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

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.

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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.

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.

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.

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.

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;

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.

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.

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.

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+.

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.

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

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.

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.

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];

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.

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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.

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.

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.

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.

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.

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.

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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).

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.

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.

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.

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].

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.

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.

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.

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.

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.

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. .

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.

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.

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.

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.

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.

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.

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

Text proposed by the Commission

Amendment

Resources from the European Union Recovery Instrument

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.

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.

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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).

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.

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.

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.

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.

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.

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;

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;

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;

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;

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;

Text proposed by the Commission

Amendment

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

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;

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.

Text proposed by the Commission

Amendment

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

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;

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;

Text proposed by the Commission

Amendment

(j)  active inclusion of jobseekers;

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

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.

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;

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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).

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.

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.

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].

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.

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.

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.

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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).

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;

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;

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.

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.

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.

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].

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.

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.

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;

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.

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

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

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.

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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.

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.

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.

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.

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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

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.

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.

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, the European Pillar of Social Rights 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 at least 25% of the Union budget expenditure contributing to climate objectives. Resources transferred voluntarily by Member States from the ERDF and ESF+, according to the development needs identified at regional and local level in the national just transition plans, will contribute to the achievement of this target.

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 should be adequate and commensurate with its ambitious objectives and complement the resources available under cohesion policy but should by no means replace such investments and should not lead to cuts or mandatory transfers from other Union funds covered by Regulation (EU) .../... [new Common Provisions Regulation]. On the basis of the European Investment Bank's guidelines, funding should be permitted for up to 75 %, or more in case of severe economic downturns, of the assumed costs of a project supported by the JTF.

Text proposed by the Commission

Amendment

(7a) The Fund should be financed through a reinforced MFF 2021-2027 and, subject to a prior impact assessment, by additional fresh resources which may come from the introduction of Union new resources such as but not limited to taxes on enterprises, digital, finance, plastics, carbon and income from emissions trading schemes;

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 sustainable and climate-neutral economy is both a challenge and an opportunity for all Member States in order to better respond to future crises and achieve economic and social prosperity within the planetary boundaries. The transition will be particularly demanding for those Member States that rely heavily on fossil fuels or greenhouse gas intensive industrial activities or manufacturing of products incompatible with the climate-neutrality objective 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. No territory or citizen should be left behind. The JTF should therefore cover all Member States, but the distribution of its financial means should reflect the needs and capacity of Member States to finance the necessary investments to enable, facilitate and accelerate the transition towards climate neutrality and a sustainable Europe.

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. The Commission should also publish all relevant statistics and information to better understand and to evaluate the allocation key between Member States.

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 objectives and priorities of the Union and should be in line with the Union framework for sustainable activities laid down in Regulation (EU) .../... [EU Taxonomy Regulation]. The list of investments should prioritise those that support people, workers, communities and local economies and are sustainable in the medium- and long-term, being fully in line with all the objectives of the Green Deal, the Paris Agreement and the European Pillar of Social Rights. The projects financed should contribute to a transition to a sustainable, climate-neutral, climate-resilient, resource-efficient and fully circular economy while not harming any of the Union’s environmental objectives, and should support the objective of restoring the affected regions' long-term competitiveness. For declining sectors, such as energy production based on fossil fuels 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, while ensuring effective cooperation with all the relevant stakeholders to find a balanced yet ambitious timeframe for such actions. 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 2050 at the latest, 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 and facilitate a transition towards, and contribute to, a climate-neutral and circular economy.

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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.

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) Securing sustainable employment opportunities for workers and territories affected by the climate transition is a fundamental objective of the JTF. To protect citizens and employees who are most vulnerable to the climate transition, the JTF should also cover the professional training, new skills development, the up-skilling and reskilling of the affected workers and job seekers, with the aim of helping them to requalify and adapt to new sustainable employment opportunities as well as providing job-search assistance to jobseekers and their active inclusion into the labour market, taking into account the need to ensure equal opportunities for all and achieving gender balance across sectors.

Text proposed by the Commission

Amendment

(11a) The COVID-19 pandemic and its health and economic effects has impacted the Union and the priorities of the Commission. The COVID-19 crisis also revealed the interdependence between the ecosystems and our economy as well as the heavy dependence of the Union economic system on long supply chains. That has reinforced the importance of the JTF and the need to allocate adequate resources to address the challenges to achieve the transition to a sustainable and fully circular economy and to strengthen the resilience of the Union economies, especially in the most affected regions. The JTF and the cohesion funds allocations should avoid increasing the disparities between Member States after the Covid-19 crisis. The Commission amended proposal on the JTF proposes to increase the size of the Just Transition Fund to above €40 billion.

