Abstract
As part of the European Green Deal, the EU aims to become climate-neutral and reach net-zero greenhouse gas emissions by 2050. Ιn this context, EU member states are required to develop a national strategy to achieve the required emissions reductions under the Paris Agreement and EU climate goals. Western Macedonia is a region in North-western Greece with its economy largely dominated by lignite mining, lignite-fired power plants and district heating systems. In 2019, the Greek Government set the goal of withdrawing all lignite plants by 2028, with most units being withdrawn already by 2023. This decision has had an immense socio-economic impact on the region of Western Macedonia. This research work reflects the current situation at the socio-economic and socio-political level in Western Macedonia and discusses the policies implemented in the context of the lignite phase-out process to ensure a just transition for households and businesses of the region. Although there is not a ‘one-size-fits-all’ blueprint for successful low-carbon transitions of high-carbon intensive regional economies, the main target of our paper is understanding the impacts, challenges and opportunities of decarbonizing Western Macedonia.
Highlights
The global challenge of reducing greenhouse gas (GHG) emissions, recent technological developments and cost reductions in Renewable Energy Sources (RES), the widespread diversification of gas supply sources and the demand for decentralized power generation, are leading to a complete and irreversible phase-out from solid fossil fuels, i.e., coal and lignite [1,2]
The long-term dependence of Western Macedonia on lignite has created conditions of technological and economic lock in at a regional level (Figure 3), as more than 34% of the Gross Value Added (GVA) in the region comes from lignite activities, while around 10% of people while about 2000 jobs are maintained by the satellite companies that are active in the region and cover the constant operational needs of Public Power Corporation S.A
In order to ensure that the lignite phase-out will not negatively affect the regional economy, Western Macedonia can build on its strengths and competitive advantages, including the high concentration of specialized human resources, its industrial culture, energy infrastructure, an agriculture sector with high potential, existing academic and research structures and a strategic geographic position in South-Eastern Europe [18]
Summary
The global challenge of reducing greenhouse gas (GHG) emissions, recent technological developments and cost reductions in Renewable Energy Sources (RES), the widespread diversification of gas supply sources and the demand for decentralized power generation, are leading to a complete and irreversible phase-out from solid fossil fuels, i.e., coal and lignite [1,2]. The long-term dependence of Western Macedonia on lignite has created conditions of technological and economic lock in at a regional level (Figure 3), as more than 34% of the Gross Value Added (GVA) in the region comes from lignite activities, while around 10% of people while about 2000 jobs are maintained by the satellite companies that are active in the region and cover the constant operational needs of Public Power Corporation S.A. It is clear that the region’s long-term dependence on lignite activities has created structural economic problems (Figure 5) reflected in low productivity diversification and low competitiveness [14]. Structure of empFloigyumreen5t.1bS1yt%rsueccttuorre using EIEAD data, i2on0f1We8me[1spt5le]or.ynmMenact ebdyosneicat,oSroiunrWcee: sAteurnthMorasc’ ecdaolcnuilaa,tSioonusHrcuWuems:oiarAnnkSguoAHctceEhitaaIiovllEtirhtAsiea’Dsncdadlcautala,tions
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