Just Transition Fund: MEPs adopt recommendations for continued support

In many EU regions, the transition towards a climate-neutral economy is still ongoing

Support for skills and training is needed so that those affected can find their footing

MEPs argue that EU regions should continue to be supported in their transition towards carbon neutrality once the present Just Transition Fund expires in 2027.

In a report adopted by the European Parliament (519 votes in favour, 99 against, and 48 abstentions), MEPs call for continued EU support for regions affected by the transition to a carbon-neutral economy after the current Just Transition Fund (JTF) expires in 2027. They regret that the proposals for the next multiannual EU budget don’t include a stand-alone JTF and call for a new “JTF II” fund.

Noting that the transition towards carbon neutrality brings challenges as well as opportunities to many EU regions, MEPs emphasise that well-designed support programmes can help mitigate transition-related issues. For the current JTF regions, the transition to a low-carbon economy is not yet complete. In its current form, the scheme does not sufficiently take into account the specificities of the different profiles of workers and affected communities.

Special economic zones, apprenticeships and vocational training

In areas hit by job losses, MEPs call for the establishment of special JTF economic zones, which could benefit from dedicated funding, temporary and targeted tax incentives for businesses and investments and quicker planning decisions. At the same time, investments in high quality public services have a crucial role in building social resilience and coping with crisis.

The text calls for investment into training and especially apprenticeships and vocational training, with priority enrolment for workers who have lost their jobs. To avoid long-term structural unemployment, targeted vocational training and reskilling programmes for job seekers may also be necessary, say MEPs. In line with the EU Skills Union plan, investment into literacy, STEM and digital skills, among other areas, can help enhance employability.

Tailored support for specific groups

The report also recommends social training schemes for older unemployed workers, especially women and long-term unemployed persons, and an increased role for local heritage projects, together with adequate technical assistance. MEPs call for support for local cultural heritage and tourism initiatives with dedicated training programmes, for green community schemes and local circular economy projects.

In the EU’s post-2027 budget cycle, support for the just transition should be expanded and have more precise criteria for allocating funds and fixing the territorial scope for funds, which should not only flow to the large urban centres, argue MEPs. In designing the new fund, good governance and a strong role for local and regional authorities are pivotal, as they truly understand territorial needs, they stress. So far, absorption rates of funding have been lower than expected, says the report, noting that regions need more support to access funding, which should involve minimal administrative burden.

To boost bottom-up initiatives, MEPs propose simpler funding mechanisms and sufficient pre-financing for projects in the volunteer sector, which often struggle to attract matching finance to complement EU funding.

Background

The Just Transition Fund (JTF) was established within the 2021-2027 EU Cohesion Policy framework as an element of the European Green Deal. It aims to support regions and territories facing serious socio-economic challenges linked to the transition towards climate neutrality.

To achieve its objectives, the fund supports investments in areas such as digital connectivity, clean energy technologies, the reduction of emissions, the regeneration of industrial sites, the reskilling of workers and technical assistance.