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Our Campaign on “Stop Subsidising the Rich!”

There is no doubt, that ETS2 will lead to higher prices for household energy and transport fuels. Opponents of this measure argue that these price increases will hit poor households hardest. However, this is a very one-sided view. In this article, we will show how this argument can and should be refuted. (In the following, for the sake of simplicity, we use data only from Hungary but the situation is similar in all EU countries).

Poor households spend a much higher share of their total expenditure on household energy than rich households; in Hungary, the poorest 10% of the population spend 23%, while the richest 10% spend only 15%. This confirms, that in relative terms, any increase in energy price would hit the poor much harder than the rich.

The share of expenditure on household energy from the total expenditure by income decile in Hungary (1=poorest 10% of the population, 10=richest 10%)
CAAG’s calculation based on
Hungarian Statistical Office data

However, rich households use much more energy than poor households; for example, in Hungary, the richest 10% of households use almost twice as much gas as the poorest 10%.

Total annual gas consumption of households in Hungary by income deciles (million cubic metres, average of the years 2012-2021).
CAAG’s graphic, data from the
Journal of Economic Literature

In Hungary, there is an enormous direct subsidy on gas for all household consumers. Since the richest households consume about twice as much gas as the poorest households, the former receive twice as much subsidies as well. This is extremely unjust socially and senseless economically. Moreover, in addition to direct subsidies, indirect subsidies for household energy use are enormous, too. It is estimated that in Hungary, the external cost of fossil fuels equals more than 6% of the GDP (the external costs include mainly the environmental and health costs). In view of the above, these costs should be internalised (i.e. incorporated into the price of fossil fuels) not only for environmental and economic reasons but also to eliminate the unjust subsidising of the rich.

When it comes to car use, the situation is much worse than it is for household energy. According to household statistics, in Hungary, the richest 10% of the population spends 7 times more on the purchase and use of cars than the poorest 10%. However, the real situation is much bleaker than shown by these statistics: namely, richer people often use company cars for private purposes, and this is not included in the household statistics on household expenses. This is why some experts say that the richest 10% of the population are likely to spend at least 10 times more on car travel than the poorest 10%. Thus, since there are enormous (mostly indirect) subsidies on car use, the richest people receive at least 10 times more subsidies for cars than the poorest.

Household expenditure on car purchase and use in Hungary per income decile in 2018 (billion HUF)
CAAG’s calculations based on
Hungarian Statistical Office data

In the case of road transport, indirect subsidies are colossal, too. According to a study commissioned by the European Commission, in Hungary, car users pay only one-third of the cost they cause in comparison with the amount of transport-related taxes and fees they pay to the state, i.e. two-thirds of these costs are paid by the whole society.

For these reasons, it is even more urgent to get transport prices right, than getting household energy prices right. On the other hand, making everyone pay the full costs of household and transport energy would place an unbearable burden on poorer households.

However, this problem can be easily solved if there is political will to do so: households should be compensated, preferably by direct payment. (The revenues from the price increase would provide ample resources for such compensation.) Such a method has already been successfully applied in various countries. (The EU’s Social Climate Fund is envisaged to be one of the main sources of compensation in parallel with the introduction of ETS2.)

We now have the daunting task of explaining to the public why raising the price of fossil fuel, while compensating households will not only benefit the environment but will also substantially reduce social inequalities.


Responsible for the content of this article is EUKI project ClimateFair Monitor: Towards climate-neutral buildings and road transport

ELCA’s Ongoing Journey of Training and Empowerment in Climate Protection Management

This capacity-building initiative began with a series of dynamic roundtables, participatory workshops, and events in the 2 partner countries Czech Republic and Romania. These brought together key stakeholders to enhance communication and address the needs of local climate protection management. ELCA kicked off with a study visit to Moravia in the Czech Republic from March 7 to 9, 2024. This visit allowed project partners to familiarise themselves with the situation in tornado and flash flood-affected areas through field surveys and meetings with mayors of several municipalities. This visit to the South Moravian Region Podluží began with an introduction in Prague. It continued at the PIN office in Hodonín with a video presentation on regional disasters (tornadoes, floods) and current adaptation planning in climate action plans. The project partners toured the affected areas, discussing synergies in the regions, and issues in soil, water, and landscape protection with municipal leaders.
A symbolic act of planting two cherry trees in Moravská Nová Ves brought from Witzenhausen by ASD marked the beginning of a joint effort to restore the area sustainably. This event culminated in the planting of 27 more trees the following day in collaboration with local citizens and volunteers from the NGO Hnutí Brontosaurus Podluží. The event received significant media coverage, including live broadcasts on Czech Television and Czech Radio, highlighting a message of hope and solidarity.

