Deal on financing a just energy transition in EU regions

(Credit: Unsplash)

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


On Wednesday, EP and Council reached a provisional agreement on setting up the Just Transition Fund to mitigate the social impact of greening the economy.

The Just Transition Fund (JTF), worth 17.5 billion EUR, is one of the EU’s key tools to support regions in the transition towards climate neutrality by 2050.

During their talks, EU institutions agreed to broaden its scope to also fund micro-enterprises, universities and public research institutions, digital innovation and activities in the areas of education and social inclusion. Investments in renewable energy and energy storage technologies, investments in energy efficiency and heat production for renewables-based district heating, smart and sustainable local mobility will also be financed.

The decommissioning or construction of nuclear power stations, activities linked to tobacco products and investment related to the production, processing, transport, distribution, storage or combustion of fossil fuels cannot be funded through the JTF.

At the initiative of the Parliament, a “Green Rewarding Mechanism” will be introduced, if JTF resources are increased after 31 December 2024. The additional resources will be distributed among member states, with those that succeed in reducing greenhouse gas emitted by their industrial facilities receiving more funding.

Other key measures agreed

  • In their territorial just transition plans, member states have to focus on supporting outermost regions and islands and earmark specific amounts from their national allocations;
  • Businesses in difficulty may receive support in compliance with temporary EU state aid rules established to address exceptional circumstances;
  • Resources may be transferred from other cohesion funds on a voluntary basis;
  • The proportion of the investments to be provided by EU funding (co-financing) is set at maximum of 85% for less developed regions, 70% for transition regions and 50% for more developed regions.

Quote

Rapporteur Manolis Kefalogiannis (EPP, GR) said: “The European Parliament gave a strong political signal: the social, economic and environmental impact of the energy transition in the most affected regions must be addressed. We took a pragmatic approach that will allow us to move into a new green era without leaving anyone behind.”

Next steps

Parliament and Council are now expected to endorse the content of the agreement.

Background

The Commission published in January 2020 a legislative proposal on the Just Transition Fund (JTF), the first legislative proposal implementing the priorities set out in the European Green Deal, followed in May by an amended proposal containing an increase of the Fund’s resources. In July, the European Council set the financial envelope of the JTF at EUR 7.5 billion from the 2021-2027 Multiannual Financial Framework, supplemented by EUR 10 billion from the EU Recovery Instrument.

the sting Milestones

Featured Stings

Can we feed everyone without unleashing disaster? Read on

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

How to build a more resilient and inclusive global system

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

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

Drones, disinfectant, distancing – Europe’s beaches open up

Syria: Guterres concerned over reported attacks in Idlib, calls for ‘full investigation’

The needs, challenges and power dynamics of refugee resettlement

Global Europe: MEPs back EU external cooperation funding instrument worth €79.5 billion

A more credible, dynamic, predictable and political EU accession process – Commission lays out its proposals

Commission disburses €14 billion under SURE to nine Member States

Belgium: keep up reforms to increase employment and productivity growth

The importance of including palliative care in the Universal Health Coverage and how to achieve it

How governments and mobile operators are easing network congestion during the COVID-19 crisis

UN condemns deadly attack against G5 Sahel force headquarters in Mali

Comprehensive listening: a tool to humanize Primary Healthcare and medical specialties

Landmine casualties high for third consecutive year despite record funding, latest monitor reports

Banks launch green charter to help shipping reduce its carbon footprint

Security Council must ‘come together’ to address the plight of children trapped in armed conflict, says UN envoy

3 ways AI will change the nature of cyber attacks

Human Rights: breaches in Cambodia, Uganda and Myanmar

Kazakhstan continues to push for a nuclear-free world

Monday’s Daily Brief: the cost of maternal healthcare, Sudan and Chad updates, sustainability in focus

These patients are sharing their data to improve healthcare standards

3 ways to accelerate the energy transition

A call for a new crop of innovators

Brexit: European Commission recommends the European Council (Article 50) to endorse the agreement reached on the revised Protocol on Ireland / Northern Ireland and revised Political Declaration

Brussels to tear down the trade wall with Mexico as opposed to Trump’s “walls”

European Court of Justice to Google: It is #righttobeforgotten but not #righttoberemembered

Netherlands: Budget MEPs back €1.2m in job-search aid for 450 redundant workers

The race to net-zero is on. This is how we can cross the finish line

Why the colour of your fruit and vegetables matters

Team Europe contributes €500 million to COVAX initiative to provide one billion COVID-19 vaccine doses for low and middle income countries

5G will drive Industry 4.0 in the Middle East and Africa

Antitrust: Commission fines car manufacturers €875 million for restricting competition in emission cleaning for new diesel passenger cars

What is hydroponics – and is it the future of farming?

UN health emergency committee to re-convene on global threat posed by China coronavirus

How can we measure real progress on the Sustainable Development Goals?

How can entrepreneurship tackle the migration crisis in the EU?

Powering through the pandemic

To build cities fit for the future, we need to think differently

US pardons for accused war criminals, contrary to international law: UN rights office

Judges urge Security Council to serve interests of all UN Member States

With a premature death every five seconds, air pollution is violation of human rights, says UN expert

Innovative investment could help solve the world’s water crisis – here’s how

‘Laser-sharp focus’ needed to achieve Global Goals by 2030, UN political forum told

Music is a vital urban resource. How do we plan for it?

These are the most desirable cities for overseas workers

China and UK relations post Brexit as EU addresses Chinese takeovers

New Disability Inclusion Strategy is ‘transformative change we need’, says Guterres

There is no greater sorrow on earth than the loss of one’s native land

It’s ‘time to #EndTB’, says UN on World Tuberculosis Day

European Solidarity Corps: three years on

Europe moulds global defense and security chart given US new inward vision

Search Engine neutrality in Europe in danger: Are 160.000 Google filtering requests good enough?

UN human rights ruling could boost climate change asylum claims

The unpleasant truth of plastic straws

Why your next car is a bike

Coronavirus: Commission lists key steps for effective vaccination strategies and vaccines deployment

Africa is helping the drone industry get off the ground. Here’s how

Geographical Indications – a European treasure worth €75 billion

The Eurogroup offered a cold reception to IMF’s director for Europe

Scotland in United Kingdom: It’s either the end or the beginning of the end

FIRST PERSON: An artist’s ‘obsession’ with New Orleans tradition

More Stings?

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