This chapter utilises available data to highlight the key opportunities and challenges of two regions in transition: SAŠA and Zasavska. It benchmarks the performance of these regions across economic, social and environmental indicators against Slovenia, European Union coal regions and OECD mining regions. The chapter provides an evidence base to inform the following chapters of this report, guiding these two regions through their just transition from past or imminent coal-mine closures.
Mining Regions and Cities in SAŠA and Zasavska, Slovenia
A Regional Approach for a Just Transition Away from Coal
Abstract
The Zasavska region shows early signs of economic renewal, with rising entrepreneurship reflected in its 11.7% enterprise birth rate and 6.6% increase in business density, both above national trends. Demographically, past population decline has also stabilised over the past decade. However, the region’s economy still struggles to recover from the decline of the coal industry, with gross domestic product (GDP) per capita less than half the national average and among the lowest in Slovenia.
Unemployment remains one of the highest in the country (4.7%), and over half of employed residents commute outside the region. While the population decline has stabilised, ageing and outmigration continue, and tertiary attainment (18%) lags the national average (22%). Health outcomes also trail behind Slovenia’s averages, with limited healthcare capacity and shorter life expectancy, though mental health indicators are stronger. Environmentally, Zasavska has made remarkable progress since the coal phase-out, cutting emissions to 6.9 tonnes per capita, which is below national levels. However, the region faces acute drought risk, affecting 97% of its territory in 2022, and ongoing landslides.
SAŠA stands out for its relatively strong economic and demographic performance, with low unemployment (4.0%), steady population growth (3.3% since 2015) and strong net migration rates that exceed the national average by 44.0%. The region benefits from a more diversified economy than Zasavska, combining manufacturing, logistics and tourism, and boasts higher tertiary attainment (8.2 graduates per 1 000 people), supporting a more skilled workforce. However, GDP per capita remains 13% below the national average and about 25% below European Union (EU) coal regions, and female participation and earnings lag behind national levels.
Environmentally, SAŠA faces significant challenges. Ongoing operations at the Velenje mine and Šoštanj power plant (TEŠ) drive emissions to 18.8 tonnes per capita, which is among the highest in Slovenia, and contribute to high industrial water use. Additionally, as Slovenia faces climate vulnerability due to extreme floods, the subregion suffers from infrastructure damage and sectoral impacts (particularly on agriculture and tourism). Despite these pressures, SAŠA maintains extensive green space (92%) and lower drought exposure than Zasavska, positioning it as a productive but environmentally burdened region in transition.
The following key takeaways provide a high-level snapshot of the performance of SAŠA and Zasavska across economic, social and environmental indicators. The remainder of the chapter will expand on this performance, providing more in-depth analysis.
Economic performance
GDP per capita in SAŠA and Zasavska lags behind national and international averages. As of 2023, Zasavska’s GDP per capita was less than half Slovenia’s average and also half the average GDP of EU coal regions. While data on SAŠA’s GDP per capita are unavailable, its larger Territorial Level 3 (TL3) region Savinjska had a GDP per capita that was 13% below Slovenia’s average and about 25% below the average of EU coal regions. The gap is even larger when compared to 50 OECD mining regions, with Zasavska’s GDP per capita nearly 80% lower and Savinjska’s 65% below the benchmark.
Despite steady growth, median gross income1 in SAŠA is lower than the national level, with Zasavska remaining persistently below the Slovenian average. Both regions show a steady increase in median gross income over 2016-2023 (63% for Zasavska and 58% for SAŠA), which is on par with or close to the national average (63%). However, SAŠA’s median income moved from 3% above the national average in 2016 to marginally below the national average (1% below) in 2023, and the absolute gap between Zasavska and Slovenia’s median income has not improved over time.
SAŠA’s unemployment rate stood at 4.0% in 2024, only slightly above the national average (3.7%), yet below the average across EU coal regions (8.0%). However, the region faces a declining workforce. Over the past decade, the share of working-age population fell by 5.9 percentage points (p.p.) in Zasavska and 5.6 p.p. in SAŠA. These declines exceed the national average (-5.3 p.p.) and are notably steeper than the decreases observed in OECD mining regions (-1.0 p.p.) and EU coal region benchmarks (-4.0 p.p.).
Zasavska records a lower unemployment rate (4.7% in 2024) than the average in EU coal regions (8.0%), yet it ranks as one of the highest unemployment rates in the country. Zasavska’s labour market presents persistent challenges compared to national standards, with a high rate of labour commuting daily. Over half of employed residents work outside the region, a trend which evolved after the closure of coal operations in the 1990s.
Zasavska and SAŠA face a shrinking labour force and growing ageing pressures, with a relatively older and highly specialised coal workforce in SAŠA, and outmigration in Zasavska. While youth dependency grew between 2015 and 2022, it has since declined in both SAŠA and Zasavska, while ageing is accelerating. Both areas now exceed 20 elderly people per 100 working-age adults, which is 50% above the average in OECD mining regions. Adapting to an ageing population and retaining the youth population is therefore a pressing priority.
In both SAŠA and Zasavska, women’s role in the labour market is limited both in terms of participation and income, and is worsening over time. The share of female participation in the workforce is higher in Zasavska (45.5%) than in SAŠA (44.7%) and Slovenia overall (43.4%), but women in Zasavska earn on average around 10% less than men, compared to 5% less nationally. Data on earnings for women are not available for SAŠA.
Business activity in SAŠA and Zasavska remains below national levels, but recent trends point to a strengthening entrepreneurial activity. In 2023, Zasavska had 77.2 businesses and SAŠA 87.3 businesses per 1 000 people, both lagging the national average (108.2 businesses). The enterprise survival rate in Zasavska region in 2022 was slightly lower than the national rate. Yet Zasavska, with an 11.7% enterprise birth rate, outpaced the country in new business formation and showed a 6.6% rise in business density, signalling early signs of economic renewal.
Social performance
SAŠA’s relatively strong population growth is sustained through net migration. Between 2015 and 2025, SAŠA has experienced population growth on par with the national average (3.3%) and higher than OECD mining regions (2.7%) and EU coal regions (0.1%). SAŠA’s strong demographic performance is largely a result of strong net migration. In 2023, for instance, the net migration in SAŠA was 7.8 migrants per 1 000 inhabitants, 44% higher than the national average (5.4 migrants per 1 000 inhabitants).
Despite Zasavska‘s population decline since 2000, it has stabilised over the past decade. Between 2000 and 2023, Zasavska experienced a population decline of 8.5%, owing to a combination of natural population decline and outmigration. The region has over 13 times fewer net migrants per capita than the national average. However, in 2020, the region recorded its first positive annual growth since 2000. Between 2015 and 2023, the population declined by 1.1%, a sharp improvement from the 7.0% decline between 2000 and 2014.
Zasavska shows strong secondary but low tertiary attainment, explained by its industrial legacy and limited university uptake, while SAŠA demonstrates strong tertiary education levels.
Zasavska has strong secondary attainment but persistent tertiary underperformance, reflecting its coal-based legacy. In 2024, almost half of Zasavska’s population held secondary school certificates, above the national average, driven by vocational training linked to its industrial past. Yet tertiary attainment remains low at 18%, with little convergence over time to the national average (22%). This is likely due to weak demand for high-skill workers and youth outmigration.
SAŠA outperformed Zasavska with more tertiary education graduates per 1 000 people. In 2024, SAŠA had 8.2 tertiary graduates per 1 000 people, higher than Zasavska (6.8 tertiary graduates per 1 000 people) and the broader region of Savinjska (7.8 tertiary graduates). This highlights a more diversified economic structure, as SAŠA is home to a mix of manufacturing and logistics sectors, along with a growing tourism sector, alongside the coal industry. SAŠA therefore provides opportunities in more advanced professions, which provide greater employment opportunities for tertiary-educated workers.
Zasavska lags national levels in physical health and healthcare provision but reports better mental health outcomes, with lower depression rates than the national average.
Zasavska performs consistently worse than the Slovenian average on physical health indicators, with life expectancy a year less than the national life expectancy. The region’s healthcare provision is also underperforming, with almost 50% fewer hospital beds per capita than the Slovenian average. This likely contributes to Zasavska’s underperformance in terms of healthy life expectancy at birth, which is ten years lower than the national average.