Joint planting campaign in Moravská Nová Ves © PIN ELCA

Learning to act
In April 2024, ELCA launched the initial Climate Protection Management (CPM) Online- training programme. Led by experts from Germany, this training highlighted the various fields of climate protection management. Twenty-two participants from the Czech Republic and Romania – ranging from graduates and professionals to lecturers, NGO staff and local government officials – gathered in a virtual classroom for the first training phase. The learning objectives of these first 12 sessions covered key topics from climate change science and policy development to project management and stakeholder engagement, from risk assessments to current evaluation questions in climate protection management and sustainable development. The programme is structured in such a way that intensive on-site workshops gradually replace online training in the 2 Community Support Centres that have already been set up. The workshops have a particular focus on local climate action plans in climate mitigation. These local workshops will become centres of practical learning, which is crucial for the effective management of climate protection measures.

Linking knowledge, theory, and practice
The programme’s second phase included a study trip to Germany, Witzenhausen in Hesse.
ASD headquarters is located in a small, vibrant university town in the Werra-Meißner district of northern Hesse, known for its picturesque landscape of rolling hills, forests and nature parks. The region is home to several endemic and rare species and a large number of small and medium-sized enterprises specialising in environmental technology, renewable energy, resource conservation and environmental management. This is particularly noteworthy as the region is one of the more structurally green regions in Germany, and there are many examples of successful rural development and organic farming.
The trainees spent a week learning about local climate protection management. They met with climate protection managers and learnt about specific topics such as green infrastructure, sustainable resource use, renewable energies, energy efficiency, stakeholder collaboration in practice; they also saw examples of climate projects in action. The practical work aspects of the capacity building offer the option of working on specific local project initiatives or regional climate action plans needed and preparing them for application. Each project proposal will not only bolster local initiatives but also contribute innovatively to broader climate mitigation efforts. In addition to further workshops, mentoring and coaching of the interdisciplinary project teams will be a mainstay of project support.          

Trainees during the excursion to the Frankenhausen state domain, Hesse © ASD ELCA

Going new ways together
Two Community Support Centres were established, one in the Czech Republic (Hodonín) and one in Romania (Timisoara). These centres will further strengthen local communities with knowledge exchange and the assessment tools necessary for local climate action. In line with the ELCA approach to ownership, some of the new climate protection managers might support these community centres after completing the rigorous ELCA training with newfound skills and networks and with a shared commitment to steer their communities toward a sustainable, resilient future.
The new ELCA website was launched in November. It provides an overview of the activities that have taken place to date and should continue to flourish as a networking and information platform.

The second study tour and final ELCA conference will take place from 24th to 27 th March under the motto ‘Empowering local climate action’ and will once again give the participants the opportunity to see climate-friendly best practices in the region, discuss with local climate protection managers and present their project work to an interdisciplinary panel of experts in Witzenhausen, but will also promote European networks that are crucial for collaborative climate action.

Green Kick Drives 15 Local Governments into the EU Covenant of Mayors

The three-year project includes a set of main activities, such as training sessions for civil society organisations and local governments, awareness-raising campaigns, and a participatory process for the development of local environmental policies (SECAP).

In 2024, project consortium members, the Centre for Development and Support from Tuzla, Bosnia and Herzegovina, FORS Montenegro from Nikšić, and Smart Kolektiv from Belgrade, Serbia, launched a public call and selected 15 local self-governments (LSGs), five in each country. These include Čelić, Lopare, Orašje, Živinice, and Kladanj from Bosnia and Herzegovina; Petrovac na Mlavi, Vrnjačka Banja, Smederevska Palanka, Novi Pazar, and Kragujevac from Serbia; and Danilovgrad, Nikšić, Plužine, Berane, and Mojkovac from Montenegro.

