This funding provides support to help mobilise at least €150 billion over the period 2021-2027 in the most affected regions.
What is the Just Transition Mechanism?
The Just Transition Mechanism addresses the social and economic effects of the transition, focusing on the regions, industries and workers who will face the greatest challenges. The JTM is a key tool to ensure that the transition towards a climate-neutral economy happens in a fair way, leaving no one behind.
It provides support to help mobilise at least €150 billion over the period 2021-2027 in the most affected regions.
How will it be distributed?
Territorial just transition plans define the territories in which the Just Transition Fund will be used. The identification of these territories is carried out through a dialogue with the Commission. These plans set out the challenges in each territory, as well as the development needs and objectives to be met by 2030. They identify the types of operations envisaged and specify governance mechanisms. The approval of the territorial just transition plans opens the doors to dedicated financing under the other two pillars of the Just Transition Mechanism.
Co-financing rate:
- up to 85% for less developed regions
- up to 70% for transition regions
- up to 50% for more developed regions
→ (i.e. higher than ERDF for transition and more developed regions)
The JTF represents €19.2bn, which account for 5% of the 2021-2027 cohesion policy budget of €392 billion.
Eligible activities relevant to the field of social and affordable housing include:
- investments in the deployment of technology as well as in systems and infrastructures for affordable clean energy, including energy storage technologies, and in greenhouse gas emission reduction;
- investments in renewable energy
- rehabilitation and upgrade of district heating networks with a view to improving energy efficiency of district heating systems and investments in heat production provided that the heat production installations are supplied exclusively by renewable energy sources;
- investments in enhancing the circular economy, including through waste prevention, reduction, resource efficiency, reuse, repair and recycling;
- technical assistance
Dedicated pillar under InvestEU
A portion of financing under InvestEU, corresponding to €1.8 billion, will be focused on just transition objectives.
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.
New loan facility leveraged by the European Investment Bank (EIB)
The EIB loan facility is the third pillar of the Just Transition Mechanism. 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.
These loans would provide public sector entities with resources to implement measures to facilitate the transition to climate neutrality. Supported investments will range from energy and transport infrastructure, district heating networks, energy efficiency measures including renovation of buildings, as well as social infrastructure.
While the Just Transition Fund will provide funding primarily in the form of grants, the 2nd and 3rd financing streams (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.
26 April -TAPIA Isidoro i.tapia@eib.org
EE investments in buildings are eligible under the JTM, but subject to some institutional conditions.
Hubert Strauss and Kieran Kearney, from the UTD/REGDEV team (in copy) can provide more details. Please feel free to reach out to them (I understand they will be only available for a call from next Monday).
Eligibility
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. Member States can get access by preparing territorial just transition plans (covering the period up to 2030). The plans should also set out ways to best address social, economic and environmental challenges.
The Territorial Just Transition Plans, EU countries will be eligible for funding under the Just Transition Fund. The identification of these territories will be carried out through a dialogue with the Commission. 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 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. 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.
The Just Transition Platform
There is a single access point and helpdesk called Just Transition Platform. It provides comprehensive technical and advisory support. Authorities and beneficiaries can access it to find all they need to know about the funds, including opportunities, relevant regulatory updates or sector specific initiatives.
Just Transition Platform and newer tools
Since the just transition plans have been agreed upon at national level, support for regions has recently been developed by the European Commission, this includes the following new tools:
- JTP groundwork : is a new technical assistance for Just Transition Fund regions, to help them in the implementation of their transition plans
- JTPeers exchanges: A peer-to-peer programme with facilitated interactions between relevant practitioners from JTF territories and/or JTPeers Experts.
- JTPeers Experts database: 78 experts selected to reach out if you encounter problems with the implementation of the transition plans
News
New calls for JP groundwork and JTpeers are expected in early 2024.
For the PSLF, next cut-off is 17 January 2024, 17:00.
Relevant links
Just Transition Mechanism Programme website: https://cinea.ec.europa.eu/just-transition-mechanism_en
Public Support Loan Facility links
For step-by-step instructions on how to prepare and submit a proposal for grant, watch the Commission’s application tutorial
To mark what needs to be done before submitting the proposal, download the Commission’s checklist for applicants.
To check the remaining funding in your national envelope before applying, click here.