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The green transition at a crossroads: how equity can take it forward

By Eliza Barnea, EUSEW Young Energy Ambassador focuses on the need for a Green and Social Deal in the EU to ensure a just and equitable green transition, balancing climate action with social protection for vulnerable groups.

As the new European Commission takes office, debates regarding the bloc’s priorities for the future in a time of permacrisis are in full swing. From the COVID-19 pandemic, the Russian full-scale invasion of Ukraine, the energy crisis and ever-more frequent natural disasters, the events of the past years have kept the EU in a constant stream of crisis response. Yet today’s challenges are structural in nature and long-term in breadth. The cost of living, the international security landscape, the state of democracy and climate change were some of the top priorities that brought people to the polls in the EU election with highest turnout of the past 30 years.

Perhaps the most transformative in its potential impact is the EU ambition to spearhead the transition to climate neutrality. Yet this has been met with mounting frustrations from the part of workers, frustrations which has been exploited by extremist political discourse across Europe. As seen in the results of the recent elections in Romania, the rise of populist movements risks taking us back to square one by questioning the very notion of climate change. The future of the European Green Deal (EGD) and the Fit for 55 package seems still uncertain, yet the need for action is becoming more urgent with every passing moment. According to the Emissions Gap Report published by UNEP in October, the world is on course for a temperature increase of up to 3.1°C. This is more than double the threshold of 1.5°C which governments worldwide committed to upholding almost 10 years ago through the Paris Agreement.

The disastrous effects of climate change have continued to ravage the continent this year, resulting in human and material losses worth tens of billions of euros. As a result, EU election results clearly display the need to better address perceived tensions between environmental objectives and social equity. Climate policy can only work if we also address societal needs.

Climate action and social justice, two sides of the same coin

One poignant example of the interconnectedness between climate action and social justice is the 2024 wave of farmers protests across Europe.  A common point of contention are the strict EU environmental regulations and recently agreed-upon trade deal between the EU and the South American trade bloc Mercosur. According to French farmers, the trade deal will flood the EU market with cheap products, developed with loose environmental standards. In response to the farmers’ discontent, the Commission withdrew the Sustainable Use Regulation proposal, which sought to halve the use of pesticides by 2030 in a bid to build sustainable food production chains and support biodiversity restoration.

But agriculture is not the only strategic sector where the push for faster climate action is disproportionately affecting the most vulnerable. The green transition is a whole-of-economy, generational process, a paradigm shift that will reverberate in local communities as much as in geopolitical dynamics.

Some  important steps have been taken, from the targets to phase-out coal or fossil fuel boilers  to the introduction of the Emissions Trading System for buildings and road transport (ETS2) starting 2027. But while these are essential measures for driving down GHG emissions in the EU, their effect can come as a double-edged sword, to be felt within and beyond the borders. A lack of mitigation of the disproportionate transition costs on the most vulnerable EU citizens bears the risk of further deepening intranational inequalities, fuelling extremism and Eurosceptic sentiments. Outside EU borders, the race to electrification risks displacing polluting activity, driving up environmental and social damage in resource-rich countries and increasing the risk of conflict and displacement in already fragile regions. These are only a few of the negative externalities that cannot be ignored if we want to make the promise of a fairer, greener economic model a reality for all of us and the EU a global leader in the process.

The Social Climate Fund & the Just Transition Fund, an integrated approach to climate action

In this context, it is undeniable that the way forward for the green legislation of the EU executive needs to be a Green and Social Deal, which carefully intertwines social and environmental protection measures along the value chains. EU’s Just Transition Mechanism and the Social Climate Fund are such instruments. If well implemented, they can alleviate the disproportionate impact of green policies on vulnerable groups, while creating opportunities for everyone.

Created in 2023, the Social Climate Fund ((EU) 2023/955) will pool revenues from auctioning allowances from the newly created ETS2 covering CO2 emissions from fuel combustion in buildings, road transport and small industry. It is expected to mobilise over EUR 86 billion over the 2026 – 2032 period, supporting EU countries address the increasing challenge of energy and transport poverty. Tackling the structural causes of energy poverty and providing long-term relief to the most vulnerable is essential for ensuring the legitimacy of one of the most important EU instruments for climate action, the EU Emissions Trading System. Access to these funds will depend on the development of national Social Climate Plans and  payments will be conditioned by social and climate targets.  These must be done in a participatory way, ensuring that interests of those affected are represented and proposed investments respond to local challenges.