Despite performing worse on physical health indicators, Zasavska performs better on mental health indicators, with lower rates of depression (6.2%) than the Slovenian average (7.5%) (National Institute of Public Health Slovenia, 2019[1]).
Environmental performance
As environmental indicators in Slovenia are only available at the statistical region level, data for Savinjska are used as a proxy for SAŠA. While this may not fully capture localised conditions, it provides the best available basis for regional and international comparison.
Zasavska has made significant environmental progress following the coal phase-out. Since the closure of the Trbovlje-Hrastnik mine in 2000 and the Trbovlje thermal power plant in 2014, Zasavska’s greenhouse gas (GHG) emissions have dropped substantially. In 2023, Zasavska GHG emissions per capita were 6.9 tonnes, outperforming Savinjska (used here as a proxy for SAŠA) (18.8 tonnes) and the national average (7.2 tonnes).
Ongoing coal activity in SAŠA drives substantially higher Greenhouse Gas (GHG) emissions. The Velenje coal mine and TEŠ thermal power plant continue to contribute to elevated emissions, with the power sector accounting for 52.4% of GHG emissions in Savinjska in 2023. In absolute terms, Savinjska produced 4.9 million tonnes of carbon dioxide-equivalent (tCO₂-e) in 2023, more than ten times the volume of Zasavska (420 000 tCO₂-e).
Mining-induced land degradation remains a major challenge in both regions. Despite high green-area shares (96.9% in Zasavska and 91.9% in Savinjska, both above the national average of 88.9%), land subsidence remains a persistent issue. Although restoration efforts have taken place, subsidence in Zasavska affects nearly 2 000 hectares, or 10% of the Zagorje ob Savi municipality. In SAŠA, ground subsidence of up to 12 metres has resulted in the formation of three lakes near the Velenje mine, with subsidence expected to continue for 15 to 20 years after mine closure.
Water-related environmental challenges diverge across the two regions. In 2024, Zasavska generated just under 70 cubic metres (m³) of wastewater per capita, far below Slovenia’s average of 113 m³ and Savinjska’s 160 m³. This low figure reflects limited economic activity, rather than water efficiency. Meanwhile, Savinjska’s high industrial water use is largely driven by ongoing operations at the Velenje coal mine and TEŠ thermal power plant, placing increasing pressure on water systems and regulatory capacity.
Zasavska and SAŠA face extreme climate vulnerability, especially from drought and flooding. In 2022, 97.2% of land in Zasavska was impacted by drought, the highest share of any EU region, compared to 62.7% in Savinjska and 51.7% in Slovenia. This is largely due to its mountainous terrain, microclimate and limited water retention infrastructure. These conditions increase risks such as biodiversity loss, reduced groundwater levels and wildfires, while also driving up water-management costs and exacerbating community stress. In SAŠA, severe floods in 2023 caused significant damage to infrastructure, and have impacted sectors such as agriculture and tourism.
Disclaimer: This chapter focuses on two mining regions in Slovenia, the TL3 regions of Zasavaska and SAŠA. SAŠA is recognised as a subregion in Slovenia and comprises ten municipalities. The analysis in the chapter aggregates data, when available, from the ten municipalities of the SAŠA subregion. However, when data at the municipal level are not available, the analysis estimates the data from the larger statistical TL3 region of Savinjska as a proxy for the performance of SAŠA. This analysis recognises that this may not fully capture localised conditions, but provides the best available basis for regional and international comparison. Zasavska, on the other hand, is an official statistical region within Slovenia, providing more accessible data for this specific region without the need for a proxy.
The coal regions of SAŠA and Zasavska show socio-economic divergence arising from different coal transition timelines and trajectories. SAŠA still benefits economically from an active coal sector and related industrial activity, while Zasavska has endured decades of economic decline following early closures of mines and thermal plants starting in the 1990s. This divergence is reflected in key economic indicators. While data are unavailable for SAŠA specifically, GDP per capita in the broader region of Savinjska ranked third in the country in 2023 at EUR 26 110. By contrast, Zasavska's GDP per capita was the lowest nationally (EUR 16 456), standing at less than half Slovenia’s average and nearly 80% below the average in OECD mining regions. Likewise, Zasavska records one of the highest unemployment rates in the country (4.7%), while SAŠA’s unemployment rate (4.0%) remains just above the national average (3.7%).
Despite SAŠA’s current economic advantage, both regions remain below national and international productivity benchmarks, and face persistent structural challenges linked to economic dependence, demographic pressures and labour-market vulnerabilities. Productivity remains low. The industrial base, especially in SAŠA, is highly concentrated, with limited integration into high-value supply chains or local entrepreneurship ecosystems. Both regions have a rapidly ageing workforce, with over 20% of their population aged over 65. Zasavska in particular has faced demographic challenges, with lower natural population growth and net immigration than the national average, and half of its workers commuting daily to work in another region.
Despite the challenges stemming from coal-industry closures, including economic stagnation in Zasavska and imminent job losses in SAŠA, both regions possess tangible opportunities for renewal. They are both rich in natural assets, with over 90% green-area coverage (using Savinjska as a proxy for SAŠA), offering significant potential for sustainable tourism. SAŠA and Zasavska are also diversifying, utilising funding from the Just Transition Fund (JTF) to invest in clean-tech innovation initiatives. Zasavska has seen a slowdown in population decline over the past decade, with its first positive annual growth since 2000 recorded in 2020. SAŠA, for its part, remains on par with the national average for population growth, signalling demographic stability and the potential for greater regional resilience moving forward.
This chapter conducts a deeper analysis of the economic, social and environmental performance of SAŠA and Zasavska. It compares this performance with national averages and the benchmarks of OECD mining regions and EU coal regions, to provide a comprehensive understanding of each region’s varied position in the just transition of Slovenia.
While mines are typically located in specific areas, their economic, social and environmental impacts often extend across local communities, involving broader functional labour markets and regional economies. Subnational government authorities play a critical role in promoting synergies among multiple communities and municipalities by co-ordinating investments, managing local labour markets, promoting shared protection of natural assets, and bridging urban-rural linkages to achieve economies of scale and improved local well-being. Assessing the regional impacts of mining requires national and international comparisons to understand its main challenges and assets. This chapter undertakes benchmarking of the performance of the SAŠA and Zasavska regions against Slovenia, OECD mining regions and EU coal regions.
The OECD collects comparable data at two regional levels, with Territorial Level 2 (TL2) representing the first administrative tier of subnational government (e.g. Eastern and Western Slovenia) and Territorial Level 3 (TL3) representing smaller regions that make up each TL2 region (e.g. statistical regions in Slovenia, for example Savinjska and Zasavska). These classifications enable drawing statistical comparisons at an international level.
SAŠA is a subregion in Slovenia comprising ten municipalities. This report refers to it as a ‘subregion.’ Where possible, data for SAŠA are calculated by aggregating the data from the ten municipalities. However, data at the municipal level can be limited. In some areas, therefore, this chapter uses the statistical region (TL3 or NUTS 3) of Savinjska as a proxy for the performance of SAŠA (especially on environmental indicators), recognising this may not fully capture localised conditions but provides the best available basis for regional and international comparison. Zasavska, on the other hand, is an official statistical region within Slovenia corresponding to the TL3 level, allowing easier access to and collection of data for this specific region without the need for a proxy.
Consequently, the analysis undertaken in this study to benchmark trends and the performance of these regions domestically and internationally proceeds as follows:
Slovenia: data are collected from official sources on the national average performance of Slovenia across a range of indicators.
OECD mining regions benchmark: the OECD Mining Regions Toolkit (OECD, 2022[2]) identifies indicators across economic, social and environmental dimensions to better understand the effects of mining on regional development across 50 mining regions in the OECD (see the methodology for identifying “mining regions” in Annex A). Where possible, this toolkit is used to compare the performance of SAŠA and Zasavska against other TL3 mining regions across OECD countries. It is also important to note that OECD mining regions benchmark includes non-coal mining areas, representing places with high production value materials other than coal. Nevertheless, this benchmark still provides an important international comparison between regions specialised in mining, which often experience similar opportunities and challenges regardless of the metal or mineral being mined.
