includes women and nite transition process, a Grievance Redress other groups not proportionally represented among Mechanism (GRM) is also recommended. It will existing interest groups. Existing consultative fora and provide an additional channel for stakeholders and approaches will be further mapped and assessed for citizens at all levels to lodge a complaint or raise a their utility in the consultation strategy. specific grievance, for which they request redress. An important aspect of the stakeholder engage- ment process is the overall public communication Stakeholder Identification strategy regarding the government’s plans, and it may be advisable to contract an external public rela- Table 14 identifies the main stakeholders of the tions firm to assist in development and delivery of transition and other interested parties. The level of the public communication regarding government interest, relative influence, and general position of plans. However, the overall stakeholder engagement the main stakeholders are roughly indicated in the process (as an integral part of the overall approach following categories: Very Low—Low—Medium— to transition of the government) should be managed High—Very High, based on interviews, workshops internally, by the Technical Secretariat in Phase 1, and and meetings, and other available evidence. Where by the S.A. in Phase 2. Critical in this management is available, it is also indicated what may be the main to ensure both stakeholder understanding, inclusion, drivers for different stakeholders to engage in the and confidence, as well as ensuring accountability and strategic discussions related to post-lignite transition. transparency of the process—whether in the selection The purpose of such a mapping is to understand the of projects, the eligibility and access to programs, or to range of individual stakeholder groups who should timelines for coal mine and plant closures. be engaged during the government’s transition process—both in terms of soliciting ideas about the The overall objectives of the communication future and in terms of communicating key timelines strategy are: and actions with respect to the government’s plans. 87 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia TABLE 14 The Stakeholders in Post-lignite Transition Level of Interest, Employment Factor/ Influence Stakeholder Activities Economic Impact & Position Remarks Direct Stakeholders Lignite Production Companies & Labor Unions Public Power Corporation S.A. Assets in lignite mines, power 2,500 jobs in lignite 5 Interest PPC’s current power (PPC) generation, transmission and mines and 1400 jobs portfolio accounts for 5 Influence distribution in lignite-fired power approximately 68% plants in WM of the total installed capacity in the country. Mining-Technical-Trade S.A. Lignite production in privately 60 jobs in mining 5 Interest Supplier to PPC Power (METE) owned mines plants 1 Influence Also, sub-contractor to PPC Lignite Mines of Achlada S.A. Lignite production in privately 500 jobs in lignite 5 Interest Supplier to PPC Power owned mines mines plants 3 Influence GENOP-DEH GENOP-DEK is the PPC’s main labor App 3,200 members 5 Interest Already part of 2nd tier union of 27 member unions union at national level consultations w WWF 5 Influence nationally, of which 6 are from re Just Transition. Re- Western Macedonia presenting labor unions in negotiations with PPC General Confederation of Greek Its prime purpose is defending Membership app. 4 Interest Protection of interest Workers (GSEE) the interests of all workers in the 450,000 of organized laborers 5 Influence The highest, tertiary trade union private sector. It negotiates the with body in Greece made up of 83 the employer unions at national worker unions and 74 departmental level, and can call all workers of the secondary confederations. private sector on strike in case the need arises Spartakos Labor union for workers (PPC) at a 80% of GENOP-DEH’s 5 Interest PPC’s main labor (a sectoral union) – member of GENOP regional level (Western Macedonia) – 3,200 members union – protection of 3 Influence 1/3 in power sector and 2/3 in mining belong to Spartakos members’ interest. Labor Union Working Solidarity Small labor union 200 members -150 in 5 Interest All members are PPC (a sectoral union) – member of GENOP mining workers 2 Influence 50 in power Labor Union of Technical Small labor union 320 members 5 Interest All members are PPC Engineers workers 2 Influence (a sectoral union) – member of GENOP Labor Union Lygkistis Small labor union 225 members 5 Interest All members are PPC (a sectoral union) – member of GENOP workers 2 Influence The Union Members in mining, power and adm 480 members 5 Interest All members are PPC (a sectoral union) – member of GENOP – but majority miners 2 Influence Local Committee Number Small labor union 180 members 5 Interest All members are 12/PPC- West Macd (engineers) employed in PPC and 2 Influence (a sectoral union) – member of GENOP satellites SEN Union of Temporary Small labor union for temp. workers Small union – 4 Interest Members hired by PPC Workers which work on 8-month contracts membership not workers 1 Influence (a workers’ union) each year known 1 Very Low 2 Low 3 Medium 4 High 5 Very High 88 Table 14: The Stakeholders in Post-lignite Transition (continued) Level of Interest, Employment Factor/ Influence Stakeholder Activities Economic Impact & Position Remarks Indirect Stakeholders TENA S.A., Ptolemais Construction company, excavation 185 jobs 5 Interest Partly dependent on (group of companies) and transport in 4 mines PPC 225 jobs sub- 2 Influence contracted GAIA Technical S.A., Mineral extraction works 50-99 employees 5 Interest Complete Ptolemaida constructions dependency on PPC 2 Influence KAPA Dynamiki S:A., Construction company, mineral 65-80 jobs 5 Interest 80% dependency on Florina & Ptolemais works, roads, buildings, mechanical PPC 100 sub-contracted 2 Influence works jobs ELIKA A.T.E.E.S.A., Construction of infrastructure 5 Interest Complete Kozani dependency on PPC 2 Influence ERGONSAS S.A., Mineral extraction works - 5 Interest Complete Kozani constructions dependency on PPC 2 Influence KYBOS S.A., Industrial services - constructions 5 Interest Complete Kozani dependency on PPC 2 Influence MPETOKAT S.A., Mine exposure - constructions 5 Interest Complete Ptolemais dependency on PPC 2 Influence SOTTRUCKS, Truck repair, maintenance services 5 Interest Complete Ptolemais dependency on PPC 2 Influence VIER, S:A., Construction company/industrial 300 jobs 5 Interest Complete Kozani services, maintenance (worried) dependency on PPC 200 jobs sub- contracted 2 Influence Polytechniki, S.A., Metal works 5 Interest Complete Ptolemais dependency on PPC 2 Influence Vita S.A., Electrical and industrial installations 70 jobs 5 Interest Complete Ptolemais dependency on PPC 2 Influence Mete, Mining- technical- trade Sub-contracting trucks and 75 jobs 5 Interest Complete S.A S.A., Florina excavators (worried) dependency on PPC. Also directly engaged 2 Influence in private mining Greece 2028 Observatory Association of 23 sub-contractors Estimated 1500 jobs 5 Interest Varying levels of (technical and construction) to PPC (worried) dependency on PPC among member 2 Influence companies Numerous Small Sub- Provision of different services to 500 jobs 4 Interest High dependency on contractors PPC S.A. (for example, catering, PPC 1 Influence cleaning, waste disposal) Numerous Suppliers to PPC S.A. Supply of various material inputs to Not known 3 Interest Varying levels of PPC S.A. dependency on PPC 1 Influence among member companies 1 Very Low 2 Low 3 Medium 4 High 5 Very High 89 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia Table 14: The Stakeholders in Post-lignite Transition (continued) Level of Interest, Employment Factor/ Influence Stakeholder Activities Economic Impact & Position Remarks Government Ministry of Finance Overall financial policy 4 Interest 4 Influence Ministry of Environment Protection of the natural 5 Interest and Energy environment and resources; 5 Influence Mitigation and adjustment to the implications of climate change Ministry of Development Responsible, i.a. for the Multi- 5 Interest Key stakeholder and Investments annual Financial Framework for regarding the financial 5 Influence the years 2021-27, currently under support for the energy negotiations with EC transition Ministry of Labor and Labor and social legislation and 3 Interest Social Affairs policy 3 Influence Region of Western Macedonia Administratively a secondary 5 Interest governmental organization. 4 Influence Geographically covers the whole of Western Macedonia Union of Municipalities of Plays a political, coordinating 5 Interest Western Macedonia and developmental role for 3 Influence municipalities Regional Operational Program Responsible for the Regional 4 Interest of Western Macedonia Operational Program (ROP) 3 Influence Managing Authority Network of Energy Production Kozani 4 Interest The four municipalities Municipalities Florina in Western Macedonia 3 Influence that have lignite mines Amyntaio and lignite-fired power Eordaia plants Centre for Renewable Sources CRES is the national entity for the 4 Interest and Saving (CRES) promotion of renewable energy 3 Influence sources, rational use of energy and energy conservation. CRES is a public entity supervised by the Ministry of Environment and Energy Hellenic Transmission System The liberalized electricity market is 4 Interest Operator (HTSO) & Regulatory operated by the Hellenic Transmission 3 Influence Authority for Energy (RAE) System Operator (HTSO) and is supervised by the Regulatory The Operator of Electricity Authority for Energy (RAE), which also Market (OEM) supervises the OEM OEM operates the process of the exchange between electricity producers and electricity consumers Chamber of Commerce and Organization of local businesses 4 Interest Business, Florina and companies with a focus on 3 Influence development of the interests of local companies and businesses 1 Very Low 2 Low 3 Medium 4 High 5 Very High 90 Table 14: The Stakeholders in Post-lignite Transition (continued) Level of Interest, Employment Factor/ Influence Stakeholder Activities Economic Impact & Position Remarks West Macedonia Development Established by the local authorities, 4 Interest Company (ANKO) S.A. the State, the agricultural 3 Influence cooperatives and Chambers of Commerce, in order to act as a pioneering scientific organization for the regional development approach The European Union 4 Interest EU legislation and policy plays a major 4 Influence role in decarbonisation across EU as part of climate policy 1 Very Low 2 Low 3 Medium 4 High 5 Very High Table 15 lays out the stakeholder engagement plan each major anticipated step/decision in the formula- in the design phase (Phase 1) and implementation tion and implementation of the transition. Once the phase (Phase 2). The entity responsible for imple- different components and actual steps of the tran- menting stakeholder engagement would be the sition are decided upon, the narrative, scheduling, Technical Secretariat in Phase 1, and the eventual and specific content of the stakeholder engagement S.A. in Phase 2. At this moment, stakeholder engage- and dissemination strategy should be firmed up and ment is indicated to take place in connection with detailed with reference to each major milestone. TABLE 15 Stakeholder Engagement Implementation Plan Consultation Location Project Stage Topic of Consultation Method Used and Dates Target Stakeholders Phase 1 (2020-2023) Strategy Development Draft “Land use and spatial Workshop with key Kozani National government planning” stakeholders Athens Local government Local Radio & TV coverage PPC mining and power Publication of draft “Land Other mining companies use and spatial planning” Subcontractors/Construction & Services Disclosure on official websites Labor Unions Local businesses Press releases Civil society/ NGOs Academia Media Draft “Transforming Workshop with key Kozani National government Western Macedonia into stakeholders at local and Athens Local government an Alternative Energy and national level PPC mining and power Energy Storage Hub” 91 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia Table 15: Stakeholder Engagement Implementation Plan (continued) Consultation Location Project Stage Topic of Consultation Method Used and Dates Target Stakeholders Strategy Development Local Radio & TV coverage Other mining companies (continued) Subcontractors/Construction Publication of draft “Transforming Western & Services Macedonia into an Labor Unions Alternative Energy and Local businesses