Another essential instrument aimed at balancing social equity and climate action is the Just Transition Fund (JTF, (EU) 2021/1056)). Adopted in 2021, the JTF came as an acknowledgment that achieving the bloc’s 2050 objective of climate neutrality will pose disproportionate challenges on regions dependent on declining polluting industries, with highly-specialised workforce and scarce employment alternatives. Part of the Just Transition Mechanism, the JTF has a budget of over EUR 17.5 billion over 2021–2027. It aims to tackle in an integrated manner the cross-sectoral challenges arising in the decarbonisation of mono-industrial regions, and especially coal regions.

JTF are part of the solution for adapting the future policies to the challenges and realities of the green transition

In many ways, the foundational principles of the JTF are part of the solution for adapting the future policies to the challenges and realities of the green transition. With a focus on territoriality and place-based development, JTF’s targeted support was conditioned by the drafting of Territorial Just Transition Plans (TJTPs) at regional level. In line with the Partnership Principle, the drafting and implementation of TJTPs coagulated diverse stakeholders around a common goal. In many ways, the participatory process unlocked by the JTF has created a best practice precedent essential to the success of the green transition, creating the synergies for local ownership and broader public buy-in. The JTF is now laying the foundation for a green economy, in an ambitious approach unimaginable to coal-dependent and mono-industrial regions just a decade ago.

In Latvia, EUR 1.8 million are allocated to improving the skills of local governments and regional specialists and mitigating the socio-economic consequences of climate change. In Greece, the JTF will provide dedicated support to energy communities for developing self-production initiatives in lignite regions. In the Romanian coal-region of Jiu Valley, the JTF will support the development of a robotics hub for youth on the site of a former mine. In September, CEE Bankwatch Network and 41 other European organisations launched a joint statement asking European decision-makers to continue and strengthen the JTF in the next financial period to ensure that “no one is left behind on the EU’s path to climate neutrality”.

The way forward for the green transition

Creating a level-playing field in the green transition must be a priority through the next Multiannual Financial Framework. As the next long-term EU budget will be negotiated, the focus must remain on continuing the ambitious work already started through the EGD.

Areas of prioritisation should centre on providing adequate financing for targeted support with a territorial approach, based on significant social dialogue, collective bargaining and transparent shared management. Protecting those most affected by mainstreaming strong social and environmental conditionalities and addressing the linkages between social and climate change vulnerability must be guiding principles. Accessing public money should also come with public responsibilities towards the common good. This means supporting local authorities with financial and non-financial tools to develop the knowledge necessary to guide their cities and villages towards climate neutrality. Bringing climate action and its benefits closer to the citizens remains essential for ensuring long-term public acceptance and supporting the behavioural change needed to have sustainability embedded as societal value.

Accessing public money should also come with public responsibilities towards the common good

Additionally, efforts must continue to fill the gaps on sustainable food systems and animal welfare, green industrial transformation and green public procurement in line with EGD objectives, especially on efficiency, sufficiency and circularity. Finally, the external footprint on labour rights and environmental protection of EGD policies and trade agreements must receive increased attention if we are to take the lead in the global transition towards sustainability and act as catalyst for security and prosperity.

A just green transition is an unprecedented opportunity for creating the paradigm shift necessary to tackle the triple crisis of climate change, biodiversity loss and pollution, in a transformative, rather than reformative manner. As laid out in the Fit for 55 Package, the green transition is “an opportunity to reduce systemic inequality” and bring forward a new economic model that holds the well-being of people and the environment at its core. The mission of advancing this forward-looking political vision must be upheld by European institutions and national governments alike.

The promise of the European Green Deal for a fair transition towards a greener, more equitable economic model is perhaps the most ambitious endeavour undertaken by the EU since its foundational promise. Similarly to when the 1950 Schuman Declaration put forward the proposal for what would become the EU, achieving this momentous objective requires “creative efforts proportionate to the dangers which threaten it”. A choice should not have to be made between protecting the environment, the economy or the people. Transforming the economy so it serves all people and our environment, this must be the way forward.

This opinion editorial is produced in co-operation with the European Sustainable Energy Week 2025. See ec.europa.eu/eusew for open calls.

Disclaimer: This article is a contribution from a partner. All rights reserved.

Neither the European Commission nor any person acting on behalf of the Commission is responsible for the use that might be made of the information in the article. The opinions expressed are those of the author(s) only and should not be considered as representative of the European Commission’s official position.