The joint working teams of representatives from local self-governments and civil society organisations – project consortium and GEAR regional network members – have been formed and have begun the process of these LSGs acceding to the EU Covenant of Mayors for Energy and Climate (CoM). In parallel, they have also initiated the development of Sustainable Energy and Climate Action Plans (SECAPs), in accordance with CoM methodology and strategic EU goals in decarbonisation.

A set of advanced training sessions for project consortium members (four events with topics related to green transition, decarbonisation, clean and sustainable energy, and presentations of best EU practices from the EU Green Deal and WB Sofia Declaration), and a set of mentoring workshops to support project consortium partners, delivered by CRP Bosnia and Herzegovina (two events on topics such as training Green Kick partners – the first phase of SECAP design and basic communication with LSGs; development of Sustainable Energy and Climate Action Plans – defining the baseline emission inventory (BEI) and data collection), have been organised so far. Each project consortium member has implemented two rounds of SECAP workshops (kick-off and first SECAP workshop), with joint teams, in 15 selected local self-governments, further boosting the SECAP development process. The special value of this project is the establishment and functioning of joint teams comprising local governments and civil society organisations, focused on the creation of environmental policies at the local level in a coordinated process across three countries in the Western Balkans.

It’s great to see 15 local self-governments from three countries joining the EU Covenant of Mayors and moving forward with the development of SECAPs.

Joint team for SECAP development attending workshop in Danilovgrad, Montenegro

Project partners attending the SECAP design and basic communication with LSG, workshop in Belgrade, Serbia

Joint team for SECAP development attending workshop in Živinice, BiH

Kavala’s Green Leap: Sustainability through Co-Creation and Circular Economy

Co-Creation Workshops: From Theory to Practice 

As a cornerstone of the CURE+ project, the Municipality of Kavala has implemented accredited Co-Creation Workshops. These interactive workshops were designed to engage local stakeholders, citizens, and professionals in theoretical and practical learning experiences. The workshops aimed to bridge the gap between conceptual understanding and real-world application, empowering participants with the skills to contribute to the circular economy. The structure of the workshops included two primary components: 

  1. Theoretical Learning: Participants were introduced to the core principles of the circular economy through online training sessions. Educational materials, accessible to all participants, provided a comprehensive overview of the key concepts, benefits, and global significance of reuse and recycling. 
  1. Hands-On Practice: The practical component of the workshops emphasized skill-building activities under the guidance of specialized professionals. Participants engaged in creative and technical tasks, such as repairing, upcycling, and transforming materials and objects that would otherwise be discarded. 

A total of 66 participants took part in the workshops, divided into three groups of 22 individuals each. The sessions covered three distinct topics, each focusing on a specific aspect of reuse and sustainability: 

Repairing Wooden Furniture

In the first set of workshops (18/11/2024-21/11/2024), participants learned the basic principles of woodworking, which form the foundation for repairing and renewing old wooden objects. The sessions covered essential techniques, such as how to identify and fix cracks in wood structures, remove foreign objects or blemishes from wooden surfaces and sanding techniques to restore smoothness and prepare wood for subsequent treatments. 

Through these activities, participants gained practical knowledge of sustainable resource use, learning how to extend the lifecycle of wooden furniture while reducing waste. The process fostered a deep appreciation for craftsmanship and the value of repurposing materials. 

As for the transformation in practice, the participants in the first stage assessed the condition of old furniture and then they applied repair techniques, reshaping and refining materials. The outcome of the workshop was fully restored and functional furniture. The aesthetic and the design of the outcome demonstrate the potential for renewal and reuse. 

Photo © Alexandros Tsiamis, the Municipality of Kavala – upcycling process of an old piece of furniture

Upcycling for Designers

The second set of workshops (22/11-27/11) focused on upcycling, an innovative process transforming waste materials into valuable products. Participants explored creative approaches to designing small furniture and decorative items using wood as the primary material. With support from experienced technical staff, they learned painting and surface treatment techniques to enhance the appearance of reused materials and gluing and assembly methods for creating new, functional items from repurposed wood. 

Participants were encouraged to bring their items to the URC, where they actively repaired and refreshed these objects. This hands-on approach heightened their awareness of the environmental and economic benefits of upcycling, illustrating how discarded materials can be repurposed into meaningful creations. 