Text proposed by the Commission

Amendment

(11b) Member States and the Commission should ensure that the implementation of the priorities financed under the JTF contributes to the respect and the promotion of equality between women and men in accordance with Article 8 TFEU. Gender equality objectives and the economic independence of women should be ensured in all dimensions and in all stages of the preparation, monitoring, implementation and evaluation of operational programmes in a timely and consistent manner.

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 reconversion of territories impacted by the transition, the JTF should provide support to sustainable and productive investment with a focus on SMEs, micro-enterprises and entrepreneurs, social enterprises and cooperatives in order to help them re-orient their business activities and create new opportunities. 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, scaling up and sustainable employment. Sustainable investment should be understood as investment within the meaning of point (17) of Article 2 of Regulation (EU) 2019/2088 of the European Parliament and of the Council13a. For enterprises other than SMEs, sustainable and 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. A mechanism for sustainability screening should be put in place to determine if they have any detrimental environmental, climate or social impacts. 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 and to avoid distorting competition between enterprises, 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. The JTF should aim to only support investments related to the climate transition that are viable in the mid to long term and provide an added value to the territory concerned. The Commission and Member States should monitor the viability of investments derived from the JTF on an ongoing basis.

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13a Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability‐related disclosures in the financial services sector (OJ L 317, 9.12.2019, p. 1).

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).

Text proposed by the Commission

Amendment

(12a)  In order to ensure that the Fund is not used to pay for the costs of restoring environmental damages that fall under the environmental liability of an undertaking, support to investment related to the regeneration, repurposing and decontamination of sites and to the restoration of land and ecosystems, should be allowed only when no undertaking can be held legally liable to finance such activities, in accordance with the polluter-pays principle enshrined in Article 191 TFEU.

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, 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 may 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. The JTF should be operationalised as quickly as possible to support transitioning regions, especially in the context of the COVID-19 crisis. The Commission should ensure that the relevant administrative processes are run in a smooth way.

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 and measurable on the effective implementation of a transition process in a specific territory, based on targets as well as output and result indicators and effective monitoring in order to achieve a climate-neutral economy. In that regard, Member States should prepare, together with the relevant regional and local authorities and in close cooperation at local and regional levels with all the relevant stakeholders, economic and social partners, representatives of the civil society, experts, training and research institutions, employers, including in industry sectors affected, groups of workers and community-based organisations, and other 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 order to ensure an effective and inclusive just transition strategy, all the relevant stakeholders and partners should be fully involved in all stages of the preparation, development, implementation and evaluation of the JTF programmes and should be put in the best conditions to participate in an effective manner to the selection and implementation of projects and operations financed.

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, by 2050 at the latest, notably as regards the conversion or closure of facilities involving fossil fuel production or other greenhouse gas intensive activities or manufacturing of products impacted by the transition, while protecting the workers affected and expanding employment opportunities in the affected territories in order to avoid social exclusion. 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 Green Deal, the Paris Agreement and the European Pillar of Social Rights. Only investments in accordance with the transition plans and that do not lead to lock-in effects or stranded assets 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.

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 territories facing economic and social transformation in their transition to a climate-neutral and circular economy by 2050 at the latest, 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 and employment 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,

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 citizens, economic activities and territories facing energy sustainability, energy security and energy affordability challenges in the transition process towards a just and sustainable, climate-neutral, climate-resilient, resource-efficient and fully circular economy of the Union by 20501a at the latest. The JTF shall support the long-term competitiveness and social and regional cohesion of these territories.

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1a The words “at the latest” should apply each time the date 2050 is mentioned (throughout the text).

Text proposed by the Commission

Amendment

2. It lays down the specific objective of the JTF, its geographical coverage and resources, the scope of its support with regard to the Investment for jobs and growth goal referred to in [point (a) of Article 4(2)] of Regulation (EU) [new CPR] as well as specific provisions for programming and indicators necessary for monitoring.

2. It lays down the specific objective of the JTF, its geographical coverage and resources, the scope of its support with regard to the Investment for jobs and growth goal referred to in [point (a) of Article 4(2)] of Regulation (EU) [new CPR] as well as specific provisions for programming, transparent criteria as well as sustainability indicators necessary for monitoring.

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 policy objectives set out in [Article 4(1)] of Regulation (EU) [new CPR], the JTF shall contribute to the single specific objective ‘enabling regions, municipalities, economic operators, employees and people to address the social, economic, regional and environmental impacts of the transition towards a sustainable climate-neutral economy together with the European Pillar of Social Rights, the UN SDGs as well as the objectives of the Paris Agreement.