Just transition in EU regions: support to people, economy and environment

Tzitzikostas

Apostolos Tzitzikostas, when he was elected President of the European Committee of the Regions (138th plenary session)

This article is brought to you in association with the European Parliament.


The EU must transition towards a climate-neutral economy without letting disparities between regions grow any further, say regional development MEPs.

On Monday 6 July, the Regional Development Committee approved the establishment of the Just Transition Fund (JTF) with 27 votes in favour, 7 against and 8 abstentions.

Allocation of financial resources

MEPs request a significant increase in the budget allocated from the 2021-2027 financial framework (from EUR 11 270 459 000 in current prices to EUR 25 358 532 750 in 2018 prices, also referred to as the “principle amount”). This amount would be supplemented with an additional EUR 32 803 000 000 in current prices, as proposed under the EU Recovery Instrument.

The agreed text includes the creation of a “Green Rewarding Mechanism”, allowing 18% of the total JTF resources to be allocated depending on the speed with which member states reduce their greenhouse gas emissions, divided by their latest average GNI. Additionally, 1% of the total amounts would be specifically allocated for islands, and 1% for the outermost regions.

With the JTF designed to support the most vulnerable communities in each region, MEPs call for a co-financing rate of up to 85% of costs for eligible projects.

Relation to existing EU cohesion policy instruments

The establishment of the JTF should not lead to cuts to, or compulsory transfers from, the other cohesion funds, underlines the agreed text. JTF resources may be complemented by resources transferred on a voluntary basis from the European Regional Development Fund (ERDF) and the European Social Fund (ESF+), while maintaining their original objectives.

Broadening the scope of support

MEPs agree that the scope of the JTF should be broader, focusing specifically on social cohesion and leading to job creation. The activities supported by the fund would also include: microenterprises, sustainable tourism, social infrastructure, universities and public research institutions, energy storage technologies, low-emission district heating, smart and sustainable mobility, digital innovation, including digital and precision farming, projects fighting energy poverty, as well as culture, education and community building.

For regions heavily reliant on the extraction and combustion of coal, lignite, oil shale or peat, MEPs propose a derogation for investments in activities related to natural gas. In this sense, the Commission may approve Territorial Just Transition Plans that include such activities, if they qualify as “environmentally sustainable” in accordance with the Taxonomy Regulation and comply with six additional cumulative conditions.

Quote

Rapporteur Manolis Kefalogiannis (EPP, GR) said: “The Just Transition Fund is the first important step in the European Commission’s emblematic initiative for a Green Europe. Today, the Regional Development Committee confirmed that the EP will continue to lead the way in the implementation of the Paris Agreement, pursuing a socially fair and green transition in our regions. With an increased budget, we will be able to effectively support the regions that need it the most, but, above all, strongly support our citizens. We are moving into a new green era without leaving anyone behind.”

Next steps

The European Parliament plenary is expected to vote on the draft report and give the mandate for inter-institutional negotiations during its September sitting.

Background

The Parliament had already called for a comprehensive fund to be established to support a just transition in the energy sector as early as March 2018, with the resolution setting out the Parliament’s position on the post-2020 MFF. On 14 January 2020, the Commission published a legislative proposal on the Just Transition Fund (JTF), aimed at helping the most affected regions alleviate the socio-economic impact of the transition, a first legislative proposal implementing the priorities set out in the European Green Deal. At the end of May 2020, the Commission proposed a substantial increase of the Fund’s resources in an amended proposal (a total of EUR 44 billion in current prices).

the sting Milestone

Featured Stings

How to build a more resilient and inclusive global system

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

Stopping antimicrobial resistance would cost just USD 2 per person a year

China is a renewable energy champion. But it’s time for a new approach

250+ senior claims leaders under one roof, exchanging transformation strategy

More needs to be done to bridge the digital gender divide

Parliament commemorates the liberation of Auschwitz 75 years ago

Upgraded EU visa information database to increase security at external borders

Khashoggi murder trials must public and meet international standards, UN expert urges

How LA plans to be 1.6°C cooler by 2050

Seize the opportunities of digital technology to improve well-being but also address the risks

Women’s work faces the greatest risk of automation, says new research

Is a deal over EU budget possible today?