EU coal regions: to benchmark SAŠA and Zasavska against comparable regions, this chapter has created an EU coal regions benchmark, considering average performance against a range of indicators across 10 regions in the European Union. These regions are TL3 level regions which employed at least 100 people in coal operations between 1980 and 2024, and which at some point held one of the highest shares of coal employment in their respective countries. The list mixes active operations with those that have closed since 1980 or may still be generating coal-based electricity. For the complete list of regions and more information, see Annex B.
The SAŠA (Savinjsko-šaleška) and Zasavska regions are located in central and north-eastern Slovenia. The SAŠA region, which is administratively part of the broader Savinjska region, comprises the ten municipalities of Gornji Grad, Solčava, Rečica ob Savinji, Ljubno, Luče, Nazarje, Šmartno ob Paki, Mozirje, Šoštan and Velenje (Figure 2.1), which serves as the region’s industrial and economic centre, due to its legacy in coal mining, and Šoštanj, the hub for energy production. The Zasavska region, the smallest region in Slovenia by area and population (Republic of Slovenia Statistical Office, 2025[3]), is composed of four municipalities: Hrastnik, Litija, Trbovlje and Zagorje ob Savi (Figure 2.2). It is located along the narrow Sava River valley and shares with SAŠA a significant legacy of coal mining.
Regional development in both regions is managed by regional development agencies, namely, Regional Development Agency Savinjska (RDA Savinjska) and Development Agency SAŠA (DA SAŠA) in SAŠA, and RDA Zasavje in the Zasavska region. These work with local municipalities, the Ministry of Cohesion and Regional Development, and other national stakeholders to manage structural change and transition-related investments (Regionalna Razvojna Agencija Zasavje, 2025[6]). Slovenia’s Integrated National Energy and Climate Plan and National Strategy to Phase out Coal (2022) commit to phasing out coal by 2033, in line with EU decarbonisation targets (European Commission, 2020[7]). This has drastically defined economic, social and environmental activity in both regions, yet on different timeframes: Zasavska has already undergone mine and thermal plant closures, and SAŠA still has active operations. To support the transition, both SAŠA and Zasavska are included in Slovenia’s national just transition planning framework, and are beneficiaries of EU support under the JTF (European Commission, 2023).
Coal mining in SAŠA and Zasavska has shaped regional identities, contributing to economic prosperity but also dependence
Both SAŠA and Zasavska have considerable coal-mining legacies that have shaped their economic, spatial and social fabric. With around 150 years of mining tradition in SAŠA and 270 years in Zasavska, this industry has come to define many aspects of life, providing economic stability and a sense of pride to residents of these regions (Coal Heritage Project, 2023[8]); (Zasavje Regional Agency, 2020[9]).
Key existing and past coal-sector activities include:
Zasavska: the region underwent coal-mine closures beginning in 1994 with the Act on the Provision of Funds for the Closure of the Zagorje, Senovo and Kanižarica Brown Coal Mines. This was followed by further closure measures after 2000, including the Act on the Gradual Closure of the Trbovlje-Hrastnik Mine and the Economic Development Restructuring of the Region, which provided the basis for the closure (2000-2024) and the region’s developmental restructuring (2000-2006). In 2014, the Trbovlje thermal power plant ceased operations. By 2020, the necessary closure and remediation works were completed (European Commission Directorate-General for Energy, 2024[10]). These closures have had significant economic impacts on Zasavska, with the region shrinking to approximately half of Slovenia’s average GDP per capita since mine closures (European Commission, 2020[11]) and 5 000 jobs lost in the sector between 2000 and 2019 (Zasavje Regional Development Agency, 2021[12]).
SAŠA: the Velenje coal mine and TEŠ thermal power plant will officially remain in operation in SAŠA until 2033, with the closure expected to be completed by 2045 (Figure 2.3). In 2023, the Velenje mine produced 2.44 million tonnes of lignite, with one of the thickest coal layers in the world (Global Energy Monitor, 2023[13]). Both operations are economically important in the region, generating EUR 723.9 million in total revenues in 2023, with TEŠ accounting for 66% and the coal mine 34% of the total amount. Their net sales revenue reached EUR 659.8 million, demonstrating their financial significance. These facilities directly employ 2 177 workers, with the vast majority (1 875 workers, or 86%) working at the coal mine and 301 workers (14%) employed at TEŠ (HSE group, 2024[14]). Beyond direct employment, these industries also sustain local businesses through supply chains and generate significant fiscal revenues for municipalities like Velenje and Šoštanj, supporting public services and infrastructure investments (European Union Coal Heritage Project, 2023[15]). Despite their historic economic contributions to SAŠA, the TEŠ thermal power plant and Velenje mine envisage EUR 2 billion in operating losses before 2033, highlighting not only an environmental imperative for closure but also an economic one (Balkan Green Energy News, 2024[16]).
While coal mining and thermal energy production have contributed to economic prosperity in both regions, reliance on this single sector has generated economic dependence. This dependence poses significant challenges, including concentrated labour markets, limited entrepreneurship, and a narrowly trained workforce that negatively impacts economic and social outcomes. It is also intergenerational, with mining often seen as a cultural identity and primary path for local employment, reinforcing resistance to retraining and limiting social mobility.
In Zasavska, the coal phase-out (2014) occurred without a sufficient long-term replacement of coal mining as a major employer. This has created persistent economic underperformance, population loss and social pressures. However, it has also led to improved environmental outcomes across the region. While currently more prosperous, SAŠA is also on the brink of a similar structural shock, with its coal phase-out period expected to be completed in 2033. While SAŠA has the advantage of foresight and planning, without sufficient economic restructuring and replacement of this major employer, the region imminently faces the same challenges as Zasavska. Later analysis in this chapter will examine the economic, social and environmental performance of both regions in the context of past and planned coal-mine and thermal power-plant closures.
Contrasting transition trajectories reveal uneven economic and demographic outcomes in SAŠA and Zasavska
The contrasting experiences of SAŠA and Zasavska illustrate how the timing and governance of coal transitions shape regional resilience. SAŠA, which still operates an active mine and thermal power plant, maintains stronger economic and labour-market indicators, with Savinjska’s GDP per capita (used here as a proxy for SAŠA) among the highest in Slovenia (EUR 26 109 in 2023) and low unemployment around 4%. In contrast, Zasavska, where the coal industry closed by 2014, has endured long-term economic scarring, with the lowest regional GDP (EUR 16 500) and a population decline of 8.5% since 2000. Zasavska’s early and abrupt transition led to the loss of 5 125 coal jobs (RDA Zasavje, 2025[17]) and a peak unemployment rate nearing 5%, the second-lowest regional performance in Slovenia (Table 2.1). SAŠA still faces this risk as it approaches its 2033 closure. Demographic pressures are visible in both regions but more acute in Zasavska, which has an older population and longstanding youth outmigration.
In advancing the just transition, Zasavska shows promise in clean tech and tourism, while SAŠA prepares for industrial repurposing and innovation-led diversification
Zasavska and SAŠA illustrate how post-coal regions can leverage natural assets, cultural heritage and innovation capacity to drive economic renewal, albeit from different transition timelines and institutional starting points. While both regions face legacy challenges from their coal pasts, their development paths highlight distinct opportunities for place-based diversification outside the coal sector.
Zasavska is advancing activities in clean-tech innovation. Funded by the JTF, The National Institute of Chemistry’s Centre for Development, Demonstration and Training for Carbon-Free Technologies anchors this shift. It currently employs 25-30 people and trains over 70 engineers, but is planning to expand (National Institute of Chemistry, 2025[23]). The centre not only supports local employment and upskilling, but also aligns Zasavska with national and EU-level circular economy and climate goals. With manufacturing still contributing significantly to the regional economy, there is clear potential to pivot towards clean industrial production. Strategic proximity to Ljubljana (35 kilometres) enhances access to research institutions, funding instruments and innovation networks, supporting stronger collaboration and tech transfer. Combined, these assets position Zasavska to evolve from a post-coal recovery region into a node for innovation-led, low-carbon growth.
