Procedure : 2020/0006(COD)
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Document selected : A9-0135/2020

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A9-0135/2020

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Texts adopted :

P9_TA(2020)0223

<Date>{15/07/2020}15.7.2020</Date>
<NoDocSe>A9-0135/2020</NoDocSe>
PDF 936kWORD 431k

<TitreType>REPORT</TitreType>     <RefProcLect>***I</RefProcLect>

<Titre>on the proposal for a regulation of the European Parliament and of the Council establishing the Just Transition Fund</Titre>

<DocRef>(COM(2020)0022 – C9‑0007/2020 – 2020/0006(COD))</DocRef>


<Commission>{REGI}Committee on Regional Development</Commission>

Rapporteur: <Depute>Manolis Kefalogiannis</Depute>

Rapporteurs for the opinion (*):

Siegfried Mureşan, Committee on Budgets

Henrike Hahn, Committee on Economic and Monetary Affairs

Mounir Satouri, Committee on Employment and Social Affairs

Alexandr Vondra, Committee on the Environment, Public Health and Food Safety

Jerzy Buzek, Committee on Industry, Research and Energy

(*) Associated committees – Rule 57 of the Rules of Procedure

ERRATA/ADDENDA
DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION
 EXPLANATORY STATEMENT
 OPINION OF THE COMMITTEE ON BUDGETS
 OPINION OF THE COMMITTEE ON ECONOMIC AND MONETARY AFFAIRS
 OPINION OF THE COMMITTEE ON EMPLOYMENT AND SOCIAL AFFAIRS
 OPINION OF THE COMMITTEE ON THE ENVIRONMENT, PUBLIC HEALTH AND FOOD SAFETY
 OPINION OF THE COMMITTEE ON INDUSTRY, RESEARCH AND ENERGY
 OPINION OF THE COMMITTEE ON TRANSPORT AND TOURISM
 OPINION OF THE COMMITTEE ON AGRICULTURE AND RURAL DEVELOPMENT
 PROCEDURE – COMMITTEE RESPONSIBLE
 FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a regulation of the European Parliament and of the Council establishing the Just Transition Fund

(COM(2020)0022 – C9‑0007/2020 – 2020/0006(COD))

(Ordinary legislative procedure: first reading)

The European Parliament,

 having regard to the Commission proposal to Parliament and the Council (COM(2020)0022) and the amended proposal (COM(2020)0460),

 having regard to Article 294(2) and the third paragraph of Article 175 and Article 322(1)(a) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C9‑0007/2020),

 having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

 after consulting the Court of Auditors,

 after consulting the European Economic and Social Committee,

 after consulting the Committee of the Regions,

 having regard to Rule 59 of its Rules of Procedure,

 having regard to the opinions of the Committee on Budgets, the Committee on Economic and Monetary Affairs, the Committee on Employment and Social Affairs, the Committee on the Environment, Public Health and Food Safety, the Committee on Industry, Research and Energy, the Committee on Transport and Tourism and the Committee on Agriculture and Rural Development,

 having regard to the report of the Committee on Regional Development (A9-0135/2020),

1. Adopts its position at first reading hereinafter set out;

2. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

3. Instructs its President to forward its position to the Council, the Commission and the national parliaments.

 

<RepeatBlock-Amend><Amend>Amendment  <NumAm>1</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 1</Article>

 

Text proposed by the Commission

Amendment

(1) The regulatory framework governing the Union’s cohesion policy for the period from 2021 to 2027, in the context of the next multi-annual financial framework, contributes to the fulfilment of the Union’s commitments to implement the Paris Agreement and the United Nations Sustainable Development Goals by concentrating Union funding on green objectives. This Regulation implements one of the priorities set out in the Communication on the European Green Deal (‘the European Green Deal’)11 and is part of the Sustainable Europe Investment Plan12 providing dedicated financing under the Just Transition Mechanism in the context of cohesion policy to address the economic and social costs of the transition to a climate-neutral and circular economy, where any remaining greenhouse gas emissions are compensated by equivalent absorptions.

(1) The regulatory framework governing the Union’s cohesion policy for the period from 2021 to 2027, in the context of the next multi-annual financial framework, contributes to the fulfilment of the Union’s commitments to implement the Paris Agreement, limiting global temperature increase to below 1, 5 °C, the United Nations Sustainable Development Goals and the European Pillar of Social Rights by concentrating Union funding on green objectives. This Regulation implements one of the priorities set out in the Communication on the European Green Deal (‘the European Green Deal’)11 and is part of the Sustainable Europe Investment Plan12 providing dedicated financing under the Just Transition Mechanism in the context of cohesion policy to address the economic, social and environmental costs of the transition to a climate-neutral and circular economy, where any remaining greenhouse gas emissions are compensated by equivalent absorptions, taking into account the impact of the COVID-19 pandemic.

__________________

__________________

11 COM(2019) 640 final, 11.12.2019.

11 COM(2019) 640 final, 11.12.2019.

12 COM(2020) 21, 14.1.2020.

12 COM(2020) 21, 14.1.2020.

</Amend>

<Amend>Amendment  <NumAm>2</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 2</Article>

 

Text proposed by the Commission

Amendment

(2) The transition to a climate-neutral and circular economy constitutes one of the most important policy objectives for the Union. On 12 December 2019, the European Council endorsed the objective of achieving a climate-neutral Union by 2050, in line with the objectives of the Paris Agreement. While fighting climate change and environmental degradation will benefit all in the long term and provides opportunities and challenges for all in the medium term, not all regions and Member States start their transition from the same point or have the same capacity to respond. Some are more advanced than others, whereas the transition entails a wider social and economic impact for those regions that rely heavily on fossil fuels - especially coal, lignite, peat and oil shale - or greenhouse gas intensive industries. Such a situation not only creates the risk of a variable speed transition in the Union as regards climate action, but also of growing disparities between regions, detrimental to the objectives of social, economic and territorial cohesion.

(2) The transition to a climate-neutral and circular economy constitutes one of the most important policy objectives for the Union. On 12 December 2019, the European Council endorsed the objective of achieving a climate-neutral Union by 2050, in line with the objectives of the Paris Agreement. While fighting climate change and environmental degradation will benefit all in the long term and provides opportunities and challenges for all in the medium term, not all regions and Member States start their transition from the same point or have the same capacity to respond. Some are more advanced than others, whereas the transition entails a wider social, economic and environmental impact for those regions that rely heavily on fossil fuels - especially coal, lignite, peat for energy use and oil shale- or greenhouse gas intensive industries. Such a situation not only creates the risk of a variable speed transition in the Union as regards climate action, but also of growing disparities between regions, especially for outermost regions, remote, insular and geographically disadvantaged areas, and for areas with depopulation problems, detrimental to the objectives of social, economic and territorial cohesion.

</Amend>

<Amend>Amendment  <NumAm>3</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 3</Article>

 

Text proposed by the Commission

Amendment

(3) In order to be successful, the transition has to be fair and socially acceptable for all. Therefore, both the Union and the Member States must take into account its economic and social implications from the outset, and deploy all possible instruments to mitigate adverse consequences. The Union budget has an important role in that regard.

(3) In order to be successful, the transition has to be fair, inclusive and socially acceptable for all. Therefore, the Union, the Member States and their regions must take into account its economic, social and environmental implications from the outset, and deploy all possible instruments to mitigate adverse consequences. The Union budget has an important role in that regard to ensure that no one is left behind.

</Amend>

<Amend>Amendment  <NumAm>4</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 4</Article>

 

Text proposed by the Commission

Amendment

(4) As set out in the European Green Deal and the Sustainable Europe Investment Plan, a Just Transition Mechanism should complement the other actions under the next multi-annual financial framework for the period from 2021 to 2027. It should contribute to addressing the social and economic consequences of transitioning towards Union climate neutrality by bringing together the Union budget’s spending on climate and social objectives at regional level.

(4) As set out in the European Green Deal and the Sustainable Europe Investment Plan, a Just Transition Mechanism should complement the other actions under the next multi-annual financial framework for the period from 2021 to 2027. It should contribute to addressing the social, economic and environmental consequences, in particular for workers affected in the process of transitioning towards Union climate neutrality by 2050 by bringing together the Union budget’s spending on climate and social objectives at regional level, promoting a sustainable economy, green jobs and public health.

</Amend>

<Amend>Amendment  <NumAm>5</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 5</Article>

 

Text proposed by the Commission

Amendment

(5) This Regulation establishes the Just Transition Fund (‘JTF’) which is one of the pillars of the Just Transition Mechanism implemented under cohesion policy. The aim of the JTF is to mitigate the adverse effects of the climate transition by supporting the most affected territories and workers concerned. In line with the JTF specific objective, actions supported by the JTF should directly contribute to alleviate the impact of the transition by financing the diversification and modernisation of the local economy and by mitigating the negative repercussions on employment. This is reflected in the JTF specific objective, which is established at the same level and listed together with the policy objectives set out in Article [4] of Regulation EU [new CPR].

(5) This Regulation establishes the Just Transition Fund (‘JTF’) which is one of the pillars of the Just Transition Mechanism implemented under cohesion policy. The aim of the JTF is to mitigate and compensate the adverse effects of the climate transition by supporting the most affected territories and workers concerned and to promote a balanced socio-economic transition that fights social precarity and an unstable business environment. In line with the JTF specific objective, actions supported by the JTF should directly contribute to alleviate the impact of the transition by financing the diversification and modernisation of the local economy by regenerating natural assets and by mitigating the negative repercussions on employment and on standards of living. This is reflected in the JTF specific objective, which is established at the same level and listed together with the policy objectives set out in Article[4] of Regulation EU [new CPR].

</Amend>

<Amend>Amendment  <NumAm>6</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 6</Article>

 

Text proposed by the Commission

Amendment

(6) In view of the importance of tackling climate change in line with the Union’s commitments to implement the Paris Agreement, the commitment regarding the United Nations Sustainable Development Goals and the increased ambition of the Union as proposed in the European Green Deal, the JTF should provide a key contribution to mainstream climate actions. Resources from the JTF own envelope are additional and come on top of the investments needed to achieve the overall target of 25% of the Union budget expenditure contributing to climate objectives. Resources transferred from the ERDF and ESF+ will contribute fully to the achievement of this target.

(6) In view of the importance of tackling climate change in line with the Union’s commitments to implement the Paris Agreement, the commitment regarding the United Nations Sustainable Development Goals and the increased ambition of the Union as proposed in the European Green Deal, the JTF should provide a key contribution to mainstream climate and environmental actions. Resources from the JTF own envelope are additional and come on top of the investments needed to achieve the overall target of 30 % of the Union budget expenditure contributing to climate objectives. Resources transferred on a voluntary basis from the ERDF and ESF+ could contribute fully to the achievement of this target.

</Amend>

<Amend>Amendment  <NumAm>7</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 7</Article>

 

Text proposed by the Commission

Amendment

(7) The resources from the JTF should complement the resources available under cohesion policy.

(7) The resources from the JTF should complement the resources available under cohesion policy. The establishment of the JTF should not lead to cuts to, or compulsory transfers from, the other cohesion funds.

</Amend>

<Amend>Amendment  <NumAm>8</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 8</Article>

 

Text proposed by the Commission

Amendment

(8) Transitioning to a climate-neutral economy is a challenge for all Member States. It will be particularly demanding for those Member States that rely heavily on fossil fuels or greenhouse gas intensive industrial activities which need to be phased out or which need to adapt due to the transition towards climate neutrality and that lack the financial means to do so. The JTF should therefore cover all Member States, but the distribution of its financial means should reflect the capacity of Member States to finance the necessary investments to cope with the transition towards climate neutrality.

(8) Transitioning to a climate-neutral economy is a challenge for all Member States. It will be particularly demanding for those Member States that rely, or which until recently have relied, heavily on fossil fuels or greenhouse gas intensive industrial activities which need to be phased out or which need to adapt due to the transition towards climate neutrality and that lack the financial means to do so. The JTF should therefore cover all Member States, but the distribution of its financial means should focus on those territories most affected, and reflect the capacity of Member States to finance the necessary investments to cope with the transition towards climate neutrality, with particular attention to least developed regions, outermost regions, mountainous, islands, sparsely populated, rural, remote and geographically disadvantaged areas whose small population make the transition in energy towards climate neutrality more difficult to implement, and taking into account the starting position of each Member State.

</Amend>

<Amend>Amendment  <NumAm>9</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 9</Article>

 

Text proposed by the Commission

Amendment

(9) In order to set out an appropriate financial framework for the JTF, the Commission should set out the annual breakdown of available allocations per Member State under the Investment for jobs and growth goal, based on objective criteria.

(9) In order to set out an appropriate financial framework for the JTF, the Commission should set out the annual breakdown of available allocations per Member State under the Investment for jobs and growth goal, based on objective criteria. Member States should ensure that municipalities and cities have direct access to the JTF resources to be made available to them according to their objective needs.

</Amend>

<Amend>Amendment  <NumAm>10</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 10</Article>

 

Text proposed by the Commission

Amendment

(10) This Regulation identifies types of investments for which expenditure may be supported by the JTF. All supported activities should be pursued in full respect of the climate and environmental priorities of the Union. The list of investments should include those that support local economies and are sustainable in the long-term, taking into account all the objectives of the Green Deal. The projects financed should contribute to a transition to a climate-neutral and circular economy. For declining sectors, such as energy production based on coal, lignite, peat and oil shale or extraction activities for these solid fossil fuels, support should be linked to the phasing out of the activity and the corresponding reduction in the employment level. As regards transforming sectors with high greenhouse gas emission levels, support should promote new activities through the deployment of new technologies, new processes or products, leading to significant emission reduction, in line with the EU 2030 climate objectives and EU climate neutrality by 205013 while maintaining and enhancing employment and avoiding environmental degradation. Particular attention should also be given to activities enhancing innovation and research in advanced and sustainable technologies, as well as in the fields of digitalisation and connectivity, provided that such measures help mitigate the negative side effects of a transition towards, and contribute to, a climate-neutral and circular economy.

(10) This Regulation identifies types of investments for which expenditure may be supported by the JTF. All supported activities should be pursued in full respect of the climate, environmental and social commitments and priorities of the Union. The list of investments should include those that support people, communities and local economies and are sustainable in the long-term, taking into account all the objectives of the European Green Deal and the European Pillar of Social Rights. The projects financed should contribute to a gradual and full transition to a sustainable, climate-neutral, pollution-free and circular economy. For declining sectors, such as energy production based on coal, lignite, peat and oil shale or extraction activities for these solid fossil fuels, support should be linked to the phasing out of the activity and the corresponding reduction in the employment level. As regards transforming sectors with high greenhouse gas emission levels, support should promote new activities through the deployment of new technologies, new processes or products, leading to significant emission reduction, in line with the EU 2030 climate objectives and EU climate neutrality by 205013 while maintaining and enhancing skilled employment and avoiding environmental degradation. Particular attention should also be given to activities enhancing innovation and research in advanced and sustainable technologies, as well as in the fields of digitalisation, connectivity and smart and sustainable mobility, provided that such measures help mitigate the negative side effects of a transition towards, and contribute to, a climate-neutral and circular economy, taking into account the economic, social and energy characteristics of each Member State. The importance of culture, education and community building for the transition process should also be met by supporting activities that address the mining heritage.