Energy Storage Hub” Civil society/ NGOs Disclosure on official Unorganized labor in mining websites & power Press releases Unemployed Academia Media Draft Master Plan A series of workshops with Kozani National government stakeholders at local and Athens Local government national level PPC mining and power Publication of draft “Master Other mining companies Plan” Subcontractors/Construction Local and National Radio & & Services TV coverage Labor Unions Disclosure on official Local businesses websites Unorganized labor in mining Press releases & power Unemployed Civil society/ NGOs Academia Media Plans for closure of mines A series of workshops with Meetings at PPC mining and power units and power plants (Agios direct stakeholders (PPC, each mining Other mining companies Dimitrios, Amynteao, Meliti, Labor Unions, PPC sub- and power Subcontractors/Construction units at Kardia, Megalopoli) contractors) unit with & Services affected Public Consultation Labor Unions employees meeting with other local Kozani Local businesses stakeholders Unorganized labor in mining Local and National Radio & & power TV coverage Local government Disclosure on official Unemployed websites Civil society/ NGOs Press releases Academia Media Transition Program Transition Program to bridge A series of workshops with Kozani- PPC mining and power units immediate needs until the direct stakeholders (PPC, Florina axis Other mining companies Operational Program 2021- Labor Unions, PPC sub- Subcontractors/Construction 2027 comes on stream contractors) & Services Public Consultation Labor Unions meeting with other local Local businesses stakeholders Unorganized labor in mining Local and National Radio & & power TV coverage Local government Disclosure on official Unemployed websites Civil society/ NGOs Press releases Academia Media 92 Table 15: Stakeholder Engagement Implementation Plan (continued) Consultation Location Project stage Topic of Consultation Method Used and Dates Target Stakeholders Phase 2 (2021-2028) Operational Program Definition and Public Consultation Kozani National government Implementation implementation of the meeting with other local Athens Local government Operational Program 2021- stakeholders PPC mining and power 2027 Disclosure on official Other mining companies websites Subcontractors/Construction Local and National Radio & & Services TV coverage Labor Unions Press releases Local businesses Unorganized labor in mining & power Unemployed Civil society/ NGOs Academia Media The communication plan is as follows. TABLE 16 Information Disclosure / Communications Plan Project stage Information Disclosed Mode of Disclosure Timetable Responsible in Charge Strategy Development Draft “Land use and spatial Official Clarity website Technical Secretariat/S.A. planning” Provincial government website Draft “Transforming Official Clarity website Technical Secretariat/S.A. Western Macedonia into Provincial government website an “Alternative Energy and Energy Storage Hub”” Strategy Implementation Draft Transition Strategy Official Clarity website Technical Secretariat/S.A. Provincial government website Final Transition Strategy Official Clarity website Technical Secretariat/S.A. Provincial government website Plan for mining & power plant Direct correspondence to Technical Secretariat/S.A. closure affected employees with PPC Official Clarity website Provincial government website Revised ESIA (if applicable) Official Clarity website Technical Secretariat/S.A. Provincial government website Detailed Individual Plans Details of closure and PPC website, announcement Technical Secretariat/S.A. for Mine and Power Plant implications for individual at each mine & power plant, with PPC Closures employees individual information to each employee 93 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia Pillar One Pillar Two Pillar Three Government Systems People and Communities Repurposing Land and Assets Review sector policies & laws Review policies & laws for Review policies & laws for Social Protection reclamation and repurposing Assess coal industry characteristics Pre employment retrenchment Review existing mine closure plans Map ministries and agencies Coal Mine Closure planning for workers Assess legacy issues Design a high-level decision-making Define pre employment body (for transition) Identify financial surety obligations retrenchment assistance Clarify ministerial roles & Review capacities, roles & Assess capacity needs of national, responsibilities responsibilities for monitoring regional, and local institutions and reporting (delivery and coordination aspects) Map organizations for social service delivery Assess regional economic Define post- employment assistance Assess land and assets for landscape, including impacts repurposing Outline transition projects to related industries Design funding mechanisms Identify public and/or private Just Transition Outline priority economic partnerships for new growth sectors Identify reclamation and development programs repurposing activities Identify and assess institutions for Map ministries and agencies post retrenchment assistance Identify public and/or private Design a high-level decision- partnerships for repurposing assets making body (for transition) Stakeholder Engagement Assess/Examine economic development agencies OUTPUT 1 OUTPUT 1 OUTPUT 1 Governance Framework Institutional Framework for Governance Framework Social Protection Recommendations for updating Recommendations for updating mining sector adjustment policies Recommendations for updating environmental policies & laws & laws social protection policies & laws Recommendations for updating Proposed high-level decision body Institutional needs assessment for PPP law for sector adjustment and transition delivery and coordination Recommendations for funding Institutional mapping and roles OUTPUT 2 mechanisms for delivery and responsibilities outlined Social Protection and Labor OUTPUT 2 Divestiture Package OUTPUT 2 Reclamation Master Plan Regional Transition Plan Action plan for pre employment Assessment of environmental Outputs retrenchment planning and pre Spatial summary of regional legacy issues employment retrenchment assistance economic landscape Reclamation actions Action plan for post-employment Strategy for regional economic retrenchment assistance OUTPUT 3 development Repurposing of Land and List of potential partners for Summary of potential economic Assets Strategy social delivery development priority programs Identification of land assets for OUTPUT 3 OUTPUT 3 divestiture and/or public-private Regional Transition: Stakeholder Engagement partnership investments Jobs and Economies Strategy List of potential public and/or private Stakeholder mapping partnerships for transition project Stakeholder engagement plan for Delivery of transition projects under Pillar 1, Pillar 2, Pillar 3 Pillar 1 priority programs Road Map 94 Pillar Two Information on indirect jobs related to coal activities People And Communities is not readily available, but an additional 2,000 to 6,000 jobs could be affected by de-transitioning. As discussed in Section 2.2, at the country-level, In addition to the PPC employees, many other EURACOAL provides some estimation of indirect workers stand to be affected within the mining jobs related to coal mining which include power and power sectors and the general economy. generation, equipment supplies, services and R&D. Beyond the 3,899 permanent and 751 temporary EURACOAL estimates an indirect-to-direct jobs ratio PPC workers in 2018, there are an estimated 3,474 of 0.5 in Greece, which would mean that an addi- other workers employed in the sector, most of them tional 2,438 people would be indirectly employed depending on contracts from PPC. PPC further in the mining sector, which include power genera- purchases goods and services outside the mining tion, equipment supply, services and R&D. This ratio and power sector for its mining and power activities. is among the lowest in Europe, with Germany and Finally, there are induced effects from the mining Slovakia (respectively 0.3 and 0.2). Alves Días et al. and power wage bills spent on locally produced (2018) conducted a more refined analysis, including goods and services (Figure 24). Estimating the indi- intra-regional and inter-regional indirect effects. rect and induced labor effects is particularly difficult, They estimate that 1,843 jobs are indirectly linked to and often relies on modeling, with estimates widely coal activities within the extracting regions, and an varying depending on the underlying assumptions. additional 4,166 jobs are indirectly linked to mining activities in other regions.54 For these reasons to do with data availability and discrepancies, the team had planned a firm survey to properly map the amount FIGURE 24 of people providing services to the wider energy Jobs Affected by Mine Closures sector. Due to COVID-19 related restrictions, it has not been possible to launch the full survey. Results are anticipated for July 2020 and will be presented in a standalone report to the government. Other jobs affected by mine closures in WM With unemployment rates already more than twice as large as those experienced in other coal regions of the EU, Western Macedonia’s economy is liked to be very sensitive to mine closure (Alvares Días et al, Remaining jobs in mining 2018): most mining NUTS-II regions in Europe have and power in WM = 3,474 unemployment rates below 10%, where Western Macedonia’s unemployment rates are at 27%. The region will likely face a very high social impact if PPC 8-month an additional 5% to 10% of the active population workers = 751 (direct) becomes directly unemployed due to the closure of the mines and possible decommissioning of the power plants. Locally the effects will be even much harder felt. But much will also depend on the coal PPC employees = transition path chosen, including the timing and 3,899 (direct) labor intensity of the power plant decommissioning and land reclamation plans, as well as the labor inten- sity of the new alternative activities promoted. Source: PPC internal data and LFS data (ELSTAT), both 2018. 95 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia Capacity Gaps for Youth and New the challenge will be even further pronounced. Two Labor Entrants young adults in three are not working but looking for a job (LFS, 2018), and 20% of 15-24-year-olds are neither As previously signaled, youth represent a vulnerable in employment, education nor training (NEET) as group in the transition have been affected most by opposed to 14% at the national level (Eurostat, 2018), the region’s decline over the last decade. With no leaving a large share of the youth idle. more job creation in the mining and power sectors, TABLE 17 PISA Results, Greece 2018 Snapshot of Performance Trends in Greece Mean Performance Reading Mathematics Science PISA 2000 474* PISA 2003 472 445 PISA 2006 460 459 473* PISA 2009 483* 466* 470* PISA 2012 477* 453 467* PISA 2015 467 454 455 PISA 2018 457 451 452 Average 3-year trend in mean performance -1.5 +0.1 -5.9* Short-term change in mean performance -9.6 -2.3 -3.2 (2015 to 2018) Overall performance trajectory hump-shaped (more negative hump-shaped (more negative steadily negative over more recent years) over more recent years) Proficiency Levels Reading (2009-2018) Mathematics (2012-2018) Science (2006-2018) Percentage-point change in top-performing -2.0* -0.2 -2.1* students (Level 5 or 6) Percentage-point change in low-achieving +9.2* +0.1 +7.7+ students (below Level 2) Variation in Performance Reading (2000-2018) Mathematics (2003-2018) Science (2006-2018) Average trend amongst the highest- -1.5 -0.8 -6.4* achieving students (90th percentile) Average trend amongst the lowest- -0.8 +0.5 -5.3* achieving students (10th percentile) Gap in learning outcomes between the stable gap stable gap stable gap highest- and lowest-achieving students The estimation of indirect employment in the coal sector relied on the use of input-output tables and multipliers developed by the EU Joint Research Center, originally, for predicting the impacts of a change in the final demand of one sector on other related sectors (Thissen and Mandras, 2017). Indirect employment was estimated by applying the same multipliers to the number of coal direct jobs. The indices used, besides extending the supply-chain coverage to all sectors that might be impacted by changes in coal mining and coal power plants activities, are assessed at intra-regional level, and also consider spill-over effects at inter-regional level. *indicates statistically significant trends and changes, or mean-performance estimates that are significantly above or below PISA 2018 estimates. Source: OECD, PISA 2018 Database, Tables I.B1.7-I.B1.15 and I.B1.28-I.B1.30. 