This legislation establishes the Just Transition Fund which aims to address the socio-economic and environmental costs of achieving a climate-neutral and circular economy. In the pursuit of limiting temperature increase to 1.5 °C above pre-industrial levels, the Union will concentrate its funding on green objectives. The transition to a climate-neutral and circular economy is a priority for the European Union, and this legislation is part of the Sustainable Europe Investment Plan that dedicates financing to the Just Transition Mechanism.
The Just Transition Fund recognizes that not all regions and Member States have the same capacity to respond to climate change and environmental degradation. Hence, the fund aims to support regions that are lagging behind in their transition to mitigate the social, economic, and environmental costs. The fund will support the regions in their efforts towards achieving the Union’s 2030 targets for energy and climate in line with the objectives of the integrated national energy and climate plans.
One of the significant aspects of this legislation is the role of the Territorial Just Transition Plans. The member states must submit these plans, outlining the transition process and identifying the territories most negatively affected by it. The plans must align with the broader national energy and climate plans and existing transition projects. The plan specifies the actions, milestones, and expected impact of the measures.
The legislation allocates €17.5 billion from the multiannual financial framework for the Just Transition Fund. The allocated funding will provide support for workers to transition to new jobs, businesses to innovate and invest, and infrastructure investments in the energy efficiency and renewable sector. The Just Transition Fund is crucial for achieving a climate-neutral economy and supporting the regions in their efforts towards a more sustainable future.
In conclusion, the establishment of the Just Transition Fund underlines the Union’s commitment to mitigating climate change and achieving a climate-neutral and circular economy. The fund provides critical financing to support the regions in their efforts to adapt to the green transition and mitigate its socio-economic and environmental costs. The Territorial Just Transition Plans and the allocation of dedicated funds will ensure that the regions in need receive targeted support to achieve the Union’s energy and climate goals.