__________________

__________________

13 As set out in “A Clean Planet for all European strategic long-term vision for a prosperous, modern, competitive and climate neutral economy”, Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee, the Committee of the Regions and the European Investment Bank - COM(2018) 773 final.

13 As set out in “A Clean Planet for all European strategic long-term vision for a prosperous, modern, competitive and climate neutral economy”, Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee, the Committee of the Regions and the European Investment Bank - COM(2018) 773 final.

</Amend>

<Amend>Amendment  <NumAm>11</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 11</Article>

 

Text proposed by the Commission

Amendment

(11) To protect citizens who are most vulnerable to the climate transition, the JTF should also cover the up-skilling and reskilling of the affected workers, with the aim of helping them to adapt to new employment opportunities, as well as providing job-search assistance to jobseekers and their active inclusion into the labour market.

(11) To protect citizens who are most vulnerable to the climate transition, the JTF should also cover the up-skilling, reskilling and training of the affected workers and jobseekers, particularly women, with the aim of helping them to adapt to new employment opportunities and gain new qualifications suitable for the green economy, as well as providing job-search assistance to jobseekers and their active inclusion into the labour market. The promotion of social cohesion should be a guiding principle for providing support under the JTF.

</Amend>

<Amend>Amendment  <NumAm>12</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 12</Article>

 

Text proposed by the Commission

Amendment

(12) In order to enhance the economic diversification of territories impacted by the transition, the JTF should provide support to productive investment in SMEs. Productive investment should be understood as investment in fixed capital or immaterial assets of enterprises in view of producing goods and services thereby contributing to gross-capital formation and employment. For enterprises other than SMEs, productive investments should only be supported if they are necessary for mitigating job losses resulting from the transition, by creating or protecting a significant number of jobs and they do not lead to or result from relocation. Investments in existing industrial facilities, including those covered by the Union Emissions Trading System, should be allowed if they contribute to the transition to a climate-neutral economy by 2050 and go substantially below the relevant benchmarks established for free allocation under Directive 2003/87/EC of the European Parliament and of the Council14 and if they result in the protection of a significant number of jobs. Any such investment should be justified accordingly in the relevant territorial just transition plan. In order to protect the integrity of the internal market and cohesion policy, support to undertakings should comply with Union State aid rules as set out in Articles 107 and 108 TFEU and, in particular, support to productive investments by enterprises other than SMEs should be limited to enterprises located in areas designated as assisted areas for the purposes of points (a) and (c) of Article 107(3) TFEU.

(12) In order to enhance the economic diversification of territories impacted by the transition, the JTF should provide support to productive investment in SMEs. Productive investment should be understood as investment in fixed capital or immaterial assets of enterprises in view of producing goods and services thereby contributing to gross-capital formation and employment. For enterprises other than SMEs, productive investments should only be supported if they are necessary for mitigating job losses resulting from the transition, by creating or protecting a significant number of jobs and they do not lead to or result from relocation. Investments in existing industrial facilities, including those covered by the Union Emissions Trading System, should be allowed if they contribute to the transition to a climate-neutral economy by 2050 and go substantially below the relevant benchmarks established for free allocation under Directive 2003/87/EC of the European Parliament and of the Council14 and if they result in the creation and maintenance of a significant number of jobs. Any such investment should be justified accordingly in the relevant territorial just transition plan, be sustainable and, where applicable, be consistent with the polluter pays principle and the energy efficiency first principle. In order to protect the integrity of the internal market and cohesion policy, support to undertakings should comply with Union State aid rules as set out in Articles 107 and 108 TFEU.

__________________

__________________

14 Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32).

14 Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32).

</Amend>

<Amend>Amendment  <NumAm>13</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 12 a (new)</Article>

 

Text proposed by the Commission

Amendment

 

(12a) Support for productive investment in enterprises, other than SMEs, through the JTF should be limited to less developed and transition regions as set out in Article 102(2) of Regulation No .../... [CPR].

</Amend>

<Amend>Amendment  <NumAm>14</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 13</Article>

 

Text proposed by the Commission

Amendment

(13) In order to provide flexibility for the programming of the JTF resources under the Investment for jobs and growth goal, it should be possible to prepare a self-standing JTF programme or to programme JTF resources in one or more dedicated priorities within a programme supported by the European Regional Development Fund (‘ERDF’), the European Social Fund Plus (‘ESF+’) or the Cohesion Fund. In accordance with Article 21a of Regulation (EU) [new CPR], JTF resources should be reinforced with complementary funding from the ERDF and the ESF+. The respective amounts transferred from the ERDF and the ESF+ should be consistent with the type of operations set out in the territorial just transition plans.

(13) In order to provide flexibility for the programming of the JTF resources under the Investment for jobs and growth goal, it should be possible to prepare a self-standing JTF programme or to programme JTF resources in one or more dedicated priorities within a programme supported by the European Regional Development Fund (‘ERDF’), the European Social Fund Plus (‘ESF+’) or the Cohesion Fund. In accordance with Article 21a of Regulation (EU) [new CPR], JTF resources could be reinforced on a voluntary basis with complementary funding from the ERDF and the ESF+. The respective amounts transferred from the ERDF and the ESF+ should be consistent with the type of operations set out in the territorial just transition plans.

</Amend>

<Amend>Amendment  <NumAm>15</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 14</Article>

 

Text proposed by the Commission

Amendment

(14) The JTF support should be conditional on the effective implementation of a transition process in a specific territory in order to achieve a climate-neutral economy. In that regard, Member States should prepare, in cooperation with the relevant stakeholders and supported by the Commission, territorial just transition plans, detailing the transition process, consistently with their National Energy and Climate Plans. To this end, the Commission should set up a Just Transition Platform, which would build on the existing platform for coal regions in transition to enable bilateral and multilateral exchanges of experience on lessons learnt and best practices across all affected sectors.

(14) The JTF support should be conditional on the effective and measurable implementation of a transition process in a specific territory in order to achieve a climate-neutral economy. In that regard, Member States should prepare, in social dialogue and cooperation with the relevant stakeholders in accordance with the partnership principle established by Article 6 of Regulation (EU) .../... [new CPR], and supported by the Commission, territorial just transition plans, detailing the transition process, consistently with, and possibly going further than, their National Energy and Climate Plans. To this end, the Commission should set up a Just Transition Platform, which would build on the existing platform for coal regions in transition to enable bilateral and multilateral exchanges of experience on lessons learnt and best practices across all affected sectors.

</Amend>

<Amend>Amendment  <NumAm>16</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 15</Article>

 

Text proposed by the Commission

Amendment

(15) The territorial just transition plans should identify the territories most negatively affected, where JTF support should be concentrated and describe specific actions to be undertaken to reach a climate-neutral economy, notably as regards the conversion or closure of facilities involving fossil fuel production or other greenhouse gas intensive activities. Those territories should be precisely defined and correspond to NUTS level 3 regions or should be parts thereof. The plans should detail the challenges and needs of those territories and identify the type of operations needed in a manner that ensures the coherent development of climate-resilient economic activities that are also consistent with the transition to climate-neutrality and the objectives of the Green Deal. Only investments in accordance with the transition plans should receive financial support from the JTF. The territorial just transition plans should be part of the programmes (supported by the ERDF, the ESF+, the Cohesion Fund or the JTF, as the case may be) which are approved by the Commission.

(15) The territorial just transition plans should identify the territories most negatively affected, where JTF support should be concentrated and describe specific actions to be undertaken to reach the Union climate targets for 2030 and a climate-neutral economy by 2050, notably as regards the conversion or closure of facilities involving fossil fuel production or other greenhouse gas intensive activities, whilst maintaining and expanding employment opportunities in the affected territories in order to avoid social exclusion. Aggravating factors such as unemployment rates and depopulation trends should be taken into consideration. Those territories should be precisely defined and correspond to NUTS level 3 regions or should be parts thereof. The plans should detail the challenges, needs and opportunities of those territories and identify the type of operations needed in a manner that ensures the coherent development of climate-resilient economic activities that are also consistent with the transition to climate-neutrality and the objectives of the European Green Deal. Only investments in accordance with the transition plans should receive financial support from the JTF. The territorial just transition plans should be part of the programmes (supported by the ERDF, the ESF+, the Cohesion Fund or the JTF, as the case may be) which are approved by the Commission.

</Amend>

<Amend>Amendment  <NumAm>17</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 19</Article>

 

Text proposed by the Commission

Amendment

(19) The objectives of this Regulation, namely to support territories facing economic and social transformation in their transition to a climate-neutral economy, cannot be sufficiently achieved by the Member States alone. The main reasons in this regard are, on the one hand, the disparities between the levels of development of the various territories and the backwardness of the least favoured territories, as well as the limit on the financial resources of the Member States and territories and, on the other hand, the need for a coherent implementation framework covering several Union funds under shared management. Since those objectives can better be achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 TEU. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve those objectives,

(19) The objectives of this Regulation, namely to support the people, economy and environment of territories facing economic and social transformation in their transition to a climate-neutral economy, cannot be sufficiently achieved by the Member States alone. The main reasons in this regard are, on the one hand, the disparities between the levels of development of the various territories and the backwardness of the least favoured territories, as well as the limit on the financial resources of the Member States and territories and, on the other hand, the need for a coherent implementation framework covering several Union funds under shared management and ensuring compliance with high social and environmental standards and the promotion of worker participation. Since those objectives can better be achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 TEU. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve those objectives,

</Amend>

<Amend>Amendment  <NumAm>18</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 1 – paragraph 1</Article>

 

Text proposed by the Commission

Amendment

1. This Regulation establishes the Just Transition Fund (‘JTF’) to provide support to territories facing serious socio-economic challenges deriving from the transition process towards a climate-neutral economy of the Union by 2050.

1. This Regulation establishes the Just Transition Fund (‘JTF’) to provide support to the people, economy and environment of territories that face serious socio-economic challenges deriving from the transition process towards the achievement of the Union’s 2030 targets for energy and climate, and a climate-neutral economy of the Union by 2050.

</Amend>

<Amend>Amendment  <NumAm>19</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 2 – paragraph 1</Article>

 

Text proposed by the Commission

Amendment

In accordance with the second subparagraph of Article [4(1)] of Regulation (EU) [new CPR], the JTF shall contribute to the single specific objective ‘enabling regions and people to address the social, economic and environmental impacts of the transition towards a climate-neutral economy.

In accordance with the second subparagraph of Article[4(1)] of Regulation (EU) [new CPR], the JTF shall contribute to the single specific objective ‘enabling regions, people, enterprises and other stakeholders to address the social, employment,economic and environmental impacts of the transition towards a climate-neutral economy by 2050 and the intermediate goals for 2030, in line with the goals of the Paris Agreement.

</Amend>

<Amend>Amendment  <NumAm>20</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 3 – paragraph 2 – subparagraph 1</Article>

 

Text proposed by the Commission

Amendment

2. The resources for the JTF under the Investment for jobs and growth goal available for budgetary commitment for the period 2021-2027 shall be EUR 11 270 459 000 in current prices, which may be increased, as the case may be, by additional resources allocated in the Union budget, and by other resources in accordance with the applicable basic act.

2.  The resources for the JTF under the Investment for jobs and growth goal available for budgetary commitment for the period 2021-2027 shall be EUR 25 358 532 750 in 2018 prices, (‘principal amount’), and shall not result from the transfer of resources from other Funds covered by Regulation (EU).../... [new CPR]. The principal amount may be increased, as the case may be, by additional resources allocated in the Union budget, and by other resources in accordance with the applicable basic act.

</Amend>

<Amend>Amendment  <NumAm>21</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 3a – paragraph 3</Article>

 

Text proposed by the Commission

Amendment

3.  The annual breakdown of the amount referred to in paragraph 1 by Member States shall be included in the Commission decision referred to in Article 3(3) in accordance with the methodology set out in Annex I.

3.  At the request of a Member State, the amount referred to in the first subparagraph of paragraph 1 of this Article shall also be made available for the years 2025-2027. For each period, the respective annual breakdowns of the amount referred to in paragraph 1 of this Article by Member States shall be included in the Commission decision referred to in Article 3(3) in accordance with the methodology set out in Annex I.

</Amend>

<Amend>Amendment  <NumAm>22</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 3 b (new)</Article>

 

Text proposed by the Commission

Amendment

 

Article 3b

 

Green Rewarding Mechanism

 

18 % of the total of the amounts referred to in the first subparagraph of Article 3(2) and the first subparagraph of Article 3a(1) shall be allocated in accordance with the speed with which the Member States reduce their greenhouse gas emissions, divided by their latest average GNI.

</Amend>

<Amend>Amendment  <NumAm>23</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 3 c (new)</Article>

 

Text proposed by the Commission

Amendment

 

Article 3c

 

Specific allocations for outermost regions and islands

 

1 % of the total of the amounts referred to in the first subparagraph of Article 3(2) and the first subparagraph of Article 3a(1) shall be a specific allocation for islands, and 1 % shall be a specific allocation for the outermost regions, as referred to in Article 349 TFEU, given to the Member States concerned.