In addition to clean-tech innovation, Zasavska, which began its coal phase-out in the 1990s, is further along in redefining its economic identity. The region’s natural landscapes, including several Natura 2000 areas, offer strong potential for rural and nature-based tourism. With most past industrial activity concentrated in the valley, the surrounding mountains and trails, such as the Miners’ Hiking Trail, present opportunities to revalorise former industrial corridors into recreation and green economic infrastructure. Cultural sites, such as the Holy Mount (Zasavska Sveta Gora) and its Gothic-Baroque pilgrimage church, further enrich this offering, attracting visitors seeking lower-density destinations “off the beaten path,” which is a growing trend in global tourism (OECD, 2022[24]).
SAŠA, which still operates an active coal mine and thermal power plant, is at an earlier stage of transition, but still possesses several foundational assets for economic diversification. The Velenje Technological Park (financed with EUR 14.2million from the JTF as of 2025) plays a central role in the region’s emerging innovation ecosystem, offering 5 100 square metres (m²) of space to host startups and support technology commercialisation. There are also plans to transform the former thermal power plant into the Old Powerplant-Future Centre (with EUR 28.1 million from the JTF), a multipurpose innovation hub for startups (ages 0-3) (Municipality of Velenje, 2025[25]). Furthermore, the Ministry of Cohesion and Regional Development has approved funding for a project to develop the Pesje East business zone, with co-financing totalling EUR 2.1 million (Republic of Slovenia, 2025[26]); it has also approved over EUR 15 million for a project laboratory for biomass bio-refining research in Velenje (Republic of Slovenia, 2025[27]). Although still in development, these initiatives signal growing political and institutional momentum to reposition the region’s industrial infrastructure for long-term value creation.
Geographically, SAŠA faces pronounced environmental constraints, including land subsidence and limited developable land due to active mining (Ambrožič and Turk, 2003[28]). However, the wider Savinjska region encompasses wooded mountains, fertile valleys and hop-growing zones that could support agritourism and high-value food production. Achieving this potential will require co-ordinated investment in land rehabilitation, infrastructure and capacity-building for new sectors. As SAŠA prepares for the 2033 coal phase-out, activating these assets will be essential to mitigate future employment losses and secure a more resilient regional economy.
The following section outlines the economic, social and environmental performance of SAŠA and Zasavska across a range of indicators. As outlined in the key takeaways and the introduction, the socio-economic and environmental performance of these regions is shaped by distinct transition timelines. While SAŠA continues to derive socio-economic benefits from its still-active coal and industrial sectors, Zasavska has faced prolonged economic decline since the closure of its mines and thermal plants in 2014. Environmentally, while the Zasavska region suffers from flooding and landslides, it has performed well against national and international average across indicators such as GHG emissions per capita since the closure of coal activities. On the other hand, SAŠA (using Savinjska as a proxy) performs worse than Zasavska and Slovenia on environmental indicators, likely owing to its continued industrial activity.
Economic performance of SAŠA and Zasavska
This section examines why SAŠA and Zasavska continue to underperform economically, despite gradual post-coal progress. It highlights how labour migration, limited investment and reliance on low-productivity sectors constrain growth and incomes. Understanding these dynamics is key to designing policies that can diversify local economies, attract higher-value industries and ensure the benefits of national growth extend to Slovenia’s coal transition regions.
Labour migration and prevalence of low-productivity sectors contribute to economic underperformance in SAŠA and Zasavska
While SAŠA outperforms Zasavska on many economic indicators, such as income and unemployment, both regions frequently lag national and international comparisons. In 2023, the region had the lowest GDP per capita (EUR 16 456) in Slovenia, less than half the national figure (EUR 30 158) (Figure 2.4). The high level of daily commuting in Zasavska affects GDP per capita, with 53.1% of the working population commuting outside the region. Typically, residents travel to the capital, Ljubljana, and other economic hubs like Maribor for employment opportunities. As a result, economic activities and incomes are generated elsewhere, contributing to the significant difference in measured GDP per capita between Zasavska and the Osrednjeslovenska region, where Ljubljana is located.
Zasavska’s international competitiveness is limited. Foreign direct investment totals EUR 168 million (0.8% of the country’s total) and its annual goods exports are the lowest in the country (0.9% of the country’s total). Investment in research and development (R&D) represented 1.9% of regional GDP, the fourth-highest in the country, making up 1.3% of Slovenia’s total R&D expenditure. Zasavska’s labour market generally underperforms compared with other regions, with an employment rate of only 69.9%, the fourth-lowest in Slovenia, and an unemployment rate of 4.7%, among the country’s highest.
Economic activity within the region relies on medium-sized manufacturing and service sectors. Since the mine closure, employment has become more dispersed across a range of smaller and medium-sized enterprises (SMEs), without the replacement of a major employer. Although the scale of employment differs from the mining period, these activities reflect a gradual shift towards a post-mining economic structure. In 2024, average monthly net earnings were EUR 1 412 in Zasavska, which was EUR 114 below the national average (SiStat, 2024[29]). Despite this underperformance, Zasavska has shown slightly stronger relative improvement in GDP per capita over time (60.6% GDP growth between 2014 and 2023) compared to Savinjska (59.0% between 2014 and 2023), indicating some positive economic progress (Figure 2.4).
GDP data for SAŠA is unavailable, but data on the Savinjska region highlight economic underperformance in the broader region compared with national and international benchmarks. While GDP per capita in the Savinjska region was higher than in Zasavska, it was 13.4% lower than the average for Slovenia in 2023 (EUR 26 110) (Figure 2.4). This region also performed below international benchmarks on GDP per capita, with GDP per capita over 25% below EU coal regions in 2022. While the share of gross value added generated by industry in Savinjska in 2023 was the second-highest in the country (13.7%) (Slovenia Statistical Office, 2023[30]), this industrial base is largely made up of lower-productivity sectors, such as basic manufacturing and extractive industries, limiting GDP per capita (Eurostat, 2020[31]). Average monthly net earnings in SAŠA amounted to EUR 1 396 in 2024, approximately EUR 130 less than the national average, highlighting the region’s reliance on lower-paying sectors (Sistat, 2024[32]).
Note: OECD mining regions benchmark includes non-coal mining areas, representing places with high production value materials other than coal.
Source: (SiStat, 2023[33]).
Despite steady growth, median income in SAŠA has moved from above to below the national level, with Zasavska remaining persistently lower
Both regions show a steady increase in median gross income2 over 2016-2023 (63% in Zasavska and 58% in SAŠA%), which is relatively on par with the national average at 63%. SAŠA consistently outperforms Zasavska, with median incomes of EUR 17 357 and EUR 16 985 respectively in 2023 (Figure 2.5). However, while SAŠA’S median income remains consistently above that of Zasavska, it moved from 3% above the national average in 2016 to marginally (1%) below the national average in 2023. While nominal income levels in Zasavska are rising, the data reveal persistent structural disparities. For instance, although regional incomes grew at the same rate as national income between 2016 and 2023 (a 63% increase), the absolute gap between the national median income and Zasavska’s median income has failed to narrow (3.0% in 2016 and 2.8% in 2023) (Figure 2.5). This, paired with SAŠA’s worsening performance against the national average over time, reflects the regional concentration of higher-paying sectors (e.g. finance, information technology, public administration) in urban centres like Ljubljana, while SAŠA and Zasavska continue to rely more heavily on traditional and lower-wage industries such as manufacturing, mining and logistics, failing to benefit from economic gains made in the capital.
Note: Median gross income of income recipients refers to the middle value of gross income earned by individuals in Slovenia who receive income, meaning half of income recipients earn less than this amount and half earn more, before taxes and deductions.
Source: (SiStat, 2023[34]).
Labour-market and skill base
This section explores how labour-market structures and workforce demographic trends are shaping the future of work in SAŠA and Zasavska. While both regions maintain relatively low unemployment rates compared to international peers, they face deeper challenges of ageing populations, outmigration and limited reskilling opportunities. The legacy of coal has left the workforce highly specialised but poorly equipped for emerging sectors, risking job losses and underutilisation of local talent as the transition progresses. Understanding these dynamics is critical to designing place-based labour and training strategies that sustain employment, retain young people and build a future-ready workforce in Slovenia’s coal regions.
