This chapter analyses the policy framework for coal transition in the SAŠA and Zasavska regions, outlining areas for improvement in the planning process and proposing priorities to strengthen long-term development conditions in the regions.
Mining Regions and Cities in SAŠA and Zasavska, Slovenia
3. A policy framework for a just transition in Slovenia
Copy link to 3. A policy framework for a just transition in SloveniaAbstract
Key findings and recommendations
Copy link to Key findings and recommendationsThe existing strategic and planning framework for the just transition of Slovenia’s coal regions was established through the 2020 Comprehensive National Energy and Climate Plan, and its National Strategy for Phasing Out Coal and Restructuring of Coal Regions. Subsequent to this, Territorial Just Transition Plans (TJTPs) for SAŠA and Zasavska were adopted by the European Commission in December 2022, as part of Slovenia’s European Union (EU) Cohesion Policy Programme 2021-2027, making available a total of EUR 258 million (euros) in support from the Just Transition Fund (JTF) for investments for both regions. Furthermore, specific development objectives related to the just transition were included in the broader Regional Development Programmes (RDPs), developed as part of the planning process for 2021-2027. The RDPs are thus broader strategies that outline the region’s development priorities, with a selection of projects targeting the JTF and other funding sources.
Collectively, these strategies and plans provide a comprehensive short- to medium-term framework aimed at enabling SAŠA and Zasavska to undergo a gradual and fair process towards long-term energy, environmental and socio-economic restructuring, following the just-transition approach of focusing on people, places and businesses affected by the coal phase-out. Furthermore, this just-transition planning process established relevant institutional foundations for both regions, such as dedicated Just Transition Centres (JTCs) funded by the JTF. These centres are located within the Development Agency of SAŠA (DA SAŠA) and the Regional Development Agency of Zasavska (RDA Zasavje), ensuring just transition-related activities are based on consultation with local stakeholders and connected to European Union (EU) support programmes and funds.
Moreover, the identified transition projects are coherent with short- to medium-term challenges and diversification opportunities in each region. In Zasavska, projects to develop new business zones and support infrastructure on rehabilitated brownfield areas align with the pressing need to address degraded sites and the shortage of suitable industrial land. SAŠA has rightly prioritised securing an alternative energy source for its district heating system and expanding local renewable-energy capacity, while also working to repurpose the TEŠ thermal power plant to position the region as a potential hub in Slovenia’s future low-carbon energy and industrial strategy. Both regions rightfully identified flagship projects to advance research and innovation on energy-related technologies, with initiatives that have the potential to boost the entire innovation ecosystem, such as Zasavska‘s Strategic Research and Innovation Partnership MATerials as end PROducts (SRIP MATPRO). The main focus now with these priorities should be to speed up their implementation (Chapter 4).
For the post-2027 period, some areas could help strengthen the broader vision and strategic planning for the transition:
The current strategic and planning framework for the just transition in RDPs in SAŠA region is mostly oriented towards preparing for the end of coal mining and coal-based power-generation activities. In the case of Zasavska, towards addressing the legacy of degraded areas from previous mining activities, while stimulating a more innovative and sustainable economy. Looking beyond the current programming period (2021‑2027) – and noting that the JTF eligibility period for the funding runs up to the end of 2029 – there will be a need to define a renewed long-term vision for the just transition of each region that further complements the focus on the coal phase-out and its actual legacy with a comprehensive regional approach that articulates future development pathways beyond coal.
There exist opportunities to improve the processes for defining priority measures or projects to deliver on the long-term vision for the development of each region. While the use of project ideas submitted by local stakeholders has been effective in collecting projects, a more strategic approach to project selection would be beneficial. For example, in the current selection process, there was an over‑representation of concept‐level proposals, where more than 70 % of proposed operations were initial ideas or aspirations lacking a technical feasibility study, financial plan or land/site assessment (Ministrstvo za kohezijo in regionalni razvoj, 2025[1]). Therefore, a clearer project prioritisation framework, reflecting the level of preparedness and feasibility, as well as the project’s impact, would be more efficient to attain transition goals.
In addition to the immediate benefits from investments in flagship innovation and productive projects led by national organisations (e.g. the National Institute of Chemistry) or large private companies, the contribution of such investments to regional economic development could be reinforced by establishing clear strategies and opportunities to link them with bottom-up innovative ideas, local business and entrepreneurial ecosystems. This would enable positive spillover effects, particularly in relation to innovation activities.
The sectoral approach of just-transition measures has rightly focused on manufacturing, energy and information technology as the anchor sectors with the highest growth potential for the transition in both regions. Looking forward – and with the availability of suitable funding – this sectoral coverage could be complemented through additional emphasis on local research and innovation activities, tourism and social economy models, to capitalise on these regions’ unique natural and cultural assets.
Moving beyond sector-specific project approaches, a renewed policy framework for the transition would benefit from strengthening the structural enabling conditions to ensure that transition projects are rooted in competitive business environments, while delivering long-term local development impacts. Such enabling conditions include reinforcing the regional innovation ecosystem, improving the local labour market, enhancing the energy and transport infrastructure, and streamlining land remediation for industrial and residential use.
Key recommendations
1. Update just-transition strategies and plans to reflect new priorities for economic competitiveness and further include social and cultural aspects, by:
Assessing changes in local, national and EU policy priorities to identify how they may shape potential opportunities and challenges for transition processes in Slovenia’s two coal regions.
Supporting regional institutions – namely, the RDAs and the Just Transition Centres (JTCs) – to update and revise regional transition strategies and plans, focusing on the strategic vision and long-term narrative to implement plans and local development priorities. This can be translated into amendments to the TJTPs, taking advantage of their nature as living documents.
Strengthening formal co-ordination between national and regional levels (including with RDAs and JTCs) to align policy assessments with regional planning milestones. Co-ordination with other Slovenian regions and EU coal regions could be also improved with further exchange of experiences and international partnerships.
2. Strengthen project preparation and prioritisation to advance transition strategies, by:
Strengthening selection criteria that reflect the level of preparedness, feasibility and deliverability of projects, as well as their impact on employment, contribution to climate objectives or consistency with the regional vision. This can be done by enhancing the criteria for the calls published at the national level, with a clear filter that scores each project proposal on its alignment with EU, national and regional priorities and impact (e.g. employment, climate, regional vision, economic diversification). At the same time, applying a co-ordinated one stop-shop in the RDAs (e.g. by the JTC) can help improve technical and administrative (e.g. permitting) conditions to enhance the projects’ feasibility.
3. Strengthen the key enablers of development to improve conditions for new businesses and workers, by:
Improving the regional innovation ecosystems:
Better linking national-led innovation projects, such as those conducted by the National Institute of Chemistry, with local business and entrepreneurs. This can include closer collaboration between the Chamber of Commerce and the RDA in each region to improve alignment between large innovation projects and local development strategies, as well as to promote innovation competitions or challenge approaches for local entrepreneurs to solve identified needs in public or private flagship innovation projects. In the case of Zasavska, the region can leverage the Strategic Research and Innovation Partnership MATerials as end PROducts (SRIP MATPRO) to further link local entrepreneurs and small and medium-sized enterprises (SMEs) to innovation value chains.
Boosting entrepreneurship through greater financial access and incentives, tailored entrepreneurial education and mentoring in schools and technical institutions, and improved communication to promote the available support and valorise entrepreneurship.
Further easing administrative processes for business growth and entrepreneurship by enhancing mentorship for SMEs and entrepreneurs to access funding and support programmes, and tailoring national innovation-related programmes based on project ideas from local actors, adapting application processes to local conditions and capacities. Entrepreneurial training projects like the Podjetno nad izzive entrepreneurship training programme (PONI) in Zasavska and SAŠA can be further complemented with mid-term support after the businesses are launched.
Particularly for SAŠA, promoting stronger partnerships between innovation projects with education institutions and incubators to build local innovation capacity. The Chamber of Commerce could spearhead initiatives such as firm-to-firm mentoring and innovation challenges for SMEs and entrepreneurs to address industrial problems. Collaboration should also be facilitated among the Faculty of Energy (which is expected to be relocated to the former power plant site), the Laboratory for Biomass Biorefinery Research, the business incubator, Technology Park Velenje, TecHub and major manufacturers, aligning their efforts around shared innovation goals and activities.
Particularly for Zasavska, improve human resource capacity in the Chamber of Crafts to enhance the design and implementation of innovation and SME programmes. Invest in building staff and technical capacity to identify the characteristics and needs of local businesses, as well as gather innovation ideas.
Improving the local labour market, by:
Enhancing workforce data and forecast capacity by further tailoring pre-employment screening systems to the local workforce and needs of the transition project. Regions can leverage the skill-related information developed by the National Platform for Competencies and their regional initiatives, namely, Zasavska’s Platform for Skills Forecasting and SAŠA’s Career Opportunities Fair, to better identify and share information about skill supply and demand for the transition projects. JTCs could be a vehicle for managing that regional information.
Tailoring skill programmes through greater stakeholder involvement and partnerships, for example involving trade union members and other worker representatives in policies and programmes for upskilling and reskilling (e.g. voucher system).
Adapting education and training programmes to industry needs, in partnership with national and regional education institutions. Vocational education and training institutions can further promote apprenticeships, school-to-work transitions and tertiary education in Zasavska.
Improving regional-national co-ordination to deliver skill programmes.
Enhancing green energy and transport infrastructure for families and business,, by:
Securing a more affordable and sustainable energy infrastructure by promoting local energy self-sufficiency, including by developing renewable-energy communities, addressing energy-poverty concerns and accelerating the implementation of renewable-energy sources (RES). This involves accelerating the integration of renewables, with clear milestones for renewable shares in the district heating supply, clear financial planning for completion (which might require different funding options beyond the JTF) and co-ordinated operation among several actors (e.g. state, municipality, heat distributor).
Improving transport infrastructure and mobility solutions,, by:
In SAŠA and Zasavska, expanding integrated mobility with reliable bus service frequency to connect urban centres with suburban and rural communities. This includes establishing frequent and reliable bus service hours to accommodate shift work and suburban travel, as well as integrated cycling infrastructure and shared bike systems.
In Zasavska, prioritising the G2108 reconstruction project and also the Trbovlje-Prebold tunnel, which might need to be developed based on diverse funding options.
Enhancing access to land for industrial and housing purposes, by:
Further streamlining procedures and ensuring transparency in land-acquisition processes to promote confidence among potential investors. To this end, special attention should be paid to simplifying brownfield remediation procedures.
Prioritising when possible the use of brownfield for new industrial, community or recreational developments over greenfield sites. This includes analysing the possibility of providing incentives for contamination cleanup (e.g. tax credits).
In SAŠA and Zasavska, integrating municipal housing plans with repurposing plans to maintain local housing affordability, particularly in Velenje and nearby villages.
In Zasavska, accelerating the remediation of documented brownfields, unlocking more land for business and housing.
Introduction
Copy link to IntroductionThe transition out of coal relies on sound and well-advanced planning to help communities, businesses and places manage the impacts of leaving an industry that has long shaped local economies, societies and cultures. Anticipated planning can mitigate the severe impacts on coal communities, while also providing hope and aligning efforts to identify opportunities for new economic activities. The different transition stages of Slovenia’s two mining regions, SAŠA and Zasavska, provide valuable lessons for strengthening policy frameworks for the transition. While Zasavska has made efforts to address the immediate impacts of the coal mine and power plant closures since 1994, shortcomings in designing and implementing a broader development and diversification strategy contributed to years of economic stagnation (Chapter 2). By contrast, SAŠA benefits from a limited but critical window to plan for a just transition, supported by a relatively more diversified economy and the scheduled mine closure in 2033.
With the reinforced European focus on supporting coal regions in transition and the introduction of the Just Transition Mechanism in 2021, SAŠA and Zasavska, together with the national government, developed comprehensive Territorial Just Transition Plans for the 2021-2027 programming period, which were adopted by the European Commission. These new plans corrected earlier transition efforts which had focused mainly on land rehabilitation and site repurposing. They aim to ensure that municipalities, people and businesses benefit from new economic opportunities, with projects spanning multiple areas of development, from renewable energy to manufacturing.
Currently, both regions must prioritise focusing on accelerating the implementation of selected projects and preparing for the post-2027 period, looking at diverse sources of funding with a stronger policy framework that builds on recent progress and maximises long-term outcomes. To support this effort, this chapter outlines lessons learned from the previous planning process and identifies priorities to strengthen long-term development conditions in the regions. It first describes the policy framework for phasing out coal in each region, highlighting lessons learned and key areas requiring attention. It then examines how future strategies can move beyond a project-based approach to focus on enabling regional conditions that ensure projects not only advance, but also deliver lasting local development outcomes. The next chapter of this study will instead focus on actions to strengthen the implementation of transition plans.
Slovenia’s approach to the just transition in SAŠA and Zasavska coal regions
Copy link to Slovenia’s approach to the just transition in SAŠA and Zasavska coal regionsThe concept of a “just transition” gained momentum in EU policy following its inclusion in the 2015 Paris Agreement and the 2018 Silesia Declaration as an approach to ensuring ensure that the transition towards a climate-neutral economy is fair, inclusive and sustainable (Council of the European Union, 2018[2]). The European Union has increasingly acknowledged the territorial dimension of decarbonisation, setting support mechanisms for the just transition to address the social and economic effects of the transition, focusing on the most affected regions, industries and workers.
This approach is highlighted in the European Green Deal and operationalised through the Just Transition Mechanism, launched in 2021 (European Commission, n.d[3]), which aims to mobilise EU 55 billion between 2021 and 2027 to support the people, businesses and regions most affected through three financial pillars: the Just Transition Fund (JTF), InvestEU for private investments and the Public Sector Loan Facility (Box 3.1Box 3.1Box 3.1).
Box 3.1. EU Just Transition Mechanism
Copy link to Box 3.1. EU Just Transition MechanismThe European Commission introduced the Just Transition Mechanism (JTM) in 2021 to support its just-transition agenda focused on supporting regions, people and business. This mechanism has the ambition to mobilise around EUR 55 billion over 2021-2027.
The JTM contains three pillars: the JTF; the InvestEU "Just Transition" scheme, targeting private investment; and the Public Sector Loan Facility, targeting public investment.
Just Transition Fund (JTF) – Pillar 1
The JTF, a fund within the umbrella of European Cohesion Policy, has been the most prominent element of the JTM, with an EU budget contribution of EUR 19.7 billion. The JTF is intended to enable regions and people to address the social, employment, economic and environmental impacts of the transition towards the European Union’s 2030 targets for energy and climate, and a climate-neutral economy of the European Union by 2050.
