JUST TRANSITION FUND (JTF)

 European Parliament, Oct. 21, 2020

.

The Just Transition Fund (JTF) is a new financial instrument within the CohesionPolicy, which aims to provide support to territories facing serious socio-economicchallenges arising from the transition towards climate neutrality. The JTF will facilitatethe implementation of the European Green Deal, which aims to make the EU climate-neutral by 2050.

LEGAL BASIS
Article 175 of the Treaty on the Functioning of the European Union.
Proposal for a regulation of the European Parliament and of the Council establishingthe Just Transition Fund (COM(2020)0022).
 

CONTEXT
In May 2018, the European Commission presented its proposal for the next multiannualfinancial framework for the 2021-2027 period. The proposal demonstrated theEuropean Commission’s increased ambition concerning climate-related activities andsuggested allocating 25% of EU expenditure to such activities.
 

In December 2019, the European Commission adopted a communication on theEuropean Green Deal[1], which sets out a roadmap for a new growth policy for the EU.As part of the Green Deal and with the aim of achieving the objective of EU climateneutrality in an effective and fair manner, the European Commission proposed thecreation of a Just Transition Mechanism (JTM), to include a Just Transition Fund. Itsaid that the JTM should focus on the regions and sectors that are most affected bythe transition due to their dependence on fossil fuels, including coal, peat and oil shale,and on greenhouse-gas-intensive industrial processes.
The mechanism will consist of three pillars:

• the Just Transition Fund;

• a dedicated scheme under the InvestEU programme;

• a public sector loan facility provided by the European Investment Bank (EIB) tomobilise additional investments in the regions concerned.

(...)

 

In full: https://www.europarl.europa.eu/thinktank/en/document.html?reference=04A_FT(2017)N134880

.