The Slovenian town where just transition has its own venue
The Zasavje Just Transition Center represents a second try to implement a post-coal economic development in the region – this time done right

In mid-November, Economic.bg travelled to Slovenia to check out the Zasavje Just Transition Regional Conference, an event that seeks to showcase the bold and brave things happening these days in a small, formerly-mining region, nestled deep within deep meandering valleys east of the capital Ljubljana.
Statistics claim that this is the poorest and most economically depressed region of the Alpine country though you wouldn’t know it by looking around. The streets and buildings of the small towns in the valley appear perfectly kept and prim and there’s an air of abounding serenity.
A legacy of boon and hardship
The thing is the Zasavje region (named so after the turquoise Sava River which snakes through it) has known economic highs and lows since the 19th century when coal was discovered. Previously, these valleys were only frequented by the elite of Ljubljana who practiced their hunting pastime there. But then as the story goes coal mining changed everything and the area grew to become one of the main industrial centers of former Yugoslavia with a glass factory, a lead foundry, a zinc plant, a lime kiln plant, and later a cement factory and a power plant mushrooming in proximity.
The industrial boom resulted invariably resulted in drastically heightened air pollution in the previously pristine valleys. Trying to solve it resulted in curious (and dubious) solutions such as building the tallest chimney in Europe with the aim of spewing the dark smoke above the hills.
The breakup of Yugoslavia and the resulting slump in the 1990s spelled trouble for the economic future of these heavy industries and it was not long after that lay-offs and shutdowns commenced. The post-coal transition in Zasavje had begun – though at the time few wondered whether it would be just.
The numbers are staggering. Between 2000 and 2020, the region experienced an 11% decline in population, driven by limited job opportunities and daily labor migration. Today, over 50% of the workforce commutes to more developed regions like Ljubljana—a trend that was only 20% at the start of the transition. The region’s GDP, once 80% of the national average, now lags at just 50%.
This daily outflow of workers significantly impacts the generation of local GDP not to mention that it also reduces the quality of life for the commuting residents.
“Commuters spend three hours a day traveling to and from work,” notes Martin Šikovc, head of the Zasavje Just Transition Center. “While proximity to Ljubljana has helped mitigate the impact (of unemployment), it’s not a sustainable solution.”
It’s already been a decade since the last mine and the coal power plant in Trbovlje (the one with the tallest chimney) have shut down and the story of this economic wind-down would probably sound familiar to other industrial regions in Europe – people were left to their own devices.
Perhaps the case of Zasavje is somewhat unique since people at least had the option to commute to the most developed region in the country – Ljubljana – located nearby. This, however, created a situation where unemployment was low but for those who did not or could not travel there was precious little left to do. Rather than shrug and embrace a future of being dull and distant bedroom communities, Zasavje residents turned to action and that’s how their Just Transition Center was founded.
“By 2014, it was clear that Zasavje needed a new plan for its future,” explains Šikovc. “The initial restructuring measures were insufficient, leaving the region to contend with chronic unemployment, outmigration, and a collapsing GDP.”
That’s right. Zasavje had already tried doing something about its transition away from coal with government help, but these efforts proved to be insufficient and misplaced. The EU’s new Just Transition Fund (JTF) thus provided the opportunities for a second take on these failed undertakings.
A question of timing
It’s somewhat ironic that being ahead of the pack when it comes to shutting down polluting industries did not bring accolades but despair. And it is only now that something is being done to redress this deficiency.
When asked whether he thought that the European Just Transition Mechanism was too late to matter, Martin Šikovc responded that while it certainly would’ve been better if this support had arrived earlier there was nevertheless still an opportunity to turn things around as long as all the local stakeholders were involved this time around.
This is where the body that he leads – the Zasavje Just Transition Center – has stepped in to ensure that the next chapter of the transformational process can be fairer and more effective.
The center shares a building with the Zasavje Regional Development Agency, in the town of Zagorje ob Savi, but its activities englobe the entire affected region. Founded with financing from the JTF in 2023, it serves as a social beacon and a brain hub for coordinating the activities pertinent to green transition in a way that every participant’s idea and concern form part of the larger mosaic.
By involving stakeholders across industries, the center has compiled a robust portfolio of 50 projects aimed at revitalizing the local economy.
“Our main role is to support project development and implementation,” says Šikovc. “We help investors shape ideas, monitor approved projects, and evaluate their progress. Our ultimate goal is to create jobs and attract investment in sectors like renewable energy, digitalization, and robotics.”
Circular Economy – the added value
The development experts in the region, however, were not content with presenting yet another predictable TJTP (Territorial Just Transition Plan) that would promise new companies and new jobs. They saw all of these developments united by a common principle, namely that of circularity.
That concept quickly turned into the brand or the face of Zasavje’s just transition and led to the creation of the first forward-thinking initiative led by the Just Transition Center – the Circular Economy Academy. The latter has quickly become a cornerstone of the center’s work, reflecting a growing global and regional interest in sustainability and resource efficiency.
The concept of a circular economy aligns with European Union priorities to reduce waste, conserve resources, and promote sustainability. For Zasavje, integrating circular principles is not just about environmental responsibility—it’s a practical strategy for fostering innovation and economic resilience in a region still finding its footing after the coal phase-out.
The Circular Economy Academy is free of charge and open to all, from business owners to residents interested in learning more about circular practices. Through workshops, study visits, and hands-on opportunities, participants gain insight into practical applications and creative solutions.
The workshops also serve as networking points for the creative and forward-minded entrepreneurs, civic activists and citizens of the region.
For example, one company in the region, Mycopor, used these workshops to showcase its work with biocomposite materials. Their product, a lightweight, biodegradable material for insulation, represents the type of forward-thinking innovation the academy seeks to foster. Remarkably versatile, this material could even be applied to futuristic concepts like "compostable airplanes," highlighting the vast potential of circular solutions. It is now being produced right there in Zagorje.
Another academy participant were the developers of the Kisovec Circular Business Zone, who shared with the other participants their plans to implement circular principles for all businesses setting up their headquarters in said zone. Apart from things like collective energy and resource use among all the companies in the zone, they will also make use of joint disposal waste points. Even more, the plan is to attract an enterprise whose activities are focused on using waste as a resource.
A primary objective of the transition is job creation. While initial estimates set a modest target of 100 new jobs, Šikovc and his team remain hopeful that the ripple effects of their efforts—particularly through initiatives like the Circular Economy Academy—will significantly surpass expectations.
"We’re aiming for more than just meeting numbers," Šikovs asserts. "We want to create meaningful, high-quality employment opportunities that align with the region’s long-term economic vision."
This point is notable because it often gets lost in all the talk of economic revival in European post-coal regions. After all, the issue with miners and plant workers was not just that they were/are losing their jobs, but that they are losing their well-paid livelihood. And if in the past, the resource in demand was found abundant in the earth’s nether regions, this time around it needs to be sourced from the local talents’ own abilities.
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