96 In addition, Greek youth also have lower literacy, Youth in Western Macedonia are even more likely to numeracy, and information-processing skills—all have low literacy and numeracy skills than the rest of necessary skills for young generations now entering the country, because they are less educated, poorer, the labor market worldwide. According to the latest and more likely to come from disadvantaged back- Program for International Student Assessment grounds. While PISA doesn’t disaggregate results by (PISA), Greek 15-year-olds are performing below regions within Greece, Western Macedonia records OECD averages, and their performance is wors- larger shares of the population with lower educa- ening (Table 17; OECD, 2018). Mean science perfor- tional attainment (less than upper-secondary school), mance declined steadily since 2006, by an average as described in Section 3.1. Among 16-24-year- of 5.9 score points per 3-year period. Similarly, olds, those who left school before attaining an mean reading performance can be described as upper secondary degree score 42 points lower in hump-shaped, with a steady decline in performance literacy than those who are still in school or have since its peak in 2009. Greece performed below completed upper-secondary education (PIAAC, the OECD average in all subjects in every year it 2016). Moreover, the average difference between participated in PISA. It seems that the large expan- advantaged and disadvantaged students in reading sion of education in Greece has not translated into is 84 points, and socio-economic status explains an improvement in literacy over the generations, 11 percent of the variance in reading performance. with 25-34-year-olds having literacy scores similar to This suggests that Western Macedonian youth 55-65-year-olds (PIAAC, 2016). is performing worse than the rest of the country. FIGURE 25 Skills Mismatch, Western Macedonia 100% 36% 32% 80% 43% 53% 50% 58% 58% 63% 60% 88% 40% 20% – s m an e s i o ia s tio r y ke rt ke d ls or e r , ke d w fis h ral es o c an er s e rs i n or an o r te na or o p a nt a n a te ns rs rs ke y rs bl d w pp ag as r ato ach d ltu of s s i c i w ela sio s w ce cu e an rs ls p r d a hn s an icu su de d r oc le m er e m le v i es M an Tec al s a Ser ry r tr a an op nd of s t ag E ic Pr ta er re d a f o ille Cl an Cr Pl Sk High-skilled Low-skilled High-skilled Low-skilled white collars white collars blue collars blue collars Undereducated Overeducated Rightly educated Note: The correspondence between occupations and skills is using the ILO nomenclature. High-skilled white collars are expected to have tertiary education (ISCED 5-8), low-skilled white collars and high-skilled blue collars are expected to have more than upper-secondary non-tertiary education (ISCED 3-4), and low-skilled blue collars are expected to have up to upper-secondary education (ISCED 0-2). Source: World Bank team’s computations, EU-SILC, 2018. 97 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia However, educational attainment, rather than profi- are needed. Greece hasn’t implemented a labor ciency, has the strongest impact on the likelihood market forecast survey recently. Some information of being employed and on earning higher wages. is available from ad hoc reports from industry asso- In fact, higher proficiency in literacy and numeracy ciations and social partners, but generic information is not rewarded by higher wages (PIAAC, 2016). If at the national level is not available, let alone for higher proficiency in literacy is not rewarded with Western Macedonia. As a result, a complete picture higher wages, workers may have little incentive to of jobseekers’ barriers to employments or the extent seek jobs that match their skill levels. Employers and to which lack of a qualified labor force is a constraint the economy stand to benefit by rewarding skills. for investment and job creation remains missing. Efforts are needed to generate and use labor market Finally, most occupations in Western Macedonia information to bridge the information and skills gaps. display skills mismatches, especially among low-skilled blue collars (See Figure 25). Beyond professionals, whose educational attainments Improve Understanding of the Barriers to largely match the requirements of their jobs (only Higher Employment 12% are undereducated), there are important skills mismatches across the different occupations. High- Indeed, already riddled with high unemployment, skilled blue collars are often undereducated, espe- the social impact of the job loss and foregone cially among skilled agricultural, forestry, and fishery employment opportunities from the mine closures workers. This suggest that the sector fails to attract and power plant decommissioning is bound to be the right skills and employs lower-skilled workers substantial, especially along the Florina-Kozani axis. instead. On the other hand, low-skilled white and While the exact contours of the employment chal- blue collars are often overeducated, suggesting lenge, including its trajectory over time, will also very that skilled white and blue collars are facing limited much depend on the contours of the transition plans, work prospects and accept positions below their such as the (temporary) employment generated in qualifications, either as clerical support workers land repurposing and land reclamation and plant (white collars), or as plant and machine operators decommissioning. The expansion of existing active and assemblers (blue collars). The latter could be labor market programs (ALMPs), and their adaptation reflecting the specificity of the mining sector, where to the specificity of the Western Macedonian context wages are far above averages and could attract will be fundamental. In this case, anticipating labor over-qualified workers. market requirements and skills needs should be a top priority for OAED in order to (i) promote better As has already been highlighted in Section 2, the anticipation of future skills needs, (ii) develop better issue for Western Macedonia is as much the increase matching between skills and labor market needs, in unemployment brought about by the mines and (iii) bridge the gap between education and work. closure as its already very high level of unemploy- Labor market anticipation and matching is the process ment (one third of the population and two third of of producing and building on available employers’ youth are unemployed). Any employment strategy surveys to achieve a better balance between skill will need to consider the wider picture, providing supply and demand, to promote economic develop- employment opportunities, training, and retraining ment through targeted skills investments by individ- for youth, long-term-unemployed, as well as individ- uals, countries, regions, sectors, or enterprises. uals affected directly and indirectly by the transition out of coal. Increasing labor demand is the number Furthermore, information on labor market demand one challenge. should be gathered via a quantitative and qualitative process to identify labor and skill demand, i.e. data Therefore, efforts to gather reliable information on collection and consultations. While information on the discrepancy between labor supply and demand labor supply is readily available through LFS data, 98 TEXT BOX 2 multiple barriers to finding a job), nor is there Greece’s National Employment Agency (OAED) any individual action plan (IAP) built to guide and counsel jobseekers. Greece’s national employment agency (OAED) is in charge of delivering services Finally, information on labor market demand and programs to both jobseekers and unem- is not being gathered systematically at the ployed. OAED is managing Active Labor Market national or local level. Some ad hoc sector Programs (ALMPs) for halting unemployment, specific surveys are implemented, and informa- promoting employment, and Vocational Training tion from firm’s registry (ERGANI data) is available, for unemployed and employed citizens; as well as but full-blown employers’ surveys are not being Passive Labor Market Policies (PLMPs) concerning conducted to assess systematically which occu- unemployment insurance measures (regular pations and specializations are in high demand unemployment benefit) and other social security and require more trained jobseekers. benefits and allowances; as well as Vocational Training (traditional vocational and on-the-job Lessons can be learned from the current training). It cooperates with social and local Elefsina pilot currently implemented in the bodies within the framework of local employment municipalities of Elefsina, Asporpyrgos, and programs, in which the local public employment Mandra (Region of West Attica). Three main service (KPA2) plays a central role. ALMPs were included: wage subsidies, entrepre- neurship and demand-responsive training (theo- OAED’s role is rather limited. Local public retical training and internship). Profiling, in-depth employment agencies provide the typical set counseling sessions, and differentiation of of services to jobseekers (individual counseling recommendations through the elaboration of an services, intermediation and matching, career individual action plan (IAP) were piloted in place. guidance, job clubs, motivation workshops, job In addition, a demand-responsive training (DRT) fairs, self-service, etc.); services to employers component was introduced to make regionally (vacancy registration and participating in the relevant professional skills development training wage subsidies program); and (referrals to) voca- available on a continuous basis to registered tional training, wage subsidies, and public works unemployed participants. Local labor market programs (Kinofelis). On top of a limited set of data is used to identify skills gaps and employers’ available ALMPs, local employment agencies needs. The programs designed to address these are not client-centered: there is no profiling of needs were modular and based on occupational jobseekers (differentiation between jobseekers standards approved by industry associations and who are market-ready and those who face employers.55 detailed information on the demand side need to An alternative approach could consist of having a be gathered through a labor market forecast survey, large employer, or cluster of employers, propose or employers’ survey. OAED should implement at a specific tailor-made trainings. This industry-led minimum a national survey that is also representative approach was suggested by OAED during consul- at the regional level (NUTS-II level) to better grasp tations (see Box 1) and corresponds to international local specificities. Local results from the quantitative best-practice. The approach can build on expertise survey should be discussed and corroborated by that the Ministry of Labor and Social Security has local private sector consultations (see Box 1). acquired in recent years. It corresponds to the situa- 99 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia tion of the municipalities affected by the mine closure, experience. Collaboration with other institutions to where PPC plays a predominant role, and already has provide safety nets to the most vulnerable would a facility for training and retraining purposes.56 Once also be an important measure to consider under the detailed information on the discrepancies between operational program for 2021-2027 (guaranteed labor supply and demand, as well as profiles of minimum income for instance). (Re)training should the labor force are available at the regional level, a be offered only to those whose profiling results place broader development strategy for the region should them among those with medium barriers to reen- be discussed and used to narrow down the set of tering the labor market, as jobseekers in these cate- ALMP options. gories are likely to have had an occupation and need re-skilling or upskilling; and hence training would increase their likelihood of employment. Individuals Tailor Labor Market Programs to Each with low barriers to entering the labor market should Jobseeker’s Needs immediately be directed to online services. OAED could reinforce the individualization of support provided to jobseekers, through a client-centered Income Support, Training and Retraining approach. This will allow the local public employ- ment agency (KPA2) to reduce its overload and Efficient administration of income support programs service jobseekers more efficiently. International and active labor market policies will be critical to