BELGRADE – The Government of Serbia has formally adopted its Just Energy Transition Plan until 2030, following the conclusion of a public consultation process last month. This strategic document, which builds upon the Integrated National Energy and Climate Plan (INECP), outlines a comprehensive set of sustainable energy policy measures designed to reduce the nation's reliance on fossil fuels, enhance electricity supply security and efficiency through renewable energy integration, and boost overall energy efficiency.

The plan underscores that a just transition aims to foster environmentally sustainable economies in a manner that is equitable and inclusive for all stakeholders, including workers, businesses, and communities. It emphasizes the creation of opportunities for decent work and ensuring no segment of the population is left behind. This dynamic process prioritizes dialogue to address the specific concerns and needs of local populations and affected parties, implying substantial investments in retraining and reskilling initiatives to facilitate workforce adaptation to emerging industries.

Historically, Serbia's electricity production has largely met domestic demand, though its power system has long strained to secure sufficient coal for its thermal power plants. The document notes that existing generation plants are predominantly old and fail to comply with contemporary environmental standards. For instance, the Kolubara A coal plant, with a capacity of 239 MW, dates back to 1956, while the newest unit, Kostolac B3 (350 MW), only came online last year. This aging infrastructure necessitates a radical shift in the structure and methods of electricity production.

The plan proposes diverse repurposing options for decommissioned coal plants and mine lands, including the development of green power plants, industrial production facilities, logistical and commercial hubs, as well as sites for sports, culture, education, agriculture, tourism, and waste management. In 2023, the coal sector employed 25,288 individuals across thermal power plants (22.2%) and coal mines (77.8%), highlighting the critical need for robust social dialogue mechanisms involving trade unions, local self-governments, and civil society organizations to address employment concerns.

Financially, the plan envisages expenditures totaling EUR 75.4 million. This includes EUR 12 million allocated for entrepreneurship and self-employment incentives, and EUR 60 million for enhancing business structures within existing industrial parks. A significant section of the plan addresses the impending rollout of charges under the European Union's Carbon Border Adjustment Mechanism (CBAM), which will impact imports of certain raw materials and electricity. Serbia acknowledges that introducing a domestic carbon pricing mechanism, potentially through a phased approach, will render its coal-fired power plants increasingly uncompetitive, particularly in regional electricity markets.

While the government's plan outlines a pathway for transition, non-governmental organizations have criticized its draft for primarily detailing preparatory activities and lacking a definitive timeline for ending coal use in electricity production. They argue that a truly just energy transition requires explicit deadlines and dedicated funding to prevent abrupt market shifts that could jeopardize energy security and employment, effects already observed in parts of Southeastern Europe, notably Bosnia and Herzegovina, Bulgaria, and Slovenia.