The Regional Pathway of a Just Transition Area Towards Neutrality

The Region of Western Macedonia, Greece’s largest coal extraction area, is finally shifting away from fossil fuels. Home to the Western Macedonia Lignite Centre, a network of surface mines owned by the Public Power Corporation (PPC), the region has seen a significant decline in production—from 43.2 million tons in 2010 to just 10.3 million tons in 2020. This reduction marks a decisive step toward decarbonisation and economic diversification.

Advancing Climate Neutrality through Innovation

As part of this transition, Kozani, the capital of Western Macedonia, was selected to participate in the EU’s Climate-Neutral and Smart Cities Mission, aiming to lead by example in achieving carbon neutrality. The city’s strategy includes greening district heating, upgrading private buildings for energy efficiency, and promoting sustainable mobility, particularly through the adoption of electric vehicles.

Supporting Kozani in these efforts is the Cluster of Bioeconomy and Environment of Western Macedonia (CluBE), which plays a key role in coordinating regional stakeholders and implementing clean energy solutions. CluBE facilitates innovation and collaboration between local authorities, businesses, and research institutions, ensuring that Kozani—and the wider region—can successfully transition to a low-carbon economy.

The region’s transformation is backed by substantial financial resources from the Greek Government and the European Union, particularly through the Just Transition Mechanism. This funding enables the structural changes necessary to develop a low-carbon, circular economy.

Hydrogen as a Key Driver of the Energy Transition

Western Macedonia is rapidly advancing hydrogen technologies, with CluBE playing a central role in multiple EU-funded projects that support research, innovation, and infrastructure development. These initiatives are strengthening the region’s hydrogen ecosystem and positioning it as a leader in the clean energy transition.

One key project is Hy2Market, an Interregional Innovation Investment (I3) project under the European Regional Development Fund (ERDF). It connects regions across Europe to accelerate green hydrogen production, transport, and market deployment, fostering a more mature hydrogen value chain. Complementing this, GREENH2ORN, supported by the LIFE Clean Energy Transition (CET) programme, focuses on developing high-quality, zero-emission hydrogen solutions. Meanwhile, the Green Skills for Hydrogen project, funded by Erasmus+, is bridging the skills gap by providing specialised training for Europe’s growing hydrogen workforce.

Infrastructure is also evolving to integrate hydrogen into Western Macedonia’s energy landscape. Greece’s first high-pressure transmission gas pipeline, developed by DESFA, will support hydrogen transport at high pressures, with the potential to repurpose up to 60% of its network by 2040 in alignment with the European Hydrogen Backbone (EHB) strategy.

Additionally, CluBE has supported the development of North-1, a green hydrogen production facility in Amyntaio that will repurpose the former lignite-fired power plant. Led by Hellenic Hydrogen (member of CluBE), the project will begin with a 50 MW electrolyzer and has plans to scale up to 200 MW, supplying renewable hydrogen for power generation and industrial applications.

Through these projects, Western Macedonia is building a robust hydrogen ecosystem, accelerating the region’s clean energy transition.

A Model for Europe’s Coal Regions

Western Macedonia’s transition exemplifies how strategic planning, financial support, and technological innovation can drive a successful shift from fossil fuels to clean energy. With its strong industrial heritage, skilled workforce, and growing expertise in clean technologies, the region is positioning itself as a green energy hub. Through CluBE’s leadership in hydrogen development, sustainable mobility, and energy efficiency improvements, Western Macedonia is creating a replicable pathway for other coal-dependent areas in Europe. By combining policy-driven initiatives with cutting-edge technology, the region is proving that a just and climate-neutral transition is both feasible and economically viable.

This best practice is extracted from our publication ‘Sustainable Regions in Action‘. Discover more best practices here!