Regulation (EU) 2021/1056 establishing the Just Transition Fund

Summary:

Regulation (EU) 2021/1056 - formally adopted by the European Union on 24 June 2021 - establishing the Just Transition Fund (JTF).

Further information:

The European Commission adopted the original proposal in January 2020 as one of the pillars of the Just Transition Mechanism, in the framework of its Sustainable Europe Investment Plan (SEIP). The JTF aims to support economic diversification of the territories most affected by the climate transition and the reskilling and active inclusion of their workers and job seekers.

The COVID-19 (coronavirus) pandemic affected the economic outlook for every Member State of the European Union (EU). However, different levels of national resilience and response to the shock across the EU raise the potential for distortion of the level playing field of the Single Market that can lead to increasing economic divergences and aggravate long-term growth challenges.

In this context, the Commission argued that investments in the green transition should be accelerated to promote long-term growth and economic resilience. It tabled an amended draft law for the JTF on 28 May 2020 in the framework of the revised proposal on the Multiannual Financial Framework (MFF) 2021-2027.

Member State representatives agreed on 24 June on a partial common position on behalf of the Council of the European Union, which did not include the financial provisions connected to the overall discussions on the MFF 2021-2027. The mandate was updated in October 2020 to include the budgetary implications. The European Parliament's relevant committee adopted the report setting out a negotiating position on 6 July, which was endorsed by the plenary on 16 September. An informal agreement between the co-legislators on a compromise text was reached on 11 December. This was endorsed by the plenary of the Parliament on 18 May and by the Council on 7 June. The Act was formally signed by the co-legislators on 24 June 2021 and published in the Official Journal on 30 June 2021.

Official

EUR-LEX: COM(2020)22: Proposal for a Regulation establishing the Just Transition Fund https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2020:22:FIN

European Parliament: Legislative Observatory: Procedure File for Proposal on Just Transition Fund (2020/0006(COD)) https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?reference=2020/0006(COD)

European Parliament: Legislative Train Schedule: Just Transition Fund https://www.europarl.europa.eu/legislative-train/theme-a-european-green-deal/file-just-transition-fund

EUR-LEX: COM(2020)460: Amended Proposal for Regulation establishing the Just Transition Fund https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2020:460:FIN

European Commission: Opening Remarks by Executive Vice-President Frans Timmermans at the Press Conference on a Green and Just Recovery (28 May 2021) https://ec.europa.eu/commission/presscorner/detail/en/speech_20_964

Council of the European Union: Press Release, 24/06/2020: Just Transition Fund: Council agrees on its partial negotiating position https://www.consilium.europa.eu/en/press/press-releases/2020/06/24/just-transition-fund-council-agrees-on-its-partial-negotiating-position/

European Parliament: Press Release, 06/07/2020: Just transition in EU regions: support to people, economy and environment https://www.europarl.europa.eu/news/en/press-room/20200703IPR82625/

Renew Europe Group: News, 06/07/2020: Just Transition Fund: Leaving no one behind on our way to climate neutrality by 2050 https://reneweuropegroup.eu/en/news/1553-just-transition-fund-leaving-no-one-behind-on-our-way-to-climate-neutrality-by-2050/

S&D Group: Newsroom, 06/07/2020: S&Ds successfully put socialist priorities at the core of the Just Transition Fund https://www.socialistsanddemocrats.eu/newsroom/sds-successfully-put-socialist-priorities-core-just-transition-fund

European Parliament: Headlines, 17/09/2020: Just Transition Fund: helping EU regions adapt to green economy https://www.europarl.europa.eu/news/en/headlines/economy/20200903STO86310/

European Parliament: Press Release, 09/12/2021: Deal on financing a just energy transition in EU regions https://www.europarl.europa.eu/news/en/press-room/20201207IPR93210/

European Commission: Press Release, 11/12/2020: Commission welcomes the political agreement on the Just Transition Fund https://ec.europa.eu/commission/presscorner/detail/en/ip_20_2354

Council of the European Union: Press Release, 16/12/2020: Just Transition Fund: Council endorses the political deal with the Parliament https://www.consilium.europa.eu/en/press/press-releases/2020/12/16/just-transition-fund-council-endorses-the-political-deal-with-the-parliament/

World Bank: Press Release, 27/01/2021: World Bank and the European Commission to Support Poland to Transition Out of Coal https://www.worldbank.org/en/news/press-release/2021/01/27/world-bank-and-european-commission-to-support-poland-to-transition-out-of-coal

S&D Group: Newsroom, 17/05/2021: Nobody left behind in the transition to a climate neutral Europe as Parliament endorses Just Transition Fund https://www.socialistsanddemocrats.eu/newsroom/nobody-left-behind-transition-climate-neutral-europe-parliament-endorses-just-transition

