Energy Transition Challenges: The Region Needs Stronger Cooperation and Social Fairness

The Energy Community Secretariat has published a new assessment of the implementation of energy and climate plans in nine Southeast and Eastern European countries aspiring to EU membership. Although the framework for the energy transition is largely in place, countries must now move from planning to implementation. This process will require significant public and private investment, while the countries assessed include Serbia, Bosnia and Herzegovina, Montenegro and North Macedonia.

The report analyses the National Energy and Climate Plans (NECPs), which set out pathways for achieving energy and climate targets by 2030, as well as the first National Energy and Climate Progress Reports (NECPRs), which show the extent to which the plans have been implemented so far.

The NECPs confirm the decarbonisation of the energy sector as one of the key factors in achieving the 2030 targets. However, although the plans include measures to accelerate the energy transition, they do not fully harness the potential of regional cooperation. They also do not sufficiently apply the “Energy Efficiency First” principle, which can help reduce the costs of the transition.

Another shortcoming identified is the insufficient integration of the just transition aspect, which is important to ensure that the process is socially fair and inclusive.

At the same time, while some countries are making progress in meeting their obligations, others urgently need to begin implementing their NECPs in order to remain on track towards the 2030 targets.

Governments across the countries covered by the report estimate that implementing the plans will require around 151 billion euros, while public funding is expected to cover only 10 to 30 per cent of that amount. The Secretariat therefore highlights the need for greater mobilisation of private capital.

The report recommends that the next generation of energy and climate plans evolve from strategic policy documents into investment roadmaps, with clearly defined projects, costs and financing models.

Energy Portal