</Amend>

<Amend>Amendment  <NumAm>24</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 4 – paragraph 2 – subparagraph 1 – point a</Article>

 

Text proposed by the Commission

Amendment

(a) productive investments in SMEs, including start-ups, leading to economic diversification and reconversion;

(a) productive and sustainable investments in microenterprises and SMEs, including start-ups and sustainable tourism, leading to job creation, modernisation, economic diversification and reconversion;

</Amend>

<Amend>Amendment  <NumAm>25</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 4 – paragraph 2 – subparagraph 1 – point b</Article>

 

Text proposed by the Commission

Amendment

(b) investments in the creation of new firms, including through business incubators and consulting services;

(b) investments in the creation of new firms and the development of those existing, including through business incubators and consulting services, leading to job creation;

</Amend>

<Amend>Amendment  <NumAm>26</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 4 – paragraph 2 – subparagraph 1 – point b a (new)</Article>

 

Text proposed by the Commission

Amendment

 

(ba) investments in social infrastructures, leading to job creation and economic diversification;

</Amend>

<Amend>Amendment  <NumAm>27</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 4 – paragraph 2 – subparagraph 1 – point c</Article>

 

Text proposed by the Commission

Amendment

(c) investments in research and innovation activities and fostering the transfer of advanced technologies;

(c) investments in research and innovation activities, including in universities and public research institutions, and fostering the transfer of advanced and market-ready technologies;

</Amend>

<Amend>Amendment  <NumAm>28</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 4 – paragraph 2 – subparagraph 1 – point d</Article>

 

Text proposed by the Commission

Amendment

(d) investments in the deployment of technology and infrastructures for affordable clean energy, in greenhouse gas emission reduction, energy efficiency and renewable energy;

(d) investments in the deployment of technology and infrastructures for affordable clean energy and its systems, in greenhouse gas emission reduction, energy efficiency, energy storage technologies and sustainable renewable energy, where it leads to job creation and maintenance of sustainable employment at a considerable scale;

</Amend>

<Amend>Amendment  <NumAm>29</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 4 – paragraph 2 – subparagraph 1 – point d a (new)</Article>

 

Text proposed by the Commission

Amendment

 

(da) investments in smart and sustainable mobility and environmentally-friendly transport infrastructure;

</Amend>

<Amend>Amendment  <NumAm>30</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 4 – paragraph 2 – subparagraph 1 – point d b (new)</Article>

 

Text proposed by the Commission

Amendment

 

(db) investments in projects fighting energy poverty, particularly in social housing, and promoting energy efficiency, a climate neutral approach and low-emission district heating in most affected regions;

</Amend>

<Amend>Amendment  <NumAm>31</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 4 – paragraph 2 – subparagraph 1 – point e</Article>

 

Text proposed by the Commission

Amendment

(e) investments in digitalisation and digital connectivity;

(e) investments in digitalisation, digital innovation and digital connectivity, including digital and precision farming;

</Amend>

<Amend>Amendment  <NumAm>32</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 4 – paragraph 2 – subparagraph 1 – point f</Article>

 

Text proposed by the Commission

Amendment

(f) investments in regeneration and decontamination of sites, land restoration and repurposing projects;

(f) investments in green infrastructure as well as regeneration and decontamination of sites, brown fields and repurposing projects, when the ‘polluter pays’ principle cannot be applied;

</Amend>

<Amend>Amendment  <NumAm>33</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 4 – paragraph 2 – subparagraph 1 – point g a (new)</Article>

 

Text proposed by the Commission

Amendment

 

(ga) creation and development of social and public services of general interest;

</Amend>

<Amend>Amendment  <NumAm>34</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 4 – paragraph 2 – subparagraph 1 – point g b (new)</Article>

 

Text proposed by the Commission

Amendment

 

(gb) investments in culture, education and community building, including the valorisation of tangible and intangible mining heritage and community hubs;

</Amend>

<Amend>Amendment  <NumAm>35</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 4 – paragraph 2 – subparagraph 1 – point h</Article>

 

Text proposed by the Commission

Amendment

(h) upskilling and reskilling of workers;

(h) upskilling, reskilling and training of workers and jobseekers;

</Amend>

<Amend>Amendment  <NumAm>36</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 4 – paragraph 2 – subparagraph 1 – point i</Article>

 

Text proposed by the Commission

Amendment

(i) job-search assistance to jobseekers;

(i) job-search assistance to jobseekers, active aging support and income support for workers in transition between jobs;

</Amend>

<Amend>Amendment  <NumAm>37</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 4 – paragraph 2 – subparagraph 1 – point j</Article>

 

Text proposed by the Commission

Amendment

(j) active inclusion of jobseekers;

(j) active inclusion of jobseekers, particularly women, disabled persons and vulnerable groups;

</Amend>

<Amend>Amendment  <NumAm>38</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 4 – paragraph 2 – subparagraph 2</Article>

 

Text proposed by the Commission

Amendment

Additionally, the JTF may support, in areas designated as assisted areas in accordance with points (a) and (c) of Article 107(3) of the TFEU, productive investments in enterprises other than SMEs, provided that such investments have been approved as part of the territorial just transition plan based on the information required under point (h) of Article 7(2). Such investments shall only be eligible where they are necessary for the implementation of the territorial just transition plan.

Additionally, the JTF may support, in less developed and transition regions as set out in Article 102(2) of Regulation No .../...[new CPR], productive investments in enterprises other than SMEs, provided that such investments have been approved as part of the territorial just transition plan based on the information required under point (h) of Article 7(2). Such investments shall only be eligible where they are necessary for the implementation of the territorial just transition plan, to create new jobs, and where they comply with social targets for job creation, gender equality and equal pay and environmental targets, and where they facilitate transition to a climate-neutral economy without supporting relocation, in compliance with Article 60(1) of Regulation No .../... [new CPR].

</Amend>

<Amend>Amendment  <NumAm>39</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 4 – paragraph 2 – subparagraph 3</Article>

 

Text proposed by the Commission

Amendment

The JTF may also support investments to achieve the reduction of greenhouse gas emissions from activities listed in Annex I to Directive 2003/87/EC of the European Parliament and of the Council provided that such investments have been approved as part of the territorial just transition plan based on the information required under point (i) of Article 7(2). Such investments shall only be eligible where they are necessary for the implementation of the territorial just transition plan.

The JTF may also support investments to achieve the reduction of greenhouse gas emissions from activities listed in Annex I to Directive 2003/87/EC of the European Parliament and of the Council provided that such investments have been approved as part of the territorial just transition plan based on the information required under point (i) of Article 7(2) of this Regulation and that they comply with the other conditions laid down in the second subparagraph of this paragraph. Such investments shall only be eligible where they are necessary for the implementation of the territorial just transition plan.

</Amend>

<Amend>Amendment  <NumAm>40</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 5 – paragraph 1 – point c</Article>

 

Text proposed by the Commission

Amendment

(c) undertakings in difficulty, as defined in Article 2(18) of Commission Regulation (EU) No 651/201416 ;

(c) undertakings in difficulty, as defined in Article 2(18) of Commission Regulation (EU) No 651/201416, except in cases where the difficulties derive from the energy transition process or where the difficulties began after 15 February 2020 and derive from the COVID-19 crisis;

__________________

__________________

16 Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty (OJ L 187, 26.6.2014, p. 1).

16 Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty (OJ L 187, 26.6.2014, p. 1).

</Amend>

<Amend>Amendment  <NumAm>41</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 5 – paragraph 1 – point d</Article>

 

Text proposed by the Commission

Amendment

(d) investment related to the production, processing, distribution, storage or combustion of fossil fuels;

(d) investment related to the production, processing, transport, distribution, storage or combustion of fossil fuels, unless compatible with paragraph 1a;

</Amend>

<Amend>Amendment  <NumAm>42</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 5 – paragraph 1 – point e</Article>

 

Text proposed by the Commission

Amendment

(e) investment in broadband infrastructure in areas in which there are at least two broadband networks of equivalent category.

(e) investment in broadband infrastructure in areas where equivalent solutions are provided by the market in competitive conditions to customers;

</Amend>

<Amend>Amendment  <NumAm>43</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 5 – paragraph 1 – point e a (new)</Article>

 

Text proposed by the Commission

Amendment

 

(ea) investment in enterprises other than SMEs, involving the transfer of jobs and production processes from one Member State to another or to a third country;

</Amend>

<Amend>Amendment  <NumAm>44</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 5 – paragraph 1 – point e b (new)</Article>

 

Text proposed by the Commission

Amendment

 

(eb) operations in a NUTS 2 region where an opening of a new coal, lignite or oil shale mine or of a peat extraction field or a reopening of a temporarily decommissioned coal, lignite or oil shale mine or of a peat extraction field is scheduled during the duration of the programme.

</Amend>

<Amend>Amendment  <NumAm>45</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 5 – paragraph 1 a (new)</Article>

 

Text proposed by the Commission

Amendment

 

By way of derogation from point (d) of Article 5(1) of this Regulation, for regions heavily relying on the extraction and combustion of coal, lignite, oil shale or peat, the Commission may approve territorial just transition plans which include investments in activities related to natural gas, provided that such activities qualify as environmentally sustainable in accordance with Article 3 of Regulation (EU) No.../2020 [Taxonomy] and comply with the following cumulative conditions:

 

(a)  are used as a bridging technology replacing coal, lignite, peat, or oil shale;

 

(b)  fall within the limits of sustainable availability or are compatible with the use of clean hydrogen, biogas and biomethane;

 

(c)  contribute to the Union’s environmental objectives on climate change mitigation and adaptation, through accelerating the full phase-out of coal, lignite, peat or oil shale;

 

(d)  deliver significant reductions in greenhouse gas emissions and air pollution and increase energy efficiency;

 

(e)  contribute to tackling energy poverty;

 

(f)  do not hamper the development of renewable energy sources in the territories concerned and are compatible and in synergy with asubsequent use of renewable energy sources.

 

In duly justified cases, the Commission may also approve investments in non-qualifying activities in accordance with Article 3 of Regulation (EU) No .../2020 [Taxonomy], if they comply with all the other conditions set out in the first subparagraph of this paragraph, and the Member State is able to justify, in the territorial just transition plan, the need to support those activities and demonstrates consistency of those activities with Union energy and climate objectives and legislation, as well as its National Energy and Climate Plan.

</Amend>

<Amend>Amendment  <NumAm>46</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 6 – paragraph 1 – subparagraph 1</Article>

 

Text proposed by the Commission

Amendment

The JTF resources shall be programmed for the categories of regions where the territories concerned are located, on the basis of the territorial just transition plans established in accordance with Article 7 and approved by the Commission as part of a programme or a programme amendment. The resources programmed shall take the form of one or more specific programmes or of one or more priorities within a programme.

The JTF resources shall be programmed for the categories of regions where the territories or economic activities concerned are located, on the basis of the territorial just transition plans established in accordance with Article 7 and approved by the Commission as part of a programme or a programme amendment. The resources programmed shall take the form of one or more specific programmes or of one or more priorities within a programme.

</Amend>

<Amend>Amendment  <NumAm>47</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 6 – paragraph 1 – subparagraph 2</Article>

 

Text proposed by the Commission

Amendment

The Commission shall only approve a programme where the identification of the territories most negatively affected by the transition process, contained within the relevant territorial just transition plan, is duly justified and the relevant territorial just transition plan is consistent with the National Energy and Climate Plan of the Member State concerned.

Unless it duly justifies withholding its approval, the Commission shall approve a programme where the territories most negatively affected by the transition process, contained within the relevant territorial just transition plan, are duly identified and the relevant territorial just transition plan is consistent with the National Energy and Climate Plan of the Member State concerned, the climate-neutrality objective for 2050, its intermediate steps by 2030 and the European Pillar of Social Rights.

</Amend>

<Amend>Amendment  <NumAm>48</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 6 – paragraph 2</Article>

 

Text proposed by the Commission

Amendment

2. The JTF priority or priorities shall comprise the JTF resources consisting of all or part of the JTF allocation for the Member States and the resources transferred in accordance with Article [21a] of Regulation (EU) [new CPR]. The total of the ERDF and ESF+ resources transferred to the JTF shall be at least equal to one and a half times the amount of support from the JTF to that priority excluding the resources referred to in paragraph 1 of Article 3a but shall not exceed three times that amount.

2. The JTF priority or priorities shall comprise the JTF resources consisting of all or part of the JTF allocation for the Member States. Those resources may be complemented by the resources transferred on a voluntary basis in accordance with Article [21a] of Regulation (EU) [new CPR]. The total of the ERDF and ESF+ resources to be transferred to the JTF priority shall not exceed one and a half times the amount of support from the JTF to that priority. The resources transferred from ERDF and ESF+ shall maintain their original objectives and be included in the levels of thematic concentration of ERDF and ESF+.

</Amend>

<Amend>Amendment  <NumAm>49</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 6 – paragraph 2 a (new)</Article>

 

Text proposed by the Commission

Amendment

 

2a. The JTF is designed for the most vulnerable communities within each region, and therefore eligible projects financed under the JTF contributing to the specific objective in Article 2 shall benefit from co-financing of up to 85 % of relevant costs.

</Amend>

<Amend>Amendment  <NumAm>50</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 7 – paragraph 1</Article>

 

Text proposed by the Commission

Amendment

1. Member States shall prepare, together with the relevant authorities of the territories concerned, one or more territorial just transition plans covering one or more affected territories corresponding to level 3 of the common classification of territorial units for statistics (‘NUTS level 3 regions’) as established by Regulation (EC) No 1059/2003 of the European Parliament and of the Council as amended by Commission Regulation (EC) No 868/201417 or parts thereof, in accordance with the template set out in Annex II. Those territories shall be those most negatively affected based on the economic and social impacts resulting from the transition, in particular with regard to expected job losses in fossil fuel production and use and the transformation needs of the production processes of industrial facilities with the highest greenhouse gas intensity.

1. Member States shall prepare, together with the relevant local and regional authorities of the territories concerned and in accordance with the partnership principle laid down in Article 6 of Regulation (EU) .../… [new CPR] and, where relevant, the assistance of the EIB and EIF, one or more territorial just transition plans covering one or more affected territories corresponding to level 3 of the common classification of territorial units for statistics (‘NUTS level 3 regions’) as established by Regulation (EC) No 1059/2003 of the European Parliament and of the Council as amended by Commission Regulation (EU) 2016/206617 or parts thereof, in accordance with the template set out in Annex II. Those territories shall be those most negatively affected based on the economic and social impacts resulting from the transition, in particular with regard to expected job losses in fossil fuel production and use and the transformation needs of the production processes of industrial facilities with the highest greenhouse gas intensity.

__________________

__________________

17 Regulation (EC) No 1059/2003 of the European Parliament and of the Council of 26 May 2003 on the establishment of a common classification of territorial units for statistics (NUTS) (OJ L 154 21.6.2003, p. 1).

17 Regulation (EC) No 1059/2003 of the European Parliament and of the Council of 26 May 2003 on the establishment of a common classification of territorial units for statistics (NUTS) (OJ L 154, 21.6.2003, p. 1).

