Context
Ten regions in Ukraine, which are home to around 2.2 million people, are dependent on the coal industry. They are therefore directly affected by the planned coal phase-out by 2035. Since 2022, they have also been facing social and economic challenges due to Russia’s war of aggression. However, the Ukrainian Government remains committed to phasing out coal and thus contributing to international climate action efforts.
The Ukrainian Government is promoting the diversification of the local economy, with the aim of ensuring a socially and economically just transition. The goal is for the regions concerned to be supported by investment in renewable energy and a climate-friendly economy.
Goal
A just transition has been driven forward in the Ukrainian coal regions. It places a particular emphasis on the impacts of war, the resilience of the energy system and the country’s aim to join the European Union (EU).
Approach
The project operates in four areas:
1. It supports the national government in developing a strategic, regulatory and institutional framework for a just transition, which is aligned with EU accession and the country’s reconstruction.
2. At regional and local level, the project develops capacities for economically viable and socially compatible structural change in the coal regions. It for example promotes dialogue between interest groups and decision-makers, and implements pilot projects.
3. It facilitates access to funding for a just and regional transition. For example, it is establishing a financing programme and advising the government and the coal regions with regard to mobilising investment.
4. It is providing emergency assistance and infrastructure support. This includes coordinating fundraising campaigns, for example, to rebuild coal regions destroyed by the war, and to secure the energy supply.