Place-based Transformation Policies for Decarbonization. The Art of Timing

With the Covid-19 pandemic causing huge economic and social damages in European regions and revealing necessary transformations to cope with secular distortions in many markets, the European Recovery Plan with its funding instruments create a window of opportunity to stimulate transformative changes particularly in lagging European regions. The paper looks at necessary preconditions for transformative changes on a regional level to create a transformative environment for European firms. Specific challenges in former coal regions are addressed to emphasize the need for place-based transformation strategies, which also consider the need to combine short-term stimulations with long-term transformative perseverance.