Just Transition Fund
In line with the objective of achieving EU climate neutrality by 2050 in an effective and fair manner, the European Green Deal proposed a Just Transition Mechanism, to leave no one behind. The Just Transition Fund (JTF) is the first pillar of the Just Transition Mechanism and will provide support to all Member States.
Established within the framework of cohesion policy, the JTF will be a key tool to support the territories most affected by social and economic impacts of the transition towards climate neutrality.
The allocation method will consider the scale of the transition challenge of the highest greenhouse gas-intensive regions, the social challenges in light of potential job losses in industry, coal and lignite mining, and the production of peat and oil shale. The method will also take into account Member States’ level of economic development and related investment capacity.
The overall budget of the Just Transition Fund is €40 billion. Ireland has been allocated €176 million from the JTF. Member States will complement their JTF allocation from their resources under the ERDF and ESF+. This spending from the EU budget will be supplemented by national co-financing according to cohesion policy.
The JTF will support productive investments in Small and Medium-sized Enterprises, creation of new firms, research and innovation, environmental rehabilitation, clean energy, up- and reskilling of workers, job-search assistance and active inclusion of jobseekers programmes, as well as the transformation of existing carbon-intensive installations when these investments lead to substantial emission cuts and job protection.