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Match schedules for the 2026 World Cup could expose footballers to extreme heat stress

Footballers playing in the 2026 FIFA World Cup could face dangerous levels of heat stress, scientists warn. A new study shows that temperatures at 14 out of the 16 stadiums could reach thresholds at which football governing bodies recommend postponing matches. The most critical period is in the afternoon, when games are usually scheduled.

The 2026 FIFA World Cup will take place in Canada, the United States, and Mexico from June 11 to July 19 next year. Matches are set to be played in 16 cities. Climate change is leading to an increasing number of extremely hot days, which affect daily life and pose challenges for organizing various events, including sports competitions.

In a study by Donal Mullan from Queen’s University Belfast, scientists analyzed meteorological data from the past 20 years to predict how high temperatures might rise at the host stadiums. To assess heat stress, they used the wet-bulb globe temperature (WBGT) method.

Heat stress is the way the human body responds to high temperatures

Heat stress is the way the human body responds to high temperatures combined with other factors such as humidity and wind speed. Prolonged exposure to extreme heat can worsen health conditions and increase the risk of heat-related illnesses such as heat exhaustion and heatstroke. A potentially dangerous level of heat stress is 28 degrees Celsius in WBGT terms.

Findings indicate that the threshold could be reached at 14 out of the 16 stadiums during the tournament. In an exceptionally hot summer, nine stadiums could exceed 28 degrees WBGT for at least half the time, while four could reach an extreme 32 degrees.

“After analyzing 20 years of data, our modeling shows that high temperatures are extremely likely, and these will have a major impact on players,” Mullan emphasized.

Mexico City and Vancouver are the only host cities where WBGT has never crossed the potentially dangerous threshold, according to the study.

Peak temperatures in the afternoon

The study reveals that stadium temperatures are highest in the afternoon, which is also the most common time for scheduling matches. Outside the period, extreme heat levels drop significantly across all locations.

Mullan suggests that the best protective measure would be to reschedule matches outside the hottest hours, especially at stadiums without air conditioning, such as those in Miami and Monterrey.

The previous World Cup, held in Qatar in 2022, was originally scheduled for June and July, when temperatures exceeded 40 degrees, but it was moved to November and December to protect players and fans.

The authors warn that the 2026 tournament could see matches played in conditions exceeding the threshold at which some football governing bodies recommend delaying or postponing games.

For example, Football Australia’s policy is that a match may be delayed or rescheduled if the WBGT reaches 28 degrees Celsius. On the other hand, FIFA guidelines mandate cooling breaks in each half as a protective measure when WBGT is between 28 and 32 degrees. Matches are only rescheduled if WBGT exceeds 32 degrees.

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European Commission seeks one-year delay for CBAM in leaked draft

The European Commission intends to propose a delay in the implementation of the Carbon Border Adjustment Mechanism (CBAM) by one year, and to exempt small importers from paying it, according to a leaked draft.

Redshaw Advisors has reviewed a leaked European Commission draft legislative proposal detailing some significant potential changes to how CBAM will operate, the consultancy’s lead CBAM advisor Dan Maleski said in a post on LinkedIn.

Payments under CBAM of the European Union’s tax on imported cement, iron and steel, aluminum, fertilizers, hydrogen, and electricity are scheduled to begin on January 1, 2026. The European Commission is expected to present a package of legislation proposals on February 26 including changes to CBAM.

Dan Maleski said there are three key takeaways.

⁠The start of CBAM certificate sales would be delayed. The obligation to purchase CBAM certificates would be postponed from 2026 to 2027, providing importers with additional time to prepare.

An exemption threshold would be introduced for small importers

Such a change was indicated a month ago. The European People’s Party (EPP), the strongest group in the European Parliament, said the EU should put the CBAM on hold for at least two years and review it. The suggestion is from a document issued after its leaders met in Berlin, and one of them was European Commission President Ursula von der Leyen.

The leaked draft includes an exemption threshold for small importers. They are defined as firms annually importing less than 50 tonnes of covered goods or goods with 100 tonnes of embedded CO2.

The outcome would be the exemption of around 90% of importers from CBAM obligations, Redshaw said.

Other drafted changes are predominantly aimed at simplifying compliance and adjusting CBAM’s scope

The modification was floated by European Commissioner Wopke Hoekstra, in charge of climate policy and taxation. He said that over 80% of companies could be exempted, because the remaining ones account for 97% of greenhouse gas emissions.