Photo: Alexandros Tsiamis, the Municipality of Kavala
Photo © Alexandros Tsiamis, the Municipality of Kavala – Experienced staff demonstrating technical skills

Tactical Urbanism

The final series of workshops expanded the scope of reuse to the public domain through Tactical Urbanism. Participants worked with urban equipment, such as old steel and metal components, to create functional objects for public spaces. This approach involved cutting, sanding and polishing metal materials, but also designing and constructing new applications, such as tables or decorative elements, for use in communal areas. 

These activities showcased the potential for creative reuse of urban resources and contributed to improving public spaces in Kavala. The process underscored the importance of sustainable urban development and the role of community collaboration in enhancing the built environment. 

Photo: Alexandros Tsiamis, the Municipality of Kavala
Photo © Alexandros Tsiamis, the Municipality of Kavala – Table made from recycled material for public spaces

The Impact of the Activities 

The Co-Creation Sessions have had a transformative impact on the community of Kavala. Key outcomes include: 

  • Residents developed a stronger sense of belonging and collaboration by participating in hands-on workshops. The initiative fostered a spirit of teamwork and shared responsibility for environmental stewardship. 
  • Participants better understood the principles of reuse, recycling, and sustainable resource management. These skills and insights have empowered them to adopt more environmentally conscious practices in their daily lives. 
  • Participants received certificates acknowledging their newly acquired skills and knowledge after completing the workshops. These credentials validate their learning and enhance their personal and professional opportunities in fields related to the circular economy. 

Synergies 

The URC initiative was further strengthened through partnerships with educational institutions, including Kohfidisch Mittelschule and the 7th Gymnasium of Kavala, as part of the ERASMUS+KA121 (2024-1-EL01-KA121-SCH-000210334) project focused on green initiatives. This collaboration introduced students to the principles of the circular economy through: 

  • Creative workshops emphasizing the reuse of everyday objects. 
  • Technical training sessions that developed their ability to repair and repurpose items, fostering innovation and practical problem-solving skills. 
  • Students gained a hands-on understanding of the product lifecycle, learning how to give a “second life” to objects. This experience not only raised awareness about sustainable resource management but also inspired the next generation to contribute actively to environmental preservation. 
Photo: Tsiamis Alexandros, the Municipality of Kavala
Photo © Alexandros Tsiamis, the Municipality of Kavala – Group photo of all workshop participants/students

The Municipality of Kavala’s Co-Creation Sessions under the project “Centres for Urban Resources, Reuse and Remanufacture (CURE+)” represent a powerful model for promoting sustainability, collaboration, and innovation. By combining theoretical knowledge with practical skill-building, these workshops have empowered participants to embrace the principles of the circular economy and apply them in meaningful ways. Through its ongoing efforts, the municipality is paving the way for a greener, more sustainable future, serving as an inspiring example for communities across Europe and beyond. 

Riga Energy Agency is implementing EUKI project  CURE+ in cooperation with the Tartu City Government, Municipality of Kavala, Amsterdam University of Applied Sciences and Elisava Barcelona School of Engineering and Design. The project aims to improve the management of construction and demolition waste generated by households through reuse and repair respecting the principles of the circular economy. 

Blue Energy Fellow Story: Advocating for Offshore Wind Energy and Environmental Co-Existence in the Black Sea

Marian Ignat is a 23-year-old activist, freelance journalist, and aspiring energy and environmental policy analyst. He graduated in Political Science in early 2023, with a thesis on political ecology in Costa Rica. His academic journey included two years at the University of Bucharest and one year at Carlos III University of Madrid. He began a Master’s in Public Policy – Energy, Environment and Sustainability at Sciences Po in August 2024. His professional experience includes work with WWF, Generation Climate Europe (GCE), Ashoka, and Youth and Environment Europe (YEE).

The Blue Energy Fellowship

Marian was attracted to the fellowship program due to Energy Policy Group’s respected work and the opportunity to join a team of professionals focused on developing offshore wind energy capacity in the Black Sea. He was particularly interested in participating in the Black Sea Energy Coalition and enhancing his skills in stakeholder engagement. Additionally, the fellowship presented a valuable learning opportunity, given his limited prior exposure to offshore wind.