SAŠA and Zasavska outperform international benchmarks on unemployment, yet lower workforce participation suggests weaker economic engagement and labour underutilisation
The labour markets in both Zasavska and SAŠA have historically been shaped by employment in the coal sector. While this provided stable jobs at its peak, it also led to limited economic diversification and exposed both regions to structural vulnerabilities upon mine closures. In 2024, unemployment rates stood below international benchmarks, but with varied performance against the national average.
In SAŠA, 1 800 residents are directly employed in coal-related business activities, with the majority (1 200) working at the Velenje coal mine (European Commission, 2022[19]). A further 1 500 indirect jobs have been created by the sector through support activities, including subcontractors, suppliers (e.g. transport and maintenance firms) and local service providers, supported by the incomes of mine and thermal plant workers. The unemployment rate in SAŠA in 2024 was slightly above the national average (3.7%), yet below the unemployment rate of Zasavska and OECD mining regions (10.0%), and EU coal regions (7.6%) (Figure 2.6). This is likely largely explained by the prominence of coal industry-related employment, highlighting the significant economic consequences of mine and thermal plant closures and the important economic diversification activities needed in SAŠA region over the coming years.
Effective use of active labour-market policies in non-mining municipalities, such as Celje in the broader Savinjska region, helped ease unemployment within this larger region through training and wage subsidies (OECD, 2025[35]). This represents significant opportunities for the SAŠA municipalities, which could potentially replicate the economic success of surrounding municipalities within Savinjska that has occurred outside of mining, as it transitions away from coal-sector activities. Examples include the Savinjska region’s significant manufacturing base, which employed 33 000 people in 2021. However, these developments co-exist with demographic shifts that reduce the availability of labour over time. The working-age population in Savinjska has declined steadily: in SAŠA, it fell by 5.6 p.p. between 2010 and 2023, a steeper drop than in OECD mining regions (-1 p.p.) and EU coal regions (-4 p.p.).
Source: Source: (SiStat, 2024[36]); (SiStat, 2024[37]).
In Zasavska, labour-market conditions are largely shaped by longstanding commuting outside the region. In 2023, 53.1% of employed residents commuted outside the region (European Commission Directorate-General for Energy, 2024[10]). This is a legacy from the industrial decline: the closure of coal activities led to the loss of approximately 5 000 jobs between 2000 and 2019, with limited replacement by other large employers. In 2024, the unemployment rate was 4.7%, the second-highest in the country after Posavska (Figure 2.6) underscoring the region’s structural vulnerabilities. Nonetheless, the unemployment rate in Zasavska fell by 62.5% between 2016 and 2024, faster than the national average (-58.6%), pointing to the impact of targeted support measures and gradual economic diversification.
Despite recent improvements in employment indicators, the working-age population in Zasavska has declined more rapidly than the national average (Figure 2.7). Between 2010 and 2023, it dropped by 5.9 p.p., compared to 5.3 p.p. nationally. This suggests that the regional labour pool is narrowing. Fluctuations in the working-age population over the past decade further highlight the region’s sensitivity to external shocks, such as coal-sector restructuring and periods of low private-sector job creation. These dynamics will likely affect future labour availability and the capacity to match workforce demand as the transition progresses.
Source: (SiStat, 2024[38]).
Workforce gender parity in SAŠA and Zasavska
Neither SAŠA nor Zasavska has reached gender parity across the labour market. In SAŠA, female participation in the workforce in 2024 was 43.44%, lower than the national average (44.73%). Female participation also marginally decreased in this region over the last decade, from 44.0% in 2014 to 43.4% in 2024. In Zasavska however, female participation in the workforce (45.5%) is higher than the national average (44.73%), although it has also decreased since 2014, when it stood at 46.9% (Figure 2.8).
Source: (SiStat, 2024[38]).
In 2022, average monthly earnings in Zasavska were around 10% lower for women than men. Across the region, women earned 91.1% (EUR 1 674) of what men earned (EUR 1 838). This performance is worse than the national average, where women earn 5% less than men. These data are not available for SAŠA.
An ageing workforce and a lack of reskilling presents challenges for SAŠA and Zasavska
The workforce in the coal sector can be highly specialised, with skilled technicians, engineers or heavy-equipment operators. These skills are often not immediately transferable to other industries outside mining or thermal energy (Greenspon and Raimi, 2024[39]). Furthermore, lower-skilled and older workers may also struggle to find new employment. These realities reinforce the need for targeted reskilling programmes during the mine and thermal-plant closure processes. These closures created challenges for Zasavska’s workforce and pose future challenges for those in SAŠA who are currently employed in the mining sector. As the next chapters will explore, SAŠA currently lacks a comprehensive re-employment or reskilling plan for its coal workforce. The national government plans to establish a “carbon-free technologies training hub” in SAŠA to address this, but as of 2025, this initiative was still in development.
A significant share of coal-sector employees are also mid-career or older, with decades of experience. Without targeted reskilling and adult-training support, these workers face a high risk of long-term unemployment or early exit from the labour force once the phase-out occurs. Both SAŠA and Zasavska have experienced increasing proportions of the population over 65 years of age over the past decade (Figure 2.9), increasing by 5.8 p.p.in SAŠA and 4.8 p.p. in Zasavska. In 2024, over 20% of the population in both areas was over 65 years of age. This is not, however, an issue that is unique to these regions. In 2024, 22.14% of the population of Slovenia was over 65 years old, up 4.28 p.p. since 2015. This highlights a clear ageing trend, placing increasing pressure on social support systems and the local labour market.
Source: (SiStat, 2025[40]).
Youth dependency ratios in Slovenia and its coal regions have followed a similar trajectory, rising steadily between 2015 and 2022 before beginning to decline. SAŠA has consistently recorded the highest ratios, peaking at nearly 24%, signalling both greater short-term pressure on education and family services, and stronger potential for future labour-force renewal if young people remain in the region (Figure 2.10). By contrast, Zasavska has shown the lowest ratios, declining more sharply after 2021, suggesting demographic ageing and continued outmigration of young families. These diverging patterns highlight the need for place-based strategies. In SAŠA, these should focus on ensuring sufficient services and skill pathways to retain youth. In Zasavska, strategies should tackle the long-term sustainability of the workforce and ageing pressures.
Source: (SiStat, 2025[40]).
The business ecosystem in SAŠA and Zasavska performs below national averages, yet has improved over time
This section examines the evolving business landscape in SAŠA and Zasavska. While both regions still lag behind national averages in business density and survival rates, recent growth in new enterprises signals gradual progress towards diversification and entrepreneurship. Understanding these trends helps identify how targeted support, such as incubators and local investment, can strengthen the business ecosystem, reduce dependence on the coal industry and help rebuild after closure.
Business activity in both SAŠA and Zasavska performs below national averages across a range of indicators, suggesting challenges in the business ecosystem and barriers to entrepreneurship. Yet an improved performance over time provides insight into increasing business activity in the regions. In 2022, SAŠA region had 5 452 enterprises (SiStat, 2023[41]), making up 2.4% of Slovenia’s businesses (SiStat, 2023[42]). As a smaller region, Zasavska had 4 405 enterprises (SiStat, 2023[42]), making up 1.9% of Slovenia’s businesses. While SAŠA had a higher business density3 (87.3 businesses per 1 000 people) than Zasavska (77.2 businesses per 1 000 people) in 2023, both regions lagged the national business density (108.2 businesses per 1 000 people). Furthermore, the survival rate of businesses4 across Zasavska in 2022 (53.4%) was also below the national average (56.6%) (SiStat, 2022[43]), although only marginally (these data are not available for SAŠA). This reflects the unique financial and support constraints facing entrepreneurs in these regions, with increased precarity from a reliance on and the closure of mining operations, and limited replacement industries.
Despite this, business density grew in both regions between 2022 and 2023, with a 3.3% increase in SAŠA and a 3.2% increase in Zasavska. The birth rate of enterprises in Zasavska in 2022 (11.7%) also surpassed the national average (11.2%) (SiStat, 2022[43]). This reflects the potential influence of targeted support measures such as business incubators to encourage entrepreneurship in these regions after the mine closures (further discussed in Chapter 3).