InvestEU "Just Transition" scheme – Pillar 2
Provide a budgetary guarantee under the InvestEU programme across the four policy windows and an InvestEU Advisory Hub that will act as a central entry point for advisory support requests. It is expected to mobilise EUR 10-15 billion in mostly private-sector investments.
Public Sector Loan Facility – Pillar 3
Combine EUR 1.3 billion in grants financed from the EU budget with EUR 6-8 billion in loans from the European Investment Bank to mobilise EUR 13.3-15.3 billion in public investment.
Source: (European Commission, n.d[3]).
The JTF, the most prominent fund, allocated EUR 258.7 million to Slovenia during 2021-2027, with an additional EUR 45.6 million in national co-funding. The JTF supports the coal phase-out with a range of actions, including economic diversification, clean-energy deployment, investments in SMEs, environmental rehabilitation and worker reskilling. The JTF offers critical funding for the coal-dependent SAŠA and Zasvaska regions, but might be insufficient on its own to effect long-term structural change. Effective transition requires combining JTF resources with other EU instruments – such as the European Regional Development Fund (ERDF), the European Social Fund Plus (ESF+), the Cohesion Fund and other funds (such as the Recovery and Resilience Fund, and the Innovation Fund) – and integrating them into longer-term regional strategies (see Chapter 4).
To access this fund, Slovenia had to prepare a TJTP for each of the two coal regions. These were elaborated according to the partnership principle and agreed with the European Commission. Access to the JTM was secured through the European Commission’s approval of the TJTPs for the Savinja-Šaleška (SAŠA) Region and the Zasvaska Region in December 2022, as part of the European Commission Implementing Decision approving Slovenia's European Cohesion Policy programme 2021-2027.
The launch of the JTM, together with the requirements to develop TJTPs to access the funds available under the JTM, have helped structure the transition planning process at both the national and regional levels. Following the partnership principle, the TJTPs were prepared in dialogue with relevant partners at national and regional levels (including civil society and local community representatives) and approved by the European Commission, ensuring they are consistent with the Smart Specialisation Strategy, the National Energy and Climate Plan, and other relevant national, regional or territorial strategies and plans.
As the following sections will illustrate, the governance of TJTP formulation and subsequent implementation has been reinforced through the creation of new programmes, notably the JTCs in both coal regions, which have provided additional support for raising awareness, engaging stakeholders, and co-ordinating the just transition and related development plans in the regions.
The policy framework for a just transition in Slovenia’s coal regions
Slovenia has two main policy documents that guide the just transition in Slovenia’s coal regions (Table 3.1). The Comprehensive National Energy and Climate Plan (NECP) is the main strategic framework, outlining national objectives, policies and measures to reduce greenhouse gas emissions by 2030 across five dimensions: decarbonisation, energy efficiency, energy security, internal energy market, and research and innovation. This plan was created in 2020, with an updated version in 2024 (Ministry of the Environment, Climate and Energy of the Republic of Slovenia, 2024[4]). It provides a broader policy context which complements the coal-exit strategy and TJTPs.
Anchored in this plan, the National Strategy for Phasing Out Coal and Restructuring Coal Regions, adopted by the Government of Slovenia in January 2022, targets two focal regions, SAŠA and Zasavska. It outlines priorities and action plans for each region with regard to job protection, social welfare, environmental safeguards and regional diversification, in accordance with the principles of a just transition. This strategy sets out key medium-term decisions to enable the affected regions to undergo a gradual and fair process of long-term energy, environmental, economic and social restructuring in the wake of the coal phase-out.
Table 3.1. Slovenia’s national guiding policy documents for the just transition
Copy link to Table 3.1. Slovenia’s national guiding policy documents for the just transition|
Strategy |
Description |
Goal |
|---|---|---|
|
Comprehensive National Energy and Climate Plan (2020), updated in 2024 |
Strategic framework outlining national objectives, policies and measures across five dimensions: decarbonisation, energy efficiency, energy security, internal energy market, and research and innovation up to 2030, with projections towards 2040. |
-Reduce greenhouse gas emissions by at least 55% by 2033 (vs. 2005 levels). -Achieve at least 33% RES in final energy consumption by 2030. -Limit final energy consumption and reduce buildings’ energy use. -Recognise the need to prepare a strategy to exit coal in the country through the development of a National Strategy for the Exit from Coal and the Restructuring of Coal Regions in Accordance with the Principles of a Just Transition. |
|
National Strategy for the Exit from Coal and the Restructuring of Coal Regions in Accordance with the Principles of a Just Transition (2022) |
Lays the groundwork for a just and co-ordinated transition in Slovenia’s coal-dependent regions. The strategy provides a roadmap for SAŠA and Zasavska to leverage EU funding, manage phase-out processes, engage communities, diversify local economies, and build infrastructure and governance capacity for long-term prosperity. |
-Set a coal phase-out deadline by 2033 in the Velenje coal mine and the closure of the Šoštanj thermal power plant (TEŠ). - Assess key impacts of mine closures on employees, communities and the environment. -Identify appropriate resources at national and EU levels, and how to manage them (e.g. EU JTF funding). -Stipulate the creation of TJTPs, aligned with national and EU frameworks. -Design governance structures to steer implementation at national, regional and local levels, with stakeholder participation. |
The National Strategy for Phasing Out Coal recognises that past mine closures, particularly in Zasavska, lacked a holistic approach to the transition. Efforts focused mainly on spatial and environmental rehabilitation of degraded land, rather than on a comprehensive socio-economic restructuring (Ministrstvo za infrastrukturo Republike Slovenije, 2022[5]). Nevertheless, even the rehabilitation efforts remained incomplete for years after mine closures. Leveraging Zasavska’s cautionary past as an example, the strategy introduces new measures and governance structures to support a structured long-term transition in SAŠA and correct the path in Zasavska. It underscores the need for a comprehensive, inclusive transition plans that integrate social, economic and environmental dimensions to ensure a sustainable regional development.
To guide a gradual and fair socio-economic restructuring in the wake of the coal phase-out, the strategy identifies five key strategic goals (SGs) for each region (Table 3.2), along with multiple operational objectives under each goal. Based on the national strategy, action plans were prepared for each coal region. These included some selected projects which could serve as examples of well-designed conceptual solutions that are consistent with the concept of a just transition (European Commission, 2021[7]).
Table 3.2. Strategic goals identified in the National Strategy for the Exit from Coal
Copy link to Table 3.2. Strategic goals identified in the National Strategy for the Exit from Coal|
SAŠA (Savinjsko-Šaleško) |
Zasavska |
|---|---|
|
SG 1: A fair energy transition for both Slovenia and SAŠA region |
SG 1: High-quality living and natural environment |
|
SG 2: Gradual rehabilitation and revitalisation of spatially and environmentally degraded areas |
SG 2: Highly motivated and skilled residents |
|
SG 3: Additional regional connectivity and sustainable mobility |
SG 3: Diverse and resilient local economy |
|
SG 4: Sustainable, resilient and diversified economic development |
SG 4: Exploiting the potential of RES in the region |
|
SG 5: Jobs and skills for all |
SG 5: Improved connectivity of the region |
Drawing on the previous SG 2, the then-Slovenian Government Office for Development and European Cohesion Policy developed the TJTPs in collaboration with the Regional Development Agency Savinjska (RDA Savinjska) and the Development Agency SAŠA (DA SAŠA) for the Savinjsko-Šaleška region, and the Regional Development Agency Zasavje (RDA Zasavje) for the Zasavska region, both including collaboration from various local partners.1 The approval of the TJTPs by the European Commission was a condition for the two coal regions to access resources available through the EU JTM.
Specifically, the adopted TJTPs allowed these two regions to access more than EUR 258 million allocated to Slovenia under the JTF 2021-2027, of which around 70% were earmarked for the Savinjsko-Šaleška region and 30% for the Zasavska region. The TJTPs are annexed to Slovenia's Cohesion Policy programme 2021-2027.
These plans outlined the transition process in the most negatively affected regions of the country. They included an assessment of transition challenges for each region; the needs and objectives by 2030 with the goal of reaching a climate-neutral economy of the European Union by 2050; their consistency with other relevant national, regional or territorial strategies; the governance mechanisms envisaged; and the main types of operations foreseen in each coal region to receive support under the JTM. These plans describe the types of operations to be funded by the JTF (Pillar 1 of the JTM), and outline the intended use of Pillar 2 (InvestEU “Just Transition” scheme) and Pillar 3 (Public Sector Loan Facility) of the Just Transition Mechanism.2 Slovenia’s TJTPs, like those of many other countries, are relatively concise and operationally focused programming documents.
The purpose of the TJTPs is not to provide an overarching regional development framework but rather to depict the social, economic and environmental challenges stemming from the phasing out of fossil fuel. The general strategic objectives of the TJTPs are aligned among the two regions: they focus on economic development, energy transition and decarbonisation, jobs and skills, and environmental rehabilitation (Table 3.3). Overall, the TJTPs represent just one instrument to support the just transition and should be complemented by more comprehensive, long-term planning beyond the 2021-2027 period to ensure real structural transformation and sustainable regional development.
An outstanding characteristic of the TJTP implementation is the creation of JTCs to support the planning process and gather projects from different stakeholders in the region. In Slovenia’s TJTP implementation, regional JTCs have been playing a key role in engaging local actors (e.g. municipalities, SMEs, non-governmental organisations [NGOs]) in transition planning and implementation. The SAŠA JTC (created in 2022) has offered outreach, training, data analysis and project guidance, while the Zasavska JTC (created in 2023) has provided partnership building, application support and brownfield mapping (Interreg, 2025[8]). This has strengthened the participatory, bottom-up dimension of the process, even though the stakeholders interviewed for this report consider that the subsequent prioritisation and ministerial funding alignment has faced bottlenecks (Chapter 4).
Table 3.3. Territorial Just Transition Plans for SAŠA and Zasavska
Copy link to Table 3.3. Territorial Just Transition Plans for SAŠA and Zasavska|
Strategic objective |
Specific actions |
|
|---|---|---|
|
SAŠA (Savinjsko-Šaleška) |
Zasavska |
|
|
Energy transition |
- Redesign district heating system. Flagship project: Transformation of the district heating system from reliance on a coal plant towards renewable energy. - Promote RES and energy communities. - Improve energy efficiency in economic activities, creating jobs. Flagship project: Hydrogen technologies in zero-emission transport and energy decarbonisation. |
- Promote RES technologies and local R&D (e.g. green energy for glass production, including green hydrogen). - Improve energy efficiency of economic activities, targeting renewable-energy communities and citizen-energy communities, in combination with activities for decarbonisation, material efficiency and job creation. |
|
- Improve energy efficiency of economic activities, with material efficiency and job creation. |
||
|
Rehabilitation and revitalisation |
- Decommission and repurpose coal-related facilities into RES, business zones, community housing and technology park. |
- Revitalisation and fitting-out of areas dedicated to economic business infrastructure. - Transform industrial zones into modern business parks (e.g. OC Rudnik, OIC Kisovec, OIC Lakonca) to stimulate green industry jobs and local investment |
|
Economic development |
- Labs for innovation aligned with Smart Specialisation Strategy. |
- Investment in R&D, digitalisation and SME production (e.g. energy/material efficiency, circular-economy solutions). -Production of electrical components for smart buildings and battery storage systems. |
|
Investments in SMEs to enhance production, services and/or research and development activities in sectors to facilitate the twin transition. |
Investments in enterprises: support SMEs with commercialisation of developed materials, products, technological solutions, services and business models that enhance manufacturing, service and/or R&D activities |
|
|
Upgrade the start-up ecosystem, notably through rehabilitated sites. |
- Develop start-up ecosystem on rehabilitated areas to promote business zones and incubators |
|
|
Flagship projects: -Laboratory for Bio-Refining Research (Chemical Institute). - Repurposing legacy industrial sites for economic business infrastructure (in municipalities of Velenje, Šoštanj and Šmartno ob Paki). |
Flagship projects: -Carbon-free technology demonstration and training centre (Chemical Institute – Centre for Development, Demonstration and Training for Carbon-Free Technologies [DUBT Centre]) - Repurposing legacy industrial sites for economic business infrastructure. |
|
|
Jobs and skills |
Enrich the implementation of quality and accessible learning. Lifelong career guidance and training of unemployed and jobseekers. Introduce circular content into the education system. |
Enrich the implementation of quality and accessible learning. Provide lifelong career guidance and training for the unemployed and job seekers. Introduce circular content in educational institutions. |
|
Productive investments in large enterprises (indicative list of operations) |
Indicative list of projects (projects will be selected within the framework of the public call). Examples include: -Development of new generations of household appliances by Gorenje Household Appliances Company, including more energy-efficient or smart appliances. -Circular economy: plastic recovery and processing, and production of alternative fuels by Premogovnik Velenje, d.o.o Company. |
Indicative list of projects (projects will be selected within the framework of the public call). Examples include: -Establish a new production facility from Herz Metal Processing Company in Trbovlje focused on metal processing, producing components to feed other industrial sectors. |
Source: (Government of Slovenia, 2021[9]).
These plans also reflect some differential strategic focus across regions, shaped by their status of the transition. For SAŠA, a main action is to develop RES and find alternatives for heating homes and businesses, which still relies heavily on the TEŠ coal-fired power plant. As the entire Šaleška Valley is covered by the district heating system supplied by TEŠ, finding an alternative energy supply for the system has been rightly identified as a priority measure, alongside the wider development of the region’s renewable-energy supply. Projects aimed at strengthening research capacities (e.g. Laboratory for Bio-Refining Research) and labour-force skills align with the ambition to retain the region’s strategic position in the national energy system.
For Zasavska, while leveraging opportunities in the energy sector – especially by integrating renewable energy into local industries (including green hydrogen), such as glass production – remains important, pressing priorities consist in transforming industrial land to attract businesses, and connecting national research and innovation projects to the local economy to generate sustainable employment.
Both regions have flagship projects to reuse legacy industrial land and support capacity in local SMEs to benefit from the transition opportunities. With regard to labour markets, both regions recognise the need to improve education and provide lifelong career guidance, with a focus on integrating circular-economy principles into educational content.
Similarly, both identify indicative productive investments in large enterprises as potential anchor strategies to attract other business connected to their value chains. For SAŠA, the support provided to large companies leans toward green technologies, including the production of more energy-efficient household appliances by Hisense Gorenje Household Appliances Company. Zasavska, on the other hand, focuses on industrial diversification and adding value to traditional manufacturing sectors. One example of this intended support is the call published in October 2025 for the promotion of investments for economic restructuring, targeting both established and young companies (Spriti Slovenija, 2025[10]).
