We introduce you to the Just Transition Mechanism and how it works to avoid inequalities in the environmental transition
The transition to a low-carbon economy brings with it economic, environmental and social challenges that are addressed by the EU’s Just Transition Mechanism.
It is a key element in the European climate agenda, and its main objective is to support the regions and sectors most affected by reducing dependence on fossil fuels and developing climate change mitigation policies.
The Just Transition Mechanism was launched in January 2021 as part of the European Green Deal, an ambitious EU plan to achieve climate neutrality by 2050. The budget of this mechanism until 2027 amounts to 17.5 billion euros, which will be used to help regions and communities adapt to the transition to a sustainable economy. The mechanism rests on three pillars:
· The Just Transition Fund.
· The InvestEU Just Transition scheme.
· The Public Sector Loan Facility (PSLF).
How does the Just Transition Mechanism materialise?
To ensure that no one is left behind in the transition to a greener economy, the Just Transition Mechanism aims to support regions that rely heavily on carbon-intensive industries, such as coal mining, fossil fuel energy production and other related activities. This is because these regions often face significant economic and social challenges when demand for highly polluting products and services declines.
The JTM offers financial support for economic diversification, sustainable job creation, training and re-skilling of affected workers, as well as the promotion of investments in clean technologies and renewable energy projects. It also seeks to encourage the active participation of local stakeholders, such as trade unions and local communities, in the design and implementation of transition strategies. In this article we tell you about the measures it is taking to achieve this:
Allocation of funds
The MTJ provides funding and resources to support projects and programmes that promote just transition in affected regions. These funds are used to support economic diversification, sustainable job creation and investment in clean technologies.
The mechanism helps regions to develop just transition strategies and plans that are tailored to their specific needs. This involves identifying emerging economic areas, defining concrete actions and setting clear targets for the transition.
Training and re-qualification
Training and re-qualification programmes are provided for workers affected by transition. This enables them to acquire the skills needed for jobs in sustainable sectors and to take advantage of new job opportunities.
Coordination and cooperation
The MTJ encourages cooperation between regions, local institutions, economic actors and stakeholders to share good practices, exchange knowledge and promote synergies in just transition.
On Kaila you can find the funding calls that are currently open to help these regions not to be left behind in their strategy towards climate neutrality? Don’t miss them!