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

Written by Pernilla Jourde and Agnieszka Widuto (2nd edition, updated on 03.07.2020),

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The EU aims to cut greenhouse gas emissions by 50-55 % by 2030, and achieve climate neutrality by 2050. This will require a socio-economic transformation in regions relying on fossil fuels and carbon‑intensive 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, increasingly the previously proposed JTF budget from €7.5 to €40 billion (in 2018 prices, with €10 billion under the core EU budget and €30 billion from Next Generation EU).

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 is to 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. Total funding mobilised under the mechanism is expected to reach at least €150 billion.

In the European Parliament, the file has been entrusted to the Committee on Regional Development (REGI). The rapporteur’s draft report was published on 23 March and presented on 12 May. The REGI committee is due to vote on the report on 6 July, with a view to fixing Parliament’s position for trilogue negotiations.


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: Vote in committee on draft report

Stage: draft report

Just Transition Mechanism

Just Transition Mechanism

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



  1. Pingback: Just Transition Fund [EU Legislation in Progress] | - February 18, 2020

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