“I am more confident in my knowledge of the offshore wind energy industry, especially in the Romanian and Black Sea context. I’ve also followed the development and approval of the Offshore Wind Energy Law and I’ve participated in several working groups discussing issues such as environmental co-existence, which I’m particularly fond of. I am certainly more familiar with the terminology used in this field and I believe that this will be a great advantage in my Master’s.”

Marian Ignat

Marian is excited about the potential for marine renewable energy infrastructure to act as artificial reefs, attracting fish and supporting biodiversity. These structures can create new habitats for marine life, attracting fish and other sea creatures, thereby supporting and enhancing local biodiversity. This innovative approach not only contributes to clean energy production but also offers ecological benefits, demonstrating a harmonious balance between technological advancement and environmental stewardship.This aligns with his concern for the anthropocentric impact on biodiversity and highlights the importance of design in preserving ecosystems while building clean energy power plants.

A Key Takeaway or Memorable Story

A memorable quote from a capacity-building event in Bucharest emphasised the importance of considering the environmental impact of renewable energy projects: “There is no sense in making progress on one front and losing on the other.” This speaker was talking about carefully considering the environmental impact of renewable energy projects, and I think this is crucial. While the rush to net zero is paramount in tackling the climate crisis, overlooking the impact on nature will only hinder the progress towards a truly clean and just economy for all.

Blue Energy Fellow Story: Toward Climate Neutrality by 2050

Ciel Bovary is currently a master’s student studying Global Entrepreneurship, Economics, and Management. In their free time, they enjoy reading and discovering new art galleries and cafes.

The Blue Energy Fellowship

“I initially was attracted by the prospect of expanding my research area to something that has a positive impact on humanity and collaborating with like-minded individuals. The idea of contributing to a cause that has a significant positive impact on humanity, specifically the goal of reaching net zero emissions, was particularly compelling, especially in the case of Romania. This fellowship offered a unique platform to delve into innovative solutions and strategies aimed at combating climate change and promoting sustainability.”

Ciel Bovary

During the fellowship, Ciel has developed a heightened attention to detail, an essential skill for conducting thorough and accurate research. This meticulous approach has enabled them to delve deeply into the complexities of marine renewable energy, particularly offshore wind farms.

Ciel has been a great support to the management of the Black Sea Renewable Energy Coalition (BSREC) as part of the BLUECEE project, particularly preparing content, meetings and advice to the working group on Enabling Infrastructure. The working group tackles the challenges of developing the enabling infrastructure for offshore wind energy deployment, focusing on enhancing the Black Sea region’s transmission grid, the ports’ capacity, and the supply chain management, facilitating the functioning of offshore wind energy projects.

A Key Takeaway or Memorable Story

“In the end, all the struggles have the same objective: the defense of life” – Ana Sandoval

Blue Energy Fellow Story: A Vision for a New Technology for Marine Renewable Energy

In the dynamic field of renewable energy, a new generation of pioneers is making waves. Among them are four young Blue Energy Fellows, each at the early stages of their promising careers – Marian Ignat, Slaviana Peeva, Martin Velichkov and Ciel Bovary.

These bright minds are not only pushing the boundaries of offshore wind technology but also carving out their paths as future leaders in sustainable energy. Join us as we explore their journeys, innovative projects, and the fresh perspectives they bring to the world of offshore wind in the Black Sea region and Central and Eastern Europe.

Slaviana Peeva is a researcher from Universidad de Cádiz, Spain, with a background in environmental history and maritime economics. Slaviana had recently completed a degree focused on the blue economy and was curious to learn more about marine renewable energy (wind, tidal, wave) and the process of engaging various stakeholders.

The Blue Energy Fellowship

During the fellowship, Slaviana deepened her understanding of the sustainable exploitation of sea resources and the optimal use of sea space. By researching the concept of Multi-Use, she learned about the socio-economic and environmental benefits of combining offshore wind energy with aquaculture and offshore wind with desalination plants, as well as the potential co-existence of offshore wind and nature.

“The scientific and technological capacity of integrating two major infrastructures such as a floating wind turbine and an aquaculture cage is a really exciting new field I would like to explore more. A consortium from the Canary Islands has been chosen to develop such a multi-use platform. It will conduct real-world tests for the first time after finishing my fellowship, integrating marine energy production with live fish aquaculture in the Atlantic region.”