</Amend>

<Amend>Amendment  <NumAm>51</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 7 – paragraph 2 – point a</Article>

 

Text proposed by the Commission

Amendment

(a) a description of the transition process at national level towards a climate-neutral economy, including a timeline for key transition steps which are consistent with the latest version of the National Energy and Climate Plan (‘NECP’);

(a) a description of the transition process at national level towards the achievement of the Union 2030 climate targets and a climate-neutral economy by 2050, including a timeline for key transition steps which are consistent with the latest version of the National Energy and Climate Plan (‘NECP’);

</Amend>

<Amend>Amendment  <NumAm>52</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 7 – paragraph 2 – point b</Article>

 

Text proposed by the Commission

Amendment

(b) a justification for identifying the territories as most negatively affected by the transition process referred to in point (a) and to be supported by the JTF, in accordance with paragraph 1;

(b) a justification for identifying the territories as most negatively affected by the transition process referred to in point (a) and to be supported by the JTF, in accordance with paragraph 1, including indicators such as the unemployment rate and the depopulation rate;

</Amend>

<Amend>Amendment  <NumAm>53</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 7 – paragraph 2 – point c</Article>

 

Text proposed by the Commission

Amendment

(c) an assessment of the transition challenges faced by the most negatively affected territories, including the social, economic, and environmental impact of the transition to a climate-neutral economy, identifying the potential number of affected jobs and job losses, the development needs and objectives, to be reached by 2030 linked to the transformation or closure of greenhouse gas-intensive activities in those territories;

(c) an impact assessment of the transition challenges faced by the most negatively affected territories, including the social, economic, and environmental impact of the transition to a climate-neutral economy, identifying the potential number of affected jobs and job losses, the potential impact on government revenues, the development needs and objectives, linked to the transformation or closure of greenhouse gas-intensive activities in those territories, and the challenges regarding energy poverty;

</Amend>

<Amend>Amendment  <NumAm>54</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 7 – paragraph 2 – point d</Article>

 

Text proposed by the Commission

Amendment

(d) a description of the expected contribution of the JTF support to addressing the social, economic and environmental impacts of the transition to a climate-neutral economy;

(d) a description of the expected contribution of the JTF support to addressing the social, demographic, economic, health and environmental impacts of the transition to a climate-neutral economy;

</Amend>

<Amend>Amendment  <NumAm>55</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 7 – paragraph 2 – point e</Article>

 

Text proposed by the Commission

Amendment

(e) an assessment of its consistency with other national, regional or territorial strategies and plans;

(e) an assessment of its consistency with other national, regional or territorial strategies and plans, where relevant;

</Amend>

<Amend>Amendment  <NumAm>56</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 7 – paragraph 2 – point h</Article>

 

Text proposed by the Commission

Amendment

(h) where support is provided to productive investments to enterprises other than SMEs, an exhaustive list of such operations and enterprises and a justification of the necessity of such support through a gap analysis demonstrating that the expected job losses would exceed the expected number of jobs created in the absence of the investment;

(h) where support is provided to productive investments to enterprises other than SMEs, an indicative list of such operations and enterprises and a justification of the necessity of such support through a gap analysis demonstrating that the expected job losses would exceed the expected number of jobs created in the absence of the investment;

</Amend>

<Amend>Amendment  <NumAm>57</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 7 – paragraph 3</Article>

 

Text proposed by the Commission

Amendment

3. The preparation and implementation of territorial just transition plans shall involve the relevant partners in accordance with Article [6] of Regulation (EU) [new CPR].

3. The preparation and implementation of territorial just transition plans shall involve the relevant partners in accordance with Article [6] of Regulation (EU) [new CPR] and, where relevant, the EIB and EIF.

</Amend>

<Amend>Amendment  <NumAm>58</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 8 – paragraph 2</Article>

 

Text proposed by the Commission

Amendment

2. For output indicators, baselines shall be set at zero. The milestones set for 2024 and targets set for 2029 shall be cumulative. Targets shall not be revised after the request for programme amendment submitted pursuant to Article [14(2)] of Regulation (EU) [new CPR] has been approved by the Commission.

2. For output indicators, baselines shall be set at zero. The milestones set for 2024 and targets set for 2029 shall be cumulative.

</Amend>

<Amend>Amendment  <NumAm>59</NumAm>

 

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 9 – paragraph 1</Article>

 

Text proposed by the Commission

Amendment

Where the Commission concludes, based on the examination of the final performance report of the programme, that there is a failure to achieve at least 65% of the target established for one or more output or result indicators for the JTF resources, it may make financial corrections pursuant to Article [98] of Regulation (EU) [new CPR] by reducing the support from the JTF to the priority concerned in proportion to the achievements.

Based on the final performance report of the programme, the Commission may make financial corrections in accordance with Regulation (EU) [new CPR].

</Amend>

<Amend>Amendment  <NumAm>60</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 10 a (new)</Article>

 

Text proposed by the Commission

Amendment

 

Article 10a

 

Transitional provisions

 

Member States shall benefit from a transition period until .... [one year from the date of entry into force of this Regulation] for the preparation and adoption of the territorial just transition plans. All Member States shall be fully eligible for funding under this Regulation during that transition period, which shall not be taken into account by the Commission when considering a decision on decommitment or loss of funding.

</Amend>

<Amend>Amendment  <NumAm>61</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 10 b (new)</Article>

 

Text proposed by the Commission

Amendment

 

Article 10b

 

Review

 

At the latest by the end of mid-term review of the next multi-annual financial framework, the Commission shall review the implementation of the JTF and assess whether it is appropriate to amend its scope in line with possible changes in Regulation 2020/... [Taxonomy Regulation], the Union’s climate objectives set out in Regulation (EU) 2020/… [European Climate Law] and the evolution in the implementation of the Sustainable Finance Action Plan. On that basis, the Commission shall submit a report to the European Parliament and to the Council, which may be accompanied by legislative proposals.

</Amend></RepeatBlock-Amend>

 


 

EXPLANATORY STATEMENT

A. Introduction

 

In the legislative proposals governing the use of cohesion policy funding for the period 2021-2027, one of the main objectives which will drive EU investments will be a “Greener, low-carbon Europe, by promoting clean and fair energy transition, green and blue investment, the circular economy, climate adaptation and risk prevention and management”. This serves to implement the Paris Agreement. In addition, 25% of the total MFF expenditure is to be spent on climate-related activities.

 

The European Green Deal reinforces even further the EU’s commitment to a greener future, setting out a new growth policy for Europe, with the ambitious goal of achieving climate neutrality by 2050, a goal that was endorsed by the European Council on 12 December 2019.

 

However, on the road towards a green economy and climate neutrality, there are particular difficulties we should urgently address. There is, for instance, a great number of regions which are still dependent on fossil fuel or greenhouse gas-intensive industrial processes. The transition of these regions to a climate-neutral economy is therefore an enormous challenge. Economic activities with high greenhouse gas emission intensity levels, or based on the production and use of fossil fuels, such as coal and lignite, will inevitably have to decrease both in terms of economic output and employment levels. Other sectors with high greenhouse gas emission levels will need to abandon carbon-intensive processes: they will need to transform. Furthermore, a number of jobs which indirectly depend on the aforementioned activities will now need to transform as well, or could cease to exist. All these changes will have a direct impact on people’s lives and will inevitably create a wide range of social challenges.

 

The rapporteur therefore very much welcomes the fact that, by submitting a separate, new draft regulation for the establishment of a Just Transition Fund in the post-2020 funding period, the Commission has given its attention to these social, economic and environmental challenges, and signalled the importance of a common EU response to the need for a just transition.

 

In the rapporteur’s view, however, this proposal, which constitutes the first legislative proposal implementing the priorities set out in the European Green Deal and is part of the Sustainable Europe Investment Plan, still needs some modifications, additions and adjustments. The rapporteur is particularly concerned about the socio-economic impact of the transition process towards a climate-neutral economy, and firmly believes that the EU needs to achieve transition without letting disparities between regions grow any further, and without leaving any citizen behind.

 

B. Structure of the Just Transition Mechanism

 

The rapporteur welcomes the three-pillar structure of the Just Transition Mechanism, consisting of the Just Transition Fund, the dedicated scheme under InvestEU and the public sector loan facility with the EIB Group. The Just Transition Fund will be used primarily to provide grants, and its focus will be on economic diversification and the reskilling and active inclusion of workers and jobseekers, whereas the other two pillars will pull in private investments and leverage public financing respectively.

 

The rapporteur also points to the fact that the Just Transition Fund is implemented under shared management, in close cooperation with national, regional and local authorities and stakeholders, as this ensures ownership of the transition strategy. Compliance with the partnership principle is also of key importance, as this ensures that economic and social partners are consulted on programming and implementation issues.

 

C. Scope of support

 

The rapporteur welcomes the fact that the proposed JTF will support activities in the fields of economic diversification, reskilling of workers and environmental rehabilitation. This is a broad scope of activities, including investments in: SMEs, R&I, energy-related technology and infrastructures, digitalisation, regeneration, the circular economy, the upskilling and reskilling of workers, and the assistance and inclusion of job seekers. However, the list of activities should have an even broader scope in order to enable regions, people, enterprises and other stakeholders to face effectively the social, employment, economic and environmental consequences of the transition to a climate-neutral economy.

 

The rapporteur would like to exclude from JTF funding investments in enterprises other than SMEs when jobs and production processes are transferred from one Member State to another or to a third country. Furthermore, the rapporteur agrees to exclude from funding investments related to fossil fuels, but considers that investments in activities related to natural gas, in particular, should be eligible for financing under certain strict conditions.

 

D. Budget

 

The rapporteur welcomes the fact that the proposed JTF will promote energy transition and will support a much wider range of activities under three broad categories: social support, economic revitalisation and land restoration. The rapporteur also, welcomes the amended Commission proposal, which proposes a substantially higher budget and additional resources from the European Union Recovery Instrument. However, as the EU’s ambitious policy objectives can only be achieved by means of an ambitious budget, even more resources are necessary and these should not jeopardise the financing of the other cohesion funds. In addition, the JTF resources may be complemented by transfers from the ERDF and ESF+ on a voluntary basis.

 

In addition, the rapporteur believes that the additional efforts made by Member States leading to a reduction in emissions going beyond the target should be rewarded. The rapporteur therefore supports the introduction of incentives such as the Green Rewarding Mechanism, which reward with additional allocations those Member States which reduce their greenhouse gas emissions at a greater speed.  In the rapporteur’s view, particular attention should also be paid to islands and the outermost regions, ensuring a special allocation in their favour.

 

E. Conclusion

 

This report is the result of intense discussion and compromise. In particular, the rapporteur would like to thank the shadow rapporteurs from the other political groups, as well as the rapporteurs for opinion from the five associated committees and two other committees for opinion. The rapporteur now looks forward to intense interinstitutional negotiations after the summer break.


 

 

 

OPINION OF THE COMMITTEE ON BUDGETS (26.6.2020)

<CommissionInt>for the Committee on Regional Development</CommissionInt>


<Titre>on the proposal for a regulation of the European Parliament and of the Council establishing the Just Transition Fund</Titre>

<DocRef>(COM(2020)0022 – C9‑0007/2020 – 2020/0006(COD))</DocRef>

Rapporteur for opinion (*) : <Depute>Siegfried Mureşan </Depute>

(*) Associated committee – Rule 57 of the Rules of Procedure

 

 

SHORT JUSTIFICATION

Your rapporteur fully supports the Just Transition Fund, in line with Parliament’s resolution of 10 October 2019 on the 2021-2027 multiannual financial framework and own resources.[1]

In that resolution, Parliament ‘calls on the Commission to ensure that the next MFF fully complies with the Paris agreement and stresses the urgent need for another quantum leap in political and financial efforts in order to achieve its objectives, as well as a just transition towards a carbon-neutral economy based on the highest social justice criteria so that no one and nowhere is left behind.’

The Rapporteur believes that the Just Transition Fund needs to be strengthened through an increased allocation, in order to enable it to reach its ambitious objectives. JTF financing should be accessed independently from other EU structural and investment funds. Therefore, the Rapporteur believes that, while it is necessary to ensure the highest degree of complementarity between EU funds, accessing the JTF should not be conditional on the ‘matching’ of other cohesion funds for the following reasons:

 

1.  The JTF is an additional instrument to the others deployed under EU cohesion policy. It will have a core role in overcoming one of the biggest challenges on the road to climate neutrality. Therefore, in line with the political importance of this Fund, its functioning and allocation should be as independent as possible from the other financing instruments, while maintaining complementarity with them.

2.  The request to match the allocation of the JTF with corresponding structural funds pre-empts the use of the respective funds. It should be up to the Member States to decide how to allocate their national envelope on the basis of their economic, social and territorial characteristics and provided that this allocation complies with the EU legal framework. By requiring the matching of JTF allocations with cohesion funding, we would impose a supplementary condition on Member States, thus creating an additional burden.

 

AMENDMENTS

The Committee on Budgets calls on the Committee on Regional Development, as the committee responsible, to take into account the following amendments:

<RepeatBlock-Amend><Amend>Amendment  <NumAm>1</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 1</Article>

 

Text proposed by the Commission

Amendment

(1) The regulatory framework governing the Union’s cohesion policy for the period from 2021 to 2027, in the context of the next multi-annual financial framework, contributes to the fulfilment of the Union’s commitments to implement the Paris Agreement and the United Nations Sustainable Development Goals by concentrating Union funding on green objectives. This Regulation implements one of the priorities set out in the Communication on the European Green Deal (‘the European Green Deal’)11 and is part of the Sustainable Europe Investment Plan12 providing dedicated financing under the Just Transition Mechanism in the context of cohesion policy to address the economic and social costs of the transition to a climate-neutral and circular economy, where any remaining greenhouse gas emissions are compensated by equivalent absorptions.

(1) The regulatory framework governing the Union’s cohesion policy for the period from 2021 to 2027, in the context of the next multi-annual financial framework, contributes to the fulfilment of the Union’s commitments to implement the Paris Agreement to limit the global temperature increase to below 1,5°C and the United Nations Sustainable Development Goals by concentrating Union funding on green objectives as well as the European Pillar of Social Rights. This Regulation implements one of the priorities set out in the Communication on the European Green Deal (‘the European Green Deal’)11 and is part of the Sustainable Europe Investment Plan12providing dedicated financing under the Just Transition Mechanism in the context of cohesion policy to address the economic and social costs of the transition to a climate-neutral and circular economy, where any remaining greenhouse gas emissions are compensated by equivalent absorptions.

_________________

_________________

11 COM(2019) 640 final, 11.12.2019.

11 COM(2019) 640 final, 11.12.2019.

12 COM(2020) 21, 14.1.2020.

12 COM(2020) 21, 14.1.2020.

</Amend>

<Amend>Amendment  <NumAm>2</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 3</Article>

 

Text proposed by the Commission

Amendment

(3) In order to be successful, the transition has to be fair and socially acceptable for all. Therefore, both the Union and the Member States must take into account its economic and social implications from the outset, and deploy all possible instruments to mitigate adverse consequences. The Union budget has an important role in that regard.

(3) In order to be successful, the transition has to be inclusive and socially acceptable for all, reduce inequalities and leave no one behind. Therefore, both the Union and the Member States, as well as the different regional and local actors, should take into account its environmental, social, labour market and economic implications from the outset, and deploy all possible instruments to mitigate adverse consequences and enhance the positive ones, such as the creation of new, decent and sustainable jobs or the improvement of air quality. The Union budget has an important role in that regard.

</Amend>

<Amend>Amendment  <NumAm>3</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 4</Article>

 

Text proposed by the Commission

Amendment

(4) As set out in the European Green Deal and the Sustainable Europe Investment Plan, a Just Transition Mechanism should complement the other actions under the next multi-annual financial framework for the period from 2021 to 2027. It should contribute to addressing the social and economic consequences of transitioning towards Union climate neutrality by bringing together the Union budget’s spending on climate and social objectives at regional level.

(4) As set out in the European Green Deal and the Sustainable Europe Investment Plan, mobilising at least EUR 1 trillion to support sustainable investments over the next decade through the Union budget and associated instruments, a Just Transition Mechanism  should notably support workers and citizens of the regions impacted by the transition, while complementing green transition actions of relevant programmes under the 2021-2027 MFF. It should contribute to addressing the social and economic consequences, in particular for workers affected in the process, towards Union climate neutrality by 2050 by bringing together the Union budget’s spending on climate and social objectives at regional level.

