Electricity

Southeastern Europe may get EUR 10 billion as EU boosts Just Transition Fund plan

EU-boosts-Just-transition-Fund-to-EUR-40-billion-Ursula-von-der-Leyen

Photo: Arrival of Ursula von der Leyen (EC)

Published

May 29, 2020

Country

Comments

comments icon

0

Share

Published:

May 29, 2020

Country:

Comments:

comments icon

0

Share

The European Commission has proposed to increase the funds intended for the energy transition of coal regions from EUR 7.5 billion to EUR 40 billion. The initial proposal for the economic recovery of the 27-country bloc has been amended to add massive stimulus.

The move is part of the newest effort of the Commission, called Next Generation EU, to counter the effects of COVID-19. The new measures were presented by the Commission’s chief Ursula von der Leyen in the European Parliament.


Rebekka Popp, E3G: Support for Central and Eastern Europe

The Commission gives an important political signal by raising the budget for the Fund: supporting Central and Eastern Europe in catching up on climate ambition remains a priority.


The Just Transition Fund is one of the three pillars of the Just Transition Mechanism, envisaged under the European Green Deal investment plan, which was announced in January.

On top of the EUR 7.5 billion, the Commission proposed EUR 2.5 billion under the next long-term EU budget and another EUR 30 billion from Next Generation EU, the Commission said.

The biggest beneficiary of the increased Just Transition Fund would be Poland, with an overall EUR 8 billion. Romania, Bulgaria, Greece, Slovenia, Croatia, and Cyprus, countries tracked by Balkan Green Energy News, are eligible EUR 10 billion in total, if the European Parliament adopts the plan.


WWF Central and Eastern Europe: Exclude all fossil fuels

The fund must explicitly exclude all fossil fuels and cannot replace the other sources of financing and company investments that are crucial to help regions move away from high-carbon activities.


These are the amounts for some of the countries in the new allocation proposal:

  • Poland – EUR 8 billion
  • Germany – EUR 5.1 billion
  • Romania – EUR 4.4 billion
  • Bulgaria – EUR 2.7 billion
  • Greece – EUR 1.7 billion
  • Slovenia – EUR 538 million
  • Croatia – EUR 387 million
  • Cyprus – EUR 210 million.

Friends of the Earth Europe: Prevent countries from directing aid to fossil fuel companies

The FoE criticizes a lack of any conditionality to prevent the Member States from directing public funds and state aid to fossil fuel companies and polluting industries without commitments to lower their climate impacts.


The Commission has also proposed a public sector loan facility, to be implemented together with the European Investment Bank (EIB), intended to mobilise between EUR 25 billion and EUR 30 billion. It should drive the public and private investment under the Just Transition Mechanism to EUR 150 billion compared to the initially planned EUR 100 billion, the EU’s executive body said.

Comments (0)

Be the first one to comment on this article.

Enter Your Comment
Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles

fiat grande panda stellantis serbia electric cars automobiles

Stellantis starts producing electric cars in Serbia

22 July 2024 - With the announced state subsidies, Fiat Grande Panda from the Kragujevac plant could cost around EUR 18,000

eds ceo biljana komnenic elektrodistribucija srbije

Biljana Komnenić takes helm of Serbia’s DSO

22 July 2024 - The Government of Serbia has dismissed the acting director of distribution system operator Elektrodistribucija Srbije, Bojan Atlagić

serbia dso eib loan smart meters elektrodistribucija srbije dubravka de groot

Serbia secures EUR 80 million to replace 400,000 smart electricity meters

22 July 2024 - Distribution system operator Elektrodistribucija Srbije and the European Investment Bank have signed an EUR 80 million loan agreement

Romania-ambitious energy storage plans 5 GW by end 2026

Romania’s ambitious energy storage plans: 5 GW by end-2026

18 July 2024 - These ambitious energy storage targets are aligned with transmission system operator Transelectrica’s recommendations and analyses