With the approval of the Multiannual Financial Framework 2021-2027, the European Commission presented two projects in favour of Europe’s green industry future. The LIFE Programme for Environment and Climate Action and the Just Transition Fund will give European countries and industries the opportunity to step into the future of greener energy.

The Just Transition Mechanism

The Just Transition Mechanism was presented by Commissioner for Climate Action Frans Timmermans and is a key tool to ensure that the transition towards a climate-neutral economy happens in a fair way, leaving no one behind. The aim of the JTM is to help countries and industry sectors which rely on coal or other fossil fuels to become more environmentally friendly. The EU hopes to distribute the burden of transitioning to a greener economy more fairly.

In action, this means that countries or industries that have more workers in coal and oil shale sectors, as well as those with higher greenhouse emissions, will receive more financial aid. Like this, the socio-economic impact of the transition will be alleviated.

Who will benefit?

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 that cover the period up to 2030, identifying the territories that should get the most support. The plans should also set out ways to best address social, economic and environmental challenges.

• People and citizens, most vulnerable to the transition. The Just Transition Mechanism will protect them by offering opportunities in new sectors and those in transition, fighting energy poverty and facilitating access to clean, affordable and secure energy.
• Companies and Sectors, active in or comprising carbon-intensive industries. The Just Transition Mechanism will protect them by supporting the transition to low-carbon technologies and economic diversification based on climate-resilient investments and jobs, providing easier access to loans, financial support and investing in research or start-ups together with creating attractive conditions for public and private investors.
• Member states and Regions, with high dependence on fossil fuel and carbon-intensive industries. The Just Transition Mechanism will protect them by supporting the transition to low-carbon and climate-resilient activities, creating new jobs in the green economy, improving digital connectivity and providing affordable loans to local public authorities for improving energy infrastructure, district heating and transportation networks.
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How does this apply to your industry?

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.

As an EU Affairs and Public Funding firm, B2EU Consulting can help industries and governments throughout the process of applying for/or positioning in favour of the funding instruments.

Image © European Commission, 2020