</Amend>

<Amend>Amendment  <NumAm>4</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 5</Article>

 

Text proposed by the Commission

Amendment

(5) This Regulation establishes the Just Transition Fund (‘JTF’) which is one of the pillars of the Just Transition Mechanism implemented under cohesion policy. The aim of the JTF is to mitigate the adverse effects of the climate transition by supporting the most affected territories and workers concerned. In line with the JTF specific objective, actions supported by the JTF should directly contribute to alleviate the impact of the transition by financing the diversification and modernisation of the local economy and by mitigating the negative repercussions on employment. This is reflected in the JTF specific objective, which is established at the same level and listed together with the policy objectives set out in Article [4] of Regulation EU [new CPR].

(5) This Regulation establishes the Just Transition Fund (‘JTF’) which is one of the pillars of the Just Transition Mechanism implemented under cohesion policy. The aim of the JTF is not only to mitigate and compensate the adverse effects of the climate transition but also to create and enhance the future positive effects by supporting the most affected territories as well as the people living there, and in particular the workers concerned, and to help achieve a fair transition towards climate neutrality by 2050 In line with the JTF specific objective, actions supported by the JTF should directly contribute to facilitating and catalysing the impact of the transition by financing the diversification, repositioning and modernisation of the local economy and by mitigating the negative repercussions on employment and standards of living. This is reflected in the JTF specific objective, which is established at the same level and listed together with the policy objectives set out in Article [4] of Regulation EU [new CPR]. Support should also be provided to territories where important structural changes take place after phasing out mining activities.

</Amend>

<Amend>Amendment  <NumAm>5</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 5 a (new)</Article>

 

Text proposed by the Commission

Amendment

 

(5a) The application of Union support and funding through the should ensure that all eligible projects in every Member State are consistent with the Union’s responsibility to achieve climate neutrality by 2050;

</Amend>

<Amend>Amendment  <NumAm>6</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 6</Article>

 

Text proposed by the Commission

Amendment

(6) In view of the importance of tackling climate change in line with the Union’s commitments to implement the Paris Agreement, the commitment regarding the United Nations Sustainable Development Goals and the increased ambition of the Union as proposed in the European Green Deal, the JTF should provide a key contribution to mainstream climate actions. Resources from the JTF own envelope are additional and come on top of the investments needed to achieve the overall target of 25% of the Union budget expenditure contributing to climate objectives. Resources transferred from the ERDF and ESF+ will contribute fully to the achievement of this target.

(6) In view of the importance of tackling climate change in line with the Union’s commitments to implement the Paris Agreement, the commitment regarding the United Nations Sustainable Development Goals and the increased ambition of the Union as proposed in the European Green Deal, cohesion policy and the JTF should provide a key contribution to mainstream climate actions. Resources from the JTF own envelope are additional and come on top of the investments needed to achieve the overall target of 25% of the Union budget expenditure contributing to climate objectives.Resources transferred on a voluntary basis from the ERDF and ESF+ may contribute further to the achievement of this target, and facilitating the green transition while fully contributing to new high-quality jobs, inclusive sustainable growth and regional development.

</Amend>

<Amend>Amendment  <NumAm>7</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 6 a (new)</Article>

 

Text proposed by the Commission

Amendment

 

(6a) In light of COVID 19 pandemic, and in order to demonstrate the Union’s commitment to achieve an economic recovery in a sustainable development path, it is necessary that the next MFF and the Recovery Plan for Europe entail an increase in the amount allocated for JTF.

</Amend>

<Amend>Amendment  <NumAm>8</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 6 b (new)</Article>

 

Text proposed by the Commission

Amendment

 

(6b) The resources of the JTF should be commensurate with its ambitious objective. In order to alleviate the effects of the transition to climate neutrality, the JTF should have a distinct financial allocation, independent of the allocation of other EU structural and investment funds. Access to the JTF should not be conditional upon transfers from other EU funds. Such independent access will enable the JTF to function adequately, deliver the expected results and generate predictability for beneficiaries.

</Amend>

<Amend>Amendment  <NumAm>9</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 7</Article>

 

Text proposed by the Commission

Amendment

(7) The resources from the JTF should complement the resources available under cohesion policy.

(7) The resources of the JTF alone will not be sufficient to address all the challenges relating to the transition to climate neutrality. For that reason the resources from the JTF should complement the resources available under cohesion policy.The voluntary contributions transferred from ERDF and ESF+ to the JTF is without prejudice to other objectives of cohesion policy and financial allocations programmed for other goals under the ERDF and ESF+. The contributions transferred should not exceed 20% of the resources originally allocated to a Member State for the ERDF and ESF+.

</Amend>

<Amend>Amendment  <NumAm>10</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 7 a (new)</Article>

 

Text proposed by the Commission

Amendment

 

(7a) The financial envelope constitutes the prime reference amount for the European Parliament and the Council during the annual budgetary procedure, in accordance with Article [17] of Interinstitutional Agreement [between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management]+ and may be increased by decision of the budgetary authority. In addition, the financial envelope for the JTF is able to be increased by additional contributions from Member States and by other resources in accordance with the applicable basic act and constitute external assigned revenue in addition to the cases set out in point (a) of Article 21(2) of the Financial Regulation.

 

_____________

 

+ Reference to be updated as appropriate to the interinstitutional agreement applicable for the period 2021-2027.

</Amend>

<Amend>Amendment  <NumAm>11</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 8</Article>

 

Text proposed by the Commission

Amendment

(8) Transitioning to a climate-neutral economy is a challenge for all Member States. It will be particularly demanding for those Member States that rely heavily on fossil fuels or greenhouse gas intensive industrial activities which need to be phased out or which need to adapt due to the transition towards climate neutrality and that lack the financial means to do so. The JTF should therefore cover all Member States, but the distribution of its financial means should reflect the capacity of Member States to finance the necessary investments to cope with the transition towards climate neutrality.

(8) Transitioning to a climate-neutral economy is a challenge for all Member States. It will be particularly demanding for those Member States that rely heavily on fossil fuels and, to a lesser extent, on greenhouse gas intensive industrial activities which need to be phased out or which need to adapt due to the transition towards climate neutrality and that lack the financial means to do so. The JTF should therefore cover all Member States, but the distribution of its financial means should support Member States in need, based on their financial capacity, to make the necessary investments to cope with the transition towards climate neutrality. Particular attention should be paid to insular or sparsely populated and remote areas where the transition in energy towards climate neutrality is more challenging to implement.

</Amend>

<Amend>Amendment  <NumAm>12</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 8 a (new)</Article>

 

Text proposed by the Commission

Amendment

 

(8a)  Horizontal financial rules adopted by the European Parliament and the Council on the basis of Article 322 of the Treaty on the Functioning of the European Union (TFEU) apply to this Regulation. Those rules are laid down in the Financial Regulation and determine in particular the procedure for establishing and implementing the budget through grants, procurement, prizes, indirect implementation, and provide for checks on the responsibility of financial actors. Rules adopted on the basis of Article 322 TFEU also concern the protection of the Union's budget in case of generalised deficiencies as regards the rule of law in the Member States, as the respect for the rule of law is an essential precondition for sound financial management and effective Union funding.

</Amend>

<Amend>Amendment  <NumAm>13</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 9 a (new)</Article>

 

Text proposed by the Commission

Amendment

 

(9a)  In accordance with Regulation (EU).../... [European Recovery Instrument (ERI)] and within the limits of resources allocated therein, recovery and resilience measures under the JTF should be carried out to address the unprecedented impact of the COVID-19 crisis. Such additional resources should be used in such a way as to ensure compliance with the time limits provided for in Regulation (EU) .../...[ERI];

</Amend>

<Amend>Amendment  <NumAm>14</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 10</Article>

 

Text proposed by the Commission

Amendment

(10) This Regulation identifies types of investments for which expenditure may be supported by the JTF. All supported activities should be pursued in full respect of the climate and environmental priorities of the Union. The list of investments should include those that support local economies and are sustainable in the long-term, taking into account all the objectives of the Green Deal. The projects financed should contribute to a transition to a climate-neutral and circular economy. For declining sectors, such as energy production based on coal, lignite, peat and oil shale or extraction activities for these solid fossil fuels, support should be linked to the phasing out of the activity and the corresponding reduction in the employment level. As regards transforming sectors with high greenhouse gas emission levels, support should promote new activities through the deployment of new technologies, new processes or products, leading to significant emission reduction, in line with the EU 2030 climate objectives and EU climate neutrality by 205013 while maintaining and enhancing employment and avoiding environmental degradation. Particular attention should also be given to activities enhancing innovation and research in advanced and sustainable technologies, as well as in the fields of digitalisation and connectivity, provided that such measures help mitigate the negative side effects of a transition towards, and contribute to, a climate-neutral and circular economy.

(10) This Regulation identifies types of investments for which expenditure may be supported by the JTF. All supported activities should be pursued in full respect of the climate and environmental priorities of the Union. The list of investments should include those that support local economies and are sustainable in the long-term, taking into account all the objectives of the Green Deal, while protecting, preserving and enhancing the Union's natural capital, and improving health and wellbeing with regard to environment-related risks and impacts. The projects financed should contribute to a transition to a climate-neutral and circular economy. For declining sectors, such as energy production based on coal, lignite, peat and oil shale or extraction activities for these solid fossil fuels, support should be linked to the phasing out of the activity the corresponding reduction in the employment level. As regards transforming sectors with high greenhouse gas emission levels, support should promote new activities through the deployment of new technologies, new processes or products, leading to significant emission reduction, in line with the EU 2030 climate objectives and EU climate neutrality by 205013 while maintaining and enhancing employment and avoiding environmental degradation. Support should also be available to indirect sectors and jobs that depend on fossil fuel value chains and greenhouse gas intensive industrial processes, for example for re-skilling workers. Particular attention should also be given to activities enhancing innovation and research in advanced and sustainable technologies, as well as in the fields of digitalisation and connectivity, provided that such measures help mitigate the negative side effects of a transition towards, and contribute to, a climate-neutral and circular economy.

_________________

_________________

13 As set out in “A Clean Planet for all European strategic long-term vision for a prosperous, modern, competitive and climate neutral economy”, Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee, the Committee of the Regions and the European Investment Bank - COM(2018) 773 final.

13 As set out in “A Clean Planet for all European strategic long-term vision for a prosperous, modern, competitive and climate neutral economy”, Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee, the Committee of the Regions and the European Investment Bank - COM(2018) 773 final.

</Amend>

<Amend>Amendment  <NumAm>15</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 10 a (new)</Article>

 

Text proposed by the Commission

Amendment

 

(10a) The JTF should also be used to support investment in social, education, health and cultural projects, on condition that it creates new jobs, in particular in regions that depend on a carbon intensive economy and that are affected by the structural transition to a resource efficient and low-carbon economy. Such investment would help to ensure that people living in regions subject to transition, have access to high-quality public services and services of general interest, for the purpose of underpinning a socially just transition that leaves no-one behind.

</Amend>

<Amend>Amendment  <NumAm>16</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 11</Article>

 

Text proposed by the Commission

Amendment

(11) To protect citizens who are most vulnerable to the climate transition, the JTF should also cover the up-skilling and reskilling of the affected workers, with the aim of helping them to adapt to new employment opportunities, as well as providing job-search assistance to jobseekers and their active inclusion into the labour market.

(11) To protect citizens who are most vulnerable to the climate transition, including those affected by energy poverty and those being considered most vulnerable as defined in the Regulation (EU) .../... [ESF+] the JTF should also cover the up-skilling and reskilling of the affected workers, with the aim of helping them to adapt to new employment opportunities, and achieving gender balance across sectors, as well as providing job-search assistance to jobseekers and their active inclusion into the labour market. The creation of a net employment effect with new high quality jobs should be an overall goal of the climate transition and the Just Transition Mechanism and the JTF.

</Amend>

<Amend>Amendment  <NumAm>17</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 11 a (new)</Article>

 

Text proposed by the Commission

Amendment

 

(11a) Inclusive policies and strategies are necessary to avoid exacerbating inequalities in a just transition process. The promotion of social cohesion should be a guiding principle for support under the JTF, promoting gender equality, improved conditions for migrants and refugees, young and older workers and low-skilled workers and ensuring no one is left behind.

</Amend>

<Amend>Amendment  <NumAm>18</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 11 b (new)</Article>

 

Text proposed by the Commission

Amendment

 

(11b) Member States and the Commission should ensure that the implementation of the priorities financed by the JTF contributes to the respect and the promotion of equality between women and men in accordance with Article 8 TFEU.

</Amend>

<Amend>Amendment  <NumAm>19</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 12</Article>

 

Text proposed by the Commission

Amendment

(12) In order to enhance the economic diversification of territories impacted by the transition, the JTF should provide support to productive investment in SMEs. Productive investment should be understood as investment in fixed capital or immaterial assets of enterprises in view of producing goods and services thereby contributing to gross-capital formation and employment. For enterprises other than SMEs, productive investments should only be supported if they are necessary for mitigating job losses resulting from the transition, by creating or protecting a significant number of jobs and they do not lead to or result from relocation. Investments in existing industrial facilities, including those covered by the Union Emissions Trading System, should be allowed if they contribute to the transition to a climate-neutral economy by 2050 and go substantially below the relevant benchmarks established for free allocation under Directive 2003/87/EC of the European Parliament and of the Council14 and if they result in the protection of a significant number of jobs. Any such investment should be justified accordingly in the relevant territorial just transition plan. In order to protect the integrity of the internal market and cohesion policy, support to undertakings should comply with Union State aid rules as set out in Articles 107 and 108 TFEU and, in particular, support to productive investments by enterprises other than SMEs should be limited to enterprises located in areas designated as assisted areas for the purposes of points (a) and (c) of Article 107(3) TFEU.

(12) In order to enhance the economic diversification and repositioning of territories impacted by the transition, the JTF should provide support to productive investment in SMEs. Productive investment should be understood as investment in fixed capital or immaterial assets of enterprises in view of producing goods and services thereby contributing to gross-capital formation and employment. For enterprises other than SMEs, productive investments should only be supported if they are necessary for mitigating job losses resulting from the transition, by creating or protecting a significant number of jobs and they do not lead to or result from relocation. Investments in existing industrial facilities, including those covered by the Union Emissions Trading System, should be allowed if they contribute to the transition to a climate-neutral economy by 2050 and go substantially below the relevant benchmarks established for free allocation under Directive 2003/87/EC of the European Parliament and of the Council14 and if they result in the protection of a significant number of jobs. Any such investment should be justified accordingly in the relevant territorial just transition plan and should be sustainable and consistent with the energy efficiency first principle. In order to protect the integrity of the internal market and cohesion policy, support to undertakings should comply with Union State aid rules as set out in Articles 107 and 108 TFEU and, in particular, support to productive investments by enterprises other than SMEs should be limited to enterprises located in areas designated as assisted areas for the purposes of all categories listed under Article 107(3) TFEU. Productive investment for enterprises should not distort competition between enterprises.