Although several flagship projects have been included as priority initiatives for the transition, they have yet to be implemented. Some of the main factors that have delayed the implementation of transition projects included delays in grant disbursement, permitting procedures and procurement shortcomings (see Chapter 4 for a discussion on project implementation).
It is worth noting that priorities related to improving connectivity identified in the Slovenian National Strategy – namely, “additional regional connectivity and sustainable mobility” (SAŠA), and “high-quality living and natural environment” and “improved connectivity of the region” (Zasavska) – are outside the scope of the JTF, but can be supported by the other pillars of the JTM.
Territorial Just Transition Plans complement broader Regional Development Programmes
The RDAs in Zasavje and Savinjska for SAŠA produced RDPs as part of the planning process for the operational programmes for the period 2021-27. The RDPs focused on broader areas beyond the just transition:
RDA Zasavje, in co-operation with stakeholders and members of the Regional Development Council, prepared the RDP for Zasavje for 2021-2027.
For SAŠA, RDA Savinjska, in collaboration with stakeholders, has prepared the RDP for the Savinjska (NUTS-3) region for 2021-2027. Regional development in the Savinjska region is organised in a network manner, with RDA Savinjska serving as the leading organisation and official RDA. There exist five additional co-operating development agencies, including DA SAŠA. Together, they developed the 'Sub-regional Development Programme SAŠA 2021-2027' (DA SAŠA, 2021[11]), which is incorporated into the NUTS-3 RDP of Savinjska region.
The RDPs are a broader strategy for developing the region, outlining the regional development potential, the potential smart specialisation strategy, and the development objectives and priorities for the programming period (the last programmes cover 2021-2027). They also contain a governance mechanism for promoting development in the region and determining the system for monitoring, evaluating and organising the implementation of the RDP (Chapter 4).
The RDP outlines the broader development priorities for the region, with selected projects targeting the JTF, but also other sources of funding.
SAŠA RDP includes the just transition as one of five strategic development areas
SAŠA’s “Regional Development Programme SAŠA 2021-2027” focuses on digital transformation, innovation ecosystems, renewables, circular bioeconomy, and green jobs and technologies. The RDP is structured around five strategic areas:
Smarter and more sustainable SAŠA
Low-carbon, green and connected SAŠA
Social SAŠA
SAŠA for sustainable and integrated development
SAŠA in a just transition.
The last strategic area, “SAŠA in a just transition”, is dedicated to measures and projects for the just-transition process. It sets six development priorities (Table 3.4) and around 60 project concepts registered with the SAŠA DA which could be eligible for funding under the JTF. Roughly half of these projects also correspond to other development priorities identified in SAŠA’s RDP.
Table 3.4. SAŠA RDP 2021-2027: Priorities of the strategic objective “SAŠA in a just transition”
Copy link to Table 3.4. SAŠA RDP 2021-2027: Priorities of the strategic objective “SAŠA in a just transition”|
“SAŠA in a just transition” priorities |
Measures to support priorities (selected) |
|---|---|
|
Just energy transition of the valley |
-Develop and invest in infrastructure to mitigate the consequences of the region’s restructuring (transition of district heating to RES, highly efficient production of heat and electricity, production of electricity storage systems, etc.). -Establish a competence centre in the field of modern energy management. -Preserve energy location (rehabilitate and reuse degraded areas for energy activities). -Maintain TEŠ as a key location in Slovenia's electricity system. -Green resources (pilot and demonstration projects for decarbonisation). -Use alternative fuels in TEŠ. -Construct a gas-fired power plant with cogeneration of heat in TEŠ. |
|
Development of brownfield sites |
-Long-term rehabilitation of areas subject to subsidence from mining. -Change use of certain areas/brownfield sites for alternative economic and other uses (education, supporting environment, tourism, etc.). -Decommission abandoned energy facilities. |
|
Connectivity and sustainable mobility |
-Infrastructure connections (road, rail). -Digital connectivity: digital competencies, digital service provision, digitalisation of institutions and business. -Sustainable mobility: cycle paths, e-mobility, hydrogen vehicles. |
|
Sustainable and diversified economic development and jobs with high value-added |
-Maintain the production capacity of existing companies (support demonstration projects in the field of green technologies). -Start-up ecosystem, including creative industries (industrial and technological incubator SAŠA TecHub i4.0). -Zero-waste valley to implement the zero-waste principle in economic activities. - More supportive business environment to improve exports and foreign direct investment. -Spin-off activities of Velenje coal mine based on intellectual expertise and acquired knowledge. -Wood-processing centre: improve competitiveness of wood-processing activities that are currently supplying Velenje coal mine. -Centre for Modern and Efficient Energy Solutions (renewable-energy sources, energy services and recycling of RES equipment). -Silver economy: increase capacity on care services for the elderly. -Sustainable tourism: leverage industrial heritage and memories, and turn degraded areas into attractive tourist areas. |
|
Skilled and motivated workforce |
-Retraining programmes for redundant workers in the energy sector. -Revise formal education (curricula) to reflect new professions. -Revise non-formal education and retraining – (re)design professional qualification programmes. |
|
Promoting social and cultural development of the region |
-Culture, sports and volunteering, to ensure social activation of unemployed former coal mine workers. -Promote a positive image for the valley: establish an NGO incubator as a catalyst for sustainable development.. - Care for vulnerable groups (socially excluded, disabled miners, foreigners). |
Source: (Development Agency SAŠA, 2021[12]).
Zasavska’s RDP includes the just transition as one of six strategic development areas
For Zasavska, the RDP sets out six development priorities. The sixth priority relates to the utilisation of the JTF. It covers 8 specific objectives (Table 3.5) and identifies 44 proposed projects for implementation within the framework of the JTF.
Table 3.5. Zasavska RDP 2021-27
Copy link to Table 3.5. Zasavska RDP 2021-27|
Development priority |
Measures to support priorities (selected) |
|---|---|
|
Innovative and competitive economy in Zasavska |
-Develop business locations. -Support transformation of economic activities. |
|
Green and low-carbon Zasavska |
-Environmental protection. -Promote the circular economy. -Regulate flood and erosion areas. -Energy efficiency and use of RES, energy self-sufficiency. |
|
Mobile and regionally connected Zasavska |
-More sustainable mobility. -Public passenger transport. -Cycling network. -Traffic management in urban centres. -Accessibility and connectivity of the region. -Smart solutions for sustainable mobility. |
|
Socially developed Zasavska |
-Support the transition from education to employment. -Renovation and construction of social infrastructure. -Social protection programmes. -Strengthen competencies for life and work. -Comprehensive healthcare and prevention. -Social entrepreneurship. |
|
Sustainable and integrated urban and rural development |
-Mechanism for the sustainable development of urban settlements and urban areas. -Prepare regional spatial plans. -Revitalise cultural heritage. -Youth and active citizenship. -Transition to a cleaner society and nature conservation. -Community-led local development. -Promote the development of NGOs. |
|
JTF |
-Productive investments in SME, including start-ups. -Productive investments in large enterprises to encourage diversification. -Investments in research and innovation activities and promoting the transfer of advanced technologies, in line with the Slovenian smart specialisation strategy. -Deploy technology and infrastructure for affordable clean energy. -Upskill and retrain workers. -Regeneration and decontamination of facilities, land remediation. |
Several projects in the RDPs have objectives that overlap with those under the Just Transition pillar, especially in areas like low-carbon growth, sustainability and socio-economic inclusion. While this dual programming aligns broader regional planning with targeted just-transition strategies, it creates greater responsibility to differentiate between RDPs and TJTPs in terms of activities and priority actions, complicating project classification and straining administrative efficiency and capacity.
With regard to sectoral focus, just-transition projects in both regions rightly focus on the clearest endogenous assets in their economies, including the manufacturing technology and energy sectors. While these sectors have the greatest potential to unlock high added-value jobs and business in the regions, other sectors, such as tourism or social economic models – which are less of a focus – could be additionally supported to mobilise social organisation and less-skilled workers.
SAŠA, for example, has dynamic tourism activities in leading destinations of Upper Savinja Valley and Šaleška Valley, with opportunities for further product development (e.g. festival tourism in the Šaleška Valley, boutique tourism in the Upper Savinja Valley, exploitation of natural and cultural heritage).
In Zasavska, there is very limited investment in tourism accommodation, which remains relatively outdated. Plans have long been proposed to develop the Medija Thermal Spa in the town of Izlake, which has been closed since 2009, into a major tourist and business complex. There has been some tourism activity linked to industrial heritage, which can provide a good basis for further promoting the region and attracting people by capitalising on the environmental assets through sport tourism (e.g. trekking, canoeing) and cultural heritage. This opens the possibility of advancing a clearer and more long-term development strategy for sustainable tourism. For instance, RDA Zasavje, which is currently drafting the region’s tourism strategy (funded by municipalities and in co-ordination with the RDA), is a first step to advance a coherent plan for sustainable tourism (rra-zasavje, 2025[14]).
Clear synergies among the key transition sectors – manufacturing technology and energy – could be clearly highlighted, with common actions to strengthen business conditions needed for these projects to create long-term shifting effects in the local economies. Some of the areas to be strengthened include innovation ecosystems, labour markets and infrastructure. This will be further discussed in the section.
Lessons learned to improve planning in the just transition
The “EU regulation 2021/1056 establishing the Just Transition Fund” includes an exhaustive list of activities that can be supported, in accordance with the aims of alleviating the transition’s socio-economic impacts, supporting the economic diversification and reconversion of the territories, and helping people to adapt in a changing labour market.
However, delivering on the just transition, and setting each region on a pathway towards long-term energy, environmental, economic and social restructuring will require looking beyond the confines of EU just-transition frameworks and financing mechanisms. For example, the JTF supports productive investments in SMEs, but only supports investments in large enterprises under certain conditions when these are approved as part of the TJTP.3
Therefore, just-transition priorities, measures and specific projects proposed for SAŠA and Zasavska – whether identified in the TJTPs or relevant parts of the RDPs – constitute a specific – albeit important – dimension of the overall picture of RDPs. Thus, a long-term transition approach would also require the regions to take advantage of the full array of EU and national funding opportunities open to them (and available to all regions of Slovenia).
Beyond funding and strategic vision, delivering on the regions’ ambitions for a just transition will ultimately depend on their capacity to effectively implement their transition plans and projects. While this implementation has experienced delays, later progress has shown a catch-up (Chapter 4).
Against this backdrop, different lessons can be extracted from the process in these regions to help prepare future just-transition development plans and ensure strong linkages with local priorities over time.
Enhancing the quality of project proposals and their match with development priorities. Although the types of measures (operations) envisaged under the TJTPs are an outcome of the assessment of development needs in the face of the anticipated impacts of the transition, the operations proposed under the TJTPs are also somewhat reflective of the project concepts collected during the preparation phase. According to the interim implementation report for JTF (Ministrstvo za kohezijo in regionalni razvoj, 2025[1]), more than 70% of proposed operations at that stage were still at the concept level, often lacking a basic technical feasibility study, financial plan or land/site assessment. This made their preparation and appraisal more demanding, and increased the risk of later delays. Stakeholders in SAŠA and Zasavska also underlined that for some municipal projects, such as the redevelopment of former energy sites, the main difficulty was not the absence of ideas. Rather, it was the need to adapt integrated concepts in innovation, education or economic development to the specific eligibility criteria and content requirements of calls (for example, for business incubator schemes), which sometimes required redesign and phasing. Within the existing, transparent set of Cohesion Policy selection criteria, more systematic pre-application support and clearer expectations on minimum documentation could help applicants present more mature proposals, also helping them understand how to structure integrated projects across different calls and funding sources.
Ensuring that national and private flagship innovation projects become anchor projects to attract new businesses while also contributing to the growth of local companies. As the next section will outline, much of this would rely on enhancing the business environment in the regions through stronger innovation ecosystems and supportive labour markets. Some differences, however, exist among both regions:
For SAŠA, large international companies already offer a clear opportunity to potentially link local companies into their supply chains. For example, this includes projects highlighted often by local stakeholders during OECD visits to the region, such as the Hisense Gorenje’s potential development of new generations of household appliances, or national-led projects in the field of green technologies,
For Zasavska, the projects proposed for repurposing brownfield sites are important developments in terms of supporting and projecting the region as a more dynamic and innovative business environment. Some examples highlighted by local stakeholders include the Rudnik Hrastnik business zone or the Kompreshaus Hrastnik business incubator in the municipality of Hrastnik; the Kisovec II economic business zone in the municipality of Zagorje ob Savi; the Lakonca economic business zone in the municipality of Trbovlje; or the DUBT Centre in Kisovec. As noted later, it will be important to leverage such developments in such a way that they contribute to the emergence of local innovation ecosystems.
Seizing the opportunities to amend TJTPs in line with new EU priorities or renewed regional needs. For example, while the JTF is not intended to support large public infrastructure projects, such as major road and rail projects (which can be primarily supported by other EU funds, such as the ERDF, or the Connecting Europe Facility), both regions have included measures to support regional transport connectivity using the third pillar of the JTM. This was reflected in the 2024 amendment of the TJTPs in SAŠA and Zasavska. SAŠA included measures contributing to regional connectivity and sustainable mobility, mainly in sustainable local mobility, with a focus on public transport and soft measures (park and ride), infrastructure for sustainable mobility, active mobility, etc. Zasavska included measures contributing to better regional connectivity, mainly in the areas of public transport promotion, infrastructure and sustainable (local) mobility, with key projects identified by stakeholders such as the phased reconstruction of the Zidani Most-Hrastnik regional/main road. Those amendments are a relevant aspect to keep aligning JTF funding support with local and European strategic priorities.
Involving non-governmental social sector actors in just-transition policymaking and delivery. Social actors (e.g. community organisations and social enterprises) have expertise in supporting vulnerable and disadvantage groups (including long-term unemployed people) and promoting the inclusiveness of transition processes by offering alternative routes for social (re)integration.
Create a more coherent development narrative for the future for the regions. RDPs proposes a range of measures under headings of sustainability or diversified economic development. Given their disparate nature, it is not evident that they can be framed within coherent and focused strategies for development that align, for example, with the regions’ smart specialisation potential. For example, SAŠA ’s RDP includes sustainable tourism, wood processing, care services for the elderly and spin-off activities for the Velenje Coal Mine under the diversification pillar. While each may contribute to the region’s economic development and job creation, the coherence of these targeted measures is not fully clear.
