ECONOMIC DIMENSIONS OF THE ENERGY AND CLIMATE TRANSITION IN BULGARIA: REGIONAL CHALLENGES AND OPPORTUNITIES FOR SUSTAINABLE DEVELOPMENT

The study analyzes the economic dimensions of the energy and climate transition in Bulgaria, focusing on regional differences, structural risks, and opportunities for sustainable development. The analysis examines the interrelationships between greenhouse gas emissions, the country's energy structure, European decarbonization policies, and their economic effects at the regional levelThe methodology is based on a comparative analysis of official European and national sources, including data on emissions by country and sector, EU regulatory frameworks, and environmental assessments by the European Environment Agency (European Parliament, 2024; European Environment Agency, 2025). A combined approach is applied, combining a quantitative comparison of emission profiles and a qualitative analysis of the economic consequences of climate policies. The results show that Bulgaria is at a critical stage of energy transition, characterized by high dependence on carbon-intensive energy sources and significant territorial imbalances. Coal regions, in particular the Maritsa Basin, are characterised by increased economic vulnerability due to the concentration of employment and industrial production related to fossil fuels. European policies-including Fit for 55, the European Climate Law, the Emissions Trading Scheme (ETS and ETS2), and the Carbon Border Adjustment Mechanism (CBAM) - have a direct impact on production costs, industrial competitiveness and investment decisions, creating both economic risks and opportunities for technological modernisation and structural transformation. An analysis of institutional practices based on environmental reports (Environmental Statement, 2024) shows that sustainable resource management-reducing energy consumption, switching to renewable electricity, improving waste management, and digitizing processes-leads to measurable savings and increased efficiency. Similar effects are observed in the agricultural sector, where the application of environmental and integrated approaches contributes to increased economic sustainability and more efficient use of natural resources (Pencheva, 2025a; Minkova et al., 2024). These approaches can be applied in Bulgarian public institutions and enterprises as a tool for simultaneously improving economic and environmental performance.