_________________

_________________

14 Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32).

14 Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32).

</Amend>

<Amend>Amendment  <NumAm>20</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 12 a (new)</Article>

 

Text proposed by the Commission

Amendment

 

(12a) EU State aid rules need to be flexible in order to ensure that regions in transition can attract private investment. When drafting new guidelines, the Commission should therefore also take into account the problems of structural change in the regions concerned, while ensuring fair competition in the internal market. State aid rules should allow all regions receiving assistance through the JTF to effectively address the threat of job losses at an early stage. Adequate flexibility under the applicable rules, regardless of the status of the assisted regions, should be allowed.

</Amend>

<Amend>Amendment  <NumAm>21</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 13</Article>

 

Text proposed by the Commission

Amendment

(13) In order to provide flexibility for the programming of the JTF resources under the Investment for jobs and growth goal, it should be possible to prepare a self-standing JTF programme or to programme JTF resources in one or more dedicated priorities within a programme supported by the European Regional Development Fund (‘ERDF’), the European Social Fund Plus (‘ESF+’) or the Cohesion Fund. In accordance with Article 21a of Regulation (EU) [new CPR], JTF resources should be reinforced with complementary funding from the ERDF and the ESF+. The respective amounts transferred from the ERDF and the ESF+ should be consistent with the type of operations set out in the territorial just transition plans.

(13) In order to provide flexibility and coherence for the programming of the JTF resources under the Investment for jobs and growth goal, Member States, in close cooperation with local and regional authorities and social partners, should programme JTF resources in one or more dedicated priorities within a programme supported by the European Regional Development Fund (‘ERDF’), the European Social Fund Plus (‘ESF+’) or the Cohesion Fund. In accordance with Article 21a of Regulation (EU) [new CPR], JTF resources may be reinforced on a voluntary basis with, complementary funding from the ERDF and the ESF+ where such complementarity is justified and does not prejudice the achievement of the objectives for which ERDF and the ESF+ are allocated. A self-standing JTF programme could be alternatively prepared where objective circumstances justify such a course of action.

</Amend>

<Amend>Amendment  <NumAm>22</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 13 a (new)</Article>

 

Text proposed by the Commission

Amendment

 

(13a)  The amounts transferred from the ERDF and the ESF+ respectively should be consistent with the type of operations set out in the territorial just transition plans.

</Amend>

<Amend>Amendment  <NumAm>23</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 13 b (new)</Article>

 

Text proposed by the Commission

Amendment

 

(13b) The implementation of JTF resources should minimise the administrative burden and costs for beneficiaries of the fund and for all actors involved in line with the simplification measures introduced by Regulation (EU).../... [new CPR].

</Amend>

<Amend>Amendment  <NumAm>24</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 14</Article>

 

Text proposed by the Commission

Amendment

(14) The JTF support should be conditional on the effective implementation of a transition process in a specific territory in order to achieve a climate-neutral economy. In that regard, Member States should prepare, in cooperation with the relevant stakeholders and supported by the Commission, territorial just transition plans, detailing the transition process, consistently with their National Energy and Climate Plans. To this end, the Commission should set up a Just Transition Platform, which would build on the existing platform for coal regions in transition to enable bilateral and multilateral exchanges of experience on lessons learnt and best practices across all affected sectors.

(14) The JTF support should be conditional on the effective implementation of a transition process in a specific territory in order to achieve a climate-neutral economy. In that regard, Member States will prepare, in close cooperation with all the relevant stakeholders and supported by the Commission, territorial just transition plans, detailing the transition process, consistently with their National Energy and Climate Plans. To this end, the Commission should set up a Just Transition Platform, which would build on the existing platform for coal regions in transition to enable bilateral and multilateral exchanges of experience on lessons learnt and best practices across all affected sectors. In addition, the territorial just transition plans should be consistent with the relevant territorial strategies referred to in Article [23] of Regulation (EU) .../...[new CPR], including Smart Specialisation Strategies (S3), the NECPs and the European Pillar of Social Rights, in order to shape and implement the JTF, comprised of a strategic coordination of local, regional, national and Union efforts for diversification of regional economies, while ensuring a just and fair transition.

</Amend>

<Amend>Amendment  <NumAm>25</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 14 a (new)</Article>

 

Text proposed by the Commission

Amendment

 

(14a) All Member States should endorse the Union's objective of climate neutrality by 2050 in order to make the ecological transition a success. Member States that have not committed to implement that objective should only get a partial access to their national allocation under the JTF. In such a case, regions in the Member States that have committed to implement that objective should be favoured.

</Amend>

<Amend>Amendment  <NumAm>26</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 15</Article>

 

Text proposed by the Commission

Amendment

(15) The territorial just transition plans should identify the territories most negatively affected, where JTF support should be concentrated and describe specific actions to be undertaken to reach a climate-neutral economy, notably as regards the conversion or closure of facilities involving fossil fuel production or other greenhouse gas intensive activities. Those territories should be precisely defined and correspond to NUTS level 3 regions or should be parts thereof. The plans should detail the challenges and needs of those territories and identify the type of operations needed in a manner that ensures the coherent development of climate-resilient economic activities that are also consistent with the transition to climate-neutrality and the objectives of the Green Deal. Only investments in accordance with the transition plans should receive financial support from the JTF. The territorial just transition plans should be part of the programmes (supported by the ERDF, the ESF+, the Cohesion Fund or the JTF, as the case may be) which are approved by the Commission.

(15) The territorial just transition plans should identify the territories most negatively affected, where JTF support should be concentrated and describe specific actions to be undertaken to reach a climate-neutral economy, enhance employment and prevent environmental degradation, notably as regards the conversion or closure of facilities involving fossil fuel production or other greenhouse gas intensive activities. Those territories should be precisely defined and are able to be part of or correspond to larger units such as NUTS level 3 regions. The plans should detail the challenges and needs of those territories and identify the type of operations needed in a manner that ensures the coherent development of climate-resilient economic activities that are also consistent with the transition to climate-neutrality and the objectives of the Green Deal. The plans should detail synergies and complementarities with other Union programmes and pillars of the Just Transition Mechanism and, where relevant, the Modernisation Fund to address identified development needs. Only investments in accordance with the transition plans should receive financial support from the JTF. The territorial just transition plans should be part of the programmes (supported by the ERDF, the ESF+, the Cohesion Fund where appropriate or the JTF, as the case may be) which are approved by the Commission. The Commission should provide technical assistance if requested by the Member States, in the event that they do not have the necessary administrative capacity or are facing difficulties in elaborating the territorial just transition plans.

</Amend>

<Amend>Amendment  <NumAm>27</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 15 a (new)</Article>

 

Text proposed by the Commission

Amendment

 

(15a) Taking into account the enormous efforts SMEs have to undertake in fighting the consequences of the Covid-19 crisis, local, regional and national authorities, enterprises and other entities applying for funding under the JTF should be supported by a straight-forward, comprehensive and easily manageable application and reporting process, which allows for targeted support.

</Amend>

<Amend>Amendment  <NumAm>28</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 16</Article>

 

Text proposed by the Commission

Amendment

(16) In order to enhance the result orientation of the use of JTF resources, the Commission, in line with the principle of proportionality, should be able to apply financial corrections in case of serious underachievement of targets established for the JTF specific objective.

(16) In order to ensure achieve the intended results of the use of JTF resources, the Commission, in line with the principle of proportionality, should be able to apply financial corrections in case of serious underachievement of targets established for the JTF specific objective.

</Amend>

<Amend>Amendment  <NumAm>29</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 18</Article>

 

Text proposed by the Commission

Amendment

(18) In order to set out an appropriate financial framework for the JTF, implementing powers should be conferred on the Commission to set out the annual breakdown of available allocations per Member State in accordance with Annex I.

(18) In order to set out an appropriate financial framework for the JTF, delegated powers should be conferred on the Commission to set out the annual breakdown of available allocations per Member State in accordance with Annex I. .

</Amend>

<Amend>Amendment  <NumAm>30</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 1 – paragraph 1</Article>

 

Text proposed by the Commission

Amendment

1. This Regulation establishes the Just Transition Fund (‘JTF’) to provide support to territories facing serious socio-economic challenges deriving from the transition process towards a climate-neutral economy of the Union by 2050.

1. This Regulation establishes the Just Transition Fund (‘JTF’) to provide support to territories facing serious socio-economic and geographical challenges deriving from the transition process towards a climate-neutral economy of the Union by 2050.

</Amend>

<Amend>Amendment  <NumAm>31</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 2 – paragraph 1</Article>

 

Text proposed by the Commission

Amendment

In accordance with the second subparagraph of Article [4(1)] of Regulation (EU) [new CPR], the JTF shall contribute to the single specific objective ‘enabling regions and people to address the social, economic and environmental impacts of the transition towards a climate-neutral economy’.

In accordance with the second subparagraph of Article [4(1)] of Regulation (EU) [new CPR], the JTF shall contribute to the single specific objective ‘enabling regions and people to address the social, economic and environmental impacts of the transition towards a climate-neutral economy’. The investments should aim at mitigating job losses resulting from the transition, by supporting the reconversion and the creation of new jobs.

</Amend>

<Amend>Amendment  <NumAm>32</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 3 – paragraph 2 – subparagraph 1</Article>

 

Text proposed by the Commission

Amendment

The resources for the JTF under the Investment for jobs and growth goal available for budgetary commitment for the period 2021-2027 shall be EUR 7.5 billion in 2018 prices, which may be increased, as the case may be, by additional resources allocated in the Union budget, and by other resources in accordance with the applicable basic act.

The resources for the JTF under the Investment for jobs and growth goal available for budgetary commitment for the period 2021-2027 shall be EUR 25 000 000 000  in 2018 prices. The financial envelope for the JTF may be additionally increased by voluntary contributions from Member States and by other resources in accordance with the applicable basic act, constituting external assigned revenue in addition to the cases listed in point (a) of Article 21(2) of the Financial Regulation.

</Amend>

<Amend>Amendment  <NumAm>33</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 3 – paragraph 2 – subparagraph 3</Article>

 

Text proposed by the Commission

Amendment

0.35% of the amount referred to in the first subparagraph shall be allocated to technical assistance at the initiative of the Commission.

A minimum share of 0,35% of the amount referred to in the first subparagraph shall be allocated to technical assistance at the initiative of the Commission, with the possibility of this share to be increased upon the request of a Member State based on the specificity of the territorial just transition plan.

</Amend>

<Amend>Amendment  <NumAm>34</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 3 – paragraph 3</Article>

 

Text proposed by the Commission

Amendment

3. The Commission shall adopt a decision by means of an implementing act setting out the annual breakdown of resources, including any additional resources referred to in paragraph 2, by Member State in accordance with the methodology set out in Annex I.

3. The Commission is empowered to adopt delegated acts in accordance with Article 10 in order to supplement this Regulation by adopting a decision that sets out the annual breakdown of resources, including any additional resources referred to in paragraph 2, by Member State in accordance with the methodology set out in Annex I.

</Amend>

<Amend>Amendment  <NumAm>35</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 3 – paragraph 3 – subparagraph 2 a (new)</Article>

 

Text proposed by the Commission

Amendment

 

For Member States that have not yet committed to the Union's objective of climate neutrality by 2050, access to the JTF shall be limited to one third  of their national allocation (“unfrozen part”), and the remaining two thirds (“frozen part”) shall be made available upon the acceptance of such a commitment. In such a case, regions that commit to implement that objective shall have access in priority to the frozen part of the national allocation.

</Amend>

<Amend>Amendment  <NumAm>36</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 3 – paragraph 4</Article>

 

Text proposed by the Commission

Amendment

4. By way of derogation from Article [21a] of Regulation (EU) [new CPR], any additional resources referred to in paragraph 2, allocated to the JTF in the Union budget or provided by other resources shall not require complementary support from the ERDF or the ESF+.

deleted

</Amend>

<Amend>Amendment  <NumAm>37</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 3a – Title</Article>

 

Text proposed by the Commission

Amendment

 

Resources from the European Union Recovery Instrument

</Amend>

<Amend>Amendment  <NumAm>38</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 3a– paragraph 1 – subparagraph 1</Article>

 

Text proposed by the Commission

Amendment

 

Measures referred to in Article 2 of Regulation (EU).../... [ERI] shall be implemented under the JTF with an amount of EUR 30 000 000 000 in 2018 prices of the amount referred to in point (a)(vi) of Article 3(2) of that Regulation, and subject to Article 4(3), (4) and (8) of that Regulation.

</Amend>

<Amend>Amendment  <NumAm>39</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 3a– paragraph 1 – subparagraph 2</Article>

 

Text proposed by the Commission

Amendment

 

This amount shall be considered to be other resources as referred to in Article 3(2) and shall constitute external assigned revenues in accordance with Article 21(5) of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council 1a.

 

They shall be made available for budgetary commitment under the Investment for jobs and growth goal for the years 2021 to 2024 in addition to the global resources set out in Article 3 as follows:

 

– 2021: EUR 7 495 797 242;

 

– 2022: EUR 7 496 636 094;

 

– 2023: EUR 7 496 371 621;

 

– 2024: EUR 7 495 899 220.

 

____________________________

 

1a Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (OJ L 193, 30.7.2018, p. 1–222).

</Amend>

<Amend>Amendment  <NumAm>40</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 3a– paragraph 1 – subparagraph 3</Article>

 

Text proposed by the Commission

Amendment

 

In addition, EUR 15 295 823 in 2018 prices shall be made available for administrative expenditure from the resources referred to in the first subparagraph.

</Amend>

<Amend>Amendment  <NumAm>41</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 3a– paragraph 2</Article>

 

Text proposed by the Commission

Amendment

 

2.  A minimum share of 0,35% of the amount referred to in the first subparagraph shall be allocated to technical assistance at the initiative of the Commission, with the possibility of this share to be increased upon the request of a Member State based on the specificity of the territorial just transition plan.

</Amend>

<Amend>Amendment  <NumAm>42</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 3a – paragraph 3</Article>

 

Text proposed by the Commission

Amendment

 

3.  The annual breakdown of the amount referred to in paragraph 1 by Member States shall be included in the Commission decision referred to in Article 3(3) in accordance with the methodology set out in Annex I.

</Amend>

<Amend>Amendment  <NumAm>43</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 3a– paragraph 4</Article>

 

Text proposed by the Commission

Amendment

 

4.  By way of derogation from Article 14(3) of the Financial Regulation, the de-commitment rules set out in [Chapter IV of Title VII] of Regulation (EU).../... [new CPR] shall apply to the budgetary commitments based on resources referred to in paragraph 1. By way of derogation from point (c) of Article 12(4) of the Financial Regulation, those resources shall not be used for a subsequent programme or action.

</Amend>

<Amend>Amendment  <NumAm>44</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 4 – paragraph 1</Article>

 

Text proposed by the Commission

Amendment

1. The JTF shall only support activities that are directly linked to its specific objective as set out in Article 2 and which contribute to the implementation of the territorial just transition plans established in accordance with Article 7.

