177th mBank–CASE seminar: A Just Energy Transition from the Perspective of Cities and Regions – the experiences of Poland and other EU Member States
The 177th mBank–CASE seminar, “A Just Energy Transition from the Perspective of Cities and Regions – the experiences of Poland and other EU Member States”, was organised online in the second quarter of 2023.
The seminar, held on 22 June this year, continued the topic of the energy transition in Poland, which had already been tackled at previous meetings within the series of mBank–CASE seminars. It has gained in importance over recent years due to the advancing climate changes and Russia’s aggression in Ukraine. In her introduction to the meeting, Dr Ewa Balcerowicz, head of the series of mBank–CASE seminars, recalled a remark made by Maciej Stańczuk and Robert Kuraszkiewicz during the 174th mBank–CASE seminar, that this transition – essential for maintaining and increasing the competitiveness of Poland’s economy – can only proceed smoothly when all political forces at the different levels work together. The 177th mBank–CASE seminar focused on local transformations taking place in regions economically dependent on lignite and hard coal mining.
The author of the keynote speech was Agnieszka Kulesa, Vice-President of the CASE Management Board, who coordinated an international study on the energy transition in three regions: Lusatia (Germany), Upper Nitra (Slovakia) and Wielkopolska (Poland); this was commissioned by the European Economic and Social Committee. She presented a description of the three regions, sharing a historical dependence on lignite and the necessity to shift away from its mining. She described the instruments applied, the various factors and approaches, and presented recommendations in terms of cooperation and the designing up social policies.
Lusatia is the region most highly experienced in regard to transformation, its first structural changes dating back to the 1950s. Its need for transformation was a result of local industry becoming less competitive, the region’s deindustrialisation, and the consequent significant fall in levels of employment. At the same time, the workers’ strong attachment to the occupation of miner meant that it was hard for them to seek employment in other sectors. Active measures were taken, and the involvement of job agencies and the coal commission, comprising representatives of various stakeholder groups and meant to ensure collaboration at all levels, was rated positively. This commission is behind plans to expand Lusatia’s industrial infrastructure, which would provide new and high-quality jobs. Germany’s central government is involved in the transformation, and has allocated 17 billion euros for the purpose. Regrettably, however, access to the funds is blocked by the multi-stage and lengthy project approval processes.
The situation is somewhat different in Upper Nitra, which is a relatively small region of major significance for the local economy, but only limited importance for the national economy. In this region too the transformation has been underway for some time now. The region’s departure from coal mining was planned for the years 2017–2023, with final closure of the operating mines and power plants due at the end of 2023. Preparatory measures for the transition to energy fuelled by natural gas and renewables have included the discontinuation of subsidies for the coal sector, while a strategic transition plan and development projects have been drawn up with small and medium enterprises also invited to take part in their preparation. Meetings were organised between the central authorities and local bodies such as trade unions, their aim being to reach agreement on the shape of the transformation. Additional safeguards were introduced to prevent the social side effects of redundancies, including the option of early retirement for miners and compensation. In the case of Upper Nitra, a significant portion of the financing for the programmes comes from the EU’s Fair Transition Fund.
Wielkopolska is an interesting case. Although one of the better-developed regions of Poland economically, the subregion of Eastern Wielkopolska has Poland’s highest levels of occupational inactivity, emigration, depopulation and aging society, coupled with the lowest wage rates. For the Konin Lignite Mining District located there, the neighbourhood of better-developed areas could constitute support, but could also be a threat, causing a further population drain and consequently the region’s collapse. The transition policy in Wielkopolska was drawn up through close collaboration with social partners, but its significant acceleration linked to the war in Ukraine, plus the unprofitability of mining, led to the breakdown of the social agreement reached earlier. Although some of the measures supporting the transformation of the Konin District were taken over by the Pątnów–Adamów–Konin Power Plant Complex, there lacked a systematic action plan, and the workers were in effect left to fend for themselves. As in Lusatia, attachment to the miner’s ethos is hindering their acceptance of the need for transformation. The priority is therefore support aiming to increase the awareness of green energy and participation in the job market, following which measures furthering their retraining could be effectively implemented.
To summarise, one can see a substantial need in all regions for cooperation between central government and the local and regional authorities. It is important to take into account the specifics of the region, its relations with the adjacent regions, and also the local demographic situation. A just transition requires that mine workers be looked after through the organisation of courses and support for retraining. For the measures to be effective, the staff responsible for them at the administrative level also require support and skills enhancement.
In her expert commentary following the presentation, Dr Aleksandra Gawlikowska-Fyk, Director of the Power Sector Program at Forum Energii, drew attention to the multifaceted nature of the transition and its long-lasting consequences – elements common to the process in all countries. Differences occur in how the changes are designed. Unlike in Germany, Poland has no central management that would support the planning of a country-wide transition. In the meantime, involvement by the central authorities is necessary at all stages, meaning at the planning stage but also when rolling measures out. Dr Gawlikowska-Fyk also pointed out that due to the scale of Poland’s mining industry, creating new and attractive jobs for former miners is very difficult, and requires a comprehensive approach aiming for diversification. Moreover, in lignite regions where the mining of coal runs simultaneously with its conversion into electricity, the changes necessary will be sudden and costly, and some regions have not yet started the transformation.
Representatives of two Polish cities and regions undergoing energy transition were invited to comment: Piotr Korytkowski, the President of Konin, and Andrzej Kosiór, head of the Strategic Management, Ownership Supervision, European Funds and Economic Development Office in Wałbrzych. Both cities have taken an ambitious approach to the transformation, setting themselves the goal of achieving climate neutrality earlier than envisaged by the EU timetable. European funds are to be used for accomplishing this goal, but in both cases the respective cities’ representatives felt that access to these funds and the scope of assistance was insufficient. They praised the high level of involvement and initiative shown by the local authorities and residents, who took an active part in designing the transition policy. The switch to hydrogen fuels, and in Konin’s case also the planned construction of a nuclear power plant, were mentioned among the important components of this policy.
However, differences between the regions appeared in their manner of planning the transition. President Korytkowski pointed out that the lack of central support from the state rendered it impossible to effectively implement the decisions taken. Wałbrzych’s representative on the other hand claimed that management of the transition concentrated at the level of voivodeship administration was a problem, hindering the realisation of local demands. It is clear to see that in regions economically dependent on the exploitation of coal deposits there is a strong call for better organisation of cooperation between all partners in the processes of energy transition, with the joint involvement of central, regional and local authorities, and that the implementation of this is essential for effective action.
The findings of the research presented in the report, along with the expert opinions and the experiences of the representatives of Konin and Wałbrzych, indicate the enormous gravity of the transformation processes taking place and their real-life impact on the lives of the local populations, as well as Poland’s energy security. The transition process is inevitable, and will have long-term consequences. Because of this, it is particularly important to plan well for the transformations, and to implement effectively the measures agreed upon. A just transition is possible, but only through cooperation between central, regional and local authorities as well as social partners.
According to information obtained from the website Bankier.pl, the event was followed live by 65 people, while 73 watched the recording; on Bankier.tv the numbers were respectively 68 and 145 (as of 19.07.2023). Link to the seminar:
