Just Transition Fund [EU Legislation in Progress]

Written by Pernilla Jourde and Agnieszka Widuto (1st edition),

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The EU aims to cut greenhouse gas emissions by at least 50 % by 2030 and achieve climate neutrality by 2050. This will require a socio-economic transformation in regions relying on fossil fuels and carbon-intensive 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.

Funding will be available to all Member States, while focusing on regions with the biggest transition challenges. The fund will support workers, companies, and regional authorities, encouraging investments that facilitate the transition. The proposed budget for the Just Transition Fund (JTF) is €7.5 billion, to be complemented with resources from cohesion policy funds and national co‑financing (up to a total of €30-50 billion). The Fund will be part of a Just Transition Mechanism, which also includes resources under InvestEU and loans from the European Investment Bank. Total funding mobilised under the mechanism is expected to reach €100 billion, according to the Commission.

In the European Parliament, the file has been entrusted to the Committee on Regional Development. The committee is due to hold a workshop on 19 February 2020 before starting discussion on the rapporteur’s draft report.

Versions

EU legislation in progress

Just Transition Mechanism

Just Transition Mechanism

Source Article from https://epthinktank.eu/2020/02/18/just-transition-fund-eu-legislation-in-progress/