1. The JTF shall only support activities that are directly linked to its specific objective as set out in Article 2 and which contribute to the implementation of the territorial just transition plans established in accordance with Article 7. The JTF resources shall be additional and shall not replace activities supported under the ERDF, ESF+, or other Union programmes.

</Amend>

<Amend>Amendment  <NumAm>45</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 4 – paragraph 2 – subparagraph 1 – point a</Article>

 

Text proposed by the Commission

Amendment

(a) productive investments in SMEs, including start-ups, leading to economic diversification and reconversion;

(a) productive and sustainable investments, particularly in SMEs and start-ups, leading to decent and sustainable job-creation, economic diversification and reconversion;

</Amend>

<Amend>Amendment  <NumAm>46</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 4 – paragraph 2 – subparagraph 1 – point b</Article>

 

Text proposed by the Commission

Amendment

(b) investments in the creation of new firms, including through business incubators and consulting services;

(b) investments in the creation of new firms, the diversification of already established firms or in alternative sustainable economic activities, including through business incubators and consulting services;

</Amend>

<Amend>Amendment  <NumAm>47</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 4 – paragraph 2 – subparagraph 1 – point c</Article>

 

Text proposed by the Commission

Amendment

(c) investments in research and innovation activities and fostering the transfer of advanced technologies;

(c) investments in research and innovation activities, including research institutions and universities, and fostering the transfer and adoption of advanced technologies;

</Amend>

<Amend>Amendment  <NumAm>48</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 4 – paragraph 2 – subparagraph 1 – point c a (new)</Article>

 

Text proposed by the Commission

Amendment

 

(ca) investments to promote transport systems which improve urban mobility and make it more sustainable, also through the use of smart technological solutions;

</Amend>

<Amend>Amendment  <NumAm>49</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 4 – paragraph 2 – subparagraph 1 – point d</Article>

 

Text proposed by the Commission

Amendment

(d) investments in the deployment of technology and infrastructures for affordable clean energy, in greenhouse gas emission reduction, energy efficiency and renewable energy;

(d) investments, particularly if demand-side measures are insufficient in the deployment of technology and infrastructures for affordable clean and sustainable energy, in reducing dependency on carbon-intensive energy and energy poverty, in greenhouse gas emission reduction, including investments in sustainable transport and infrastructure, inter alia fostering electrification and the use of biofuels, and investments in targeted energy-efficiency measures and renewable energy;

</Amend>

<Amend>Amendment  <NumAm>50</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 4 – paragraph 2 – subparagraph 1 – point d a (new)</Article>

 

Text proposed by the Commission

Amendment

 

(da) investments in energy efficiency and renewables, including investments in district heating;

</Amend>

<Amend>Amendment  <NumAm>51</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 4 – paragraph 2 – subparagraph 1 – point e</Article>

 

Text proposed by the Commission

Amendment

(e) investments in digitalisation and digital connectivity;

(e) investments in digitalisation and digital connectivity, including high speed networks such as fibre-optic cables to individual households in insular, remote, rural and sparsely populated areas;

</Amend>

<Amend>Amendment  <NumAm>52</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 4 – paragraph 2 – subparagraph 1 – point f</Article>

 

Text proposed by the Commission

Amendment

(f) investments in regeneration and decontamination of sites, land restoration and repurposing projects;

(f) investments in regeneration and decontamination of sites, land restoration and repurposing projects while ensuring consistency with the polluter pays principle.

</Amend>

<Amend>Amendment  <NumAm>53</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 4 – paragraph 2 – subparagraph 1 – point g a (new)</Article>

 

Text proposed by the Commission

Amendment

 

(ga) investments in social infrastructure and development of public services of general interest;

</Amend>

<Amend>Amendment  <NumAm>54</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 4 – paragraph 2 – subparagraph 1 – point h</Article>

 

Text proposed by the Commission

Amendment

(h) upskilling and reskilling of workers;

(h) upskilling and reskilling of workers and jobseekers, particularly those with under-exploited or low educational levels;

</Amend><Amend>Amendment  <NumAm>55</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 4 – paragraph 2 – subparagraph 1 – point i</Article>

 

Text proposed by the Commission

Amendment

(i)  job-search assistance to jobseekers;

(i)  active labour market and skills policies targeted towards future-oriented sectors and employment as well as job-search assistance to jobseekers;

</Amend>

<Amend>Amendment  <NumAm>56</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 4 – paragraph 2 – subparagraph 1 – point j</Article>

 

Text proposed by the Commission

Amendment

(j)  active inclusion of jobseekers;

(j) active inclusion of jobseekers ensuring equal access and gender equality.

</Amend><Amend>Amendment  <NumAm>57</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 4 – paragraph 2 – subparagraph 2</Article>

 

Text proposed by the Commission

Amendment

Additionally, the JTF may support, in areas designated as assisted areas in accordance with points (a) and (c) of Article 107(3) of the TFEU, productive investments in enterprises other than SMEs, provided that such investments have been approved as part of the territorial just transition plan based on the information required under point (h) of Article 7(2). Such investments shall only be eligible where they are necessary for the implementation of the territorial just transition plan.

Additionally, the JTF may support, in all the categories listed under Article 107(3) of the TFEU, productive investments in enterprises other than SMEs, provided that such investments have been approved as part of the territorial just transition plan based on the information required under point (h) of Article 7(2). Such investments shall only be eligible where they are necessary for the implementation of the territorial just transition plan.

</Amend>

<Amend>Amendment  <NumAm>58</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 5 – paragraph 1 – point c</Article>

 

Text proposed by the Commission

Amendment

(c) undertakings in difficulty, as defined in Article 2(18) of Commission Regulation (EU) No 651/201416;

(c) undertakings in difficulty, as defined in Article 2(18) of Commission Regulation (EU) No 651/201416, except those undertakings that can get support for green investments, new technology and infrastructure which can contribute to gas emission reduction, energy efficiency or production of energy from renewable sources;

_____________________

_______________________

16 Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty (OJ L 187, 26.6.2014, p. 1).

16 Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty (OJ L 187, 26.6.2014, p. 1).

</Amend>

<Amend>Amendment  <NumAm>59</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 5 – paragraph 1 – point e</Article>

 

Text proposed by the Commission

Amendment

(e) investment in broadband infrastructure in areas in which there are at least two broadband networks of equivalent category.

(e) investment in broadband infrastructure in areas in which there are at least two broadband networks of equivalent category. This exclusion shall not apply to insular, remote and sparsely populated areas where new individual high-speed infrastructure is required to reach individual households.

</Amend>

<Amend>Amendment  <NumAm>60</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 6 – paragraph 1 – subparagraph 1</Article>

 

Text proposed by the Commission

Amendment

The JTF resources shall be programmed for the categories of regions where the territories concerned are located, on the basis of the territorial just transition plans established in accordance with Article 7 and approved by the Commission as part of a programme or a programme amendment. The resources programmed shall take the form of one or more specific programmes or of one or more priorities within a programme.

The JTF resources shall be programmed for the categories of regions where the territories concerned are located, on the basis of the territorial just transition plans established in accordance with Article 7 and approved by the Commission as part of a programme or a programme amendment. The resources programmed shall take the form of one or more priorities within a programme supported by the European Regional Development Fund (‘ERDF’), the European Social Fund Plus(‘ESF+’) or the Cohesion Fund, or one or more specific programmes where objective circumstances justify such a course of action.

</Amend>

<Amend>Amendment  <NumAm>61</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 6 – paragraph 1 – subparagraph 1 a (new)</Article>

 

Text proposed by the Commission

Amendment

 

The programming of JTF resources shall be in accordance with Article [6] of Regulation (EU) .../...[new CPR] and ensure the direct involvement of authorities of targeted territories at NUTS2 or NUTS3 level, namely via the allocation of resources through regional programmes, where such programmes are in place, or be carried out through the use of integrated territorial tools set out under Articles [22 to 28] of Regulation (EU).../...[new CPR].

</Amend>

<Amend>Amendment  <NumAm>62</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 6 – paragraph 1 – subparagraph 2</Article>

 

Text proposed by the Commission

Amendment

The Commission shall only approve a programme where the identification of the territories most negatively affected by the transition process, contained within the relevant territorial just transition plan, is duly justified and the relevant territorial just transition plan is consistent with the National Energy and Climate Plan of the Member State concerned.

The Commission shall only approve a programme where the identification of the territories most negatively affected by the transition process, contained within the relevant territorial just transition plan, is duly justified and the relevant territorial just transition plan is consistent with the National Energy and Climate Plan of the Member State concerned as well as existing relevant regional and local strategies.

</Amend>

<Amend>Amendment  <NumAm>63</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 6 – paragraph 2</Article>

 

Text proposed by the Commission

Amendment

2. The JTF priority or priorities shall comprise the JTF resources consisting of all or part of the JTF allocation for the Member States and the resources transferred in accordance with Article [21a] of Regulation (EU) [new CPR]. The total of the ERDF and ESF+ resources transferred to the JTF priority shall be at least equal to one and a half times the amount of support from the JTF to that priority but shall not exceed three times that amount.

2. The JTF priority or priorities may comprise the JTF resources consisting of all or part of the JTF allocation for the Member States and the resources voluntarily transferred in accordance with Article [21a] of Regulation (EU) [new CPR]. The total of the ERDF and ESF+ resources voluntarily transferred to the JTF priority shall not jeopardise the adequate funding to the priorities under the ERDF and ESF+. The contributions transferred shall not exceed 20% of the resources originally allocated to a Member State for the ERDF and ESF+ and shall not exceed 60 % of the amount of support from the JTF priority.

</Amend>

<Amend>Amendment  <NumAm>64</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 7 – paragraph 1</Article>

 

Text proposed by the Commission

Amendment

1. Member States shall prepare, together with the relevant authorities of the territories concerned, one or more territorial just transition plans covering one or more affected territories corresponding to level 3 of the common classification of territorial units for statistics (‘NUTS level 3 regions’) as established by Regulation (EC) No 1059/2003 of the European Parliament and of the Council as amended by Commission Regulation (EC) No 868/201417 or parts thereof, in accordance with the template set out in Annex II. Those territories shall be those most negatively affected based on the economic and social impacts resulting from the transition, in particular with regard to expected job losses in fossil fuel production and use and the transformation needs of the production processes of industrial facilities with the highest greenhouse gas intensity.

1. Member States shall prepare, in full compliance with the partnership principle together with all the relevant authorities and social partners, notably at local and regional level of the territories concerned,in accordance with Article [6] of the Regulation (EU).../... [new CPR], one or more territorial just transition plans covering one or more affected territories, which can be part of or correspond to larger levels such as corresponding to level 3 of the common classification of territorial units for statistics (‘NUTS level 3 regions’) as established by Regulation (EC) No 1059/2003 of the European Parliament and of the Council as amended by Commission Regulation (EC) No 868/201417 or parts thereof, in accordance with the template set out in Annex II. Those territories shall be those most negatively affected based on the economic, labour market and social impacts resulting from the transition, in particular with regard to expected job losses in fossil fuel production and use and the transformation needs of the production processes of industrial facilities with the highest greenhouse gas intensity. Objective and transparent criteria shall be used to designate the targeted areas and define the distribution of funding among them. If requested by a Member State, the Commission shall provide technical assistance on the elaboration of the territorial just transition plans.

_________________

_________________

17 Regulation (EC) No 1059/2003 of the European Parliament and of the Council of 26 May 2003 on the establishment of a common classification of territorial units for statistics (NUTS) (OJ L 154 21.6.2003, p. 1).

17 Regulation (EC) No 1059/2003 of the European Parliament and of the Council of 26 May 2003 on the establishment of a common classification of territorial units for statistics (NUTS) (OJ L 154 21.6.2003, p. 1).

</Amend>

<Amend>Amendment  <NumAm>65</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 7 – paragraph 2 – point c</Article>

 

Text proposed by the Commission

Amendment

(c) an assessment of the transition challenges faced by the most negatively affected territories, including the social, economic, and environmental impact of the transition to a climate-neutral economy, identifying the potential number of affected jobs and job losses, the development needs and objectives, to be reached by 2030 linked to the transformation or closure of greenhouse gas-intensive activities in those territories;

(c) an assessment of the transition challenges faced by the most negatively affected territories, including the social,  economic, and environmental impact and the co-benefits, in particular in terms of health and well-being, of the transition to a fully renewables-based, highly resource and energy-efficient and climate-neutral economy, identifying the potential number of affected jobs and job losses as well as potential job creation, the development needs and objectives, to be reached by 2030 linked to the  transformation or closure of greenhouse gas-intensive activities in those territories;

</Amend>

<Amend>Amendment  <NumAm>66</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 7 – paragraph 2 – point d</Article>

 

Text proposed by the Commission

Amendment

(d) a description of the expected contribution of the JTF support to addressing the social, economic and environmental impacts of the transition to a climate-neutral economy;

(d) a description of the expected contribution of the JTF support to addressing the social, economic and environmental challenges and opportunities of the transition to a fully renewables-based, highly resource- and energy-efficient, circular and climate-neutral economy with a detailed list of actions planned;

</Amend>

<Amend>Amendment  <NumAm>67</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 7 – paragraph 2 – point j</Article>

 

Text proposed by the Commission

Amendment

(j) synergies and complementarities with other Union programmes and pillars of the Just Transition Mechanism to address identified development needs.

(j) synergies and complementarities with other Union programmes and pillars of the Just Transition Mechanism and, where relevant, the Modernisation Fund to address identified development needs in the territory of the plan.

</Amend>

<Amend>Amendment  <NumAm>68</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 7 – paragraph 3</Article>

 

Text proposed by the Commission

Amendment

3. The preparation and implementation of territorial just transition plans shall involve the relevant partners in accordance with Article [6] of Regulation (EU) [new CPR].

3. The preparation and implementation of territorial just transition plans shall involve all the relevant partners in accordance with Article [6] of Regulation (EU) [new CPR] and the relevant stakeholders at the geographical level of the affected territories referred in paragraph 1 of this Article, in a bottom-up approach.

</Amend>

<Amend>Amendment  <NumAm>69</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article> Article 7 – paragraph 4 – subparagraph 1</Article>

 

Text proposed by the Commission

Amendment

Territorial just transition plans shall be consistent with the territorial strategies referred to in Article [23] of Regulation (EU) [new CPR], with relevant smart specialisation strategies, the NECPs and the European Pillar of Social Rights.

Territorial just transition plans shall be consistent with the territorial strategies referred to in Article [23] of Regulation (EU) [new CPR], with relevant smart specialisation strategies, preferably defining the framework of priorities and implementation processes, the NECPs and the European Pillar of Social Rights and existing regional and local strategies.

</Amend>

<Amend>Amendment  <NumAm>70</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 10 – paragraph 2</Article>

 

Text proposed by the Commission

Amendment

2. The power to adopt delegated acts referred to in Article 8(4) shall be conferred on the Commission for an indeterminate period of time from [the date of the entry into force of this Regulation].