best-practice recommends focusing on those who cushion the impact of the transition for those losing are most in need of services and programs to rein- their jobs. The availability of, and interactions with, tegrate the labor market, while leaving market-ready existing social safety nets will set the conditions for jobseekers largely alone to find a job. At the same deploying supplemental social protection and labor time, capacity building of KPA2 staff will be needed. programs. The precise design of income support Job counselors might need further training so as to instruments will significantly affect the coverage and implement the new reform, including the ability to adequacy of financial support. Temporary income use local labor market information, to explain the support can be channeled through: (i) severance or rationale for training assessments, to consider factors other forms of termination payments; (ii) unemploy- other than experience in guiding the unemployed ment insurance; (iii) social assistance payments; and in training specialty selection, and to serve indi- (iv) early retirement incentives. Salaried workers will viduals who are the furthest from the labor market be the least vulnerable, as they should be covered by after profiling. Reinforced communication with local severance or unemployment insurance, while some stakeholders will also be central to servicing the of the older workers could be directed towards unemployed more efficiently. early retirement: the most vulnerable, i.e. younger workers with term contracts and the self-employed The client-centered approach is best supported by will be those most in need of complete packages to the development of a skills profile of each jobseeker. cushion the impact of unemployment through social Together with data on labor and skills demand, infor- assistance programs. mation on the skills profile of each jobseeker should be used for two main purposes. First, it would help Training needs, to reskill and upskill the newly unem- determine whether an unemployed worker is eligible ployed is best determined by labor market demand for training. Second, it would inform the IAP drawn analysis, in combination with information on the up by the counsellor with the beneficiary. Public skills profile of the unemployed, to determine which works programs and on-the-job training should skills the unemployed should acquire via training; only be offered to those with the highest barriers ensuring that the training that is available provides to entering the labor market, as jobseekers in these the unemployed with these skills; and measuring categories are likely never to have worked and need labor market outcomes to help improve the effec- 100 tiveness and efficiency of training provision. Labor skills that are most likely to improve their employ- market information is best used (i) to determine ment outcomes, in a cost-efficient manner. This effort which training programs to fund and offer, and (ii) should not be limited to the newly unemployed, but to support the counselling of jobseekers. To serve could also be used to prioritize specialties for tech- these purposes, the labor market information that nical and vocational education and training (TVET) would be generated needs to be sufficiently accu- in upper-secondary non-tertiary curricula, ensuring rate and disaggregated. In addition, the information that new entrants on the labor market are equipped needs to be provided to the intended users in a with skills that are in demand on the labor market.57 clear and appropriate format. The Ministry of Labor and Social Affairs (MoLSA) and OAED have been Finally, once detailed information on the discrepan- piloting demand-responsive training programs that cies between labor supply and demand, as well as could be learned from. At each stage of the process, profiles of the labor force are available at the regional all activities guarantee that those unemployed who level, a broader development strategy for the region are eligible for the programs receive training that is should be discussed and used to narrow down the of sufficient quality and that provides them with the set of ALMP options. 101 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia Pillar One Pillar Two Pillar Three Government Systems People and Communities Repurposing Land and Assets Review sector policies & laws Review policies & laws for Review policies & laws for Social Protection reclamation and repurposing Assess coal industry characteristics Pre employment retrenchment Review existing mine closure plans Map ministries and agencies Coal Mine Closure planning for workers Assess legacy issues Design a high-level decision-making Define pre employment body (for transition) Identify financial surety obligations retrenchment assistance Clarify ministerial roles & Review capacities, roles & Assess capacity needs of national, responsibilities responsibilities for monitoring regional, and local institutions and reporting (delivery and coordination aspects) Map organizations for social service delivery Assess regional economic Define post- employment assistance Assess land and assets for landscape, including impacts repurposing Outline transition projects to related industries Design funding mechanisms Identify public and/or private Just Transition Outline priority economic partnerships for new growth sectors Identify reclamation and development programs repurposing activities Identify and assess institutions for Map ministries and agencies post retrenchment assistance Identify public and/or private Design a high-level decision- partnerships for repurposing assets making body (for transition) Stakeholder Engagement Assess/Examine economic development agencies OUTPUT 1 OUTPUT 1 OUTPUT 1 Governance Framework Institutional Framework for Governance Framework Social Protection Recommendations for updating Recommendations for updating mining sector adjustment policies Recommendations for updating environmental policies & laws & laws social protection policies & laws Recommendations for updating Proposed high-level decision body Institutional needs assessment for PPP law for sector adjustment and transition delivery and coordination Recommendations for funding Institutional mapping and roles OUTPUT 2 mechanisms for delivery and responsibilities outlined Social Protection and Labor OUTPUT 2 Divestiture Package OUTPUT 2 Reclamation Master Plan Regional Transition Plan Action plan for pre employment Assessment of environmental Outputs retrenchment planning and pre Spatial summary of regional legacy issues employment retrenchment assistance economic landscape Reclamation actions Action plan for post-employment Strategy for regional economic retrenchment assistance OUTPUT 3 development Repurposing of Land and List of potential partners for Summary of potential economic Assets Strategy social delivery development priority programs Identification of land assets for OUTPUT 3 OUTPUT 3 divestiture and/or public-private Regional Transition: Stakeholder Engagement partnership investments Jobs and Economies Strategy List of potential public and/or private Stakeholder mapping partnerships for transition project Stakeholder engagement plan for Delivery of transition projects under Pillar 1, Pillar 2, Pillar 3 Pillar 1 priority programs Road Map 102 Pillar Three The methodology developed is based on 5 themes Repurposing Former Mining with respective parameter groups: morphology, Lands and Other Assets hydrography, geotechnical risks, socio-economic factors, and land value (both positive as added value and negative as remediation cost); further parameters, The exercise of considering land uses and eventually for example, permitting requirements or restrictions can developing and implementing repurposing activities be added as required by the various stakeholders. The has a multi-faceted impact on many other transition methodology informs on which types of post-mining activities—whether it be in job creation or investment use make sense to plan for on a given parcel of land but projects or in community engagement. does not prescribe a specific investment scenario. As such it is not a standalone tool. This would be a level more granular, for example, in a spatial planning exer- Land Repurposing Methodology Developed cise. Other planning instruments connected to LURA can be preexisting, hierarchically higher level, covering The Land Use Repurposing Assessment (LURA) meth- wider geographic scopes (for example, regional spatial odology developed by the team is an objective tool plans, national energy strategies, special spatial plans); used for the determination of post mining land use or they can be parallel, on the same level and laterally with a high spatial resolution and a high degree of connected (for example, economic development reproducibility. The methodology requires us to think plans of adjacent municipalities). and plan much beyond just achieving environmentally stable landscapes and comply with environmental From extensive site visits and stocktaking, interviews permits; it requires us to return former mining lands with various functions in mine management and into a condition that allows for a wide scope of diverse operation, and drawing from international experience land uses. This is of critical priority in any mining transi- and practice, 5 criteria (biological, physical, chemical, tion where land may well represent the most important social-economic, and financial) were developed by the asset available for development. team to characterize mining lands’ repurposing poten- tial: (i) location and redevelopment potential; (ii) envi- TABLE 18 Repurposing Planning and Assessment Steps Step Description 1 Stocktaking and Site Inventory Including landforms and topography, operational records, geotechnical and hydrographic monitoring data, geochemical data on soils and waters; 2 Clarification of the Legal, Regulatory Dialogue with stakeholders (including operator and regulator) on potential future use of post- and Permitting Situation mining lands and assets as well as the requirements for ES assessments, plans and permits; 3 Site Investigation and Monitoring Development of supplemental site investigation and monitoring programs; 4 Land Classification Methodology Establishment and application of a land classification methodology; categorization of discrete land parcels regarding their post mining utilization potential; 5 Repurposing Strategies Use of the outcomes for formulation of repurposing strategies and as contributions for other spatial planning instruments, for example, special spatial plans for post-mining lands and their functionally linked surroundings. 103 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia ronmental risks / liabilities; (iii) geotechnical stability; remediation or upgrading measures for a particular (iv) topography and hydrography; and (v) development purpose, if other areas are equally or better suitable potential and financial risks. The table below lists and and require lower investments to be fit for purpose. describes in detail the evaluation criteria to screen and classify locations regarding their repurposing potential The following figures show various combinations of for different types of post-mining use. land properties and characteristics analyzed and then matched with optimized utilization scenarios. The final These criteria were then combined with broad match minimizes the exposure to risks and liabilities and scenarios for post-mining repurposing: (i) energy maximize the potential added value of redevelopment. production and storage (see draft strategy paper for an Here are four utilization scenarios, graphically depicting Alternative Energy Hub at Kozani) / industrial produc- the five underlying criteria. These “radar charts” allow a tion / waste processing; (ii) agricultural / horticultural quick assessment, categorization, and testing of lands’ / forestry; (iii) recreational / tourism; and (iv) office / suitability for a specific envisaged utilization: research / technology parks. These scenarios define the land repurposing categories for a given post- Taking the methodology developed one step mining area. The methodology takes cost sensitivity further, a user-friendly, cloud-based GIS application into account, striving to avoid, for example, costly was prepared under this technical advisory work, FIGURE 26 Graphic Characterization of Four Exemplary Land Repurposing Scenarios, Based on the Five Defining Criteria Forests/Nat. Habitats Location Agriculture Location 5.00 5.00 4.00 4.00 3.00 3.00 Cost 2.00 Geotechnical Cost 2.00 Geotechnical sensitivity stability sensitivity