The European Commission has approved all requests made by 18 member states including Bulgaria, Croatia, Cyprus, Greece, and Romania, for support in the preparation of their territorial just transition plans, which each country will have to draw up to get access to funding from the Just Transition Mechanism.
The Just Transition Mechanism is part of the European Green Deal investment plan and it will mobilize at least EUR 100 billion of investments.
In the plans, states will identify territories that would be most impacted by the transition towards a climate-neutral economy
In the plans, member states will identify territories that would be most impacted by the transition towards a climate-neutral economy, set out the development challenges there and outline pathways for the transition until 2030 in close consultation with relevant national, regional and local stakeholders, the commission said on its website.
Over the next months the commission will provide targeted support
The European Union’s executive body added it would provide support until the end of the year for the preparation of territorial just transition plans.
Member states will hold the pen in drafting and finalizing the territorial just transition plans and then submit them for approval, the European Commission said.
The approval will unlock the support through the 3 pillars of the Just Transition Mechanism:
- the Just Transition Fund, which will provide grants that will mobilize EUR 30 billion to EUR 50 billion for social and economic transformation in just transition regions;
- a dedicated scheme under InvestEU, which will crowd in up to EUR 45 billion in private investment; and
- a public sector loan facility, which will mobilize EUR 25 billion to EUR 30 billion in public sector investment.
The European Commission will provide tailor-made expertise
Belgium, Czechia, Spain, Finland, Hungary, Ireland, Italy, Lithuania, Latvia, Poland, Portugal, Sweden and Slovakia will also get support.
The list of 18 countries was approved after a call launched by the Commission at the end of February under the Structural Reform Support Programme.
It will provide tailor-made expertise to:
- assess the social, economic and environmental impacts of the transition and outline the transition process up to 2030;
- build a dialogue among stakeholders, such as citizens, business and civil society, to reach a common vision on how to go about the transition;
- and identify actions to achieve a successful just transition.