OECD: Just transition in the Western Balkans OECD: Rättvis energiomställning på västra Balkan The project “Just transition in the Western Balkans through coordinated energy sector, social protection and fiscal reform” implemented by the Organisation for Economic Co-operation and Development (OECD) Development Centre builds on The Multi-dimensional Review of the Western Balkans (2021, 2022) and aims to support the Western Balkans (Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia) create conditions for a low-carbon and socially inclusive development. The contribution aims to generate concrete policy options and a push for their implementation through regional peer-learning and exchange. Insatsen "Just transition in the Western Balkans: Supporting coordinated energy sector, social protection and fiscal reform" genomfört av Organisationen för ekonomiskt samarbete och utveckling (OECD) Development Centre bygger på The Multi-dimensional Review of the Western Balkan (2021, 2022) och syftar till att stödja västra Balkan (Albanien, Bosnien och Hercegovina, Kosovo, Montenegro, Nordmakedonien och Serbien) att skapa förutsättningar för en koldioxidsnål och socialt inkluderande utveckling. Insatsen vill generera konkreta politiska alternativ och en push för deras genomförande genom regionalt utbyte och lärande. Deliverable project objectives

The project aims to assist the Western Balkans in creating conditions for low-carbon and socially inclusive development by:

- Generating concrete policy options for coordinated energy sector, social protection and fiscal reforms to reduce the environmental impact of development in the Western Balkans while fostering more inclusive growth.

- Generating estimates of the potential for green job creation and recommendations for creating a supportive environment for the creation of green jobs.

- Creating a push for implementation through peer-learning exchange that brings together key policy makers and experts from the region and beyond, relevant to coordinated energy sector, social protection and fiscal reforms.

The project will combine country-based analysis with regional analysis and peer-learning activities. It will cover Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, and Serbia.

Intermediate project goals                   

The above is supported by the following intermediate goals:

1. Establish the evidence base on energy subsidies in the region through:

- A systematic overview of energy subsidies and estimates of their economic and distributional impact.

- Estimates of the incidence of various combinations of energy subsidy/price reform, with indications of winners and losers across multiple dimensions (income level, geographical location, household composition).

2. Build key tools for policy analysis and design of energy subsidy reform and green job policies, including:

- Micro-simulation models to generate distributional estimates of impact.

- Macro models to assess the impact of energy reforms on the labour market by simulating reform scenarios (including new investment into renewable energy), to identify which sectors and workers are most affected.

3. Generate policy recommendations in consultation with the economies of the region for a coordinated energy, social protection and fiscal reform based on the OECD analysis, as well as national and regional peer-learning outcomes.