The fund will be equipped with €40 billion. Cookies. Just Transition Fund OVERVIEW The EUaimsto cut greenhouse gas emissions byat least55% by 2030 and achieve climate neutrality by 2050. The European Union is committed to becoming the first climate-neutral bloc in the world by 2050. The Just Transition Fund. Over the past two years, the Commission through its Structural Reform Support Programme also provided hands-on support to regions to help prepare long-term economic strategies for their transition out of coal, such as in Slovakia's Horna Nitra region, Greece's Western Macedonia or Romania's Jiu Valley. A number of other EU funding instruments are available to possibly support programmes and projects focused on just transition: Follow the latest progress and get involved. This site is managed by the Directorate-General for Communication, New loan facility leveraged by the European Investment Bank (EIB), Initiative for Coal Regions in Transition, Just Transition: Commission launches support tools for Member States and regions, Internal Market, Industry, Entrepreneurship and SMEs, Aid, Development cooperation, Fundamental rights, About the European Commission's web presence, Follow the European Commission on social media. These loans would provide public sector entities with resources to implement measures to facilitate the transition to climate neutrality. Proposal for a … Type. A portion of financing under InvestEU, corresponding to €1.8 billion, will be focused on just transition objectives. The Just Transition Fund will comprise €7.5bn of "fresh money" from the upcoming EU long-term budget to support projects that are low-carbon and climate-resilient, including re-skilling programmes for miners, jobs in new economic sectors and energy-efficient housing. [VIDEO] June 23, 2020 by Matthew James. The plans should also set out ways to best address social, economic and environmental challenges. The European Union says it is committed to becoming the first climate-neutral bloc in the world by 2050. The Just Transition Fund is the first pillar of the Just Transition Mechanism. The Parliament is expected to vote on the establishment of the Just Transition Fund during September’s plenary session. The European Parliament's legislative train schedule monitors the progress of legislative files identified in the 10 priorities of the European Commission 2020-03-30 12:00. The EU heads of state and government gave the green light for EUR 10 billion for the Just Transition Fund from the COVID-19 war chest, slashing the sum from the proposed EUR 32.5 billion. It’s essential to secure additional funding from the EU’s and Member States’ budgets and not only redistribute existing funds. Within the framework of the Just Transition Fund, the funding for Bulgaria is foreseen at 6.1% of the budget, or €458.2 million. On 11 December 2019, the Commission presented the European Green Deal, with the ambition of becoming the first climate-neutral bloc in the world by 2050. If you have an enquiry about the Just Transition Mechanism/Fund/Platform, please fill the contact form. Norway’s wealth fund has been looking for such assets since parliament … This requires significant investment from both the EU and the national public sectors, as well as the private sector, it says. The “European Green Deal” fired the opening salvo in Ursula von der Leyen’s pre-election agenda. The fund will support the economic diversification and reconversion of the territories concerned. In May 2020, the Commission amended the proposal for the Just Transition Fund, in the context of the Next Generation EU, the EU’s plan for economic recovery, to cope with the impact of the Covid-19 pandemic. In the Territorial Just Transition Plans, EU countries will need to identify the territories and sectors eligible for funding under the Just Transition Fund. The approval of the plans by the Commission will open the door to dedicated financing not only from the Just Transition Fund but also from the dedicated just transition scheme under InvestEU and the EIB public sector loan facility. The fund will be equipped with €40 billion. A trillion reasons to scrutinise the Green Deal Investment Plan, Bruegel. This site is managed by the Directorate-General for Communication, addresses the social and economic effects of the transition, Aid, Development cooperation, Fundamental rights, About the European Commission's web presence, Follow the European Commission on social media. This site uses cookies to offer you a better browsing experience. It will draw on the analysis provided in the context of the European Semester and in particular on the Commission’s proposal for priority regions and sectors in terms of eligibility,as laid out in the Annex D of the 2020 European Semester Country Reports. Commentators have called for future Green New Deal type programs to also emphasize environmental justice, both in the US and overseas. The particularities of the Just Transition Fund will be unveiled later this month. These plans set out the challenges in each territory, as well as the development needs and objectives to be met by 2030. InvestEU will not only support investment in projects in just transition territories (regions having an approved transition plan under the Just Transition Fund rules), but also in other regions, provided that they benefit the just transition territories. A draft €100-billion “Just Transition Mechanism” outlined by the European Commission as part of its Green Deal last week will eventually see the light in January, EU officials have said. 