Bulgaria's Coal Regions Secure Additional €808 Million from EU Just Transition Fund for Green Transition

Significant EU Funding Boosts Bulgaria's Green Transition

Bulgaria's coal-dependent regions are poised for a substantial economic transformation with the allocation of an additional 808 million euros from the European Union's Just Transition Fund (JTF). This funding, announced on October 29, 2025, is designated for projects focused on energy efficiency, renewable energy, and green hydrogen, aiming to facilitate a fair transition away from coal. The new allocation contributes to the broader €1.2 billion Bulgaria is set to receive from the JTF, following the European Commission's approval of its Territorial Just Transition Plans (TJTPs) in December 2023.

Targeted Regions and Objectives

The primary beneficiaries of these funds are Bulgaria's key coal regions: Stara Zagora, Kyustendil, and Pernik. The support also extends to several municipalities, including Nova Zagora, Yambol, Simeonovgrad, Harmanli, Topolovgrad, Dimitrovgrad, Haskovo, Elhovo, Sliven, and Tundzha. The overarching goal of the JTF is to mitigate the socio-economic impact of phasing out coal by creating new job opportunities and diversifying local economies. The funds are intended to:

• Support the shutdown of mines and coal-fired power plants.
• Rehabilitate approximately 2,190 hectares of land for industrial areas and renewable energy facilities.
• Facilitate the transition to a circular and climate-neutral economy.
• Address energy poverty in households.

The transition is expected to support the reskilling and upskilling of over 15,000 workers in these regions.

Key Investment Areas and Allocations

The 808 million euros will be channeled into specific initiatives designed to accelerate the green transition. Key investment areas include:

• Energy Efficiency: Approximately 153.4 million euros will be dedicated to energy communities and enhancing energy efficiency in public buildings. Measures in residential buildings will also target energy-poor households.
• Renewable Energy: Around 72.6 million euros will assist small and medium-sized enterprises (SMEs) in installing solar panels and energy storage systems for both self-consumption and commercial use. Further programs for photovoltaic parks and other renewable sources are anticipated.
• Green Hydrogen: A substantial 134.5 million euros is allocated for the development of green hydrogen production and transportation infrastructure, particularly in Stara Zagora. This includes the construction of a green hydrogen production complex, charging stations, and the procurement of hydrogen vehicles.
• Socio-Economic Transformation: Approximately 242.9 million euros will support the conversion of former mining areas into business and industrial zones, fostering economic diversification.

Implementation and Future Outlook

The Bulgarian Ministry of Regional Development and Public Works is expected to launch new procedures for grant allocation by the end of 2025. These calls will operationalize the investments, with several programs already outlined for 2025, including those for industrial and logistics parks, research and development, and clean energy solutions for SMEs. The JTF represents a critical component of Bulgaria's commitment to the EU's 2030 climate and energy targets and the long-term goal of a climate-neutral economy by 2050.