‘Global sisterhood’ tells perpetrators ‘time is up’ for pandemic of violence

WEF Davos 2016 LIVE: “CO2 is not the problem, it is the symptom”, the pilots who crossed the world using solar energy cry out from Davos

“The Belt and Road Initiative should be mutually beneficial for EU and China and every participating country”, Vice-President Papadimoulis of the European Parliament underscores from European Business Summit 2018

Single Market Scoreboard 2020: Member States need to do more to ensure the good functioning of the EU Single Market*

This is what the UK’s major supermarkets say about plastic packaging and the environment

MEPs demand an end to migrant deaths across the Mediterranean Sea

Pakistan’s digital revolution is happening faster than you think

Syria still suffering ‘staggering levels’ of humanitarian need, Security Council hears

From low-earth orbit, ‘envoys’ of humanity join UN space forum

Find unity ‘to halt Libya’s senseless unraveling’, UN envoy urges Security Council

Burnout is a pandemic. Why don’t we talk more about it?

UN chief extends condolences to families of China landslide casualties

Quashing myths on 2019-nCoV for better public management

DR Congo Ebola centre attacks could force retreat against the deadly disease, warns UN health chief

EU-Ukraine Free Trade Agreement sees the light as Moscow’s reaction once more looms

How speaking ‘parentese’ to your child could make them a faster learner

Five-year low inflation for Eurozone and now Mario has to finally wake up the Germans

Idai disaster: Stranded victims still need rescue from heavy rains as UN scales up response

EU-China: Council authorises signature of the agreement on geographical indications

War in Syria: ‘Carnage’, flouting of rights and international law, must stop: Guterres

Youth Forum welcomes European Commission proposal to speed up financing for youth employment

MasterCard at European Business Summit 2015: A focus on innovation will drive inclusive economic growth for Europe

Is technology key to improving global health and education, or just an expensive distraction?

Rule of Law: European Commission refers Poland to the Court of Justice to protect judges from political control

What is behind the wide reach of  fake news about Coronavirus?

EU-Vietnam trade agreement enters into force

Why impoverishment and social exclusion grow in the EU; the affluent north also suffers

COVID-19 and nature are linked. So should be the recovery.

Corporate tax remains a key revenue source, despite falling rates worldwide

Residents and visitors to this Dutch neighborhood could share a pool of cars and bikes

Europe might not avoid new partitioning on Ukrainian crisis

Draghi to hold on zero interest rates until he leaves ECB

This is how drones and other ‘tradetech’ are transforming international trade

Empathy and human connection: how businesses can respond to COVID-19

UNICEF reports uneven progress in 30 years of child rights treaty

3 important lessons from 20 years of working with social entrepreneurs

United States: UN chief ‘deeply saddened’ by deadly California wildfires

Coronavirus: Commission Statement on consulting Member States on proposal to further expand State aid Temporary Framework to recapitalisation measures

Europe united in not supporting a US attack on Syria

These are the world’s 10 most competitive economies in 2019

Apple’s tax avoidance scheme remains as creative as their new iPhone

Practicing healthcare: Skills of a good healthcare professional and its effects

The European Sting live from the World Economic Forum 2015 in Davos

How global tech companies can champion ethical AI

Parliament wants to suspend EU accession negotiations with Turkey

‘Fire-fighting approach’ to humanitarian aid ‘not sustainable’: Deputy UN chief

This is the critical number that shows when housing breaks down

Horn of Africa: UN chief welcomes Djibouti agreement between Eritrea, Ethiopia and Somalia

Guterres appeals for ‘maximum restraint’ over Jammu and Kashmir, as tensions rise

More Stings?

Advertising

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s