Slaviana Peena

The floating wind turbine will harness wind energy to generate electricity, while the aquaculture cage will be used for farming fish. This dual-use of marine space can lead to significant economic and environmental benefits. For instance, the energy generated can power the aquaculture operations, reducing reliance on external energy sources and lowering the carbon footprint. Additionally, the presence of the aquaculture cage can enhance the local marine ecosystem by providing habitat and promoting biodiversity.

Slaviana is thrilled by the potential of this project to revolutionise the way we think about and utilize marine resources. She believes that such innovative solutions are crucial for achieving a sustainable and resilient blue economy, where economic growth and environmental protection go hand in hand.

A Key Takeaway or Memorable Story

One of the highlights from the fellowship for Slaviana was attending an MSP capacity-building workshop. The complexity of the studied coastline, with its numerous Natura 2000 sites, busy marine traffic, and rich underwater cultural heritage, showcased how balancing energy needs with environmental protection requires assessing a multitude of spatial factors and finding synergies among various economic actors.

Blue Energy Fellow Story: Toward an Inclusive Local Economy

In the dynamic field of renewable energy, a new generation of pioneers is making waves. Among them are four young Blue Energy Fellows, each at the early stages of their promising careers – Marian Ignat, Slaviana Peeva, Martin Velichkov and Ciel Bovary.

These bright minds are not only pushing the boundaries of offshore wind technology but also carving out their paths as future leaders in sustainable energy. Join us as we explore each of their their journeys, innovative projects, and the fresh perspectives they bring to the world of offshore wind in the Black Sea region and Central and Eastern Europe.

Martin Velichkov’s academic and professional journey spans various fields. He holds advanced degrees in political science, nutrition science, and pharmacology, complemented by a PhD in Psychology. This background has equipped him with a unique, interdisciplinary perspective on the socio-political and environmental challenges we face today. Currently, he is a Blue Book trainee at the European Commission.

Martin at his PhD ceremony at the University of Reading. Personal archive © Martin Velichkov.

The Blue Energy Fellowship

Martin saw this fellowship as a chance to contribute to a transformative project, the BLUECEE initiative, which focuses on fostering sustainable energy practices across Central and Eastern Europe. Given his passion for sustainable development and policy advocacy, this role aligned perfectly with his professional goals and his desire to drive impactful change in energy governance in the region.

“During the fellowship, I learned a lot about marine wind energy and how it can be employed in a nature-friendly way. I also gained practical experience in moderating working group meetings and enhancing the BLUECEE coalition outreach through developing and disseminating updates. I have also improved my ability to maintain strategic collaborations with partner organisations, fostering a stronger network for advancing renewable energy initiatives.”

Martin Velichkov

The potential of offshore wind energy is one of the most exciting aspects of marine renewable energy for Martin, especially when it comes to the Black Sea region. He is particularly fascinated by the possibilities of biodesign in offshore wind turbines, which combines sustainability with innovative engineering to minimize environmental impact. The chance to contribute to a project that explores these innovations while addressing regional energy needs has been very enriching for him.

A Key Takeaway or Memorable Story

One memorable experience during Martin’s time with the CSD was a working group session where participants discussed the challenges of implementing offshore wind projects in the Black Sea. Hearing firsthand the perspectives of stakeholders from various sectors was both enlightening and inspiring. A particularly striking moment was when a partner from a coastal community shared how collaborative governance could transform their local economy. This experience reinforced Martin’s belief that successful renewable energy initiatives rely on inclusive, community-focused approaches.

“This fellowship has not only deepened my understanding of renewable energy policy but has also strengthened my resolve to champion sustainable development initiatives that respect local ecosystems and community needs.”

Martin Velichkov

Harnessing the Winds of Change in CEE: Exploring the Experience of Denmark’s Offshore Wind Energy Industry

Experts from CSD, EPG, FSB and Instrat were joined by Delian Dobrev, the Chairman of the Energy Committee to the National Assembly of Bulgaria , Emil Kaikamdjozov, the Executive Director of Bon Marine Holding Bulgaria and member of the Bulgarian Marine Chamber, Andriy Konechenkov, Chairman of the Ukrainian Wind Energy Association, Liviu Gavrila, Vice-president of the Romanian Wind Energy Association – RWEA and Marta Sturzeanu, Policy officer at the Romanian Wind Energy Association – RWEA, as well as Ana Miljanović Rusan, Manager – Offshore Energy and Nature at Renewables Grid Initiative.