The commission will apparently seek tougher penalties for deliberate non-compliance. Minor infractions may see reduced fines, but deliberate avoidance tactics such as import splitting would draw three to five times higher penalties, the leaked draft reads.

Other important changes in the draft are predominantly aimed at simplifying compliance and adjusting CBAM’s scope. Among them are a reduction of quarterly certificate holding requirements, exemption for some sub-products and the simplification of the emissions calculations.

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Mickoski: Kazancı Holding to invest EUR 1 billion in gas power plants, gas, and heat grids

Turkey-based Kazancı Holding plans to invest EUR 1 billion in gas power plants, gas and heat distribution grids, Prime Minister of North Macedonia Hristijan Mickoski said. The company operates in the energy sector under the Aksa brand.

Hristijan Mickoski said Aksa Energy is a leading Turkish company in the energy sector with power plants with a capacity of 3,500 MW in eight countries. Kazancı Holding operates in 22 countries on four continents.

The talks are continuing, he stressed and added he is sure that soon there will be an agreement and concrete steps in the implementation of the plan. Of note, in November the prime minister gave a hint about a possible investment of EUR 1 billion in gas power plants.

Mickoski said gas power plants are a long-term solution for air pollution and that the government is negotiating with investors interested in the construction of cogeneration facilities.

The gas, and heat grid connection would be free of charge for households

The two sides are considering cogeneration plants of 500 MW in combined capacity. They would produce 4.1 TWh of electricity and 720 GWh of heat per year.

The construction of a distribution grid for gas and heat is also being discussed with the Kazancı Holding company, according to Mickovski.

In his words, the connection to the gas and heat grids for households will be free of charge. The price of natural gas for households will be significantly lower than the price on the market, he added.

Mickoski stressed the investment is important not only for a long-term solution for air pollution but also for the strength of the country’s energy sector. The prime minister claimed Kazancı Holding wouldn’t receive any new subsidies except from the regular ones for all the investors.

The contract for the gas pipeline with Greece to be signed in March

Photo: Government of North Macedonia

North Macedonia currently has only one gas pipeline, from Bulgaria, for gas imports. The signing of the contract for an interconnection with Greece is expected very soon and the memorandum was signed for the connection with Serbia.

In April 2021 the government signed a memorandum with Greece on the supply of natural gas via the liquefied natural gas (LNG) terminal in Alexandroupolis.

Mickoski said that even with the existing gas pipeline capacity, there is free capacity to implement the investment with Kazancı Holding.

Kazancı: Over the years, we will invest EUR 1 billion

The contract for the construction of the interconnector with Greece will be signed in March, he announced. In his words, it will add three billion cubic meters of natural gas per year.

Cemil Kazancı, President of the Board of Directors of Kazancı Holding, revealed that they discussed potential investments in the production of electricity and heat, as well as in gas pipelines.

The total planned investment over the years will be EUR 1 billion and it will facilitate the country’s safer and more sustainable supply of electricity and heat, Kazancı asserted.

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World Wildlife Day 2025: investing in people and the planet

World Wildlife Day is celebrated every year on March 3. It reminds us of the richness of plant and animal life, as well as the challenges that threaten it. This year’s theme Financing Wildlife Conservation: Investing in People and the Planet highlights the urgent need to mobilize financial resources to halt biodiversity loss and ensure a sustainable future.

The choice of March 3 for World Wildlife Day is symbolic. On this day in 1973, the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) was signed. It was a key agreement for the protection of global biodiversity.

Today, the planet faces three simultaneous and interconnected crises, largely driven  by human activity: climate change, biodiversity loss, and pollution. Unsustainable resource exploitation, poaching, habitat destruction, and climate change are severely endangering many species.

According to the 2024 Living Planet Report by the World Wide Fund for Nature (WWF), the average size of wildlife populations has declined by 73% since 1970. Meanwhile, the International Union for Conservation of Nature (IUCN) Red List now has 166,000 species, with 46,300 of them facing extinction.

At the same time, more than half of the world’s gross domestic product (GDP) depends on natural resources, making biodiversity loss an increasing threat to financial stability and livelihoods. It underscores the significance of this year’s World Wildlife Day theme Financing Wildlife Conservation: Investing in People and the Planet.

Current financial flows are insufficient for governments to meet national biodiversity targets, particularly in biodiversity hotspots located in low-to-middle-income countries. Biodiversity hotspots are places on Earth that are both biologically rich — and deeply threatened.