Demographic trends and outmigration
This section explores contrasting demographic trends in SAŠA and Zasavska. SAŠA has sustained steady population growth over the past decade, on par with national averages, largely driven by immigration linked to local job opportunities. In contrast, Zasavska continues to face population decline due to ageing, low birth rates and outmigration following industrial closures, yet this decline has stagnated over the last decade. Understanding these patterns is crucial as they reveal how economic opportunity, migration and ageing are shaping the long-term resilience and demographic stability of Slovenia’s coal regions.
SAŠA has demonstrated strong population growth compared with EU coal regions, with more people entering than existing the region over the last decade
In 2025, SAŠA had a population of 62 855 (Figure 2.11), which has consistently grown over the last decade (2015-2025) at the same rate as national population growth (3.3%) due to positive net migration and employment opportunities. Between 2015 and 2025, SAŠA had a population growth of 3.3%, which is above the average of OECD mining regions (2.7%) and EU coal regions and Zasavska, which experienced a population decline of -7.4% and -1.1% respectively (Figure 2.12).
The SAŠA region has benefited from more people migrating into the region than exiting over the past decade, contributing to a steady population increase. While a natural increase in population is marginally positive, migration is likely the main driver of this increase. In 2023, SAŠA saw a natural decrease in population of 1.6 per 1 000 inhabitants, highlighting an ageing population and a birth rate that is insufficient to sustain or grow the population naturally. Therefore, net positive migration into SAŠA, likely caused by industry employment opportunities in mining, manufacturing, construction and tourism, can explain the population growth over the past decade.
For instance, in 2023, net migration in this region was 7.8 migrants per 1 000 inhabitants, 44% higher than the national average (5.4 migrants per 1 000 inhabitants) (SiStat, 2023[44]). This suggests that the SAŠA region’s future demographic and economic stability may depend heavily on its continued ability to attract and retain migrants, particularly younger working-age individuals, to offset natural population decline and support local labour-market needs.
Source: (SiStat, 2025[45]).
While Zasavska’s population has declined since 2000, it has stabilised over the last decade
In 2025, the population in Zasavska was 57 083 people. The region experienced a population decline of 8.5% between 2000 and 2023, placing it 25 p.p. behind the growth of OECD mining regions (Figure 2.12). This is due to a combination of natural population decline and outmigration following the commencement of coal-industry closures in the 1990s. In 2023, the region had a comparatively low birth rate of 7.6 live births per 1 000 population, compared with 8.0 nationally. The region has also not been able to attract significant immigration, with only 0.4 migrants per 1 000 inhabitants, which was 13 times fewer net migrants per capita than the national average (5.4 migrants) (SiStat, 2024[29]).
The decline of the coal-mining industry has meant that the region has struggled to retain and attract residents, particularly young and working-age people, owing to limited employment opportunities and a less dynamic economy, especially in past coal-reliant municipalities such as Trbovlje (Box 2.1). This is also reflected in the higher ageing population in 2023 across Zasavska (23.3% of the population over 65 years old), compared with Slovenia (21.8%) and OECD mining regions (16.4%).
Despite this, Zasavska has experienced a slowdown in the population decline over the past decade, recording in 2020 the first positive annual population growth rate since 2000. Between 2015 and 2023, after the closure of the thermal plant, the average population change was -1.1%, far below the 7.0% reported between 2000 and 2014 (Figure 2.11). This slowdown suggests a possible stabilisation following earlier periods of sharp contraction. It may reflect the delayed effects of outmigration tapering off as the coal transition matures, combined with a gradual adjustment of the regional economy. However, without meaningful improvements in labour-market dynamism and demographic renewal, this stabilisation remains fragile and could reverse, particularly as the working-age population continues to shrink and ageing accelerates.
Source: (SiStat, 2024[46]).
In 1910, Trbovlje municipality in Zasavska region had become the fifth-largest settlement in Slovenia, with almost 9 000 inhabitants. In 1991, the town had grown to around 19 000 inhabitants. With the onset of mine closures in the 1990s, more than 5 125 well-paid jobs in the mines and mine-dependent industry were lost. The Trbovlje rate of unemployment soon became one of the highest in Slovenia. Outmigration from the municipality and region was high. Many locals wither moved to Ljubjana to live or began commuting to work. The population of Trbovlje consequently dropped to 16 000 by 2023, with over half the workforce of Zasavska working outside the region.
Social performance (education, healthcare, life satisfaction)
This section highlights the social foundations underpinning a just and lasting transition in SAŠA and Zasavska. Education, health and well-being outcomes reveal how people in these regions experience the impacts of economic change, and how the communities are prepared to adapt. Understanding these dimensions is essential: successful transitions depend not only on jobs and investment, but also on human capital, access to quality services and community resilience. By examining disparities in education, healthcare and life satisfaction, this section highlights gaps where policy efforts can strengthen regional capacity to participate in and benefit from transformation.
Zasavska has strong secondary attainment, but tertiary stagnation underscores the legacy of the coal-based economy and spatial disadvantage
Between 2014 and 2024, Zasavska consistently outperformed the Slovenian national average in secondary education attainment, reaching 46.7% in 2024 compared to 44.5% nationally (Figure 2.13). This reflects a strong base of technically skilled labour, rooted in the region’s industrial past and in education systems tailored to mining and energy production, indicating a high share of vocational secondary students. However, this advantage does not extend to tertiary education. In 2024, Zasavska’s tertiary attainment rate (18.2%), while improving modestly, remained below the national average (22.4%) (Figure 2.14).
This gap has remained relatively constant over the decade, indicating a lack of convergence despite national strategies to promote the accessibility of higher education.
Several structural factors may explain this pattern:
Post-industrial transition effects: the closure of coal mines and the gradual winding down of the TEŠ thermal plant have led to economic stagnation in parts of Zasavska. This may discourage youth from pursuing longer-term academic paths because of limited local employment opportunities requiring tertiary credentials.
Geographic isolation and accessibility: Zasavska is Slovenia’s smallest and most centralised statistical region and suffers from poor connectivity to major academic centres like Ljubljana or Maribor, potentially deterring tertiary enrolment or leading to permanent outmigration of students.
Institutional presence: the region lacks a major university or higher education hub, reducing exposure to knowledge-based sectors and pathways. This contributes to a cycle of low innovation absorption, low-skilled employment and weak incentives for tertiary enrolment.
Skill structure: the combination of high secondary but low tertiary attainment indicates that Zasavska’s workforce has a solid foundation for technical and practical occupations, though further opportunities for higher education could help strengthen its capacity for technological innovation and support a just transition.
Source: (SiStat, 2024[48]).
Source: (SiStat, 2024[48]).
SAŠA demonstrates a modest but steady convergence towards national levels in tertiary education, reflecting its more diversified economic base
SAŠA exhibits slightly lower rates of tertiary graduate intensity, with 8.2 tertiary graduates per 1 000 people in 2024 compared to the national average of 8.3. However, SAŠA outperforms Zasavska (6.8 tertiary graduates per 1 000 people in 2024) and the broader region of Savinjska (7.8 tertiary graduates per 1 000 people) (Figure 2.15).
This trajectory aligns with the region’s more diversified economic structure. SAŠA is home to a mix of manufacturing, logistics and growing tourism sectors, alongside the coal industry. These sectors provide opportunities in more advanced career professions, with greater employment opportunities for tertiary-educated workers. SAŠA also benefits from stronger transport links and proximity to larger urban centres and universities. Notably, the region’s broader labour-market demand is beginning to shift towards higher-value-added activities, including export-oriented industries, services and digitalisation, creating greater incentives for educational progression beyond the secondary level. The regional economy’s relative diversification is likely a driver of this educational convergence.
Source: (SiStat, 2024[49]).
Health and well-being
Zasavska region performs consistently worse than the national average across most physical health outcomes, yet shows a promising performance on some mental health indicators. This highlights the social consequences of sustained economic challenges following the decline of the coal-mining sector in this region. While data on SAŠA specifically are not available, data on the broader region of Savinjska highlight strong performance in this region across several health and well-being indicators, frequently outperforming national averages.
