Just Transition Fund Mechanism Overview
The Just Transition Fund Mechanism aims to provide substantial investments to support regions facing transition challenges towards a climate-neutral economy. It emphasizes mitigating social and economic costs, economic diversification, job reskilling, and environmental sustainability. The fund leverages public financing, offers grants primarily, and requires adoption of territorial just transition plans for access. Eligible activities focus on supporting affected territories and offsetting job losses in large enterprises while reducing GHG emissions.
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Presentation Transcript
Just Transition Fund & Mechanism Eric von Breska, Director, DG REGIO Brussels, 29 January 2020
We need a just (climate) transition for all. Or it won t work at all. Frans Timmermans, EVP of the Commission
Just Transition Mechanism at least EUR 100 billion investments to support and finance regions most exposed to transition challenges in all Member States Just Transition Fund to generate financing of 30-50 billion Public sector loan facility with the EIB to mobilise 25-30 billion investments InvestEU Dedicated Just Transition Scheme to mobilise up to 45 billion investments New Just Transition Fund of 7.5 billion Transfers:for each 1 from JTF 1.5-3 from ERDF/ESF+ National co-financing Crowds in private investment Provides primarily grants Leverages public financing Adoption of a territorial just transition plan unlocks access to all three pillars of JTM Investments under pillars two and three of JTM shall benefit territories identified in the territorial just transition plans without being necessarily located in these territories Pillars two and three of JTM also have a wider thematic scope than JTF
Main features of the JTF Objective Mitigating the social and economic costs of transition towards climate-neutral economy Embedded in cohesion policy Ensures ownership and partnership on the ground Same bodies, rules and programmes can be used for JTF as for cohesion funding Transfers from ERDF and ESF+: Minimum 150% and max 300% (but not more than 20% of each Fund national allocation) Amounts transferred to be justified in the programming process Specific programming process Preparation steered by European Semester (forthcoming country reports) Eligibility All Member States eligible, but funding focused on Member States with biggest challenges Support concentrated on most affected territories where transition takes place
Scope of support More focused than mainstream cohesion programmes Economic diversification and reconversion Re-skilling and job seeking assistance for workers Support to climate transition and environmental sustainability Notable exclusions Notably, production, processing, distribution, storage or combustion of fossil fuels (including gas) Transport (infrastructure) 2nd and 3rd pillar of JTM have a wider scope of eligible activities Limited additional investment eligible to be justified in territorial just transition plans Productive investments in large enterprises: if needed to offset job losses Investments reducing GHG emissions from ETS activities: if needed to preserve jobs All operations must contribute to the implementation of the territorial just transition plans
Dedicated Technical Assistance for just transition regions Already in 2020, Commission will assist Member States with preparation of their territorial just transition plans InvestEU Advisory Hub, including Jaspers, will provide support for the preparation of the project pipeline Just Transition Platform for bilateral and multilateral exchanges of experience on lessons learnt and best practices across all affected sectors building on the existing platform for coal regions in transition Enabling sustainable investments through state aid Revision of relevant state aid rules to support cost-effective and socially-inclusive transition to climate-neutrality by 2050 Commission will consider further procedural facilitation to approve State aid for just transition regions BUT public productive investment support to large companies will continue to only benefit the poorest regions to be affected by the green transition (Article 107 (3) (a) and (c) TFEU)
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