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. 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 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 provides comprehensive technical and advisory support. 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. This will require a socio-economic transformation in regions relying on fossil fuels andhigh-emissionindustries. 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. This requires significant investment from both the EU … Commission adoption . The European Green Deal Investment Plan and Just Transition Mechanism. 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. The Just Transition Fund is the first pillar of the Just Transition Mechanism. This fund, which aims to then generate between €30bn to €50bn over the next seven years, explicitly excludes any support for fossil fuels. 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. 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. How good is the European commission’s Just Transition Fund … The Just Transition Mechanism will include a strong governance framework centred on territorial just transition plans. 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. This Just Transition Mechanism of at least €100 billion is a pledge that the EU stands with you in this transition." Supported investments will range from energy and transport infrastructure, district heating networks, energy efficiency measures including renovation of buildings, as well as social infrastructure. The distribution of the €17.5 billion Just Transition Fund will also be deeply contested. 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 It’s essential to secure additional funding from the EU’s and Member States’ budgets and not only redistribute existing funds. 2020-03-30 12:00. 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. The most vulnerable are the most exposed to the harmful effects of climate change and environmental degradation. 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. 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. Type of act. Commentators have called for future Green New Deal type programs to also emphasize environmental justice, both in the US and overseas. Aspart of the European Gre en Deal, on 14 January 2020,the European Type. Feedback: Closed. 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. The plans should also set out ways to best address social, economic and environmental challenges. The European Green Deal, the European commission. 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. Financing the green transition: The European Green Deal Investment Plan and Just Transition Mechanism. The fund will be equipped with €40 billion. Norway’s wealth fund has been looking for such assets since parliament … 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. Find out more on how we use cookies and how you can change your settings. The EIB loan facility is the third pillar of the Just Transition Mechanism. Proposal for a regulation. The fund will be equipped with €40 billion. Workers can play a decisive role in greening the economy — but only if their own concerns and expertise are central to the transition process. 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. The European Parliament's legislative train schedule monitors the progress of legislative files identified in the 10 priorities of the European Commission 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. [VIDEO] June 23, 2020 by Matthew James. The approval of the territorial just transition plans opens the doors to dedicated financing under the other two pillars of the Just Transition Mechanism. Other green and innovation initiatives are set to be shrunk from the original plans as well. 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+). The “European Green Deal” fired the opening salvo in Ursula von der Leyen’s pre-election agenda. 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. This site uses cookies to offer you a better browsing experience. These loans would provide public sector entities with resources to implement measures to facilitate the transition to climate neutrality. They identify the types of operations envisaged and specify governance mechanisms. 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. This requires significant investment from both the EU and the national public sectors, as well as the private sector, it says. 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. However, the ongoing negotiations on the Multiannual Financial Framework (MFF)might not give the gre… The Just Transition Mechanism consists of 3 components: The Just Transition Fund; The Just Transition Scheme under InvestEU; The Public sector loan facility … 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. 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. Currently, technical support is provided to 18 Member States. 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. improving energy infrastructure, district heating and transportation networks. 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 … Within the framework of the Just Transition Fund, the funding for Bulgaria is foreseen at 6.1% of the budget, or €458.2 million. 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. The European Union says it is committed to becoming the first climate-neutral bloc in the world by 2050. This way, the JTF overall financing capacity exceeds €89 billion and may reach €107 billion. The Commission has drawn €5 billion of the Just Transition Fund’s resources directly from existing Cohesion Funding. Regional policy . 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. Territorial just transition plans define the territories in which the Just Transition Fund will be used. The Parliament is expected to vote on the establishment of the Just Transition Fund during September’s plenary session. The final use of InvestEU will remain demand-driven and will depend on the project pipeline and the capacity of the regions concerned. European Green Deal – Just Transition Fund; Commission adoption . 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. Related news EU presents €1trn plan to 'unleash green investment wave' Background. Will the Just Transition Fund deliver the Green Deal? If you have an enquiry about the Just Transition Mechanism/Fund/Platform, please fill the contact form. The Just Transition Fund is the first pillar of the Just Transition Mechanism. A trillion reasons to scrutinise the Green Deal Investment Plan, Bruegel. 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 … The identification of these territories is carried out through a dialogue with the Commission.