According to an estimate, USD 824 billion per year is needed to protect biodiversity, while current global investments are just USD 143 billion annually, far below the required amount. United Nations Secretary-General António Guterres has called for at least USD 500 billion per year in additional financing for the Sustainable Development Goals (SDGs), including nature protection.

“We have a responsibility to unlock the power and agility of the finance sector and mainstream nature-positive considerations in the spheres of investment. Wildlife conservation finance is about conserving plant and animal species in the wild, and contributing to the conservation of our planet’s biodiversity that sustains all ecosystems and communities worldwide,” said CITES Secretary-General Ivonne Higuero.

Innovative financing mechanisms

As the gap between required and available funding widens, attention is turning to innovative financial mechanisms. The Kunming-Montreal Global Biodiversity Framework has set ambitious targets to halt biodiversity loss by 2030, including the mobilization of at least USD 200 billion annually and the elimination or reform of environmentally harmful subsidies.

Programs such as Debt-for-Nature Swaps allow governments to redirect portions of their national debt toward conservation efforts. Wildlife Conservation Bonds encourage private sector investments in endangered species protection, while payments for ecosystem services (PES) enable landowners and local communities to generate income through sustainable management of natural resources.

World Wildlife Day 2025 will serve as a platform for knowledge exchange, financial innovation, and strengthening cooperation between governments, the private sector, and civil society.

In addition to the United Nations’ main event in the Palais des Nations in Geneva on March 3, the celebration will feature online activities, including the Jackson Wild Film Festival and the International Youth Art Contest organized by the International Fund for Animal Welfare (IFAW).

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Locals defy lithium mining plans on Mount Majevica

Residents of the town of Lopare, Bosnia and Herzegovina, have held a protest to voice their opposition to plans to grant a concession for opening a lithium mine on Mount Majevica.

The message from the protest is “No to lithium mining,” the Municipality of Lopare said in a statement.

At the invitation of environmentalists, citizens’ associations, and the municipal administration, the protest brought together a large number of residents and members of ecological associations from Lopare and neighboring towns and municipalities.

This was not the first protest against lithium mining in Lopare. A similar gathering was organized about a year ago.

Investors have shown interest in extracting lithium at several locations in Bosnia and Herzegovina, including Bijeljina, Brčko, Lopare, Ugljevik, and Zvornik.

“The people are more important than the interests of multinational companies.”

Rado Savić, head of the Lopare municipality, said the gathering was organized to send a clear message against plans to grant a concession for extracting ore and opening a mine.

“We have sent an inquiry to the Government of the Republic of Srpska twice regarding the concession request, and we’ve received verbal confirmation that we will get an answer soon,” said Savić.

  Anti-lithium protest in Lopare (photo: Eko-put/Facebook)

He added that a series of activities would be undertaken to convince the government that the lithium mining rights should not be granted.

“The people who live here are more important than the interests of multinational companies,” said Savić.

Snežana Jagodić Vujić, who leads the environmental association Eko-put, announced that a regional gathering against ore extraction on Mount Majevica and the wider region would be organized in Bijeljina at the end of March.

“We don’t want a mine on fertile, populated land.”

“This area should develop in a sustainable way, conserving our natural resources,” Jagodić Vujić stressed.

Andrijana Pekić, chairwoman of a citizens’ association dedicated to protecting Mount Majevica, said the purpose of the gathering was to send a loud and clear message that a lithium mine is not wanted on fertile, populated land.

Five reasons to oppose the mine

The Eko-put association from Bijeljina has asked the Ministry of Mining and Energy not to grant a concession for opening a lithium mine in Lopare, citing several key reasons:

  1. The proximity to populated areas: the potential location of the mine is in the immediate vicinity of the town of Lopare, which has approximately 3,000 inhabitants.
  2. Environmental risks: the Gnjica and Janja rivers, which belong to the Sava and Drina river basins, flow through the exploration area.
  3. Hazardous extraction processes: the technology required for lithium extraction, especially the use of sulfuric acid, carries serious risks to public health, nature, and the environment
  4. Incompatibility with the local community’s development goals: the municipality of Lopare is strategically oriented towards tourism and agriculture, and existing projects in these sectors conflict with the opening of a lithium mine.
  5. Unprecedented in Europe: it is important to highlight that there is currently no active lithium mine, nor a lithium mine under construction, that is located near a populated area.