18 / 02 / 2020
On 14 January 2020, as part of the European Green Deal the European Commission (EC) adopted a proposal for a regulation to create the Just Transition Fund (JTF), which will focus on supporting EU regions most affected by the transition to a low carbon economy. The EU aims to be climate neutral by 2050 and to reduce greenhouse emissions by at least 50% by 2030. These targets require a socio-economic transformation in regions which are still relying on fossil fuels and carbon-intensive industries.
The proposed budget for the JTF is €7.5 billion, while it will complemented with resources coming from cohesion policy funds and national co-financing (up to a total €30-50 billion) available to all Member States. The JTF will be also part of a Just Transition Mechanism, which involves resources from InvestEU and loans from European Investment Bank.
This adopted act is open for feedback until 12 March 2020, which will be then summarised by the EC and presented to the European Parliament (EP) and Council with the aim of feeding into the legislative debate. The file has been now given to the EP Committee on Regional Development, which will organise a workshop on 19 February before the discussion on the rapporteur’s draft report.