Bulgaria is poised to receive between €1.178 billion and €1.3 billion from the European Union’s Just Transition Fund, a key mechanism designed to support regions most affected by the phase-out of coal and other carbon-intensive industries. The funding will primarily target areas historically dependent on mining and thermal power generation, including Stara Zagora, Pernik and Kyustendil.
The Just Transition Fund is part of the EU’s broader climate policy framework and aims to mitigate the economic and social impacts of decarbonization. By 2030, coal mines, coal-fired power plants, and related sectors are expected to close, posing significant risks for employment, regional development, and social cohesion. The fund seeks to offset these challenges by financing new economic activities, workforce retraining, and environmental rehabilitation in the hardest-hit regions. Bulgaria is among the largest beneficiaries of the fund in the EU, reflecting the country’s heavy reliance on coal. For decades, regions like the Maritsa Basin, Pernik, Stara Zagora, and Kyustendil have depended on lignite mining and electricity production for thousands of jobs and local budgets. As the EU accelerates decarbonization policies, these regions now face job losses, reduced investment, and potential long-term demographic decline.
Under Bulgaria’s Territorial Just Transition Plan, the funds will be directed toward diversifying local economies and reducing dependence on fossil fuels. Key priorities include support for small and medium-sized enterprises, incentives for innovation and research, development of alternative industries, and large-scale retraining programs for workers impacted by mine and plant closures. Additional measures will focus on rehabilitating former industrial sites to prepare them for new economic uses.
The Just Transition Fund is financed through the EU’s multiannual budget and the NextGenerationEU recovery instrument, totaling €17.5 billion, with member states able to supplement these resources from other cohesion funds. Across the Union, nearly €19.7 billion is available, with Bulgaria expected to use its share to manage the social and economic consequences of the energy transition.
Unlike EU directives, regulations governing the Just Transition Fund are directly applicable in member states, ensuring uniform implementation. The legal framework was established following consultations with the European Commission, European Parliament, Council of the EU, and advisory bodies. If effectively implemented, the fund has the potential to transform Bulgaria’s coal regions, supporting a shift toward innovation-driven, clean energy-based economies and creating sustainable employment. Authorities and EU institutions emphasize that close cooperation with local communities will be crucial to ensure the transition generates new opportunities rather than deepening regional disparities.