stability 1.00 1.00 – – Environmental Topo/ Environmental Topo/ risks hydrography risks hydrography Energy/Ind. Location Business/Recreation Location 5.00 5.00 4.00 4.00 3.00 3.00 Cost 2.00 Geotechnical Cost 2.00 Geotechnical sensitivity stability sensitivity stability 1.00 1.00 – – Environmental Topo/ Environmental Topo/ risks hydrography risks hydrography 104 TABLE 19 Evaluation Criteria for Post Mining Lands Theme Criteria Favorable for… Unfavorable for… Location Distance to Any industrial process depending on delivery Recreational areas, research parks and infrastructure and and shipping of goods or materials by road, other non-industrial uses may be negatively utilities water and energy, and producing significant impacted by proximity to infrastructure. amounts of solid and liquid waste. Geotechnical Distance to human Recreational, business / research facilities Industrial activities creating noise, emissions, Stability settlements would profit from closeness. odors and other risks / impacts should be isolated from settlements. Expected residual Almost irrelevant for agriculture and forests, Can be extremely important for large scale ground settlement recreation and tourism. structures with high loads and low tolerances esp. for differential settlement. Slope stability – seismic Potential risk for any utilization scenario. Can be actively hazardous for community risks health and safety, and infrastructure near the slopes of OD. Relevant for almost any use scenario; seismic risks need to be factored into stability assessments. Impact of groundwater Almost irrelevant for agriculture and forests, Can be very relevant and have negative rebound (applies recreation and tourism; can have positive impacts for large scale structures with especially to interior biodiversity impacts due to creation of lakes, high loads and low tolerances esp. for dumps) ponds and wetlands with high ecological differential settlement. Potential agricultural value. / recreational issues due to water percolating through fly ash layers with elevated heavy metals in OD. Topography and Surface gradient and Placement of PV on berms on high, stable Any development requiring large, level space Hydrography relief slopes, if exposure appropriate; forests and stable ground; this will include almost and natural reserves on slopes for stability, any built structures. biodiversity, timber production or as carbon sink. Surface drainage Poor drainage and resulting standing water All other uses require well drained surfaces, can be irrelevant, even an advantage for and tolerate neither stagnant water, nor recreational use or biodiversity enhancement. erosion due to high flow velocities. Hydrological risks – Limited tolerance for forestry, recreational Very limited or no tolerance for all other uses. extreme precipitation use or biodiversity enhancement. Floods are particularly hazardous where events and flooding they may interact with poorly consolidated dumps, which have high erosion potential. Environmental Presence of soil / GW Likely of low relevance for all industrial uses. Highly relevant and significant risk for Risks contaminations or agriculture; moderate risk / deterrent for hazardous materials; recreational / touristic uses. acidic soils Current / manifest Limited relevance for industrial activities High relevance / potential negative impacts environmental impacts (which themselves may create noise, for recreation and tourism, as well as “white of ongoing lignite emissions, odors etc.), and for forestry. collar” type activities such as R&D or office production (dust, Moderate to significant relevance for parks. noise, vibrations, traffic, agriculture activities – dust could, for odors, pollutants) example, create negative impacts. Proximity to operating Irrelevant for all uses except industrial When processing fly-ash into secondary TPPs, including processing of fly-ash. products (for example, concrete) need to post-repurposing, ascertain acceptable levels of potential lignite bunkers, fly ash contaminants, especially heavy metals. stockpiles Development Added land value due Any low-cost investments such as agriculture, Highly relevant, significant risk for Opportunities to its development forestry, natural habitats. investments requiring stable ground potential conditions with minimal Geotech. risks and no residual settlements. 105 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia which incorporates all above steps, and can be example of map in Figure 27 and details regarding accessed by various stakeholders. This software this GIS application in the full LRM Method Note): follows the previously presented methodological approach via a simple mathematical algorithm which The last step in the methodology applied is to use processes user-input indices and produces a map the results above to formulate a repurposing devel- visualizing recommended optimized land uses (see opment strategy for the concession, alongside FIGURE 27 Software Output of a Land Classification Test Exercise Using the Developed GIS Cloud-based Application N.B: This figure is only for illustration purposes of the final output of the software and should not be treated as actual land proposed typologies 106 other spatial planning instruments. This step follows 5) Fifth is to retain a spatial reserve for flexible future general spatial planning methodologies and would use. This could become highly beneficial as entail the following elements. offset or compensation areas for development projects in the region. 1) First is to match the land properties (as expressed in the identified land categories) with potential 6) Sixth is to present successive drafts of land land utilization options. The basis of this planning and resource management plan (LRMP) to all element is the land use zoning map produced involved stakeholders. Continuous stakeholder under the land categorization activity. This engagement is a crucial element of the spatial allows a first, approximative assignment of spatial planning process and an important determining elements and dedicated zones that incorporates factor in the quality and sustainability of the both the constraints imposed and opportunities final product. presented by the physical and chemical charac- teristics of former mining lands. 7) Last is to finalize and implement the LRMP. The finalized spatial plan represents a spatial organiza- 2) Second is to allow for the environmental and tion of lands that should allow the rapid develop- social impact assessment (ESIA) to guide land ment and implementation of utilization scenarios repurposing planning and allow pre-licensing that are compatible with the designated zones of utilization typologies. The environmental and and categories. Ideally, in order to function as an social constraints and boundaries established enabling vehicle to crowd in economic activity by the ESIA would guide spatial planning, espe- and development, the plan needs to be legally cially the definition of land use zones and the underpinned, including general land use and envi- allowable activities within these. ronmental permitting for specific zones, based on a general ESIA for the spatial plan, per above. 3) Third is to link the spatial organization within repur- posed lands with external spatial elements. The A mockup of the process is provided below for illus- key spatial elements to be considered for linking trative purposes only. The first figure is the 2018 situ- the surrounding (external) lands to the former ation at the central mining area of the Kozani Lignite mine lands are the following: (i) infrastructure and Basin, consisting of Mavropigi, Kardia, and the South transport (roads, railways, canals, transmission Field Mines. The yellow shades indicate external lines, pipelines, conveyor belts); (ii) agricultural overburden deposits, the orange shade internal over- areas; (iii) natural habitats and forests; (iv) industrial burden deposits, and the brown shade active mining and commercial zones, business parks; and (v) faces. The second figure shows the planned final generally equivalent land use patterns. landforms and land use after mine closure, according to PPC’s environmental permits for the past decades 4) Fourth is to mainstream environmental and and the next 10 years of operations. The lands will be social sustainability criteria into the process. mostly returned to forests (green shading), agricultural This would entail locating, for example, high lands (yellow) and residual lakes (blue). The third figure impact utilization types in zones that are removed is a vision for potential land use after implementation from sensitive receptors such as human settle- of repurposing planning approach (n.b.: this is only a ments, natural habitats, water courses, aquifers. mock-up map and not intended as actual guidance). It also could mean the provision of space for There still will be abundant forests, natural habitats, sustainable environmental management prac- and agricultural lands (index 1), but significant areas will tices. An important sustainability element would also be dedicated to alternative energy production (3), also be the dedication of significant areas for business parks (4), industry (5), pumped storage reser- renewable energy production and storage or voir volume (6), and repurposed TPPs, possibly with carbon capture. attached R&D installations (7). 107 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia FIGURE 28 Illustrative Application of LURA to PPC Lands Ptolemais Power Plant Ptolemais V Power Plant (out of operation) (under construction) Mine limits Belt conveyor (December 2017) Village Outside dumping area Area of exhausted mine – dumping area Area of excavation Area of inside dumping Power plant Mavropigi Mine Agios Dimitrios Power Plant South West Field Mine 0 2.5 5km Kardia South Field Mine Power Plant North Field Mine Environmental permitting limits New Power Plant Mine limits New road Komanos Mine Relocated river Agricultural areas Forest areas Lake Village Kardia Mine Mavropigi Mine Agios Dimitrios Power Plant South West Field Mine 0 2.5 5km South Field Mine 108 Figure 28: Illustrative Application of LURA to PPC Lands (continued) Environmental permitting limits Mine limits New railway line 2 New road 7 Relocated river Roads Mountainous morphology 4 Flat morphology 5 Urban area (cities, villages, etc) 1 Facilities area (factories, etc) 1 Post mining lands use limits 3 1 Agriculture and forestry 2 Natural habitats and recreational areas 3 Areas for PV installations 2 3 4 Business parks / commercial / hotel / conference / gastronomy 6 5 Light industry / warehousing / waste management / recycling / food processing / light manufacturing 4 7 6 Reservoir for PSP; could be multi-purpose, eg. for cooling water for retooled TPPs, or for irrigation purposes 7 Re-tooled TPPs, eg. for PV to heat to electricity; can also be used as R&D facilities for repurposing TPP Legislative Reforms and Spatial ment and social permitting steps. Of interest here Planning Instrument Proposed is the imperative that mining lands, once reclaimed and identified for new land use, establish investment quickly in the form of kickstart projects. Of course, The entire land repurposing exercise for the PPC an SSP must conform to Special and Regional Spatial mining lands will need to closely align, interact, Frameworks. An integrated plan should be prepared and integrate with spatial planning processes for a by the central and regional government for the tran- wider scope than the mining lands. Regardless of sition and development in the post-lignite era, as ownership of the PPC lands, there is inherent value well as a strategic plan for the restoration and reuse in considering this contiguous piece of land within of the depleted lignite mines. the process of transformative redevelopment of the region’s economy. As has been shown in the previous A sub-recommendation would specifically be that section on land and economic development poten- within the framework of the SSP, the establishment tials for the region, access to land presents one of the of industrial business parks (with specific land uses key capital opportunities available to the people of for economic development in the area) take prece- Western Macedonia to catalyze a new economy. dence, as a major component of the new land use planning in the area, and with the purpose of speed- Given the interests in redevelopment potential of ing-up the procedures of environmental licensing of the lands by a wide array of regional actors, it is the the projects contained therein. Such precedence team’s recommendation that a Special Spatial Plan does not preclude