site.btaGTAI on Bulgaria: Coal Phase-out Is Top Priority

In a publication entitled "Climate Protection Atlas: Bulgaria - Coal phase-out is the top priority", Germany Trade & Invest (GTAI) provides information on the climate strategy, climate targets and climate legislation in Bulgaria, on the necessary investments and on the current situation in sectors such as energy, transport, industry, agriculture and forestry, the German-Bulgarian Chamber of Industry and Commerce reported in its latest newsletter.

Here are the highlights:

The energy sector generates the most emissions in Bulgaria. Bulgaria's contribution to the EU climate targets is low. It lacks a comprehensive approach to the green transition. Dependence on fossil fuels is very high. Russian gas needs to be replaced immediately. 

Bulgaria has committed to contribute to the EU's 2050 climate target. The biggest challenge is the transformation of energy production away from CO2-intensive to clean sources. For that purpose, the Energy Ministry has updated the integrated plan on energy and climate 2021-2030.

In its energy transition, the country relies on a larger share of nuclear power and renewable energies. To achieve this, the country needs massive investment of around EUR 43 billion.

The Bulgarian government plans to phase out coal-fired power generation after 2038. The capacity of electricity generation from renewables should increase by 7.5 GW of installed capacity by 2030.

The Bulgarian government is planning a long-term energy transition with solar and wind power as well as hydrogen. However, investment incentives are currently lacking.

Over the next eight years, Bulgaria plans to invest more than EUR 4.5 billion to expand renewable energy sources. By 2030, the country wants to generate at least 27% of its electricity from renewables. 

Bulgaria also wants to replace around 1.1% of its fossil fuels with hydrogen from 2030 on the road to climate neutrality. Entrepreneurs, stakeholders and politicians see the greatest potential for using energy from hydrogen in industry: for example, to produce ammonia, which is a key ingredient for fertilizer, and in the transport sector.

The transport sector accounts for about one-fifth of Bulgaria's greenhouse gas emissions. Bulgaria therefore needs investment in road transport infrastructure. Rail transport is also to play a role in Bulgaria's transport turnaround. The country needs more multimodal terminals, according to the national energy and climate plan. 

Another goal is more electromobility. The EU is helping inthis department with around EUR 1 billion in funding.

Bulgaria's Ministry of Transport has proposed measures to reduce greenhouse gas emissions on the roads. It is committed to taking steps which, over the next eight years, will reduce emissions from transport; bring down fuel consumption; diversify transport and promote sustainable mobility; and raise awareness about environment friendly mobility.