2. The power to adopt delegated acts referred to in Articles 3(3) and 8(4) shall be conferred on the Commission for an indeterminate period of time from [the date of the entry into force of this Regulation].

</Amend>

<Amend>Amendment  <NumAm>71</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 10 – paragraph 3</Article>

 

Text proposed by the Commission

Amendment

3. The delegation of power referred to in Article 8(4) may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

3. The delegation of power referred to in Articles 3(3) and 8(4) may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

</Amend>

<Amend>Amendment  <NumAm>72</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 10 – paragraph 6</Article>

 

Text proposed by the Commission

Amendment

6. A delegated act adopted pursuant to Article 8(4) shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.

6. A delegated act adopted pursuant to Articles 3(3) and 8(4) shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.

</Amend>

<Amend>Amendment  <NumAm>73</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Annex I – paragraph 1 – point b</Article>

 

Text proposed by the Commission

Amendment

(b) the allocations resulting from the application of point (a) are adjusted to ensure that no Member State receives an amount exceeding EUR 2 billion. The amounts exceeding EUR 2 billion per Member State are redistributed proportionally to the allocations of all other Member States. The Member States shares are recalculated accordingly;

(b) the allocations resulting from the application of point (a) are adjusted to ensure that no Member State receives an amount exceeding 20 % of the total JTF allocations. The amounts exceeding the 20 % threshold are redistributed proportionally to the allocations of all other Member States. The Member States shares are recalculated accordingly;

</Amend>

<Amend>Amendment  <NumAm>74</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Annex I – paragraph 1 – point b a (new)</Article>

 

Text proposed by the Commission

Amendment

 

(ba) two thirds of the national allocation is conditional on the Member State's endorsement and commitment to the Union's objective of climate neutrality by 2050. That amount shall be put in a reserve until the Member State concerned accepts that commitment. In such a case, the Member State's regions that endorse and commit to implement the Union's objective of climate neutrality by 2050 shall get a prioritized access to the funds.

</Amend>

</RepeatBlock-Amend>


PROCEDURE – COMMITTEE ASKED FOR OPINION

Title

Establishing the Just Transition Fund

References

COM(2020)0022 – C9-0007/2020 – 2020/0006(COD)

Committee responsible

 Date announced in plenary

REGI

29.1.2020

 

 

 

Opinion by

 Date announced in plenary

BUDG

29.1.2020

Associated committees - date announced in plenary

27.5.2020

Rapporteur

 Date appointed

Siegfried Mureşan

5.3.2020

Discussed in committee

4.5.2020

 

 

 

Date adopted

24.6.2020

 

 

 

Result of final vote

+:

–:

0:

33

5

2

Members present for the final vote

Rasmus Andresen, Clotilde Armand, Robert Biedroń, Anna Bonfrisco, Olivier Chastel, Lefteris Christoforou, David Cormand, Paolo De Castro, José Manuel Fernandes, Eider Gardiazabal Rubial, Alexandra Geese, Valentino Grant, Valérie Hayer, Eero Heinäluoma, Niclas Herbst, Monika Hohlmeier, Mislav Kolakušić, Moritz Körner, Joachim Kuhs, Zbigniew Kuźmiuk, Ioannis Lagos, Hélène Laporte, Pierre Larrouturou, Janusz Lewandowski, Margarida Marques, Siegfried Mureşan, Victor Negrescu, Andrey Novakov, Jan Olbrycht, Dimitrios Papadimoulis, Karlo Ressler, Bogdan Rzońca, Nicolae Ştefănuță, Nils Torvalds, Nils Ušakovs, Johan Van Overtveldt, Angelika Winzig

Substitutes present for the final vote

Damian Boeselager, Herbert Dorfmann, Petros Kokkalis

 

 


 

FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION

33

+

ECR

Zbigniew Kuźmiuk, Bogdan Rzońca

GUE/NGL

Petros Kokkalis, Dimitrios Papadimoulis

PPE

Lefteris Christoforou, Herbert Dorfmann, José Manuel Fernandes, Niclas Herbst, Monika Hohlmeier, Janusz Lewandowski, Siegfried Mureşan, Andrey Novakov, Jan Olbrycht, Karlo Ressler, Angelika Winzig

RENEW

Clotilde Armand, Olivier Chastel, Valérie Hayer, Moritz Körner, Nils Torvalds, Nicolae Ştefănuță

S&D

Robert Biedroń, Paolo De Castro, Eider Gardiazabal Rubial, Eero Heinäluoma, Pierre Larrouturou, Margarida Marques, Victor Negrescu, Nils Ušakovs

VERTS/ALE

Rasmus Andresen, Damian Boeselager, David Cormand, Alexandra Geese

 

5

-

ID

Anna Bonfrisco, Valentino Grant, Joachim Kuhs, Hélène Laporte

NI

Ioannis Lagos

 

2

0

ECR

Johan Van Overtveldt

NI

Mislav Kolakušić

 

Key to symbols:

+ : in favour

- : against

0 : abstention

 

 


 

 

 

OPINION OF THE COMMITTEE ON ECONOMIC AND MONETARY AFFAIRS (24.6.2020)

<CommissionInt>for the Committee on Regional Development</CommissionInt>


<Titre>on the proposal for a regulation of the European Parliament and of the Council establishing the Just Transition Fund</Titre>

<DocRef>(COM(2020)0022 – C9‑0007/2020 – 2020/0006(COD))</DocRef>

Rapporteur for opinion: <Depute>Henrike Hahn</Depute>

 

 

AMENDMENTS

The Committee on Economic and Monetary Affairs calls on the Committee on Regional Development, as the committee responsible, to take into account the following amendments:

<RepeatBlock-Amend><Amend>Amendment  <NumAm>1</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 1</Article>

 

Text proposed by the Commission

Amendment

(1) The regulatory framework governing the Union’s cohesion policy for the period from 2021 to 2027, in the context of the next multi-annual financial framework, contributes to the fulfilment of the Union’s commitments to implement the Paris Agreement and the United Nations Sustainable Development Goals by concentrating Union funding on green objectives. This Regulation implements one of the priorities set out in the Communication on the European Green Deal (‘the European Green Deal’)11 and is part of the Sustainable Europe Investment Plan12 providing dedicated financing under the Just Transition Mechanism in the context of cohesion policy to address the economic and social costs of the transition to a climate-neutral and circular economy, where any remaining greenhouse gas emissions are compensated by equivalent absorptions.

(1) The regulatory framework governing the Union’s cohesion policy for the period from 2021 to 2027, in the context of the next multi-annual financial framework, contributes to the fulfilment of the Union’s commitments to implement the Paris Agreement to limit the increase in the global temperature to 1,5 ° C above pre-industrial levels, the European Pillar of Social Rights and the United Nations Sustainable Development Goals by concentrating Union funding on green and social objectives. This Regulation implements one of the priorities set out in the Communication on the European Green Deal (‘the European Green Deal’)11 and is part of the Sustainable Europe Investment Plan12 providing dedicated financing under the Just Transition Mechanism in the context of cohesion policy to address the economic, social energy sustainability, energy security, energy affordability and regional challenges and opportunities of the transition to a sustainable, climate-neutral and climate-resilient, resource-efficient, and fully circular economy by 2050 at the latest, where there are no net emissions of greenhouse gases and while aiming to avoid adverse impacts on human health and the environment related to, inter alia, the deterioration of biodiversity and ecosystems, overconsumption of resources, air and chemical pollution, and waste.

__________________

__________________

11 COM(2019) 640 final, 11.12.2019.

11 COM(2019) 640 final, 11.12.2019.

12 COM(2020) 21, 14.1.2020.

12 COM(2020) 21, 14.1.2020.

</Amend>

<Amend>Amendment  <NumAm>2</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 2</Article>

 

Text proposed by the Commission

Amendment

(2) The transition to a climate-neutral and circular economy constitutes one of the most important policy objectives for the Union. On 12 December 2019, the European Council endorsed the objective of achieving a climate-neutral Union by 2050, in line with the objectives of the Paris Agreement. While fighting climate change and environmental degradation will benefit all in the long term and provides opportunities and challenges for all in the medium term, not all regions and Member States start their transition from the same point or have the same capacity to respond. Some are more advanced than others, whereas the transition entails a wider social and economic impact for those regions that rely heavily on fossil fuels - especially coal, lignite, peat and oil shale - or greenhouse gas intensive industries. Such a situation not only creates the risk of a variable speed transition in the Union as regards climate action, but also of growing disparities between regions, detrimental to the objectives of social, economic and territorial cohesion.

(2) The transition to a sustainable, climate-neutral and climate-resilient, resource-efficient and fully circular economy by 2050 at the latest constitutes one of the most important policy objectives for the Union and will require significant new investment, particularly in new and innovative technologies. On 12 December 2019, the European Council endorsed the New Green Deal and the objective of achieving a climate-neutral Union by 2050, in line with the objectives of the Paris Agreement. On 17 April 2020, the European Parliament stressed that the objective of climate neutrality should inform the policy responses to combat the COVID-19 pandemic and its consequences and that the Green Deal strategy should be at the core of the recovery and reconstruction of the European economy. While fighting climate change and environmental degradation will benefit all in the long term and provides opportunities and challenges for all in the medium term, not all regions and Member States start their transition from the same point or have the same capacity to respond. Some are more advanced than others, whereas the transition entails a wider social and economic impact for those regions that currently rely heavily on fossil fuels or greenhouse gas intensive industries or industries manufacturing products that are incompatible with the climate-neutrality objective. Such a situation may not only endanger the transition in the Union as regards climate action, but may also lead to growing disparities between regions, detrimental to the objectives of social, economic and territorial cohesion. Member States should be given the necessary means to achieve the Union targets for carbon neutrality and prevent regions from being left behind.

</Amend>

<Amend>Amendment  <NumAm>3</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 3</Article>

 

Text proposed by the Commission

Amendment

(3) In order to be successful, the transition has to be fair and socially acceptable for all. Therefore, both the Union and the Member States must take into account its economic and social implications from the outset, and deploy all possible instruments to mitigate adverse consequences. The Union budget has an important role in that regard.

(3) In order to be successful, the transition has to be fair and socially inclusive and to contribute to the creation of decent and quality jobs, eradication of poverty and the sustainable development of the Union while countering unemployment, social marginalisation and economic downturns in the most exposed regions and taking into account energy sustainability, energy security and affordability challenges. Therefore, both the Union and the Member States must take into account its economic, environmental, social and regional implications from the outset, and deploy all possible instruments to facilitate the necessary structural changes and mitigate adverse consequences on affected workers and other stakeholders particularly affected by the transition. The Union budget should play an important role in that regard.

</Amend>

<Amend>Amendment  <NumAm>4</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 3 a (new)</Article>

 

Text proposed by the Commission

Amendment

 

(3 a) By 2030, the transition is expected to create an additional 1, 2 million jobs in the Union, in addition to the 12 million new jobs already expected. According to Commission’s estimates1a, in coal regions, where more than 200 000 jobs are directly related to coal activity, up to 315 000 jobs can be created by 2030 through deploying clean energy technologies, and more than 460 000 jobs by 2050. Coal regions alone could satisfy 60 % of the projected deployment of clean energy technology required to achieve the ambitious targets of carbon neutrality. Moreover, the development of clean energy projects in coal regions benefits from the availability of infrastructure and land, the presence of already trained personnel with electrical and mechanical skills that are particularly suitable for reemployment in the renewable energy industry, and industrial heritage already in place.

 

__________________

 

1a European Commission, Joint Research Centre, Clean energies technologies in coal regions: opportunities for jobs and growth, 2020, https://op.europa.eu/en/publication-detail/-/publication/cdd4593e-1d56-11ea-95ab-01aa75ed71a1

</Amend>

<Amend>Amendment  <NumAm>5</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 4</Article>

 

Text proposed by the Commission

Amendment

(4) As set out in the European Green Deal and the Sustainable Europe Investment Plan, a Just Transition Mechanism should complement the other actions under the next multi-annual financial framework for the period from 2021 to 2027. It should contribute to addressing the social and economic consequences of transitioning towards Union climate neutrality by bringing together the Union budget’s spending on climate and social objectives at regional level.

(4) As set out in the European Green Deal and the Sustainable Europe Investment Plan, a Just Transition Mechanism should not be considered as a stand alone funding instrument, but to complement the other actions under the next multi-annual financial framework for the period from 2021 to 2027, in particular taking into account the socio-economic and environmental impacts on workers and communities most affected by the transition from the current dependence on coal and carbon. It should contribute to addressing the social, economic and regional consequences of transitioning towards Union climate neutrality and reaching all of the Union’s other environmental objectives by bringing together the Union budget’s spending on climate and social objectives at regional level, contributing to a robust and sustainable economy, with jobs able to provide decent standard of living and positive effects on public health.

</Amend>

<Amend>Amendment  <NumAm>6</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 5</Article>

 

Text proposed by the Commission

Amendment

(5) This Regulation establishes the Just Transition Fund (‘JTF’) which is one of the pillars of the Just Transition Mechanism implemented under cohesion policy. The aim of the JTF is to mitigate the adverse effects of the climate transition by supporting the most affected territories and workers concerned. In line with the JTF specific objective, actions supported by the JTF should directly contribute to alleviate the impact of the transition by financing the diversification and modernisation of the local economy and by mitigating the negative repercussions on employment. This is reflected in the JTF specific objective, which is established at the same level and listed together with the policy objectives set out in Article [4] of Regulation EU [new CPR].

(5) This Regulation establishes the Just Transition Fund (‘JTF’) which is one of the pillars of the Just Transition Mechanism implemented under cohesion policy. The JTF should strive to develop synergies and complementarities with the other pillars of the Just Transition Mechanism in order to ensure that all three pillars are working towards the same objectives and should not crowd out private sector investment that will be facilitated through the Just Transition Mechanism. It should support the overarching objectives of the European Green Deal and be in line with the framework for sustainable activities set out in Regulation (EU) .../... [EU Taxonomy Regulation], in order to tackle climate and environmental challenges while leaving no one behind. The aim of the JTF is to address the challenges and opportunities of the climate transition by providing targeted investment in the regions affected, with a particular focus on sustainable economic activities, by ensuring the take-up of new and innovative sustainable projects and by supporting the most affected territories, workers and local communities concerned to adapt their industrial and economic structures while, at the same time, restoring the regions' long-term competitiveness as well as enhancing social and economic cohesion. In line with the JTF specific objective, actions supported by the JTF should directly contribute to facilitate and support the transition process by financing the diversification and modernisation of the local economy and by allowing the creation of new employment opportunities, including through early consultation of  all relevant stakeholders. This is reflected in the JTF specific objective, which is established at the same level and listed together with the policy objectives set out in Article [4] of Regulation EU[new CPR]. Recipients of JTF funds should comply with the Union’s Treaty-based fundamental values.

</Amend>

<Amend>Amendment  <NumAm>7</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>