the construction of major indi- (SSP), pursuant to article 8 of law 4447/2016, be vidual projects outside the business parks. considered as the overarching planning instrument. The SSP is a powerful and versatile planning tool suit- In the case of a business park, the industrial area etc. able which allows for the streamlining of key environ- (organized “receptors” of manufacturing and business 109 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia activities / planned areas) for which an environmental of industrial use, such as energy and thermal produc- approval has been given, some of the opinions of tion from renewable energy sources and natural gas, the public services required in the context of envi- co-production of electricity and heat, research centers ronmental approval of individual projects, can be and laboratories, agricultural and stock-raising busi- omitted. On the one hand it depends on the nature ness etc. services in charge do not have to opine as of a specific project, on the other hand it has to do part of the procedure of environmental licensing. The with sectors which should have been environmentally scope of these provisions could probably be widened approved as part of the procedure of the environ- by including additional categories of activities which mental approval of the business park / industrial area could be of interest for the envisaged development itself, for example, the issuance of a permit for the model in the area. industrial area’s sewage disposal etc. Several reasons for this recommendation are In this context, the provisions of the article 54 of the outlined here. The advantage of the SSP is that a stra- law 3982/2011 could prove useful. As provided by tegic ESIA can be developed, and once approved, the law, for projects of certain business categories, it streamlines and simplifies permitting processes which are allowed to be installed in business parks for individual investor projects. Furthermore, given TEXT BOX 3 The Organized Receptor/Business Park 4. The abbreviation of the time for the prepara- Model Proposed tion of the studies needed in the context of the preparation of the SSP (SSP, SEA, geological 1. The procedures of the preparation and study, study for the delineation of the streams) approval of (i) the SEA of the SSP and (ii) the must, as well, be legislated. EIAs of the individual projects could be sped up by legislating the abbreviation of the periods 5. The periods of time needed for the prepara- of time needed for the competent authorities tion of EIAs and the issuance of Environmental to opine and for the public consultation Approvals of individual projects must also be procedures, and the reduction of the number abbreviated. of the competent services. Furthermore, if for a specific land use included in the SSP, opine 6. The period of 6 months into which the has been provided for unchangeable condi- Central Council of Urban Planning Affairs tions (such as archeological sites, forests etc), it and Objections must complete its reasoning could be omitted for the future specific EIA of (par. 5 of art. 8 of law 4447/2016) should be a new project which applies to the proposed abbreviated. land use. 7. All competent authorities (opining, checking, 2. The scope of the provisions of the article 54 approving the SSP and the EIAs of individual of the law 3982/2011 could be widened by projects etc.) must be well-staffed and including additional categories of activities organized. which are of interest for the envisaged devel- opment model in the area. 8. The potential should be explored to stream- line the content of the EIAs of individual proj- 3. Similarly, the abbreviation of the period of 12 ects in relation to the content of the SEA. months for the enactment of the SSPs must be legislated. 110 the national significance of the lignite phase out in 5. Regarding the environmental approval of the Western Macedonia, an SSP signals, by virtue of its individual projects, potential barriers could enactment via a presidential decree that the govern- derive from, at least, the above-mentioned ment is treating the issue of transition with utmost causes no. 1, 2, and 3. political attention. Lastly the SSP is initiated by either the relevant national line Ministry or a regional Furthermore, attention should be paid on the, still authority or municipality. In the context of the tran- valid, mining status as well as the new forest maps of sition, there is converging interest in seeing the PPC the PPC’s area. Both issues could hinder the proce- lands developed in a more integrated fashion within dure of land-use planning in the area. The preparation the broader regional transition planning process, of the SEA of a SSP does not substitute for the obli- and therefore there is considerable administrative gation of environmental licensing for all projects to interest to see one initiated. be constructed in the area covered by the SSP, that is the preparation of Environmental Impact Assessment As regards the relationship of the assessment of the (EIA), opining by various civil services, public consul- environmental impact of the SSP with the assessment tation and issuance of an Environmental Approval of the environmental impact of individual projects, of each project. However, these barriers should be it is stressed that the preparation of the SESIA of a considered within the context of time delays already SSP does not substitute for the obligation of environ- experienced in Greece for investment projects to mental licensing for all projects to be constructed acquire permitting. in the area covered by the SSP, that is the prepara- tion of an Environmental Impact Assessment (EIA), The Figure 29 summarizes and visualizes how a opining by various civil services, public consultation streamlined approach to permitting could be prac- and issuance of an Environmental Approval of each tically achieved: obtaining higher level, generic project.58 Nevertheless, the procedure of environ- permits for larger areas and a specified range of uses mental licensing of individual projects could be made would establish pre-clearance for certain aspects easier by the fact that the opining services would have of ES assessment and management, which would gained sufficient knowledge of the natural environ- not need to be repeated at lower / more specific ment of the area through the thinking out of their opin- permitting levels. For instance, PPC’s land assets ions in the context of the preparation and approval of could be covered by an SEA, which would define the SEA of the SSP, which precedes the stage of envi- the permissible land use, delineated into zones with ronmental approval of individual projects. Regarding defined typologies of utilization (for example, RE/PV, the preparation of a SSP, potential barriers could forests, biomass production, commercial, business, derive from, at least, the following causes: research, industry); such a “defined zone” would be covered by an ESIA, which would be the basis for a 1. Delays during the public procedure for the permit for this zone, for specified types of use, and assignment of the study contract due to possible covering, for example, all aspects connected to land objections and litigation. and natural resources in this zone; finally, a specific investment on a single plot within this zone would 2. Delays due to shortages of competent personnel only require a simplified ESIA or an ESMP, which for the supervision and the approval of the study would be a basis for an operational permit. of the SSP and its SEA. 3. Bureaucratic procedures in various sectors and stages which can be complex and slow. 4. Delay during the legal editing of the draft presi- dential decree by the Council of State.59 111 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia FIGURE 29 Vision for Environmental Permitting Structure an accurate representation of the post-mining land uses. Application of LURA to the Further refinement of the model could be executed Amyntaio Mine with smaller cluster dimensions and more detailed data, if more planning detail were needed. Application of LURA to the Amyntaio mine served As can be seen from Figure 30 and Figure 31: to refine the LURA methodology and to evaluate the possible optimum post-mining land use. The The predominant optimal land utilization has been outcome of the assessment should be considered found to be agriculture. This is based on the prox- as indicative of the least effort needed for repur- imity of the area to infrastructure and transport posing to achieve the optimum land use based on network, the geotechnical liabilities such as long- the current land conditions. Of course, different land term settlements and slope instabilities’ and the utilization options than these identified by LURA can favorable environmental conditions without pollu- be chosen by future developers. In such cases, LURA tion of soil or the groundwater; can be used initially to get rough estimates of the additional effort in time, funding, and technology The optimum land utilization with the second required to put land in a condition that does not highest frequency, based on current conditions, correlate with its designated optimum use. was industrial development. This development can take place in areas that are geotechnically The GIS-based LURA application was utilized to rate stable with minimum amount of expected long the Amyntaio mine area based on the data provided by term settlements, are close to infrastructure and PPC. Based on the aerial view of the mine, a total area energy networks, and far from villages; of 40 km2 was selected and subdivided in 616 clusters with a length and width of 0.3km each. For this pilot A significant percentage of the lands will probably study and the available information, the cluster dimen- be submerged under water and an artificial lake sions were considered appropriate in order to produce could be created. This lake could be used for recre- 112 FIGURE 30 Amyntaio Mine FIGURE 31 Amyntaio Mine Land Use Rating Map Total Segments Total Area Size % 0.2 in 0 0.00km 2 0.00 Agriculture 293 18.99km2 47.56 Utilization Industry, energy production 130 8.43km2 21.10 Business, recreation, tourism 39 2.53km 2 6.33 Possible water body 114 7.39km 2 18.51 Total 576 37.34km 2 93.50 Archeological interest areas 43 2.79km2 6.98 Unusable Forest authority areas 6 0.39km 2 0.97 Total 49 3.18km 2 7.95 113 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia FIGURE 32 Amyntaio Mine Optimal Land Use Map from LURA Overlapped on PPC Proposed Land Future Land Use ational purposes and as a natural habitat. Pumped found to be optimal for business parks or recre- water storage cannot be excluded as a use, but ational usage. additional evaluation of the quantities of water and head need to be studied; and An interesting outcome is that forestry—which would be expected for lands with the poorest conditions— A small but not insignificant land area has been has not been selected by LURA’s automated rating 114 procedure. This is because the entire mine area The LURA output map of land uses has been has added value based on the distance to human compared with the proposed future land use types settlements, primary and secondary road proximity, that PPC has produced. In Figure 32 the two maps and very good environmental conditions (absence have been overlapped and in Figure 33 have been of pollution). It is seen from the ratings that for the placed side by side. Amyntaio mine, forestry seems more of an environ- mental restoration approach, than a response to The maps look similar but have the following actual land conditions. differences. Much of the agricultural use has been FIGURE 33 Amyntaio Mine Optimal Land Use Map from LURA Side by Side to PPC Proposed Land Future Land Use Water body PPC PV proposal and LURA agricultural optimal land use Building area Industrial, energy – PV Agricultural – vineyard FIGURE 34 Amyntaio Mine PPC Future Land Use Legend PV 350 MW total licensed polygon Archeological site within application zone* PV applications RAE 12/2018 Recommended area for growing aromatic plants PV applications RAE 12/2018 Recommended area for growing vineyards PV applications RAE 12/2018 Landslide zone of influence – approximately Exploration limit High voltage lines Forested area Proposed site locations of PVs “PPC Amyntaio mine” Building installations Bees Lake surface – maximum possible elevation (+540m) Sanctioned maps with areas covered by forest law Area of archeological interest Sanctioned maps with areas not cover ed by forest law *according to an archeological authority of Florinia **according to a scenario under