For both regions, adopting a more strategic approach to land rehabilitation and the reuse of coal mining areas, beyond the productive projects submitted for funding by the Ministry of Cohesion and Regional Development (MCRD), would be valuable. While the planned remediation of affected areas appears on track, there exists no coherent regional master strategy guiding the long-term rehabilitation of former coal and energy sites, including through environmental and social opportunities, or their integration with neighbouring areas. In terms of economic business infrastructure, the projects selected and approved for MCRD financing in the Zasavska and SAŠA regions are either already located in degraded areas (such as the renovation project in Hrastnik) or will be newly established there – for example in Kisovec (Zagorje ob Savi) and Trbovlje. Communities, companies and local governments would benefit from having a clear, integrated idea – such as a master plan – outlining the vision for the rehabilitation and reuse of the entire mining and industrial areas, combining economic initiatives with environmental remediation and social uses (e.g. educational or community spaces). These types of coherent plans can also help improve synergies among different uses of land.
This is particularly relevant for Zasavska, where the hilly geography and limited land availability constrain opportunities for large-scale productive investments. Additional efforts are therefore needed to optimise existing land for low-volume but high-value-added activities, in co-ordination with tourism and other land-related activities.
Examples of mine rehabilitation, like the Terhills development in Belgium, illustrate the relevance of using a master plan, with a public‐sector investment company to channel public subsidies into infrastructure development (Box 3.).
Box 3.2. A master plan for mine rehabilitation
Copy link to Box 3.2. A master plan for mine rehabilitationTerhills, mine repurposing into a tourism hotspot
Situated on the edge of Belgium’s only National Park, Terhills covers an area of approximately 365 hectares, encompassing the former Eisden mine (closed in 1987), power station (closed in 1996) and gravel quarrying site. Terhills NV, a subsidiary of the Limburg Investment Company LRM (a financial investment company wholly owned by the Flemish regional government), made a EUR 75 million investment to transform the area and started reconverting the mining site into a tourism hotspot, with 100 hectares rezoned as a nature reserve and another 119 hectares opened to nature recreation.
Although shaped by its past as an industrial mining and gravel digging site, Terhills markets itself as an environment now characterised by lush fauna and flora, huge watercourses and unique sites, providing a wide range of recreational activities based on eco-friendly project development.
Initial development included the Maasmechelen Village luxury outlet and Euroscoop cinema beside the Eisden mine (both created in 2001). In 2015, the Terhills Hotel opened in the renovated mine building, followed by the Terhills Conference Centre, Terhills Events square, Cablepark and gateway facilities to Hoge Kempen National Park. In 2019, the Elaisa Energetic Wellness centre opened; in 2021, Center Parcs launched the Terhills Resort, with energy self‑sustainability at its core.
The development of Terhills has benefitted from public funding for non-return related investments, including around EUR 3 million for investment in a shuttle service, event zone and bicycle paths. This was 100% subsidised by Limburg Sterk Merk (LSM), a foundation and investment fund which invests in not-for-profit projects). An additional EUR 6.5 million went to the building of a bicycle bridge as a special attraction (“Cycling between the slagheaps”), 100 % subsidised by the Province of Limburg and LSM.
Lessons learned:
A clear, investable plan helps attract private capital, ensure land-use efficiency, and align repurposing efforts with broader economic and environmental objectives
Anchor rehabilitation in a master plan: begin redevelopment with a comprehensive master plan that defines land-use zones, timelines and transformation paths (e.g. nature, tourism, commercial, education).
Combine public funding with a dedicated delivery vehicle: use a public‐sector investment company (e.g. LRM/Terhills NV) to channel public subsidies into infrastructure, land remediation and value-adding partners.
Launch anchor projects to catalyse growth: start with flagship developments (e.g. the luxury outlet Maasmechelen Village and a hotel in the former coal building) to create demand for support infrastructure
Segment land by use and conservation value: designate former coal site areas by use (e.g. nature reserve, recreation zone, business and tourism infrastructure), preserving heritage while allowing mixed uses.
Sources: (Terhills, nd[15])); (European Commission, 2025[16]).
Most of these actions require the right financial and technical capacity for the regions to plan appropriately (Chapter 4). This would benefit from the evolution of the capacity acquired by the RDAs and JTCs throughout this planning process to help prepare the future Just Transition plans. Nonetheless, attention would be needed to keep guaranteeing these institutions have sufficient ex-ante funding or expert support for planning to turn ideas into well-structured project proposals.
Towards a common framework for project prioritisation in the planning process.
A priority to improve the planning process is to introduce a transparent framework for assessing the strategic contribution, feasibility and readiness of project proposals. This could ultimately help strengthen the project applications with the highest potential. Such a framework should be anchored within a broader long-term regional vision that is not solely focused on the JTF (see Chapter 4). It should contain overarching priorities to be attained over the medium term (set, for example, in the RDP of the programming period) as well as long-term outcomes. As the mix of funding sources will evolve over time, consistent guidance for transitioning regions can also help applicants understand what types of projects are most relevant, and how to prepare them. Classifying projects based on key actions to attain the priorities could serve as a starting point for prioritisation.
The list of projects confirmed by the Regional Development Councils (SAŠA/Zasavska coal regions) represents only a selection of potential projects. Projects eligible for co-financing must meet the requirements and selection criteria specified in public calls or for the direct approval of operations. This is based on the published guidelines from the Managing Authority and relevant ministries/agencies that serve as implementing bodies. Under EU Cohesion Policy, Slovenia already applies a wide and transparent set of project selection criteria (Merila 2021-2027 and related guidelines), prepared by the managing authority and approved by the monitoring committee. In this sense, the prioritisation of potential projects at the regional level could be guided by a number of different evaluation tools (e.g. a simple multilevel alignment matrix), with scoring criteria based on consistency with EU objectives (e.g. decarbonisation and employment), national milestones (e.g. megawatts of renewables installed or deadlines for coal phase-out), regional vision targets (as set out in the RDP) and project-specific indicators (e.g. cost efficiency). Projects exceeding a defined score threshold would advance to the next stage of appraisal. RDAs, supported by their JTCs, could then apply such quality filters to assess the technical, administrative and socio-economic viability of shortlisted projects.
Regional project lists discussed at the Regional Development Council level are indicative and support planning. Final eligibility and co-financing depend on the requirements and selection criteria set out in public calls or, where applicable, direct approvals, in line with the guidelines of the Managing Authority and implementing ministries. The RDC may use a periodic session to take stock of the indicative pipeline and note substitutions when projects withdraw before sharing the updated overview with the relevant national bodies. Where appropriate, publishing summary information (for example, categories, simple scores and expected milestones) on existing public information systems can support transparency and traceability. Figure 3.1 presents an example of a streamlined prioritisation flow for SAŠA and Zasavska.
Figure 3.1. A proposal for project prioritisation for coal-mining regions in Slovenia
Copy link to Figure 3.1. A proposal for project prioritisation for coal-mining regions in Slovenia
Notes: RDA= Regional Development Agency NECP =. Solvenia’s Comprehensive National Energy and Climate Plan, NRDS = Solvenia’s National Regional Development Strategy. ERDF = the European Regional Development Fund. RRF = Recovery and Resilience Facility.
This prioritisation effort could build on the experience of other coal regions (Box 3.3) that underscore the potential benefits of a more structured project portfolio. By embedding this approach, SAŠA and Zasavska can reinforce the coherence and effectiveness of their respective just transitions. In practical terms, the project portfolio would benefit from strengthened JTCs (see the recommendation in Chapter 4 about enhancing the centres’ capacities), which could:
screen new proposals against EU, national and regional priorities
test their technical maturity and permitting status before they enter funding calls
sequence them according to their alignment with the regional vision, priorities, capacity and deadlines.
Box 3.3. Silesia’s project preparation facility: Translating a regional vision into investable projects
Copy link to Box 3.3. Silesia’s project preparation facility: Translating a regional vision into investable projectsThe Silesian Voivodeship, Poland’s largest coal mining region, set up a dedicated project preparation facility inside the GAPR RDA in 2021. The aim is to turn the Silesia 2030 Strategy into a bankable pipeline for the JTF and national climate funds.
Joint steering: the Marshal’s Office chairs a JTF steering group that gathers GAPR, the Silesian Development Fund, trade union representatives and municipal associations from the three coal basins.
Structured screening: municipalities and firms submit proposals on a common portal. GAPR screens each project against EU Green Deal criteria, Poland 2040 milestones and the four pillars of the Silesia 2030 Strategy. Projects that meet the threshold undergo a “quality check” (permits, socio-economic cost-benefit) before the steering group recommends them for funding.
Open progress review: an annual Open Forum for Just Transition, held in Katowice since 2022, publishes the ranked list, tracks milestones and invites public feedback.
Initial performance: according to the JTF dashboard (February 2025) of the Directorate-General for Regional and Urban Policy (DG REGIO) of the European Commission (EC), 78 projects worth EUR 1.45 billion have received JTF approval, equivalent to about 37 % of Silesia’s envelope, with large clean-energy schemes such as the Łaziska Green Hydrogen Hub progressing through environmental permitting.
Looking beyond the EU Just Transition Mechanism
The European Union has committed to continue delivering on a clean transition (European Commisson, 2025[18]), as stated in the European Commission’s proposal of 16 July 2025 for the next Multiannual Financial Framework (MFF) 2028-2034, which emphasises a budget accommodated to local needs. It includes National and Regional Partnership Plans (NRP Plans) designed to link reforms with investments across the European Union to support its 2030, 2040 and 2050 targets for energy and climate, as well as the needs of local communities and businesses in a clean transition (European Commission, 2025[19]). These NRP Plans would support a just transition by focusing on reducing economic, social and territorial disparities across regions of Member States, and by prioritising unique regional challenges (European Commission, 2025[19]).
While this European Commission proposal is now subject to co-legislative negotiations, there is some way to go before political consensus is achieved on the future MFF, with negotiations set to continue for the next period (before 2028) and coal regions calling for earlier dialogue and certainty on this matter. For example, the report of the Just Transition Platform’s “Future of Just Transition” Working Group, published in July 2025, called for continued EU funding to support long-term just-transition efforts and retaining a territorial approach, which allows tailored support to the specific needs of each territory under transition (European Commission, Directorate-General for Regional and Urban Policy, 2023[20]).4
Against this backdrop, Slovenian coal regions should be prepared for all possible future scenarios in terms of transition funding from the European Union, and thus actively explore diverse funding mechanisms in advance. Among the new priorities of the European Commission (2024-2029), the strong emphasis on clean-energy sources and clean-energy technologies for improving the competitiveness of industries and businesses (for example, by scaling up the manufacturing capacity of net-zero technologies and their supply chains) are directly relevant to coal regions.
Another focus should be the ability of these regions to attract new industries, as well as planning for the associated social and skills needs to support the energy and climate transition. As set out in the Clean Industrial Deal (the EU strategy for competitiveness and decarbonisation), a major boost to the competitiveness of European industry is required in the face of high energy costs, fierce global competition and changing political, social and technological dynamics (European Commission, 2025[21]).
In this context, updating the transition strategy while dealing with uncertainty on the future of current economic activities and funding sources is a core activity for the planning process in SAŠA and Zasavska. For example, SAŠA must prepare for the end of coal mining and coal-based power-generation activities, while also contending with uncertainty over whether the TEŠ power plant will continue to operate until the planned closure date of 2033. Slovenian coal regions have unique assets that can be leveraged to develop manufacturing capacities in net-zero technologies and their supply chains, including clean-energy supply. With a history of energy supply and manufacturing activity, these regions are potentially well suited for further development in these areas, given their existing networks (electricity capacity, hot water pipelines, water pipelines, gas pipelines, etc.), relevant technological and engineering know-how, and academic knowledge.
Implementation of the Net Zero Act and accompanying actions, such as net-zero acceleration valleys or academies, open up additional opportunities for coal regions (European Commission, 2025[22]). For example, the study on the net-zero manufacturing industry landscape across EU Member States recommends paying special attention to enabling the transitioning regions to become potential clusters for net-zero technologies (European Commission, 2025[22]). As noted by the European Commission (2025[22]), Slovenia stands out as a notably competitive exporter of grid technologies (components such as automatic circuit breakers, relays, parts of electrical boards, devices for protecting electrical circuits and liquid dielectric transformers), with specific assets like the Carbon-Free Technology Demonstration and Training Centre in Zagorje ob Savi.
Summary
The transition-planning process has provided both regions with clear advantages, establishing institutional foundations and identifying projects to unlock new economic opportunities. Each region has outlined sectors and initiatives aligned with its endogenous assets and relevant to driving economic transition. While these choices are broadly consistent with regional potential, the recent planning experience in Slovenia’s coal regions, SAŠA and Zasavska, highlights important lessons for future just-transition plans and for strengthening alignment with local priorities. Looking ahead, priorities include improving prioritisation and coherence across projects, updating TJTPs according to new needs and looking for funding opportunities beyond the JTM. At the same time, a strategically aligned approach to help both regions move beyond fragmented initiatives, leveraging flagship innovation projects as anchors to attract new businesses and support SMEs, would be needed while embedding social actors more systematically in policy planning and delivery.
As the following section explores, the policy framework for transition would gain from moving beyond a project-based approach towards a stronger focus on strategic actions that address structural challenges in the business environment and improve overall quality of life in the regions.
Enabling conditions to build transition paths for SAŠA and Zasavska
Copy link to Enabling conditions to build transition paths for SAŠA and ZasavskaCoal mining has shaped the economic trajectories of SAŠA and Zasavska for decades. It has provided economic stability and driven prosperity, but also generated economic dependence and created vulnerabilities that weakened the local conditions for economic diversification. As mentioned before, these regions are in different stages of phasing out coal, and thus have different priorities with regard to enhancing their regional ecosystems to support the transition to new economic activities.
However, despite differences in certain priority areas, both regions would benefit from ensuring that the basic enabling factors for development are in place. This would help guarantee that transition plans and projects build on strong local conditions for success and generate long-term development impacts locally. In this context, a transition-policy framework that shifts from a project-based approach to a comprehensive regional development strategy can be strengthened by focusing on:
a competitive regional innovation ecosystem
a stronger local labour market
improved public infrastructure for citizens/residents and businesses.
This section will outline strategies to improve the above-mentioned enabling factors to support transition pathways.
Towards stronger regional innovation ecosystems
Innovation is known as a cornerstone to economic transition processes (OECD, 2023[23]) (Diluiso et al., 2021[24]). Innovation can boost productivity levels in industrial regions, creating new job opportunities and wages, and preventing such opportunities from being concentrated in certain – often metropolitan – regions.
Both regions have notable examples of support programmes and infrastructure to promote networks and innovation in the local economy.