The delegation met with a wide range of offshore wind industry stakeholders, including Energinet, the Danish Energy Agency, CEOs of Odense and Esbjerg ports, and State of Green, Copenhagen Infrastructure Partners, Esbjerg Port, Odense Port, the Danish Fishermen Organisation, and Energinet – the Danish Transmission System Operator (TSO).

The study visit facilitated the transfer of innovative technologies, highlighted new investment opportunities and promoted the adoption of best practices in regulatory and environmental conservation aspects of offshore wind in the CEE region. The study visits also paved the way for future, mutually beneficial partnerships with Danish companies and authorities on offshore wind and innovation in the Black Sea.

Below are some key highlights and lessons learned from Denmark’s offshore wind energy landscape.

National energy priorities

Wind energy has been a critical part of Denmark’s strategy since the 1970s, initially motivated by the oil crises. Today, the country is gradually phasing out coal, with wind energy playing a pivotal role. The government’s focus on wind farms—both onshore and offshore—has transformed Denmark into one of the world’s leaders in wind energy production. Denmark remains committed to renewables, particularly wind energy, as part of its long-term energy strategy. One of Denmark’s most notable achievements is maintaining a 99% security of energy supply, meaning residents experience power outages for only 20 minutes per year. This illustrates that it is possible to rely heavily on renewables without compromising energy stability.

The study visit delegation at a meeting with Energinet © Remina Aleksieva (CSD).

Offshore Wind Development

Denmark is scaling up its offshore wind capacity with new tenders designed to facilitate overplanting, allowing more than 9 GW of energy to be produced in designated offshore zones. The Danish government aims to become a net exporter of green energy, with interconnectors to the UK, Norway, Sweden, and Germany. Participants discussed similarities with the energy demand for Bulgaria, Romania and Denmark, and ways to effectively manage the system in the longer term. In addition, participants discussed the regulation and practices for inclusive stakeholder engagement in offshore wind, and how these can be adapted to the Black Sea region.

Critical Infrastructure Expansion

As offshore components become ever larger and can only be transported by water, the wind industry has naturally moved closer to the ports. The delegation met with high-level representatives from Odense and Esbjerg ports to learn more about their historical development and innovative approaches.

As adequate port infrastructure development is essential for the Black Sea region, participants discussed the potential readaptation of existing port infrastructure in Bulgaria and Romania, managing supply chains with limited port capacity for production and installation. The meetings featured an informative tour around the port facilities, including construction and installation sites.

Both ports have experienced long transformation and development. For many years, the Port of Esbjerg was used for fishing, and in 1970, it was the largest fishing port in Denmark and home port to about 600 fishing boats. Now, more than 4/5 of the current amount of offshore wind capacity installed in Europe was shipped out from the Port of Esbjerg. Odense Port on the other hand, is Odense Port is Denmark’s largest port, with 8.5 million square metres of necessary space for offshore wind production in Europe. The ports are continuously being transformed to ensure high technological offshore wind energy development,  production, and testing.

The study visit delegation at Odense Port © CSD.

Local Involvement and Stakeholder Engagement

Local municipalities play a crucial role in Denmark’s renewable energy efforts. While they do not have a special process for participating in wind farm auctions, they can join as part of a consortium. Offshore wind farms, in particular, offer significant job opportunities for smaller communities, particularly through the development of local harbours. To manage opposition, particularly from local municipalities and the fishing industry, Denmark has developed compensation schemes. According to Danish legislation, Fishermen are compensated for lost territories, and public hearings are held to engage and inform citizens about upcoming projects. Public acceptance of wind energy is generally high, especially for offshore installations that do not visually impact daily life.

It is important to note that environmental considerations are addressed way in advance at the beginning of the offshore wind planning stages, though extensive research and mitigation measures for affected industries.

The study visit to Denmark offered an exceptional opportunity to gain insights into the technical, regulatory, and social aspects of Denmark’s green transition, exploring how the country balances economic growth with environmental responsibility. Denmark’s forward-thinking approach, particularly its focus on offshore wind and cross-border energy collaboration, can serve as a blueprint for the Black Sea Region toward its path to build a sustainable and resilient energy system.