consideration 115 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia assigned for PV usage by PPC. The agricultural land as shown in Section 2.3 above, to consider an SPV. typology does not preclude the installation of PVs but An SPV could be an entity created with participation additional reclamation may be warranted to produce of all key players around a large transition project an appropriate land surface for PV installations. PPC’s including closure, remediation, repurposing, and land use map proposes a significant part of the land economic regeneration. In the case of Western to be covered with forest, which is an approach Macedonia, PPC could be a major shareholder of the that emphasizes environmentally friendly land use, SPV, as well as the regional Government, affected regardless if this may not be the optimal land use. municipalities, and others. An advisory or steering Industrial land use has not been foreseen in PPC committee could include additional stakeholders future land use; rather only in certain minor locations from the NGO/CSO scope, academia, specialized such as the area for biomass energy production. agencies and EU / international organizations. The SPV could be given a variety of potential mandates, Notwithstanding these differences, there is some which are listed as a menu of options below: convergence between LURA’s proposals with PPC’s own planning. For example, the area proposed for 1. To assume ownership / control of (post) mining building development by PPC has been found for lands; most part suitable land use by LURA. The maps have identical water body locations, which is logical based 2. Act as receptor and manager of financial means on the topography and the expected ground water (subsidies, public funds, investments) for reme- rise, following discontinued dewatering. Furthermore, diation and repurposing; areas proposed by PPC for vineyards are located in areas classified for agricultural use by LURA. 3. Act as turnkey contract manager for the required civil works; In conclusion, the pilot application of LURA for the post-mining lands of Amyntaio produced accu- 4. Be a key driver of land marketing and rate representations of possible, optimal land use redevelopment; scenarios for future development. PPC’s proposals are based on more detailed studies and assessments, 5. Assume a key role in obtaining environmental and which have taken much more time and resources other required permits for the repurposed lands; to complete. They are similar in many aspects and have not been found to diverge significantly from 6. Provide educational and training incentives in inno- our own. This pilot test confirms that the LURA is a vative technologies and job profiles, for example, useful and resource-efficient tool for assessing and in land remediation and repurposing; renewable planning potential post-mining land use and repur- energy installation, operation, and maintenance; posing. Additional time and resources to collect environmental/geotechnical services; or innova- and process higher resolution data would further tive agricultural approaches (for example, biofuel improve the quality of LURA’s outputs. production, carbon forests); for this purpose, the SPV could develop dedicated trainee / apprentice- ship programs. Special Purpose Vehicle The SPV would also have an important role as a “moderator” of discussions around implementation of SSP and the LRM, curate information, manage a Should a holistic approach—using the land repur- continuous stakeholder dialogue, review informa- posing methodology and linking it to a special tion stored in LRM database and request updates as spatial plan—be pursued by the authorities, there is needed, and present / utilize / promote LRM in key ample precedent in other post-mining transitions60, meetings and decision-making processes. 116 SECTION IV 117 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia CONCLUSION As early as July 2020, Greece will begin the process of closing its lignite mines and associated power plants in Western Macedonia. With its Master Plan guiding the overall transition process and with its operational programs materializing these ambitions for a new post-lignite era, the region stands in good stead to achieve a managed, peaceful transition. In furthering Greece’s goal to achieve a just transi- stresses that the transition in Western Macedonia will tion of its lignite sector, the World Bank with support require inspiring and thoughtful leadership who can from the European Commission, conducted mixed encourage a reinvention of the region itself. In the methods field work over a 12-month period in Western team’s estimation, based on the hundreds of meet- Macedonia. The field work sought to identify the ings held in Western Macedonia with stakeholders, constraints and opportunities to transition; it further this leadership exists across government and sought to identify actors and structures best placed non-government sectors. It is simply now a matter to lead and engage during this transition. In under- of mobilizing these segments of thought and busi- taking the research, the team’s approach, based ness leaders around a structure for radical, structural on evidence from other coal-transitioning regions, transformation of the region’s economy and identity. was to identify solutions for Western Macedonia’s lignite tradition rooted in the local communities to Lessons from the World Bank’s past work, and the undergo transition; and to seek solutions that looked team’s analysis of other major coal transitioning coun- well beyond the question of energy production. The tries, show that past common practices focused on findings of Section 2 provide substantive detail to the immediacy of mine closures with short and medi- the labor market and business constraints holding um-term management of social impacts. This type the region back; whilst positioning the region’s of approach addressed pressing immediate needs, extensive land and infrastructure assets, alongside while also enabling continued hardship in coal its people, as the capital worth building on. regions lacking pathways for new opportunities; and by consequence fostering of social ills enabled As this report has stressed, long journeys begin with by languishing workforce and communities. Such a road map, a strategy that charts the pathway to a structural decline of once thriving coal regions be taken and markers along the horizon. The Road was aided to a large extent by inadequate attention Map in Section 3 presents a contemporary and paid from the outset to the assets most available dynamic vision for a new post-lignite era. Its vision within these regions to drive change. Reclamation is for a thriving and forward-looking economy for and rehabilitation of former mining lands and other Western Macedonia, underpinned with good jobs infrastructure assets could attract much needed in economic sectors that are empirically shown to new investments into alternative future uses. As this be promising. In certain cases, in order to achieve report repeatedly signals, Western Macedonia is in the pathways61 identified for economic transition, an incredibly strong position to build off its natural, reforms of a national nature will be required to physical and human capital. With the right leader- push the region’s traditional business boundaries. ship and financial resources, these important forms In other instances, scaling up of existing business of capital can propel the region into a hopeful and sectors would sufficiently crowd-in new jobs and promising post-lignite future. investments. For these reasons, the Road Map 118 119 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia TABLES AND GRAPHS List of Tables TABLE 1 Summary of Research Pillars and Questions 10 TABLE 2 Research Framework 27 TABLE 3 Outputs 29 TABLE 4 Most Employees at PPC are Plant and Machine Operators and Assemblers, or Craft and Related Trade Workers 42 TABLE 5 Residual Workforce in 2023 43 TABLE 6 Alternative Energy Transition Pathway 70 TABLE 7 Start-up Economy Transition Pathway 71 TABLE 8 Digital Region Transition Pathway 72 TABLE 9 Green Region Transition Pathway 74 TABLE 10 Alternative Energy Transition Pathway 75 TABLE 11 Green Region Transition Pathway 75 TABLE 12 Start-up Economy Transition Pathway 76 TABLE 13 Digital Region Transition Pathway 76 TABLE 14 The Stakeholders in Post-lignite Transition 88 TABLE 15 Stakeholder Engagement Implementation Plan 91 TABLE 16 Information Disclosure / Communications Plan 93 TABLE 17 PISA Results, Greece 2018 96 TABLE 18 Repurposing Planning and Assessment Steps 103 TABLE 19 Evaluation Criteria for Post Mining Lands 105 List of Figures FIGURE 1 Phase 1 and 2 of the Greek Lignite Transition 11 FIGURE 2 The Four Transition Pathways 13 FIGURE 3 Summary of Key Recommended Actions in the Road Map 18 FIGURE 4 Project Implementation Timeline 30 FIGURE 5 Most of Western Macedonia’s Employment is Concentrated in Sectors Linked to the Use of Natural Resources. Distribution of Employment by NACE Rev.2 Sectors, Western Macedonia, 2018. 32 FIGURE 6 Representation of PPC’s Operations 33 FIGURE 7 The “Energy Municipalities” (in Blue) of Western Macedonia 34 FIGURE 8 Employment in Mines is Halting, while the Construction of Ptolemais V Keeps Providing Jobs in the Power Sector 35 FIGURE 9 Intramural Research & Development Expenditure as % of Gross Domestic Product (2015) 36 FIGURE 10 Western Macedonia Records the Highest Unemployment Rates in Greece 37 FIGURE 11 Western Macedonia’s Population Displays High Dependency Ratios 38 FIGURE 12 Western Macedonia’s Population is Aging Fast and Losing Its Younger Working-age Labor Force 38 FIGURE 13 Old-age Dependency Ratios Remain Higher than in the Rest of Greece and the EU 39 FIGURE 14 In Western Macedonia, Youth, Low Educated Households, and Female-headed Households are Most at Risk of Poverty 39 FIGURE 15 Western Macedonia Records the Highest Unemployment and Poverty Rates of the Country 39 120 FIGURE 16 Employment in Mining and Quarrying and Electric Power Generation, Transmission and Distribution, Western Macedonia 41 FIGURE 17 Indirect Jobs Related to Coal Mining 44 FIGURE 18 Post Cessation Labor Development 49 FIGURE 19 ‘Universe’ of Planning Foreseen in Phase 1 53 FIGURE 20 Preliminary Phases of the Transition 54 FIGURE 21 A Summary of the Pros and Cons of Different Governance Models 55 FIGURE 22 The Four Transition Pathways 69 FIGURE 23 Start-up Economy Pathway Programme 72 FIGURE 24 Jobs Affected by Mine Closures 95 FIGURE 25 Skills Mismatch, Western Macedonia 97 FIGURE 26 Graphic Characterization of Four Exemplary Land Repurposing Scenarios, Based on the Five Defining Criteria 104 FIGURE 27 Software Output of a Land Classification Test Exercise Using the Developed GIS Cloud-based Application 106 FIGURE 28 Illustrative Application of LURA to PPC Lands 108 FIGURE 29 Vision for Environmental Permitting Structure 112 FIGURE 30 Amyntaio Mine 113 FIGURE 31 Amyntaio Mine Land Use Rating Map 113 FIGURE 32 Amyntaio Mine Optimal Land Use Map from LURA Overlapped on PPC Proposed Land Future Land Use 114 FIGURE 33 Amyntaio Mine Optimal Land Use Map from LURA Side by Side to PPC Proposed Land Future Land Use 115 FIGURE 34 Amyntaio Mine PPC Future Land Use Legend 115 List of Diagrams and Organograms DIAGRAM 1 World Bank Coal Sector Transition Assessment Framework 25 DIAGRAM 2 RE:START Governance Structure 56 DIAGRAM 3 Regional Permanent Conference of the Usti Region 58 ORGANOGRAM 1 Phase 1 Governance Structure 60 ORGANOGRAM 2 Phase 1 Regional Structure 61 ORGANOGRAM 3 Phase 2 Governance Structure 65 ORGANOGRAM 4 Phase 2 Regional Structure 66 DIAGRAM 4 Summary of Sectors from Just Transition Strategies 67 List of Case Studies CASE STUDY 1 Chemiepark Bitterfeld, Saxonia Anhalt 46 CASE STUDY 2 Lausitzer und Mitteldeutsche Bergbau-Verwaltungsgesellschaft mbH (LMBV), Germany 47 CASE STUDY 3 Flagship Local Digital Projects in Greece 73 List of Text Boxes TEXT BOX 1 Business Leaders Cite Egnatia Motorway as Enabler to Commerce and Trade 68 TEXT BOX 2 Greece’s National Employment Agency (OAED) 99 TEXT BOX 3 The Organized Receptor/Business Park Model Proposed 110 121 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia END NOTES 1 http://documents.worldbank.org/curated/en/484541544643269894/ 18 Sector Adjustment Loan is issued by the World Bank to qualified member pdf/130659-REVISED-PUBLIC-Managing-Coal-Mine-Closure-Achieving-a- countries that have adopted strong macroeconomic policies and structural Just-Transition-for-All-November-2018-final.pdf. adjustment plans. The purpose is to adjust the country’s economic structure, improve international competitiveness, and restore its balance of payments. 