New wave of EU funding: What just transition programs are opening in 2025 in Bulgaria?

Over EUR 1 billion will be available for the coal regions of Stara Zagora, Pernik and Kyustendil under the Regional Development Program, Priority 3 – Just Transition Fund (JTF). The opportunities for citizens and businesses in these regions affected by the coal phase-out were presented by Radka Tileva, manager of the Regional Information Center (RIC) – Stara Zagora Radka, during the “Just Transition in Stara Zagora” conference, organized by Brand Media Bulgaria in partnership with the Regional Economic Development Agency – ​​Stara Zagora (SZEDA) and the “Europe Direct” Center – Stara Zagora.

The event forms part of the EU-funded project "Career Transition of Opportunities" (TOP JOBS).

According to the implementation plan of the program, a total of 8 measures will be announced this year, which will target the social, climate and economic transition. These programs have a combined impact on three aspects of the transition.

Programs in progress

A budget of 1.5 million euros will finance a mapping of the skills of indirectly affected individuals in the areas most affected by the climate transition. Tileva noted that there is a similar program under the Recovery Plan (RRP), but that one maps only those directly affected by the transition. The results of the JTF-funded program will be used at a later stage to determine which area needs an increase in reskilling and upskilling efforts.

The "Support for workers in the affected sectors through training for qualification and requalification" initiative is also underway, with a budget of 55 million euros. It is aimed at employees in companies - operators of thermal power plants and concessionaires of coal deposits. The first deadline for applying under it is March 13, 2025, and the second – June 13, 2025.

The "Diversification and Adaptation of Small and Medium-sized Enterprises to the Economic Transition" call has also been open since the end of January. It is open to micro, small and medium-sized enterprises from all over the country, but the investments they apply for should be implemented in the territory of the "just transition" regions, that is, in the municipalities affected by the coal phase-out. The deadline for submitting projects is May 15, 2025.  

Eligible under it are investments in production capacities, development of new productions or expansion of existing ones.

Eligible expenditures under that call:

• Acquisition of machinery, facilities and equipment;
• Creation/acquisition of specialized software for the production process;
• Construction and installation activities (C&I) related to investments;
• Accompanying costs (author's supervision, construction supervision, commissioning, etc.);
• Rental of office premises up to 10% of the total eligible project costs;
• Purchase of land up to 10% of the total eligible project costs, etc.

Upcoming programs

A long-awaited program under the JTF is "Support for Industrial and Logistics Parks", which is expected to start by the end of March. It has a budget of 75 million euros, with 55 million euros allocated for Stara Zagora and 10 nearby affected municipalities.

Eligible partners

• Municipalities;
• Road Infrastructure Agency;
• National Railway Infrastructure Company;
• Water supply operator;
• ESO;
• Operators of electricity and gas distribution networks.

By the end of the year, the plan is to also open "Support for Energy Communities for Sustainable and Clean Energy Solutions", with a total budget of 150 million euros. The idea is to introduce the use of green energy in the final energy consumption of public buildings; encourage the creation of energy communities; and increase the use of energy from renewable sources.

Eligible candidates are micro, small and medium-sized enterprises and municipalities in the regions, in this call the grant amount is 100%. According to the plan, it should start between the second and third quarters of the year.

Financing for Stara Zagora

The "Production investments in large enterprises" call with a budget of 232 million euros will open this year, targeting only Stara Zagora. The funding will be used for the renovation of existing production assets and the construction of new production assets for new activities. The grant will be up to 50% of the total cost and no more than 15 million euros. It is expected to open in the second quarter of 2025.

Now is the time to think about how this can benefit large enterprises in the region," said Rumyana Grozeva, Executive Director of the Regional Economic Development Agency - Stara Zagora, who also acted as the event’s moderator.

In 2025, a "Mining Land Reclamation Program" will also be launched with funding of 282 million euros. The money will be used to restore the lands disturbed by mining activities, in compliance with the "polluter pays" principle. This is the so-called primary land reclamation and preparation of the terrain for alternative economic activities (development of industrial/logistics zones, construction of renewable energy capacities). The call should be opened in April - June this year. 

These calls are at the initial stage of developing the application conditions," Tileva specified.

Another important program - "Qualification and retraining to support the green transition" - is expected to start this year but at a later stage. The reason is that it must first take into account the mapping study and the results it provides. The results will be included in the conditions of this call. It will have a budget of 62 million euros and is expected to start accepting applications in the 3rd/4th quarter.

The "Capacity for a hydrogen value-added chain" program should also become available this year. It has a budget of 145 million euros and is for environmental impact studies, the creation of hydrogen production facilities - fuel cells, charging stations, and scientific activities. Micro, small and medium-sized enterprises in partnership with municipalities and other organizations can apply for it.

The "Support for photovoltaic parks" program (70 million euros) should also open under the JTF this year. It will support the construction of photovoltaic parks with electrolyzers and/or storage systems. It will provide up to 100% funding, and applications will begin to be accepted in the third quarter of the year.

The "Clean Energy" call (69 million euros) will aim to promote energy efficiency in SMEs through the implementation of biogas, biomethane, wind turbines and geothermal energy installations.

68.5 million euros will be allocated for "Support for Research and Development" (R&D). The funding will increase the R&D internal capacity in enterprises; development of product and production innovations; development of green products through a circular economy and cooperation with academia.

According to the indicative schedule, the last two programs will become available at the end of the year.

Co-Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the Managing Authority. Neither the European Union nor the Managing Authority can be held responsible for them.

Translated by Tzvetozar Vincent Iolov