MEPs to adopt €17.5 billion package for a fair transition to a green economy
On Tuesday, Parliament is expected to approve the Just Transition Fund, one of the EU’s key tools to support regions in their 2050 climate-neutral transition.
The Just Transition Fund (JTF) will finance job seeking assistance, up-skilling and reskilling, and the active inclusion of workers and jobseekers in the changing economy. It will also support micro-enterprises, business incubators and research institutions, as well as investments in new energy technologies, energy efficiency and sustainable local mobility. However, investments in fossil fuels, waste incineration and decommissioning or construction of nuclear power stations will not be eligible for grants under the Fund.
As part of the Fund, member states will have to focus on the EU’s least developed and outermost regions and islands. At the initiative of Parliament, a “Green Rewarding Mechanism” will be introduced if JTF resources are increased after 31 December 2024. These additional resources will be distributed among member states, with those that succeed in reducing industrial greenhouse emissions receiving more funding.
The JTF comprises EUR 7.5 billion from the 2021-2027 Multiannual Financial Framework and an additional EUR 10 billion from the EU Recovery Instrument. It is the first pillar of the Just Transition Mechanism, a key tool to support regions, industries and workers who are expected to face the greatest challenges from implementing the European Green Deal.
Procedure: Ordinary legislative procedure
Debate: Monday, 17 May
Vote and result: Tuesday, 18 May