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. While the Green New Deal argues for a "just transition" for fossil fuel industry workers, a new study shows few such workers have heard of the term. The European Green Deal Investment Plan and Just Transition Mechanism. This means backing productive investments in Small and Medium-sized Enterprises, creation of new firms, research and innovation, environmental rehabilitation, clean energy, up- and reskilling of workers, job-search assistance and active inclusion of jobseekers programmes, as well as the transformation of existing carbon-intensive installations when these investments lead to substantial emission cuts and job protection. It consists of a single access point and helpdesk. Under a European Council proposal, Germany, with its large coal industry, was slated to receive the second-largest share of the pie, despite being one of the bloc’s wealthiest countries. The deal is worth just under 1.4 billion euros, or about $1.6 billion, it said. Related news EU presents €1trn plan to 'unleash green investment wave' This requires significant investment from both the EU … The EU Commission has also promised more money: as part of its "European Green Deal", it has set up the “Just Transition Fund”, which is to mobilize a total of 100 billion euros by 2027 for structural change in coal regions and also in regions with heavy industry. Workers can play a decisive role in greening the economy — but only if their own concerns and expertise are central to the transition process. Supported investments will range from energy and transport infrastructure, district heating networks, energy efficiency measures including renovation of buildings, as well as social infrastructure. With a contribution from the EU budget of €1.5 billion, the public sector loan facility will enable the EIB to lend €10 billion, which is in turn expected to mobilise between €25 and €30 billion of public investments supporting just transition objectives over the period 2021-2027. Similarly, InvestEU will support investments in a wider range of projects compared to the Just Transition Fund, such as projects for energy and transport infrastructure, including gas infrastructure and district heating, but also decarbonisation projects, economic diversification and social infrastructure. The most vulnerable are the most exposed to the harmful effects of climate change and environmental degradation. Background On 11 December 2019, the Commission presented the European Green Deal , with the ambition of becoming the first climate-neutral bloc in the world by 2050. EU Green Deal ‘Just Transition Fund‘ must be much bigger, Polish think tank says The head of the Polish Economic Institute also reckons the Eastern European country won’t reach climate neutrality before 2060. The dedicated InvestEU scheme is the second pillar of the Just Transition Mechanism. CESI statement on a Just Transition Fund for the European Green Deal. The Commission has drawn €5 billion of the Just Transition Fund’s resources directly from existing Cohesion Funding. Aspart of the European Gre en Deal, on 14 January 2020,the European Territorial just transition plans define the territories in which the Just Transition Fund will be used. The European Green Deal Investment Plan encompasses a Just Transition Mechanism to facilitate the green transition of territories in the EU that are currently hosting CO2-intensive industries and are thus most affected by the transition. The final use of InvestEU will remain demand-driven and will depend on the project pipeline and the capacity of the regions concerned. The distribution of the €17.5 billion Just Transition Fund will also be deeply contested. However, the ongoing negotiations on the Multiannual Financial Framework (MFF)might not give the gre… of €10 billion in loans, backed by €1.5 billion of the EU budget, mobilising up to €30 billion of, If you have an enquiry about the Just Transition Mechanism/Fund/Platform, please fill the, facilitating employment opportunities in new sectors and those in transition, facilitating access to clean, affordable and secure energy, supporting the transition to low-carbon technologies and economic diversification based on climate-resilient investments and jobs, creating attractive conditions for public and private investors, providing easier access to loans and financial support, investing in the creation of new firms, SMEs and start-ups, investing in research and innovation activities, supporting the transition to low-carbon and climate-resilient activities, investing in public and sustainable transport, providing affordable loans to local public authorities. The 2019 Rep. Ocasio-Cortez and Sen. Markey Green New Deal advocated for a "just transition", counteracting previous systemic injustice that had disproportionality hurt vulnerable communities. Currently, technical support is provided to 18 Member States. Proposal for a regulation. It provides targeted support to help mobilise at least €150 billion over the period 2021-2027 in the most affected regions, to alleviate the socio-economic impact of the transition. Type of act. The identification of these territories will be carried out through a dialogue with the Commission. This Just Transition Mechanism of at least €100 billion is a pledge that the EU stands with you in this transition." Europe’s ‘green and just’ transition starts with its recovery fund EU states must not miss the once-in-a-lifetime opportunity to build for a sustainable future Stephany Griffith-Jones A Just Transition coupled with a commitment to Just Recovery and Rebuilding, community-driven Climate Action plans through block grants earmarked for community-based organizations, and community development funds would go even further to repair historical harm and center community innovation for water, land, air, and energy resources, in both urban and rural areas, including Indian … Regional policy . European Green Deal – Just Transition Fund; Commission adoption . Cosa prevede l'accordo UE sul Just Transition Fund, il fondo per sostenere le regioni nella transizione verso la neutralità climatica. Other green and innovation initiatives are set to be shrunk from the original plans as well. Background. The incoming Commission president proposes a Just Transition Fund to bolster the existing Cohesion Funds for regions and rural areas, and a Farm-to-Fork sustainable food … Feedback: Closed. Commission adoption . This will require a socio-economic transformation in regions relying on fossil fuels andhigh-emissionindustries. As part of its work programme for the year 2020, the European Commission is currently working to realise a European Just Transition Fund to mitigate adverse social and employment-related effects flowing from the planned European Green Deal. The Just Transition Mechanism (JTM) is a key tool to ensure that the transition towards a climate-neutral economy happens in a fair way, leaving no one behind. The