Members' Research Service By / February 18, 2020

Just Transition Fund [EU Legislation in Progress][Policy Podcast]

The EU aims to cut greenhouse gas emissions by at least 50 % by 2030 and achieve climate neutrality by 2050.

© matthi /

Written by Pernilla Jourde and Agnieszka Widuto (4th edition, updated on 21.04.2021),

© matthi /

The EU aims to cut greenhouse gas emissions by at least 55 % by 2030 and achieve climate neutrality by 2050. This will require a socio-economic transformation in regions relying on fossil fuels and high-emission industries. As part of the European Green Deal, on 14 January 2020, the European Commission adopted a proposal for a regulation to create the Just Transition Fund, aimed at supporting EU regions most affected by the transition to a low carbon economy. In the context of recovery from the coronavirus pandemic, an amended proposal on the Just Transition Fund (JTF) was published on 28 May 2020. The JTF is set to have a budget of €17.5 billion (€7.5 billion from the core EU budget under the Multiannual Financial Framework and €10 billion from the Next Generation EU instrument, in 2018 prices).

Funding will be available to all Member States, while focusing on regions with the biggest transition challenges. The proposed budget for the Just Transition Fund may be complemented with resources from cohesion policy funds and national co‑financing. The Fund will be part of a Just Transition Mechanism, which also includes resources under InvestEU and a public-sector loan facility.

In the European Parliament, the file has been entrusted to the Committee on Regional Development (REGI). A provisional political agreement was reached in trilogue on 9 December 2020. The Parliament is expected to vote on the text of the regulation during its May 2021 plenary session.


Proposal for a regulation of the European Parliament and of the Council establishing
the Just Transition Fund
Committee responsible: Regional Development (REGI) COM(2020) 22
Rapporteurs: Manolis Kefalogiannis (EPP, Greece) 2020/0006(COD)
Shadow rapporteurs: Pedro Marques (S&D, Portugal)
Ondřej Knotek (Renew, Czechia)
Francesca Donato (ID, Italy)
Niklas Nienass (Greens/EFA, Germany)
Raffaele Fitto (ECR, Italy)
Martina Michels (GUE/NGL, Germany)
Ordinary legislative procedure (COD) (Parliament and Council on equal footing – formerly ‘co-decision’)
Next steps expected: Final first-reading vote in plenary


Just Transition Mechanism
Just Transition Mechanism

Listen to policy podcast ‘Just Transition Fund‘ on YouTube.

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