Surface lignite mines of the Balkan Peninsula face growing pressure due to the CO2 emissions reduction initiatives, rapidly increasing renewable-power capacity, and cheap natural gas. In this frame, the development of a modern mine land rehabilitation strategy is considered as a prerequisite for mitigating the social and economic impacts for the local communities. In the case of western Macedonia lignite mines, these prospects are investigated based on a PEST (political, economic, social, technological) analysis of seven alternative land uses. Urban (industrial) development, green houses, and industrial heritage parks are considered as the most appropriate land uses for mitigating the socioeconomic impacts due to the loss of employments. For the land uses occupying large areas (i.e., agriculture, forestry, livestock farming, and photovoltaic parks), an optimisation algorithm is proposed for determining the mix of land uses that maximise revenue, equity, and natural conservation and minimise investment. The algorithm was applied using the opinions of 10 experts, who were involved in mine land reclamation projects carried out in the western Macedonia region in the recent past. According to the results obtained, photovoltaic parks are rated as a more attractive investment than extensive agriculture, as regards the anticipation of revenues, while livestock farming and forests are necessary to safeguard the ecosystem’s functions.

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As part of the European Green Deal, the EU aims to become climate-neutral and reach net-zero greenhouse gas emissions by 2050. Ιn this context, EU member states are required to develop a national strategy to achieve the required emissions reductions under the Paris Agreement and EU climate goals. Western Macedonia is a region in North-western Greece with its economy largely dominated by lignite mining, lignite-fired power plants and district heating systems. In 2019, the Greek Government set the goal of withdrawing all lignite plants by 2028, with most units being withdrawn already by 2023. This decision has had an immense socio-economic impact on the region of Western Macedonia. This research work reflects the current situation at the socio-economic and socio-political level in Western Macedonia and discusses the policies implemented in the context of the lignite phase-out process to ensure a just transition for households and businesses of the region. Although there is not a ‘one-size-fits-all’ blueprint for successful low-carbon transitions of high-carbon intensive regional economies, the main target of our paper is understanding the impacts, challenges and opportunities of decarbonizing Western Macedonia.

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