In 2023, both regions performed marginally below the national life expectancy (81.8 years), with average life expectancy standing at 81.4 years in Savinjska and 80.8 years in Zasavska. While Zasavska had the lowest life expectancy, the region had a higher increase in life expectancy between 2014 and 2023 (1.3%) compared with the national increase in life expectancy over the same period (1.2%). The mortality rate in both regions in 2023 was also higher than the national average, with Zasavska again performing worse than Savinjska (Figure 2.16). In terms of healthy life expectancy, Zasavska, with an expected number of healthy years of 56, performs considerably worse than the national average (67 years) and Savinjska (65 years) (Figure 2.17).
Source: (OECD, 2023[50]).
Differences in life expectancy between Zasavska, Savinjska and the national average can likely be explained by differences in the quality and accessibility of healthcare provision (Jaba, Balan and Robu, 2014[52]). For instance, Zasavska had 1.9 active physicians per 1 000 inhabitants in 2023, compared with 2.9 in Savinjska and 3.5 nationally (Figure 2.18). Across the country, Slovenia also had almost double the average amount of hospital beds available (4.1 per 1 000 inhabitants) than the Zasavska region (2.2 hospital beds per 1 000 inhabitants) (Figure 2.19). These disparities in healthcare infrastructure have significant implications for health outcomes. Lower physician density and limited hospital capacity can reduce timely access to preventative care, diagnostics and treatment, particularly for chronic and age-related conditions that require ongoing management (Kittipittayakorn, 2025[53]). In regions like Zasavska, this may contribute to lower life expectancy and higher mortality rates, by increasing the risk of untreated or late-diagnosed illnesses. Furthermore, reduced healthcare accessibility can disproportionately impact vulnerable populations, including the elderly and those with limited mobility or income, compounding health inequalities.
Source: (OECD, 2023[54]).
Source: (OECD, 2023[55]).
Despite experiencing relatively worse outcomes on physical health indicators, Zasavska outperforms both Savinjska and national averages across certain mental health dimensions. For instance, Zasavska had lower rates of depression prevalence across its population (6.2%) in 2022 compared to the national average (7.5%) and Savinjska (9.4%) (Figure 2.20). Furthermore, in 2022, 41% of the population in Zasavska reported feeling lonely at least a little of the time, compared with 46% in Savinjska and 44% nationally.
This relative strength in mental health and subjective well-being suggests that factors beyond healthcare infrastructure contribute meaningfully to quality of life. Stronger social cohesion, a slower pace of life, or more robust community and familial networks in Zasavska may buffer against poor mental health outcomes, even in the context of limited access to healthcare and economic challenges. Lower rates of loneliness and depression indicate a potential resilience within the population, possibly tied to cultural, environmental or community-level supports that promote emotional well-being and a sense of connection and community.
Environmental conditions and legacy issues
Mining and coal-related activity has heavily affected the natural environments of Zasavska and SAŠA. Even though Zasavska suffered from pollution through the lifespan of its mining industry, the mine closures in the 1990s have led to better environmental performance than both SAŠA and the national level across a range of indicators. Despite this, abandoned industrial buildings and underground mines have contributed to land subsidence and other ongoing impacts. In SAŠA, remedial measures for the cleaning of flue gases from TEŠ and after the closure of TEŠ5 and its replacement with TEŠ6, which has a significantly lower impact on the environment, have helped address some environmental damages. Despite this, using data from the broader Sasavjska, it is apparent that mining and the thermal power plant in the region have contributed to environmental outcomes that are worse than Zasavska’s and national averages on a range of indicators, highlighting the importance of the coal phase-out from an environmental perspective. Further analysis on air, land and water performance highlights this issue.
Coal phase-out has sharply reduced emissions in Zasavska, while SAŠA remains a major emitter due to ongoing coal activity
In the period before Zasavska’s coal phase, the most significant sources of air pollution in the region were emissions from the Trbovlje-Hrastnik mine, which closed in 2000, and the Trbovlje thermal power plant, which began closure in 2014. This created visible pollution in the area. This was exacerbated by the geography of Zasavska region, which has an unfavourable location in terms of pollutant dispersion, with most of the towns located in narrow valleys or basins. However, since the closure of the power plant and coal-mining operations, Zasavska’s GHG emissions have been significantly lower in absolute terms and per capita than the national average, with the industrial sector contributing the highest share of GHG emissions (59.8%) (Figure 2.21).
SAŠA still has ongoing coal-industry activity, contributing to considerably higher GHG emission, with the power sector contributing the highest share (52.4%) (using data from the broader Savinjska region as proxy) (Figure 2.21).
Source: (OECD, 2023[56]).
Savinjska performs considerably worse on GHG emissions than Zasavska and Slovenia. In absolute terms, Savinjska produced 4.9 million tCO₂‑e in 2023, compared with 420 000 tCO₂‑e in Zasavska and 15.9 tCO₂‑e in Slovenia (Figure 2.22). Savinjska has had considerably higher GHG emissions per capita (18.8 tCO₂‑e per person) than Zasavska (6.9 tCO₂‑e) and Slovenia (7.2 tCO₂‑e) (Figure 2.23). However, between 2019 and 2023, GHG emissions per capita decreased more rapidly in Savinjska (-34.8%) than in Zasavska (-8%) and nationally (-20%). They will continue to do so with the closure of the Velenje coal mine and thermal power plant, underscoring the importance of Slovenia’s coal phase-out.
Source: (OECD, 2023[56]).
Source: (OECD, 2023[56]).
Despite high green-area coverage, mining-related land disturbance and subsidence pose persistent environmental and economic challenges
The share of green area (area of land covered in vegetation or green space) across Savinjska (91.9%) and Zasavska (96.9%) is higher than the national average (88.9%) (Figure 2.24), contributing positively to environmental factors such as biodiversity conservation, air quality and water management. Nevertheless, both regions face considerable land-disturbance and subsidence challenges from mining and industrial activities, which not only impact the environment but also economic and social outcomes.
Note: Green-area refers to land covered in green spaces (such as parks) or vegetation (such as forests).
Source: (OECD, 2023[56]).
In Zasavska, land-disturbance impacts from the Zagorje mine are also still prevalent. Damage caused by subsidence impacts almost 2 000 hectares of land in the Zagorje ob Savi municipality (10% of the municipality), which covers the coal extraction area (Aquarius, 2008[57]). This creates environmental issues such as habitat loss, groundwater impacts and soil degradation. It also leads to significant economic challenges, as the region already has a limited amount of useable land. With the abandoned industrial infrastructure, valuable land cannot be repurposed for other economic activity. Furthermore, Zasavska region has experienced several landslides because of storms, resulting in the need to rehabilitate several road sections. The largest landslide in the region was in the Zagorje municipality on the Transverse Path-Road of Victory 16, above the bus station in Zagorje ob Savi. Fifteen facilities, and municipal and state infrastructure, are at risk. The remediation was estimated to cost around EUR 13.1 million (euros) (Zasavje.si, 2025[58]).
In SAŠA, land disturbance and subsidence from the Velenje coal mine is also a pressing issue. Subsidence effects in the Velenje area have resulted in the formation of three lakes, subsiding up to 12 metres. The ground is expected to continue subsiding for 15 to 20 years after the cessation of mining extraction (Termoelektrarna Šoštanj, 2009[59]), contributing to the gradual lowering of groundwater levels and reshaping the ecology of the region (Novak, 2018[60]). While the closure of coal facilities will create considerable improvements in subsidence issues and other environmental concerns in the region, it will also leave behind industrial sites and degraded land that requires substantial rehabilitation. Following the closure, the Velenje coal mine will undergo a structured rehabilitation process extending beyond 2045, which will be essential to ensure the environmental, social and economic vitality of this region. Despite the significant land disturbance caused by mining activity in SAŠA, mining is a low contributor to potentially contaminated sites (potential sources of pollution due to past or present activities) in Savinjska, where the SAŠA subregion is located. Data show that as of 2022, mining contributed to only 2 potentially contaminated sites in the region, compared to 28 from other industrial activities (University of Ljubjana, 2022[61]). Yet some regional stakeholders state that this environmental impact is in fact, wider. In Zasavska, mining has been the main source of pollution for 13 contaminated sites in the region (Figure 2.25).
Source: (University of Ljubjana, 2022[61]).
