Coal is the most carbon-intensive fossil fuel, and reducing its use is necessary to reach climate goals. The European Union is moving towards climate neutrality by 2050, phasing out coal and investing in secure, low-carbon energy systems. This shift has direct effects on places where mining and coal-based power have long shaped local economies, societies and identities. In this context, a place-based approach to policy design and implementation, grounded in the engagement of local stakeholders, is important to support a fair and lasting economic transformation of coal regions.
Slovenia has committed to exiting coal by 2033, setting a clear horizon for the transition in its two coal areas: the Savinjsko-Šaleška (SAŠA) subregion and the Zasavska region. The two regions start from different positions. Zasavska completed its coal-mine and thermal power-plant closures in 2014 and has since undergone a long period of adjustment. SAŠA still hosts an active coal mine and thermal power plant which will close in the coming years. This requires planning for economic diversification while managing the social impacts linked to the forthcoming closure.
The policy framework for this transition is set by Slovenia’s Integrated National Energy and Climate Plan, the National Strategy for the Phase-out from Coal and the Territorial Just Transition Plans adopted by the European Commission in 2022. These instruments enable access to EUR 258 million from the European Union’s Just Transition Fund for investments in both regions over 2021-2027, with eligibility until 2029, as part of the wider Just Transition Mechanism.
Both regions possess assets for a forward-looking transition, including extensive green areas, industrial sites and research capacity. For instance, Zasavska is developing new business zones on rehabilitated brownfield sites. SAŠA is preparing alternatives for district heating and the future use of the TEŠ thermal power plant, alongside flagship energy-related projects. Despite this progress, the report identifies priority actions to secure a just transition and prepare for planning after 2027. In the short term, advancing the implementation of projects is essential, as administrative checks and permitting processes have contributed to delays. Strengthening capacity at the municipal and regional levels, together with more regular senior-level co-ordination, can help shorten approval timelines and clarify procedures for applicants. Within existing national selection frameworks, a more systematic approach to project preparation is also needed, so that proposals move beyond the concept stage with basic feasibility work in place. Over the longer term, diversifying funding sources and improving enabling conditions can help sustain the transition beyond the current EU support period and generate lasting local benefits.
This report sets out 7 recommendations with 27 actions across 4 thematic areas to guide an inclusive and implementation-focused transition in SAŠA and Zasavska. It draws on insights from two field missions in November 2024 and February 2025 and three stakeholder workshops in May, October and November 2025, which brought together national, regional and local government representatives, enterprises, researchers and civil society partners. This work is part of the OECD Mining Regions and Cities Initiative, which supports policies to enhance the competitiveness and well-being of mining areas within the OECD regional development agenda. The report was developed as part of the Programme of Work of the OECD’s Regional Development Policy Committee (RDPC), served by the Centre for Entrepreneurship, SMEs, Regions and Cities (CFE), and was funded by the European Union via the Technical Support Instrument. The report was submitted for comment to the OECD Regional Development Policy Committee (CFE/RDPC(2025) 40) on 24 November 2025.