Just Transition Fund

21-04-2021

The EU aims to cut greenhouse gas emissions by at least 55 % by 2030 and achieve climate neutrality by 2050. This will require a socio-economic transformation in regions relying on fossil fuels and high-emission industries. As part of the European Green Deal, on 14 January 2020, the European Commission adopted a proposal for a regulation to create the Just Transition Fund, aimed at supporting EU regions most affected by the transition to a low carbon economy. In the context of recovery from the coronavirus pandemic, an amended proposal on the Just Transition Fund (JTF) was published on 28 May 2020. The JTF is set to have a budget of €17.5 billion (€7.5 billion from the core EU budget under the Multiannual Financial Framework and €10 billion from the Next Generation EU instrument, in 2018 prices). Funding will be available to all Member States, while focusing on regions with the biggest transition challenges. The proposed budget for the Just Transition Fund may be complemented with resources from cohesion policy funds and national co financing. The Fund will be part of a Just Transition Mechanism, which also includes resources under InvestEU and a public-sector loan facility. In the European Parliament, the file has been entrusted to the Committee on Regional Development (REGI). A provisional political agreement was reached in trilogue on 9 December 2020. The Parliament is expected to vote on the text of the regulation during its May 2021 plenary session.

The EU aims to cut greenhouse gas emissions by at least 55 % by 2030 and achieve climate neutrality by 2050. This will require a socio-economic transformation in regions relying on fossil fuels and high-emission industries. As part of the European Green Deal, on 14 January 2020, the European Commission adopted a proposal for a regulation to create the Just Transition Fund, aimed at supporting EU regions most affected by the transition to a low carbon economy. In the context of recovery from the coronavirus pandemic, an amended proposal on the Just Transition Fund (JTF) was published on 28 May 2020. The JTF is set to have a budget of €17.5 billion (€7.5 billion from the core EU budget under the Multiannual Financial Framework and €10 billion from the Next Generation EU instrument, in 2018 prices). Funding will be available to all Member States, while focusing on regions with the biggest transition challenges. The proposed budget for the Just Transition Fund may be complemented with resources from cohesion policy funds and national co financing. The Fund will be part of a Just Transition Mechanism, which also includes resources under InvestEU and a public-sector loan facility. In the European Parliament, the file has been entrusted to the Committee on Regional Development (REGI). A provisional political agreement was reached in trilogue on 9 December 2020. The Parliament is expected to vote on the text of the regulation during its May 2021 plenary session.