Zasavska faces acute climate-driven water stress, while SAŠA’s challenges stem from industrial water intensity
The environmental performance of Zasavska and SAŠA in regard to water reveals divergent trajectories shaped by their geography, legacy industries and climate vulnerability. Over 2015-2024, Zasavska consistently recorded the lowest levels of wastewater generated per capita among the two regions and the national average, reaching just under 70 m³ in 2024, compared to 113 m³ for Slovenia and approximately 160 m³ for Savinjska (Figure 2.26). While at first glance, this may suggest reduced water consumption or improved efficiency, the persistently low volumes in Zasavska more likely reflect structural economic stagnation, declining population and deindustrialisation following the closure of coal mines and associated industry. As such, low wastewater generation serves more as a proxy for reduced economic activity than for environmentally sustainable practices.
Source: (SiStat, 2024[62]).
By contrast, Savinjska (used here as a proxy for SAŠA) shows higher wastewater volumes per capita throughout the observed period, indicative of its more active and diversified industrial base. The continued operation of water-intensive assets, including the Velenje coal mine and the Šoštanj thermal power plant (TEŠ), contributes to this elevated usage. These installations, while still central to the regional economy, pose significant water-management challenges, particularly in the context of increasing climate pressures and EU decarbonisation objectives. Savinjska’s environmental water footprint underscores the need for strengthened regulation and infrastructure investments to mitigate pollution risks and ensure resource efficiency, particularly as the region moves towards transitioning from coal.
At the same time, Zasavska’s water-related environmental challenges are increasingly driven by exposure to climate extremes rather than industrial activity. In 2022, 97.2% of Zasavska’s land area was impacted by drought, the highest rate in the European Union, compared with 62.7% in Savinjska and 51.7% in Slovenia (Figure 2.27). This severe exposure is due to a combination of mountainous topography, microclimatic sensitivity and limited water retention infrastructure, which constrain the region’s ability to buffer against dry spells and heatwaves. The consequences are substantial. Environmentally, drought contributes to lower groundwater levels, biodiversity loss and increased wildfire risk. Economically, it raises water-management costs and exacerbates fragility in drought-sensitive sectors such as tourism. Socially, it imposes health risks, reduces quality of life and deepens community stress, particularly in ageing and economically disadvantaged populations.
In August 2023, Slovenia experienced significant floods causing EUR 10 billion in damages (Bezak et al., 2023[63]), which not only exacerbated Zasavska’s food exposure but also impacted the SAŠA subregion. As a result of the floods, the subregion experienced significant damages to infrastructure such as bridges and roads, with a strong impact on various sectors, particularly agriculture and tourism (Republic of Slovenia, 2025[64]). The recovery from the devastating floods and landslides is a vast and challenging process with reconstruction financed from the state budget, the Reconstruction Fund and grants from the EU Solidarity Fund (Republic of Slovenia, 2025[64]).
In both regions, water emerges as a key dimension of environmental resilience. In Savinjska, water management must navigate the twin pressures of legacy industrial intensity and future-oriented sustainability goals. In Zasavska, the priority lies in adapting to acute climate vulnerability and reversing the compounding effects of economic decline and environmental fragility. In this context, regional development and environmental policy must be better aligned to strengthen water infrastructure, improve monitoring systems and integrate climate adaptation into economic diversification strategies.
Source: (Eurostat, 2022[65]).
The contrasting experiences of SAŠA and Zasavska reveal how the timing and governance of the coal transitions fundamentally shape regional outcomes. SAŠA, which is still reliant on coal-based energy production, benefits from higher GDP, higher industrial output and positive migration trends. However, the region faces a critical inflection point as the 2033 coal phase-out approaches, with a highly concentrated industrial base and an ageing, specialised workforce posing risks to long-term resilience. Zasavska, by contrast, has already undergone a difficult post-coal adjustment following early mine closures in the 1990s. While this abrupt transition left deep economic scars, including the lowest GDP per capita in the country and persistent labour migration, it has also enabled the region to make notable progress in environmental recovery, business dynamism and clean-tech development.
Despite their different starting points, both regions face common structural challenges. Productivity lags national and international benchmarks, and income convergence with the national average has stalled. Demographic decline, particularly the rise in old-age dependency and low youth retention in the region, threatens the sustainability of local labour markets, although population decline has stabilised in Zasavska. Educational attainment has improved unevenly. Zasavska maintains strong secondary school outcomes but weak tertiary performance, while Savinjska shows steady convergence with national averages across both. Health outcomes also vary, with Zasavska underperforming on physical health indicators, but demonstrating stronger results on mental well-being.
Environmental conditions reflect each region’s stage in the transition. SAŠA continues to record high greenhouse gas emissions (18.8 tCO₂-e per capita in 2023) and faces challenges linked to subsidence and water intensity. Zasavska, though environmentally improved, remains vulnerable both to landslides due to storm weather and drought, with nearly all land (97.2%) affected by drought in 2022 (Eurostat, 2022[65]). These pressures call for place-specific environmental adaptation, particularly as both regions seek to repurpose former coal assets and attract investment in low-carbon industries.
Encouragingly, both regions are taking steps towards economic renewal and resilience. SAŠA is investing in the renovation of the district heating system, innovation centres and technology parks, while Zasavska has leveraged its proximity to Ljubljana and strong institutional capacity to lead in clean-tech demonstration and business formation. Both regions receive EU support from the JTF to implement their territorial Just Transition Plans. As part of Slovenia’s national Just Transition Plan, both regions have received EU support. Slovenia’s coal regions have been allocated EUR 258.7 million of EU funding for the 2021-2027 period, plus EUR 45.6 million in national co-financing.
By October 2025, 60% of JTF funds had been allocated decided to selected operations in Zasavska and 44% to SAŠA. Yet without sustained investment in skills, infrastructure and environmental remediation, these early gains risk stagnating. The success of Slovenia’s just transition will depend on ensuring that SAŠA and Zasavska are not only supported in managing the legacy of coal, but also empowered to build inclusive, innovation-led and climate-resilient futures.
The OECD Mining Regions Toolkit uses the following methodology to identify areas in OECD countries that should be classified as a “mining region”:
1. Identify the small regions in the OECD country (TL3): the OECD has more than 2 400 TL3 regions in its 38 member countries. The distribution of these regions by country is a mix of statistical and administrative boundaries that are at a geographically comparable scale and consistent with national classifications. Thus, the country’s segmentation into these territories is consistent to enable the cross-country analysis. The OECD territorial classification provides a list of all TL3 regions for OECD countries.
2. Define regional mining specialisation based on employment location quotients (LQ):. The degree of regional specialisation in mining is obtained by comparing the share of mining employment in the region with the share of mining employment in the country. An LQ value above 1 implies that the region is more specialised than its respective country. The employment specialisation in mining, based on LQ values, is ranked from highest to lowest. The threshold selected to categorise a mining region is an LQ above 1.5, so that a region is considered to be specialised if it exceeds 50% of the country’s mining specialisation. Applying this threshold to the sample of OECD TL3 regions, 360 OECD regions are 1.5 times more specialised in mining than their own country.
3. Make a final adjustment based on desk research: to build a geographically balanced benchmark and control by country effects of the LQ (e.g. countries highly specialised in mining with a relatively even geographical distribution of the activity), the methodology assigns the regions with a higher LQ than the benchmark by following the country’s weight in total OECD mining employment. In other words, the number of regions in the benchmark is in line with the share of the country’s mining employment in the total number of mining workers across the OECD. A desktop research process examines each selected region to ensure a good geographical balance in the benchmark (and avoid overrepresentation of a given country). As a result of this process, 50 mining regions constitute the OECD mining regional benchmark.
The EU coal regions benchmark comprises ten significant European regions which, between 1980 and 2024, employed at least 100 people in coal operations, and which at some point held one of the highest shares of coal employment in their respective countries. The list mixes active operations with those that have closed since 1980 or may be still generating coal-based electricity.
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← 1. Median gross income is the amount of income that lies in the middle of all income recipients’ earnings before taxes and deductions, with half earning less and half earning more.
← 2. Median gross income was chosen because it provides a robust, comparable and timely measure of the typical individual’s earnings in the labour market, avoiding distortions from outliers.
← 3. Business density is the number of businesses per 1000 people.
← 4. Survival rate is calculated by the proportion of businesses born in one year that are still active in the following year.