Knowledge Exchange and Capacity Building: Key for the Development of Offshore Wind in CEE

The Faculty of Mechanical Engineering and Naval Architecture from University of Zagreb, organized the first Capacity Building Workshop in Dubrovnik on the topic of Maritime Spatial Planning (MSP). Representatives from the academic community, research organizations, regional energy agencies, and others discussed the topic of MSP in the context of European and Croatian regulation, legislation and policy related to development of offshore renewable energy sources. The special focus was on the outlook of offshore wind potential and development restrictions regarding environmental, landscape, spatial, technical, regulative, and economic factors in the Adriatic Sea. 

Center for the Study of Democracy organized a capacity-building workshop on the need for a consistent and effective regulatory set-up to unlock the offshore wind energy sector. The workshop was attended by 26 participants and gathered representatives of the European Commission and leading politicians and experts in the field of wind energy, including Radoslav Ribarski, Deputy Chairman of the Parliamentary Committee on Energy, Vasil Stoynov, Policy and Legal Officer, Renewables and Energy System Integration Policy, DG ENER, European Commission, Ivan Pineda, Director for Innovation at WindEurope, Tõnn Tuvikene, Head of the Estonian-Latvian cross-border project ELWIND, Oana-Alexandra Ijdelea, Managing Partner at the Romanian law firm Ijdelea & Associates, and Mihai Constantin, Senior Researcher at the Romanian research institute EPG. The WindEurope’s experts represented the OCEAN coalition, in which they act as key members. 

The topic of discussion was the comprehensive draft Bulgarian Law on Renewable Energy Sources in Marine Spaces, which has passed at first reading in late January 2024. CSD has leveraged its analytical work in the project to prepare the conceptual framework for the new legislation. The draft law proposes two approaches for site development, tenders for promising areas and integration of offshore wind deployment areas into the national Marine Spatial Plan. The latter was approved in the spring of 2023 but does not include specific areas for offshore wind energy deployment. At the same time, the European Commission has supported the building of the first demonstration floating offshore wind energy project in the Black Sea.  

The participants agreed that the offshore wind deployment carries large technical, economic, social, and environmental benefits, making it an attractive investment option for the Central and Eastern Europe region. It can accelerate the decarbonisation of the power sector, improving energy security, and boosting the local economy. 

Energy Policy Group (EPG) organised a workshop in Bucharest, Romania, with a special focus of the discussion was on environmental co-existence. The event featured Cristina Pruna, Vice-president of the Industries and Services Committee at the Romanian Parliament, Alexander Simidchiev, Member of the Bulgarian Parliament, Ana Miljanović Rusan and Deni Aguilar Bellamy from the Renewable Grid Initiative, Vlad Rădulescu from GeoEcoMar and Liviu Gavrila from RWEA. The participants discussed that a sound public policy design and legislation, well-coordinated marine planning and permitting procedures can ensure reliable environmental protection and geological-geophysical data. They agreed that highlighting the concrete benefits of offshore energy by the local communities can enhance the social acceptance of capital-intensive and complex offshore energy investments. There was a particular focus on the options for establishing fair auctioning procedures without endangering the goals of the EU environmental law.  

Workshop participants in Bucharest © Energy Policy Group

In Warsaw, Poland, Instrat Foundation organised a workshop focused on the grid, infrastructure and industrial development. It was attended by experts and practitioners working on offshore wind power investments in Poland and the CEE region, as well as civil society representatives.

The speakers shared the opinion that the development of an offshore wind industry can greatly benefit local communities if citizens are actively involved in the process from the beginning and if the state pursues a pro-active industrial policy that supports the establishment of local supply chains and helps with reskilling workers to ensure a larger local content in the offshore wind industry.

Speakers and participants at the Instrat Foundation workshop in Warsaw © Instrat

Ambitious project pipeline envisioned by Polish 2030 and 2040 goals can support the development of various domestic-related industries with significant export potential. This is also an opportunity for smaller Polish ports, which will be used for maintenance of offshore wind farms for decades to come, providing much-needed economic activity in cities like Władysławowo or Ustka.

European offshore wind value chain can improve our energy security and ensure stable conditions for ambitious build-up envisioned by the EU targets, but prioritizing Polish or European local content could increase the immediate investment costs. Careful regulatory intervention, based on multifactorial assessment, is thus needed both on the European and national level.