Notable projects in SAŠA include:
The biomass biorefinery research lab in Velenje, built by the National Institute of Chemistry as part of the Technology Park Velenje-TecHub incubator. This includes a laboratory for biomass research, which can become an innovation anchor to attract researchers and provide applied R&D support for clean-tech businesses.
The pilot renewable energy source (RES) plants developed by the state-owned energy company HSE Group and its subsidiary TEŠ (Šoštanj thermal power plant). The plant aims to reduce reliance on lignite in the energy mix through clean-energy technologies. To this end, HSE Group and TEŠ are using existing TEŠ infrastructure (land, grid connections, utilities) to test and scale renewable alternatives, and establish a demonstration site for future large-scale deployment of renewable-energy technologies in Slovenia. The pilot RES plants would include solar photovoltaic (PV), battery storage systems, potential geothermal feasibility assessments and green hydrogen production.
Circular-economy initiatives at the Velenje coal mine landfill explore how to turn waste streams into new industrial inputs.
Notable projects in Zasavska include:
The Development, Demonstration and Training Centre for Carbon-Free Technologies Centre (DUBT Centre) developed by the National Institute of Chemistry and located in Kisovec, in the municipality of Zagorje ob Savi,, focuses on applied research and pilot testing in hydrogen and carbon dioxide (CO₂) conversion technologies. It would support upskilling through demonstration and training functions, and support local business innovation through collaboration.
An operating business incubator (Katapult) supported by local company Dewesoft (test and measurement solutions) will expand into a new site, “City of Acrobats”, at the new business zone Lakonce in the municipality of Trbovlje.
The Circular Economy Academy Zasavska, implemented in 2024 by the Zasavska JTC in collaboration with the organisation Circular Change, aims to strengthen capacities and introduce circular-economy principles into the region’s economic sectors.
The Strategic Research and Innovation Partnership MATerials as end PROducts (SRIP MATPRO) was created to bring together different stakeholders around the production of high-value materials used in complex end-products. It also aims to link SMEs and local businesses with innovative value chains.
Innovation support programmes in SAŠA and Zasavska have resulted in positive outcomes over the years. In both regions, the SPOT (Slovenska poslovna točka) platform was established to support SMEs. It serves as a centralised resource for entrepreneurs and businesses, offering guidance on various aspects of business development, from registration to legal and regulatory compliance
Despite these efforts, the regions still face a number of challenges to ensure innovation efforts translate into long-term economic opportunities for the region:
Overreliance on nationally led innovation projects to spur innovation: in both regions, the flagship innovation projects are led by national actors, including the National Institute of Chemistry, but with still unclear links with local ecosystems.
Low absorptive capacity for innovation funding in medium and small firms: in SAŠA, manufacturing is led by a few large companies with an international scope and investors, that have the scope to better integrate SMEs in their value chain. This is specially the case of Hisense Gorenje and BSH Hausgeräte GmbH, whose value chains have scope to further integrate SMEs.
Gaps in matching innovation-related funding with project ideas emerging from local strategies/entrepreneurs result in short timeframes for application and project ideas without matching funds.
The Zasavska RDA has limited human resources to enhance co-operation with stakeholders in the regional and national business ecosystem to support innovation and SMEs.
Despite the focus on circularity, there is low exchange between interested circular players across both regions. SAŠA and Zasavska would benefit from synergies in circular-economy projects and business outcomes. For example, greater collaboration among Zasavska’s Circular Economy Academy, the Just Transition Academy (certified and non-certified training programmes), SAŠA’s Interreg Commit and Interreg Plastix would help support circular activities across regional business.
The JTPs of these regions have already identified many of these challenges, yet concrete actions are needed to address these challenges within a set timeframe.
Better linking innovation projects with local SMEs and entrepreneurs.
National or flagship public innovation projects can trigger positive innovation dynamics at the subnational level: they bring scale in knowledge and funding and serve as anchors to other businesses, skilled workers and additional private innovation investment (Njøs and Fosse, 2018[25]; OECD, 2022[26]; Lembcke and Lee, 2025[27]). Analysing the impact of government support to regional innovation in the United Kingdom, Lembcke and Lee (2025[27]) found that a 1% increase in government R&D investment results in a 1% increase in private-sector R&D investment. OECD mining towns in transition such as Outokumpu (Finland) have also shown how a nationally led project in the form of a pilot plant of mineral testing has supported the municipality to transform into a hub for mineral research and testing.
However, without planning, those projects on their own will not necessarily benefit or scale up local business, nor will they boost entrepreneurship (OECD, 2022[26]). A lack of active regional innovation policy could lead to isolated projects that rely fully on expertise and value chains outside the region, producing only operational jobs locally. OECD and other regional innovation studies have shown that boosting innovation in rural contexts requires a combination of top-down and bottom-up approaches promoting innovation flagship projects or high innovation actors while supporting the local system, for example through greater linkages among actors (OECD, 2022[26])
SAŠA and Zasvaska have a great opportunity to capitalise on flagship innovation projects or international innovation actors to offer new opportunities for entrepreneurs and ultimately support a transition based on new value-added activities. Both regions have already secured relevant projects led by national actors, such as the National Institute of Chemistry or the TEŠ power plant in Šoštanj. Against this backdrop, the RDA and chambers of commerce should collaborate to identify concrete areas to link projects with local ecosystems. To this end, they could:
Ensure the RDA and chambers of commerce have the necessary capabilities to engage with innovation projects and institutions to understand their scope and timeframes, and align them with forthcoming RDPs.
Facilitate workshop meetings with leaders of national innovation projects, which should be well communicated and with an established frequency.
Identify innovation needs to promote opportunities for joint ventures, equity sharing and participation in R&D consortia. This would require further mentoring, to help SMEs and entrepreneurs capitalise on potential opportunities and the needs of future projects. The JTCs and firm-to-firm mentorship are useful means to this end.
Promote innovation competitions or challenge-based approaches for local entrepreneurs and students, to address the regions’ needs for flagship innovation/industrial projects.
To this end, Zasvaska can further strengthen SRIP MATPRO in the region and leverage it to connect local business to various innovation-related value chains, including the DUBT Centre, the Circular Economy Academy and large private companies (e.g. Herz Company). SAŠA could promote a similar type of institutional network to help connect innovation players.
Box 3.4. The Strategic Research and Innovation Partnership MATerials as end PROducts (SRIP MATPRO)
Copy link to Box 3.4. The Strategic Research and Innovation Partnership MATerials as end PROducts (SRIP MATPRO)Founded under Slovenia’s Smart Specialisation Strategy (S4), the regional innovation framework SRIP MATPRO was created to unite companies, research institutions and innovation intermediaries around the goal of advancing the production of high-value materials used in complex end-products. Its core mission is to build value chains by linking material producers, technology developers and product manufacturers, enabling end-to-end innovation from material development to market.
SRIP MATPRO is funded through a combination of public sources (through Slovenia’s S4 and EU Cohesion Policy tools) and private-sector investment. The chamber of commerce co-ordinates SRIP MATPRO. The network includes 20 core companies and 4 knowledge institutions (universities and research centres).
Key institutional hubs of this initiative include Ljubljana (home to GZS and partner research institutions) and the regional centre in Zasavje, where outreach events and workshops have been held to promote and expand the initiative across Slovenia’s regions.
In Zasavje, the Zasavska Gospodarska Zbornica (the local chamber of commerce) supports the project’s office operations related to SRIP MATPRO. In 2023, the Ministry for Cohesion and Regional Development organised a workshop on smart specialisation, and specifically on the MATPRO priority area, at the RDA Zasavje in Zagorje ob Savi. The event aimed to root the smart specialisation concept in regional innovation ecosystems, and to identify new companies and actors for SRIP MATPRO. Although the central co-ordination of SRIP MATPRO is in Ljubljana, a few local firms (such as AFormX d.o.o., based in Zasavje) are members of SRIP MATPRO.
Beyond public-led innovation projects, SAŠA has untapped opportunities to scale up local business by collaborating with large firms connected to international markets. SAŠA has innovative manufacturers with international linkages such as Hisense Gorenje, BSHG and Podkrižnik. The diffusion of knowledge from the most innovative firms to other firms is an instrument that spurs innovation by linking SMEs to new markets and knowledge (Mitchell and O’Neill, 2016[33]). Engaging in better partnerships with these firms to understand their innovation needs can help unlock innovation ideas locally. The example of the Windcluster in the Verdal Municipality of Norway can guide the strategic plan to promote such links (Box 3.5).
Box 3.5. Linking local and external networks for economic transition: Verdal Windcluster Mid-Norway project
Copy link to Box 3.5. Linking local and external networks for economic transition: Verdal Windcluster Mid-Norway projectSince the 1960s, Verdal, a small industrial town in Central Norway, has specialised in oil and gas after a major Norwegian industry corporation started developing a yard for the fabrication of steel structures for the offshore oil and gas industry. For almost three decades, Verdal fared well, and the yard grew to become a cornerstone in the region and a large industrial site in Norway. However, in 1999 and 2009, the oil and gas industry experienced important shocks which hit the Verdal economy.
Following the first external shock, the Aker Verdal company underwent a restructuring process that resulted in significant loss of employment. In 2000, subsidiary companies started forming in Verdal, many of them focusing on mechanical engineering and formed by previous Aker employees.
Verdal Municipality, in close co-operation with Aker, supported the transition by applying for a restructuring programme from central government to reduce the negative effects of plant downsizing and help revitalise the local economy. The programme conducted three adaptive strategies to address the issues in the Aker company and set a new industrial development path in Verdal Municipality.
1. A comprehensive training programme was developed, aimed at laid-off workers, workers at the Aker plant and individuals who had left to work in spin-offs or other new firms.
2. Entrepreneurial support and programmes were delivered to attract new (external) firms into the Verdal Industrial Park, to diversify the local economy.
3. The infrastructure at Verdal was developed to facilitate new ventures.
4. In 2009, Verdal faced a second economic shock as a result of the global financial crisis. The response to this event was even more proactive than the response to the first shock, as it was decided to support the creation of the Windcluster Mid-Norway.
The local government decided to include the development of infrastructure to promote new ventures and facilitate the sectoral agglomeration of existing firms. However, the most important feature of the second response is its focus on developing inter-company networks and extra-local linkages to new markets and knowledge sources, specifically the Windcluster Mid-Norway project. The project aimed to develop a wind-energy cluster, with an initial focus on the emerging offshore wind market.
In 2009, the local strategy was to apply for an “Arena” programme, which is typically financed for three years and aims to increase value creation in regional business environments. This external state funding was crucial to the launch of the cluster project. It is therefore evident that the top-down strategy of cluster creation in this case fitted with the bottom-up aspirations in Verdal.
Source: (OECD, 2019[29]).
Other OECD mining regions have partnered with companies to develop support for economic diversification through contests, funds and knowledge-sharing. For instance, companies in Antofagasta (Chile) or Northern Ontario (Canada) run competitions or challenges based on identified business needs. These are effective actions to support new ideas and tailor seed funding.
While leveraging the flagship innovation projects in Slovenian regions seems to be the most immediate strategy to create new jobs and reboots local economies, other long-term strategies to support business ideas are worth exploring. These include tailored support for entrepreneurship and other types of innovation, such as social innovation.
Supporting entrepreneurship to build the transition
As described in the previous sections, SAŠA and Zasavska recognise the relevance of targeted assistance, including access to funding, mentorship opportunities and training initiatives tailored to local needs, for start-ups and established businesses alike. The RDAs have already made progress in providing support to project preparation and conducting networking events. Yet tailoring actions to support innovation in these regions requires further attention. Such actions include adapting support to entrepreneurs in a transition context and helping them navigate administrative procedures.
Promoting an entrepreneurial culture
In OECD regions undergoing transition out of extractive activities, entrepreneurship levels and attitudes tend to be relatively low. This is due to a number of factors, including the historic crowding effect of high salaries and job security generated by the extractive sector, community uncertainties about the future of the local economy and scarce access to funding. Broad studies of European coal regions highlight weak start-up cultures – for example, lignite areas in Greece have relatively lower start-up rates than the regional average in the country (Makris, Apostolopoulos and Anastasopoulou, 2024[30]). In Zasavska and SAŠA, these structural issues stand, albeit with certain particularities, including a relatively low share of young population in both regions (particularly in Zasavska) and a narrow industrial base (Zasavje Regional Development Agency, 2024[31]).
There is scope to adapt funding and support for entrepreneurship to the characteristics of entrepreneurs in SAŠA and Zasavska. In both regions, uncertainty on the future can impact the capacity of some actors to react to public support and invest or create a new business. As in other OECD non-metropolitan regions, most of the entrepreneurs outside big cities are young (OECD, 2022[26]). Therefore, particular support for youth entrepreneurship is needed. This can be done by supporting an entrepreneurial culture early in high school (Box 3.6), improving communication on inspiring entrepreneurial examples to adolescents and their parents, and providing tailored funding and mentoring programmes. In Zasavska – where the population of young people is relatively low – special effort should be made to attract youth (either from other regions or the capital) to the area, or encourage former inhabitants to return.
Box 3.6. Supporting an entrepreneurial culture
Copy link to Box 3.6. Supporting an entrepreneurial cultureThe entrepreneurial function is a vital component of economic growth. The business environment regulates the opportunities, feasibility and desirability of entrepreneurial action, as well as its outcomes. OECD countries have conducted a number of strategies to boost entrepreneurial culture. Many of those actions aim to improve education, promote training and mentoring, and provide second chances.
