Amended Proposal for Regulation establishing the Just Transition Fund

Author (Corporate)
Series Details COM (2020) 460
Publication Date 28/05/2020
Content Type


Legislative initiative published by the European Commission on 28 May 2020, introducing a number of amendments to the original proposal setting up the Just Transition Fund (JTF), in light of the consequences of the COVID-19 (coronavirus) pandemic.

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 argues that investments in the green transition should be accelerated to promote long-term growth and economic resilience. It therefore proposes an increase of the funds made available for the JTF, 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.

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Commentary and Analysis
EurActiv, 04/06/2020: 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
CAN Europe: Press Release, 25/06/2020: 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
EEB: Letter, 02/07/2020: The Just Transition must be fossil fuel-free – letter to the European Parliament’s REGI Committee
Greenpeace: Press Release, 06/07/2020: Just Transition Fund must provide a just, green and fair transition, not line industry pockets
EPRS: Animated Infographic, September 2020: 2021-2027 Just Transition Fund
Bruegel: Blog, 06/10/2020: The European climate law needs a strong just transition fund
EPRS: Briefing, October 2020: Just Transition Fund
EPRS: EU Fact Sheets, October 2020: Just Transition Fund (JTF)
Social Europe, 12/11/2020: 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
WWF: News, 04/12/2020: EU funds: the climate is not a bargaining chip

EurActiv, 28/05/2020: Number crunching on expanded Just Transition Fund continues
Radio Poland, 28/05/2020: EU plans to give Poland biggest slice from Just Transition Fund
EUObserver, 29/05/2020: EU Commission: Five-fold aid increase for fossil-fuel regions
EurActiv, 24/06/2020: 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
LRT News, 29/06/2020: 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
Agriland, 07/07/2020: 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
Reuters, 20/07/2020: EU eyes cuts to green transition fund in late bid to strike recovery deal
Euronews, 29/07/2020: 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
Euronews, 22/10/2020: '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

European Parliament: Legislative Observatory: Procedure File for Proposal on Just Transition Fund
European Parliament: Legislative Train Schedule: Just Transition Fund
European Commission: Opening Remarks by Executive Vice-President Frans Timmermans at the Press Conference on a Green and Just Recovery
Council of the European Union: Press Release, 24/06/2020: 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
Renew Europe Group: News, 06/07/2020: 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
European Parliament: Headlines, 17/09/2020: Just Transition Fund: helping EU regions adapt to green economy
European Commission: Press Release, 11/12/2020: Commission welcomes the political agreement on the Just Transition Fund

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