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Significance

In South-east Europe, decarbonisation plans vary greatly between EU member states and non-members. The latter are lagging behind and in some cases reverting to coal. Divergence is growing as the EU gives much more funding for transition to members than non-members.

Impacts

Record-high prices will limit investment in gas-fired power plants and slow the gasification of households.

Populists will capitalise on opposition to the closure of lignite-burning thermal power plants.

Countries in the Western Balkans will not rush to join the EU’s Emissions Trading System.

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