Table 3.6. Promoting an entrepreneurial culture: Policy developments
Copy link to Table 3.6. Promoting an entrepreneurial culture: Policy developments|
Policy approaches |
Examples |
|
|---|---|---|
|
Entrepreneurship education |
Denmark |
Danish Foundation for Entrepreneurship: created in 2011 following a partnership between different ministries, it aims to create a coherent national commitment to education and training in entrepreneurship, and to become a national knowledge centre for entrepreneurship education and training. |
|
Netherlands |
Education and Entrepreneurship Action Programme: launched in 2007, it aims to promote entrepreneurship in education and bring the education sector and the business community closer together. Education Networks Enterprise: set up in 2009 as a subsidy scheme, it is designed to help educational institutions integrate entrepreneurship education into their policies, organisation and curricula. |
|
|
Portugal |
Strategic Programme for Entrepreneurship and Innovation 2011-2015: it has introduced entrepreneurship as a transversal competency in school teaching programmes, including non-formal training. This includes the INOVA! Ideas contest, which provides young people with the opportunity to develop ideas that can contribute to resolving issues in their local communities. |
|
|
Information, advice, coaching and mentoring |
Canada |
Expert Panel on Championing and Mentorship for Women Entrepreneurs: set up within the framework of the Economic Action Plan 2014, it aims to consult with business leaders and entrepreneurs, and advise the Minister of Status of Women on best practices for mentorship and championing to support women entrepreneurs. |
|
France |
Entreprendre au Féminin: the national plan to develop women entrepreneurship, launched in 2013, includes initiatives that sustain entrepreneurship education and raise awareness among female students about opportunities for entrepreneurial careers. |
|
|
Second chance |
European Union |
Second chance for honest entrepreneurs: to address the stigma and consequences of business failures, the Small Business Act for Europe promotes a second-chance policy by supporting actions and facilitating exchanges of best practices between Member States. It includes promoting a positive attitude in society to give entrepreneurs a fresh start, as well as enabling the completion of all legal procedures to wind up a business, in the case of non-fraudulent bankruptcy, within a year. |
|
Portugal |
Revitalise Programme (Programa Revitalizar): this makes it easier to save economically sound businesses which are facing insolvency through the provision of financial instruments, the development of an out-of-court credit restructuring system and improvements in the legal framework. The Insolvency and Corporate Recovery Code introduces an early warning mechanism which aims to facilitate timely signalling of financial difficulties. New “pre-executive extrajudicial procedure”: gives creditors prior knowledge about the attachable assets of debtors, enabling better decisions on further action to be taken. |
|
Source: (OECD, 2017[32]).
Promoting entrepreneurship within the currently employed population is a strategy that other regions in transition have also undertaken (Box 3.7). In SAŠA, the workers affected by the transition would need support to identify future opportunities and to rely on a safety net to reduce the risk of starting a business. In Zasavska, where practically no coal workers remain and many residents commute daily to work in other regions, opportunities can emerge from supporting spin-off ideas developed by workers holding down jobs in other regions.
Box 3.7. Motivations of corporate intrapreneurship programmes
Copy link to Box 3.7. Motivations of corporate intrapreneurship programmesIntrapreneurship programmes are rapidly becoming popular among many large corporate groups throughout OECD Member countries. Despite this being a relatively new corporate phenomenon, intrapreneurship development policies are being implemented in order to reach different objectives. Intrapreneurship expert Nicolas Bry has compiled a list of these policies (Bry, 2020[33]):
bringing new products and services to market more quickly, with less risk of failure, and improving customer intimacy
protection against start-ups aiming to disrupt your business model
motivating and retaining your best staff and grooming new leaders
developing a nimble way to innovate
creating an environment where new ideas can be systematically tested and iterated until they fit the market and company culture
making a societal impact and linking with internal corporate social responsibility policy.
Specific examples: for Deutsche Telekom, the purpose of adopting an internal intrapreneurial approach is simply to help “employees who want to realise their idea and become entrepreneurs”. This differs from the French telecommunication company Bouygues, which uses intrapreneurship programmes to “innovate like a start-up”. Deutsche Bahn implements intrapreneurship mainly to foster new digital business models and encourage long-term cultural change amongst its employees and business units. Similarly, Air France seeks to “develop new business with an innovative approach”, and to build a team-driven ecosystem that shows “initiative, want to commit, and take responsibility” (Bry, 2020[33]).
Source: Based on Nicolas Bry (2020[33]).
Among the various programmes and initiatives implemented by Zasavska to support entrepreneurship, PONI is seen as a positive example supporting entrepreneurship with direct engagement and a follow-up process, and has been highlighted as a good practice for other coal regions (Box 3.8). This initiative could be supported by other actors, including the Katapult business incubator, the Faculty of Economics and Business, and other relevant faculties in the country (in Ljubljana, Maribor or Nova Gorica), to create a more sustained programme for the region.
Box 3.8. Examples of entrepreneurship support in Zasavska
Copy link to Box 3.8. Examples of entrepreneurship support in ZasavskaPONI, a wider entrepreneurial project for Slovenian regions
Running from 2023 to 2028, PONI Zasavje is a four-month entrepreneurship training programme, part of the national Agreement for the Development of Regions implemented in all 12 development regions and funded by the MCRD. It supports up to 106 participants from the Zasavska region in developing and launching their business ideas through training, mentoring and practical support. Participants receive a formal employment contract with RDA Zasavje during the programme. This provides financial stability and allows them to focus entirely on refining their entrepreneurial projects.
The programme includes structured training in entrepreneurship, individual and group mentorship, and practical sessions to help participants develop viable business models and products. It welcomes candidates of any age or education level, as long as they reside in Zasavska, and emphasises inclusivity and accessibility.
Expected outcomes include training 106 individuals, generating 106 new business plans, delivering products to market and establishing at least 32 new businesses (approximately 30% success rate).
The European Commission's Social Innovation Research Unit has recognised PONI Zasavje as one the top 100 EU social innovation projects. The programme also drew interest from Spanish coal regions seeking to replicate its success (Iolov, 2025[34]). SAŠA also recently started a PONI project.
Preplet
Preplet is a regional project in the Zasavje region aimed at creating a learning hub (učno stičišče) that links schools (from kindergartens through secondary), teachers, students and regional economic actors (Municipality of Zagorje ob Savi, 2025[35]). It is part of the “just transition” (pravični prehod) efforts for Zasavje, with funding and policy support from the JTF and related public funds.
The aim is to improve both what is taught and how it is taught, making schooling more relevant, modern and adapted to current economic needs. This includes innovative pedagogy, peer co-operation among teachers, exchange of best practices, development of new teaching materials and the inclusion of more digital, green and entrepreneurial skills.
The plan is to repurpose the “Partizan” building in Zagorje ob Savi into the learning hub. In addition to the physical space, there will be a virtual space for teachers to network, share materials and collaborate on didactic teaching approaches. Multiple primary and secondary schools (and some kindergartens) in Zasavje participate in the project. The full rollout of all the planned activities (teacher training, new curricula, virtual networking) is still in progress.
In summary, actions to promote entrepreneurship in these regions include:
Tailored entrepreneurial programmes for the young population in the region or those interested in relocating to the area: combining communication of inspiring examples for youth and parents with tailored support programmes early in school can be useful tools.
Expanding financial incentives and risk capital to foster entrepreneurship in transition regions: both regional just-transition plans already highlight the need for alternative funding for new firms, combining grants with InvestEU or other risk capital instruments foreseen in national plans. Building on this, the Slovenian government and regions should provide clear, sustained support through low-interest loans and co-investment programmes. In Zasavska, financial support for workers starting businesses should include mechanisms to provide a safety income net during the first months. While earlier Employment Service schemes had mixed success (24ur, 2011[38]), smaller, better-targeted funds linked to transition-related sectors could be more effective and easier to monitor.
Building an entrepreneurial culture: this is a long-term strategy, particularly relevant to changing the economic structures of these regions. This is particularly useful for SAŠA, which still has time before the closure of its coal mine. Building an entrepreneurial culture can include a combination of entrepreneurial education, coaching and mentoring, and support for second-chance entrepreneurs.
Keep working on communicating about the transition pathways identified and available support for entrepreneurs: design campaigns that reach all types of populations, especially youth.
Particularly for Zasavska, evaluate actions to leverage PONI, Katapult and other innovation infrastructure to support entrepreneurship: these actions should target youth and the workers commuting to other regions in order to link new ideas to upcoming productive activities in the region.
Easing access to support and streamline administrative processes for entrepreneurs and SME expansion
Streamline administrative procedures and offer clear incentives for new businesses. As happens in other EU regions transitioning from coal (Makris, Apostolopoulos and Anastasopoulou, 2024[30]) – local business and actors in these Slovenian regions highlight that grant programmes are rigid, complex and time-consuming. In many cases, this is a consequence of the regions’ reliance on EU funds to support local business. The calls to access these funds, as well as the burden of applying and reporting outcomes, also comprise disincentives for innovation actors across other EU non-metropolitan regions (OECD, 2025[39]).
Slovenian regions already benefit from streamlined initiatives to support SMEs, such as SPOT. This instrument provides SMEs with a single window of information on administrative simplification, as well as other business-support services such as business consulting, mentorship, workshops, and up-to-date information on government programmes and incentives (Republica Slovenia, 2025[40]). The RDA in Savinjska seems to have expertise in supporting its businesses through this platform.
RDAs, in co-operation with chambers of commerce and chambers of crafts, can play a stronger role in mapping, channelling and promoting funding accessibility to innovation actors. As this report outlines, there exist a number of funds beyond the JTF to support innovation in regions, including Horizon Europe, the ERDF and Erasmus+. Regions can either apply to some of these funds for financing or promote local consortia to access such resources. Other funds – such InvestEU and European Investment Bank funds – can also support innovation ideas. Although SMEs and entrepreneurs might be unable to apply directly to large funding calls, promoting partnership with universities or larger firms can help integrate small businesses in such calls.
A greater focus on social and government innovation to secure the transition
As is the case with other coal regions in transition, innovation initiatives tend to place strong emphasis on R&D and technology-based innovation, with less attention paid to other types of innovation that can be instrumental to the economic transition. For example, social, public or organisational types of innovation could help address more place-based challenges, such as keeping active ageing populations, mitigating outmigration and improving access to services. Non-tech/social innovation also tends to involve local stakeholders (communities, non-profits, municipalities) more directly and increase participation by marginalised groups, which can help build social capital, trust and local networks (OECD, 2022[26]).
In SAŠA, the business ecosystem is dominated by some relatively large companies, including Hisense Gorenje (the fourth-largest manufacturer of household appliances in Europe) and micro and small companies. In Zasavska, the business ecosystem is dominated by micro, small and medium-sized enterprises.
The planning processes for the just transition in these regions already involve social actors and enterprises, but could provide greater support for their ideas on social innovation. These actors have particular expertise in supporting vulnerable and disadvantage groups (including long-term-unemployed people) and promoting inclusive transition processes by offering alternative routes for social (re)integration (European Commission, Directorate-General for Energy, 2024[41]). Coal communities in these regions have shown high solidarity in the transition. Thus, social enterprises and third-sector groups alike can benefit from such solidarity to complement the main transition sectors by incubating local economic projects.
Beyond the consultation mechanism to involve social enterprises in transition planning, SAŠA and Zasavska can use targeted tools to promote innovation and economic activity among these actors. This includes a clear classification of what social enterprises are, and the benefits they can obtain from national and EU support. Other regions in transition have supported such social enterprises and co-operatives to some extent through public procurement (Box 3.9).
Box 3.9. Promoting social innovation in a coal-transition region
Copy link to Box 3.9. Promoting social innovation in a coal-transition regionPreston, United Kingdom
Preston is the administrative centre of the county of Lancashire, featuring a population of 114 000. The area underwent significant economic restructuring starting in the 1980s, leading to high unemployment and a loss of local income. Just over a decade ago, the unemployment rate in Preston was 15% (2012).
One action to spur economic activity was the adoption of a “community wealth-building” approach since 2013. This approach ensured that procurement processes were simplified for potential local and regional suppliers, and that the procurement of goods and services benefitted local communities. As a result, over a five-year period, locally retained spend increased within Preston from 5% to 18%.
To make this possible, the city leveraged the Public Services (Social Value) Act, which came into force in 2013. The Public Services Act encourages commissioners to talk to their local provider market or community to design better services, often finding new and innovative solutions for difficult problems. Social value is evaluated based on qualitative responses from bidders, not on volumes. This means that larger suppliers are not able to win on scale alone. All bidders must set out what they will deliver and how they will deliver it, and it is this information that is scored in bid evaluations
Eastern Wielkopolska, Poland
Eastern Wielkopolska is an example of efforts to leverage social-economic development and progressive procurement to help convert coal job losses into durable local employment. In planning actions to absorb displaced workers from the region’s large lignite power and mining company (ZE PAK), which will cease mining activities by 2030, the region adopted a social approach to secure legitimacy, and leverage skills and social capital via public procurement. The region involved coal workers, unions and local organisations in the co-design of policies, leading to the creation of co-operatives and training programmes. Concrete actions undertaken by this region to support social actors include:
Involving workers in co-designing skill programmes for retraining and job creation.
Involving co-operatives and social enterprises in the creation of transition projects and business plans for growth.
Creating of a supplier database and events to communicate to local companies the processes and rules for accessing public procurement (“meet the buyer” events). It also added legal flexibility and clarity to tender processes. These measures increased public spend in the local economy.
In parallel to supporting social innovation, DA SAŠA and RDA Zasavska, with assistance from the regional branches of the Chamber of Commerce and the Chamber of Crafts, could further use an experimental approach to governance and programming to test new methods for supporting innovation or involving entrepreneurial ideas or companies in decision making. For example, in East and North Finland, the region experimented with a new funding mechanism based on the voucher system: the High Impact Action presented an opportunity to leverage directly a European Commission grant, without reliance on national funding to support ideas to develop new innovative products and methods related to the circular economy in the forestry value chain (OECD, 2023[44]). Likewise, the Hauts-de-France region in France tested an experimental policy methodology to support the digital transition of traditional companies (Box 3.10).
Implement most of the innovation-related actions outlined above requires a joint work from different institutions beyond RDAs in Slovenian coal regions. RDAs would benefit from partnering with clusters, academic and research institutions, or intermediary organisations to implement innovation strategies, identify needs, and help local actors join consortia to apply for funds and support.
Box 3.10. Government experimental approaches to supporting SMEs in a transition context
Copy link to Box 3.10. Government experimental approaches to supporting SMEs in a transition contextHauts-de-France’s SMEs are confronted with a need to adapt to complex digital and personalised production systems to remain competitive. The region elaborated the High Impact Action plan to help industrial SMEs acquire the skills needed to integrate digital technologies into their production processes, product design, product distribution and service provision by offering coaching and advisory services. The primary goal of this action was to enhance the competitiveness of regional companies, which would lead to future job creation in the region.
The Hauts-de-France region experimented in order to tackle three large industrial transition challenges: (i) supporting SMEs with innovation potential for innovation; (ii) supporting SMEs in their digital transition; and (iii) strengthening the breadth and depth of public support for regional innovation.
The pilot action offered an in-depth diagnosis of digital maturity and coaching to SMEs. It also created a collaborative ecosystem that brought together companies, digitalisation experts and the public sector to co-develop innovative solutions to the challenges of digital transformation in industrial SMEs.
The example of Hauts-de-France highlights the critical role of coaching and mentoring programmes in supporting traditional companies through industrial transitions. In Hauts-de-France, policymakers have recognised that every company’s transition process is unique. Therefore, a targeted coaching approach based on a company audit is more effective than a standardised digitalisation-support programme that is broadly applied across companies and industries. Additionally, experimenting with coaching and mentoring programmes can foster a culture of learning and development within the company, and inform policymakers in regions undergoing industrial transitions.