European Green Deal, the European commission. The Just Transition Mechanism (JTM) is a key tool to ensure that the transition towards a climate-neutral economy happens in a fair way, leaving no one behind. This spending from the EU budget will be supplemented by national co-financing according to cohesion policy. While the Just Transition Fund will provide funding primarily in the form of grants, the two other financing streams planned as part of the Just Transition Mechanism (InvestEU scheme and EIB public sector loan facility) will leverage public and private investment by backing investment projects of financial partners such as the EIB. The European Commission has revealed details of the Just Transition Fund, its first legislative proposal for its flagship economic plan to decarbonise Europe by 2050, the European Green Deal. The approval of the territorial just transition plans opens the doors to dedicated financing under the other two pillars of the Just Transition Mechanism. The Commission has launched in March 2020 a call for requests under the Structural Reform Support Programme to assist Member States with the preparation of their territorial just transition plans to unlock funding from the Just Transition Mechanism. The Just Transition Mechanism consists of 3 components: The Just Transition Fund; The Just Transition Scheme under InvestEU; The Public sector loan facility … Member States can get access by preparing territorial just transition plans that cover the period up to 2030, identifying the territories that should get the most support. They identify the types of operations envisaged and specify governance mechanisms. Financing the green transition: The European Green Deal Investment Plan and Just Transition Mechanism. 15 January 2020 - 12 March 2020. Support will be available to all Member States, focused on regions that are the most carbon-intensive or with the most people working in fossil fuels. Topic. Find out more on how we use cookies and how you can change your settings. The Just Transition Mechanism addresses the social and economic effects of the transition, focusing on the regions, industries and workers who will face the greatest challenges, and mobilising at least €150 billion, through: The Just Transition Platform assists EU countries and regions with the just transition. European Green Deal: 12 things you need to know about the Just Transition Mechanism. The Just Transition Fund is the first pillar of the Just Transition Mechanism. To address the social, economic and environmental impacts of the transition, the European Commission proposed in January 2020 the Just Transition Fund, part of the €1 trillion European Green Deal climate finance plan. In order to unlock funding from the JTF, EU countries will have to match each euro received from this Fund, for the share financed from the Union budget (€10 billion) with €1.5 to €3 from their resources of the European Regional Development Fund (ERDF) and the European Social Fund Plus (ESF+). Technical assistance is also delivered to a number of territories in the EU through the Initiative for Coal Regions in Transition. It provides targeted support to help mobilise at least €150 billion over the period 2021-2027 in the most affected regions, to alleviate the socio-economic impact of the transition. Feedback: Closed; About this initiative. Will the Just Transition Fund deliver the Green Deal? The Just Transition Mechanism will include a strong governance framework centred on territorial just transition plans. The plans will be annexed to the Cohesion Policy programmes entailing support for the Just Transition Fund, and will be adopted by the Commission together with these programmes. The Just Transition Mechanism will include a strong governance framework centred on territorial just transition plans. This amount corresponds to fresh money made available to support EU countries in their transition, out of which €10 billion should come from budget appropriations, while the remaining additional resources of €40 billion, covering the period from 2021 to 2024, will constitute external assigned revenue stemming from the European Recovery Instrument. In line with the objective of achieving EU climate neutrality by 2050 in an effective and fair manner, the European Green Deal proposed a Just Transition Mechanism, including a Just Transition Fund, to leave no one behind. Last week 390 Energy Post readers registered for our latest online panel discussion sponsored by PGE Poland. Executive Vice-President for the European Green Deal, Frans Timmermans, said: “Our Green Deal ambition is to demonstrate a new model for inclusive transformation based on a just transition.As we rebuild our economies and societies, we owe it to our children and grandchildren to grasp the opportunity to build a more sustainable future. Under the new reinforced Just Transition Fund, Polish climate Minister Michal Kurtyka claimed that the country's coal-dependent regions would receive an extra 6 billion euros. This fund, which aims to then generate between €30bn to €50bn over the next seven years, explicitly excludes any support for fossil fuels. The Just Transition Platform will play a key role in providing tailored technical support to authorities drafting the Territorial Just Transition Plan throughout the process, in order to ensure that they reflect the specific needs of each region. Authorities and beneficiaries can access it to find all they need to know about the funds, including opportunities, relevant regulatory updates or sector specific initiatives. How good is the European commission’s Just Transition Fund … This way, the JTF overall financing capacity exceeds €89 billion and may reach €107 billion. It provides comprehensive technical and advisory support. Feedback period. The EIB loan facility is the third pillar of the Just Transition Mechanism. Member States will have the opportunity to request additional technical support under the future 2021-2027 Technical Support Instrument, including on regulatory and administrative reforms related to the just transition agenda. improving energy infrastructure, district heating and transportation networks. The identification of these territories is carried out through a dialogue with the Commission.