European Parliament: Press Release, 18/05/2021: A €17.5 bn fund to ensure no one is left behind on the road to a greener economy https://www.europarl.europa.eu/news/en/press-room/20210517IPR04110/

ECR Group: Newsroom, 18/05/2021: Just Transition Fund – All eyes are on how the regions are dealt with https://ecrgroup.eu/article/just_transition_fund_all_eyes_are_on_how_the_regions_are_dealt_with

Council of the European Union: Press Release, 07/06/2021: Climate neutrality: Council adopts the Just Transition Fund https://www.consilium.europa.eu/en/press/press-releases/2021/06/07/climate-neutrality-council-adopts-the-just-transition-fund/

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News

EurActiv: Topics: Just Transition Fund https://www.euractiv.com/topics/just-transition-fund/

ERR News, 25/01/2020: Estonia challenging EU oil shale transition fund calculation methodology https://news.err.ee/1027844/estonia-challenging-eu-oil-shale-transition-fund-calculation-methodology

EurActiv, 28/05/2020: Number crunching on expanded Just Transition Fund continues https://www.euractiv.com/section/climate-environment/news/number-crunching-on-expanded-just-transition-fund-continues/

Radio Poland, 28/05/2020: EU plans to give Poland biggest slice from Just Transition Fund https://www.polskieradio.pl/395/7785/Artykul/2520924

EUObserver, 29/05/2020: EU Commission: Five-fold aid increase for fossil-fuel regions https://euobserver.com/green-deal/148504

EurActiv, 24/06/2020: EU ministers exclude nuclear, fossil gas from green transition fund https://www.euractiv.com/section/energy/news/eu-ministers-exclude-nuclear-fossil-gas-from-green-transition-fund/

Reuters, 25/06/2020: EU countries agree their green transition fund will not pay for move to nuclear or fossil gas https://uk.reuters.com/article/idUKKBN23W2G5

LRT News, 29/06/2020: In blow to Lithuania, natural gas excluded in EU’s transition fund https://www.lrt.lt/en/news-in-english/19/1192916/in-blow-to-lithuania-natural-gas-excluded-in-eu-s-transition-fund

EurActiv, 06/07/2020: EU lawmakers divided over inclusion of natural gas in Just Transition Fund https://www.euractiv.com/section/energy-environment/news/eu-lawmakers-divided-over-inclusion-of-natural-gas-in-just-transition-fund/

Agriland, 07/07/2020: EU parliament committee votes in favour of increased Just Transition Fund https://www.agriland.ie/farming-news/eu-parliament-committee-votes-in-favour-of-increased-just-transition-fund/

EurActiv, 07/07/2020: MEPs ban nuclear from green transition fund, leave loophole for gas https://www.euractiv.com/section/energy/news/meps-ban-nuclear-from-green-transition-fund-leave-loophole-for-gas/

Reuters, 20/07/2020: EU eyes cuts to green transition fund in late bid to strike recovery deal https://uk.reuters.com/article/idUSKCN24L2JV

Euronews, 29/07/2020: Cuts to EU Just Transition Fund put pressure on fossil fuel phase-out https://www.euronews.com/2020/07/29/cuts-to-eu-just-transition-fund-put-pressure-on-fossil-fuel-phase-out

EurActiv, 16/09/2020: EU institutions caught in crossfire over Just Transition Fund https://www.euractiv.com/section/climate-environment/news/eu-institutions-caught-in-crossfire-over-just-transition-fund/

Euronews, 22/10/2020: 'Fossil fuels still needed during green transition', top EU official says https://www.euronews.com/2020/10/22/fossil-fuels-still-needed-during-green-transition-top-eu-official-says

EurActiv, 11/12/2020: Fossil fuels axed from EU’s just transition fund, but loophole remains for gas https://www.euractiv.com/section/energy/news/fossil-fuel-axed-from-just-transition-fund-but-loophole-remains/

EurActiv, 17/12/2020: EU agrees its green transition fund will not support natural gas https://www.euractiv.com/section/energy/news/eu-agrees-its-green-transition-fund-will-not-support-natural-gas/

ERR News, 08/02/2021: Just Transition Fund's €340 million will go to Ida-Viru County https://news.err.ee/1608101707/just-transition-fund-s-340-million-will-go-to-ida-viru-county

Reuters, 03/03/2021: EU countries approve green transition fund, look to challenges ahead https://www.reuters.com/article/idUSKCN2AV2D0

Reuters, 18/05/2021: EU lawmakers give final approval to bloc's green transition fund https://www.reuters.com/business/sustainable-business/eu-lawmakers-give-final-approval-blocs-green-transition-fund-2021-05-18/

Bloomberg, 18/05/2021: EU Parliament Approves $21 Billion Fund for Green Transition https://www.bloomberg.com/news/articles/2021-05-18/eu-parliament-approves-21-billion-fund-for-green-transition

