The transition is a marathon and needs a clear plan

In some European countries, the energy transition is in full swing, while in others – like Bulgaria – it seems to be just beginning. What is the situation in your region?

Hungary achieved a significant result over the last decades relating to energy transition: the carbon-dioxide emission down by 43% comparing to the year of 1990 due to the conscious developments and the decline of polluting heavy industry after the change of regime in 1989. Gas consumption fell by 20% over the last years: both households and businesses tried to save as much as possible due to high energy prices. Emissions from the transport sector also fell by more than 7%. Hungary also has invested a lot in solar power: 7 gigawatts of capacity available in the country now, which can supply 18-19% of total consumption. The energy storage is also crucial from the aspect of energy transition: therefore, Hungary is going to build 400 megawatts of battery storage capacity by 2026.

Nevertheless, if we focus on the just transition, we can say that we are at the beginning of implementation. In Hungary there are three regions, which are eligible to mobilise resources from the Just Transition Mechanism: Baranya is eligible due to the presence of cement industry, while Borsod-Abaúj-Zemplén and Heves Counties (these form the Northern Hungarian Coal Region) host two open-pit lignite mines and the Mátra Power Plant. The Power Plant is a significant economic actor of the county: it provides the 4 % of the economic performance of the county and 25 % of the Gyöngyös district. With its 2 000 employees, MVM Mátra Energia Zrt. is one of the largest employers of the region: together with its subsidiaries and partners of its industrial park, it supports the livelihood of about 3 000 families. The objective of the owner is to transform the now out-of-date and inefficiently operating power-generating facility into a modern, carbon-saving system. The coal-fired power plant is responsible for less, than 8 % of the total domestic carbon-dioxide emission, it is important to develop its technology to support achieving Hungary’s carbon-neutral goals of 2050 in line with the National Energy and Climate Plan. 

The Territorial Just Transition Plans (TJTP) of the counties were accepted in the December of 2022 by the European Commission. The TJTPs involve the needs of the region and the interventions which can address these. The Managing Authority plans to launch the first calls this year under Just Transition Fund focusing on the support of the SMEs in economic diversification and the improvement of their energy efficiency. The next calls will focus on the support of households who are using lignite for home-heating and affected by energy poverty.

The differences in the speed of transition are partly related to the different perceptions of those affected by it. In your opinion, is the transition a problem or a solution for regions dependant on fossil fuels?

In my opinion the transition is always a challenge for the stakeholders: in our case there is a 60-year-old economic entity in the region, which will be changed. People like the usual things, the changes could lead to uncertainty. This is the reason why the planning has an outstanding role in this process: a clear and transparent plan and communication could decrease the uncertainty and increase the trust. Clear communication is crucial. I personally consider the just transition as an opportunity for the regions, it could be the guarantee that the transition will be fair, and it will not leave anyone behind.

What would you say to those affected by the transformation to convince them in a few words that the transition is a good thing?

It is a very complex question. I have been dealing with the involvement of stakeholders in the transition for 4 years. According to my experience it is crucial to know the different stakeholder groups, be aware of their fears, dreams and interests. If you aware of their motivation, you can find the way how to communicate the story. It is crucial to mention that the transition will happen anyway: everyone can make their own decision that participate actively in the planning and the implementation or not. Therefore, I always encourage the stakeholders to participate in the Coal Commission meetings, share their concerns and ideas, raise their voices if it is necessary.

After the collapse of the Soviet Union, we experienced a transition in the Northern Hungarian Coal Region which was unplanned: the socio-economic consequences are still here with us. And this is the main difference: the Just Transition Mechanism is available, regions are not alone to manage these challenges, this is an outstanding opportunity for the regions.

During our work we put a special emphasis on the awareness raising activities as well: the children aged between 7 and 14 yrs are our primary target group, we believe that we need to change the mindset of the people, therefore we have developed awareness raising program for the children, because they are very adaptive and they can take the messages home to their parents what can change their mindset as well. In the program we put a special emphasis on the demonstration of climate goals and to the improvement of the children’s sustainability competencies. 

What does the speed and success of this transition depend on?

The transition demands a wide range of knowledge and competencies, and there are a lot of players: decision-makers, energy companies, relevant authorities, municipalities, trade unions, etc. In my opinion the most important success factor is the level of cooperation. If there is a real cooperation between the decision-makers, the local stakeholders, and the other key actors it can speed the transition. From the aspect of stakeholder engagement, it is crucial to have clear decision-making mechanisms, clear determination of responsibilities, these all can contribute to increase the trust, the cooperativity of different actors. These are all essential to keep the stakeholders on the board. It is important to make the stakeholders aware of the nature of the transition: this is not a sprint; it is a marathon.

In your opinion, what does a "just" transition mean, and do you support the statement that "if even one person is left without a job, the transition is already unjust"?

The just transition is an opportunity: opportunity for people for professional development, for widening their horizons, and an opportunity for the economic actors to find their place after the fossil era and diversify their activities. It is also a challenge, because it is a new thing, but no one region is alone with this: regions should unite their forces to combat the challenges.

What makes the transition just? According to my understanding: it is based on consensus, it considers the different needs of the stakeholders, particularly the local needs, respects their opinion. It is implemented with the inclusive involvement of stakeholders, which can result that the people will not feel like that the decisions were made over their heads. Clear communication can contribute to the achieve the just transition.

The just transition is a supporting activity, what can provide opportunity for all stakeholders, but we cannot oblige everyone to participate. Therefore, we cannot avoid that there will be some people who will lose their job, because they do not take the opportunity.

What is your vision for energy without fossil fuels?

In my opinion ‘energy without fossil fuels’ is challenging for all regions. The different countries have different opportunities due to the different geographical locations: e.g. the Southern European countries are very rich in solar energy, but they must handle the question of energy storage. My vision is based on the recognition of the importance of cooperation: regions have to find the cooperation to cover their energy demands. 

On September 25th, the event "Just Transition Opportunities Across Borders" will take place in Sofia, where you will be a speaker; what can attendees expect?

From my side I can present the process of the just transition of the Northern Hungarian Coal Region from the local perspective. I can also share my experience in stakeholder engagement, since our Secretariat is responsible for involving the stakeholders, we have been implementing the stakeholder engagement strategy for 4 years.

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.