Written by Pernilla Jourde and Agnieszka Widuto (3rd edition, updated on 13.10.2020),

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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, increasingly the previously proposed JTF budget from €7.5 to €40 billion (in 2018 prices, with €10 billion under the core EU budget and €30 billion from Next Generation EU). The European Council cut the core budget part to €7.5 billion and Next Generation EU part to €10 billion in July 2020, while the European Parliament proposed an increase of the core budget resources to over €25 billion in September 2020.

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 is to 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. The Commission expects total funding mobilised under the mechanism to reach at least €150 billion.

In the European Parliament, the file has been entrusted to the Committee on Regional Development (REGI). The REGI committee voted on its report on 6 July, and the Parliament subsequently adopted its amendments on 17 September 2020, fixing its position for trilogue negotiations.

Versions

Proposal for a regulation of the European Parliament and of the Council establishing
the Just Transition Fund
Committee responsible: Regional Development (REGI) COM(2020) 22
14.1.2020
Rapporteurs: Manolis Kefalogiannis (EPP, Greece) 2020/0006(COD)
Shadow rapporteurs: Pedro Marques (S&D, Portugal)
Ondřej Knotek (Renew, Czechia)
Francesca Donato (ID, Italy)
Niklas Nienass (Greens/EFA, Germany)
Raffaele Fitto (ECR, Italy)
Martina Michels (GUE/NGL, Germany)		 Ordinary legislative procedure (COD) (Parliament and Council on equal footing – formerly ‘co-decision’)
Next steps expected: Trilogue negotiations

Stage: Trilogue

Just Transition Mechanism
Just Transition Mechanism

Listen to policy podcast ‘Just Transition Fund‘ on YouTube.