EurActiv, 19/05/2021: EU lawmakers give final approval to bloc’s green transition fund https://www.euractiv.com/section/energy-environment/news/eu-lawmakers-give-final-approval-to-blocs-green-transition-fund/

ERR News, 04/06/2021: Estonia might lose €340 million EU funding if oil plant project goes ahead https://news.err.ee/1608235554/estonia-might-lose-340-million-eu-funding-if-oil-plant-project-goes-ahead

ERR News, 06/06/2021: Ministry: Shale oil plant not grounds for withholding JTF support https://news.err.ee/1608237522/ministry-shale-oil-plant-not-grounds-for-withholding-jtf-support

Agriland, 08/06/2021: EU council officially adopts €17.5 billion Just Transition Fund https://www.agriland.ie/farming-news/eu-council-officially-adopts-e17-5-billion-just-transition-fund/

EUObserver, 08/06/2021: EU poised to begin handing out €17.5bn green transition fund https://euobserver.com/climate/152074

The Guardian, 09/06/2021: Poland to close Europe’s most polluting power plant by 2036 https://www.theguardian.com/environment/2021/jun/09/poland-to-close-belchatow-europe-most-polluting-power-plant-by-2036

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Commentary and Analysis

CCRE: News, 14/01/2020: The Just Transition Fund: Welcome support for municipalities and regions, but will it be enough? https://www.ccre.org/en/actualites/view/3964

ZPP: Just Transition Fund – Polish perspective (28 January 2020) https://zpp.net.pl/en/just-transition-fund-polish-perspective/

IAI: Commentaries 01/20, January 2020: There Is No Green Deal without a Just Transition https://www.iai.it/en/pubblicazioni/there-no-green-deal-without-just-transition

Social Europe, 17/02/2020: Just Transition Fund can boost European coal phase-out https://www.socialeurope.eu/just-transition-fund-can-boost-european-coal-phase-out

EPRS: Briefing, February 2020: Assesment of the Just Transition Fund proposal https://www.europarl.europa.eu/thinktank/en/document.html?reference=IPOL_BRI(2020)629213

EurActiv, 04/06/2020: The Just Transition Fund must reward climate ambition https://www.euractiv.com/section/energy/opinion/the-just-transition-fund-must-reward-climate-ambition/

Bruegel: Blog, 11/06/2020: One last push is needed to improve the Just Transition Fund proposal https://www.bruegel.org/2020/06/one-last-push-is-needed-to-improve-the-just-transition-fund-proposal/

CAN Europe: Press Release, 25/06/2020: Council goes fossil fuel-free in Just Transition funding http://www.caneurope.org/publications/press-releases/1953-council-goes-fossil-fuel-free-in-just-transition-funding

WWF: News, 02/07/2020: ‘Unholy alliance’ of MEPs must not allow gas in Just Transition fund https://www.wwf.eu/?uNewsID=364592

EEB: Letter, 02/07/2020: The Just Transition must be fossil fuel-free – letter to the European Parliament’s REGI Committee https://eeb.org/library/the-just-transition-has-to-be-fossil-fuel-free-open-letter-to-the-european-parliament-regi-committee/

Greenpeace: Press Release, 06/07/2020: Just Transition Fund must provide a just, green and fair transition, not line industry pockets https://www.greenpeace.org/eu-unit/uncategorized/4018/just-transition-fund-must-provide-a-just-green-and-fair-transition-not-line-industry-pockets-greenpeace/

EPRS: Animated Infographic, September 2020: 2021-2027 Just Transition Fund https://www.europarl.europa.eu/thinktank/infographics/JTF/index.html

Bruegel: Blog, 06/10/2020: The European climate law needs a strong just transition fund https://www.bruegel.org/2020/10/the-european-climate-law-needs-a-strong-just-transition-fund/

EPRS: Briefing, October 2020: Just Transition Fund https://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_BRI(2020)646180

EPRS: EU Fact Sheets, October 2020: Just Transition Fund (JTF) https://www.europarl.europa.eu/thinktank/en/document.html?reference=04A_FT(2017)N134880

Social Europe, 12/11/2020: Trade unions and climate change: the jobs-versus-environment dilemma https://www.socialeurope.eu/trade-unions-and-climate-change-the-jobs-versus-environment-dilemma

Politico, 24/11/2020: The Wonk's Survival Guide to... leaving no one behind in the Green Deal https://www.politico.eu/article/european-green-deal-policy-guide-farmers-coal-decarbonization/

WWF: News, 04/12/2020: EU funds: the climate is not a bargaining chip https://www.wwf.eu/?uNewsID=1367516

EPRS: At a Glance, May 2021: Just Transition Fund https://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_ATA(2021)690602

WWF: News, 18/05/2021: MEPs vote on Just Transition Fund - WWF comment https://www.wwf.eu/?3421891/MEPs-vote-on-Just-Transition-Fund---WWF-comment

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