*On May 14, 2021, the Letter was sent to the Presidency, the Council of Ministers, and other stakeholders.
The European Union's Recovery Mechanism "Next Generation EU" is the means by which we can start the transformation of Bulgaria into a green and innovative center. In a country with a modern economy that is environmentally friendly and creates new green jobs. In a state with protected habitats and species and preserved unique nature for future generations. In a country with a decentralized energy system, in which consumers are also producers of renewable energy for their own needs, and companies implement working mechanisms of the circular economy. In a place for a happy life and with a supportive environment for the development of the potential of every citizen.
We believe that your teams are also motivated to achieve these goals with the National Recovery and Resilience Plan (NRRP).
In its current form, however, the Plan does not ensure this transformation of Bulgaria. The NRRP does not have the ambition to bring our country to a new horizon but rather solves necessary, postponed tasks from the past, without significant resources for transformation towards future prosperity. This is a catch-up program, not a development program.
During the last 10 months, the Green Restart Coalition has been actively working to support the process of preparation of the National Recovery and Resilience Plan by publishing five expert opinion papers with over 200 proposals for reforms. We have organized several roundtables with leading Bulgarian experts in the fields of innovative economy and startup development, circular economy, climate mitigation, energy transition, biodiversity protection, and promoting sustainable agriculture. We held meetings and training with the media to educate journalists about the requirements of the "Next Generation EU", the challenges facing Bulgaria, and the possible solutions. We have created a "Textbook on the Future History of Bulgaria", in which we present the possible positive development of our country if concrete reforms are introduced via "Next Generation EU".
Unfortunately, most of those proposals were reflected by the authorities only as official letters and one or two unsuccessful meetings.
We have repeatedly insisted on changes in the approach to the preparation of the NRRP, and that is why in the next two months when the Plan must be finally approved after a process of negotiations with the European Commission, we are ready to expertly support its improvement.
The change of the Plan must be done reasonably and with analysis. In the current version of the NRRP, there are good and necessary reforms and projects, but also significant gaps, projects that need improvements, as well as those that do not meet the goal of the European Union's Recovery Mechanism.
The Green Restart Coalition insists that the caretaker government conduct an expert reassessment and improvement of the Plan. We recommend:
- To promptly announce a specific mechanism/procedure for public participation and inclusion of the proposals of the stakeholders in the process of finalizing the projects and reforms in the Plan;
- In the spirit of best practice and in line with European legislation, to ensure an environmental and climate impact assessment for projects for which this is necessary;
- To carry out a qualitative analysis according to the principle of Do No Significant harm Principle (Article 17 of Regulation (EU) 2020/852 on sustainable investment);
- Introduce qualitative and quantitative indicators for analysis of the expected success of the proposed reforms and investments, including in terms of impact on climate and biodiversity;
- To take measures to avoid the risks of losing funds from the "Next Generation EU" by analyzing and revising projects that are in real danger of falling into the category of state aid - for example, the expansion of the Sofia subway, the modernization of the systems of the National Electricity System Operator or restoration of irrigation systems with solutions and technologies from the last century;
- To ensure publicity and transparency of the process of finalizing the Plan with the European Commission.
What does the Green Restart Coalition recommend?
Among our proposals are:
- Establishment of a Fund for support of green innovative small and medium enterprises with a focus on startups and scaleups - The initiative can be easily included in the Plan by restructuring the budget of the three currently proposed SME funds. We also offer specific parameters for management and control of the Fund;
- Creating a program for the national development of startups in the field of universities and specialized centers with access to scientific infrastructure - the project can be included by restructuring the NRRP’s program for economic recovery and transformation via science and innovation. Green Restart Coalition also offers parameters for management and oversight of the initiative;
- Establishment of "Industry 4.0 Program" for quality modernization and transformation of the Bulgarian economy - the program can be created by integrating the NRRP’s programs for industrial parks and innovative hubs. We also offer specific parameters for operation and control of industrial hubs and their integration with parks;
- Establishment of a dedicated Climate Fund in support of cutting-edge scientific solutions that tackle the climate crisis;
- Expanding the scope, ambition, and role of the National Decarbonization Fund, as well as its compliance with the goals and priorities for full decarbonization of energy and the economy by 2050;
- Creation of a Roadmap for transition to the Hydrogen Economy. Revision of the project for transmission of “low-carbon fuel gas” to thermal power stations and replacement with investments in strategic installations for production and storage of energy from renewable sources (such as sun and wind) or green hydrogen;
- Complete revision of the philosophy and budget of the NRRP’s program for building renovation in favor of comprehensive measures, such as replacement and modernization of heating and cooling, leading to real decarbonization in the buildings, decentralized energy system, and energy independence of households;
- Development of an “energy poverty" definition so that any future energy efficiency projects to be fully in line with European policies for decarbonization of the economy. Energy poverty should be tackled through renewable solutions instead of continuing the vicious model of financing the use of fossil and solid fuels that threaten human health and the climate;
- Rethinking the philosophy and revising the size and goals of the funds aimed at achieving adaptation of agriculture to climate change, redirecting funds from unsustainable practices and infrastructure for land reclamation to real working measures and ecosystem-based solutions for the protection of water and soil resources;
- Identification of key ecosystems (forest, freshwater, marine, agricultural, and urban) and provision of financial support via NRRP for the development of a new socio-economic-environmental model for planning and administration of public funds in Bulgaria, based on ecosystem-powered solutions, the UN Sustainable Development Goals, and the climate and human health benefits of protecting and restoring natural ecosystems;
- Development and implementation of a comprehensive and integrated educational program on circular economy and sustainable development - an approach currently missing in Bulgaria, as a result of which key aspects of sustainable development and the circular economy remain misunderstood and underestimated.
A window for historical reforms has opened. The "Next Generation EU" is our chance to go on the path of change. The Green Restart Coalition insists on a meeting with the new team in the caretaker government, responsible for the National Recovery and Sustainability Plan, in order to present our proposals expertly.
We should not miss the opportunity for a qualitative change in Bulgaria.
In Appendix 1, you can find all of our more than 200 proposals here (in the Bulgarian language) and as Appendix 2 - our special project "Textbook on the future history of Bulgaria" here (in the English language).