2 The FT Digital Energy Summit 2019 reported that the energy industry (particularly electricity) is becoming customer-centric and that customers 19 Here the team considers dependency to be of multiple orders: energy, will be -to large extent- in control of the industry in the near future (decision economy, social and cultural. making shifting, influencing policies and driving cleaner energy options). 20 The scope of work and its expected outputs can be found in Section 1 below. 3 For a full summary of all meetings, reports, and events held on the subject of a ‘post-lignite era’ in Western Macedonia, please see the standalone 21 In order to fully appreciate the depth of research and analysis conducted output entitled Stakeholder Engagement Plan, p.8-9. by the team over the period, the standalone reports have been made available to the European Commission and the Government of Greece. 4 The scope of work and its expected outputs can be found in Section 1 below. 22 Currently, an attempt is underway to differentiate the energy mix for district 5 In order to fully appreciate the depth of research and analysis conducted by heating in Amynteo and to lift dependence from PPC. In addition, other the team over the period, the standalone reports have been made available private investors are expected to enter the market of power production soon. to the European Commission and the Government of Greece. 23 Input-output analysis models present a snapshot of flows of products and 6 The case studies examined of the Czech Republic, Canada, and the United services in the economy for a single year, based on several assumptions. States exemplify the benefits of such a multi-layered approach to planning. There are limitations in the use of the tool to estimate the medium- and long-term effects on a changing economy that is in transition and also 7 As established under the article 1 of the Act of the Cabinet of the Ministers severely hit by the economic crisis. As the technology and the production no 52 /23.12.2019. factors used are changing, their cost is changing, final demand is shifting, the actual impact on the economy cannot really be estimated. 8 The design of a Special Purpose Vehicle is quite bespoke to local socio- economic conditions, sector governance, and needs of workers and 24 See p.95 of this Road Map for a detailed discussion on defining ‘indirect’ communities. The proposed SPV is discussed in length further below within and ‘induced’ impacts. the section Proposal for a Public-Private Development Fund. 25 See, for example, TCG-WM (2012). Assessment of transition cost of Western 9 Interviews with past persons responsible for such projects as the Olympics, Macedonia to a state of low lignite production (in Greek) and WWF (July Egnatia, or Metro confirmed Greece’s familiarity with special entities who 2016). Roadmap for the transition of Western Macedonia Region to a post- can deliver complex projects on tight timescales. lignite era 10 Alvares Días et al, 2018 26 Data don’t allow us to have a breakdown of GVA within the NACE Rev. 2 11 This data is based on the existing plans for closure and the employment industry sector (B through E). data shared by PPC with the team. 27 Greece does not produce a national or regional labor market forecasts, 12 The status of an additional 81 mine employees and 146 power plant which would help determine which occupations will become redundant in employees is unknown. the short-term, or those that will become in high demand. At the national level, the following occupations are identified as being the most dynamic 13 This obligation derives directly from the EU legislation. Pursuant to article 11 from 2013 to 2018: shop and sales representatives (522), waiters and of the Dir. 2001/42/ EC of the European Parliament and of the Council of 27 bartenders (513), food preparation assistants (941), client information June 2001 on the assessment of the effects of certain plans and programs workers (422), child care workers and teachers’ aides (531), ICT operations on the environment “Relationship with other Community legislation. 1. and user supports technicians (351), manufacturing laborers (932), An environmental assessment carried out under this Directive shall be protective service workers (541), and car/van/motorcycle drivers (832) without prejudice to any requirements under Directive 85/337/EEC and (EIEAD, 2019). to any other Community law requirements.” Consequently, getting around this obligation would result in a violation of EU law. The par. 3 of art. 10 of 28 See the Regional Innovation Scoreboard and the Regional Competitiveness the joint ministerial decision incorporating the Directive in the national Index sub-indices. legislation embodies a similar provision. 29 Only in the last several months, some acceleration can be observed. 14 Such as redevelopment potential, socio-economic, environmental and/or ecological quality, and climate effects. 30 A household is poor if its disposable income per equivalized person after social transfers is below 60 percent of the national median. 15 For a full summary of all meetings, reports, and events held on the subject of a ‘post-lignite era’ in Western Macedonia, please see the standalone 31 Approved by the Government Council of Economic Policy and published output entitled Stakeholder Engagement Plan, p.8-9. on State Journal 4893/B/31.12.19. 16 Approved by the Government Council of Economic Policy and published 32 https://ec.europa.eu/info/sites/info/files/european-green-deal- on State Journal 4893/B/31.12.19. communication_en.pdf 17 https://ec.europa.eu/info/sites/info/files/european-green-deal- 33 The status of an additional 81 mine employees, and 146 power plant communication_en.pdf employees is unknown. 122 34 See: https://energypress.gr/news/i-dei-kleinei-oles-tis-yfistamenes- 50 See, for example, Germany’s Coal Exit Talks Founder on Compensation lignitikes-mehri-2023-simera-i-egkrisi-toy-business-plan-apo Dispute. Other cases could be drawn from many other countries, including China. 35 For instance, someone operating a crane, or a specific type of truck. 51 Based on an interview with Mr Vasileios Pitsinigkos. Head of. Managing 36 The estimation of indirect employment in the coal sector relied on the use Authority of Eastern Macedonia - Thrace Region. See, for example, similar of input-output tables and multipliers developed by the EU Joint Research projects in the Municipalities of Erateino and Aristino, in the Region of Center, originally, for predicting the impacts of a change in the final demand Eastern Macedonia and Thrace. However, these projects take advantage of one sector on other related sectors (Thissen and Mandras, 2017). Indirect of geothermal energy. employment was estimated by applying the same multipliers to the number of coal direct jobs. The indices used, besides extending the supply-chain 52 For details visit, https://www.plantengineering.com/articles/chp-helps- coverage to all sectors that might be impacted by changes in coal mining growth-in-the-greenhouse/ and coal power plants activities, are assessed at intra-regional level, and also consider spill-over effects at inter-regional level. 53 For details visit, https://www.selecta-one.com/en/company/production_ sites/details/Selecta_Hellas/09974297276/ 37 Naja Marot, Barbara Černič Mali: Youth and Regional Development 54 The estimation of indirect employment in the coal sector relied on the use Participation in Decisions on Post-Mining Regions, in Wirth, Mali, Fischer of input-output tables and multipliers developed by the EU Joint Research (eds): Post-Mining Regions in Central Europe. Problems, Potentials, Center, originally, for predicting the impacts of a change in the final demand Possibilities. Oekon, München, 2012. of one sector on other related sectors (Thissen and Mandras, 2017). Indirect 38 COMMISSION STAFF WORKING DOCUMENT, Assessment of the employment was estimated by applying the same multipliers to the number of coal direct jobs. The indices used, besides extending the supply-chain National Energy and Climate Plan of Greece, Accompanying the document. coverage to all sectors that might be impacted by changes in coal mining Commission Recommendation on the draft integrated National Energy and coal power plants activities, are assessed at intra-regional level, and and Climate Plan of Greece covering the period 2021-2030. EU, Bruxelles, also consider spill-over effects at inter-regional level. 18.6.2019, p. 10 55 The identification of the training specialties was tailored to local labor market 39 Proposal for a Regulation of the European parliament and of the Council needs through the use of administrative data (EIEAD/ERGANI) and an establishing the Just Transition Fund (COM(2020) 22 final). employer survey that took place in the pilot area (EIEAD and firm conducted the interviews): 10 specialties were finally chosen, and the content of the 4 0 It will support a wider scope of investments, notably by contributing to the specialties’ curricula was updated based on industry standards. The training transition through support to low-carbon and climate-resilient activities, program was also endorsed through employer consultations. such as renewable investments and energy efficiency schemes. 56 One of the lessons learned from the Elefsina pilot was that exploiting 41 It is envisaged to provide subsidised financing to the local authorities for partnerships with key stakeholders (including employer associations and the benefit of the regions concerned. social partners) limited the full potential of the reforms. 42 European Commission Proposal for a Regulation of the European 57 Here again, the lessons from the Elefsina pilot give insight into what should be Parliament and of the Council Establishing the Just Transition Fund, 2020. prioritized: exploiting partnerships with key stakeholders (including employer associations and social partners) to boost the full potential of the reforms. 43 https://ec.europa.eu/info/live-work-travel-eu/health/coronavirus- response/recovery-plan-europe_en 58 This obligation derives directly from the EU legislation. Pursuant to article 11 of the Dir. 2001/42/ EC of the European Parliament and of the Council of 44 Such as state budgets, but also specific resources coming from the including 27 June 2001 on the assessment of the effects of certain plans and programs its Fund and perhaps those potentially available for site specific PPP from the on the environment “Relationship with other Community legislation. 1. PPP Secretary An environmental assessment carried out under this Directive shall be without prejudice to any requirements under Directive 85/337/EEC and to 45 A full summary of the structures studied can be found in the standalone any other Community law requirements.” Consequently, getting around output entitled Governance Structure. this obligation would result to a violation of EU law. The par. 3 of art. 10 of the joint ministerial decision incorporating the Directive in the national 46 For instance, the Appalachian Regional Commission which is the independent legislation embodies a similar provision. agency addressing coal transition in the United States has developed a county index system which ranks counties according to three indicators: 59 The Supreme Administrative Court. 3-year unemployment statistics, per capita market income, and poverty rate. The ranking of counties according to the index serves to determine funding 60 United States, Germany, China, to name but a few. allocations per county. Though perhaps of less relevance to Megalopolis, such a ranking system could help to objectively determine the amount of 61 (i) alternative energy value chains; (ii) the digital enabling environment for funds available to each district of Western Macedonia. business and education to build a new labor market to flourish; (iii) start up economy and small business innovation in a variety of economic sectors; 47 United States, Germany, China, to name but a few. and (iv) agribusiness. 48 https://www.arc.gov/appalachian_region/ CountyEconomicStatusandDistressedAreasinAppalachia.asp 49 A full analysis can be found in the Standalone report Regional Economic Transition Strategy for Western Macedonia p.13-28. 123 A Road Map for a Managed Transition of Coal-Dependent Regions in Western Macedonia BIBLIOGRAPHY COMMISSION STAFF WORKING DOCUMENT, Kozani Development Agency (ANKO) in Petrakos Assessment of the National Energy and Climate G. et al (2019) RELOCAL Case Study Report “A Post- Plan of Greece, Accompanying the document. 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