Source: (OECD, 2023[45])
Improving the local labour market
Ensuring an appropriate skill base is a significant challenge for many regions in transition. SAŠA and Zasavska have already benefitted from important steps to strengthen the local labour market. These include programmes to incentivise companies to hire people and improve the employability of the residents (Regional Development Agency Zasavje, 2023[46]), as well as national laws like the Law on Transitional Financing for an Accelerated and Fair Coal Phase-out, which provides social security and job protection for employees of the Velenje coal mine and the Šoštanj thermal power plant (The Slovenia Times, 2024[47]).
However, the non-metropolitan characteristics of these areas, combined with uncertainty surrounding the transition, have affected demographic dynamics in SAŠA and most notably Zasavska, undermining the skill supply in these regions. As highlighted in Chapter 2, these regions face net outmigration, particularly among young people who leave to study or seek employment in other regions (mainly in the capital). Furthermore, the limited provision of public services (education, health) and recreational amenities might affect their capacity to attract new workers permanently.
Like many other coal regions, SAŠA and Zasavska also face challenges regarding their planning and implementation capacity to support the local workforce in embarking on new economic pathways. Notable bottlenecks include:
information and data gaps necessary to improve the link between labour-market demand and supply at the regional level
top-down design of reskilling programmes, with gaps in meaningful involvement by regional stakeholders
limited national-subnational co-ordination to deliver and implement skill programmes
bureaucratic hurdles and communication of skill programmes.
Labour-market challenges not only call for targeted actions to improve opportunities for coal workers, but also for improved efforts to supply the right skills to attract new businesses.
Improving foresight labour data at the regional level
SAŠA and Zasavska face a lack of reliable foresight data on workforce characterises vis-à-vis the future needs of new industries, making it difficult to adapt retraining efforts effectively. For example, national policymakers in labour policy acknowledge the uncertainty inherent to setting up training programmes, as future job demand is unclear. Companies and unions suggest that more support should go to providing applied training that matches evolving business models and technologies.
In SAŠA, an important current issue is recruiting and retaining workers in mining activities, especially given the ageing workforce, as post-closure activities to secure the mine and rehabilitate former mining areas are expected to last several years beyond the closure. Tracking the overall evolution of labour demand and supply in the final phases of the coal sector, along with the progress of the upcoming transition project, could benefit from mapping workforce skills against future industry demands. Monitoring this situation is important to ensure that labour-market support programmes – including support for early retirement, job search and reskilling – are appropriately and proportionately designed.
Labour-market intelligence tools can help identify labour shortages and facilitate better matching between local vacant positions and available workers, including the unemployed. Novel approaches produce timely estimates on regional occupation and skill demand, going beyond aggregated information based on employer surveys, which usually comes with a longer time lag. While many statistical offices provide estimates of job vacancy rates and the extent of labour shortages at an aggregated level, for example at the industry level or by firm size – and sometimes for an entire country – advances in data availability (e.g. from online job postings) and text analysis (i.e. natural language processing) have given rise to more granular insights. For example, the VDAB pre-employment screening system in Flanders (Belgium) uses the Jobbereik (“job reach”) tool to provide jobseekers with occupations they could pursue, based on their competencies and transferable skills (Box 3.11).
Slovenia’s National Platform for Competencies is developing data on workforce characteristics and industry needs to build tailored educational programmes for the country’s 12 regions. Coal regions also have platforms to support labour intelligence, which can be improved to adapt data to local workforce characteristics. For example, Zasavska has the Platform for Skills Forecasting, which can be strengthened with the latest technology to enhance the pre-employment screening analysis and the matching between industry needs and labour supply (Employment Service of Slovenia, 2021[48]). SAŠA has conducted a SAŠA Career Opportunities Fair (Poklicne priložnosti SAŠA 2025 – Pravični prehod SAŠA) to better inform youth and connect them with current and future employment possibilities in the area (Center za pravični prehod SAŠA, 2025[49]). A regional institutions (such as the JTC) can manage this regional workforce information to help meet the labour forecast for the transition.
In parallel, vacancy-to-employment ratios in green and information and communication technology (ICT) jobs tend to be consistently higher than in other economic sectors. While there are not enough data to measure vacancy ratios in SAŠA and Zasavje, previous OECD work has shown that in almost all OECD regions (95%), labour shortages in ICT occupations are greater than in other jobs or sectors. Labour shortages are also more pronounced for green jobs than non-green jobs in nine out of ten (90%) regions.5 OECD regions are therefore adopting new approaches to support job mobility into green jobs, based on tools that measure skill similarities among occupations – based on data from online job postings – to inform public employment services that provide career guidance and design training programmes (Kleine-Rueschkamp, Baertsch and Peñalosa, 2024[50]).
Box 3.11. Pre-employment screening (PES) approaches to improve skill matching
Copy link to Box 3.11. Pre-employment screening (PES) approaches to improve skill matchingNew types of labour-market data, along with advances in statistical and artificial intelligence (AI) methods, allow PES in many OECD countries to better support job seekers and employers. As of 2024, half of OECD PES approaches augmented their services with some form of AI technology. Yet the use cases and tools substantially differ among PES approaches. Matching systems that recommend suitable job opportunities for job seekers, which are currently used by 20% of OECD PES approaches, are the most common application.
VDAB, the PES in Flanders (Belgium), uses the Jobbereik (job reach) tool to provide job seekers with occupations they could pursue based on their competencies in their current role and transferable skills. Based on data from job vacancies and deep learning, this tool supports job mobility and transitions. VDAB is also developing a new functionality which identifies a jobseeker’s skill gap, maps it against alternative career paths and suggests training courses to close the gap. Additionally, Competentiecheck (competency check) allows jobseekers to assess whether their skills are up-to-date by letting them evaluate their level of familiarity with their occupation’s most important competencies. This tool is also designed to provide users with training and job suggestions.
Another example is France Travail, the French PES, which uses two versions of an AI-powered tool to help job counsellors and job seekers navigate available active labour-market policies if a job seeker is unlikely to find a job quickly. Since 2017, job counsellors can use the Mon Assistant Personnel (My Personal Assistant) tool to obtain individual-specific recommendations for active labour-market policies support and job opportunities, based on a job seeker’s CV. This tool, based on various types of AI (reinforcement learning, machine learning and an expert model), assists job counsellors and allows them to spend time on other important tasks, rather than replacing them.
Source: (OECD, 2024[51])
Tailoring skill programmes with greater stakeholder involvement and partnerships
Many reskilling programmes are designed at a national (top-down) level, with gaps in meaningful regional stakeholder involvement. Training programmes for these regions are largely nationally designed and not tailored to regional needs. While employment services exist regionally, training and upskilling strategies are not driven by regional development requirements and demand.
Furthermore, there is scope to further involve trade unions and local stakeholders in labour-market strategies. Some trade union members in SAŠA report a lack of meaningful participation in early JTF planning and programme design, as their input was limited to public consultations or post-hoc feedback, rather than being involved in shaping reskilling policies. This resulted in weak alignment with workers' real needs.
DA SAŠA and RDA Zasavska could address this issue by establishing an ad-hoc advisory group comprised of trade union members and other worker representatives. This advisory group could gather information on skill needs in order to inform Ministry of Labour about policies and implementation strategies that can help advance upskilling and reskilling goals in the regions. SAŠA can further leverage the Just Transition Academy within the RDA to involve actors in designing skill programmes. The example of the Netherlands can serve as a practical guide to reinforce workers’ involvement in transition plans and skill programmes (Box 3.12).
Box 3.12. A multi-stakeholder arrangement to relocate coal workers in the Netherlands
Copy link to Box 3.12. A multi-stakeholder arrangement to relocate coal workers in the NetherlandsTo limit the negative impacts from the closure of the Hemweg coal-fired power plant, the Netherlands implemented a model transition plan, the Westhaven arrangement, showcasing how proactive, stakeholder-driven strategies can mitigate job losses and support just transitions. When the Dutch government announced the early closure of the Hemweg plant in 2018, approximately 1 500 workers in and around the plant faced job losses much earlier than expected. The announcement triggered strong reactions from unions, who demanded a robust "work-to-work" transition scheme to ensure no one was left behind.
Recognising the socio-economic risks, the Ministry of Social Affairs and Employment, in collaboration with trade unions, employers and public agencies, committed to reaching an inclusive solution. The result was the creation of the Mobiliteitscentrum Kolenketen Westhaven (MCKW), a mobility centre co-developed by:
FNV, the largest trade union
Vattenfall and OBA Bulk Terminal, the main employers affected
the Ministry of Social Affairs and Employment
UWV, the Dutch public employment service.
This broad coalition of actors was essential to ensure that reskilling and career-transition programmes were aligned with the actual needs and aspirations of workers, and adapted to regional labour-market opportunities. The centre worked individually with each worker, identifying who wanted to remain in the energy/logistics sectors or to switch to a new field entirely.
Workers who wished to stay in the industry but shift roles received targeted upskilling support.
Those seeking to switch industries accessed reskilling programmes designed to help them enter new sectors.
Employers directly offered alternative jobs to many displaced workers, facilitating quick redeployment.
Crucially, these training and job-matching services were complemented by a generous income support programme, inspired by previous coal-region transitions in Limburg. Affected workers received up to three years of 100% income compensation in cases of unemployment, underemployment or job transitions with lower pay. This financial stability gave people the time and confidence to pursue meaningful reskilling, rather than accepting low-quality or short-term work.
The initiative had a budget of EUR 22 million and delivered rapid results: by 2020, the majority of workers had transitioned into new employment, avoiding long-term unemployment traps.
Tailored curricula in vocational education and training (VET) can also provide students with the necessary technical skills and practical experience to meet the demands of companies in SAŠA and Zasavska. VET can prepare students for technical professions, many of which experience shortages linked to transition sectors, while also facilitating school-to-work transitions and offering a pathway to higher education. For example, Austria has adapted the educational content of more than 80 apprenticeship programmes to the needs of the green and digital transitions, in collaboration with companies and social partners. It also created new apprenticeship programmes to this end, such as the “Climate-oriented and urban gardening” programme (Klimagärtner/-in) and the “Community heating” programme (Fernwärmetechnik) in 2024 (Austrian Ministry of Labour and Economy, 2024[54]).
Enhancing government co-ordination and regional capacity to delivery skill programmes
Government co-ordination and regional delivery capacity are also key priorities to implement skill programmes effectively. For example, the national government has set a programme to support 1 500 workers who are expected to be directly impacted by the Velenje mine closure. The programme will be complemented by a forthcoming law on the closure of the Velenje coal mine. However, the specific roles and co-ordination of labour-market support measures across ministries is still unclear. Furthermore, the co-ordination of national institutions with subnational institutions – such as the regional chamber of commerce, regional employment services, trade unions and municipalities – to improve the delivery of large-scale reskilling programmes could be improved. An effective implementation of skill programmes requires multilevel-government co-operation to help tailor programmes to regional needs and characteristics. This tailored process would benefit from clear timelines to track and show progress on skill programmes. For example, other OECD governments have established specific plans to co-ordinate different ministries and local stakeholders, with the goal of building readiness in local labour markets to address future shortages for green industries (Box 3.13).
Box 3.13. Government co-ordination to train workers for the transition in Austria and the Netherlands
Copy link to Box 3.13. Government co-ordination to train workers for the transition in Austria and the NetherlandsLabour foundations in Austria
Labour foundations (Arbeitsstiftung) in Austria are co-ordinated mechanisms among companies, regional labour-market actors and territorial authorities to address mass layoffs (outplacement foundation) and skills shortages in the region (in-placement foundation). These mechanisms involve a wide variety of counselling and skill-development opportunities.
In response to the impact of the green transition on the labour market, an environmental in-placement foundation was created by the Austrian Trade Union Federation, the Austrian Federal Economic Chamber and the Public Employment Service. The foundation has a budget of EUR 10 million and aims to help 1 000 unemployed individuals with no vocational training acquire qualifications required in the environmental sector. The available support includes training, apprenticeships and mobility packages (subsidies for relocation costs, housing and travel expenses up to EUR 17 000).
The Dutch Action Plan for Green and Digital Jobs
The Action Plan on Green and Digital jobs is a response of the Dutch government to labour shortages identified as a barrier in the green transition. The government anticipates that shortages in both green and ICT skills could significantly slow efforts to reach the country’s 2030 and 2050 climate goals.
To address these shortages, the Dutch government is working with many stakeholders and government bodies. At the inter-ministerial level, the ministries of education culture and science, economic affairs and climate, and social affairs and well-being are involved. Regional governments, municipalities and representatives of the private sector participate in stakeholder-input meetings.
Reducing bureaucratic hurdles and improving the communication of skill programmes
Bureaucratic hurdles and communication of programmes also appear to be common issues in these regions. During the OECD visits to the SAŠA and Zasavska regions, businesses and stakeholders expressed frustration over delays and difficulties in accessing funds for workforce development, with project calls for training or job-transition that lacked clarity or featured a timing mismatch between short project timelines and long-term local needs. Some programmes are not promoted. For instance, on-the-job training is provided, but not widespread or known across industries.
Enhancing the public infrastructure for residents and businesses
Retaining and attracting people in these regions involves requires going beyond securing new employment opportunities after the mine closure. It requires enhancing the regions’ attractiveness and liveability for residents and businesses through targeted improvements in services and infrastructure. Some horizontal actions for both regions include:
improving the affordability and sustainability of energy supply for businesses and residents
improving the transport infrastructure
enhancing access to land for industrial and housing purposes.
Improving the affordability and sustainability of energy supply for businesses and residents
Improving the attractiveness of SAŠA and Zasavska and encouraging new businesses to establish themselves in the regions also requires a green and affordable energy supply. SAŠA still relies on a fossil fuel-based energy supply (Velenje coal mine and Šoštanj thermal power plant), and makes limited use of its renewable-energy potential. At the centre of this region’s energy transformation is the decarbonisation of the district heating system, with Velenje municipality planning to replace the ageing infrastructure with a system that allows renewable-energy solutions. To this end, the country adopted the Act on Transitional Financing of an Accelerated and Equitable Withdrawal from Coal, which regulates the temporary provision of heat production and supply in the municipalities of Velenje and Šoštanj (as a public utility service) while laying down obligations regarding the provision of alternative production sources by the heat distributor (Uradni list Republike Slovenije, 2024[57]). In addition, the Law on Transitional Financing for an Accelerated and Fair Coal Phase-out aims to ensure a stable supply of heating for the residents of the Šaleška Valley. Furthermore, the MCRD has approved almost EUR 20 million of JTF funding for Phase 1 of the overhaul of the district heating system (Republic of Slovenia, 2025[58]).
