Report: EUKI Academy Web Seminar Advancing CEE’s Green Deal for European Energy Goals

On 5 November, 2024, the EUKI Academy hosted a web seminar together with E3G and CEE Bankwatch, based on their EUKI project Local Leaders for the Next Generations. It included a review of the progress the EGD has driven in CEE, based on the E3G and CEE Bankwatch report “Powering up Central and Eastern Europe”. The event featured a discussion how the next phase of the EGD can address remaining gaps in achieving the region’s energy goals committed to at COP28. The web seminar highlighted the need for a just transition, focusing on socio-economic and structural challenges.

Pieter de Pous (E3G) opened the event with an introduction on Central and Eastern Europe’s progress towards the European Green Deal and the UAE Consensus of COP28. It was followed by a panel discussion including inputs from several experts in the energy sector:

• Tereza Kuncova, State Environmental Fund of the Czech Republic

• Michal Smolen, Head of Energy & Climate Program, Instrat Foundation, Poland

• Gheorghe Visan, Grids and Energy Markets Expert working for the Transmission System Operator of Romania, joined in individual capacity

• Binnu Jeyakumar, Senior Advisor, Powering Past Coal Alliance (PPCA)

Review of the EGD so far

Since its implementation, the EGD has proved to be an accelerating instrument for the energy transition in CEE. Indeed, CEE governments are progressing in their energy transition, i.e. through increasing investments in renewable energies, the phase-out of fossil fuel combustion, the gradual introduction of more ambitious National Energy and Climate Plans (NECPs), as well as the expansion and improvement of transnational energy grids. Important energy transition programmes, such as the popular New Green Savings Program by the State Environmental Fund of the Czech Republic, are mainly enabled by EU programmes such as the EU Modernization Fund.

Additionally, regional and national governments, join climate alliances, such as the Powering Past Coal Alliance (PPCA), an organization with 180 members, targeting a coal phase-out by 2030 for OECD countries. As part of the PPCA, members are supported through government exchanges and sharing of best practices to promote practical solutions. The PPCA will also be actively engaged at COP29. You can learn more about its involvement here: COP29 – PPCA.

Upcoming Challenges for the EGD

The EDG faces several significant challenges in its next phases. Moving past the time of commitments, proper implementation of climate measures is becoming increasingly urgent. Therefore, investment in energy infrastructure, smart grids to handle the fluctuations in renewable energy input and the fast allocation of renewable energy permits are some among numerous challenges. While countries like Slovakia have phased out coal early, others, such as Poland, still face significant political and infrastructural challenges. National governments must engage in collaboration and accept the associated transnational effort involved. The modernisation of the Romanian energy grid in collaboration with Serbia or Moldova is only one of many excellent examples of these cooperations. On the other hand, centrally organized instruments prove to be difficult to implement. Therefore, local collaboration and realistic policy approaches are crucial. Direct door-to-door community outreach can be integral to addressing fragmented settlement challenges in the energy transition and especially in the heating sector.

Key Takeaways

During the discussion on the implementation of the EGD in CEE, several points emerged on which all panelists agreed. The pressing need to phasing out of coal-fired power generation, as well as the rapid expansion of renewable energies, smart grids, and energy storage. Two factors are recognized to be of particular importance. First, local and regional actors as well as governments are crucial for the transition. Circumstances vary so much from region to region that it is difficult to regulate at an exclusively national level. Second, cross-border cooperation between relevant stakeholders is important. It is essential for projects, funding, and knowledge exchange to address regional needs.

When discussing the continuation and expansion of the measures within the EGD, the panelists mentioned several possible challenges. The economic competitiveness of the EU and economic stability should be balanced with climate policy ambitions. In addition, regions relying on fossil fuel production, which are particularly common in CEE, will still be faced with high costs in the medium term and infrastructure barriers. Decision-makers need to be especially vigilant in this regard. They should make way for a just transition by funding projects that enable workers and regions to move away from coal dependency. This includes training and economic diversification initiatives in areas heavily reliant on coal. Beyond that, transparent communication on the benefits (“net positive development”) as well as the appropriate use of EU funds and private financing are essential for scaling-up projects. A just transition combined with a rapid increase in renewable energies would result in a decrease of energy insecurity, which is currently still widespread in CEE countries.

The web seminar concluded with an emphasis on the EU’s opportunity to lead by example globally, stressing that further cooperation, aligned goals, and sufficient funding opportunities will be essential to achieving a sustainable energy transition across CEE. The revision of the EU countries’ climate commitments towards the Paris Agreement in 2025 is seen as an opportunity for achieving ambitious climate targets and accelerating the energy transition.

Find the recording of the web seminar here.