While this first step marks an important progression, the work done so far is mainly preparatory and the necessary transformation, including integration of renewables and widespread upgrades to buildings’ energy efficiency, has not yet been implemented. Ensuring the full transformation of this system requires an accelerated integration of renewables, with clear milestones for share of renewables in the district heating supply, as well co-ordinated operations among several actors (e.g. state, municipality, heat distributor) to ensure support that the heat distributor can fulfil its obligations regarding alternative energy sources. A comprehensive transition from fossil fuels to renewable energy will also require clear financial planning, likely based on different funding options beyond the JTF, to ensure the project can meet the 2033 timeline for the coal phase-out (European Commisson, 2022[59]).
Zasavska region is also progressing deliberately towards a renewable-based future, yet its renewable-energy capacity remains moderate and concentrated in solar, with further diversification and scale-up needed to build a truly resilient, green energy system. Zasavska has made several strides towards its goal of a 40% share of renewables by 2034 (European Commission, 2025[60]). This includes ramping up solar power production through projects such as the Prapretno solar park and Zagorje ob Savi Solar Initiative, and development of the Small Hydrogen Valley Zasavska, which will integrate clean hydrogen technologies in various sectors (Pravični Prehod Zasavja, 2024[61]). With a capacity of 3 MW, the Prapretno 1 solar power plant was the largest solar power plant in Slovenia when it started operating in 2022. A second phase of the development (Prapretno 2 and 3), partly funded by the JTF, should add a further 9.9 MW. There are potential opportunities for other RES (hydropower and geothermal energy), but questions remain over their environmental impact (for hydropower) or economic viability (for geothermal energy).
Overall, securing more self-sufficient green and affordable energy supplies in both regions requires concrete implementation actions, in line with the 2033 decarbonisation timelines. This includes planning for financing gaps beyond the JTF by focusing on further public funding opportunities or public-private partnerships.
Addressing energy poverty
Energy affordability is also relevant to improving liveability in communities. In Slovenia, energy poverty is especially acute among single-person households, seniors and single-parent families, particularly in rural communities (Republic of Slovenia Statistical Office, 2024[62]). In SAŠA and Zasavska, many homes use legacy district heating systems that were built decades ago, with low efficiency and high costs. Poor-quality housing with energy-inefficient appliances further contributes to energy poverty, with almost 10% of households across both regions experiencing energy poverty, compared to 7% nationally (SiStat, 2024[63]). The reasons lie in the socio-economic status of the affected households, comprising low-income families living in old and energy-inefficient building stocks. The average age of the dwellings in Zasavska is over 45 years; less than one-third of the dwellings built before 1970 have been renovated (Papantonis, 2024[64]).
SAŠA has already advanced an initiative to improve housing efficiency with the “Warming up to SAŠA’s transition” programme, which includes stakeholder mapping, community workshops, information centres and gamified campaigns to facilitate planning for heating systems integrating renewables. Zasavska region would also benefit from further programmes to improve energy efficiency in homes and information-sharing on energy-efficient practices. In turn, RDA Zasavje has an ongoing co-operation with the national environmental NGO Focus (project Renoverty).
Common actions that can help increase the affordability of energy in the regions include:
Promoting local energy self-sufficiency, including by developing renewable-energy communities and citizen-energy communities: to this end, the regions can further promote the use of national targeted grants and interest-free loans for low-income households to retrofit homes with insulation, efficient windows, biomass heating or solar solutions. For example, the national action plan for 2024-2026 intends to halve energy poverty and features a EUR 33.8 million budget. The regions can also incentivise residents collectively to invest in solar or biomass solutions. Retrofitting must also be accompanied by policies to prevent “green gentrification”, which drives up rental prices and negatively impacts lower-income families and property affordability (Anguelovski et al., 2022[65]).
Integrating housing affordability with energy efficiency: ensuring people (especially in low- and middle-income households) can access housing at a cost that does not overburden their income is key to reducing energy poverty. Their homes must also be renovated to increase energy efficiency (e.g. with insulation, energy-efficient appliances). For example, Zaragoza (Spain) and Ghent (Belgium) combine energy coaching, peer networks and renovation advisory centres to drive uptake of affordable housing retrofitting.
Efficient transport for freight and workers
In SAŠA, Velenje city-municipality offers free public bus routes with bike-sharing and hydrogen buses in a rollout phase, advancing sustainability and accessibility. While helpful, some Velenje’s existing routes lack synchronisation during peak travel to move around reach rural areas. Suburban and rural communities are poorly connected: most rely on private cars or walking rather than punctual, frequent transit, with gaps in alignment of bus schedules with typical working hours. The dispersed settlement pattern compounds access gaps, making last-mile connectivity unreliable (Forbes Slovenija, 2025[66]) (Government Office for Development and European Cohesion Policy, 2022[67]).
In contrast, Zasavska faces greater challenges in regional connectivity because a larger share of workers are commuting daily. While recent projects – including railway upgrades – have improved regional accessibility, significant challenges remain in road transport. Most notable is the need to update the G2108 road (Hrastnik–Zidani Most) and Trbovlje-Prebold tunnel to ensure adequate mobility and freight transport. Current difficulties are compounded by poor public transit alternatives and lengthy travel times.
Some policy priority actions that can help improve transport and mobility solutions in these regions include:
SAŠA should undertake further cost analysis to expand integrated mobility with reliable bus service frequency to connect urban centres with suburban and rural communities. This includes reliable bus service timetables to accommodate shift work and suburban travel, integrating bus service with the existing cycling infrastructure and shared bike systems.
National and regional co-operation should help accelerate the G2108 reconstruction project as part of the Just Transition strategic infrastructure investment, building on funding from JTM and the European Investment Bank. This can be complemented by regional multimodal hubs linking fees and uses for buses, trains, bike paths, and ride-sharing.
Access to land for industrial and housing purposes
Timely access to land has been highlighted as one of the challenges in both regions to attract business and expand housing supply. There is a particular shortage of ready-to-develop land for suitable industrial or commercial land, especially for SMEs seeking relocation or expansion. Difficulties in navigating the landscape of land-use regulations and ownership issues are compounded by the fact that some land parcels are still occupied by mining and power plant sites or legacy areas, whose decontamination and repurposing is costly and legally complex. Navigating these processes, especially for the redevelopment of former mining areas, can still be demanding for local administrations.
In SAŠA, the Velenje coal mine will undergo a structured rehabilitation process extending beyond 2045. This process can create opportunities for land repurposing into green infrastructure, ecotourism assets, energy production or business zones. SAŠA’s multi-municipal co-operation has helped co-ordinate land refurbishing and unlock disused urban-industrial plots for redevelopment.
In the case of Zasavska, the region has further experience in using JTF funding to prepare former mining assets for new productive uses. Through this fund, the region has secured support for several initiatives:
Kisovec II business zone (Municipality of Zagorje) includes extending business zones on remediated land in Zagorje ob Savi and Hrastnik, alongside the DUBT Centre for Carbon-Free Technologies, listed as strategic projects in the regional transition plan (Pravični, 2024[68]).
LAKONCA business and industrial zone (Municipality of Trbovlje) includes installing roads and utilities for the Lakonca industrial zone in Trbovlje (RRA Zasavje, 2024[69]), as well as developing the Lakonca Craft-Industrial Zone project in the former mining complex in Trbovlje by building essential economic infrastructure required for the effective operation of the business zone (Zasavje Just Transition Center, 2024[70]).
RUDNIK business zone (Municipality of Hrastnik) is developing the former mining area in Hrastnik municipality by building roads, water supply and sewer networks, and other necessary infrastructure to facilitate the establishment and expansion of businesses (Zasavje Just Transition Center, 2024[71]). A big endeavour by the municipality was leading the remediation of degraded areas to leave them ready for repurposing options.
KOMPRESHAUS business incubator (Municipality of Hrastnik) is converting the disused Kompreshaus compressor station in Hrastnik into a start-up incubator (total cost of EUR 1.4 million, including a EUR 0.6 million JTF grant) (Pravični, 2024[72]).
Zasavska has also intended to introduce initiatives to renovate the existing (public) housing stock. The first attempts were made by applying for EU calls (Horizon and LIFE) on social and affordable housing development.
However, there are still around 42 brownfield sites spanning 135 hectares in Zasavska, many of which lack remediation and serviced plots (utilities, roads) for SMEs and innovation-driven investment. Industrial and housing developments within these repurposing strategies are not fully co-ordinated, risking a shortage of affordable, serviced housing near new business zones, which could create future mobility challenges for workers accessing employment opportunities.
To address these issues, RDAs should collaborate with the national government to:
Further streamline procedures and ensure transparency in land-acquisition processes to foster confidence among potential investors; to this end, special attention should be paid to simplifying brownfield remediation procedures.
Leverage the rehabilitation of brownfields and legacy coal lands for new industrial, community or recreational developments, and when possible, housing supply: enabling mixed land uses in rehabilitated lands – for example, integrating municipal service or community infrastructure with industrial purposes – can also help ensure urban development with less sprawl.
In SAŠA, as land is repurposed for industrial or clean-energy uses, attention could be also given to promoting appropriate housing availability at a safe distance from new industrial work opportunities, to prevent urban sprawl.
In Zasavska, the region needs to accelerate the remediation of documented brownfields, unlocking more land for business and housing. This can be complemented with greater integration of residential planning near business zones to support workforce housing, reduce commute and foster live-work communities.
Other OECD coal regions have adopted similar repurposing actions to increase the housing supply and improve urban development in their coal communities (Box 3.14).
Box 3.14. Repurposing coal areas for housing
Copy link to Box 3.14. Repurposing coal areas for housingKatowice (Poland) – “First District” housing estate
In Katowice’s city centre, developers converted the shuttered Katowice coal mine (closed in 1999) into a high-density residential district called the “First District”. TDJ Estate acquired the northern part of the former mine site for housing and enlisted architects (Medusa Group) to design eight multi-story apartment towers surrounded by landscaped green space (Wyrzykowska, 2024[73]).
The first construction phase (three 12-story towers with ground-floor retail) was completed in 2021. The project preserved extensive park-like greenery and limited building footprints to honour the area’s character. It requires the city to update its spatial plan to allow residential reuse of the former mine.
Heerlen/Brunssum (Netherlands) – Redevelopment of the “Emma” State mine
In the Dutch region of Limburg, the site of the defunct Emma coal mine (closed in 1973) was transformed into mixed residential and park land. Decades of coal waste had contaminated the area (notably with polycyclic aromatic hydrocarbons), so that extensive remediation was carried out before reuse.
The region agreed to split cleanup costs between the DSM mining company and the government, and to cover shafts and pits safely. Gradual demolition and land reclamation allowed building a modern neighbourhood in stages. Today, the large Emma site (partly in Heerlen, partly in Brunssum) hosts a new housing area, public parks and even light industrial uses – all linked by new roads (van de Weijer, 2018[74]).
Mixed-use project in Utah (United States)
In 2006, the Former Kennecott copper smelter (with slag piles and mining pollution) was redeveloped into “Bingham Junction”. After the United States Environmental Protection Agency cleaned up the northern half of the site and declared it ready for reuse, the city and developers transformed 20% of the area into a mixed-use project which currently features over 1 000 new homes (apartments and townhouses), a light-rail transit station, retail/office space and parks. The site was redeveloped in phases, with strict oversight on soil stability and groundwater, supported by public–private partnerships to attain the goal. In 2015, the project received a federal reuse award from the Environmental Protection Agency.
Summary
A policy framework that embeds both a sectoral and project focus into actions to improve key development conditions could help Zasavska and SAŠA to not only support the business environment for current and new projects, but also ensure a higher quality of life for people living in or moving to these communities. A first priority is strengthening the innovation ecosystem to ensure transition projects boost local capacities. This includes building RDA capacity, integrating SMEs into flagship projects, reducing barriers hindering entrepreneurs from connecting with funding and scaling up social innovation – particularly in tourism, the social economy and circular-economy models.
The labour market represents another structural priority to strengthen the regional business ecosystem. Both regions face fragmented training offers, weak industry-education links and bureaucratic hurdles, all exacerbated by a shrinking workforce due to rural characteristics and youth outmigration. Key actions include ensuring stronger co-ordination among ministries, RDAs, education providers and firms; aligning curricula with future skills; and streamlining access to training funds, to ensure that workers receive timely and targeted upskilling.
Finally, improving the energy, transport and industrial infrastructure offers a cross-cutting solution to mobilise transition projects and broader development. Slovenian transition plans should accelerate renewable-energy integration and housing retrofits to reduce energy poverty, expand sustainable transport and connectivity, and streamline land remediation and redevelopment for industrial and residential use.
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Notes
Copy link to Notes← 1. For example, the Savinjsko-Šaleška RDA, d.o.o. (RA SAŠA), co-operates with the managing authority on setting up a just-transition implementation system and activities at the regional level to ensure partnership. It also co-operates with the national co-ordinator on the preparation of the TJTP and changes to the TJTP. It co-operates with the intermediary bodies (e.g. ministries) on procedures for selecting operations (by issuing an opinion), monitors the implementation of the TJTP and participates in the evaluation of the implementation of the TJTP. The SAŠA Development Agency also acted as the SAŠA Region Just Transition Centre (JTC SAŠA), which will be co-financed directly through technical assistance from the JTF (Razvojna agencija Savinjske regije, 2022[76])
← 2. Operations covered under the JTM include upskilling and reskilling of workers, job-search assistance and active inclusion of jobseeker programmes, support for productive investments in SMEs, the creation of new firms, research and innovation, environmental rehabilitation, clean energy, and the transformation of existing carbon-intensive installations when these investments lead to substantial emission cuts and job protection
← 3. Productive investments in large enterprises are only eligible when they are necessary for implementing the TJTP, when they contribute to the transition to a climate-neutral economy of the European Union by 2050 and to achieving related environmental targets, when their support is necessary for job creation in the identified territory and when they do not lead to relocation. The TJTPs for both SAŠA and Zasavska contain an indicative list of operations and enterprises to be supported, and a justification of the necessity of such support through a gap analysis demonstrating that the expected job losses would exceed the expected number of jobs created in the absence of the investment.
← 4. The working group’s final report reflects findings from 3 surveys of stakeholders and 23 position papers submitted by diverse actors on the current and future design and implementation of the just transition in Europe.
← 5. “Green jobs” are occupations with at least 10% green tasks, in other words, they contribute to environmental objectives, such as preserving the environment and reducing greenhouse gas emissions